Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 22, 2018 | Jun. 30, 2017 | |
Document Entity Information | |||
Entity Registrant Name | RIVERSOURCE LIFE INSURANCE CO | ||
Entity Central Index Key | 727,892 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 100,000 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-Sale: | ||
Fixed maturities, at fair value (amortized cost: 2017, $20,764; 2016, $21,464) | $ 22,155 | $ 22,682 |
Common stocks, at fair value (cost: 2017, $1; 2016, $4) | 0 | 10 |
Mortgage loans, at amortized cost (less allowance for loan losses: 2017, $16; 2016, $19) | 2,619 | 2,874 |
Policy loans | 845 | 830 |
Other investments | 900 | 998 |
Total investments | 26,519 | 27,394 |
Cash and cash equivalents | 1,062 | 323 |
Reinsurance recoverables | 2,876 | 2,623 |
Other receivables | 207 | 262 |
Accrued investment income | 219 | 237 |
Deferred acquisition costs | 2,639 | 2,611 |
Other assets | 4,358 | 4,305 |
Separate account assets | 82,560 | 76,298 |
Total assets | 120,440 | 114,053 |
Liabilities: | ||
Policyholder account balances, future policy benefits and claims | 29,178 | 29,514 |
Short-term borrowings | 200 | 200 |
Other liabilities | 4,674 | 4,253 |
Separate account liabilities | 82,560 | 76,298 |
Total liabilities | 116,612 | 110,265 |
Shareholder's equity: | ||
Common stock, $30 par value; 100,000 shares authorized, issued and outstanding | 3 | 3 |
Additional paid-in capital | 2,466 | 2,466 |
Retained earnings | 903 | 862 |
Accumulated other comprehensive income, net of tax | 456 | 457 |
Total shareholder's equity | 3,828 | 3,788 |
Total liabilities and shareholder's equity | $ 120,440 | $ 114,053 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, amortized cost | $ 20,764 | $ 21,464 |
Common stocks, cost | 1 | 4 |
Mortgage loans, allowance for loan losses | $ 16 | $ 19 |
Common stock, par value (in dollars per share) | $ 30 | $ 30 |
Common stock, shares authorized (in shares) | 100,000 | 100,000 |
Common stock, shares issued (in shares) | 100,000 | 100,000 |
Common stock, shares outstanding (in shares) | 100,000 | 100,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||
Premiums | $ 410 | $ 417 | $ 406 |
Net investment income | 1,011 | 1,128 | 1,218 |
Policy and contract charges | 1,927 | 1,984 | 1,880 |
Other revenues | 416 | 406 | 422 |
Net realized investment gains (losses) | 40 | 26 | 4 |
Total revenues | 3,804 | 3,961 | 3,930 |
Benefits and expenses | |||
Benefits, claims, losses and settlement expenses | 1,239 | 1,611 | 1,213 |
Interest credited to fixed accounts | 656 | 623 | 668 |
Amortization of deferred acquisition costs | 207 | 334 | 273 |
Other insurance and operating expenses | 701 | 683 | 736 |
Total benefits and expenses | 2,803 | 3,251 | 2,890 |
Pretax income (loss) | 1,001 | 710 | 1,040 |
Income tax provision (benefit) | 260 | 24 | 145 |
Net income | 741 | 686 | 895 |
Supplemental Disclosures: | |||
Total other-than-temporary impairment losses on securities | 0 | 0 | (8) |
Portion of loss recognized in other comprehensive income (before taxes) | 0 | 0 | 1 |
Net impairment losses recognized in net realized investment gains (losses) | $ 0 | $ 0 | $ (7) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 741 | $ 686 | $ 895 |
Other comprehensive income (loss), net of tax: | |||
Net unrealized gains (losses) on securities | (3) | 58 | (338) |
Net unrealized gains (losses) on derivatives | 3 | 4 | 4 |
Other | (1) | 0 | 0 |
Total other comprehensive income (loss), net of tax | (1) | 62 | (334) |
Total comprehensive income | $ 740 | $ 748 | $ 561 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY - USD ($) $ in Millions | Total | Common shares [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Accumulated other comprehensive income [Member] |
Beginning balance at Dec. 31, 2014 | $ 4,277 | $ 3 | $ 2,464 | $ 1,081 | $ 729 |
Comprehensive income: | |||||
Net income | 895 | 895 | |||
Total other comprehensive income (loss), net of tax | (334) | (334) | |||
Total comprehensive income | 561 | ||||
Tax adjustment on share-based incentive compensation plan | 1 | 1 | |||
Cash dividends to Ameriprise Financial, Inc. | (800) | (800) | |||
Ending balance at Dec. 31, 2015 | 4,039 | 3 | 2,465 | 1,176 | 395 |
Comprehensive income: | |||||
Net income | 686 | 686 | |||
Total other comprehensive income (loss), net of tax | 62 | 62 | |||
Total comprehensive income | 748 | ||||
Tax adjustment on share-based incentive compensation plan | 1 | 1 | |||
Cash dividends to Ameriprise Financial, Inc. | (1,000) | (1,000) | |||
Ending balance at Dec. 31, 2016 | 3,788 | 3 | 2,466 | 862 | 457 |
Comprehensive income: | |||||
Net income | 741 | 741 | |||
Total other comprehensive income (loss), net of tax | (1) | (1) | |||
Total comprehensive income | 740 | ||||
Cash dividends to Ameriprise Financial, Inc. | (700) | (700) | |||
Ending balance at Dec. 31, 2017 | $ 3,828 | $ 3 | $ 2,466 | $ 903 | $ 456 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Cash Flows [Abstract] | |||
Net income | $ 741 | $ 686 | $ 895 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation, amortization and accretion, net | 48 | 40 | 18 |
Deferred income tax (benefit) expense | 101 | 5 | (91) |
Contractholder and policyholder charges, non-cash | (359) | (348) | (334) |
Loss from equity method investments | 108 | 53 | 18 |
Net realized investment (gains) losses | (40) | (30) | (13) |
Other-than-temporary impairments and provision for loan losses recognized in net realized investment gains (losses) | 0 | 4 | 9 |
Change in operating assets and liabilities: | |||
Deferred acquisition costs | (35) | 55 | (2) |
Policyholder account balances, future policy benefits and claims, net | (121) | 338 | 703 |
Derivatives, net of collateral | 504 | 93 | 69 |
Reinsurance recoverables | (266) | (212) | (132) |
Other receivables | 42 | (12) | (9) |
Accrued investment income | 18 | 7 | 11 |
Other, net | (33) | 188 | 408 |
Net cash provided by (used in) operating activities | 708 | 867 | 1,550 |
Available-for-Sale securities: | |||
Proceeds from sales | 234 | 297 | 158 |
Maturities, sinking fund payments and calls | 2,491 | 2,318 | 2,589 |
Purchases | (2,034) | (3,174) | (2,279) |
Proceeds from sales, maturities and repayments of mortgage loans | 690 | 783 | 618 |
Funding of mortgage loans | (439) | (433) | (523) |
Proceeds from sales and collections of other investments | 156 | 156 | 115 |
Purchase of other investments | (201) | (164) | (158) |
Purchase of land, buildings, equipment and software | (9) | (9) | (11) |
Change in policy loans, net | (15) | (7) | (18) |
Advance on line of credit to Ameriprise Financial, inc. | (15) | 0 | 0 |
Repayment from Ameriprise Financial, Inc. on line of credit | 15 | 0 | 0 |
Other, net | (4) | 83 | 4 |
Net cash provided by (used in) investing activities | 869 | (150) | 495 |
Policyholder account balances: | |||
Deposits and other additions | 2,059 | 2,086 | 2,061 |
Net transfers from (to) separate accounts | (157) | 127 | (171) |
Surrenders and other benefits | (1,893) | (1,932) | (2,714) |
Change in short-term borrowings, net | 0 | (1) | (1) |
Proceeds from line of credit with Ameriprise Financial, Inc. | 20 | 22 | 6 |
Payments on line of credit with Ameriprise Financial, Inc. | (20) | (22) | (6) |
Cash received for purchased options with deferred premiums | 116 | 276 | 16 |
Cash paid for purchased options with deferred premiums | (263) | (320) | (373) |
Cash dividends to Ameriprise Financial, Inc. | (700) | (1,000) | (800) |
Net cash provided by (used in) financing activities | (838) | (764) | (1,982) |
Net increase (decrease) in cash and cash equivalents | 739 | (47) | 63 |
Cash and cash equivalents at beginning of period | 323 | 370 | 307 |
Cash and cash equivalents at end of period | 1,062 | 323 | 370 |
Supplemental Disclosures: | |||
Income taxes paid (received), net | 250 | (120) | (57) |
Interest paid on borrowings | 2 | 1 | 1 |
Non-cash investing activity: | |||
Partnership commitments not yet remitted | $ 9 | $ 108 | $ 45 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | Nature of Business and Basis of Presentation RiverSource Life Insurance Company is a stock life insurance company with one wholly owned stock life insurance company subsidiary, RiverSource Life Insurance Co. of New York (“RiverSource Life of NY”). RiverSource Life Insurance Company is a wholly owned subsidiary of Ameriprise Financial, Inc. (“Ameriprise Financial”). • RiverSource Life Insurance Company is domiciled in Minnesota and holds Certificates of Authority in American Samoa, the District of Columbia and all states except New York. RiverSource Life Insurance Company issues insurance and annuity products. • RiverSource Life of NY is domiciled and holds a Certificate of Authority in New York. RiverSource Life of NY issues insurance and annuity products. RiverSource Life Insurance Company also wholly owns RiverSource Tax Advantaged Investments, Inc. (“RTA”). RTA is a stock company domiciled in Delaware and is a limited partner in affordable housing partnership investments. The accompanying Consolidated Financial Statements include the accounts of RiverSource Life Insurance Company and companies in which it directly or indirectly has a controlling financial interest (collectively, the “Company”). All intercompany transactions and balances have been eliminated in consolidation. In 2017, the Company recorded the following out-of-period corrections: • a $12 million out-of-period correction related to a variable annuity model assumption that decreased amortization of deferred acquisition costs (“DAC”) by $8 million and decreased benefits, claims, losses and settlement expenses by $4 million . • a $20 million decrease to income tax provision for a reversal of a tax reserve. In 2016, the Company recorded a $29 million increase to long term care (“LTC”) reserves for an out-of-period correction related to its claim utilization factor. The impact of these out-of-period corrections was not material to current or prior period financial statements. The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) which vary in certain respects from reporting practices prescribed or permitted by state insurance regulatory authorities as described in Note 15. The Company evaluated events or transactions that may have occurred after the balance sheet date for potential recognition or disclosure through the date the financial statements were issued. The Company’s principal products are variable deferred 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 the UL products, in addition to other benefit riders. Variable annuity contract purchasers can choose to add optional benefit riders to their contracts, such as guaranteed minimum death benefit (“GMDB”), guaranteed minimum withdrawal benefit (“GMWB”) and guaranteed minimum accumulation benefit (“GMAB”) riders. The Company also offers immediate annuities, fixed deferred annuities, and traditional life and disability income (“DI”) insurance. The Company issues only non-participating life insurance policies which do not pay dividends to policyholders and contractholders. Nearly all of the Company’s business is sold through the retail distribution channel of Ameriprise Financial Services, Inc. (“AFSI”), 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Principles of Consolidation A variable interest entity (“VIE”) is an entity that either has equity investors that lack certain essential characteristics of a controlling financial interest (including substantive voting rights, the obligation to absorb the entity’s losses, or the rights to receive the entity’s returns) or has equity investors that do not provide sufficient financial resources for the entity to support its activities. Voting interest entities (“VOEs”) are those entities that do not qualify as a VIE. The Company consolidates VOEs in which it holds a greater than 50% voting interest. The Company generally accounts for entities using the equity method when it holds a greater than 20% but less than 50% voting interest or when the Company exercises significant influence over the entity. All other investments that are not reported at fair value as trading or Available-for-Sale securities are accounted for under the cost method when the Company owns less than a 20% voting interest and does not exercise significant influence. A VIE is consolidated by the reporting entity that determines it has both: • the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and • the obligation to absorb potentially significant losses or the right to receive potentially significant benefits to the VIE. All VIEs are assessed for consolidation under this framework. When evaluating entities for consolidation, the Company considers its contractual rights in determining whether it has the power to direct the activities of the VIE that most significantly impact the VIEs economic performance. In determining whether the Company has this power, it considers whether it is acting in a role that enables it to direct the activities that most significantly impact the economic performance of an entity or if it is acting in an agent role. In determining whether the Company has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Company considers an analysis of its rights to receive benefits such as investment returns and its obligation to absorb losses associated with any investment in the VIE in conjunction with other qualitative factors. Management and incentive fees that are at market and commensurate with the level of services provided, and where the Company does not hold other interests in the VIE that would absorb more than an insignificant amount of the VIE’s expected losses or receive more than an insignificant amount of the VIE’s expected residual returns, are not considered a variable interest and are excluded from the analysis. The consolidation guidance has a scope exception for reporting entities with interests in registered money market funds which do not have an explicit support agreement. Amounts Based on Estimates and Assumptions Accounting estimates are an integral part of the Consolidated Financial Statements. In part, they are based upon assumptions concerning future events. Among the more significant are those that relate to investment securities valuation and recognition of other-than-temporary impairments, DAC and the corresponding recognition of DAC amortization, valuation of derivative instruments and hedging activities, claims reserves and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ. Investments Available-for-Sale Securities Available-for-Sale securities are carried at fair value with unrealized gains (losses) recorded in accumulated other comprehensive income (“AOCI”), net of impacts to DAC, deferred sales inducement costs (“DSIC”), unearned revenue, benefit reserves, reinsurance recoverables and income taxes. Gains and losses are recognized on a trade date basis in the Consolidated Statements of Income upon disposition of the securities. When the fair value of an investment is less than its amortized cost, the Company assesses whether or not: (i) it has the intent to sell the security (made a decision to sell) or (ii) it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If either of these conditions exist, an other-than-temporary impairment is considered to have occurred and the Company recognizes an other-than-temporary impairment for the difference between the investment’s amortized cost and its fair value through earnings. For securities that do not meet the above criteria and the Company does not expect to recover a security’s amortized cost, the security is also considered other-than-temporarily impaired. For these securities, the Company separates the total impairment into the credit loss component and the amount of the loss related to other factors. The amount of the total other-than-temporary impairment related to credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to other factors is recognized in other comprehensive income (“OCI”), net of impacts to DAC, DSIC, unearned revenue, benefit reserves, reinsurance recoverables and income taxes. For Available-for-Sale securities that have recognized an other-than-temporary impairment through earnings, the difference between the amortized cost and the cash flows expected to be collected is accreted as interest income if through subsequent evaluation there is a sustained increase in the cash flow expected. Subsequent increases and decreases in the fair value of Available-for-Sale securities are included in OCI. The Company provides a supplemental disclosure on the face of its Consolidated Statements of Income that presents: (i) total other-than-temporary impairment losses recognized during the period and (ii) the portion of other-than-temporary impairment losses recognized in OCI. The sum of these amounts represents the credit-related portion of other-than-temporary impairments that were recognized in earnings during the period. The portion of other-than-temporary losses recognized in OCI includes: (i) the portion of other-than-temporary impairment losses related to factors other than credit recognized during the period and (ii) reclassifications of other-than-temporary impairment losses previously determined to be related to factors other than credit that are determined to be credit-related in the current period. The amount presented on the Consolidated Statements of Income as the portion of other-than-temporary losses recognized in OCI excludes subsequent increases and decreases in the fair value of these securities. For all securities that are considered temporarily impaired, the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. The Company believes that it will collect all principal and interest due on all investments that have amortized cost in excess of fair value that are considered only temporarily impaired. Factors the Company considers in determining whether declines in the fair value of fixed maturity securities are other-than-temporary include: (i) the extent to which the market value is below amortized cost; (ii) the duration of time in which there has been a significant decline in value; (iii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iv) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors. In order to determine the amount of the credit loss component for corporate debt securities considered other-than-temporarily impaired, a best estimate of the present value of cash flows expected to be collected discounted at the security’s effective interest rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and the Company’s position in the debtor’s overall capital structure. For structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities and asset backed securities), the Company also considers factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections in assessing potential other-than-temporary impairments of these investments. Based upon these factors, securities that have indicators of potential other-than-temporary impairment are subject to detailed review by management. Securities for which declines are considered temporary continue to be monitored by management until management determines there is no current risk of an other-than-temporary impairment. Other Investments Other investments primarily reflect the Company’s interests in affordable housing partnerships and syndicated loans which represent investments in below investment grade loan syndications. Affordable housing partnerships are accounted for under the equity method. Financing Receivables Mortgage Loans and Syndicated Loans Mortgage loans, net reflect the Company’s interest in commercial mortgage loans less the related allowance for loan losses and, as of December 31, 2016, residential mortgage loans. Mortgage loans and syndicated loans are stated at amortized cost, net of allowances for loan losses. Interest income is accrued on the unpaid principal balances of the loans as earned. Policy Loans Policy loans include life insurance policy and annuity loans and are reported at the unpaid principal balance, plus accrued interest. When originated, policy loan balances do not exceed the cash surrender value of the underlying products. As there is minimal risk of loss related to these loans, the Company does not record an allowance for loan losses for policy loans. Nonaccrual Loans Generally, loans are evaluated for or placed on nonaccrual status when either the collection of interest or principal has become 90 days past due or is otherwise considered doubtful of collection. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Interest payments received on loans on nonaccrual status are generally applied to principal unless the remaining principal balance has been determined to be fully collectible. Commercial mortgage loans are evaluated for impairment when the loan is considered for nonaccrual status, restructured or foreclosure proceedings are initiated on the property. If it is determined that the fair value is less than the current loan balance, it is written down to fair value less estimated selling costs. Residential mortgage loans are impaired when management determines the assets are uncollectible and commences foreclosure proceedings on the property, at which time the property is written down to fair value less selling costs. Foreclosed property is recorded as real estate owned in other investments. Syndicated loans are placed on nonaccrual status when management determines it will not collect all contractual principal and interest on the loan. Allowance for Loan Losses Management determines the adequacy of the allowance for loan losses based on the overall loan portfolio composition, recent and historical loss experience, and other pertinent factors, including when applicable, internal risk ratings, loan-to-value (“LTV”) ratios, FICO scores of the borrower, debt service coverage and occupancy rates, along with economic and market conditions. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change. The Company determines the amount of the allowance based on management’s assessment of relative risk characteristics of the loan portfolio. The allowance is recorded for homogeneous loan categories on a pool basis, based on an analysis of product mix and risk characteristics of the portfolio, including geographic concentration, bankruptcy experiences, and historical losses, adjusted for current trends and market conditions. While the Company attributes portions of the allowance to specific loan pools as part of the allowance estimation process, the entire allowance is available to absorb losses inherent in the total loan portfolio. The allowance is increased through provisions charged to net realized investment gains (losses) and reduced/increased by net charge-offs/recoveries. Impaired Loans The Company considers a loan to be impaired when, based on current information and events, it is probable the Company will not be able to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. Impaired loans may also include loans that have been modified in troubled debt restructurings as a concession to borrowers experiencing financial difficulties. Management evaluates for impairment all restructured loans and loans with higher impairment risk factors. Factors used by the Company to determine whether all amounts due on commercial mortgage loans will be collected, include but are not limited to, the financial condition of the borrower, performance of the underlying properties, collateral and/or guarantees on the loan, and the borrower’s estimated future ability to pay based on property type and geographic location. The impairment recognized is measured as the excess of the loan’s recorded investment over: (i) the present value of its expected principal and interest payments discounted at the loan’s effective interest rate, (ii) the fair value of collateral or (iii) the loan’s observable market price. Restructured Loans A loan is classified as a restructured loan when the Company makes certain concessionary modifications to contractual terms for borrowers experiencing financial difficulties. When the interest rate, minimum payments, and/or due dates have been modified in an attempt to make the loan more affordable to a borrower experiencing financial difficulties, the modification is considered a troubled debt restructuring. Generally, performance prior to the restructuring or significant events that coincide with the restructuring are considered in assessing whether the borrower can meet the new terms which may result in the loan being returned to accrual status at the time of the restructuring or after a performance period. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status. Cash and Cash Equivalents Cash equivalents include highly liquid investments with original 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. 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. Reinsurance premiums paid and benefits received are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Reinsurance premiums for traditional life, LTC and DI, net of the change in any prepaid reinsurance asset, are reported as a reduction of premiums. 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 or contra asset and amortized over the estimated life of the policies in proportion to the estimated gross profits (“EGPs”) and is subject to retrospective adjustment in a manner similar to retrospective adjustment of DAC. The assumptions used to project the expected cash flows are consistent with those used for DAC valuation for the same contracts. Changes in the net cost of reinsurance are reflected as a component of policy and contract charges. Reinsurance recoveries are reported as components of benefits, claims, losses and settlement expenses. Insurance liabilities are reported before the effects of reinsurance. Policyholder account balances, future policy benefits and claims recoverable under reinsurance contracts are recorded as reinsurance recoverables. The Company also assumes life insurance and fixed annuity risk from other insurers in limited circumstances. Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Liabilities for assumed business are recorded within policyholder account balances, future policy benefits and claims. See Note 8 for additional information on reinsurance. Land , Buildings, Equipment and Software Land, buildings, equipment and internally developed or purchased software are carried at cost less accumulated depreciation or amortization and are reflected within other assets. The Company uses the straight-line method of depreciation and amortization over periods ranging from three to 30 years. As of December 31, 2017 and 2016 , land, buildings, equipment and software were $ 142 million and $ 148 million , respectively, net of accumulated depreciation of $ 159 million and $ 144 million , respectively. Depreciation and amortization expense for the years ended December 31, 2017 , 2016 and 2015 was $ 15 million , $ 14 million and $ 15 million , respectively. Derivative Instruments and Hedging Activities Freestanding derivative instruments are recorded at fair value and are reflected in other assets or other liabilities. The Company’s policy is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. The Company primarily uses derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. The Company occasionally designates derivatives as (i) hedges of changes in the fair value of assets, liabilities, or firm commitments (“fair value hedges”) or (ii) hedges of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedges”). Derivative instruments that are entered into for hedging purposes are designated as such at the time the Company enters into the contract. For all derivative instruments that are designated for hedging activities, the Company 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 Consolidated Statements of Income based on the nature and use of the instrument. Changes in fair value of derivatives used as economic hedges are presented in the Consolidated Statements of Income with the corresponding change in the hedged asset or liability. For derivative instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as changes in the fair value of the hedged assets, liabilities or firm commitments, are recognized on a net basis in current period earnings. The carrying value of the hedged item is adjusted for the change in fair value from the designated hedged risk. If a fair value hedge designation is removed or the hedge is terminated prior to maturity, previous adjustments to the carrying value of the hedged item are recognized into earnings over the remaining life of the hedged item. The equity component of indexed annuities and IUL obligations are considered embedded derivatives. Additionally, certain annuities contain GMAB and GMWB provisions. The GMAB and the non-life contingent benefits associated with GMWB provisions are also considered embedded derivatives. See Note 13 for information regarding the Company’s fair value measurement of derivative instruments and Note 17 for the impact of derivatives on the Consolidated Statements of Income. Deferred Acquisition Costs The Company incurs costs in connection with acquiring new and renewal insurance and annuity businesses. The portion of these costs which are incremental and direct to the acquisition of a new or renewal insurance policy or annuity contract are deferred. Significant costs capitalized 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 AFSI 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 contract terminations. These transactions are anticipated in establishing amortization periods and other valuation assumptions. The Company monitors other DAC amortization assumptions, such as persistency, mortality, morbidity, interest margin, variable annuity benefit utilization and maintenance expense levels each quarter and, when assessed independently, each could impact the Company’s DAC balances. The analysis of DAC balances and the corresponding amortization is a dynamic process that considers all relevant factors and assumptions described previously. Unless the Company’s management identifies a significant deviation over the course of the quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year. Non-Traditional Long-Duration Products For non-traditional long-duration products (including variable and fixed deferred annuity contracts, UL and VUL insurance products), DAC are amortized based on projections of EGPs over amortization periods equal to the approximate life of the business. EGPs vary based on persistency rates (assumptions at which contractholders and policyholders are expected to surrender, make withdrawals from and make deposits to their contracts), mortality levels, client asset value growth rates (based on equity and bond market performance), variable annuity benefit utilization and interest margins (the spread between earned rates on invested assets and rates credited to contractholder and policyholder accounts) and are management’s best estimates. Management regularly monitors financial market conditions and actual contractholder and policyholder behavior experience and compares them to its assumptions. These assumptions are updated whenever it appears that earlier estimates should be revised. When assumptions are changed, the percentage of EGPs used to amortize DAC might also change. A change in the required amortization percentage is applied retrospectively; an increase in amortization percentage will result in a decrease in the DAC balance and an increase in DAC amortization expense, while a decrease in amortization percentage will result in an increase in the DAC balance and a decrease in DAC amortization expense. The impact on results of operations of changing assumptions can be either positive or negative in any particular period and is reflected in the period in which such changes are made. At each balance sheet date, the DAC balance is adjusted for the effect that would result from the realization of unrealized gains or losses impacting EGPs, with the related change recognized through AOCI. The client asset value growth rates are the rates at which variable annuity and VUL insurance contract values invested in separate accounts are assumed to appreciate in the future. The rates used vary by equity and fixed income investments. Management reviews and, where appropriate, adjusts its assumptions with respect to client asset value growth rates on a regular basis. The Company typically uses a five-year mean reversion process as a guideline in setting near-term equity fund growth rates based on a long-term view of financial market performance as well as recent actual performance. The suggested near-term equity fund growth rate is reviewed quarterly to ensure consistency with management’s assessment of anticipated equity market performance. DAC amortization expense recorded in a period when client asset value growth rates exceed management’s near-term estimate will typically be less than in a period when growth rates fall short of management’s near-term estimate. Traditional Long-Duration Products For traditional long-duration products (including traditional life and DI insurance products), DAC are generally amortized as a percentage of premiums over amortization periods equal to the premium paying period. The assumptions made in calculating the DAC balance and DAC amortization expense are consistent with those used in determining the liabilities. For traditional life and DI insurance products, the assumptions provide for adverse deviations in experience and are revised only if management concludes experience will be so adverse that DAC are not recoverable. If management concludes that DAC are not recoverable, DAC are reduced to the amount that is recoverable based on best estimate assumptions and there is a corresponding expense recorded in the Consolidated Statements of Income. Deferred Sales Inducement Costs Sales inducement costs consist of bonus interest credits and premium credits added to certain annuity contract and insurance policy values. These benefits are capitalized to the extent they are incremental to amounts that would be credited on similar contracts without the applicable feature. The amounts capitalized are amortized using the same methodology and assumptions used to amortize DAC. DSIC is 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 and liabilities are primarily funds held for the benefit of 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 Consolidated Statements of Income. Separate account assets are recorded at fair value. Changes in the fair value of separate account assets are offset by changes in the related separate account liabilities. Policyholder Account Balances, Future Policy Benefits and Claims The Company establishes reserves to cover the risks associated with non-traditional and traditional long-duration products. Reserves for non-traditional long-duration products include the liabilities related to guaranteed benefit provisions added to variable annuity contracts, variable and fixed annuity contracts and UL and VUL policies and the embedded derivatives related to variable annuity contracts, indexed annuities and IUL insurance. Reserves for traditional long-duration products are established to provide adequately for future benefits and expenses for term life, whole life, DI and LTC insurance products. Changes in future policy benefits and claims are reflected in earnings in the period adjustments are made. Where applicable, benefit amounts expected to be recoverable from reinsurance companies who share in the risk are separately recorded as reinsurance recoverable within receivables. 