Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 24, 2021 | Jun. 30, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 033-28976 | ||
Entity Registrant Name | RIVERSOURCE LIFE INSURANCE COMPANY | ||
Entity Incorporation, State or Country Code | MN | ||
Entity Tax Identification Number | 41-0823832 | ||
Entity Address, Address Line One | 1099 Ameriprise Financial Center | ||
Entity Address, City or Town | Minneapolis | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55474 | ||
City Area Code | (612) | ||
Local Phone Number | 671-3131 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 100,000 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Public Float | $ 0 | ||
Entity Central Index Key | 0000727892 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments: | ||
Total investments | $ 26,976 | $ 25,158 |
Cash and cash equivalents | 3,285 | 1,275 |
Deferred acquisition costs | 2,508 | 2,673 |
Total assets | 134,424 | 121,943 |
Liabilities: | ||
Policyholder account balances, future policy benefits and claims | 33,986 | 30,504 |
Separate account liabilities | 87,556 | 82,425 |
Liabilities | $ 131,111 | $ 118,607 |
Common stock, par value (in dollars per share) | $ 30 | $ 30 |
Common stock, shares outstanding (in shares) | 100,000 | 100,000 |
Common stock, shares issued (in shares) | 100,000 | 100,000 |
Common stock, shares authorized (in shares) | 100,000 | 100,000 |
Shareholder's equity: | ||
Common stock, Value, Issued | $ 3 | $ 3 |
Additional paid-in capital | 2,466 | 2,466 |
Retained earnings | (76) | 293 |
Accumulated other comprehensive income, net of tax | 920 | 574 |
Total shareholder's equity | 3,313 | 3,336 |
Total liabilities and shareholder's equity | 134,424 | 121,943 |
Other investments, allowance for credit losses | 7 | 4 |
Investments | 26,976 | 25,158 |
Policyholder account balances, future policy benefits and claims | 33,986 | 30,504 |
Separate account liabilities | 87,556 | 82,425 |
Cash and cash equivalents | 3,285 | 1,275 |
Deferred acquisition costs | 2,508 | 2,673 |
Ameriprise Financial [Member] | ||
Investments: | ||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2020, $20,260; 2019, $19,111) (net of allowance for credit losses: 2020, $10 (1) ) | 22,855 | 20,902 |
Mortgage loans, at amortized cost (net of allowance for credit losses: 2020, $28; 2019, $17) | 2,574 | 2,655 |
Policy loans | 846 | 867 |
Other investments (net of allowance for credit losses: 2020, $7; 2019, $4) | 701 | 734 |
Cash and cash equivalents | 3,191 | 1,275 |
Reinsurance recoverables (net of allowance for credit losses: 2020, $8 (1) ) | 3,409 | 3,198 |
Other receivables | 1,613 | 1,713 |
Accrued investment income | 172 | 169 |
Deferred acquisition costs | 2,508 | 2,673 |
Other assets | 6,969 | 5,332 |
Separate account assets | 87,556 | 82,425 |
Liabilities: | ||
Policyholder account balances, future policy benefits and claims | 33,986 | 30,504 |
Short-term borrowings | 200 | 201 |
Long-term Debt | 500 | 0 |
Line of credit with Ameriprise Financial, Inc. | 0 | 50 |
Other liabilities | 6,887 | 5,427 |
Separate account liabilities | 87,556 | 82,425 |
Other receivables | 1,613 | 1,713 |
Accrued investment income | 172 | 169 |
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2020, $20,260; 2019, $19,111) (net of allowance for credit losses: 2020, $10 (1) ) | 22,855 | 20,902 |
Mortgage loans, net | 2,574 | 2,655 |
Policy loans | 846 | 867 |
Other investments (net of allowance for credit losses: 2020, $7; 2019, $4) | 701 | 734 |
Separate account assets | 87,556 | 82,425 |
Policyholder account balances, future policy benefits and claims | 33,986 | 30,504 |
Short-term borrowings | 200 | 201 |
Long-term Debt | 500 | 0 |
Other liabilities | 6,887 | 5,427 |
Separate account liabilities | 87,556 | 82,425 |
Line of credit with Ameriprise Financial, Inc. | 0 | 50 |
Other assets | 6,969 | 5,332 |
Cash and cash equivalents | 3,191 | 1,275 |
Reinsurance recoverables (net of allowance for credit losses: 2020, $8 (1) ) | 3,409 | 3,198 |
Deferred acquisition costs | 2,508 | 2,673 |
Consolidated investment entities[Member] | ||
Investments: | ||
Total investments | 1,918 | 0 |
Cash and cash equivalents | 94 | 0 |
Other receivables | 16 | 0 |
Other assets | 2 | 0 |
Liabilities: | ||
Long-term Debt | 1,913 | 0 |
Other liabilities | 69 | 0 |
Other receivables | 16 | 0 |
Investments | 1,918 | 0 |
Long-term Debt | 1,913 | 0 |
Other liabilities | 69 | 0 |
Other assets | 2 | 0 |
Cash and cash equivalents | $ 94 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Available for-Sale: Fixed maturities, amortized cost | $ 20,260 | $ 19,111 |
Mortgage loans, allowance for credit losses | 28 | 17 |
Other investments, allowance for credit losses | 7 | $ 4 |
Reinsurance recoverables, allowance for credit losses | $ 8 | |
Common stock, par value (in dollars per share) | $ 30 | $ 30 |
Common stock, shares issued (in shares) | 100,000 | 100,000 |
Common stock, shares authorized (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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||
Premiums | $ 341 | $ 397 | $ 396 |
Net investment income | 869 | 917 | 1,023 |
Policy and contract charges | 2,094 | 2,042 | 2,081 |
Other revenues | 482 | 464 | 411 |
Net realized investment gains (losses) | (10) | (2) | 10 |
Total revenues | 3,776 | 3,818 | 3,921 |
Benefits and expenses | |||
Benefits, claims, losses and settlement expenses | 1,805 | 1,804 | 1,373 |
Interest credited to fixed accounts | 644 | 669 | 674 |
Amortization of deferred acquisition costs | 264 | 133 | 255 |
Interest and Debt Expense | 5 | 0 | 0 |
Other insurance and operating expenses | 665 | 685 | 679 |
Total benefits and expenses | 3,383 | 3,291 | 2,981 |
Pretax income (loss) | 393 | 527 | 940 |
Income tax provision (benefit) | (45) | (60) | 35 |
Net income | $ 438 | $ 587 | $ 905 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 438 | $ 587 | $ 905 |
Other comprehensive income (loss), net of tax: | |||
Net unrealized gains (losses) on securities | 346 | 529 | (412) |
Net unrealized gains (losses) on derivatives | 0 | 0 | 1 |
Total other comprehensive income (loss), net of tax | 346 | 529 | (411) |
Total comprehensive income | $ 784 | $ 1,116 | $ 494 |
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 (loss) [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained earnings [Member] |
Beginning balance at Dec. 31, 2017 | $ 3,828 | $ 3 | $ 2,466 | $ 903 | $ 456 | ||
Comprehensive income: | |||||||
Net income | 905 | 905 | |||||
Other comprehensive income (loss), net of tax | (411) | (411) | |||||
Total comprehensive income | 494 | ||||||
Cash dividends to Ameriprise Financial, Inc. | (750) | (750) | |||||
Ending balance at Dec. 31, 2018 | 3,572 | 3 | 2,466 | 1,058 | 45 | ||
Ending balance (Current expected credit losses guidance [Member]) at Dec. 31, 2018 | $ (2) | $ (2) | |||||
Comprehensive income: | |||||||
Net income | 587 | 587 | |||||
Other comprehensive income (loss), net of tax | 529 | 529 | |||||
Total comprehensive income | 1,116 | ||||||
Cash dividends to Ameriprise Financial, Inc. | (1,350) | (1,350) | |||||
Ending balance at Dec. 31, 2019 | 3,336 | 3 | 2,466 | 293 | 574 | ||
Ending balance (Current expected credit losses guidance [Member]) at Dec. 31, 2019 | $ (7) | $ (7) | |||||
Comprehensive income: | |||||||
Net income | 438 | 438 | |||||
Other comprehensive income (loss), net of tax | 346 | 346 | |||||
Total comprehensive income | 784 | ||||||
Cash dividends to Ameriprise Financial, Inc. | (800) | (800) | |||||
Ending balance at Dec. 31, 2020 | $ 3,313 | $ 3 | $ 2,466 | $ (76) | $ 920 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Cash Flows [Abstract] | |||
Net income | $ 438 | $ 587 | $ 905 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation, amortization and accretion, net | (22) | (22) | 37 |
Deferred income tax (benefit) expense | (278) | (278) | (3) |
Contractholder and policyholder charges, non-cash | (385) | (380) | (368) |
Loss from equity method investments | 73 | 99 | 64 |
Net realized investment (gains) losses | (12) | (15) | (10) |
Other-than-temporary impairments and provision for loan losses recognized in net realized investment gains (losses) | 22 | 17 | |
Consolidated Investment Entities Unrealized Realized Gain (Loss) on Assets and Liabilities | (2) | 0 | 0 |
Change in operating assets and liabilities: | |||
Deferred acquisition costs | 48 | (106) | 1 |
Policyholder account balances, future policy benefits and claims, net | 3,441 | 751 | 906 |
Derivatives, net of collateral | (134) | 333 | (170) |
Reinsurance recoverables | (166) | (90) | (212) |
Other receivables | 62 | 19 | 14 |
Accrued investment income | (3) | 26 | 16 |
Increase (Decrease) in Income Taxes | 378 | 2 | (120) |
Other, net | 79 | 23 | 119 |
Net cash provided by (used in) operating activities | 3,539 | 966 | 1,179 |
Available-for-Sale securities: | |||
Proceeds from sales | 102 | 232 | 56 |
Maturities, sinking fund payments and calls | 2,813 | 2,250 | 2,635 |
Purchases | (4,069) | (1,772) | (3,049) |
Proceeds from sales, maturities and repayments of mortgage loans | 207 | 223 | 280 |
Funding of mortgage loans | (135) | (331) | (208) |
Proceeds from sales and collections of other investments | 123 | 129 | 137 |
Purchase of other investments | (184) | (164) | (217) |
Proceeds from Sales and Maturities of Investments by Consolidated Investment Entities | 46 | 0 | 0 |
Payment to Acquire Investments by Consolidated Investment Entities | (57) | 0 | 0 |
Purchase of equipment and software | (10) | (10) | (8) |
Change in policy loans, net | 21 | (6) | (16) |
Cash paid for deposit receivable | (4) | (349) | |
Cash received for deposit receivable | 93 | 98 | |
Advance on line of credit to Ameriprise Financial, inc. | (702) | 0 | (273) |
Repayment from Ameriprise Financial, Inc. on line of credit | 702 | 0 | 273 |
Cash paid for written options with deferred premiums | (338) | (243) | (131) |
Cash received from written options with deferred premiums | 133 | 170 | 130 |
Net cash impact of consolidating consolidated investment entities | (83) | 0 | 0 |
Other, net | 2 | 42 | (15) |
Net cash provided by (used in) investing activities | (1,174) | 269 | (406) |
Policyholder account balances: | |||
Deposits and other additions | 1,649 | 2,152 | 1,933 |
Net transfers from (to) separate accounts | (125) | (86) | (75) |
Surrenders and other benefits | (1,357) | (1,728) | (1,904) |
Proceeds from line of credit with Ameriprise Financial, Inc. | 186 | 73 | 10 |
Repayments to Ameriprise Financial, Inc. on line of credit | (236) | (23) | (10) |
Proceeds from Issuance of Long-term Debt | 500 | 0 | 0 |
Cash received for purchased options with deferred premiums | 40 | 206 | 254 |
Cash paid for purchased options with deferred premiums | (211) | (289) | (208) |
Repayments of Debt of Consolidated Investment Entities | (1) | 0 | 0 |
Cash dividends to Ameriprise Financial, Inc. | (800) | (1,350) | (750) |
Net cash provided by (used in) financing activities | (355) | (1,045) | (750) |
Net increase (decrease) in cash and cash equivalents | 2,010 | 190 | 23 |
Cash and cash equivalents at beginning of period | 1,275 | 1,085 | 1,062 |
Cash and cash equivalents at end of period | 3,285 | 1,275 | 1,085 |
Supplemental Disclosures: | |||
Income taxes paid (received), net | (143) | 215 | 158 |
Interest paid on borrowings | 2 | 5 | 4 |
Non-cash investing activity: | |||
Partnership commitments not yet remitted | 0 | 4 | $ 1 |
Investments transferred in connection with fixed annuity reinsurance transaction | $ 0 | $ 1,265 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
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. On November 1, 2020, Columbia Cent CLO Advisors, LLC (“Columbia Cent”) began operating as a wholly owned subsidiary of RiverSource Life Insurance Company. See Note 5 for further discussion. The accompanying Consolidated Financial Statements include the accounts of RiverSource Life Insurance Company, companies in which it directly or indirectly has a controlling financial interest and variable interest entities (“VIEs”) in which it is the primary beneficiary (collectively, the “Company”). All intercompany transactions and balances have been eliminated in consolidation. 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. No subsequent events or transactions were identified. The Company’s principal products are variable annuities, structured variable annuities, universal life (“UL”) insurance, including indexed universal life (“IUL”) and variable universal life (“VUL”) insurance, which are issued primarily to individuals. Waiver of premium and accidental death benefit riders are generally available with UL products, in addition to other benefit riders. Variable annuity contract purchasers can choose to add 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. In 2020, the Company began offering structured variable annuities which give contractholders the option to allocate a portion of their account value to an indexed account with the contractholder’s rate of return, which may be positive or negative, tied to selected indices. The Company also offers immediate annuities, traditional life insurance and disability income (“DI”) insurance. In 2020, the Company discontinued sales of fixed deferred annuities. The Company’s business is sold through the advisor network of Ameriprise Financial Services, LLC (“AFS”), a subsidiary of Ameriprise Financial. RiverSource Distributors, Inc., a subsidiary of Ameriprise Financial, serves as the principal underwriter and distributor of variable annuity and life insurance products issued by the Company. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies The Company adopted accounting standard, Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments , on January 1, 2020. The significant accounting policies for Available-for-Sale Securities, Financing Receivables, and Reinsurance were updated as a result of adopting the new accounting standard. Principles of Consolidation A 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 using the measurement alternative method when the Company owns less than a 20% voting interest and does not exercise significant influence. Under the measurement alternative, the investment is recorded at the cost basis, less impairments, if any, plus or minus observable price changes of identical or similar investments of the same issuer. 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, deferred acquisition costs (“DAC”) and the corresponding recognition of DAC amortization, valuation of derivative instruments and hedging activities, litigation reserves, future policy benefits and 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 which is consistent with prior periods before January 1, 2020. Gains and losses are recognized on a trade date basis in the Consolidated Statements of Income upon disposition of the securities. Available-for-Sale securities are impaired when the fair value of an investment is less than its amortized cost. When an Available-for-Sale security is impaired, the Company first assesses whether or not: (i) it has the intent to sell the security (made a decision to sell) or (ii) it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If either of these conditions exist, the Company recognizes an impairment by reducing the book value of the security for the difference between the investment’s amortized cost and its fair value with a corresponding charge to earnings. Subsequent increases in the fair value of Available-for-Sale securities that occur in periods after a write-down has occurred are recorded as unrealized gains in other comprehensive income (“OCI”), while subsequent decreases in fair value would continue to be recorded as reductions of book value with a charge to earnings. For securities that do not meet the above criteria, the Company determines whether the decrease in fair value is due to a credit loss or due to other factors. The amount of impairment due to credit-related factors, if any, is recognized as an allowance for credit losses with a related charge to net realized investment gains (losses). The allowance for credit losses is limited to the amount by which the security’s amortized cost basis exceeds its fair value. The amount of the impairment related to other factors is recognized in OCI which is consistent with prior periods before January 1, 2020. Factors the Company considers in determining whether declines in the fair value of fixed maturity securities are due to credit-related factors include: (i) the extent to which the market value is below amortized cost; (ii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iii) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors. If through subsequent evaluation there is a sustained increase in cash flows expected, both the allowance and related charge to earnings may be reversed to reflect the increase in expected principal and interest payments. However, for Available-for-Sale securities that recognized an impairment prior to January 1, 2020 by reducing the book value of the security, the difference between the new amortized cost basis and the improved cash flows expected to be collected is accreted as interest income. In order to determine the amount of the credit loss component for corporate debt securities, a best estimate of the present value of cash flows expected to be collected discounted at the security’s effective interest rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and the Company’s position in the debtor’s overall capital structure. When assessing potential credit-related impairments for structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities and asset backed securities), the Company also considers credit-related factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections. Management has elected to exclude accrued interest in its measurement of the allowance for credit losses for Available-for-Sale securities. Accrued interest on Available-for-sale securities is recorded as earned in accrued investment income on the Consolidated Balance Sheets. Available-for-Sale securities are placed on nonaccrual status when the accrued balance becomes 90 days past due or earlier based on management’s evaluation of the facts and circumstances of each security under review. At this time all previously accrued interest is reversed through net investment income. Other Investments Other investments primarily reflect the Company’s interests in affordable housing partnerships and syndicated loans. Affordable housing partnerships are accounted for under the equity method. Financing Receivables Financing receivables are comprised of commercial loans, policy loans, and deposit receivables. Commercial Loans Commercial loans include commercial mortgage loans and syndicated loans and are recorded at amortized cost less the allowance for loan losses. Commercial mortgage loans are recorded within mortgage loans and syndicated loans are recorded within other investments on the Consolidated Balance Sheets. Commercial mortgage loans are loans on commercial properties that are originated by the Company. Syndicated loans represent the Company’s investment in loan syndications originated by unrelated third parties. Interest income is accrued as earned on the unpaid principal balances of the loans. Interest income recognized on commercial mortgage loans and syndicated loans is recorded in net investment income on the Consolidated Statements of Income. Policy Loans Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, there is no allowance for credit losses. Interest income is accrued as earned on the unpaid principal balances of the loans. Interest income recognized on policy loans is