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, liabilities for guaranteed benefits associated with variable annuities and embedded derivatives for variable annuities, indexed annuities and 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. 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 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 indexed annuity products and indexed accounts of IUL products are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options. The GMDB and gain gross-up (“GGU”) liability is determined by estimating the expected value of death benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees). If elected by the contract owner and after a stipulated waiting period from contract issuance, a guaranteed minimum income benefit (“GMIB”) guarantees a minimum lifetime annuity based on a specified rate of contract accumulation value growth and predetermined annuity purchase rates. The GMIB liability is determined each period by estimating the expected value of annuitization benefits in excess of the projected contract accumulation value at the date of annuitization and recognizing the excess over the estimated life based on expected assessments. The liability for the life contingent benefits associated with GMWB provisions is determined by estimating the expected value of benefits that are contingent upon survival after the account value is equal to zero and recognizing the benefits over the estimated life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees). In determining the liabilities for GMDB, GGU, GMIB and the life contingent benefits associated with GMWB, the Company projects these benefits and contract assessments using actuarial models to simulate various equity market scenarios. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency, benefit utilization and investment margins and are consistent with those used for DAC valuation for the same contracts. As with DAC, management reviews and, where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year. See Note 10 for information regarding variable annuity gua |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements [Text Block] | Recent Accounting Pronouncements Adoption of New Accounting Standards Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments In August 2016, the Financial Accounting Standards Board (“FASB”) updated the accounting standards related to classification of certain cash receipts and cash payments on the statement of cash flows. The update includes amendments to address diversity in practice for the classification of eight specific cash flow activities. The specific amendments the Company evaluated include the classification of debt prepayment and extinguishment costs, contingent consideration payments, proceeds from insurance settlements and corporate owned life insurance settlements, distributions from equity method investees and the application of the predominance principle to separately identifiable cash flows. The standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted and all amendments must be adopted during the same period. The Company early adopted the standard for the interim period ended March 31, 2017 on a retrospective basis. The adoption of the standard did not have a material impact on the Company’s operating, investing or financing cash flows. Future Adoption of New Accounting Standards Income Statement – Reporting Comprehensive Income In February 2018, the FASB updated the accounting standards related to the presentation of tax effects stranded in OCI. The update allows a reclassification from AOCI to retained earnings for tax effects stranded in AOCI resulting from the Tax Act. The update is optional and entities may elect not to reclassify the stranded tax effects. The update is effective for fiscal years beginning after December 15, 2018. Entities may elect to record the impacts either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. Early adoption is permitted in any period. The Company is currently evaluating the impact of the update on its consolidated financial condition. Derivatives and Hedging – Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB updated the accounting standards to amend the hedge accounting recognition and presentation requirements. The objectives of the update are to better align the financial reporting of hedging relationships to the economic results of an entity’s risk management activities and simplify the application of the hedge accounting guidance. The update also adds new disclosures and amends existing disclosure requirements. The standard is effective for interim and annual periods beginning after December 15, 2018, and should be applied on a modified retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations. Receivables – Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB updated the accounting standards to shorten the amortization period for certain purchased callable debt securities held at a premium. Under current guidance, premiums are generally amortized over the contractual life of the security. The amendments require the premium to be amortized to the earliest call date. The update applies to securities with explicit, non-contingent call features that are callable at fixed prices and on preset dates. The standard is effective for interim and annual periods beginning after December 15, 2018, and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption is permitted. The update is not expected to have a material impact on the Company’s consolidated financial condition or results of operations. Income Taxes – Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB updated the accounting standards related to the recognition of income tax impacts on intra-entity transfers. The update requires entities to recognize the income tax consequences of intra-entity transfers, other than inventory, upon the transfer of the asset. The update requires the selling entity to recognize a current tax expense or benefit and the purchasing entity to recognize a deferred tax asset or liability when the transfer occurs. The standard is effective for interim and annual periods beginning after December 15, 2017. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations. Financial Instruments – Measurement of Credit Losses In June 2016, the FASB updated the accounting standards related to accounting for credit losses on certain types of financial instruments. The update replaces the current incurred loss model for estimating credit losses with a new model that requires an entity to estimate the credit losses expected over the life of the asset. Generally, the initial estimate of the expected credit losses and subsequent changes in the estimate will be reported in current period earnings and recorded through an allowance for credit losses on the balance sheet. The current credit loss model for Available-for-Sale debt securities does not change; however, the credit loss calculation and subsequent recoveries are required to be recorded through an allowance. The standard is effective for interim and annual periods beginning after December 15, 2019. Early adoption will be permitted for interim and annual periods beginning after December 15, 2018. A modified retrospective cumulative adjustment to retained earnings should be recorded as of the first reporting period in which the guidance is effective for loans, receivables, and other financial instruments subject to the new expected credit loss model. Prospective adoption is required for establishing an allowance related to Available-for-Sale debt securities, certain beneficial interests, and financial assets purchased with a more-than-insignificant amount of credit deterioration since origination. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations. Leases – Recognition of Lease Assets and Liabilities on Balance Sheet In February 2016, the FASB updated the accounting standards for leases. The update was issued to increase transparency and comparability for the accounting of lease transactions. The standard will require most lease transactions for lessees to be recorded on the balance sheet as lease assets and lease liabilities and both quantitative and qualitative disclosures about leasing arrangements. The standard is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. The update should be applied at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations. Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB updated the accounting standards on the recognition and measurement of financial instruments. The update requires entities to carry marketable equity securities, excluding investments in securities that qualify for the equity method of accounting, at fair value with changes in fair value reflected in net income each reporting period. The update affects other aspects of accounting for equity instruments, as well as the accounting for financial liabilities utilizing the fair value option. The update eliminates the requirement to disclose the methods and assumptions used to estimate the fair value of financial assets or liabilities held at cost on the balance sheet and requires entities to use the exit price notion when measuring the fair value of financial instruments. The standard is effective for interim and annual periods beginning after December 15, 2017. The Company adopted the standard on January 1, 2018 using a modified retrospective approach. The adoption of the standard did not have a material impact on the consolidated financial condition or results of operations. Revenue from Contracts with Customers In May 2014, the FASB updated the accounting standards for revenue from contracts with customers. The update provides a five step revenue recognition model for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers (unless the contracts are in the scope of other standards). The standard also updates the accounting for certain costs associated with obtaining and fulfilling a customer contract and requires disclosure of quantitative and qualitative information that enables users of financial statements to understand the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. The standard is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted for interim and annual periods beginning after December 15, 2016. The standard may be applied retrospectively for all periods presented or retrospectively with a cumulative-effect adjustment at the date of adoption. The Company adopted the revenue recognition guidance on a retrospective basis on January 1, 2018. The update does not apply to revenue associated with the manufacturing of insurance and annuity products or financial instruments as these revenues are in the scope of other standards. Therefore, the update did not have an impact on these revenues. The Company’s implementation efforts included the identification of revenue within the guidance and the review of the customer contracts to determine the Company’s performance obligation and the associated timing of each performance obligation. The adoption of the standard did not have a material impact on the Company’s consolidated financial condition and results of operations. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2017 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |
Variable Interest Entities [Text Block] | Variable Interest Entities The Company is a limited partner in affordable housing partnerships that qualify for government-sponsored low income housing tax credit programs and partnerships that invest in multi-family residential properties that were originally developed with an affordable housing component. The Company has determined it is not the primary beneficiary and therefore does not consolidate these partnerships. A majority of the limited partnerships are VIEs. The Company’s maximum exposure to loss as a result of its investment in the VIEs is limited to the carrying value. The carrying value is reflected in other investments and was $408 million and $482 million as of December 31, 2017 and 2016 , respectively. The Company had a $97 million and $135 million liability recorded as of December 31, 2017 and 2016 , respectively, related to original purchase commitments not yet remitted to the VIEs. The Company has not provided any additional support and is not contractually obligated to provide additional support to the VIEs beyond the above mentioned funding commitments. The Company invests in structured investments which are considered 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, commercial mortgage backed securities 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 carrying value. The carrying value is included in Available-for-Sale fixed maturities on the Consolidated Balance Sheets. 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 5 for additional information on these structured investments. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments [Text Block] | Investments Available-for-Sale securities distributed by type were as follows: Description of Securities December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Noncredit (in millions) Fixed maturities: Corporate debt securities $ 12,133 $ 1,125 $ (25 ) $ 13,233 $ — Residential mortgage backed securities 2,979 54 (22 ) 3,011 — Commercial mortgage backed securities 3,554 47 (32 ) 3,569 — State and municipal obligations 1,114 209 (9 ) 1,314 — Asset backed securities 700 30 (2 ) 728 — Foreign government bonds and obligations 283 20 (4 ) 299 — U.S. government and agency obligations 1 — — 1 — Total fixed maturities 20,764 1,485 (94 ) 22,155 — Common stocks 1 — (1 ) — — Total $ 20,765 $ 1,485 $ (95 ) $ 22,155 $ — Description of Securities December 31, 2016 Amortized Cost Gross Gross Fair Noncredit (1) (in millions) Fixed maturities: Corporate debt securities $ 13,105 $ 1,060 $ (53 ) $ 14,112 $ — Residential mortgage backed securities 3,386 72 (43 ) 3,415 (4 ) Commercial mortgage backed securities 2,837 58 (38 ) 2,857 — State and municipal obligations 1,092 161 (24 ) 1,229 — Asset backed securities 790 26 (11 ) 805 — Foreign government bonds and obligations 251 17 (7 ) 261 — U.S. government and agency obligations 3 — — 3 — Total fixed maturities 21,464 1,394 (176 ) 22,682 (4 ) Common stocks 4 6 — 10 3 Total $ 21,468 $ 1,400 $ (176 ) $ 22,692 $ (1 ) (1) Represents the amount of other-than-temporary impairment (“OTTI”) losses in AOCI. Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period. As of December 31, 2017 and 2016 , investment securities with a fair value of 1.6 billion and $1.5 billion , respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $711 million and $428 million , respectively, may be sold, pledged or rehypothecated by the counterparty. As of December 31, 2017 and 2016 , fixed maturity securities comprised approximately 84% and 83% , 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, 2017 and 2016 , approximately $906 million and $944 million , respectively, of securities were internally rated by Columbia Management Investment Advisers, LLC (“CMIA”), an affiliate of the Company, using criteria similar to those used by NRSROs. A summary of fixed maturity securities by rating was as follows: Ratings December 31, 2017 December 31, 2016 Amortized Cost Fair Percent of Amortized Fair Percent of (in millions, except percentages) AAA $ 6,259 $ 6,303 28 % $ 5,671 $ 5,728 25 % AA 1,090 1,285 6 1,013 1,177 5 A 3,443 3,902 18 3,767 4,167 19 BBB 8,796 9,465 43 9,584 10,190 45 Below investment grade 1,176 1,200 5 1,429 1,420 6 Total fixed maturities $ 20,764 $ 22,155 100 % $ 21,464 $ 22,682 100 % As of December 31, 2017 and 2016 , approximately 35% and 40% , respectively, of the securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any other issuer were greater than 10% of total equity. The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position: Description of Securities December 31, 2017 Less than 12 months 12 months or more Total Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized (in millions, except number of securities) Corporate debt securities 82 $ 834 $ (5 ) 39 $ 360 $ (20 ) 121 $ 1,194 $ (25 ) Residential mortgage backed securities 36 546 (4 ) 41 657 (18 ) 77 1,203 (22 ) Commercial mortgage backed securities 56 994 (10 ) 42 663 (22 ) 98 1,657 (32 ) State and municipal obligations 19 35 — 8 138 (9 ) 27 173 (9 ) Asset backed securities 15 116 — 12 76 (2 ) 27 192 (2 ) Foreign government bonds and obligations 3 6 — 15 23 (4 ) 18 29 (4 ) Common stocks — — — 3 1 (1 ) 3 1 (1 ) Total 211 $ 2,531 $ (19 ) 160 $ 1,918 $ (76 ) 371 $ 4,449 $ (95 ) Description of Securities December 31, 2016 Less than 12 months 12 months or more Total Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized (in millions, except number of securities) Corporate debt securities 114 $ 1,502 $ (26 ) 33 $ 319 $ (27 ) 147 $ 1,821 $ (53 ) Residential mortgage backed securities 56 1,282 (25 ) 56 324 (18 ) 112 1,606 (43 ) Commercial mortgage backed securities 80 1,378 (37 ) 1 11 (1 ) 81 1,389 (38 ) State and municipal obligations 18 66 (3 ) 2 105 (21 ) 20 171 (24 ) Asset backed securities 23 231 (6 ) 12 114 (5 ) 35 345 (11 ) Foreign government bonds and obligations 7 30 (1 ) 15 23 (6 ) 22 53 (7 ) Total 298 $ 4,489 $ (98 ) 119 $ 896 $ (78 ) 417 $ 5,385 $ (176 ) As part of the Company’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities is primarily attributable to tighter credit spreads. The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Income for other-than-temporary impairments related to credit losses on Available-for-Sale securities for which a portion of the securities’ total other-than-temporary impairments was recognized in OCI: December 31, 2017 2016 2015 (in millions) Beginning balance $ 21 $ 33 $ 33 Reductions for securities sold during the period (realized) (21 ) (12 ) — Ending balance $ — $ 21 $ 33 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, 2017 2016 2015 (in millions) Gross realized investment gains $ 48 $ 29 $ 30 Gross realized investment losses (4 ) (12 ) (17 ) Other-than-temporary impairments — — (7 ) Total $ 44 $ 17 $ 6 Other-than-temporary impairments for the year ended December 31, 2015 primarily related to credit losses on corporate debt securities and non-agency residential mortgage backed securities. 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, 2017 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 1,288 $ 1,305 Due after one year through five years 5,481 5,685 Due after five years through 10 years 3,039 3,154 Due after 10 years 3,723 4,703 13,531 14,847 Residential mortgage backed securities 2,979 3,011 Commercial mortgage backed securities 3,554 3,569 Asset backed securities 700 728 Common stocks 1 — Total $ 20,765 $ 22,155 Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities, commercial mortgage backed securities and asset backed securities are not due at a single maturity date. As such, these securities, as well as common stocks, were not included in the maturities distribution. The following is a summary of net investment income: Years Ended December 31, 2017 2016 2015 (in millions) Fixed maturities $ 947 $ 997 $ 1,034 Mortgage loans 137 149 177 Other investments (48 ) 8 33 1,036 1,154 1,244 Less: investment expenses 25 26 26 Total $ 1,011 $ 1,128 $ 1,218 Net realized investment gains (losses) are summarized as follows: Years Ended December 31, 2017 2016 2015 (in millions) Fixed maturities $ 44 $ 17 $ 6 Mortgage loans (4 ) 10 — Other investments — (1 ) (2 ) Total $ 40 $ 26 $ 4 |
Financing Receivables
Financing Receivables | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Financing Receivables | Financing Receivables The Company’s financing receivables include commercial and residential mortgage loans, syndicated loans and policy loans. Syndicated loans are reflected in other investments. Allowance for Loan Losses Policy loans do not exceed the cash surrender value of the policy at origination. As there is minimal risk of loss related to policy loans, the Company does not record an allowance for loan losses for policy loans. The following table presents a rollforward of the allowance for loan losses for the years ended and the ending balance of the allowance for loan losses by impairment method: December 31, 2017 2016 2015 (in millions) Beginning balance $ 25 $ 25 $ 28 Charge-offs (3 ) (3 ) (4 ) Provisions — 3 1 Ending balance $ 22 $ 25 $ 25 Individually evaluated for impairment $ — $ 2 $ 4 Collectively evaluated for impairment 22 23 21 The recorded investment in financing receivables by impairment method was as follows: December 31, 2017 2016 (in millions) Individually evaluated for impairment $ 17 $ 10 Collectively evaluated for impairment 3,015 3,275 Total $ 3,032 $ 3,285 As of December 31, 2017 and 2016 , the Company’s recorded investment in financing receivables individually evaluated for impairment for which there was no related allowance for loan losses was $17 million and $5 million , respectively. During the years ended December 31, 2017 , 2016 and 2015 , the Company purchased $156 million , $73 million and $106 million , respectively, and sold $259 million , $250 million and $15 million , respectively. The loans purchased consisted of syndicated loans. The loans sold during 2017 and 2016 primarily consisted of residential mortgage loans. See below for additional discussion on the sales of these loans. The loans sold during 2015 primarily consisted of syndicated loans. Credit Quality Information Nonperforming loans, which are generally loans 90 days or more past due, were $5 million and $2 million as of December 31, 2017 and 2016 , respectively. All other loans were considered to be performing. Commercial Mortgage Loans The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates as necessary. Commercial mortgage loans which management has assigned its highest risk rating were nil of total commercial mortgage loans as of both December 31, 2017 and 2016 . Loans with the highest risk rating represent distressed loans which the Company has identified as impaired or expects to become delinquent or enter into foreclosure within the next six months. In addition, the Company reviews the concentrations of credit risk by region and property type. Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows: Loans Percentage December 31, 2017 December 31, December 31, 2017 December 31, (in millions) South Atlantic $ 735 $ 753 28 % 29 % Pacific 771 722 29 28 Mountain 242 234 9 9 West North Central 223 212 8 8 East North Central 209 195 8 8 Middle Atlantic 179 191 7 7 West South Central 125 122 5 5 New England 67 84 3 3 East South Central 84 80 3 3 2,635 2,593 100 % 100 % Less: allowance for loan losses 16 19 Total $ 2,619 $ 2,574 Concentrations of credit risk of commercial mortgage loans by property type were as follows: Loans Percentage December 31, 2017 December 31, December 31, 2017 December 31, (in millions) Retail $ 893 $ 916 34 % 35 % Office 470 473 18 18 Apartments 536 483 20 19 Industrial 451 430 17 17 Mixed use 38 42 1 2 Hotel 39 41 2 1 Other 208 208 8 8 2,635 2,593 100 % 100 % Less: allowance for loan losses 16 19 Total $ 2,619 $ 2,574 Residential Mortgage Loans The recorded investment in residential mortgage loans as of December 31, 2017 and 2016 was nil and $300 million , respectively. During the years ended December 31, 2017 and 2016 , the Company sold $249 million and $250 million , respectively, of residential mortgage loans and recorded a loss of $4 million and a gain of $10 million , respectively. As of December 31, 2016 , approximately 2% of residential mortgage loans had FICO scores below 640 . As of December 31, 2016 , none of the Company’s residential mortgage loans had LTV ratios greater than 90% . The Company’s most significant geographic concentration for residential mortgage loans was in California which represented 52% of the portfolio as of December 31, 2016 . Colorado and Washington represented 18% and 13% , respectively, of the portfolio as of December 31, 2016 . No other state represented more than 10% of the total residential mortgage loan portfolio. Syndicated Loans The recorded investment in syndicated loans as of December 31, 2017 and 2016 was $397 million and $392 million , respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. The primary credit indicator for syndicated loans is whether the loans are performing in accordance with the contractual terms of the syndication. Total nonperforming syndicated loans as of December 31, 2017 and 2016 were $5 million and $1 million , respectively. Troubled Debt Restructurings The recorded investment in restructured loans was not material as of December 31, 2017 and 2016 . Troubled debt restructurings did not have a material impact to the Company’s allowance for loan losses or income recognized for the years ended December 31, 2017 , 2016 and 2015 . There are no commitments to lend additional funds to borrowers whose loans have been restructured. |
Deferred Acquisition Costs and
Deferred Acquisition Costs and Deferred Sales Inducement Costs | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Charges, Insurers [Abstract] | |
Deferred Acquisition Costs and Deferred Sales Inducement Costs [Text Block] | Deferred Acquisition Costs and Deferred Sales Inducement Costs In the third quarter of the year, management updated market-related inputs and implemented model changes related to the Company’s living benefit valuation. In addition, management conducted its annual review of life insurance and annuity valuation assumptions relative to current experience and management expectations including modeling changes. These aforementioned changes are collectively referred to as unlocking. The impact of unlocking to DAC for the year ended December 31, 2017 primarily reflected improved persistency and mortality on life insurance contracts and a correction related to a variable annuity model assumption partially offset by updates to market-related inputs to the living benefit valuation. The impact of unlocking to DAC for the year ended December 31, 2016 primarily reflected low interest rates that more than offset benefits from persistency on annuity contracts without living benefits. In addition, the Company’s review of its closed LTC business in the prior year resulted in the write-off of DAC, which was included in the impact of unlocking. The impact of unlocking to DAC for the year ended December 31, 2015 primarily reflected the difference between the Company’s previously assumed interest rates versus the low interest rate environment partially offset by improved persistency. The balances of and changes in DAC were as follows: 2017 2016 2015 (in millions) Balance at January 1 $ 2,611 $ 2,693 $ 2,581 Capitalization of acquisition costs 242 279 (1) 275 Amortization, excluding the impact of valuation assumptions review (219 ) (253 ) (267 ) Amortization, impact of valuation assumptions review 12 (81 ) (2) (6 ) Impact of change in net unrealized securities (gains) losses (7 ) (27 ) 110 Balance at December 31 $ 2,639 $ 2,611 $ 2,693 (1) Includes a $27 million benefit related to the write-off of the deferred reinsurance liability in connection with the loss recognition on LTC business. The benefit was reported in other insurance and operating expenses on the Consolidated Statements of Income. (2) Includes a $58 million expense related to the loss recognition on LTC business. The balances of and changes in DSIC, which is included in other assets, were as follows: 2017 2016 2015 (in millions) Balance at January 1 $ 301 $ 334 $ 361 Capitalization of sales inducement costs 4 5 4 Amortization, excluding the impact of valuation assumptions review (37 ) (42 ) (52 ) Amortization, impact of valuation assumptions review (1 ) 4 1 Impact of change in net unrealized securities (gains) losses 6 — 20 Balance at December 31 $ 273 $ 301 $ 334 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance [Text Block] | Reinsurance The Company reinsures a portion of the insurance risks associated with its traditional life, DI and LTC insurance products 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 2001 (RiverSource Life of NY began in 2002) and new individual UL and VUL insurance policies beginning in 2002 (2003 for RiverSource Life of NY). 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. Similarly, the Company reinsures 50% of the death benefit and morbidity liabilities related to its universal life product with LTC benefits. 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 2001 (2002 for RiverSource Life of NY) is reinsured on a coinsurance basis, a type of reinsurance in which the reinsurer participates proportionally in all material risks and premiums associated with a policy. The Company also has life insurance and fixed annuity risk previously assumed under reinsurance arrangements with unaffiliated insurance companies. For existing LTC policies, the Company has continued ceding 50% of the risk on a coinsurance basis to subsidiaries of Genworth Financial, Inc. (“Genworth”) and retains the remaining risk. For RiverSource Life of NY, this reinsurance arrangement applies for 1996 and later issues only. 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 most states starting in 2007 (2010 for RiverSource Life of NY) and reinsures the remainder of the risk on a coinsurance basis with unaffiliated reinsurance companies. The Company retains all risk for new claims on DI contracts sold on other policy forms introduced prior to 2007 (2010 for RiverSource Life of NY). 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, 2017 and 2016 , traditional life and UL insurance in force aggregated $195.9 billion and $196.5 billion , respectively, of which $142.4 billion as of both December 31, 2017 and 2016 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, 2017 2016 2015 (in millions) Direct premiums $ 637 $ 642 $ 629 Reinsurance ceded (227 ) (225 ) (223 ) Net premiums $ 410 $ 417 $ 406 Policy and contract charges are presented on the Consolidated Statements of Income net of $114 million , $110 million and $107 million of reinsurance ceded for non-traditional long-duration products for the years ended December 31, 2017 , 2016 and 2015 , respectively. Reinsurance recovered on all contracts was $298 million , $318 million and $287 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Reinsurance recoverables include approximately $2.3 billion and $2.0 billion related to LTC risk ceded to Genworth as of December 31, 2017 and 2016 , respectively. Policyholder account balances, future policy benefits and claims include $509 million and $529 million related to previously assumed reinsurance arrangements as of December 31, 2017 and 2016 , respectively. |
Policyholder Account Balances,
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities [Abstract] | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities [Text Block] | Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities Policyholder account balances, future policy benefits and claims consisted of the following: December 31, 2017 2016 (in millions) Policyholder account balances Fixed annuities (1) $ 9,934 $ 10,588 Variable annuity fixed sub-accounts 5,166 5,211 VUL/UL insurance 3,047 3,007 IUL insurance 1,384 1,054 Other life insurance 720 758 Total policyholder account balances 20,251 20,618 Future policy benefits Variable annuity GMWB 463 1,017 Variable annuity GMAB (80 ) (2) (24 ) (2) Other annuity liabilities 78 66 Fixed annuity life contingent liabilities 1,484 1,497 Life and DI insurance 1,221 1,204 LTC insurance 4,896 4,352 VUL/UL and other life insurance additional liabilities 688 588 Total future policy benefits 8,750 8,700 Policy claims and other policyholders’ funds 177 196 Total policyholder account balances, future policy benefits and claims $ 29,178 $ 29,514 (1) Includes fixed deferred annuities, non-life contingent fixed payout annuities and indexed annuity host contracts. (2) Includes the fair value of GMAB embedded derivatives that was a net asset as of both December 31, 2017 and 2016 reported as a contra liability. Fixed Annuities Fixed annuities include deferred, payout and indexed annuity contracts. Deferred contracts offer a guaranteed minimum rate of interest and security of the principal invested. Payout contracts guarantee a fixed income payment for life or the term of the contract. Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates, ranging from 2.71% to 9.38% as of December 31, 2017 , depending on year of issue, with an average rate of approximately 4.09% . The Company generally invests the proceeds from the annuity contracts in fixed rate securities. The Company’s equity indexed annuity (“EIA”) product is a single premium fixed deferred annuity. The Company discontinued new sales of EIA in 2007. The contract was issued with an initial term of seven years and interest earnings are linked to the performance of the S&P 500 ® Index. This annuity has a minimum interest rate guarantee of 3% on 90% of the initial premium, adjusted for any surrenders. The Company generally invests the proceeds from the annuity contracts in fixed rate securities and hedges the equity risk with derivative instruments. In November 2017, the Company began offering a fixed index annuity product which is a fixed annuity that includes an indexed account. The rate of interest credited above the minimum guarantee for funds allocated to the indexed account is linked to the performance of the specific index for the indexed account (subject to a cap). The Company offers S&P 500 ® Index and MSCI ® EAFE Index account options. Both options offer two crediting durations, one-year and two-year. The contractholder may allocate all or a portion of the policy value to a fixed or indexed account. The portion of the policy allocated to the indexed account is accounted for as an embedded derivative. The Company hedges the interest credited rate including equity and interest rate risk related to the indexed account with derivative instruments. The contractholder can choose to add a GMWB for life rider for an additional fee. See Note 17 for additional information regarding the Company’s derivative instruments used to hedge the risk related to indexed annuities. 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 currently issued by the Company contain one or more guaranteed benefits, including GMWB, GMAB, GMDB and GGU provisions. The Company previously offered contracts with GMIB provisions. See Note 2 and Note 10 for additional information regarding the Company’s variable annuity guarantees. The Company does not currently hedge its risk under the GGU and GMIB provisions. See Note 13 and Note 17 for additional information regarding the Company’s derivative instruments used to hedge risks related to GMWB, GMAB and GMDB provisions. Insurance Liabilities VUL/UL is the largest group of insurance policies written by the Company. Purchasers of VUL can select from a variety of investment options and can elect to allocate a portion to a fixed account or a separate account. A vast majority of the premiums received for VUL policies are held in separate accounts where the assets are held for the exclusive benefit of those policyholders. IUL is a universal life policy that includes an indexed account. The rate of credited interest above the minimum guarantee for funds allocated to the indexed account is linked to the performance of the specific index for the indexed account (subject to a cap and floor). The Company offers an S&P 500 ® Index account option and a blended multi-index account option comprised of the S&P 500 Index, the MSCI ® EAFE Index and the MSCI EM Index. Both options offer two crediting durations, one-year and two-year. The policyholder may allocate all or a portion of the policy value to a fixed or any available indexed account. The portion of the policy allocated to the indexed account is accounted for as an embedded derivative at fair value. The Company hedges the interest credited rate including equity and interest rate risk related to the indexed account with 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, unpaid reported claims, incurred but not reported claims and obligations for anticipated future claims. The liability for estimates of benefits that will become payable on future claims on term life, whole life and DI policies is based on the net level premium and LTC policies is based on a gross premium valuation reflecting management’s current best estimate assumptions. Both include the anticipated interest rates earned on assets supporting the liability. Anticipated interest rates for term and whole life ranged from 3% to 10% as of December 31, 2017 . Anticipated interest rates for DI policies ranged from 3.75% to 7.5% as of December 31, 2017 and for LTC policies ranged from 6% to 6.4% as of December 31, 2017 . The liability for unpaid reported claims on DI and LTC policies includes an estimate of the present value of obligations for continuing benefit payments. The discount rates used to calculate present values are based on average interest rates earned on assets supporting the liability for unpaid amounts and were 4.5% and 6.25% for DI and LTC claims, respectively, as of December 31, 2017 . Portions of the Company’s UL and VUL policies have product features that result in profits followed by losses from the insurance component of the policy. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the policy. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. Separate Account Liabilities Separate account liabilities consisted of the following: December 31, 2017 2016 (in millions) Variable annuity $ 75,174 $ 69,606 VUL insurance 7,352 6,659 Other insurance 34 33 Total $ 82,560 $ 76,298 |
Variable Annuity and Insurance
Variable Annuity and Insurance Guarantees | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Variable Annuity and Insurance Guarantees [Text Block] | Variable Annuity and Insurance Guarantees The majority of the variable annuity contracts offered by the Company contain GMDB provisions. The Company also offers variable annuities with GGU, GMWB and GMAB provisions. The Company previously offered contracts containing GMIB provisions. See Note 2 and Note 9 for additional information regarding the Company’s variable annuity guarantees. The GMDB and GGU 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 every sixth contract anniversary minus adjusted partial surrenders. This provision was often provided in combination with the return of premium provision and is no longer offered. • Ratchet – provides that the value ratchets up to the maximum account value at specified anniversary intervals, plus subsequent purchase payments less adjusted partial surrenders. The variable annuity contracts with GMWB riders typically have account values that are based on an underlying portfolio of mutual funds, the values of which fluctuate based on fund performance. At issue, the guaranteed amount is equal to the amount deposited but the guarantee may be increased annually to the account value (a “step-up”) in the case of favorable market performance 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. Variable annuity contractholders age 79 or younger at contract issue can also obtain a principal-back guarantee by purchasing the optional GMAB rider for an additional charge. The GMAB rider guarantees that, regardless of market performance at the end of the 10 -year waiting period, the contract value will be no less than the original investment or 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. Certain UL policies offered by the Company provide secondary guarantee benefits. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities: Variable Annuity Guarantees by Benefit Type (1) December 31, 2017 December 31, 2016 Total Contract Net Weighted Average Attained Age Total Contract Net Weighted Average Attained Age (in millions, except age) GMDB: Return of premium $ 61,418 $ 59,461 $ 9 66 $ 56,143 $ 54,145 $ 208 65 Five/six-year reset 8,870 6,149 12 66 8,878 6,170 22 66 One-year ratchet 6,548 6,187 11 69 6,426 6,050 110 68 Five-year ratchet 1,563 1,506 1 65 1,542 1,483 7 64 Other 1,099 1,075 50 72 965 942 86 71 Total — GMDB $ 79,498 $ 74,378 $ 83 66 $ 73,954 $ 68,790 $ 433 65 GGU death benefit $ 1,118 $ 1,067 $ 133 70 $ 1,047 $ 996 $ 108 68 GMIB $ 233 $ 216 $ 7 69 $ 245 $ 227 $ 13 68 GMWB: GMWB $ 2,508 $ 2,500 $ 1 71 $ 2,650 $ 2,642 $ 2 70 GMWB for life 44,375 44,259 129 67 39,436 39,282 289 (2) 66 Total — GMWB $ 46,883 $ 46,759 $ 130 67 $ 42,086 $ 41,924 $ 291 66 GMAB $ 3,086 $ 3,083 $ — 59 $ 3,484 $ 3,476 $ 21 59 (1) Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table. (2) Amount revised to reflect updated contractholder mortality assumptions as of December 31, 2016. The net amount at risk for GMDB, GGU 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 table provides information related to insurance guarantees for which the Company has established additional liabilities: December 31, 2017 December 31, 2016 Net Amount at Risk Weighted Average Attained Age Net Amount at Risk Weighted Average Attained Age (in millions, except age) UL secondary guarantees $ 6,460 65 $ 6,376 64 The net amount at risk for UL secondary guarantees is defined as the current guaranteed death benefit amount in excess of the current policyholder account balance. Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows: GMDB & GMIB GMWB (1) GMAB (1) UL (in millions) Balance at January 1, 2015 $ 9 $ 7 $ 693 $ (41 ) $ 263 Incurred claims 10 1 364 41 92 Paid claims (5 ) — — — (23 ) Balance at December 31, 2015 14 8 1,057 — 332 Incurred claims 11 1 (40 ) (23 ) 127 Paid claims (9 ) (1 ) — (1 ) (25 ) Balance at December 31, 2016 16 8 1,017 (24 ) 434 Incurred claims 5 — (554 ) (56 ) 84 Paid claims (4 ) (2 ) — — (29 ) Balance at December 31, 2017 $ 17 $ 6 $ 463 $ (80 ) $ 489 (1) The incurred claims for GMWB and GMAB represent the change in the fair value of the liabilities (contra liabilities) less paid claims. The liabilities for guaranteed benefits are supported by general account assets. The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: December 31, 2017 2016 (in millions) Mutual funds: Equity $ 46,038 $ 40,622 Bond 23,529 23,142 Other 5,109 5,326 Total mutual funds $ 74,676 $ 69,090 No gains or losses were recognized on assets transferred to separate accounts for the years ended December 31, 2017 , 2016 and 2015 . |
Lines of Credit
Lines of Credit | 12 Months Ended |
Dec. 31, 2017 | |
Line of Credit Facility [Abstract] | |
Lines of Credit [Text Block] | Lines of Credit RiverSource Life Insurance Company, as the borrower, has a revolving credit agreement with Ameriprise Financial as the lender. The aggregate amount outstanding under the line of credit may not exceed 3% of RiverSource Life Insurance Company’s statutory admitted assets (excluding separate accounts) as of the prior year end. The interest rate for any borrowing under the agreement is established by reference to LIBOR for U.S. dollar deposits with maturities comparable to the relevant interest period, plus 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. There were no amounts outstanding on this line of credit as of December 31, 2017 and 2016 . RiverSource Life of NY, as the borrower, has a revolving credit agreement with Ameriprise Financial as the lender. The aggregate amount outstanding under the line of credit may not exceed the lesser of $25 million or 3% of RiverSource Life of NY’s statutory admitted assets (excluding separate accounts) as of the prior year end. The interest rate for any borrowing is established by reference to LIBOR for U.S. dollar deposits with maturities comparable to the relevant interest period. Amounts borrowed may be repaid at any time with no prepayment penalty. There were no amounts outstanding on this line of credit as of December 31, 2017 and 2016 . RTA has a revolving credit agreement with Ameriprise Financial as the lender not to exceed $100 million . The interest rate for any borrowing is established by reference to LIBOR for U.S. dollar deposits with maturities comparable to the relevant interest period, plus an applicable margin subject to adjustment based on debt ratings of the senior unsecured debt of Ameriprise Financial. This line of credit is automatically renewed annually with Ameriprise Financial. There were no amounts outstanding on this revolving credit agreement as of December 31, 2017 and 2016 . RiverSource Life Insurance Company, as the lender, has a revolving credit agreement with Ameriprise Financial as the borrower. This line of credit is not to exceed 3% of RiverSource Life Insurance Company’s statutory admitted assets as of the prior year end. The interest rate for any borrowing is established by reference to LIBOR for U.S. dollar deposits with maturities comparable to the relevant interest period, plus an applicable margin subject to adjustment based on debt ratings of the senior unsecured debt of Ameriprise Financial. In the event of default, an additional 1% interest will accrue during such period of default. There were no amounts outstanding on this revolving credit agreement as of December 31, 2017 and 2016 . |
Short-term Borrowings
Short-term Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Short-term Debt [Abstract] | |
Short-term Borrowings [Text Block] | Short-term Borrowings The Company enters into repurchase agreements in exchange for cash which it accounts for as secured borrowings and has pledged Available-for-Sale securities to collateralize its obligations under the repurchase agreements. As of December 31, 2017 and 2016 , the Company has pledged $43 million and $33 million , respectively, of agency residential mortgage backed securities and $8 million and $19 million , respectively, of commercial mortgage backed securities. The amount of the Company’s liability including accrued interest as of both December 31, 2017 and 2016 was $50 million . The remaining maturity of outstanding repurchase agreements was less than one month and less than three months as of December 31, 2017 and 2016 , respectively. The weighted average annualized interest rate on repurchase agreements held as of December 31, 2017 and 2016 was 1.4% and 0.9% , respectively. RiverSource Life Insurance Company is a member of the Federal Home Loan Bank (“FHLB”) of Des Moines which provides access to collateralized borrowings. The Company has pledged Available-for-Sale securities consisting of commercial mortgage backed securities to collateralize its obligation under these borrowings. The fair value of the securities pledged is recorded in investments and was $750 million and $771 million as of December 31, 2017 and 2016 , respectively. The amount of the Company’s liability including accrued interest as of both December 31, 2017 and 2016 was $150 million . The remaining maturity of outstanding FHLB advances was less than four months as of both December 31, 2017 and 2016 . The weighted average annualized interest rate on the FHLB advances held as of December 31, 2017 and 2016 was 1.5% and 0.8% , respectively. |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Assets and Liabilities | Fair Values of Assets and Liabilities GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability is not exchanged subject to a forced liquidation or distressed sale. Valuation Hierarchy The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. Level 2 Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities. Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The following tables present the balances of assets and liabilities measured at fair value on a recurring basis: December 31, 2017 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $ — $ 12,161 $ 1,072 $ 13,233 Residential mortgage backed securities — 2,924 87 3,011 Commercial mortgage backed securities — 3,569 — 3,569 State and municipal obligations — 1,314 — 1,314 Asset backed securities — 728 — 728 Foreign government bonds and obligations — 299 — 299 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities: Fixed maturities 1 20,995 1,159 22,155 Cash equivalents — 1,030 — 1,030 Other assets: Interest rate derivative contracts — 1,081 — 1,081 Equity derivative contracts 62 2,305 — 2,367 Foreign exchange derivative contracts 1 34 — 35 Total other assets 63 3,420 — 3,483 Separate account assets at net asset value (“NAV”) 82,560 (1) Total assets at fair value $ 64 $ 25,445 $ 1,159 $ 109,228 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 601 601 GMWB and GMAB embedded derivatives — — (49 ) (49 ) (2) Total policyholder account balances, future policy benefits and claims — 5 552 557 (3) Other liabilities: Interest rate derivative contracts 1 414 — 415 Equity derivative contracts 5 2,666 — 2,671 Foreign exchange derivative contracts — 23 — 23 Credit derivative contracts — 2 — 2 Total other liabilities 6 3,105 — 3,111 Total liabilities at fair value $ 6 $ 3,110 $ 552 $ 3,668 December 31, 2016 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $ — $ 12,955 $ 1,157 $ 14,112 Residential mortgage backed securities — 3,300 115 3,415 Commercial mortgage backed securities — 2,857 — 2,857 State and municipal obligations — 1,229 — 1,229 Asset backed securities — 792 13 805 Foreign government bonds and obligations — 261 — 261 U.S. government and agency obligations 3 — — 3 Total Available-for-Sale securities: Fixed maturities 3 21,394 1,285 22,682 Common stocks 6 4 — 10 Cash equivalents — 302 — 302 Other assets: Interest rate derivative contracts — 1,735 — 1,735 Equity derivative contracts 43 1,487 — 1,530 Credit derivative contracts — 1 — 1 Foreign exchange derivative contracts — 80 — 80 Total other assets 43 3,303 — 3,346 Separate account assets at NAV 76,298 (1) Total assets at fair value $ 52 $ 25,003 $ 1,285 $ 102,638 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 464 464 GMWB and GMAB embedded derivatives — — 614 614 (4) Total policyholder account balances, future policy benefits and claims — 5 1,078 1,083 (5) Other liabilities: Interest rate derivative contracts 1 964 — 965 Equity derivative contracts 2 1,987 — 1,989 Foreign exchange derivative contracts 2 45 — 47 Total other liabilities 5 2,996 — 3,001 Total liabilities at fair value $ 5 $ 3,001 $ 1,078 $ 4,084 (1) Amounts are comprised of certain 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. (2) The fair value of the GMWB and GMAB embedded derivatives included $443 million of individual contracts in a liability position and $492 million of individual contracts in an asset position as of December 31, 2017 . (3) The Company’s adjustment for nonperformance risk resulted in a $(399) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2017 . (4) The fair value of the GMWB and GMAB embedded derivatives included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position as of December 31, 2016 . (5) The Company’s adjustment for nonperformance risk resulted in a $(498) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2016 . 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: Fixed Maturities Common Stocks Corporate Residential Commercial Asset Total Balance, January 1, 2017 $ 1,157 $ 115 $ — $ 13 $ 1,285 $ — Total gains (losses) included in: Net income 1 — — — 1 (1) — Other comprehensive income (loss) (8 ) 1 — — (7 ) — Purchases 124 67 36 49 276 — Settlements (202 ) (7 ) — (13 ) (222 ) — Transfers into Level 3 — — — 11 11 4 Transfers out of Level 3 — (89 ) (36 ) (60 ) (185 ) (4 ) Balance, December 31, 2017 $ 1,072 $ 87 $ — $ — $ 1,159 $ — Changes in unrealized gains (losses) relating to assets held at December 31, 2017 $ 1 $ — $ — $ — $ 1 (1) $ — Policyholder Account Balances, IUL GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2017 $ 464 $ 614 $ 1,078 Total (gains) losses included in: Net income 87 (2) (977 ) (3) (890 ) Issues 92 326 418 Settlements (42 ) (12 ) (54 ) Balance, December 31, 2017 $ 601 $ (49 ) $ 552 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2017 $ 87 (2) $ (946 ) (3) $ (859 ) Available-for-Sale Securities: Fixed Maturities Other Derivative Contracts Corporate Residential Commercial Asset Total (in millions) Balance, January 1, 2016 $ 1,235 $ 21 $ 3 $ 133 $ 1,392 $ — Total gains (losses) included in: Net income 1 — — 1 2 (1) (2 ) (3) Other comprehensive income (loss) (1 ) (1 ) — — (2 ) — Purchases 47 134 42 — 223 2 Settlements (126 ) (9 ) (3 ) (1 ) (139 ) — Transfers into Level 3 1 — — 12 13 — Transfers out of Level 3 — (30 ) (42 ) (132 ) (204 ) — Balance, December 31, 2016 $ 1,157 $ 115 $ — $ 13 $ 1,285 $ — Changes in unrealized gains (losses) relating to assets held at December 31, 2016 $ 1 $ — $ — $ — $ 1 (1) $ (2 ) (3) Policyholder Account Balances, Future Policy Benefits and Claims IUL GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2016 $ 364 $ 851 $ 1,215 Total (gains) losses included in: Net income 13 (2) (511 ) (3) (498 ) Issues 115 295 410 Settlements (28 ) (21 ) (49 ) Balance, December 31, 2016 $ 464 $ 614 $ 1,078 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2016 $ 13 (2) $ (448 ) (3) $ (435 ) Available-for-Sale Securities: Fixed Maturities Common Stocks Corporate Residential Commercial Asset Total (in millions) Balance, January 1, 2015 $ 1,353 $ 9 $ 90 $ 151 $ 1,603 $ 1 Total gains (losses) included in: Net income (1 ) — — 1 — (1) — Other comprehensive income (loss) (21 ) — — (2 ) (23 ) (1 ) Purchases 153 67 32 16 268 — Settlements (238 ) (4 ) (7 ) (2 ) (251 ) — Transfers into Level 3 — — 6 14 20 — Transfers out of Level 3 (11 ) (51 ) (118 ) (45 ) (225 ) — Balance, December 31, 2015 $ 1,235 $ 21 $ 3 $ 133 $ 1,392 $ — Changes in unrealized gains (losses) relating to assets held at December 31, 2015 $ (1 ) $ — $ — $ 1 $ — (1) $ — Policyholder Account Balances, IUL GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2015 $ 242 $ 479 $ 721 Total (gains) losses included in: Net income 27 (2) 105 (3) 132 Issues 114 271 385 Settlements (19 ) (4 ) (23 ) Balance, December 31, 2015 $ 364 $ 851 $ 1,215 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2015 $ 27 (2) $ 127 (3) $ 154 (1) Included in net investment income in the Consolidated Statements of Income. (2) Included in interest credited to fixed accounts in the Consolidated Statements of Income. (3) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $(71) million , $98 million and $74 million , net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the years ended December 31, 2017 , 2016 and 2015 , 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. Securities transferred to Level 3 represent securities with fair values that are now based on a single non-binding broker quote. The Company recognizes transfers between levels of the fair value hierarchy as of the beginning of the quarter in which each transfer occurred. For assets and liabilities held at the end of the reporting periods that are measured at fair value on a recurring basis, there were no transfers between Level 1 and Level 2. The following 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, 2017 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities $ 1,070 Discounted cash flow Yield/spread to U.S. Treasuries 0.7 % - 2.3% 1.1 % IUL embedded derivatives $ 601 Discounted cash flow Nonperformance risk (1) 71 bps GMWB and GMAB embedded derivatives $ (49 ) Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0 % - 42.0% Surrender rate 0.1 % - 74.7% Market volatility (3) 3.7 % - 16.1% Nonperformance risk (1) 71 bps December 31, 2016 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities $ 1,154 Discounted cash flow Yield/spread to U.S. Treasuries 0.9 % - 2.5% 1.3 % IUL embedded derivatives $ 464 Discounted cash flow Nonperformance risk (1) 82 bps GMWB and GMAB embedded derivatives $ 614 Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0 % - 75.6% Surrender rate 0.1 % - 66.4% Market volatility (3) 5.3 % - 21.2% Nonperformance risk (1) 82 bps (1) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. (2) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. (3) Market volatility is implied volatility of fund of funds and managed volatility funds. Level 3 measurements not included in the table above are obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company. Sensitivity of Fair Value Measurements to Changes in Unobservable Inputs Significant increases (decreases) in the yield/spread to U.S. Treasuries used in the fair value measurement of Level 3 corporate debt securities in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in nonperformance risk used in the fair value measurement of the IUL embedded derivatives in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in utilization and volatility used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly higher (lower) liability value. Significant increases (decreases) in nonperformance risk and surrender rate used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly lower (higher) liability value. Utilization of guaranteed withdrawals and surrender rates vary with the type of rider, the duration of the policy, the age of the contractholder, the distribution channel and whether the value of the guaranteed benefit exceeds the contract accumulation value. Determination of Fair Value The Company uses valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The Company’s market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company’s income approach uses valuation techniques to convert future projected cash flows to a single discounted present value amount. When applying either approach, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy. Assets Cash Equivalents Cash equivalents include highly liquid investments with original 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. 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. Level 3 securities primarily include certain corporate bonds, non-agency residential mortgage backed securities and asset backed securities. The fair value of corporate bonds, non-agency residential mortgage backed securities and certain asset backed securities classified as Level 3 is typically based on a single non-binding broker quote. The underlying inputs used for some of the non-binding broker quotes are not readily available to the Company. The Company’s privately placed corporate bonds are typically based on a single non-binding broker quote. In addition to the general pricing controls, the Company reviews the broker prices to ensure that the broker quotes are reasonable and, when available, compares prices of privately issued securities to public issues from the same issuer to ensure that the implicit illiquidity premium applied to the privately placed investment is reasonable considering investment characteristics, maturity, and average life of the investment. In consideration of the above, management is responsible for the fair values recorded on the financial statements. Prices received from third-party pricing services are subjected to exception reporting that identifies investments with significant daily price movements as well as no movements. The Company reviews the exception reporting and resolves the exceptions through reaffirmation of the price or recording an appropriate fair value estimate. The Company also performs subsequent transaction testing. The Company performs annual due diligence of third-party pricing services. The Company’s due diligence procedures include assessing the vendor’s valuation qualifications, control environment, analysis of asset-class specific valuation methodologies, and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. The Company also considers the results of its exception reporting controls and any resulting price challenges that arise. Separate Account Assets The fair value of assets held by separate accounts is determined by the 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. 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 December 31, 2017 and 2016 . See Note 16 and Note 17 for further information on the credit risk of derivative instruments and related collateral. Liabilities Policyholder Account Balances, Future Policy Benefits and Claims The Company values the embedded derivatives attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculate fair value by discounting expected cash flows from benefits plus margins for profit, risk and expenses less embedded derivative fees. The projected cash flows used by these models include observable capital market assumptions and incorporate significant unobservable inputs related to contractholder behavior assumptions, implied volatility, and margins for risk, profit and expenses that the Company believes an exit market participant would expect. The fair value also reflects a current estimate of the Company’s nonperformance risk specific to these embedded derivatives. Given the significant unobservable inputs to this valuation, these measurements are classified as Level 3. The embedded derivatives attributable to these provisions are recorded in policyholder account balances, future policy benefits and claims. The Company uses various Black-Scholes calculations to determine the fair value of the embedded derivatives associated with the provisions of its indexed annuity and IUL products. Significant inputs to the EIA calculation include observable interest rates, volatilities and equity index levels and, therefore, are classified as Level 2. The fair value of the fixed index annuity and 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 to the fair value, the fixed index annuity and 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. The Company’s Corporate Actuarial Department calculates the fair value of the embedded derivatives on a monthly basis. During this process, control checks are performed to validate the completeness of the data. Actuarial management approves various components of the valuation along with the final results. The change in the fair value of the embedded derivatives is reviewed monthly with senior management. The Level 3 inputs into the valuation are consistent with the pricing assumptions and updated as experience develops. Significant unobservable inputs that reflect policyholder behavior are reviewed quarterly along with other valuation assumptions. 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 December 31, 2017 and 2016 . 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 The Company assesses its investment in affordable housing partnerships for other-than-temporary impairment. The investments that are determined to be other-than-temporarily impaired are written down to their fair value. The Company uses a discounted cash flow model to measure the fair value of these investments. Inputs to the discounted cash flow model are estimates of future net operating losses and tax credits available to the Company and discount rates based on market condition and the financial strength of the syndicator (general partner). During the year ended December 31, 2017, the Company recognized $64 million of impairments on its investment in affordable housing partnerships primarily due to the enactment of the Tax Act. The balance of affordable housing partnerships measured at fair value on a nonrecurring basis was $166 million as of December 31, 2017 and is classified as Level 3 in the fair value hierarchy. Asset 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, 2017 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,619 $ — $ — $ 2,616 $ 2,616 Policy loans 845 — — 801 801 Other investments 408 — 373 36 409 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 10,246 $ — $ — $ 10,755 $ 10,755 Short-term borrowings 200 — 200 — 200 Other liabilities 123 — — 119 119 Separate account liabilities at NAV 369 369 (1) December 31, 2016 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,874 $ — $ — $ 2,865 $ 2,865 Policy loans 830 — — 807 807 Other investments 402 — 364 43 407 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 10,906 $ — $ — $ 11,417 $ 11,417 Short-term borrowings 200 — 200 — 200 Other liabilities 177 — — 169 169 Separate account liabilities at NAV 341 341 (1) (1) Amounts are comprised of certain 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. Mortgage Loans, Net The fair value of commercial mortgage loans, except those with significant credit deterioration, is determined by discounting contractual cash flows using discount rates that reflect current pricing for loans with similar remaining maturities, liquidity and characteristics including LTV ratio, occupancy rate, refinance risk, debt service coverage, location, and property condition. For commercial mortgage loans with significant credit deterioration, fair value is determined using the same adjustments as above with an additional adjustment for the Company’s estimate of the amount recoverable on the loan. Given the significant unobservable inputs to the valuation of commercial mortgage loans, these measurements are classified as Level 3. The fair value of residential mortgage loans as of December 31, 2016 is determined by discounting estimated cash flows and incorporating adjustments for prepayment, administration expenses, loss severity and credit loss estimates, with discount rates based on the Company’s estimate of current market conditions. Given the significant unobservable inputs to the valuation of residential mortgage loans as of December 31, 2016 , these measurements are classified as Level 3. Policy Loans Policy loans represent loans made against the cash surrender value of the underlying life insurance or annuity product. These loans and the related interest are usually realized at death of the policyholder or contractholder or at surrender of the contract and are not transferable without the underlying insurance or annuity contract. The fair value of policy loans is determined by estimating expected cash flows discounted at rates based on the U.S. Treasury curve. Policy loans are classified as Level 3 as the discount rate used may be adjusted for the underlying performance of individual policies. Other Investments Other investments primarily consist of syndicated loans and an investment in FHLB. The fair value of syndicated loans is obtained from a third-party pricing service or non-binding broker quotes. Syndicated loans that are priced using a market approach with observable inputs are classified as Level 2 and syndicated loans priced using a single non-binding broker quote are classified as Level 3. The fair value of the investment in FHLB is approximated by the carrying value and classified as Level 3 due to restrictions on transfer and lack of liquidity in the primary market for this asset. Policyholder Account Balances, Future Policy Benefits and Claims The fair value of fixed annuities in deferral status is determined by discounting cash flows using a risk neutral discount rate with adjustments for profit margin, expense margin, early policy surrender behavior, a margin for adverse deviation from estimated early policy surrender behavior and the Company’s nonperformance risk specific to these liabilities. The fair value of non-life contingent fixed annuities in payout status, indexed annuity host contracts and the fixed portion of a small number of variable annuity contracts classified as investment contracts is determined in a similar manner. Given the use of significant unobservable inputs to these valuations, the measurements are classified as Level 3. Short-term Borrowings The fair value of short-term borrowings is obtained from a third-party pricing service. A nonperformance adjustment is not included as collateral requirements for these borrowings minimize the nonperformance risk. The fair value of short-term borrowings is classified as Level 2. Other Liabilities Other liabilities consist of future funding commitments to affordable housing partnerships and other real estate partnerships. The fair value of these future funding commitments is determined by discounting cash flows. The fair value of these commitments includes an adjustment for the Company’s nonperformance risk and is classified as Level 3 due to the use of the significant unobservable input. Separate Account Liabilities Certain separate account liabilities are classified as investment contracts and are carried at an amount equal to the related separate account assets. The NAV of the related separate account assets is used as a practical expedient for fair value and represents the exit price for the separate account liabilities. Separate account liabilities are excluded from classification in the fair value hierarchy. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions [Text Block] | Related Party Transactions CMIA is the investment advisor for the proprietary mutual funds used as investment options by the Company’s variable annuity contractholders and variable life insurance policyholders. The Company provides distribution and certain administrative services on behalf of CMIA and is compensated for the services it provides. For the years ended December 31, 2017 , 2016 and 2015 , the Company earned $322 million , $313 million and $311 million , respectively, from CMIA for these services. Columbia Management Investment Distributors, Inc. (“CMID”), an affiliate of the Company, is the principal underwriter and distributor for the proprietary mutual funds used as investment options by the Company’s variable annuity contractholders and variable life insurance policyholders. The Company provides certain administrative services to assist in the promotion, distribution and account servicing of shares of the portfolios of the Company’s variable products and is compensated for providing these services. For the years ended December 31, 2017 , 2016 and 2015 , the Company earned $167 million , $158 million and $162 million , respectively, from CMID for these services. Columbia Management Investment Services Corp. (“CMIS”), an affiliate of the Company, is the transfer agent that processes transactions related to the Company’s variable products. The Company provides administrative services related to these transactions and is compensated for providing these services. For the years ended December 31, 2017 , 2016 and 2015 , the Company earned $42 million , $40 million and $41 million , respectively, from CMIS for these services. Charges by Ameriprise Financial and affiliated companies to the Company for use of joint facilities, technology support, marketing services and other services aggregated $390 million , $400 million and $437 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Certain of these costs are included in DAC. Expenses allocated to the Company may not be reflective of expenses that would have been incurred by the Company on a stand-alone basis. Dividends paid and received by RiverSource Life Insurance Company were as follows: Years Ended December 31, 2017 2016 2015 (in millions) Cash dividends paid to Ameriprise Financial $ 700 $ 1,000 $ 800 Cash dividends received from RiverSource Life of NY 50 50 25 Cash dividend received from RTA 20 15 — Cash dividend received from RiverSource REO 1, LLC (1) — 31 — (1) RiverSource REO 1, LLC is a wholly owned subsidiary of RiverSource Life Insurance Company which holds foreclosed mortgage loans and real estate. On February 20, 2018, the Company’s board of directors declared a cash dividend of $200 million to Ameriprise Financial, payable on or before March 22, 2018, pending approval by the Minnesota Department of Commerce. For dividends from the life insurance companies, advance notification was provided to state insurance regulators prior to all dividend payments. See Note 15 for additional information. The Company’s taxable income is included in the consolidated federal income tax return of Ameriprise Financial. The net amount due to Ameriprise Financial for federal income taxes was $105 million and $168 million as of December 31, 2017 and 2016 , respectively, which is reflected in Other, net within operating activities on the Consolidated Statements of Cash Flows. |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Requirements | |