recorded in accrued investment income on the Consolidated Statements of Income. Deposit Receivable For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability related to insurance risk in accordance with applicable accounting standards. If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Reinsurance deposits made are included in receivables. As amounts are received, consistent with the underlying contracts, the deposit receivable is adjusted. The deposit receivable is accreted using the interest method and the accretion is reported in other revenues. See Note 7 for additional information on financing receivables. Allowance for Credit Losses The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected over the asset’s expected life, considering past events, current conditions and reasonable and supportable forecasts of future economic conditions. Prior to January 1, 2020, the allowance for credit losses was based on an incurred loss model that did not require estimating expected credit losses over the expected life of the asset. Estimates of expected credit losses consider both historical charge-off and recovery experience as well as current economic conditions and management’s expectation of future charge-off and recovery levels. Expected losses related to risks other than credit risk are excluded from the allowance for credit losses. The allowance for credit losses is measured and recorded upon initial recognition of the loan, regardless of whether it is originated or purchased. The methods and information used to develop the allowance for credit losses for each class of financing receivable are discussed below. Commercial Loans The allowance for credit losses for commercial mortgage loans and syndicated loans utilizes a probability of default and loss severity approach to estimate lifetime expected credit losses. Actual historical default and loss severity data for each type of commercial loan is adjusted for current conditions and reasonable and supportable forecasts of future economic conditions to develop the probability of default and loss severity assumptions that are applied to the amortized cost basis of the loans over the expected life of each portfolio. The allowance for credit losses on commercial mortgage loans and syndicated loans is recorded through provisions charged to net realized investment gains (losses) and is reduced/increased by net charge-offs/recoveries. Management determines the adequacy of the allowance for credit losses based on the overall loan portfolio composition, recent and historical loss experience, and other pertinent factors, including when applicable, internal risk ratings, loan-to-value (“LTV”) ratios and occupancy rates, along with reasonable and supportable forecasts of economic and market conditions. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change. While the Company may attribute portions of the allowance to specific loan pools as part of the allowance estimation process, the entire allowance is available to absorb losses expected over the life of the loan portfolio. Deposit receivable The allowance for credit losses is calculated on an individual reinsurer basis. The deposit receivable is collateralized by an underlying trust arrangement. Management evaluates the terms of the reinsurance and trust agreements, the nature of the underlying assets, and the potential for changes in the collateral value when considering the need for an allowance for credit losses. Nonaccrual Loans Commercial mortgage loans and syndicated loans are placed on nonaccrual status when either the collection of interest or principal has become 90 days past due or is otherwise considered doubtful of collection. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Interest payments received on loans on nonaccrual status are generally applied to principal unless the remaining principal balance has been determined to be fully collectible. Management has elected to exclude accrued interest in its measurement of the allowance for credit losses for commercial mortgage loans and syndicated loans. 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. Modifications to loan terms do not automatically result in troubled debt restructurings (“TDRs”). Per the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus, modifications made on a good faith basis in response to the coronavirus disease 2019 (“COVID-19”) pandemic to borrowers who were not more than 30 days past due as of December 31, 2019, such as payment deferrals, extensions of repayment terms, fee waivers, or delays in payment that are not significant to the unpaid principal value of the loan, are not considered TDRs. 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. Charge-off and Foreclosure Charge-offs are recorded when the Company concludes that all or a portion of the commercial mortgage loan or syndicated loan is uncollectible. 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. Factors used by the Company to determine whether all amounts due on syndicated loans will be collected, include but are not limited to the borrower’s financial condition, industry outlook, and internal risk ratings based on rating agency data and internal analyst expectations. If it is determined that foreclosure on a commercial mortgage loan is probable and the fair value is less than the current loan balance, expected credit losses are measured as the difference between the amortized cost basis of the asset and fair value less estimated selling costs. Upon foreclosure, the commercial mortgage loan and related allowance are reversed, and the foreclosed property is recorded as real estate owned in other assets. Cash and Cash Equivalents Cash equivalents include highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less. Reinsurance The Company cedes insurance risk to other insurers under reinsurance agreements. Reinsurance premiums paid and benefits received are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Reinsurance premiums for traditional life, long term care (“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 within reinsurance recoverables, net of the allowance for credit losses. The Company evaluates the financial condition of its reinsurers prior to entering into new reinsurance contracts and on a periodic basis during the contract term. The allowance for credit losses related to reinsurance recoverable is based on applying observable industry data including insurer ratings, default and loss severity data to the Company’s reinsurance recoverable balances. Management evaluates the results of the calculation and considers differences between the industry data and the Company’s data. Such differences include the fact that the Company has no actual history of losses and the fact that industry data may contain non-life insurers. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change given the long-term nature of these receivables. In addition, the Company has a reinsurance protection agreement that provides credit protections for its reinsured long term care business. The allowance for credit losses on reinsurance recoverable is recorded through provisions charged to benefits, claims, losses and settlement expenses on the Consolidated Statements of Income. 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 9 for additional information on reinsurance. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements [Text Block] | Recent Accounting Pronouncements Adoption of New Accounting Standards Fair Value Measurement – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the Financial Accounting Standards Board (“ FASB”) updated the accounting standards related to disclosures for fair value measurements. The update eliminates the following disclosures: (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (2) the policy of timing of transfers between levels of the fair value hierarchy, and (3) the valuation processes for Level 3 fair value measurements. The new disclosures include changes in unrealized gains and losses for the period included in OCI for recurring Level 3 fair value measurements of instruments held at the end of the reporting period and the range and weighted average used to develop significant unobservable inputs and how the weighted average was calculated. The new disclosures are required on a prospective basis; all other provisions should be applied retrospectively. The update is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted for the entire standard or only the provisions to eliminate or modify disclosure requirements. The Company early adopted the provisions of the standard to eliminate or modify disclosure requirements in the fourth quarter of 2018. The Company adopted the provisions of the standard to include new disclosures on January 1, 2020. The update does not have an impact on the Company’s consolidated financial condition or results of operations. See Note 12 for additional disclosures on fair value measurements. Intangibles – Goodwill and Other – Internal-Use Software – Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB updated the accounting standards related to customer’s accounting for implementation costs incurred in a cloud computing arrangement (“CCA”) that is a service contract. The update requires implementation costs for a CCA to be evaluated for capitalization using the same approach as implementation costs associated with internal-use software. The update also addresses presentation, measurement and impairment of capitalized implementation costs in a CCA that is a service contract. The update requires new disclosures on the nature of hosting arrangements that are service contracts, significant judgements made when applying the guidance and quantitative disclosures, including amounts capitalized, amortized and impaired. The update is effective for interim and annual periods beginning after December 15, 2019, and can be applied either prospectively or retrospectively. The Company adopted the standard using a prospective approach on January 1, 2020. The adoption did not have an impact on the Company’s consolidated financial condition or results of operations. Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments 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. At adoption, the initial estimate of the expected credit losses will be recorded through retained earnings 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 credit loss model for Available-for-Sale debt securities did 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. 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 adopted the standard on January 1, 2020. The adoption of this update did not have a material impact on the Company’s consolidated financial condition or 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 requires 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 was effective for interim and annual periods beginning after December 15, 2018. Entities had the option to adopt the standard using a modified retrospective approach at either the beginning of the earliest period presented or as of the date of adoption. The Company adopted the standard using a modified retrospective approach as of January 1, 2019. The Company also elected the package of practical expedients permitted under the transition guidance within the accounting standard that allows entities to carryforward their historical lease classification and to not reassess contracts for embedded leases among other things. The adoption did not have a material impact on the Company’s consolidated financial condition or results of operations. Income Statement – Reporting Comprehensive Income – Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB updated the accounting standards related to the presentation of tax effects stranded in AOCI. The update allows a reclassification from AOCI to retained earnings for tax effects stranded in AOCI resulting from the Tax Act. The election of the update was optional. The update was effective for fiscal years beginning after December 15, 2018. Entities could 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. The Company adopted the standard on January 1, 2019 and elected not to reclassify the stranded tax effects in AOCI. 