Regulatory Requirements [Text Block] | Regulatory 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 more significant differences from 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. RiverSource Life Insurance Company received approval from the Minnesota Department of Commerce to apply a permitted statutory accounting practice, effective July 1, 2017 through June 30, 2018, for certain derivative instruments used to economically hedge the interest rate exposure of certain variable annuity products that do not qualify for statutory hedge accounting. The permitted practice is intended to mitigate the impact to statutory surplus from the misalignment between variable annuity statutory reserves, which are not carried at fair value, and the fair value of derivatives used to economically hedge the interest rate exposure of non-life contingent living benefit guarantees. The permitted practice allows RiverSource Life Insurance Company to defer a portion of the change in fair value, net investment income and realized gains or losses generated from designated derivatives to the extent the amounts do not offset the current period interest-rate related change in the variable annuity statutory reserve liability. The deferred amount is amortized over ten years using the straight-line method with the ability to accelerate amortization at management’s discretion. There was no immediate impact to statutory surplus at the effective date for the permitted statutory accounting practice. As of December 31, 2017, application of this permitted practice resulted in a decrease to RiverSource Life Insurance Company’s statutory surplus of approximately $3 million . State insurance statutes contain limitations as to the amount of dividends that insurers may make without providing prior notification to state regulators. For RiverSource Life Insurance Company, dividends in excess of unassigned surplus, as determined in accordance with accounting practices prescribed by the State of Minnesota, require advance notice to the Minnesota Department of Commerce, RiverSource Life Insurance Company’s primary regulator, and are subject to potential disapproval. RiverSource Life Insurance Company’s statutory unassigned surplus (deficit) aggregated $(306) million and $275 million as of December 31, 2017 and 2016 , respectively. In addition, dividends whose fair market value, together with that of other dividends made within the preceding 12 months, exceeds the greater of the previous year’s statutory net gain from operations or 10% of the previous year-end statutory capital and surplus are referred to as “extraordinary dividends.” Extraordinary dividends also require advance notice to the Minnesota Department of Commerce, and are subject to potential disapproval. Statutory capital and surplus was $2.4 billion and $3.0 billion as of December 31, 2017 and 2016 , respectively. Statutory net gain from operations and net income (loss) are summarized as follows: Years Ended December 31, 2017 2016 2015 (in millions) Statutory net gain from operations $ 958 $ 834 $ 1,033 Statutory net income (loss) 222 322 633 Government debt securities of $4 million as of both December 31, 2017 and 2016 were on deposit with various states as required by law. |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities [Text Block] | Offsetting Assets and Liabilities Certain financial instruments and derivative instruments are eligible for offset in the Consolidated Balance Sheets. The Company’s derivative instruments and repurchase agreements are subject to master netting arrangements 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 Consolidated Balance Sheets. The following tables present the gross and net information about the Company’s assets subject to master netting arrangements: December 31, 2017 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,440 $ — $ 3,440 $ (2,599 ) $ (736 ) $ (88 ) $ 17 OTC cleared 21 — 21 (15 ) — — 6 Exchange-traded 22 — 22 (1 ) — — 21 Total derivatives $ 3,483 $ — $ 3,483 $ (2,615 ) $ (736 ) $ (88 ) $ 44 December 31, 2016 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 2,822 $ — $ 2,822 $ (2,161 ) $ (374 ) $ (235 ) $ 52 OTC cleared 510 — 510 (507 ) (3 ) — — Exchange-traded 14 — 14 (2 ) — — 12 Total derivatives $ 3,346 $ — $ 3,346 $ (2,670 ) $ (377 ) $ (235 ) $ 64 (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 Consolidated Balance Sheets. The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements: December 31, 2017 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,095 $ — $ 3,095 $ (2,599 ) $ (1 ) $ (492 ) $ 3 OTC cleared 15 — 15 (15 ) — — — Exchange-traded 1 — 1 (1 ) — — — Total derivatives 3,111 — 3,111 (2,615 ) (1 ) (492 ) 3 Repurchase agreements 50 — 50 — — (50 ) — Total $ 3,161 $ — $ 3,161 $ (2,615 ) $ (1 ) $ (542 ) $ 3 December 31, 2016 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 2,481 $ — $ 2,481 $ (2,161 ) $ — $ (312 ) $ 8 OTC cleared 515 — 515 (507 ) (8 ) — — Exchange-traded 5 — 5 (2 ) — — 3 Total derivatives 3,001 — 3,001 (2,670 ) (8 ) (312 ) 11 Repurchase agreements 50 — 50 — — (50 ) — Total $ 3,051 $ — $ 3,051 $ (2,670 ) $ (8 ) $ (362 ) $ 11 (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 Consolidated Balance Sheets. In the tables above, the amounts 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. Repurchase agreements are reflected in short-term borrowings. See Note 17 for additional disclosures related to the Company’s derivative instruments and Note 12 for additional disclosures related to the Company’s repurchase agreements. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 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. The Company’s freestanding derivative instruments are all subject to master netting arrangements. The Company’s policy on the recognition of derivatives on the Consolidated 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. 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, 2017 December 31, 2016 Notional Gross Fair Value Notional Gross Fair Value Assets (1) Liabilities (2) Assets (1) Liabilities (2) (in millions) Derivatives not designated as hedging instruments Interest rate contracts $ 64,790 $ 1,081 $ 415 $ 71,019 $ 1,735 $ 965 Equity contracts 56,649 2,367 2,671 60,419 1,530 1,989 Credit contracts 715 — 2 1,039 1 — Foreign exchange contracts 3,996 35 23 4,494 80 47 Other contracts 450 — — 240 — — Total non-designated hedges 126,600 3,483 3,111 137,211 3,346 3,001 Embedded derivatives GMWB and GMAB (3) N/A — (49 ) N/A — 614 IUL N/A — 601 N/A — 464 Indexed annuities N/A — 5 N/A — 5 Total embedded derivatives N/A — 557 N/A — 1,083 Total derivatives $ 126,600 $ 3,483 $ 3,668 $ 137,211 $ 3,346 $ 4,084 N/A Not applicable. (1) The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. (2) The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and indexed annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. (3) The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2017 included $443 million of individual contracts in a liability position and $492 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2016 included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position. See Note 13 for additional information regarding the Company’s fair value measurement of derivative instruments. As of December 31, 2017 and 2016 , investment securities with a fair value of $89 million and $235 million , respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $89 million and $118 million , respectively, may be sold, pledged or rehypothecated by the Company. As of December 31, 2017 and 2016 , the Company had sold, pledged, or rehypothecated nil and $19 million , respectively, of these securities. In addition, as of December 31, 2017 and 2016 , non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets. The following table presents a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income: Interest Credited to Fixed Accounts Benefits, Claims, Losses and Settlement Expenses (in millions) Year Ended December 31, 2017 Interest rate contracts $ — $ 3 Equity contracts 75 (1,006 ) Credit contracts — (22 ) Foreign exchange contracts — (23 ) Other contracts — (2 ) GMWB and GMAB embedded derivatives — 663 IUL embedded derivatives (45 ) — Total gain (loss) $ 30 $ (387 ) Year Ended December 31, 2016 Interest rate contracts $ — $ 38 Equity contracts 20 (857 ) Credit contracts — 2 Other contracts — (2 ) GMWB and GMAB embedded derivatives — 237 IUL embedded derivatives 15 — Total gain (loss) $ 35 $ (582 ) Year Ended December 31, 2015 Interest rate contracts $ — $ 232 Equity contracts (10 ) (308 ) Credit contracts — (1 ) Foreign exchange contracts — 13 Other contracts — (1 ) GMWB and GMAB embedded derivatives — (372 ) IUL embedded derivatives (8 ) — Indexed annuity embedded derivatives 1 — Total gain (loss) $ (17 ) $ (437 ) 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. Certain annuity contracts contain GMWB or GMAB provisions, which guarantee the right to make limited partial withdrawals each contract year regardless of the volatility inherent in the underlying investments or guarantee a minimum accumulation value of consideration received at the beginning of the contract period, after a specified holding period, respectively. The GMAB and non-life contingent GMWB provisions are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. The Company economically hedges the exposure related to GMAB and non-life contingent GMWB provisions primarily using futures, options, interest rate swaptions, interest rate swaps, total return swaps and variance swaps. The deferred premium associated with certain of the above options and swaptions 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 and swaptions as of December 31, 2017 : Premiums Premiums (in millions) 2018 $ 213 $ 129 2019 276 170 2020 198 98 2021 168 107 2022 231 147 2023-2026 472 59 Total $ 1,558 $ 710 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. The Company has a macro hedge program to provide protection against the statutory tail scenario risk arising from variable annuity reserves on its statutory surplus and to cover some of the residual risks not covered by other hedging activities. As a means of economically hedging these risks, the Company uses a combination of futures, options, swaps and swaptions. Certain of the macro hedge derivatives contain settlement provisions linked to both equity returns and interest rates. The Company’s macro hedge derivatives that contain settlement provisions linked to both equity returns and interest rates are shown in Other contracts in the tables above. Indexed annuity and IUL products have returns tied to the performance of equity markets. As a result of fluctuations in equity markets, the obligation incurred by the Company related to indexed annuity and IUL products will positively or negatively impact earnings over the life of these products. The equity component of indexed annuity and IUL product obligations are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated 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 these products, the Company enters into index options and futures contracts. Cash Flow Hedges During the year ended December 31, 2017 , the Company held no derivatives that were designated as cash flow hedges. As of December 31, 2017 , the Company expects to reclassify $2 million of deferred losses on derivative instruments from AOCI to earnings during the next 12 months that will be recorded in net investment income. These were originally losses on derivative instruments related to interest rate swaptions. During the years ended December 31, 2017 and 2016 , no hedge relationships were discontinued due to forecasted transactions no longer being expected to occur according to the original hedge strategy. For the years ended December 31, 2017 , 2016 and 2015 , amounts recognized in earnings on derivative transactions that were ineffective were not material. See Note 18 for a summary of net unrealized gains (losses) included in AOCI related to previously designated cash flow hedges. Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is one year and relates to interest credited on forecasted fixed premium product sales. Credit Risk Credit risk associated with the Company’s derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative contract. To mitigate such risk, the Company has established guidelines and oversight of credit risk through a comprehensive enterprise risk management program that includes members of senior management. Key components of this program are to require preapproval of counterparties and the use of master netting 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 the Company’s parent, Ameriprise Financial). Additionally, certain of the Company’s derivative contracts contain provisions that allow the counterparty to terminate the contract if the Company does not maintain a specific financial strength rating or Ameriprise Financial’s debt does not maintain a specific credit rating (generally an investment grade rating). If these termination provisions were to be triggered, the Company’s counterparty could require immediate settlement of any net liability position. As of December 31, 2017 and 2016 , the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $299 million and $206 million , respectively. The aggregate fair value of assets posted as collateral for such instruments as of December 31, 2017 and 2016 was $296 million and $198 million , respectively. If the credit contingent provisions of derivative contracts in a net liability position as of December 31, 2017 and 2016 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 $3 million and $8 million , respectively. |
Shareholder's Equity
Shareholder's Equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Shareholder's Equity [Text Block] | Shareholder’s Equity The following tables provide the amounts related to each component of OCI: Years Ended December 31, 2017 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized securities gains (losses): Net unrealized securities gains (losses) arising during the period (1) $ 210 $ (61 ) $ 149 Reclassification of net securities (gains) losses included in net income (2) (44 ) 15 (29 ) Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables (180 ) 57 (123 ) Net unrealized securities gains (losses) (14 ) 11 (3 ) Net unrealized derivatives gains (losses): Reclassification of net derivative (gains) losses included in net income (3) 5 (2 ) 3 Net unrealized derivatives gains (losses) 5 (2 ) 3 Other (1 ) — (1 ) Total other comprehensive income (loss) $ (10 ) $ 9 $ (1 ) Years Ended December 31, 2016 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized securities gains (losses): Net unrealized securities gains (losses) arising during the period (1) $ 350 $ (124 ) $ 226 Reclassification of net securities (gains) losses included in net income (2) (17 ) 6 (11 ) Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables (242 ) 85 (157 ) Net unrealized securities gains (losses) 91 (33 ) 58 Net unrealized derivatives gains (losses): Reclassification of net derivative (gains) losses included in net income (3) 6 (2 ) 4 Net unrealized derivatives gains (losses) 6 (2 ) 4 Total other comprehensive income (loss) $ 97 $ (35 ) $ 62 Years Ended December 31, 2015 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized securities gains (losses): Net unrealized securities gains (losses) arising during the period (1) $ (997 ) $ 351 $ (646 ) Reclassification of net securities (gains) losses included in net income (2) (6 ) 2 (4 ) Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables 480 (168 ) 312 Net unrealized securities gains (losses) (523 ) 185 (338 ) Net unrealized derivatives gains (losses): Reclassification of net derivative (gains) losses included in net income (3) 6 (2 ) 4 Net unrealized derivatives gains (losses) 6 (2 ) 4 Total other comprehensive income (loss) $ (517 ) $ 183 $ (334 ) (1) Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period. (2) Reclassification amounts are recorded in net realized investment gains (losses). (3) Reclassification amounts are recorded in net investment income. Other comprehensive income (loss) related to net unrealized securities gains (losses) 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 other-than-temporary impairment losses to credit losses; and (iii) other adjustments primarily consisting of changes in insurance and annuity asset and liability balances, such as DAC, DSIC, unearned revenue, 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: Net Unrealized Securities Gains (Losses) Net Unrealized Derivatives Gains Other Total (in millions) Balance, January 1, 2015 $ 741 $ (12 ) $ — $ 729 OCI before reclassifications (334 ) — — (334 ) Amounts reclassified from AOCI (4 ) 4 — — Total OCI (338 ) 4 — (334 ) Balance, December 31, 2015 403 (1) (8 ) — 395 OCI before reclassifications 69 — — 69 Amounts reclassified from AOCI (11 ) 4 — (7 ) Total OCI 58 4 — 62 Balance, December 31, 2016 461 (1) (4 ) — 457 OCI before reclassifications 26 — (1 ) 25 Amounts reclassified from AOCI (29 ) 3 — (26 ) Total OCI (3 ) 3 (1 ) (1 ) Balance, December 31, 2017 $ 458 (1) $ (1 ) $ (1 ) $ 456 (1) Includes nil , nil and $2 million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at December 31, 2017 , 2016 and 2015 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax provision were as follows: Years Ended December 31, 2017 2016 2015 (in millions) Current income tax Federal $ 158 $ 18 $ 234 State 1 1 2 Total current income tax 159 19 236 Deferred income tax Federal 103 6 (91 ) State (2 ) (1 ) — Total deferred income tax 101 5 (91 ) Total income tax provision $ 260 $ 24 $ 145 On December 22, 2017, the Tax Act was signed into law. The provision for income taxes for the year ended December 31, 2017 includes an expense of $140 million due to the enactment of the Tax Act. The $140 million expense includes a $136 million expense for the remeasurement of deferred tax assets and liabilities to the Tax Act’s statutory rate of 21% and a $4 million expense for the remeasurement of tax contingencies, specifically state tax contingencies and interest accrued for tax contingencies. The Company considers the expenses related to the remeasurement of deferred tax assets and liabilities to be provisional amounts based on reasonable estimates as discussed below. The principal reasons that the aggregate income tax provision is different from that computed by using the U.S. statutory rate of 35% were as follows: Years Ended December 31, 2017 2016 2015 Tax at U.S. statutory rate 35.0 % 35.0 % 35.0 % Changes in taxes resulting from: Impact of Tax Act 14.0 — — Dividend received deduction (12.9 ) (17.1 ) (14.0 ) Low income housing tax credits (7.4 ) (9.4 ) (6.1 ) Foreign tax credit, net of addback (2.7 ) (3.8 ) — Taxes applicable to prior years — (2.0 ) — Other, net — 0.7 (0.9 ) Income tax provision 26.0 % 3.4 % 14.0 % The effective tax rates are lower than the statutory rate as a result of tax preferred items including the dividends received deduction and low income housing credits. The increase in the effective tax rate for the year ended December 31, 2017 compared to 2016 was primarily due to a $140 million expense in 2017 due to provisions of the Tax Act, including remeasurement of net deferred tax assets and remeasurement of tax contingencies. The decrease in the effective tax rate for the year ended December 31, 2016 compared to 2015 was primarily due to lower pretax income in relation to preferred items including the dividends received deduction and low income housing tax credits. As of December 31, 2017, the Company had not fully completed its accounting for the tax effects of the enactment of the Tax Act; however, the Company is able to provide reasonable estimates of the Tax Act’s impact. The Company’s provision for income taxes for the year ended December 31, 2017 is based in part on a reasonable estimate of the remeasurement of deferred tax assets and liabilities under the Tax Act. The Company recognized a provisional tax amount of $140 million , which is included as a component of provision for income taxes from continuing operations. The Company considers the accounting for the Tax Act’s expense related to the remeasurement of tax contingencies to be final and complete. The Company recorded a provisional tax amount of $136 million to remeasure certain deferred tax assets and liabilities as a result of the enactment of the Tax Act. The Company is still analyzing certain aspects of the Tax Act and is refining the estimate of the expected reversal of its deferred tax balances. This can potentially affect the measurement of these balances or give rise to new deferred tax amounts. In addition, further guidance from federal and state taxing authorities may change the provisional tax liability or the accounting treatment of the provisional tax liability. 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 21% as of December 31, 2017 and 35% as of December 31, 2016. The significant components of the Company’s deferred income tax assets and liabilities, which are included net within other assets or other liabilities on the Consolidated Balance Sheets, were as follows: December 31, 2017 2016 (in millions) Deferred income tax assets Liabilities for policyholder account balances, future policy benefits and claims $ 599 $ 1,144 Investment related 251 236 Other 29 13 Gross deferred income tax assets 879 1,393 Less: valuation allowance 11 8 Total deferred income tax assets 868 1,385 Deferred income tax liabilities Deferred acquisition costs 431 695 Net unrealized gains on Available-for-Sale securities 150 251 Deferred sales inducement costs 62 113 Depreciation 13 23 Other 1 — Gross deferred income tax liabilities 657 1,082 Net deferred income tax assets $ 211 $ 303 Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $9 million , net of federal benefit, which will expire beginning December 31, 2018 . Based on analysis of the Company’s tax position, management believes it is more likely than not that the Company will not realize certain state deferred tax assets, primarily state net operating losses and therefore a valuation allowance of $11 million has been established. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows: 2017 2016 2015 (in millions) Balance at January 1 $ 59 $ 95 $ 160 Additions based on tax positions related to the current year 5 6 11 Additions for tax positions of prior years — 31 29 Reductions for tax positions of prior years (50 ) (68 ) (105 ) Settlements — (5 ) — Balance at December 31 $ 14 $ 59 $ 95 If recognized, approximately $5 million , $6 million and $9 million , net of federal tax benefits, of unrecognized tax benefits as of December 31, 2017 , 2016 and 2015 , respectively, would affect the effective tax rate. It is reasonably possible that the total amounts of unrecognized tax benefits will change in the next 12 months. Based on the current audit position of the Company, it is estimated that the total amount of gross unrecognized tax benefits may decrease by $9 million to $10 million in the next 12 months due to Internal Revenue Service (“IRS”) settlements and state exams. 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 $1 million , a net decrease of $39 million , and a net increase of $1 million in interest and penalties for the years ended December 31, 2017 , 2016 and 2015 , respectively. As of December 31, 2017 and 2016 , the Company had a payable of $1 million and $2 million , respectively, related to accrued interest and penalties. The Company or one or more of its subsidiaries files income tax returns as part of its inclusion in the consolidated federal income tax returns of Ameriprise Financial in the U.S. federal jurisdiction and various state jurisdictions. In the third quarter of 2017, the Company received final cash settlements for resolution of the 2006 and 2011 audits. The IRS has completed its examination of the 2008 through 2010 tax returns, and these years are effectively settled; however, the statutes of limitation, remain open for certain carryover adjustments. The IRS is currently auditing the Company’s U.S. income tax returns for 2012 through 2015. The Company’s or certain of its subsidiaries’ state income tax returns are currently under examination by various jurisdictions for years ranging from 2011 through 2015. |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Guarantees and Contingencies [Text Block] | Commitments, Guarantees and Contingencies Commitments The following table presents the Company’s funding commitments as of December 31: 2017 2016 (in millions) Commercial mortgage loans $ 31 $ 68 Residential mortgage loans — 185 Affordable housing and other real estate partnerships 123 177 Total funding commitments $ 154 $ 430 The decrease in residential mortgage loan funding commitments as of December 31, 2017 compared to the prior year is primarily due to the sale of loans. See Note 6 for additional information. Guarantees The Company’s annuity and life products all have minimum interest rate guarantees in their fixed accounts. As of December 31, 2017 , these guarantees range from 1% to 5% . Contingencies RiverSource Life Insurance Company and RiverSource Life of NY are required by law to be a member of the guaranty fund association in every state where they are licensed to do business. In the event of insolvency of one or more unaffiliated insurance companies, the Company could be adversely affected by the requirement to pay assessments to the guaranty fund associations. The Company projects its cost of future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and Health Insurance Guaranty Associations (“NOLHGA”) and the amount of its premiums written relative to the industry-wide premium in each state. The Company accrues the estimated cost of future guaranty fund assessments when it is considered probable that an assessment will be imposed, the event obligating the Company to pay the assessment has occurred and the amount of the assessment can be reasonably estimated. The Company has a liability for estimated guaranty fund assessments and a related premium tax asset. As of December 31, 2017 and 2016 , the estimated liability was $14 million and $16 million , respectively, and the related premium tax asset was $12 million and $14 million , respectively. The expected period over which guaranty fund assessments will be made and the related tax credits recovered is not known. Insurance companies have been the subject of increasing regulatory, legislative and judicial scrutiny. Numerous state and federal regulatory agencies have commenced examinations and other inquiries of insurance companies regarding sales and marketing practices (including sales to older consumers and disclosure practices), claims handling, and unclaimed property and escheatment practices and procedures. The Company has cooperated and will continue to cooperate with the applicable regulators. The Company is involved in the normal course of business in a number of other legal and arbitration proceedings concerning matters arising in connection with the conduct of its business activities. The Company believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory investigation, examination or proceeding that is likely to have a material adverse effect on its consolidated financial condition, results of operations or liquidity. Notwithstanding the foregoing, it is possible that the outcome of any current or future legal, arbitration or regulatory proceeding could have a material impact on results of operations in any particular reporting period as the proceedings are resolved. 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. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation [Policy Text Block] | Principles of Consolidation A variable interest entity (“VIE”) is an entity that either has equity investors that lack certain essential characteristics of a controlling financial interest (including substantive voting rights, the obligation to absorb the entity’s losses, or the rights to receive the entity’s returns) or has equity investors that do not provide sufficient financial resources for the entity to support its activities. Voting interest entities (“VOEs”) are those entities that do not qualify as a VIE. The Company consolidates VOEs in which it holds a greater than 50% voting interest. The Company generally accounts for entities using the equity method when it holds a greater than 20% but less than 50% voting interest or when the Company exercises significant influence over the entity. All other investments that are not reported at fair value as trading or Available-for-Sale securities are accounted for under the cost method when the Company owns less than a 20% voting interest and does not exercise significant influence. A VIE is consolidated by the reporting entity that determines it has both: • the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and • the obligation to absorb potentially significant losses or the right to receive potentially significant benefits to the VIE. All VIEs are assessed for consolidation under this framework. When evaluating entities for consolidation, the Company considers its contractual rights in determining whether it has the power to direct the activities of the VIE that most significantly impact the VIEs economic performance. In determining whether the Company has this power, it considers whether it is acting in a role that enables it to direct the activities that most significantly impact the economic performance of an entity or if it is acting in an agent role. In determining whether the Company has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Company considers an analysis of its rights to receive benefits such as investment returns and its obligation to absorb losses associated with any investment in the VIE in conjunction with other qualitative factors. Management and incentive fees that are at market and commensurate with the level of services provided, and where the Company does not hold other interests in the VIE that would absorb more than an insignificant amount of the VIE’s expected losses or receive more than an insignificant amount of the VIE’s expected residual returns, are not considered a variable interest and are excluded from the analysis. The consolidation guidance has a scope exception for reporting entities with interests in registered money market funds which do not have an explicit support agreement. |
Amounts Based on Estimates and Assumptions [Policy Text Block] | Amounts Based on Estimates and Assumptions Accounting estimates are an integral part of the Consolidated Financial Statements. In part, they are based upon assumptions concerning future events. Among the more significant are those that relate to investment securities valuation and recognition of other-than-temporary impairments, DAC and the corresponding recognition of DAC amortization, valuation of derivative instruments and hedging activities, claims reserves and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ. |
Investments [Policy Text Block] | Investments Available-for-Sale Securities Available-for-Sale securities are carried at fair value with unrealized gains (losses) recorded in accumulated other comprehensive income (“AOCI”), net of impacts to DAC, deferred sales inducement costs (“DSIC”), unearned revenue, benefit reserves, reinsurance recoverables and income taxes. Gains and losses are recognized on a trade date basis in the Consolidated Statements of Income upon disposition of the securities. When the fair value of an investment is less than its amortized cost, the Company assesses whether or not: (i) it has the intent to sell the security (made a decision to sell) or (ii) it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If either of these conditions exist, an other-than-temporary impairment is considered to have occurred and the Company recognizes an other-than-temporary impairment for the difference between the investment’s amortized cost and its fair value through earnings. For securities that do not meet the above criteria and the Company does not expect to recover a security’s amortized cost, the security is also considered other-than-temporarily impaired. For these securities, the Company separates the total impairment into the credit loss component and the amount of the loss related to other factors. The amount of the total other-than-temporary impairment related to credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to other factors is recognized in other comprehensive income (“OCI”), net of impacts to DAC, DSIC, unearned revenue, benefit reserves, reinsurance recoverables and income taxes. For Available-for-Sale securities that have recognized an other-than-temporary impairment through earnings, the difference between the amortized cost and the cash flows expected to be collected is accreted as interest income if through subsequent evaluation there is a sustained increase in the cash flow expected. Subsequent increases and decreases in the fair value of Available-for-Sale securities are included in OCI. The Company provides a supplemental disclosure on the face of its Consolidated Statements of Income that presents: (i) total other-than-temporary impairment losses recognized during the period and (ii) the portion of other-than-temporary impairment losses recognized in OCI. The sum of these amounts represents the credit-related portion of other-than-temporary impairments that were recognized in earnings during the period. The portion of other-than-temporary losses recognized in OCI includes: (i) the portion of other-than-temporary impairment losses related to factors other than credit recognized during the period and (ii) reclassifications of other-than-temporary impairment losses previously determined to be related to factors other than credit that are determined to be credit-related in the current period. The amount presented on the Consolidated Statements of Income as the portion of other-than-temporary losses recognized in OCI excludes subsequent increases and decreases in the fair value of these securities. For all securities that are considered temporarily impaired, the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. The Company believes that it will collect all principal and interest due on all investments that have amortized cost in excess of fair value that are considered only temporarily impaired. Factors the Company considers in determining whether declines in the fair value of fixed maturity securities are other-than-temporary include: (i) the extent to which the market value is below amortized cost; (ii) the duration of time in which there has been a significant decline in value; (iii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iv) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors. In order to determine the amount of the credit loss component for corporate debt securities considered other-than-temporarily impaired, a best estimate of the present value of cash flows expected to be collected discounted at the security’s effective interest rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and the Company’s position in the debtor’s overall capital structure. For structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities and asset backed securities), the Company also considers factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections in assessing potential other-than-temporary impairments of these investments. Based upon these factors, securities that have indicators of potential other-than-temporary impairment are subject to detailed review by management. Securities for which declines are considered temporary continue to be monitored by management until management determines there is no current risk of an other-than-temporary impairment. Other Investments Other investments primarily reflect the Company’s interests in affordable housing partnerships and syndicated loans which represent investments in below investment grade loan syndications. Affordable housing partnerships are accounted for under the equity method. |
Financing Receivables [Policy Text Block] | Financing Receivables Mortgage Loans and Syndicated Loans Mortgage loans, net reflect the Company’s interest in commercial mortgage loans less the related allowance for loan losses and, as of December 31, 2016, residential mortgage loans. Mortgage loans and syndicated loans are stated at amortized cost, net of allowances for loan losses. Interest income is accrued on the unpaid principal balances of the loans as earned. Policy Loans Policy loans include life insurance policy and annuity loans and are reported at the unpaid principal balance, plus accrued interest. When originated, policy loan balances do not exceed the cash surrender value of the underlying products. As there is minimal risk of loss related to these loans, the Company does not record an allowance for loan losses for policy loans. Nonaccrual Loans Generally, loans are evaluated for or placed on nonaccrual status when either the collection of interest or principal has become 90 days past due or is otherwise considered doubtful of collection. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Interest payments received on loans on nonaccrual status are generally applied to principal unless the remaining principal balance has been determined to be fully collectible. Commercial mortgage loans are evaluated for impairment when the loan is considered for nonaccrual status, restructured or foreclosure proceedings are initiated on the property. If it is determined that the fair value is less than the current loan balance, it is written down to fair value less estimated selling costs. Residential mortgage loans are impaired when management determines the assets are uncollectible and commences foreclosure proceedings on the property, at which time the property is written down to fair value less selling costs. Foreclosed property is recorded as real estate owned in other investments. Syndicated loans are placed on nonaccrual status when management determines it will not collect all contractual principal and interest on the loan. Allowance for Loan Losses Management determines the adequacy of the allowance for loan losses based on the overall loan portfolio composition, recent and historical loss experience, and other pertinent factors, including when applicable, internal risk ratings, loan-to-value (“LTV”) ratios, FICO scores of the borrower, debt service coverage and occupancy rates, along with economic and market conditions. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change. The Company determines the amount of the allowance based on management’s assessment of relative risk characteristics of the loan portfolio. The allowance is recorded for homogeneous loan categories on a pool basis, based on an analysis of product mix and risk characteristics of the portfolio, including geographic concentration, bankruptcy experiences, and historical losses, adjusted for current trends and market conditions. While the Company attributes portions of the allowance to specific loan pools as part of the allowance estimation process, the entire allowance is available to absorb losses inherent in the total loan portfolio. The allowance is increased through provisions charged to net realized investment gains (losses) and reduced/increased by net charge-offs/recoveries. Impaired Loans The Company considers a loan to be impaired when, based on current information and events, it is probable the Company will not be able to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. Impaired loans may also include loans that have been modified in troubled debt restructurings as a concession to borrowers experiencing financial difficulties. Management evaluates for impairment all restructured loans and loans with higher impairment risk factors. Factors used by the Company to determine whether all amounts due on commercial mortgage loans will be collected, include but are not limited to, the financial condition of the borrower, performance of the underlying properties, collateral and/or guarantees on the loan, and the borrower’s estimated future ability to pay based on property type and geographic location. The impairment recognized is measured as the excess of the loan’s recorded investment over: (i) the present value of its expected principal and interest payments discounted at the loan’s effective interest rate, (ii) the fair value of collateral or (iii) the loan’s observable market price. Restructured Loans A loan is classified as a restructured loan when the Company makes certain concessionary modifications to contractual terms for borrowers experiencing financial difficulties. When the interest rate, minimum payments, and/or due dates have been modified in an attempt to make the loan more affordable to a borrower experiencing financial difficulties, the modification is considered a troubled debt restructuring. Generally, performance prior to the restructuring or significant events that coincide with the restructuring are considered in assessing whether the borrower can meet the new terms which may result in the loan being returned to accrual status at the time of the restructuring or after a performance period. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status. |
Cash and Cash Equivalents [Policy Text Block] | 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 [Policy Text Block] | Reinsurance The Company cedes insurance risk to other insurers under reinsurance agreements. 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. Reinsurance premiums paid and benefits received are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Reinsurance premiums for traditional life, LTC and DI, net of the change in any prepaid reinsurance asset, are reported as a reduction of premiums. 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 or contra asset and amortized over the estimated life of the policies in proportion to the estimated gross profits (“EGPs”) and is subject to retrospective adjustment in a manner similar to retrospective adjustment of DAC. The assumptions used to project the expected cash flows are consistent with those used for DAC valuation for the same contracts. Changes in the net cost of reinsurance are reflected as a component of policy and contract charges. Reinsurance recoveries are reported as components of benefits, claims, losses and settlement expenses. Insurance liabilities are reported before the effects of reinsurance. Policyholder account balances, future policy benefits and claims recoverable under reinsurance contracts are recorded as reinsurance recoverables. The Company also assumes life insurance and fixed annuity risk from other insurers in limited circumstances. Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Liabilities for assumed business are recorded within policyholder account balances, future policy benefits and claims. See Note 8 for additional information on reinsurance. |
Land, Buildings, Equipment and Software [Policy Text Block] | Land , Buildings, Equipment and Software Land, buildings, equipment and internally developed or purchased software are carried at cost less accumulated depreciation or amortization and are reflected within other assets. The Company uses the straight-line method of depreciation and amortization over periods ranging from three to 30 years. As of December 31, 2017 and 2016 , land, buildings, equipment and software were $ 142 million and $ 148 million , respectively, net of accumulated depreciation of $ 159 million and $ 144 million , respectively. Depreciation and amortization expense for the years ended December 31, 2017 , 2016 and 2015 was $ 15 million , $ 14 million and $ 15 million , respectively. |
Derivative Instruments and Hedging Activities [Policy Text Block] | Derivative Instruments and Hedging Activities Freestanding derivative instruments are recorded at fair value and are reflected in other assets or other liabilities. The Company’s policy is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. The Company primarily uses derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. The Company occasionally designates derivatives as (i) hedges of changes in the fair value of assets, liabilities, or firm commitments (“fair value hedges”) or (ii) hedges of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedges”). Derivative instruments that are entered into for hedging purposes are designated as such at the time the Company enters into the contract. For all derivative instruments that are designated for hedging activities, the Company 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 Consolidated Statements of Income based on the nature and use of the instrument. Changes in fair value of derivatives used as economic hedges are presented in the Consolidated Statements of Income with the corresponding change in the hedged asset or liability. For derivative instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as changes in the fair value of the hedged assets, liabilities or firm commitments, are recognized on a net basis in current period earnings. The carrying value of the hedged item is adjusted for the change in fair value from the designated hedged risk. If a fair value hedge designation is removed or the hedge is terminated prior to maturity, previous adjustments to the carrying value of the hedged item are recognized into earnings over the remaining life of the hedged item. The equity component of indexed annuities and IUL obligations are considered embedded derivatives. Additionally, certain annuities contain GMAB and GMWB provisions. The GMAB and the non-life contingent benefits associated with GMWB provisions are also considered embedded derivatives. See Note 13 for information regarding the Company’s fair value measurement of derivative instruments and Note 17 for the impact of derivatives on the Consolidated Statements of Income. |
Deferred Acquisition Costs [Policy Text Block] | 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 AFSI 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 contract terminations. These transactions are anticipated in establishing amortization periods and other valuation assumptions. The Company monitors other DAC amortization assumptions, such as persistency, mortality, morbidity, interest margin, variable annuity benefit utilization and maintenance expense levels each quarter and, when assessed independently, each could impact the Company’s DAC balances. The analysis of DAC balances and the corresponding amortization is a dynamic process that considers all relevant factors and assumptions described previously. Unless the Company’s management identifies a significant deviation over the course of the quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year. Non-Traditional Long-Duration Products For non-traditional long-duration products (including variable and fixed deferred annuity contracts, UL and VUL insurance products), DAC are amortized based on projections of EGPs over amortization periods equal to the approximate life of the business. EGPs vary based on persistency rates (assumptions at which contractholders and policyholders are expected to surrender, make withdrawals from and make deposits to their contracts), mortality levels, client asset value growth rates (based on equity and bond market performance), variable annuity benefit utilization and interest margins (the spread between earned rates on invested assets and rates credited to contractholder and policyholder accounts) and are management’s best estimates. Management regularly monitors financial market conditions and actual contractholder and policyholder behavior experience and compares them to its assumptions. These assumptions are updated whenever it appears that earlier estimates should be revised. When assumptions are changed, the percentage of EGPs used to amortize DAC might also change. A change in the required amortization percentage is applied retrospectively; an increase in amortization percentage will result in a decrease in the DAC balance and an increase in DAC amortization expense, while a decrease in amortization percentage will result in an increase in the DAC balance and a decrease in DAC amortization expense. The impact on results of operations of changing assumptions can be either positive or negative in any particular period and is reflected in the period in which such changes are made. At each balance sheet date, the DAC balance is adjusted for the effect that would result from the realization of unrealized gains or losses impacting EGPs, with the related change recognized through AOCI. The client asset value growth rates are the rates at which variable annuity and VUL insurance contract values invested in separate accounts are assumed to appreciate in the future. The rates used vary by equity and fixed income investments. Management reviews and, where appropriate, adjusts its assumptions with respect to client asset value growth rates on a regular basis. The Company typically uses a five-year mean reversion process as a guideline in setting near-term equity fund growth rates based on a long-term view of financial market performance as well as recent actual performance. The suggested near-term equity fund growth rate is reviewed quarterly to ensure consistency with management’s assessment of anticipated equity market performance. DAC amortization expense recorded in a period when client asset value growth rates exceed management’s near-term estimate will typically be less than in a period when growth rates fall short of management’s near-term estimate. Traditional Long-Duration Products For traditional long-duration products (including traditional life and DI insurance products), DAC are generally amortized as a percentage of premiums over amortization periods equal to the premium paying period. The assumptions made in calculating the DAC balance and DAC amortization expense are consistent with those used in determining the liabilities. For traditional life and DI insurance products, the assumptions provide for adverse deviations in experience and are revised only if management concludes experience will be so adverse that DAC are not recoverable. If management concludes that DAC are not recoverable, DAC are reduced to the amount that is recoverable based on best estimate assumptions and there is a corresponding expense recorded in the Consolidated Statements of Income. |
Deferred Sales Inducement Costs [Policy Text Block] | Deferred Sales Inducement Costs Sales inducement costs consist of bonus interest credits and premium credits added to certain annuity contract and insurance policy values. These benefits are capitalized to the extent they are incremental to amounts that would be credited on similar contracts without the applicable feature. The amounts capitalized are amortized using the same methodology and assumptions used to amortize DAC. DSIC is recorded in other assets, and amortization of DSIC is recorded in benefits, claims, losses and settlement expenses. |
Separate Account Assets and Liabilities [Policy Text Block] | Separate Account Assets and Liabilities Separate account assets and liabilities are primarily funds held for the benefit of 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 Consolidated Statements of Income. Separate account assets are recorded at fair value. Changes in the fair value of separate account assets are offset by changes in the related separate account liabilities. |
Policyholder Account Balances, Future Policy Benefits and Claims [Policy Text Block] | Policyholder Account Balances, Future Policy Benefits and Claims The Company establishes reserves to cover the risks associated with non-traditional and traditional long-duration products. Reserves for non-traditional long-duration products include the liabilities related to guaranteed benefit provisions added to variable annuity contracts, variable and fixed annuity contracts and UL and VUL policies and the embedded derivatives related to variable annuity contracts, indexed annuities and IUL insurance. Reserves for traditional long-duration products are established to provide adequately for future benefits and expenses for term life, whole life, DI and LTC insurance products. Changes in future policy benefits and claims are reflected in earnings in the period adjustments are made. Where applicable, benefit amounts expected to be recoverable from reinsurance companies who share in the risk are separately recorded as reinsurance recoverable within receivables. 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, liabilities for guaranteed benefits associated with variable annuities and embedded derivatives for variable annuities, indexed annuities and 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. 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 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 indexed annuity products and indexed accounts of IUL products are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options. The GMDB and gain gross-up (“GGU”) liability is determined by estimating the expected value of death benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees). If elected by the contract owner and after a stipulated waiting period from contract issuance, a guaranteed minimum income benefit (“GMIB”) guarantees a minimum lifetime annuity based on a specified rate of contract accumulation value growth and predetermined annuity purchase rates. The GMIB liability is determined each period by estimating the expected value of annuitization benefits in excess of the projected contract accumulation value at the date of annuitization and recognizing the excess over the estimated life based on expected assessments. The liability for the life contingent benefits associated with GMWB provisions is determined by estimating the expected value of benefits that are contingent upon survival after the account value is equal to zero and recognizing the benefits over the estimated life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees). In determining the liabilities for GMDB, GGU, GMIB and the life contingent benefits associated with GMWB, the Company projects these benefits and contract assessments using actuarial models to simulate various equity market scenarios. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency, benefit utilization and investment margins and are consistent with those used for DAC valuation for the same contracts. As with DAC, management reviews and, where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year. See Note 10 for information regarding variable annuity guarantees. The fair value of embedded derivatives related to GMAB and the non-life contingent benefits associated with GMWB provisions, indexed annuities and IUL fluctuate based on equity, interest rate and credit markets and the estimate of the Company’s nonperformance risk, which can cause these embedded derivatives to be either an asset or a liability. See Note 13 for information regarding the fair value measurement of embedded derivatives. Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates. Traditional Long-Duration Products The liabilities for traditional long-duration products include liabilities for unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that will become payable on term life, whole life, DI and LTC policies as claims are incurred in the future. Liabilities for unpaid amounts on reported life insurance claims are equal to the death benefits payable under the policies. Liabilities for unpaid amounts on reported DI and LTC claims include any periodic or other benefit amounts due and accrued, along with estimates of the present value of obligations for continuing benefit payments. These unpaid amounts are calculated using anticipated claim continuance rates based on established industry tables, adjusted as appropriate for the Company’s experience. The discount rates used to calculate present values are based on average interest rates earned on assets supporting the liability for unpaid amounts. Liabilities for estimated benefits payable on claims that have been incurred but not yet reported are based on periodic analysis of the actual time lag between when a claim occurs and when it is reported. Liabilities for estimates of benefits that will become payable on future claims on term life, whole life and DI insurance policies are based on the net level premium and LTC policies are based on a gross premium valuation reflecting management’s current best estimate assumptions. Both include anticipated premium payments, mortality and morbidity rates, policy persistency and interest rates earned on assets supporting the liability. Anticipated mortality and morbidity rates are based on established industry mortality and morbidity tables, with modifications based on the Company’s experience. Anticipated premium payments and persistency rates vary by policy form, issue age, policy duration and certain other pricing factors. For term life, whole life, DI and LTC policies, the Company utilizes best estimate assumptions as of the date the policy is issued with provisions for the risk of adverse deviation, as appropriate. After the liabilities are initially established, management performs premium deficiency tests using best estimate assumptions without provisions for adverse deviation annually in the third quarter of each year unless management identifies a material deviation over the course of quarterly monitoring. If the liabilities determined based on these best estimate assumptions are greater than the net reserves (i.e., GAAP reserves net of any DAC balance), the existing net reserves are adjusted by first reducing the DAC balance by the amount of the deficiency or to zero through a charge to current period earnings. If the deficiency is more than the DAC balance, then the net reserves are increased by the excess through a charge to current period earnings. If a premium deficiency is recognized, the assumptions as of the date of the loss recognition are locked in and used in subsequent periods. The assumptions for LTC insurance products are management’s best estimate as of the date of loss recognition and thus no longer provide for adverse deviations in experience. See Note 9 for information regarding the liabilities for traditional long-duration products. |
Unearned Revenue Liability [Policy Text Block] | 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 using EGPs, similar to DAC. The unearned revenue liability is recorded in other liabilities and the amortization is recorded in policy and contract charges. |
Income Taxes [Policy Text Block] | 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 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 Consolidated Financial Statements reflect certain amounts related to deferred tax assets and liabilities, which result from temporary differences between the assets and liabilities measured for financial statement purposes versus the assets and liabilities measured for tax return purposes. 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. See Note 19 for further discussion on the enactment of the legislation commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”) and the impact to the Company’s provision for income taxes for the year ended December 31, 2017. |
Revenue Recognition [Policy Text Block] | Revenue Recognition Premiums on traditional life, DI and LTC insurance products and immediate annuities with a life contingent feature 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. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-Sale Securities by Type [Table Text Block] | Available-for-Sale securities distributed by type were as follows: Description of Securities December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Noncredit (in millions) Fixed maturities: Corporate debt securities $ 12,133 $ 1,125 $ (25 ) $ 13,233 $ — Residential mortgage backed securities 2,979 54 (22 ) 3,011 — Commercial mortgage backed securities 3,554 47 (32 ) 3,569 — State and municipal obligations 1,114 209 (9 ) 1,314 — Asset backed securities 700 30 (2 ) 728 — Foreign government bonds and obligations 283 20 (4 ) 299 — U.S. government and agency obligations 1 — — 1 — Total fixed maturities 20,764 1,485 (94 ) 22,155 — Common stocks 1 — (1 ) — — Total $ 20,765 $ 1,485 $ (95 ) $ 22,155 $ — Description of Securities December 31, 2016 Amortized Cost Gross Gross Fair Noncredit (1) (in millions) Fixed maturities: Corporate debt securities $ 13,105 $ 1,060 $ (53 ) $ 14,112 $ — Residential mortgage backed securities 3,386 72 (43 ) 3,415 (4 ) Commercial mortgage backed securities 2,837 58 (38 ) 2,857 — State and municipal obligations 1,092 161 (24 ) 1,229 — Asset backed securities 790 26 (11 ) 805 — Foreign government bonds and obligations 251 17 (7 ) 261 — U.S. government and agency obligations 3 — — 3 — Total fixed maturities 21,464 1,394 (176 ) 22,682 (4 ) Common stocks 4 6 — 10 3 Total $ 21,468 $ 1,400 $ (176 ) $ 22,692 $ (1 ) (1) Represents the amount of other-than-temporary impairment (“OTTI”) losses in AOCI. Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period. |
Fixed Maturity Securities by Rating Disclosure [Table Text Block] | A summary of fixed maturity securities by rating was as follows: Ratings December 31, 2017 December 31, 2016 Amortized Cost Fair Percent of Amortized Fair Percent of (in millions, except percentages) AAA $ 6,259 $ 6,303 28 % $ 5,671 $ 5,728 25 % AA 1,090 1,285 6 1,013 1,177 5 A 3,443 3,902 18 3,767 4,167 19 BBB 8,796 9,465 43 9,584 10,190 45 Below investment grade 1,176 1,200 5 1,429 1,420 6 Total fixed maturities $ 20,764 $ 22,155 100 % $ 21,464 $ 22,682 100 % |
Available-for-Sale Securities Continuous Unrealized Loss Disclosure [Table Text Block] | The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position: Description of Securities December 31, 2017 Less than 12 months 12 months or more Total Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized (in millions, except number of securities) Corporate debt securities 82 $ 834 $ (5 ) 39 $ 360 $ (20 ) 121 $ 1,194 $ (25 ) Residential mortgage backed securities 36 546 (4 ) 41 657 (18 ) 77 1,203 (22 ) Commercial mortgage backed securities 56 994 (10 ) 42 663 (22 ) 98 1,657 (32 ) State and municipal obligations 19 35 — 8 138 (9 ) 27 173 (9 ) Asset backed securities 15 116 — 12 76 (2 ) 27 192 (2 ) Foreign government bonds and obligations 3 6 — 15 23 (4 ) 18 29 (4 ) Common stocks — — — 3 1 (1 ) 3 1 (1 ) Total 211 $ 2,531 $ (19 ) 160 $ 1,918 $ (76 ) 371 $ 4,449 $ (95 ) Description of Securities December 31, 2016 Less than 12 months 12 months or more Total Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized (in millions, except number of securities) Corporate debt securities 114 $ 1,502 $ (26 ) 33 $ 319 $ (27 ) 147 $ 1,821 $ (53 ) Residential mortgage backed securities 56 1,282 (25 ) 56 324 (18 ) 112 1,606 (43 ) Commercial mortgage backed securities 80 1,378 (37 ) 1 11 (1 ) 81 1,389 (38 ) State and municipal obligations 18 66 (3 ) 2 105 (21 ) 20 171 (24 ) Asset backed securities 23 231 (6 ) 12 114 (5 ) 35 345 (11 ) Foreign government bonds and obligations 7 30 (1 ) 15 23 (6 ) 22 53 (7 ) Total 298 $ 4,489 $ (98 ) 119 $ 896 $ (78 ) 417 $ 5,385 $ (176 ) |
Credit Losses on Available-for-Sale Securities Disclosure [Table Text Block] | The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Income for other-than-temporary impairments related to credit losses on Available-for-Sale securities for which a portion of the securities’ total other-than-temporary impairments was recognized in OCI: December 31, 2017 2016 2015 (in millions) Beginning balance $ 21 $ 33 $ 33 Reductions for securities sold during the period (realized) (21 ) (12 ) — Ending balance $ — $ 21 $ 33 |
Available-for-Sale Securities Recognized in Earnings Disclosure [Table Text Block] | 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, 2017 2016 2015 (in millions) Gross realized investment gains $ 48 $ 29 $ 30 Gross realized investment losses (4 ) (12 ) (17 ) Other-than-temporary impairments — — (7 ) Total $ 44 $ 17 $ 6 |
Available-for-Sale Securities Contractual Maturity Disclosure [Table Text Block] | Available-for-Sale securities by contractual maturity as of December 31, 2017 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 1,288 $ 1,305 Due after one year through five years 5,481 5,685 Due after five years through 10 years 3,039 3,154 Due after 10 years 3,723 4,703 13,531 14,847 Residential mortgage backed securities 2,979 3,011 Commercial mortgage backed securities 3,554 3,569 Asset backed securities 700 728 Common stocks 1 — Total $ 20,765 $ 22,155 |
Schedule of Net Investment Income [Table Text Block] | The following is a summary of net investment income: Years Ended December 31, 2017 2016 2015 (in millions) Fixed maturities $ 947 $ 997 $ 1,034 Mortgage loans 137 149 177 Other investments (48 ) 8 33 1,036 1,154 1,244 Less: investment expenses 25 26 26 Total $ 1,011 $ 1,128 $ 1,218 |
Net Realized Investment Gains (Losses) [Table Text Block] | Net realized investment gains (losses) are summarized as follows: Years Ended December 31, 2017 2016 2015 (in millions) Fixed maturities $ 44 $ 17 $ 6 Mortgage loans (4 ) 10 — Other investments — (1 ) (2 ) Total $ 40 $ 26 $ 4 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Rollforward of the Allowance for Loan Losses [Table Text Block] | The following table presents a rollforward of the allowance for loan losses for the years ended and the ending balance of the allowance for loan losses by impairment method: December 31, 2017 2016 2015 (in millions) Beginning balance $ 25 $ 25 $ 28 Charge-offs (3 ) (3 ) (4 ) Provisions — 3 1 Ending balance $ 22 $ 25 $ 25 Individually evaluated for impairment $ — $ 2 $ 4 Collectively evaluated for impairment 22 23 21 |
Schedule of Financing Receivables by Impairment Method and Type of Loan [Table Text Block] | The recorded investment in financing receivables by impairment method was as follows: December 31, 2017 2016 (in millions) Individually evaluated for impairment $ 17 $ 10 Collectively evaluated for impairment 3,015 3,275 Total $ 3,032 $ 3,285 |
Schedule of Commercial Mortgage Loans by Geographic Region [Table Text Block] | Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows: Loans Percentage December 31, 2017 December 31, December 31, 2017 December 31, (in millions) South Atlantic $ 735 $ 753 28 % 29 % Pacific 771 722 29 28 Mountain 242 234 9 9 West North Central 223 212 8 8 East North Central 209 195 8 8 Middle Atlantic 179 191 7 7 West South Central 125 122 5 5 New England 67 84 3 3 East South Central 84 80 3 3 2,635 2,593 100 % 100 % Less: allowance for loan losses 16 19 Total $ 2,619 $ 2,574 |
Schedule of Commercial Mortgage Loans by Property Type [Table Text Block] | Concentrations of credit risk of commercial mortgage loans by property type were as follows: Loans Percentage December 31, 2017 December 31, December 31, 2017 December 31, (in millions) Retail $ 893 $ 916 34 % 35 % Office 470 473 18 18 Apartments 536 483 20 19 Industrial 451 430 17 17 Mixed use 38 42 1 2 Hotel 39 41 2 1 Other 208 208 8 8 2,635 2,593 100 % 100 % Less: allowance for loan losses 16 19 Total $ 2,619 $ 2,574 |
Deferred Acquisition Costs an31
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Charges, Insurers [Abstract] | |