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 was effective for interim and annual periods beginning after December 15, 2018, and was required to be applied on a modified retrospective basis. The Company adopted the standard on January 1, 2019. The adoption did not have an impact on the Company’s consolidated financial condition or results of operations. Receivables - Nonrefundable Fees and Other Costs - 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 previous guidance, premiums were 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 was effective for interim and annual periods beginning after December 15, 2018, and was required to 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. The Company adopted the standard on January 1, 2019. The adoption did not have a material impact on the Company’s consolidated financial condition or results of operations. In October 2020, the FASB issued amendments clarifying that, at each reporting date if a security contains additional future call dates, an entity must reevaluate whether the amortized cost basis exceeds the amount repayable by the issuer at the next call date. If so, the excess should be amortized to the next call date. The update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early application is not permitted. All entities should apply this update on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. The Company currently accounts for the additional call dates in accordance with this amendment. Future Adoption of New Accounting Standards Reference Rate Reform – Expedients for Contract Modifications In March 2020, the FASB updated the accounting standards to provide optional expedients and exceptions for applying GAAP to contracts, hedging or other transactions that are affected by reference rate reform (i.e., the elimination of LIBOR). The following expedients are provided for modified contracts whose reference rate is changed: (1) receivables and debt contracts are accounted for prospectively by adjusting the effective interest rate, (2) leases are accounted for as a continuation of the existing contracts with no reassessments of the lease classification and discount rate or remeasurements of lease payments that otherwise would be required, and (3) an entity is not required to reassess its original conclusion about whether that contract contains an embedded derivative that is clearly and closely related to the economic characteristics and risks of the host contract. When elected, the optional expedients for contract modifications must be applied consistently for all eligible contracts or eligible transactions. In January 2021, FASB updated the standard to allow an entity to elect to apply the treatment under the original guidance to derivative instruments that use an interest rate that for margining, discounting or contract price alignment that will be modified due to reference rate reform but did not qualify under the original guidance The adoption of the standard is not expected to have an impact on the Company’s consolidated results of operations and financial condition. Income Taxes – Simplifying the Accounting for Income Taxes In December 2019, the FASB updated the accounting standards to simplify the accounting for income taxes. The update eliminates certain exceptions to: (1) accounting principles related to intraperiod tax allocation to be applied on a prospective basis, (2) deferred tax liabilities related to outside basis differences to be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption, and (3) year-to-date losses in interim periods to be applied on a prospective basis. The update also amends existing guidance related to situations when an entity receives: (1) a step-up in the tax basis of goodwill to be applied on a prospective basis, (2) an allocation of income tax expense when members of a consolidated tax filing group issue separate financial statements to be applied on a retrospective basis for all periods presented, (3) interim recognition of enactment of tax laws or rate changes to be applied on a prospective basis, and (4) franchise taxes and other taxes partially based on income to be applied on a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The standard is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The adoption of the standard is not expected to have an impact on the Company’s consolidated financial condition or results of operations. Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the FASB updated the accounting standard related to long-duration insurance contracts. The guidance revises key elements of the measurement models and disclosure requirements for long-duration insurance contracts issued by insurers and reinsurers. The guidance establishes a significant new category of benefit features called market risk benefits that protect the contractholder from other-than-nominal capital market risk and expose the insurer to that risk. Insurers will have to measure market risk benefits at fair value. Market risk benefits include variable annuity guaranteed benefits (i.e. guaranteed minimum death, withdrawal, withdrawal for life, accumulation and income benefits). The portion of the change in fair value attributable to a change in the instrument-specific credit risk of market risk benefits in a liability position will be recorded in OCI. Significant changes also relate to the measurement of the liability for future policy benefits for nonparticipating traditional long-duration insurance contracts and immediate annuities with a life contingent feature include the following: • Insurers will be required to review and update the cash flow assumptions used to measure the liability for future policy benefits rather than using assumptions locked in at contract inception. The review of assumptions to measure the liability for all future policy benefits will be required annually at the same time each year, or more frequently if suggested by experience. The effect of updating assumptions will be measured on a retrospective catch-up basis and presented separate from the ongoing policyholder benefit expense in the statement of operations in the period the update is made. This new unlocking process will be required for the Company’s term and whole life insurance, disability income, long term care insurance and immediate annuities with a life contingent feature. • The discount rate used to measure the liability for future policy benefits will be standardized. The current requirement to use a discount rate reflecting expected investment yields will change to an upper-medium grade (low credit risk) fixed income corporate instrument yield (generally interpreted as an “A” rating) reflecting the duration characteristics of the liability. Entities will be required to update the discount rate at each reporting date with the effect of discount rate changes reflected in OCI. • The current premium deficiency test is being replaced with a net premium ratio cap of 100%. If the net premium ratio (i.e. the ratio of the present value of total expected benefits and related expenses to the present value of total expected premiums) exceeds 100%, insurers are required to recognize a loss in the statement of operations in the period. Contracts from different issue years will no longer be permitted to be grouped to determine contracts in a loss position. In addition, the update requires DAC and DSIC relating to all long-duration contracts and most