Schedule of balances of and changes in DAC [Table Text Block] | The balances of and changes in DAC were as follows: 2017 2016 2015 (in millions) Balance at January 1 $ 2,611 $ 2,693 $ 2,581 Capitalization of acquisition costs 242 279 (1) 275 Amortization, excluding the impact of valuation assumptions review (219 ) (253 ) (267 ) Amortization, impact of valuation assumptions review 12 (81 ) (2) (6 ) Impact of change in net unrealized securities (gains) losses (7 ) (27 ) 110 Balance at December 31 $ 2,639 $ 2,611 $ 2,693 (1) Includes a $27 million benefit related to the write-off of the deferred reinsurance liability in connection with the loss recognition on LTC business. The benefit was reported in other insurance and operating expenses on the Consolidated Statements of Income. (2) Includes a $58 million expense related to the loss recognition on LTC business. |
Schedule of balances of and changes in DSIC [Table Text Block] | The balances of and changes in DSIC, which is included in other assets, were as follows: 2017 2016 2015 (in millions) Balance at January 1 $ 301 $ 334 $ 361 Capitalization of sales inducement costs 4 5 4 Amortization, excluding the impact of valuation assumptions review (37 ) (42 ) (52 ) Amortization, impact of valuation assumptions review (1 ) 4 1 Impact of change in net unrealized securities (gains) losses 6 — 20 Balance at December 31 $ 273 $ 301 $ 334 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Schedule of effect of reinsurance on premiums [Table Text Block] | The effect of reinsurance on premiums for traditional long-duration products was as follows: Years Ended December 31, 2017 2016 2015 (in millions) Direct premiums $ 637 $ 642 $ 629 Reinsurance ceded (227 ) (225 ) (223 ) Net premiums $ 410 $ 417 $ 406 |
Policyholder Account Balances33
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities [Abstract] | |
Policyholder Account Balances, Future Policy Benefits and Unpaid Claims Disclosure [Table Text Block] | Policyholder account balances, future policy benefits and claims consisted of the following: December 31, 2017 2016 (in millions) Policyholder account balances Fixed annuities (1) $ 9,934 $ 10,588 Variable annuity fixed sub-accounts 5,166 5,211 VUL/UL insurance 3,047 3,007 IUL insurance 1,384 1,054 Other life insurance 720 758 Total policyholder account balances 20,251 20,618 Future policy benefits Variable annuity GMWB 463 1,017 Variable annuity GMAB (80 ) (2) (24 ) (2) Other annuity liabilities 78 66 Fixed annuity life contingent liabilities 1,484 1,497 Life and DI insurance 1,221 1,204 LTC insurance 4,896 4,352 VUL/UL and other life insurance additional liabilities 688 588 Total future policy benefits 8,750 8,700 Policy claims and other policyholders’ funds 177 196 Total policyholder account balances, future policy benefits and claims $ 29,178 $ 29,514 (1) Includes fixed deferred annuities, non-life contingent fixed payout annuities and indexed annuity host contracts. (2) Includes the fair value of GMAB embedded derivatives that was a net asset as of both December 31, 2017 and 2016 reported as a contra liability. |
Schedule of Separate Account Liabilities by Policy Type [Table Text Block] | Separate account liabilities consisted of the following: December 31, 2017 2016 (in millions) Variable annuity $ 75,174 $ 69,606 VUL insurance 7,352 6,659 Other insurance 34 33 Total $ 82,560 $ 76,298 |
Variable Annuity and Insuranc34
Variable Annuity and Insurance Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Schedule of Variable Annuity Guarantees [Table Text Block] | The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities: Variable Annuity Guarantees by Benefit Type (1) December 31, 2017 December 31, 2016 Total Contract Net Weighted Average Attained Age Total Contract Net Weighted Average Attained Age (in millions, except age) GMDB: Return of premium $ 61,418 $ 59,461 $ 9 66 $ 56,143 $ 54,145 $ 208 65 Five/six-year reset 8,870 6,149 12 66 8,878 6,170 22 66 One-year ratchet 6,548 6,187 11 69 6,426 6,050 110 68 Five-year ratchet 1,563 1,506 1 65 1,542 1,483 7 64 Other 1,099 1,075 50 72 965 942 86 71 Total — GMDB $ 79,498 $ 74,378 $ 83 66 $ 73,954 $ 68,790 $ 433 65 GGU death benefit $ 1,118 $ 1,067 $ 133 70 $ 1,047 $ 996 $ 108 68 GMIB $ 233 $ 216 $ 7 69 $ 245 $ 227 $ 13 68 GMWB: GMWB $ 2,508 $ 2,500 $ 1 71 $ 2,650 $ 2,642 $ 2 70 GMWB for life 44,375 44,259 129 67 39,436 39,282 289 (2) 66 Total — GMWB $ 46,883 $ 46,759 $ 130 67 $ 42,086 $ 41,924 $ 291 66 GMAB $ 3,086 $ 3,083 $ — 59 $ 3,484 $ 3,476 $ 21 59 (1) Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table. (2) Amount revised to reflect updated contractholder mortality assumptions as of December 31, 2016. |
Schedule Of Net Amount Of Risk UL Secondary Guarantees [Table Text Block] | The following table provides information related to insurance guarantees for which the Company has established additional liabilities: December 31, 2017 December 31, 2016 Net Amount at Risk Weighted Average Attained Age Net Amount at Risk Weighted Average Attained Age (in millions, except age) UL secondary guarantees $ 6,460 65 $ 6,376 64 |
Schedule of Changes in Additional Liabilities for Variable Annuity and Insurance Guarantees [Table Text Block] | Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows: GMDB & GMIB GMWB (1) GMAB (1) UL (in millions) Balance at January 1, 2015 $ 9 $ 7 $ 693 $ (41 ) $ 263 Incurred claims 10 1 364 41 92 Paid claims (5 ) — — — (23 ) Balance at December 31, 2015 14 8 1,057 — 332 Incurred claims 11 1 (40 ) (23 ) 127 Paid claims (9 ) (1 ) — (1 ) (25 ) Balance at December 31, 2016 16 8 1,017 (24 ) 434 Incurred claims 5 — (554 ) (56 ) 84 Paid claims (4 ) (2 ) — — (29 ) Balance at December 31, 2017 $ 17 $ 6 $ 463 $ (80 ) $ 489 (1) The incurred claims for GMWB and GMAB represent the change in the fair value of the liabilities (contra liabilities) less paid claims. |
Schedule of Separate Account Balances By Asset Type [Table Text Block] | The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: December 31, 2017 2016 (in millions) Mutual funds: Equity $ 46,038 $ 40,622 Bond 23,529 23,142 Other 5,109 5,326 Total mutual funds $ 74,676 $ 69,090 |
Fair Values of Assets and Lia35
Fair Values of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of balances of assets and liabilities measured at fair value on a recurring basis | The following tables present the balances of assets and liabilities measured at fair value on a recurring basis: December 31, 2017 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $ — $ 12,161 $ 1,072 $ 13,233 Residential mortgage backed securities — 2,924 87 3,011 Commercial mortgage backed securities — 3,569 — 3,569 State and municipal obligations — 1,314 — 1,314 Asset backed securities — 728 — 728 Foreign government bonds and obligations — 299 — 299 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities: Fixed maturities 1 20,995 1,159 22,155 Cash equivalents — 1,030 — 1,030 Other assets: Interest rate derivative contracts — 1,081 — 1,081 Equity derivative contracts 62 2,305 — 2,367 Foreign exchange derivative contracts 1 34 — 35 Total other assets 63 3,420 — 3,483 Separate account assets at net asset value (“NAV”) 82,560 (1) Total assets at fair value $ 64 $ 25,445 $ 1,159 $ 109,228 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 601 601 GMWB and GMAB embedded derivatives — — (49 ) (49 ) (2) Total policyholder account balances, future policy benefits and claims — 5 552 557 (3) Other liabilities: Interest rate derivative contracts 1 414 — 415 Equity derivative contracts 5 2,666 — 2,671 Foreign exchange derivative contracts — 23 — 23 Credit derivative contracts — 2 — 2 Total other liabilities 6 3,105 — 3,111 Total liabilities at fair value $ 6 $ 3,110 $ 552 $ 3,668 December 31, 2016 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $ — $ 12,955 $ 1,157 $ 14,112 Residential mortgage backed securities — 3,300 115 3,415 Commercial mortgage backed securities — 2,857 — 2,857 State and municipal obligations — 1,229 — 1,229 Asset backed securities — 792 13 805 Foreign government bonds and obligations — 261 — 261 U.S. government and agency obligations 3 — — 3 Total Available-for-Sale securities: Fixed maturities 3 21,394 1,285 22,682 Common stocks 6 4 — 10 Cash equivalents — 302 — 302 Other assets: Interest rate derivative contracts — 1,735 — 1,735 Equity derivative contracts 43 1,487 — 1,530 Credit derivative contracts — 1 — 1 Foreign exchange derivative contracts — 80 — 80 Total other assets 43 3,303 — 3,346 Separate account assets at NAV 76,298 (1) Total assets at fair value $ 52 $ 25,003 $ 1,285 $ 102,638 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 464 464 GMWB and GMAB embedded derivatives — — 614 614 (4) Total policyholder account balances, future policy benefits and claims — 5 1,078 1,083 (5) Other liabilities: Interest rate derivative contracts 1 964 — 965 Equity derivative contracts 2 1,987 — 1,989 Foreign exchange derivative contracts 2 45 — 47 Total other liabilities 5 2,996 — 3,001 Total liabilities at fair value $ 5 $ 3,001 $ 1,078 $ 4,084 (1) Amounts are comprised of certain 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. (2) The fair value of the GMWB and GMAB embedded derivatives included $443 million of individual contracts in a liability position and $492 million of individual contracts in an asset position as of December 31, 2017 . (3) The Company’s adjustment for nonperformance risk resulted in a $(399) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2017 . (4) The fair value of the GMWB and GMAB embedded derivatives included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position as of December 31, 2016 . (5) The Company’s adjustment for nonperformance risk resulted in a $(498) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2016 . |
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | 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: Fixed Maturities Common Stocks Corporate Residential Commercial Asset Total Balance, January 1, 2017 $ 1,157 $ 115 $ — $ 13 $ 1,285 $ — Total gains (losses) included in: Net income 1 — — — 1 (1) — Other comprehensive income (loss) (8 ) 1 — — (7 ) — Purchases 124 67 36 49 276 — Settlements (202 ) (7 ) — (13 ) (222 ) — Transfers into Level 3 — — — 11 11 4 Transfers out of Level 3 — (89 ) (36 ) (60 ) (185 ) (4 ) Balance, December 31, 2017 $ 1,072 $ 87 $ — $ — $ 1,159 $ — Changes in unrealized gains (losses) relating to assets held at December 31, 2017 $ 1 $ — $ — $ — $ 1 (1) $ — Policyholder Account Balances, IUL GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2017 $ 464 $ 614 $ 1,078 Total (gains) losses included in: Net income 87 (2) (977 ) (3) (890 ) Issues 92 326 418 Settlements (42 ) (12 ) (54 ) Balance, December 31, 2017 $ 601 $ (49 ) $ 552 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2017 $ 87 (2) $ (946 ) (3) $ (859 ) Available-for-Sale Securities: Fixed Maturities Other Derivative Contracts Corporate Residential Commercial Asset Total (in millions) Balance, January 1, 2016 $ 1,235 $ 21 $ 3 $ 133 $ 1,392 $ — Total gains (losses) included in: Net income 1 — — 1 2 (1) (2 ) (3) Other comprehensive income (loss) (1 ) (1 ) — — (2 ) — Purchases 47 134 42 — 223 2 Settlements (126 ) (9 ) (3 ) (1 ) (139 ) — Transfers into Level 3 1 — — 12 13 — Transfers out of Level 3 — (30 ) (42 ) (132 ) (204 ) — Balance, December 31, 2016 $ 1,157 $ 115 $ — $ 13 $ 1,285 $ — Changes in unrealized gains (losses) relating to assets held at December 31, 2016 $ 1 $ — $ — $ — $ 1 (1) $ (2 ) (3) Policyholder Account Balances, Future Policy Benefits and Claims IUL GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2016 $ 364 $ 851 $ 1,215 Total (gains) losses included in: Net income 13 (2) (511 ) (3) (498 ) Issues 115 295 410 Settlements (28 ) (21 ) (49 ) Balance, December 31, 2016 $ 464 $ 614 $ 1,078 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2016 $ 13 (2) $ (448 ) (3) $ (435 ) Available-for-Sale Securities: Fixed Maturities Common Stocks Corporate Residential Commercial Asset Total (in millions) Balance, January 1, 2015 $ 1,353 $ 9 $ 90 $ 151 $ 1,603 $ 1 Total gains (losses) included in: Net income (1 ) — — 1 — (1) — Other comprehensive income (loss) (21 ) — — (2 ) (23 ) (1 ) Purchases 153 67 32 16 268 — Settlements (238 ) (4 ) (7 ) (2 ) (251 ) — Transfers into Level 3 — — 6 14 20 — Transfers out of Level 3 (11 ) (51 ) (118 ) (45 ) (225 ) — Balance, December 31, 2015 $ 1,235 $ 21 $ 3 $ 133 $ 1,392 $ — Changes in unrealized gains (losses) relating to assets held at December 31, 2015 $ (1 ) $ — $ — $ 1 $ — (1) $ — Policyholder Account Balances, IUL GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2015 $ 242 $ 479 $ 721 Total (gains) losses included in: Net income 27 (2) 105 (3) 132 Issues 114 271 385 Settlements (19 ) (4 ) (23 ) Balance, December 31, 2015 $ 364 $ 851 $ 1,215 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2015 $ 27 (2) $ 127 (3) $ 154 (1) Included in net investment income in the Consolidated Statements of Income. (2) Included in interest credited to fixed accounts in the Consolidated Statements of Income. (3) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. |
Significant unobservable inputs used in the fair value measurements | 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, 2017 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities $ 1,070 Discounted cash flow Yield/spread to U.S. Treasuries 0.7 % - 2.3% 1.1 % IUL embedded derivatives $ 601 Discounted cash flow Nonperformance risk (1) 71 bps GMWB and GMAB embedded derivatives $ (49 ) Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0 % - 42.0% Surrender rate 0.1 % - 74.7% Market volatility (3) 3.7 % - 16.1% Nonperformance risk (1) 71 bps December 31, 2016 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities $ 1,154 Discounted cash flow Yield/spread to U.S. Treasuries 0.9 % - 2.5% 1.3 % IUL embedded derivatives $ 464 Discounted cash flow Nonperformance risk (1) 82 bps GMWB and GMAB embedded derivatives $ 614 Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0 % - 75.6% Surrender rate 0.1 % - 66.4% Market volatility (3) 5.3 % - 21.2% Nonperformance risk (1) 82 bps (1) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. (2) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. (3) Market volatility is implied volatility of fund of funds and managed volatility funds. |
Schedule of carrying value and the estimated fair value of financial instruments that are 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, 2017 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,619 $ — $ — $ 2,616 $ 2,616 Policy loans 845 — — 801 801 Other investments 408 — 373 36 409 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 10,246 $ — $ — $ 10,755 $ 10,755 Short-term borrowings 200 — 200 — 200 Other liabilities 123 — — 119 119 Separate account liabilities at NAV 369 369 (1) December 31, 2016 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,874 $ — $ — $ 2,865 $ 2,865 Policy loans 830 — — 807 807 Other investments 402 — 364 43 407 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 10,906 $ — $ — $ 11,417 $ 11,417 Short-term borrowings 200 — 200 — 200 Other liabilities 177 — — 169 169 Separate account liabilities at NAV 341 341 (1) (1) Amounts are comprised of certain 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. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of dividends paid and received [Table Text Block] | Dividends paid and received by RiverSource Life Insurance Company were as follows: Years Ended December 31, 2017 2016 2015 (in millions) Cash dividends paid to Ameriprise Financial $ 700 $ 1,000 $ 800 Cash dividends received from RiverSource Life of NY 50 50 25 Cash dividend received from RTA 20 15 — Cash dividend received from RiverSource REO 1, LLC (1) — 31 — (1) RiverSource REO 1, LLC is a wholly owned subsidiary of RiverSource Life Insurance Company which holds foreclosed mortgage loans and real estate. |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Requirements | |
Summary of Statutory Net Gain from Operations and Net Income [Table Text Block] | Statutory net gain from operations and net income (loss) are summarized as follows: Years Ended December 31, 2017 2016 2015 (in millions) Statutory net gain from operations $ 958 $ 834 $ 1,033 Statutory net income (loss) 222 322 633 |
Offsetting Assets and Liabili38
Offsetting Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Offsetting [Abstract] | |
Schedule of gross and net information about the Company's assets subject to master netting arrangements [Table Text Block] | The following tables present the gross and net information about the Company’s assets subject to master netting arrangements: December 31, 2017 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,440 $ — $ 3,440 $ (2,599 ) $ (736 ) $ (88 ) $ 17 OTC cleared 21 — 21 (15 ) — — 6 Exchange-traded 22 — 22 (1 ) — — 21 Total derivatives $ 3,483 $ — $ 3,483 $ (2,615 ) $ (736 ) $ (88 ) $ 44 December 31, 2016 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 2,822 $ — $ 2,822 $ (2,161 ) $ (374 ) $ (235 ) $ 52 OTC cleared 510 — 510 (507 ) (3 ) — — Exchange-traded 14 — 14 (2 ) — — 12 Total derivatives $ 3,346 $ — $ 3,346 $ (2,670 ) $ (377 ) $ (235 ) $ 64 (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 Consolidated Balance Sheets. |
Schedule of gross and net information about the Company's liabilities subject to master netting arrangements [Table Text Block] | The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements: December 31, 2017 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,095 $ — $ 3,095 $ (2,599 ) $ (1 ) $ (492 ) $ 3 OTC cleared 15 — 15 (15 ) — — — Exchange-traded 1 — 1 (1 ) — — — Total derivatives 3,111 — 3,111 (2,615 ) (1 ) (492 ) 3 Repurchase agreements 50 — 50 — — (50 ) — Total $ 3,161 $ — $ 3,161 $ (2,615 ) $ (1 ) $ (542 ) $ 3 December 31, 2016 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 2,481 $ — $ 2,481 $ (2,161 ) $ — $ (312 ) $ 8 OTC cleared 515 — 515 (507 ) (8 ) — — Exchange-traded 5 — 5 (2 ) — — 3 Total derivatives 3,001 — 3,001 (2,670 ) (8 ) (312 ) 11 Repurchase agreements 50 — 50 — — (50 ) — Total $ 3,051 $ — $ 3,051 $ (2,670 ) $ (8 ) $ (362 ) $ 11 (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 Consolidated Balance Sheets. |
Derivatives and Hedging Activ39
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of gross fair value of derivative instruments, including embedded derivatives [Table Text Block] | 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, 2017 December 31, 2016 Notional Gross Fair Value Notional Gross Fair Value Assets (1) Liabilities (2) Assets (1) Liabilities (2) (in millions) Derivatives not designated as hedging instruments Interest rate contracts $ 64,790 $ 1,081 $ 415 $ 71,019 $ 1,735 $ 965 Equity contracts 56,649 2,367 2,671 60,419 1,530 1,989 Credit contracts 715 — 2 1,039 1 — Foreign exchange contracts 3,996 35 23 4,494 80 47 Other contracts 450 — — 240 — — Total non-designated hedges 126,600 3,483 3,111 137,211 3,346 3,001 Embedded derivatives GMWB and GMAB (3) N/A — (49 ) N/A — 614 IUL N/A — 601 N/A — 464 Indexed annuities N/A — 5 N/A — 5 Total embedded derivatives N/A — 557 N/A — 1,083 Total derivatives $ 126,600 $ 3,483 $ 3,668 $ 137,211 $ 3,346 $ 4,084 N/A Not applicable. (1) The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. (2) The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and indexed annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. (3) The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2017 included $443 million of individual contracts in a liability position and $492 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2016 included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position. |
Schedule of gain (loss) on derivative instruments,including embedded derivatives [Table Text Block] | The following table presents a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income: Interest Credited to Fixed Accounts Benefits, Claims, Losses and Settlement Expenses (in millions) Year Ended December 31, 2017 Interest rate contracts $ — $ 3 Equity contracts 75 (1,006 ) Credit contracts — (22 ) Foreign exchange contracts — (23 ) Other contracts — (2 ) GMWB and GMAB embedded derivatives — 663 IUL embedded derivatives (45 ) — Total gain (loss) $ 30 $ (387 ) Year Ended December 31, 2016 Interest rate contracts $ — $ 38 Equity contracts 20 (857 ) Credit contracts — 2 Other contracts — (2 ) GMWB and GMAB embedded derivatives — 237 IUL embedded derivatives 15 — Total gain (loss) $ 35 $ (582 ) Year Ended December 31, 2015 Interest rate contracts $ — $ 232 Equity contracts (10 ) (308 ) Credit contracts — (1 ) Foreign exchange contracts — 13 Other contracts — (1 ) GMWB and GMAB embedded derivatives — (372 ) IUL embedded derivatives (8 ) — Indexed annuity embedded derivatives 1 — Total gain (loss) $ (17 ) $ (437 ) |
Schedule of Premiums for Derivative Option Contracts [Text Block] | The deferred premium associated with certain of the above options and swaptions 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 and swaptions as of December 31, 2017 : Premiums Premiums (in millions) 2018 $ 213 $ 129 2019 276 170 2020 198 98 2021 168 107 2022 231 147 2023-2026 472 59 Total $ 1,558 $ 710 |
Shareholder's Equity (Tables)
Shareholder's Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of components of OCI [Table Text Block] | The following tables provide the amounts related to each component of OCI: Years Ended December 31, 2017 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized securities gains (losses): Net unrealized securities gains (losses) arising during the period (1) $ 210 $ (61 ) $ 149 Reclassification of net securities (gains) losses included in net income (2) (44 ) 15 (29 ) Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables (180 ) 57 (123 ) Net unrealized securities gains (losses) (14 ) 11 (3 ) Net unrealized derivatives gains (losses): Reclassification of net derivative (gains) losses included in net income (3) 5 (2 ) 3 Net unrealized derivatives gains (losses) 5 (2 ) 3 Other (1 ) — (1 ) Total other comprehensive income (loss) $ (10 ) $ 9 $ (1 ) Years Ended December 31, 2016 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized securities gains (losses): Net unrealized securities gains (losses) arising during the period (1) $ 350 $ (124 ) $ 226 Reclassification of net securities (gains) losses included in net income (2) (17 ) 6 (11 ) Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables (242 ) 85 (157 ) Net unrealized securities gains (losses) 91 (33 ) 58 Net unrealized derivatives gains (losses): Reclassification of net derivative (gains) losses included in net income (3) 6 (2 ) 4 Net unrealized derivatives gains (losses) 6 (2 ) 4 Total other comprehensive income (loss) $ 97 $ (35 ) $ 62 Years Ended December 31, 2015 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized securities gains (losses): Net unrealized securities gains (losses) arising during the period (1) $ (997 ) $ 351 $ (646 ) Reclassification of net securities (gains) losses included in net income (2) (6 ) 2 (4 ) Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables 480 (168 ) 312 Net unrealized securities gains (losses) (523 ) 185 (338 ) Net unrealized derivatives gains (losses): Reclassification of net derivative (gains) losses included in net income (3) 6 (2 ) 4 Net unrealized derivatives gains (losses) 6 (2 ) 4 Total other comprehensive income (loss) $ (517 ) $ 183 $ (334 ) (1) Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period. (2) Reclassification amounts are recorded in net realized investment gains (losses). (3) Reclassification amounts are recorded in net investment income. |
Schedule of amounts reclassified from AOCI [Table Text Block] | The following table presents the changes in the balances of each component of AOCI, net of tax: Net Unrealized Securities Gains (Losses) Net Unrealized Derivatives Gains Other Total (in millions) Balance, January 1, 2015 $ 741 $ (12 ) $ — $ 729 OCI before reclassifications (334 ) — — (334 ) Amounts reclassified from AOCI (4 ) 4 — — Total OCI (338 ) 4 — (334 ) Balance, December 31, 2015 403 (1) (8 ) — 395 OCI before reclassifications 69 — — 69 Amounts reclassified from AOCI (11 ) 4 — (7 ) Total OCI 58 4 — 62 Balance, December 31, 2016 461 (1) (4 ) — 457 OCI before reclassifications 26 — (1 ) 25 Amounts reclassified from AOCI (29 ) 3 — (26 ) Total OCI (3 ) 3 (1 ) (1 ) Balance, December 31, 2017 $ 458 (1) $ (1 ) $ (1 ) $ 456 (1) Includes nil , nil and $2 million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at December 31, 2017 , 2016 and 2015 , respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax provision [Table Text Block] | The components of income tax provision were as follows: Years Ended December 31, 2017 2016 2015 (in millions) Current income tax Federal $ 158 $ 18 $ 234 State 1 1 2 Total current income tax 159 19 236 Deferred income tax Federal 103 6 (91 ) State (2 ) (1 ) — Total deferred income tax 101 5 (91 ) Total income tax provision $ 260 $ 24 $ 145 |
Schedule of reconciliation of income tax rates [Table Text Block] | The principal reasons that the aggregate income tax provision is different from that computed by using the U.S. statutory rate of 35% were as follows: Years Ended December 31, 2017 2016 2015 Tax at U.S. statutory rate 35.0 % 35.0 % 35.0 % Changes in taxes resulting from: Impact of Tax Act 14.0 — — Dividend received deduction (12.9 ) (17.1 ) (14.0 ) Low income housing tax credits (7.4 ) (9.4 ) (6.1 ) Foreign tax credit, net of addback (2.7 ) (3.8 ) — Taxes applicable to prior years — (2.0 ) — Other, net — 0.7 (0.9 ) Income tax provision 26.0 % 3.4 % 14.0 % |
Schedule of components of deferred income tax assets and liabilities [Table Text Block] | The significant components of the Company’s deferred income tax assets and liabilities, which are included net within other assets or other liabilities on the Consolidated Balance Sheets, were as follows: December 31, 2017 2016 (in millions) Deferred income tax assets Liabilities for policyholder account balances, future policy benefits and claims $ 599 $ 1,144 Investment related 251 236 Other 29 13 Gross deferred income tax assets 879 1,393 Less: valuation allowance 11 8 Total deferred income tax assets 868 1,385 Deferred income tax liabilities Deferred acquisition costs 431 695 Net unrealized gains on Available-for-Sale securities 150 251 Deferred sales inducement costs 62 113 Depreciation 13 23 Other 1 — Gross deferred income tax liabilities 657 1,082 Net deferred income tax assets $ 211 $ 303 |
Reconciliation of gross unrecognized tax benefits [Table Text Block] | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows: 2017 2016 2015 (in millions) Balance at January 1 $ 59 $ 95 $ 160 Additions based on tax positions related to the current year 5 6 11 Additions for tax positions of prior years — 31 29 Reductions for tax positions of prior years (50 ) (68 ) (105 ) Settlements — (5 ) — Balance at December 31 $ 14 $ 59 $ 95 |
Commitments, Guarantees and C42
Commitments, Guarantees and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Funding commitments [Table Text Block] | The following table presents the Company’s funding commitments as of December 31: 2017 2016 (in millions) Commercial mortgage loans $ 31 $ 68 Residential mortgage loans — 185 Affordable housing and other real estate partnerships 123 177 Total funding commitments $ 154 $ 430 |
Nature of Business and Basis 43
Nature of Business and Basis of Presentation (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)item | Dec. 31, 2016USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of wholly owned subsidiaries | item | 1 | |
Operating Income (Loss) [Member] | ||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||
Correction of prior period amounts | $ 12 | |
DAC [Member] | ||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||
Correction of prior period amounts | 8 | |
Benefits, claims, losses and settlement expenses [Member] | ||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||
Correction of prior period amounts | 4 | |
Income Tax Provision [Member] | ||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||
Correction of prior period amounts | $ 20 | |
LTC [Member] | ||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||
Correction of prior period amounts | $ 29 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Consolidation Info) (Details) | Dec. 31, 2017 |
Accounting Policies [Line Items] | |
Consolidation of entity minimum ownership percentage | 50.00% |
Cost method investment ownership percentage high end of range | 20.00% |
Minimum [Member] | |
Accounting Policies [Line Items] | |
Equity method investment, ownership percentage | 20.00% |
Maximum [Member] | |
Accounting Policies [Line Items] | |
Equity method investment, ownership percentage | 50.00% |
Summary of Significant Accoun45
Summary of Significant Accounting Policies (Loans, PP&E, DAC)(Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loans and Leases Receivable Disclosure [Abstract] | |||
Nonaccrual status period for loans | 90 days | ||
Land, Buildings, Equipment and Software [Abstract] | |||
Land, buildings, equipment and software, net of accumulated depreciation | $ 142 | $ 148 | |
Accumulated depreciation | 159 | 144 | |
Depreciation and amortization expense | $ 15 | $ 14 | $ 15 |
Minimum [Member] | |||
Land, Buildings, Equipment and Software [Abstract] | |||
Amortization periods | 3 years | ||
Maximum [Member] | |||
Land, Buildings, Equipment and Software [Abstract] | |||
Amortization periods | 30 years |
Variable Interest Entities (Det
Variable Interest Entities (Details) - VIEs, not primary beneficiary [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fixed maturities [Member] | ||
Variable Interest Entities | ||
Obligation to provide financial or other support to VIEs | $ 0 | |
RTA [Member] | ||
Variable Interest Entities | ||
Carrying values of investments reflected in other investments | 408 | $ 482 |
Carrying value of liability of other investments | $ 97 | $ 135 |
Investments (AFS by type) (Deta
Investments (AFS by type) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments | |||
Amortized cost | $ 20,765 | $ 21,468 | |
Gross unrealized gains | 1,485 | 1,400 | |
Gross unrealized losses | (95) | (176) | |
Fair value | 22,155 | 22,692 | |
Noncredit OTTI | [1] | 0 | (1) |
Security owned and pledged as collateral, fair value | 1,600 | 1,500 | |
Amount eligible to be repledged by counterparty | 711 | 428 | |
Corporate debt securities [Member] | |||
Investments | |||
Amortized cost | 12,133 | 13,105 | |
Gross unrealized gains | 1,125 | 1,060 | |
Gross unrealized losses | (25) | (53) | |
Fair value | 13,233 | 14,112 | |
Noncredit OTTI | [1] | 0 | 0 |
Residential mortgage backed securities [Member] | |||
Investments | |||
Amortized cost | 2,979 | 3,386 | |
Gross unrealized gains | 54 | 72 | |
Gross unrealized losses | (22) | (43) | |
Fair value | 3,011 | 3,415 | |
Noncredit OTTI | [1] | 0 | (4) |
Commercial mortgage backed securities [Member] | |||
Investments | |||
Amortized cost | 3,554 | 2,837 | |
Gross unrealized gains | 47 | 58 | |
Gross unrealized losses | (32) | (38) | |
Fair value | 3,569 | 2,857 | |
State and municipal obligations [Member] | |||
Investments | |||
Amortized cost | 1,114 | 1,092 | |
Gross unrealized gains | 209 | 161 | |
Gross unrealized losses | (9) | (24) | |
Fair value | 1,314 | 1,229 | |
Asset backed securities [Member] | |||
Investments | |||
Amortized cost | 700 | 790 | |
Gross unrealized gains | 30 | 26 | |
Gross unrealized losses | (2) | (11) | |
Fair value | 728 | 805 | |
Foreign government bonds and obligations [Member] | |||
Investments | |||
Amortized cost | 283 | 251 | |
Gross unrealized gains | 20 | 17 | |
Gross unrealized losses | (4) | (7) | |
Fair value | 299 | 261 | |
U.S. government and agency obligations [Member] | |||
Investments | |||
Amortized cost | 1 | 3 | |
Gross unrealized gains | 0 | ||
Fair value | 1 | 3 | |
Total fixed maturities [Member] | |||
Investments | |||
Amortized cost | 20,764 | 21,464 | |
Gross unrealized gains | 1,485 | 1,394 | |
Gross unrealized losses | (94) | (176) | |
Fair value | 22,155 | 22,682 | |
Noncredit OTTI | [1] | $ 0 | $ (4) |
Fixed maturity securities as percentage of total investments | 84.00% | 83.00% | |
Fixed maturity investments rated internally | $ 906 | $ 944 | |
Common stocks [Member] | |||
Investments | |||
Amortized cost | 1 | 4 | |
Gross unrealized gains | 0 | 6 | |
Gross unrealized losses | (1) | ||
Fair value | 0 | 10 | |
Noncredit OTTI | [1] | $ 0 | $ 3 |
[1] | Represents the amount of other-than-temporary impairment (“OTTI”) losses in AOCI. Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period. |
Investments (Rating info) (Deta
Investments (Rating info) (Details) $ in Millions | Dec. 31, 2017USD ($)item | Dec. 31, 2016USD ($)item |
Investments | ||
Fixed maturities, amortized cost | $ 20,764 | $ 21,464 |
Fixed maturities, fair value | $ 22,155 | $ 22,682 |
Percentage of GNMA, FNMA and FHLMC securities rated AAA | 35.00% | 40.00% |
Number of holdings of other than GNMA, FNMA and FHLMC having greater than 10% of total equity | item | 0 | 0 |
AAA [Member] | ||
Investments | ||
Fixed maturities, amortized cost | $ 6,259 | $ 5,671 |
Fixed maturities, fair value | $ 6,303 | $ 5,728 |
Percent of total fair value | 28.00% | 25.00% |
AA [Member] | ||
Investments | ||
Fixed maturities, amortized cost | $ 1,090 | $ 1,013 |
Fixed maturities, fair value | $ 1,285 | $ 1,177 |
Percent of total fair value | 6.00% | 5.00% |
A [Member] | ||
Investments | ||
Fixed maturities, amortized cost | $ 3,443 | $ 3,767 |
Fixed maturities, fair value | $ 3,902 | $ 4,167 |
Percent of total fair value | 18.00% | 19.00% |
BBB [Member] | ||
Investments | ||
Fixed maturities, amortized cost | $ 8,796 | $ 9,584 |
Fixed maturities, fair value | $ 9,465 | $ 10,190 |
Percent of total fair value | 43.00% | 45.00% |
Below investment grade [Member] | ||
Investments | ||
Fixed maturities, amortized cost | $ 1,176 | $ 1,429 |
Fixed maturities, fair value | $ 1,200 | $ 1,420 |
Percent of total fair value | 5.00% | 6.00% |
Total fixed maturities [Member] | ||
Investments | ||
Fixed maturities, amortized cost | $ 20,764 | $ 21,464 |
Fixed maturities, fair value | $ 22,155 | $ 22,682 |
Percent of total fair value | 100.00% | 100.00% |
Investments (EITF info) (Detail
Investments (EITF info) (Details) $ in Millions | Dec. 31, 2017USD ($)item | Dec. 31, 2016USD ($)item |
Number of Securities | ||
Less than 12 months | item | 211 | 298 |
12 months or more | item | 160 | 119 |
Total | item | 371 | 417 |
Fair Value | ||
Less than 12 months | $ 2,531 | $ 4,489 |
12 months or more | 1,918 | 896 |
Total | 4,449 | 5,385 |
Unrealized Losses | ||
Less than 12 months | (19) | (98) |
12 months or more | (76) | (78) |
Total | $ (95) | $ (176) |
Corporate debt securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 82 | 114 |
12 months or more | item | 39 | 33 |
Total | item | 121 | 147 |
Fair Value | ||
Less than 12 months | $ 834 | $ 1,502 |
12 months or more | 360 | 319 |
Total | 1,194 | 1,821 |
Unrealized Losses | ||