investment contracts to be amortized on a straight-line basis over the expected life of the contract independent of profit emergence. Under the new guidance, interest will not accrue to the deferred balance and DAC and DSIC will not be subject to an impairment test. The update requires significant additional disclosures, including disaggregated rollforwards of the liability for future policy benefits, policyholder account balances, market risk benefits, DAC and DSIC, as well as qualitative and quantitative information about expected cash flows, estimates and assumptions. On November 5, 2020, the FASB released an updated ASU to defer the effective date of the standard to interim and annual periods beginning after December 15, 2022, and interim periods within those years. The standard should be applied to the liability for future policy benefits and DAC and DSIC on a modified retrospective basis and applied to market risk benefits on a retrospective basis with the option to apply full retrospective transition if certain criteria are met. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated financial condition, results of operations and disclosures. |
Revenue from Contract with Cust
Revenue from Contract with Customer | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customer [Text Block] | Revenue from Contracts with Customers The following table presents disaggregated revenue from contracts with customers and a reconciliation to total revenues reported on the Consolidated Statements of Income. Years Ended December 31, 2020 2019 2018 (in millions) Policy and contract charges Affiliated (from Columbia Management Investment Distributors, Inc.) $ 173 $ 170 $ 170 Unaffiliated 14 14 16 Total 187 184 186 Other revenues Administrative fees Affiliated (from Columbia Management Investment Services, Corp.) 44 43 44 Unaffiliated 18 20 22 62 63 66 Other fees Affiliated (from Columbia Management Investment Advisers, LLC (“CMIA”) and Columbia Wanger Asset Management, LLC) 351 344 336 Unaffiliated 4 4 3 355 348 339 Total 417 411 405 Total revenue from contracts with customers 604 595 591 Revenue from other sources (1) 3,172 3,223 3,330 Total revenues $ 3,776 $ 3,818 $ 3,921 (1) Amounts primarily consist of revenue associated with insurance and annuity products or financial instruments. The following discussion describes the nature, timing, and uncertainty of revenues and cash flows arising from the Company’s contracts with customers. Policy and contract charges The Company earns revenue for providing distribution-related services to affiliated and unaffiliated mutual funds that are available as underlying investments in its variable annuity and variable life insurance products. The performance obligation is satisfied at the time the mutual fund is distributed. Revenue is recognized over the time the mutual fund is held in the variable product and is generally earned based on a fixed rate applied, as a percentage, to the net asset value of the fund. The revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company’s control, including market volatility and how long the fund(s) remain in the insurance policy or annuity contract. The revenue will not be recognized until it is probable that a significant reversal will not occur. These fees are accrued and collected on a monthly basis. Other revenues Administrative fees The Company earns revenue for providing customer support, contract servicing and administrative services for affiliated and unaffiliated mutual funds that are available as underlying instruments in its variable annuity and variable life insurance products. The transfer agent and administration revenue is earned daily based on a fixed rate applied, as a percentage, to assets under management. These performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. These fees are accrued and collected on a monthly basis. Other fees The Company earns revenue for providing affiliated and unaffiliated partners an opportunity to educate the financial advisors of its affiliate, AFS, that sell the Company's products as well as product and marketing personnel to support the offer, sale and servicing of funds within the Company's variable annuity and variable life insurance products. These payments allow the parties to train and support the advisors, explain the features of their products, and distribute marketing and educational materials. The affiliated revenue is earned based on a rate, updated at least annually, which is applied, as a percentage, to the market value of assets invested. The unaffiliated revenue is earned based on a fixed rate applied, as a percentage, to the market value of assets invested. These performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. These fees are accrued and collected on a monthly basis. Receivables Receivables for revenue from contracts with customers are recognized when the performance obligation is satisfied and the Company has an unconditional right to the revenue. Receivables related to revenues from contracts with customers were $57 million and $55 million as of December 31, 2020 and 2019, respectively. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2020 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities [Text Block] | Variable Interest Entities On November 1, 2020, the Company purchased investments in the subordinated notes of five consolidated collateralized loan obligations (“CLOs”) from an affiliate. The Company provides asset management services to investment entities which are considered to be VIEs, such as CLOs, which are sponsored by the Company. In addition, the Company invests in structured investments other than CLOs and certain affordable housing partnerships which are considered VIEs. The Company consolidates the CLOs if the Company is deemed to be the primary beneficiary. The Company has no obligation to provide financial or other support to the non-consolidated VIEs beyond its initial investment and existing future funding commitments, and the Company has not provided any support to these entities. The Company has unfunded commitments related to consolidated CLOs of $13 million as of December 31, 2020. See Note 20 for information on future funding commitments of other VIEs. See Note 2 for further discussion of the Company’s accounting policy on consolidation. CLOs CLOs are asset backed financing entities collateralized by a pool of assets, primarily syndicated loans and, to a lesser extent, high-yield bonds. Multiple tranches of debt securities are issued by a CLO, offering investors various maturity and