Less than 12 months | (5) | (26) |
12 months or more | (20) | (27) |
Total | $ (25) | $ (53) |
Residential mortgage backed securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 36 | 56 |
12 months or more | item | 41 | 56 |
Total | item | 77 | 112 |
Fair Value | ||
Less than 12 months | $ 546 | $ 1,282 |
12 months or more | 657 | 324 |
Total | 1,203 | 1,606 |
Unrealized Losses | ||
Less than 12 months | (4) | (25) |
12 months or more | (18) | (18) |
Total | $ (22) | $ (43) |
Commercial mortgage backed securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 56 | 80 |
12 months or more | item | 42 | 1 |
Total | item | 98 | 81 |
Fair Value | ||
Less than 12 months | $ 994 | $ 1,378 |
12 months or more | 663 | 11 |
Total | 1,657 | 1,389 |
Unrealized Losses | ||
Less than 12 months | (10) | (37) |
12 months or more | (22) | (1) |
Total | $ (32) | $ (38) |
State and municipal obligations [Member] | ||
Number of Securities | ||
Less than 12 months | item | 19 | 18 |
12 months or more | item | 8 | 2 |
Total | item | 27 | 20 |
Fair Value | ||
Less than 12 months | $ 35 | $ 66 |
12 months or more | 138 | 105 |
Total | 173 | 171 |
Unrealized Losses | ||
Less than 12 months | 0 | (3) |
12 months or more | (9) | (21) |
Total | $ (9) | $ (24) |
Asset backed securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 15 | 23 |
12 months or more | item | 12 | 12 |
Total | item | 27 | 35 |
Fair Value | ||
Less than 12 months | $ 116 | $ 231 |
12 months or more | 76 | 114 |
Total | 192 | 345 |
Unrealized Losses | ||
Less than 12 months | 0 | (6) |
12 months or more | (2) | (5) |
Total | $ (2) | $ (11) |
Foreign government bonds and obligations [Member] | ||
Number of Securities | ||
Less than 12 months | item | 3 | 7 |
12 months or more | item | 15 | 15 |
Total | item | 18 | 22 |
Fair Value | ||
Less than 12 months | $ 6 | $ 30 |
12 months or more | 23 | 23 |
Total | 29 | 53 |
Unrealized Losses | ||
Less than 12 months | 0 | (1) |
12 months or more | (4) | (6) |
Total | $ (4) | $ (7) |
Common stocks [Member] | ||
Number of Securities | ||
12 months or more | item | 3 | |
Total | item | 3 | |
Fair Value | ||
12 months or more | $ 1 | |
Total | 1 | |
Unrealized Losses | ||
12 months or more | (1) | |
Total | $ (1) |
Investments (OTTI rollforward)
Investments (OTTI rollforward) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Rollforward of the cumulative amounts recognized in the Consolidated Statements of Income for other-than-temporary impairments related to credit losses on securities | |||
Beginning balance | $ 21 | $ 33 | $ 33 |
Reductions for securities sold during the period (realized) | (21) | (12) | 0 |
Ending balance | $ 0 | $ 21 | $ 33 |
Investments (Realized GL info)
Investments (Realized GL info) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | |||
Gross realized investment gains | $ 48 | $ 29 | $ 30 |
Gross realized investment losses | (4) | (12) | (17) |
Other-than-temporary impairments | 0 | 0 | (7) |
Total | $ 44 | $ 17 | $ 6 |
Investments (AFS contractual ma
Investments (AFS contractual maturity) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Due within one year | $ 1,288 | |
Due after one year through five years | 5,481 | |
Due after five years through 10 years | 3,039 | |
Due after 10 years | 3,723 | |
Total having single maturity dates | 13,531 | |
Amortized cost | 20,765 | $ 21,468 |
Fair Value | ||
Due within one year | 1,305 | |
Due after one year through five years | 5,685 | |
Due after five years through 10 years | 3,154 | |
Due after 10 years | 4,703 | |
Total having single maturity dates | 14,847 | |
Fair value | 22,155 | 22,692 |
Residential mortgage backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 2,979 | |
Amortized cost | 2,979 | 3,386 |
Fair Value | ||
Without single maturity dates | 3,011 | |
Fair value | 3,011 | 3,415 |
Commercial mortgage backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 3,554 | |
Amortized cost | 3,554 | 2,837 |
Fair Value | ||
Without single maturity dates | 3,569 | |
Fair value | 3,569 | 2,857 |
Asset backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 700 | |
Amortized cost | 700 | 790 |
Fair Value | ||
Without single maturity dates | 728 | |
Fair value | 728 | 805 |
Common stocks [Member] | ||
Amortized Cost | ||
Without single maturity dates | 1 | |
Amortized cost | 1 | 4 |
Fair Value | ||
Without single maturity dates | 0 | |
Fair value | $ 0 | $ 10 |
Investments (Net inv inc summar
Investments (Net inv inc summary) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Investment Income [Line Items] | |||
Gross investment income | $ 1,036 | $ 1,154 | $ 1,244 |
Less: investment expenses | 25 | 26 | 26 |
Total | 1,011 | 1,128 | 1,218 |
Fixed maturities [Member] | |||
Net Investment Income [Line Items] | |||
Gross investment income | 947 | 997 | 1,034 |
Mortgage loans [Member] | |||
Net Investment Income [Line Items] | |||
Gross investment income | 137 | 149 | 177 |
Other investments [Member] | |||
Net Investment Income [Line Items] | |||
Gross investment income | $ (48) | $ 8 | $ 33 |
Investments (Net realized inves
Investments (Net realized investment GL summary) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Fixed maturities | $ 44 | $ 17 | $ 6 |
Mortgage loans | (4) | 10 | 0 |
Other investments | 0 | (1) | (2) |
Total | $ 40 | $ 26 | $ 4 |
Financing Receivables (Allowanc
Financing Receivables (Allowance for Loan Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Rollforward of the allowance for loan losses | |||
Beginning balance | $ 25 | $ 25 | $ 28 |
Charge-offs | (3) | (3) | (4) |
Provisions | 0 | 3 | 1 |
Ending balance | 22 | 25 | 25 |
Individually evaluated for impairment | 0 | 2 | 4 |
Collectively evaluated for impairment | 22 | 23 | 21 |
Recorded investment in financing receivables by impairment method and type of loan | |||
Individually evaluated for impairment | 17 | 10 | |
Collectively evaluated for impairment | 3,015 | 3,275 | |
Total | 3,032 | 3,285 | |
Recorded investment in financing receivables individually evaluated for impairment with no related allowance for loan losses | 17 | 5 | |
Loans purchased | 156 | 73 | 106 |
Loans sold | $ 259 | $ 250 | $ 15 |
Financing Receivables (Credit Q
Financing Receivables (Credit Quality Information Text) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)item | Dec. 31, 2016USD ($)item | Dec. 31, 2015USD ($) | |
Credit quality information [Line Items] | |||
Total loans, gross | $ 3,032 | $ 3,285 | |
Loans sold | 259 | 250 | $ 15 |
90 days or more past due [Member] | |||
Credit quality information [Line Items] | |||
Nonperforming loans | $ 5 | $ 2 | |
Commercial mortgage loans [Member] | |||
Credit quality information [Line Items] | |||
Percent of commercial mortgage loans with highest risk rating | 0.00% | 0.00% | |
Total loans, gross | $ 2,635 | $ 2,593 | |
Residential mortgage loans [Member] | |||
Credit quality information [Line Items] | |||
Total loans, gross | 0 | 300 | |
Loans sold | 249 | 250 | |
Gain (loss) from sale of loans | $ (4) | $ 10 | |
Percentage of residential mortgage loans below specific FICO score | 2.00% | ||
FICO Score | item | 640 | 640 | |
Percentage of residential mortgage loans above specific LTV ratio | 0.00% | ||
LTV Ratio | 90.00% | ||
Percentage of loan portfolio represented by state of California | 52.00% | ||
Percentage of loan portfolio represented by state of Colorado | 18.00% | ||
Percentage of loan portfolio represented by state of Washington | 13.00% | ||
Syndicated Loans [Member] | |||
Credit quality information [Line Items] | |||
Total loans, gross | $ 397 | $ 392 | |
Syndicated Loans [Member] | 90 days or more past due [Member] | |||
Credit quality information [Line Items] | |||
Nonperforming loans | $ 5 | $ 1 |
Financing Receivables (Credit57
Financing Receivables (Credit Quality Information Tables) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 3,032 | $ 3,285 | ||
Less: allowance for loan losses | 22 | 25 | $ 25 | $ 28 |
Commercial mortgage loans [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | 2,635 | 2,593 | ||
Less: allowance for loan losses | 16 | 19 | ||
Total loans, net | $ 2,619 | $ 2,574 | ||
Percentage of gross commercial mortgage loans | 100.00% | 100.00% | ||
Commercial mortgage loans [Member] | Retail [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 893 | $ 916 | ||
Percentage of gross commercial mortgage loans | 34.00% | 35.00% | ||
Commercial mortgage loans [Member] | Office [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 470 | $ 473 | ||
Percentage of gross commercial mortgage loans | 18.00% | 18.00% | ||
Commercial mortgage loans [Member] | Apartments [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 536 | $ 483 | ||
Percentage of gross commercial mortgage loans | 20.00% | 19.00% | ||
Commercial mortgage loans [Member] | Industrial [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 451 | $ 430 | ||
Percentage of gross commercial mortgage loans | 17.00% | 17.00% | ||
Commercial mortgage loans [Member] | Mixed use [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 38 | $ 42 | ||
Percentage of gross commercial mortgage loans | 1.00% | 2.00% | ||
Commercial mortgage loans [Member] | Hotel [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 39 | $ 41 | ||
Percentage of gross commercial mortgage loans | 2.00% | 1.00% | ||
Commercial mortgage loans [Member] | Other [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 208 | $ 208 | ||
Percentage of gross commercial mortgage loans | 8.00% | 8.00% | ||
Commercial mortgage loans [Member] | South Atlantic [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 735 | $ 753 | ||
Percentage of gross commercial mortgage loans | 28.00% | 29.00% | ||
Commercial mortgage loans [Member] | Pacific [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 771 | $ 722 | ||
Percentage of gross commercial mortgage loans | 29.00% | 28.00% | ||
Commercial mortgage loans [Member] | Mountain [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 242 | $ 234 | ||
Percentage of gross commercial mortgage loans | 9.00% | 9.00% | ||
Commercial mortgage loans [Member] | West North Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 223 | $ 212 | ||
Percentage of gross commercial mortgage loans | 8.00% | 8.00% | ||
Commercial mortgage loans [Member] | East North Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 209 | $ 195 | ||
Percentage of gross commercial mortgage loans | 8.00% | 8.00% | ||
Commercial mortgage loans [Member] | Middle Atlantic [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 179 | $ 191 | ||
Percentage of gross commercial mortgage loans | 7.00% | 7.00% | ||
Commercial mortgage loans [Member] | West South Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 125 | $ 122 | ||
Percentage of gross commercial mortgage loans | 5.00% | 5.00% | ||
Commercial mortgage loans [Member] | New England [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 67 | $ 84 | ||
Percentage of gross commercial mortgage loans | 3.00% | 3.00% | ||
Commercial mortgage loans [Member] | East South Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 84 | $ 80 | ||
Percentage of gross commercial mortgage loans | 3.00% | 3.00% |
Financing Receivables (Troubled
Financing Receivables (Troubled Debt Restructurings) (Details) | Dec. 31, 2017USD ($) |
Receivables [Abstract] | |
Commitments to lend additional funds to borrowers for restructured loans | $ 0 |
Deferred Acquisition Costs an59
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Balances of and changes in DAC | ||||
Balance at the beginning of the period | $ 2,611 | $ 2,693 | $ 2,581 | |
Capitalization of acquisition costs | 242 | 279 | [1] | 275 |
Amortization, excluding the impact of valuation assumptions review | (219) | (253) | (267) | |
Amortization, impact of valuation assumptions review | 12 | (81) | [2] | (6) |
Impact of change in net unrealized securities (gains) losses | (7) | (27) | 110 | |
Balance at the end of the period | 2,639 | 2,611 | 2,693 | |
Benefit related to the release of the deferred reinsurance liability | (27) | |||
Expense related to the loss recognition on LTC business | 58 | |||
Balances of and changes in DSIC | ||||
Balance at the beginning of the period | 301 | 334 | 361 | |
Capitalization of sales inducement costs | 4 | 5 | 4 | |
Amortization, excluding the impact of valuation assumptions review | (37) | (42) | (52) | |
Amortization, impact of valuation assumptions review | (1) | 4 | 1 | |
Impact of change in net unrealized securities (gains) losses | 6 | 0 | 20 | |
Balance at the end of the period | $ 273 | $ 301 | $ 334 | |
[1] | Includes a $27 million benefit related to the write-off of the deferred reinsurance liability in connection with the loss recognition on LTC business. The benefit was reported in other insurance and operating expenses on the Consolidated Statements of Income. | |||
[2] | Includes a $58 million expense related to the loss recognition on LTC business. |
Reinsurance (Product informatio
Reinsurance (Product information) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reinsurance Retention Policy [Line Items] | ||
Maximum amount of life policy risk retained by entity, net of reinsured amounts | $ 1,500,000 | |
Life insurance [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Percentage of risk reinsured | 90.00% | |
Life Insurance in Force, Net [Abstract] | ||
Traditional life and UL insurance in force, gross | $ 195,900,000,000 | $ 196,500,000,000 |
Traditional life and UL insurance in force, reinsured | $ 142,400,000,000 | $ 142,400,000,000 |
IUL and VUL [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Percentage of risk reinsured | 50.00% | |
TrioSource UL insurance [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Percentage of risk reinsured | 50.00% | |
Single life insurance [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Maximum amount of life insurance risk retained by the entity | $ 10,000,000 | |
Flexible premium survivorship life insurance [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Maximum amount of life insurance risk retained by the entity | $ 10,000,000 | |
LTC [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Percentage of risk reinsured | 50.00% | |
DI [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Maximum amount of life insurance risk retained by the entity | $ 5,000 |
Reinsurance (Reinsurance on pre
Reinsurance (Reinsurance on premiums) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effects of Reinsurance [Line Items] | |||
Net premiums | $ 410 | $ 417 | $ 406 |
Traditional long-duration products [Member] | |||
Effects of Reinsurance [Line Items] | |||
Direct premiums | 637 | 642 | 629 |
Reinsurance ceded | (227) | (225) | (223) |
Net premiums | $ 410 | $ 417 | $ 406 |
Reinsurance (Ceded and recovere
Reinsurance (Ceded and recovered amounts) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effects of Reinsurance [Line Items] | |||
Reinsurance recovered from reinsurers | $ 298 | $ 318 | $ 287 |
Liability for assumed reinsurance arrangements | 509 | 529 | |
Non-traditional long-duration products [Member] | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance ceded offset within policy and contract charges | 114 | 110 | $ 107 |
LTC [Member] | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance recoverable related to LTC risk ceded to Genworth | $ 2,300 | $ 2,000 |
Policyholder Account Balances63
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Balances by product) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Policyholder account balances | $ 20,251 | $ 20,618 | |
Future policy benefits | 8,750 | 8,700 | |
Policy claims and other policyholders’ funds | 177 | 196 | |
Policyholder account balances, future policy benefits and claims | 29,178 | 29,514 | |
Fixed annuities [Member] | |||
Policyholder account balances | [1] | 9,934 | 10,588 |
Variable annuity fixed sub-accounts [Member] | |||
Policyholder account balances | 5,166 | 5,211 | |
VUL/UL insurance [Member] | |||
Policyholder account balances | 3,047 | 3,007 | |
IUL insurance [Member] | |||
Policyholder account balances | 1,384 | 1,054 | |
Other life insurance [Member] | |||
Policyholder account balances | 720 | 758 | |
Variable annuity GMWB [Member] | |||
Future policy benefits | 463 | 1,017 | |
Variable annuity GMAB [Member] | |||
Future policy benefits | [2] | (80) | (24) |
Other annuity liabilities [Member] | |||
Future policy benefits | 78 | 66 | |
Fixed annuity life contingent liabilities [Member] | |||
Future policy benefits | 1,484 | 1,497 | |
Life and DI insurance [Member] | |||
Future policy benefits | 1,221 | 1,204 | |
LTC insurance [Member] | |||
Future policy benefits | 4,896 | 4,352 | |
VUL/UL and other life insurance additional liabilities [Member] | |||
Future policy benefits | $ 688 | $ 588 | |
[1] | Includes fixed deferred annuities, non-life contingent fixed payout annuities and indexed annuity host contracts. | ||
[2] | Includes the fair value of GMAB embedded derivatives that was a net asset as of both December 31, 2017 and 2016 reported as a contra liability. |
Policyholder Account Balances64
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Text) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Liability for Future Policy Benefits [Line Items] | |
Fixed annuities liabilities average interest rate | 4.09% |
Minimum [Member] | |
Liability for Future Policy Benefits [Line Items] | |
Fixed annuities liabilities interest rates | 2.71% |
Maximum [Member] | |
Liability for Future Policy Benefits [Line Items] | |
Fixed annuities liabilities interest rates | 9.38% |
EIA [Member] | |
Liability for Future Policy Benefits [Line Items] | |
Contract initial term | 7 years |
Minimum interest rate guarantee | 3.00% |
Percentage of initial premium receiving interest guarantee | 90.00% |
Term and whole life insurance [Member] | Minimum [Member] | |
Liability for Future Policy Benefits [Line Items] | |
Anticipated interest rate for future claims | 3.00% |
Term and whole life insurance [Member] | Maximum [Member] | |
Liability for Future Policy Benefits [Line Items] | |
Anticipated interest rate for future claims | 10.00% |
DI [Member] | |
Liability for Future Policy Benefits [Line Items] | |
Unpaid reported claims discount rate | 4.50% |
DI [Member] | Minimum [Member] | |
Liability for Future Policy Benefits [Line Items] | |
Anticipated interest rate for future claims | 3.75% |
DI [Member] | Maximum [Member] | |
Liability for Future Policy Benefits [Line Items] | |
Anticipated interest rate for future claims | 7.50% |
LTC [Member] | |
Liability for Future Policy Benefits [Line Items] | |
Unpaid reported claims discount rate | 6.25% |
LTC [Member] | Minimum [Member] | |
Liability for Future Policy Benefits [Line Items] | |
Anticipated interest rate for future claims | 6.00% |
LTC [Member] | Maximum [Member] | |
Liability for Future Policy Benefits [Line Items] | |
Anticipated interest rate for future claims | 6.40% |
Policyholder Account Balances65
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Separate Account Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Separate Accounts Disclosure [Abstract] | ||
Variable Annuity | $ 75,174 | $ 69,606 |
VUL insurance | 7,352 | 6,659 |
Other insurance | 34 | 33 |
Total | $ 82,560 | $ 76,298 |
Variable Annuity and Insuranc66
Variable Annuity and Insurance Guarantees Variable Annuity and Insurance Guarantees (VA Guarantees Details Text) (Details) - GMAB [Member] | 12 Months Ended |
Dec. 31, 2017 | |
Variable Annuity Guarantees by Benefit Type | |
Maximum age of variable annuity contractholders | 79 years |
GMAB rider guarantees waiting period | 10 years |
Variable Annuity and Insuranc67
Variable Annuity and Insurance Guarantees (VA Guarantee Details Table) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | |||
GMDB [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 79,498 | $ 73,954 | |
Contract value in separate accounts | [1] | 74,378 | 68,790 | |
Net amount at risk | [1] | $ 83 | $ 433 | |
Weighted average attained age | [1] | 66 years | 65 years | |
GMDB [Member] | Return of premium [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 61,418 | $ 56,143 | |
Contract value in separate accounts | [1] | 59,461 | 54,145 | |
Net amount at risk | [1] | $ 9 | $ 208 | |
Weighted average attained age | [1] | 66 years | 65 years | |
GMDB [Member] | Five/six year reset [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 8,870 | $ 8,878 | |
Contract value in separate accounts | [1] | 6,149 | 6,170 | |
Net amount at risk | [1] | $ 12 | $ 22 | |
Weighted average attained age | [1] | 66 years | 66 years | |
GMDB [Member] | One-year ratchet [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 6,548 | $ 6,426 | |
Contract value in separate accounts | [1] | 6,187 | 6,050 | |
Net amount at risk | [1] | $ 11 | $ 110 | |
Weighted average attained age | [1] | 69 years | 68 years | |
GMDB [Member] | Five-year ratchet [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 1,563 | $ 1,542 | |
Contract value in separate accounts | [1] | 1,506 | 1,483 | |
Net amount at risk | [1] | $ 1 | $ 7 | |
Weighted average attained age | [1] | 65 years | 64 years | |
GMDB [Member] | Other [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 1,099 | $ 965 | |
Contract value in separate accounts | [1] | 1,075 | 942 | |
Net amount at risk | [1] | $ 50 | $ 86 | |
Weighted average attained age | [1] | 72 years | 71 years | |
GGU death benefit [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 1,118 | $ 1,047 | |
Contract value in separate accounts | [1] | 1,067 | 996 | |
Net amount at risk | [1] | $ 133 | $ 108 | |
Weighted average attained age | [1] | 70 years | 68 years | |
GMIB [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 233 | $ 245 | |
Contract value in separate accounts | [1] | 216 | 227 | |
Net amount at risk | [1] | $ 7 | $ 13 | |
Weighted average attained age | [1] | 69 years | 68 years | |
GMWB [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 46,883 | $ 42,086 | |
Contract value in separate accounts | [1] | 46,759 | 41,924 | |
Net amount at risk | [1] | $ 130 | $ 291 | |
Weighted average attained age | [1] | 67 years | 66 years | |
GMWB [Member] | GMWB standard benefit [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 2,508 | $ 2,650 | |
Contract value in separate accounts | [1] | 2,500 | 2,642 | |
Net amount at risk | [1] | $ 1 | $ 2 | |
Weighted average attained age | [1] | 71 years | 70 years | |
GMWB [Member] | GMWB for life [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 44,375 | $ 39,436 | |
Contract value in separate accounts | [1] | 44,259 | 39,282 | |
Net amount at risk | [1] | $ 129 | $ 289 | [2] |
Weighted average attained age | [1] | 67 years | 66 years | |
GMAB [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 3,086 | $ 3,484 | |
Contract value in separate accounts | [1] | 3,083 | 3,476 | |
Net amount at risk | [1] | $ 0 | $ 21 | |
Weighted average attained age | [1] | 59 years | 59 years | |
[1] | Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table. | |||
[2] | Amount revised to reflect updated contractholder mortality assumptions as of December 31, 2016. |
Variable Annuity and Insuranc68
Variable Annuity and Insurance Guarantees (UL Secondary Guarantees) (Details) - UL secondary guarantees [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Insurance Guarantees by Benefit Type | ||
Net amount at risk | $ 6,460 | $ 6,376 |
Weighted average attained age | 65 years | 64 years |
Variable Annuity and Insuranc69
Variable Annuity and Insurance Guarantees (Liability Rollforward) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
GMDB & GGU [Member] | ||||
Changes in additional liabilities for variable annuity and insurance guarantees | ||||
Balance at the beginning of the period | $ 16 | $ 14 | $ 9 | |
Incurred claims | 5 | 11 | 10 | |
Paid claims | (4) | (9) | (5) | |
Balance at the end of the period | 17 | 16 | 14 | |
GMIB [Member] | ||||
Changes in additional liabilities for variable annuity and insurance guarantees | ||||
Balance at the beginning of the period | 8 | 8 | 7 | |
Incurred claims | 1 | 1 | ||
Paid claims | (2) | (1) | ||
Balance at the end of the period | 6 | 8 | 8 | |
GMWB [Member] | ||||
Changes in additional liabilities for variable annuity and insurance guarantees | ||||
Balance at the beginning of the period | [1] | 1,017 | 1,057 | 693 |
Incurred claims | [1] | (554) | (40) | 364 |
Balance at the end of the period | [1] | 463 | 1,017 | 1,057 |
GMAB [Member] | ||||
Changes in additional liabilities for variable annuity and insurance guarantees | ||||
Balance at the beginning of the period | [1] | (24) | 0 | (41) |
Incurred claims | [1] | (56) | (23) | 41 |
Paid claims | [1] | (1) | ||
Balance at the end of the period | [1] | (80) | (24) | 0 |
UL [Member] | ||||
Changes in additional liabilities for variable annuity and insurance guarantees | ||||
Balance at the beginning of the period | 434 | 332 | 263 | |
Incurred claims | 84 | 127 | 92 | |
Paid claims | (29) | (25) | (23) | |
Balance at the end of the period | $ 489 | $ 434 | $ 332 | |
[1] | The incurred claims for GMWB and GMAB represent the change in the fair value of the liabilities (contra liabilities) less paid claims. |
Variable Annuity and Insuranc70
Variable Annuity and Insurance Guarantees (Separate Account Balance by Type) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Mutual funds | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | $ 74,676 | $ 69,090 |
Equity [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | 46,038 | 40,622 |
Bond [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | 23,529 | 23,142 |
Other [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | $ 5,109 | $ 5,326 |
Lines of Credit (AMP Lender) (D
Lines of Credit (AMP Lender) (Details) - Ameriprise Financial [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Line of credit agreement, RVS as borrower[Member] | ||
Lines of Credit Facility | ||
Maximum borrowing as percentage of the borrower's statutory admitted assets excluding separate accounts as of prior year end | 3.00% | |
Outstanding on line of credit with Ameriprise Financial as lender | $ 0 | $ 0 |
Prepayment penalty | $ 0 | |
Line of credit agreement, RVSNY as borrower[Member] | ||
Lines of Credit Facility | ||
Maximum borrowing as percentage of the borrower's statutory admitted assets excluding separate accounts as of prior year end | 3.00% | |
Maximum borrowing capacity as amount | $ 25,000,000 | |
Outstanding on line of credit with Ameriprise Financial as lender | 0 | 0 |
Prepayment penalty | 0 | |
Line of credit agreement, RTA as borrower [Member] | ||
Lines of Credit Facility | ||
Maximum borrowing capacity as amount | 100,000,000 | |
Outstanding on line of credit with Ameriprise Financial as lender | $ 0 | $ 0 |
Lines of Credit (RSL Lender) (D
Lines of Credit (RSL Lender) (Details) - RiverSource Life Insurance Company [Member] - Loans receivable [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Line of Credit Facility | ||
Maximum borrowings as a percentage of the lender's statutory admitted assets | 3.00% | |
Percentage of additional interest to be accrued in the event of default | 1.00% | |
Outstanding on line of credit with Ameriprise Financial as borrower | $ 0 | $ 0 |
Short-term Borrowings (Details)
Short-term Borrowings (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Borrowings | ||
Amount of the liability including accrued interest | $ 200 | $ 200 |
Repurchase agreements [Member] | ||
Borrowings | ||
Amount of the liability including accrued interest | $ 50 | $ 50 |
Remaining maturity of outstanding amount | 1 month | 3 months |
Weighted average annualized interest rate | 1.40% | 0.90% |
Federal Home Loan Bank [Member] | ||
Borrowings | ||
Amount of the liability including accrued interest | $ 150 | $ 150 |
Remaining maturity of outstanding amount | 4 months | 4 months |
Weighted average annualized interest rate | 1.50% | 0.80% |
Residential mortgage backed securities [Member] | Repurchase agreements [Member] | ||
Borrowings | ||
Fair value of securities pledged | $ 43 | $ 33 |
Commercial mortgage backed securities [Member] | Repurchase agreements [Member] | ||
Borrowings | ||
Fair value of securities pledged | 8 | 19 |
Commercial mortgage backed securities [Member] | Federal Home Loan Bank [Member] | ||
Borrowings | ||
Fair value of securities pledged | $ 750 | $ 771 |
Fair Values of Assets and Lia74
Fair Values of Assets and Liabilities (Assets & Liabilities Reported at FV) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | ||||
Assets | |||||
Available-for-sale securities: fixed maturities | $ 22,155 | $ 22,682 | |||
Common stocks | 0 | 10 | |||
Separate account assets at NAV | 82,560 | 76,298 | |||
Liabilities | |||||
Liability | [1] | 3,668 | 4,084 | ||
Asset | [2] | 3,483 | 3,346 | ||
Cumulative decrease in embedded derivatives due to nonperformance | (399) | (498) | |||
GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities | |||||
Liability | 443 | 880 | |||
Asset | 492 | 266 | |||
Recurring basis [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 22,155 | 22,682 | |||
Common stocks | 10 | ||||
Cash equivalents | 1,030 | 302 | |||
Other assets | 3,483 | 3,346 | |||
Separate account assets at NAV | [3] | 82,560 | 76,298 | ||
Total assets at fair value | 109,228 | 102,638 | |||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 557 | [4] | 1,083 | [5] | |
Other liabilities | 3,111 | 3,001 | |||
Total liabilities at fair value | 3,668 | 4,084 | |||
Recurring basis [Member] | Interest rate derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1,081 | 1,735 | |||
Liabilities | |||||
Other liabilities | 415 | 965 | |||
Recurring basis [Member] | Equity derivative contracts [Member] | |||||
Assets | |||||
Other assets | 2,367 | 1,530 | |||
Liabilities | |||||
Other liabilities | 2,671 | 1,989 | |||
Recurring basis [Member] | Foreign exchange derivative contracts [Member] | |||||
Assets | |||||
Other assets | 35 | 80 | |||
Liabilities | |||||
Other liabilities | 23 | 47 | |||
Recurring basis [Member] | Credit derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1 | ||||
Liabilities | |||||
Other liabilities | 2 | ||||
Recurring basis [Member] | Indexed annuity embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 5 | 5 | |||
Recurring basis [Member] | IUL embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 601 | 464 | |||
Recurring basis [Member] | GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | (49) | [6] | 614 | [7] | |
Recurring basis [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 13,233 | 14,112 | |||
Recurring basis [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 3,011 | 3,415 | |||
Recurring basis [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 3,569 | 2,857 | |||
Recurring basis [Member] | State and municipal obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 1,314 | 1,229 | |||
Recurring basis [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 728 | 805 | |||
Recurring basis [Member] | Foreign government bonds and obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 299 | 261 | |||
Recurring basis [Member] | U.S. government and agency obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 1 | 3 | |||
Recurring basis [Member] | Level 1 [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 1 | 3 | |||
Common stocks | 6 | ||||
Other assets | 63 | 43 | |||
Total assets at fair value | 64 | 52 | |||
Liabilities | |||||
Other liabilities | 6 | 5 | |||
Total liabilities at fair value | 6 | 5 | |||
Recurring basis [Member] | Level 1 [Member] | Interest rate derivative contracts [Member] | |||||
Liabilities | |||||
Other liabilities | 1 | 1 | |||
Recurring basis [Member] | Level 1 [Member] | Equity derivative contracts [Member] | |||||
Assets | |||||
Other assets | 62 | 43 | |||
Liabilities | |||||
Other liabilities | 5 | 2 | |||
Recurring basis [Member] | Level 1 [Member] | Foreign exchange derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1 | ||||
Liabilities | |||||
Other liabilities | 2 | ||||
Recurring basis [Member] | Level 1 [Member] | U.S. government and agency obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 1 | 3 | |||
Recurring basis [Member] | Level 2 [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 20,995 | 21,394 | |||
Common stocks | 4 | ||||
Cash equivalents | 1,030 | 302 | |||
Other assets | 3,420 | 3,303 | |||
Total assets at fair value | 25,445 | 25,003 | |||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 5 | 5 | |||
Other liabilities | 3,105 | 2,996 | |||
Total liabilities at fair value | 3,110 | 3,001 | |||
Recurring basis [Member] | Level 2 [Member] | Interest rate derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1,081 | 1,735 | |||
Liabilities | |||||
Other liabilities | 414 | 964 | |||
Recurring basis [Member] | Level 2 [Member] | Equity derivative contracts [Member] | |||||
Assets | |||||
Other assets | 2,305 | 1,487 | |||
Liabilities | |||||
Other liabilities | 2,666 | 1,987 | |||
Recurring basis [Member] | Level 2 [Member] | Foreign exchange derivative contracts [Member] | |||||
Assets | |||||
Other assets | 34 | 80 | |||
Liabilities | |||||
Other liabilities | 23 | 45 | |||
Recurring basis [Member] | Level 2 [Member] | Credit derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1 | ||||
Liabilities | |||||
Other liabilities | 2 | ||||
Recurring basis [Member] | Level 2 [Member] | Indexed annuity embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 5 | 5 | |||
Recurring basis [Member] | Level 2 [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 12,161 | 12,955 | |||
Recurring basis [Member] | Level 2 [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 2,924 | 3,300 | |||
Recurring basis [Member] | Level 2 [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 3,569 | 2,857 | |||
Recurring basis [Member] | Level 2 [Member] | State and municipal obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 1,314 | 1,229 | |||
Recurring basis [Member] | Level 2 [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 728 | 792 | |||
Recurring basis [Member] | Level 2 [Member] | Foreign government bonds and obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 299 | 261 | |||
Recurring basis [Member] | Level 3 [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 1,159 | 1,285 | |||
Total assets at fair value | 1,159 | 1,285 | |||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 552 | 1,078 | |||
Total liabilities at fair value | 552 | 1,078 | |||
Recurring basis [Member] | Level 3 [Member] | IUL embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 601 | 464 | |||
Recurring basis [Member] | Level 3 [Member] | GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | (49) | 614 | |||
Recurring basis [Member] | Level 3 [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | 1,072 | 1,157 | |||
Recurring basis [Member] | Level 3 [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | $ 87 | 115 | |||
Recurring basis [Member] | Level 3 [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: fixed maturities | $ 13 | ||||
[1] | The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and indexed annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. | ||||
[2] | The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. | ||||
[3] | Amounts are comprised of certain 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. | ||||
[4] | The Company’s adjustment for nonperformance risk resulted in a $(399) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2017. | ||||
[5] | The Company’s adjustment for nonperformance risk resulted in a $(498) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2016. | ||||
[6] | The fair value of the GMWB and GMAB embedded derivatives included $443 million of individual contracts in a liability position and $492 million of individual contracts in an asset position as of December 31, 2017 | ||||
[7] | The fair value of the GMWB and GMAB embedded derivatives included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position as of December 31, 2016. |
Fair Values of Assets and Lia75
Fair Values of Assets and Liabilities (Level 3 Rollforwards-Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Changes in unrealized gains (losses) relating to assets and liabilities held at the end of the period included in: | ||||
Level 1 to Level 2 Transfers, Assets | $ 0 | $ 0 | $ 0 | |
Level 2 to Level 1 Transfers, Assets | 0 | 0 | 0 | |
Corporate debt securities [Member] | ||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | ||||
Balance at the beginning of the period | 1,157 | 1,235 | 1,353 | |
Total gains (losses) included in net income | 1 | 1 | (1) | |
Total gains (losses) included in other comprehensive income (loss) | (8) | (1) | (21) | |
Purchases | 124 | 47 | 153 | |
Settlements | (202) | (126) | (238) | |
Transfers into Level 3 | 1 | |||
Transfers out of Level 3 | (11) | |||
Balance at the end of the period | 1,072 | 1,157 | 1,235 | |
Changes in unrealized gains (losses) relating to assets and liabilities held at the end of the period included in: | ||||
Net investment income | 1 | 1 | (1) | |
Residential mortgage backed securities [Member] | ||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | ||||
Balance at the beginning of the period | 115 | 21 | 9 | |
Total gains (losses) included in other comprehensive income (loss) | 1 | (1) | ||
Purchases | 67 | 134 | 67 | |
Settlements | (7) | (9) | (4) | |
Transfers out of Level 3 | (89) | (30) | (51) | |
Balance at the end of the period | 87 | 115 | 21 | |
Commercial mortgage backed securities [Member] | ||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | ||||
Balance at the beginning of the period | 0 | 3 | 90 | |
Purchases | 36 | 42 | 32 | |
Settlements | (3) | (7) | ||
Transfers into Level 3 | 6 | |||
Transfers out of Level 3 | (36) | (42) | (118) | |
Balance at the end of the period | 0 | 0 | 3 | |
Asset backed securities [Member] | ||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | ||||
Balance at the beginning of the period | 13 | 133 | 151 | |
Total gains (losses) included in net income | 1 | 1 | ||
Total gains (losses) included in other comprehensive income (loss) | (2) | |||
Purchases | 49 | 16 | ||
Settlements | (13) | (1) | (2) | |
Transfers into Level 3 | 11 | 12 | 14 | |
Transfers out of Level 3 | (60) | (132) | (45) | |
Balance at the end of the period | 0 | 13 | 133 | |
Changes in unrealized gains (losses) relating to assets and liabilities held at the end of the period included in: | ||||
Net investment income | 1 | |||
Total Available-for-sale securities: fixed maturities [Member] | ||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | ||||
Balance at the beginning of the period | 1,285 | 1,392 | 1,603 | |
Total gains (losses) included in net income | [1] | 1 | 2 | 0 |
Total gains (losses) included in other comprehensive income (loss) | (7) | (2) | (23) | |
Purchases | 276 | 223 | 268 | |
Settlements | (222) | (139) | (251) | |
Transfers into Level 3 | 11 | 13 | 20 | |
Transfers out of Level 3 | (185) | (204) | (225) | |
Balance at the end of the period | 1,159 | 1,285 | 1,392 | |
Changes in unrealized gains (losses) relating to assets and liabilities held at the end of the period included in: | ||||
Net investment income | [1] | 1 | 1 | 0 |
Common stocks [Member] | ||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | ||||
Balance at the beginning of the period | 0 | 0 | 1 | |
Total gains (losses) included in other comprehensive income (loss) | (1) | |||
Transfers into Level 3 | 4 | |||
Transfers out of Level 3 | (4) | |||
Balance at the end of the period | 0 | 0 | 0 | |
Other derivative contracts [Member] | ||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | ||||
Balance at the beginning of the period | $ 0 | 0 | ||
Total gains (losses) included in net income | [2] | (2) | ||
Purchases | 2 | |||
Balance at the end of the period | 0 | $ 0 | ||
Changes in unrealized gains (losses) relating to assets and liabilities held at the end of the period included in: | ||||
Net investment income | [2] | $ (2) | ||
[1] | Included in net investment income in the Consolidated Statements of Income. | |||
[2] | Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. |
Fair Values of Assets and Lia76
Fair Values of Assets and Liabilities (Level 3 Rollforwards-Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Changes in unrealized gains (losses) relating to assets and liabilities held at the end of the period included in: | ||||
Level 1 to Level 2 Transfers, Liabilities | $ 0 | $ 0 | $ 0 | |
Level 2 to Level 1 Transfers, Liabilities | 0 | 0 | 0 | |
Net increase (decrease) to pretax income of nonperformance risk on fair value of embedded derivative liability | (71) | 98 | 74 | |
IUL embedded derivatives [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at the beginning of the period | 464 | 364 | 242 | |
Total (gains) losses included in net income | [1] | 87 | 13 | 27 |
Issues | 92 | 115 | 114 | |
Settlements | (42) | (28) | (19) | |
Balance at the end of the period | 601 | 464 | 364 | |
Changes in unrealized gains (losses) relating to assets and liabilities held at the end of the period included in: | ||||
Changes in unrealized (gains) losses relating to liabilities held at the end of the period | [1] | 87 | 13 | 27 |
GMWB and GMAB embedded derivatives [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at the beginning of the period | 614 | 851 | 479 | |
Total (gains) losses included in net income | [2] | (977) | (511) | 105 |
Issues | 326 | 295 | 271 | |
Settlements | (12) | (21) | (4) | |
Balance at the end of the period | (49) | 614 | 851 | |
Changes in unrealized gains (losses) relating to assets and liabilities held at the end of the period included in: | ||||
Changes in unrealized (gains) losses relating to liabilities held at the end of the period | [2] | (946) | (448) | 127 |
PAB, FPB and claims [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at the beginning of the period | 1,078 | 1,215 | 721 | |
Total (gains) losses included in net income | (890) | (498) | 132 | |
Issues | 418 | 410 | 385 | |
Settlements | (54) | (49) | (23) | |
Balance at the end of the period | 552 | 1,078 | 1,215 | |
Changes in unrealized gains (losses) relating to assets and liabilities held at the end of the period included in: | ||||
Changes in unrealized (gains) losses relating to liabilities held at the end of the period | $ (859) | $ (435) | $ 154 | |
[1] | Included in interest credited to fixed accounts in the Consolidated Statements of Income | |||
[2] | Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. |
Fair Values of Assets and Lia77
Fair Values of Assets and Liabilities (Unobservable Inputs) (Details) - Discounted cash flow technique [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
IUL embedded derivatives [Member] | |||
Fair values of assets and liabilities | |||
Liabilities at fair value | $ 601 | $ 464 | |
Nonperformance risk (as a percent) | [1] | 0.71% | 0.82% |
GMWB and GMAB embedded derivatives [Member] | |||
Fair values of assets and liabilities | |||
Liabilities at fair value | $ (49) | $ 614 | |
Nonperformance risk (as a percent) | [1] | 0.71% | 0.82% |
GMWB and GMAB embedded derivatives [Member] | Minimum [Member] | |||
Fair values of assets and liabilities | |||
Utilization of guaranteed withdrawals (as a percent) | [2] | 0.00% | 0.00% |
Surrender rate (as a percent) | 0.10% | 0.10% | |
Market volatility rate (as a percent) | [3] | 3.70% | 5.30% |
GMWB and GMAB embedded derivatives [Member] | Maximum [Member] | |||
Fair values of assets and liabilities | |||
Utilization of guaranteed withdrawals (as a percent) | [2] | 42.00% | 75.60% |
Surrender rate (as a percent) | 74.70% | 66.40% | |
Market volatility rate (as a percent) | [3] | 16.10% | 21.20% |
Corporate debt securities (private placement) [Member] | |||
Fair values of assets and liabilities | |||
Assets at fair value | $ 1,070 | $ 1,154 | |
Corporate debt securities (private placement) [Member] | Minimum [Member] | |||
Fair values of assets and liabilities | |||
Yield/spread to U.S. Treasuries (as a percent) | 0.70% | 0.90% | |
Corporate debt securities (private placement) [Member] | Maximum [Member] | |||
Fair values of assets and liabilities | |||
Yield/spread to U.S. Treasuries (as a percent) | 2.30% | 2.50% | |
Corporate debt securities (private placement) [Member] | Weighted average [Member] | |||
Fair values of assets and liabilities | |||
Yield/spread to U.S. Treasuries (as a percent) | 1.10% | 1.30% | |
[1] | The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. | ||
[2] | The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. | ||
[3] | Market volatility is implied volatility of fund of funds and managed volatility funds |
Fair Values of Assets and Lia78
Fair Values of Assets and Liabilities Fair Value of Assets & Liabilities (Non-Recurring) (Details) - VIEs, not primary beneficiary [Member] - RTA [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Assets and liabilities measured at fair value | ||
Affordable housing partnerships, impairments | $ 64 | |
Affordable housing partnerships, carrying value | 408 | $ 482 |
Nonrecurring basis [Member] | Level 3 [Member] | ||
Assets and liabilities measured at fair value | ||
Affordable housing partnerships, carrying value | $ 166 |
Fair Values of Assets and Lia79
Fair Values of Assets and Liabilities ( Financial Instruments Not at FV) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial Assets | |||
Mortgage loans, net | $ 2,619 | $ 2,874 | |
Policy loans | 845 | 830 | |
Other investments | 900 | 998 | |
Financial Liabilities | |||
Policyholder account balances, future policy benefits and claims | 29,178 | 29,514 | |
Short-term borrowings | 200 | 200 | |
Other liabilities | 4,674 | 4,253 | |
Separate account liabilities measured at NAV | 82,560 | 76,298 | |
Carrying value [Member] | |||
Financial Assets | |||
Mortgage loans, net | 2,619 | 2,874 | |
Policy loans | 845 | 830 | |
Other investments | 408 | 402 | |
Financial Liabilities | |||
Policyholder account balances, future policy benefits and claims | 10,246 | 10,906 | |
Short-term borrowings | 200 | 200 | |
Other liabilities | 123 | 177 | |
Separate account liabilities measured at NAV | 369 | 341 | |
Recurring basis [Member] | |||
Financial Assets | |||
Mortgage loans, net | 2,616 | 2,865 | |
Policy loans | 801 | 807 | |
Other investments | 409 | 407 | |
Financial Liabilities | |||
Policyholder account balances, future policy benefits and claims | 10,755 | 11,417 | |
Short-term borrowings | 200 | 200 | |
Other liabilities | 119 | 169 | |
Separate account liabilities measured at NAV | [1] | 369 | 341 |
Recurring basis [Member] | Level 2 [Member] | |||
Financial Assets | |||
Other investments | 373 | 364 | |
Financial Liabilities | |||
Short-term borrowings | 200 | 200 | |
Recurring basis [Member] | Level 3 [Member] | |||
Financial Assets | |||
Mortgage loans, net | 2,616 | 2,865 | |
Policy loans | 801 | 807 | |
Other investments | 36 | 43 | |
Financial Liabilities | |||
Policyholder account balances, future policy benefits and claims | 10,755 | 11,417 | |
Other liabilities | $ 119 | $ 169 | |
[1] | Amounts are comprised of certain 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. |
Related Party Transactions (Tex
Related Party Transactions (Text) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transactions | ||||
Cash dividends paid to Ameriprise Financial | $ 700 | $ 1,000 | $ 800 | |
CMIA [Member] | ||||
Related Party Transactions | ||||
Amount received for provision of services | 322 | 313 | 311 | |
CMID [Member] | ||||
Related Party Transactions | ||||
Amount received for provision of services | 167 | 158 | 162 | |
CMIS [Member] | ||||
Related Party Transactions | ||||
Amount received for provision of services | 42 | 40 | 41 | |
Ameriprise Financial and affiliated companies [Member] | ||||
Related Party Transactions | ||||
Charges for use of joint facilities, technology support, marketing services and other services | 390 | 400 | 437 | |
Ameriprise Financial [Member] | ||||
Related Party Transactions | ||||
Cash dividends paid to Ameriprise Financial | 700 | 1,000 | $ 800 | |
Due to parent for federal income taxes | $ 105 | $ 168 | ||
Dividend declared February 20, 2018 | Ameriprise Financial [Member] | ||||
Related Party Transactions | ||||
Cash dividends paid to Ameriprise Financial | $ 200 |
Related Party Transactions (Div
Related Party Transactions (Dividend Table) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Related Party Transactions | ||||
Cash dividends paid to Ameriprise Financial | $ 700 | $ 1,000 | $ 800 | |
Ameriprise Financial [Member] | ||||
Related Party Transactions | ||||
Cash dividends paid to Ameriprise Financial | 700 | 1,000 | 800 | |
RiverSource Life of NY [Member] | ||||
Related Party Transactions | ||||
Cash dividends received by RiverSource Life Insurance Company | 50 | 50 | 25 | |
RTA [Member] | ||||
Related Party Transactions | ||||
Cash dividends received by RiverSource Life Insurance Company | 20 | 15 | 0 | |
RiverSource REO 1, LLC [Member] | ||||
Related Party Transactions | ||||
Cash dividends received by RiverSource Life Insurance Company | [1] | $ 0 | $ 31 | $ 0 |
[1] | RiverSource REO 1, LLC is a wholly owned subsidiary of RiverSource Life Insurance Company which holds foreclosed mortgage loans and real estate. |
Regulatory Requirements (Text)
Regulatory Requirements (Text) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Insurance [Abstract] | ||
Permitted practice impact to statutory surplus | $ 3 | |
Statutory unassigned surplus (deficit) | $ (306) | $ 275 |
Percentage of previous year-end statutory capital and surplus | 10.00% | |
Statutory capital and surplus | $ 2,400 | 3,000 |
Assets held by insurance regulators | $ 4 | $ 4 |
Regulatory Requirements (Table)
Regulatory Requirements (Table) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | |||
Statutory net gain from operations | $ 958 | $ 834 | $ 1,033 |
Statutory net income (loss) | $ 222 | $ 322 | $ 633 |
Offsetting Assets and Liabili84
Offsetting Assets and Liabilities (Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivatives: | |||
Gross amounts of recognized assets | [1] | $ 3,483 | $ 3,346 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (2,615) | (2,670) |
Cash collateral | (736) | (377) | |
Securities collateral | (88) | (235) | |
Net amount | 44 | 64 | |
OTC derivatives [Member] | |||
Derivatives: | |||
Gross amounts of recognized assets | 3,440 | 2,822 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (2,599) | (2,161) |
Cash collateral | (736) | (374) | |
Securities collateral | (88) | (235) | |
Net amount | 17 | 52 | |
OTC cleared derivatives [Member] | |||
Derivatives: | |||
Gross amounts of recognized assets | 21 | 510 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (15) | (507) |
Cash collateral | 0 | (3) | |
Net amount | 6 | 0 | |
Exchange-traded derivatives [Member] | |||
Derivatives: | |||
Gross amounts of recognized assets | 22 | 14 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (1) | (2) |
Net amount | $ 21 | $ 12 | |
[1] | The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. | ||
[2] | 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 Consolidated Balance Sheets. |
Offsetting Assets and Liabili85
Offsetting Assets and Liabilities (Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivatives | |||
Gross amounts of recognized liabilities | [1] | $ 3,668 | $ 4,084 |
Repurchase agreements | |||
Gross amounts of recognized liabilities | 50 | 50 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Securities collateral | (50) | (50) | |
Net amount | 0 | 0 | |
Total | |||
Gross amounts of recognized liabilities | 3,161 | 3,051 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (2,615) | (2,670) |
Cash collateral | (1) | (8) | |
Securities collateral | (542) | (362) | |
Net amount | 3 | 11 | |
OTC derivatives [Member] | |||
Derivatives | |||
Gross amounts of recognized liabilities | 3,095 | 2,481 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (2,599) | (2,161) |
Cash collateral | (1) | ||
Securities collateral | (492) | (312) | |
Net amount | 3 | 8 | |
OTC cleared derivatives [Member] | |||
Derivatives | |||
Gross amounts of recognized liabilities | 15 | 515 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (15) | (507) |
Cash collateral | 0 | (8) | |
Net amount | 0 | 0 | |
Exchange-traded derivatives [Member] | |||
Derivatives | |||
Gross amounts of recognized liabilities | 1 | 5 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (1) | (2) |
Net amount | 0 | 3 | |
Total derivatives [Member] | |||
Derivatives | |||
Gross amounts of recognized liabilities | 3,111 | 3,001 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (2,615) | (2,670) |
Cash collateral | (1) | (8) | |
Securities collateral | (492) | (312) | |
Net amount | $ 3 | $ 11 | |
[1] | The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and indexed annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. | ||
[2] | 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 Consolidated Balance Sheets. |
Derivatives and Hedging Activ86
Derivatives and Hedging Activities (Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivatives and Hedging Activities | |||
Notional amount | $ 126,600 | $ 137,211 | |
Asset | [1] | 3,483 | 3,346 |
Liability | [2] | 3,668 | 4,084 |
Fair value of investment securities received as collateral | 89 | 235 | |
Fair value of investment securities received as collateral that can be repledged | 89 | 118 | |
Fair value of investment securities received as collateral that were repledged | 0 | 19 | |
GMWB and GMAB embedded derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Asset | 492 | 266 | |
Liability | 443 | 880 | |
Total embedded derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Asset | 0 | 0 | |
Derivatives not designated as hedging instruments [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 126,600 | 137,211 | |
Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 64,790 | 71,019 | |
Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 56,649 | 60,419 | |
Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 715 | 1,039 | |
Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 3,996 | 4,494 | |
Derivatives not designated as hedging instruments [Member] | Other contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 450 | 240 | |
Other Assets [Member] | Derivatives not designated as hedging instruments [Member] | |||
Derivatives and Hedging Activities | |||
Asset | [1] | 3,483 | 3,346 |
Other Assets [Member] | Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | |||
Derivatives and Hedging Activities | |||
Asset | [1] | 1,081 | 1,735 |
Other Assets [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Derivatives and Hedging Activities | |||
Asset | [1] | 2,367 | 1,530 |
Other Assets [Member] | Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | |||
Derivatives and Hedging Activities | |||
Asset | [1] | 1 | |
Other Assets [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivatives and Hedging Activities | |||
Asset | [1] | 35 | 80 |
Other Liabilities [Member] | Derivatives not designated as hedging instruments [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2] | 3,111 | 3,001 |
Other Liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2] | 415 | 965 |
Other Liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2] | 2,671 | 1,989 |
Other Liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2] | 2 | |
Other Liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2] | 23 | 47 |
PAB, FPB and claims [Member] | GMWB and GMAB embedded derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2],[3] | (49) | 614 |
PAB, FPB and claims [Member] | IUL embedded derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2] | 601 | 464 |
PAB, FPB and claims [Member] | Indexed annuity embedded derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2] | 5 | 5 |
PAB, FPB and claims [Member] | Total embedded derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2] | $ 557 | $ 1,083 |
[1] | The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. | ||
[2] | The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and indexed annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. | ||
[3] | The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2017 included $443 million of individual contracts in a liability position and $492 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2016 included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position. |
Derivatives and Hedging Activ87
Derivatives and Hedging Activities (Income Statement) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest credited to fixed accounts [Member] | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Amount of gain (loss) on derivatives recognized in income | $ 30 | $ 35 | $ (17) |
Interest credited to fixed accounts [Member] | IUL embedded derivatives [Member] | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Amount of gain (loss) on derivatives recognized in income | (45) | 15 | (8) |
Interest credited to fixed accounts [Member] | Indexed annuity embedded derivatives [Member] | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Amount of gain (loss) on derivatives recognized in income | 1 | ||
Benefits, claims, losses and settlement expenses [Member] | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Amount of gain (loss) on derivatives recognized in income | (387) | (582) | (437) |
Benefits, claims, losses and settlement expenses [Member] | GMWB and GMAB embedded derivatives [Member] | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Amount of gain (loss) on derivatives recognized in income | 663 | 237 | (372) |
Derivatives not designated as hedging instruments [Member] | Interest credited to fixed accounts [Member] | Equity contracts [Member] | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Amount of gain (loss) on derivatives recognized in income | 75 | 20 | (10) |
Derivatives not designated as hedging instruments [Member] | Benefits, claims, losses and settlement expenses [Member] | Interest rate contracts [Member] | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Amount of gain (loss) on derivatives recognized in income | 3 | 38 | 232 |
Derivatives not designated as hedging instruments [Member] | Benefits, claims, losses and settlement expenses [Member] | Equity contracts [Member] | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Amount of gain (loss) on derivatives recognized in income | (1,006) | (857) | (308) |
Derivatives not designated as hedging instruments [Member] | Benefits, claims, losses and settlement expenses [Member] | Credit contracts [Member] | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Amount of gain (loss) on derivatives recognized in income | (22) | 2 | (1) |
Derivatives not designated as hedging instruments [Member] | Benefits, claims, losses and settlement expenses [Member] | Foreign exchange contracts [Member] | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Amount of gain (loss) on derivatives recognized in income | (23) | 13 | |
Derivatives not designated as hedging instruments [Member] | Benefits, claims, losses and settlement expenses [Member] | Other contracts [Member] | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Amount of gain (loss) on derivatives recognized in income | $ (2) | $ (2) | $ (1) |
Derivatives and Hedging Activ88
Derivatives and Hedging Activities (Option Rec/Pay) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Summary of option premiums payable and receivable | |
Premiums payable for derivative option contracts | $ 1,558 |
Premiums receivable for derivative option contracts | 710 |
2018 [Member] | |
Summary of option premiums payable and receivable | |
Premiums payable for derivative option contracts | 213 |
Premiums receivable for derivative option contracts | 129 |
2019 [Member] | |
Summary of option premiums payable and receivable | |
Premiums payable for derivative option contracts | 276 |
Premiums receivable for derivative option contracts | 170 |
2020 [Member] | |
Summary of option premiums payable and receivable | |
Premiums payable for derivative option contracts | 198 |
Premiums receivable for derivative option contracts | 98 |
2021 [Member] | |
Summary of option premiums payable and receivable | |
Premiums payable for derivative option contracts | 168 |
Premiums receivable for derivative option contracts | 107 |
2022 [Member] | |
Summary of option premiums payable and receivable | |
Premiums payable for derivative option contracts | 231 |
Premiums receivable for derivative option contracts | 147 |
2023-2026 [Member] | |
Summary of option premiums payable and receivable | |
Premiums payable for derivative option contracts | 472 |
Premiums receivable for derivative option contracts | $ 59 |
Derivatives and Hedging Activ89
Derivatives and Hedging Activities (Cash Flow Hedges and Credit Risk) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
General Cash Flow Hedge Information [Abstract] | ||
Derivatives designated as cash flow hedges | $ 0 | |
Estimated reclassification of net pretax losses on cash flow hedges from accumulated other comprehensive income within the next twelve months | $ 2 | |
Longest period of time over which the entity hedges exposure to the variability in future cash flows | 1 year | |
Derivatives liabilities, credit risk related contingent features | ||
Aggregate fair value of all derivative instruments containing credit risk features | $ 299 | $ 206 |
Aggregate fair value of assets posted as collateral | 296 | 198 |
Additional fair value of assets needed to settle derivative liabilities | $ 3 | $ 8 |
Shareholder's Equity Comprehens
Shareholder's Equity Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent [Abstract] | ||||
Net unrealized securities gains (losses) arising during the period, pretax | [1] | $ 210 | $ 350 | $ (997) |
Reclassification of net securities (gains) losses included in net income, pretax | [2] | (44) | (17) | (6) |
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, pretax | (180) | (242) | 480 | |
Net unrealized securities gains (losses), pretax | (14) | 91 | (523) | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax, Portion Attributable to Parent [Abstract] | ||||
Reclassification of net derivative (gains) losses included in net income, pretax | [3] | 5 | 6 | 6 |
Net unrealized derivative gains (losses), pretax | 5 | 6 | 6 | |
Other, pretax | (1) | |||
Total other comprehensive income (loss), pretax | (10) | 97 | (517) | |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax, Portion Attributable to Parent [Abstract] | ||||
Net unrealized securities gains (losses) arising during the period, tax | (61) | (124) | 351 | |
Reclassification of net securities (gains) losses included in net income, tax | 15 | 6 | 2 | |
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, tax | 57 | 85 | (168) | |
Net unrealized securities gains (losses), tax | 11 | (33) | 185 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax, Portion Attributable to Parent [Abstract] | ||||
Reclassification of net derivative (gains) losses included in net income, tax | (2) | (2) | (2) | |
Net unrealized derivatives gains (losses), tax | (2) | (2) | (2) | |
Other, tax | 0 | |||
Total other comprehensive income (loss), tax | 9 | (35) | 183 | |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent [Abstract] | ||||
Net unrealized securities gains (losses) arising during the period, net of tax | 149 | 226 | (646) | |
Reclassification of net securities (gains) losses included in net income, net of tax | (29) | (11) | (4) | |
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, net of tax | (123) | (157) | 312 | |
Net unrealized securities gains (losses), net of tax | (3) | 58 | (338) | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent [Abstract] | ||||
Reclassification of net derivative (gains) losses included in net income, net of tax | 3 | 4 | 4 | |
Net unrealized derivatives gains (losses), net of tax | 3 | 4 | 4 | |
Other, net of tax | (1) | 0 | 0 | |
Total other comprehensive income (loss), net of tax | $ (1) | $ 62 | $ (334) | |
[1] | Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period. | |||
[2] | Reclassification amounts are recorded in net realized investment gains (losses). | |||
[3] | Reclassification amounts are recorded in net investment income. |
Shareholder's Equity (Reclassif
Shareholder's Equity (Reclassifications) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | $ 457 | $ 395 | $ 729 | |||
OCI before reclassifications | 25 | 69 | (334) | |||
Amounts reclassified from AOCI | (26) | (7) | 0 | |||
Total OCI | (1) | 62 | (334) | |||
Ending balance | 456 | 457 | 395 | |||
Net unrealized securities gains (losses) [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | 461 | [1] | 403 | [1] | 741 | |
OCI before reclassifications | 26 | 69 | (334) | |||
Amounts reclassified from AOCI | (29) | (11) | (4) | |||
Total OCI | (3) | 58 | (338) | |||
Ending balance | [1] | 458 | 461 | 403 | ||
Noncredit related impairments on securities and net unrealized securities losses on previously impaired securities | 0 | 0 | 2 | |||
Net unrealized derivatives gains [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (4) | (8) | (12) | |||
Amounts reclassified from AOCI | 3 | 4 | 4 | |||
Total OCI | 3 | 4 | 4 | |||
Ending balance | (1) | (4) | (8) | |||
Other [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | 0 | 0 | 0 | |||
OCI before reclassifications | (1) | 0 | 0 | |||
Amounts reclassified from AOCI | 0 | 0 | 0 | |||
Total OCI | (1) | 0 | 0 | |||
Ending balance | $ (1) | $ 0 | $ 0 | |||
[1] | Includes nil, nil and $2 million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at December 31, 2017, 2016 and 2015, respectively. |
Income Taxes (Income Tax Compon
Income Taxes (Income Tax Components) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current income tax [Abstract] | |||
Federal | $ 158 | $ 18 | $ 234 |
State | 1 | 1 | 2 |
Total current income tax | 159 | 19 | 236 |
Deferred income tax [Abstract] | |||
Federal | 103 | 6 | (91) |
State | (2) | (1) | 0 |
Total deferred income tax | 101 | 5 | (91) |
Total income tax provision | 260 | $ 24 | $ 145 |
Expense related to the enactment of the Tax Act | 140 | ||
Remeasurement of deferred tax assets and liabilities to Tax Act's statutory 21% | 136 | ||
Remeasurement of tax contingencies related to the Tax Act | $ 4 |
Income Taxes (Reconcilation of
Income Taxes (Reconcilation of Income Tax Provision Rate) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Tax at U.S. statutory rate | 35.00% | 35.00% | 35.00% |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation Elements [Abstract] | |||
Impact of Tax Act (as a percent) | 14.00% | ||
Dividend received deduction (as a percent) | (12.90%) | (17.10%) | (14.00%) |
Low income housing tax credits (as a percent) | (7.40%) | (9.40%) | (6.10%) |
Foreign tax credit, net of addback (as a percent) | (2.70%) | (3.80%) | (0.00%) |
Taxes applicable to prior years (as a percent) | 0.00% | (2.00%) | 0.00% |
Other, net (as a percent) | 0.00% | 0.70% | (0.90%) |
Income tax provision (as a percent) | 26.00% | 3.40% | 14.00% |
Expense related to the enactment of the Tax Act | $ 140 | ||
Income tax expense related to Tax Act | 140 | ||
Tax Act provisional tax to remeasure deferred tax assets and liabilities | $ 136 |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income tax assets [Abstract] | ||
Liabilities for policyholder account balances, future policy benefits and claims | $ 599 | $ 1,144 |
Investment related | 251 | 236 |
Other | 29 | 13 |
Gross deferred income tax assets | 879 | 1,393 |
Less: valuation allowance | 11 | 8 |
Total deferred income tax assets | 868 | 1,385 |
Deferred income tax liabilities [Abstract] | ||
Deferred acquisition costs | 431 | 695 |
Net unrealized gains on Available-for-Sale securities | 150 | 251 |
Deferred sales inducement costs | 62 | 113 |
Depreciation | 13 | 23 |
Other | 1 | 0 |
Gross deferred income tax liabilities | 657 | 1,082 |
Net deferred income tax assets | 211 | $ 303 |
State and local jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 9 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | |||
Balance at the beginning of the period | $ 59 | $ 95 | $ 160 |
Additions based on tax positions related to the current year | 5 | 6 | 11 |
Additions for tax positions of prior years | 0 | 31 | 29 |
Reductions for tax positions of prior years | (50) | (68) | (105) |
Settlements | 0 | (5) | 0 |
Balance at the end of the period | 14 | 59 | 95 |
Operating Loss Carryforwards [Line Items] | |||
Unrecognized tax benefits, net of federal tax benefits that would affect the effective tax rate if recognized | 5 | 6 | 9 |
Net increase (decrease) in interest and penalties | (1) | (39) | $ 1 |
Payable related to accrued interest and penalties | 1 | $ 2 | |
Minimum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Decrease in gross unrecognized tax benefits due to resolution of IRS settlements and exams | 9 | ||
Maximum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Decrease in gross unrecognized tax benefits due to resolution of IRS settlements and exams | $ 10 |
Commitments, Guarantess and Con
Commitments, Guarantess and Contingencies (Commitments Table) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Commercial mortgage loans | $ 31 | $ 68 |
Residential mortgage loans | 0 | 185 |
Affordable housing and other real estate partnerships | 123 | 177 |
Total funding commitments | $ 154 | $ 430 |
Commitments, Guarantees and C97
Commitments, Guarantees and Contingencies (Guarantees and Contingencies Information)(Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Guaranty fund assessments [Member] | ||
Commitments and Contingencies | ||
Liability related to guaranty fund assessments | $ 14 | $ 16 |
Related premium tax asset | $ 12 | $ 14 |
Minimum [Member] | ||
Commitments and Contingencies | ||
Range of interest rate guarantees in fixed accounts | 1.00% | |
Maximum [Member] | ||
Commitments and Contingencies | ||
Range of interest rate guarantees in fixed accounts | 5.00% |