credit risk characteristics. The debt securities issued by the CLOs are non-recourse to the Company. The CLO’s debt holders have recourse only to the assets of the CLO. The assets of the CLOs cannot be used by the Company. Scheduled debt payments are based on the performance of the CLO’s collateral pool. The Company earns management fees from the CLOs based on the value of the CLO’s collateral pool and, in certain instances, may also receive incentive fees. The fee arrangement is at market and commensurate with the level of effort required to provide those services. The Company has invested in a portion of the unrated, junior subordinated notes of certain CLOs. The Company consolidates certain CLOs where it is the primary beneficiary and has the power to direct the activities that most significantly impact the economic performance of the CLO. Affordable Housing Partnerships and Other Real Estate Partnerships 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 $200 million and $270 million as of December 31, 2020 and 2019, respectively. The Company had a $9 million and $15 million liability recorded as of December 31, 2020 and 2019, 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 funding commitments. Structured Investments 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 and residential mortgage backed securities. The Company classifies these investments as Available-for-Sale securities. The Company has determined that it is not the primary beneficiary of these structures due to the size of the Company’s investment in the entities and position in the capital structure of these entities. The Company's maximum exposure to loss as a result of its investment in these structured investments is limited to its amortized cost. See Note 6 for additional information on these structured investments. Fair Value of Assets and Liabilities The Company categorizes its fair value measurements according to a three-level hierarchy. See Note 13 for the definition of the three levels of the fair value hierarchy. The following tables present the balances of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis: December 31, 2020 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Corporate debt securities $ — $ 8 $ — $ 8 Common stocks — 1 — 1 Syndicated loans — 1,817 92 1,909 Total investments — 1,826 92 1,918 Receivables — 16 — 16 Other assets — — 2 2 Total assets at fair value $ — $ 1,842 $ 94 $ 1,936 Liabilities Debt (1) $ — $ 1,913 $ — $ 1,913 Other liabilities — 69 — 69 Total liabilities at fair value $ — $ 1,982 $ — $ 1,982 (1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.0 billion as of December 31, 2020. The following tables provide a summary of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis: Syndicated Loans Other Assets (in millions) Balance, January 1, 2020 $ — $ — Purchases — 2 Sales (2) — Transfers into Level 3 15 — Transfers out of Level 3 (70) — Consolidation of consolidated investment entities 149 — Balance, December 31, 2020 $ 92 $ 2 Changes in unrealized gains (losses) included in income relating to assets held at December 31, 2020 $ — $ — Securities and loans transferred from Level 3 primarily represent assets with fair values that are now obtained from a third-party pricing service with observable inputs or priced in active markets. Securities and loans transferred to Level 3 represent assets with fair values that are now based on a single non-binding broker quote. All Level 3 measurements as of December 31, 2020 were obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company. Determination of Fair Value Assets Investments The fair value of syndicated loans obtained from third-party pricing services using a market approach with observable inputs is classified as Level 2. The fair value of syndicated loans obtained from third-party pricing services with a single non-binding broker quote as the underlying valuation source is classified as Level 3. The underlying inputs used in non-binding broker quotes are not readily available to the Company. See Note 13 for a description of the Company’s determination of the fair value of corporate debt securities, common stocks and other investments. Receivables For receivables of the consolidated CLOs, the carrying value approximates fair value as the nature of these assets has historically been short term and the receivables have been collectible. The fair value of these receivables is classified as Level 2. Liabilities Debt The fair value of the CLOs’ assets, typically syndicated bank loans, is more observable than the fair value of the CLOs’ debt tranches for which market activity is limited and less transparent. As a result, the fair value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets and is classified as Level 2. Other Liabilities Other liabilities consist primarily of securities purchased but not yet settled held by consolidated CLOs. The carrying value approximates fair value as the nature of these liabilities has historically been short term. The fair value of these liabilities is classified as Level 2. Fair Value Option The Company has elected the fair value option for the financial assets and liabilities of the consolidated CLOs. Management believes that the use of the fair value option better matches the changes in fair value of assets and liabilities related to the CLOs. The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected: December 31, 2020 (in millions) Syndicated loans Unpaid principal balance $ 1,990 Excess unpaid principal over fair value (81) Fair value $ 1,909 Fair value of loans more than 90 days past due $ 5 Fair value of loans in nonaccrual status 19 Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both 24 Debt Unpaid principal balance $ 2,069 Excess unpaid principal over fair value (156) Carrying value (1) $ 1,913 (1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.0 billion as of December 31, 2020. Interest income from syndicated loans, bonds and structured investments is recorded based on contractual rates in net investment income. Gains and losses related to changes in the fair value of investments are recorded in net investment income and gains and losses on sales of investments are recorded in net realized investment gains (losses). Interest expense on debt is recorded in interest and debt expense with gains and losses related to changes in the fair value of debt recorded in net investment income. Total net gains (losses) recognized in net investment income related to changes in the fair value of financial assets and liabilities for which the fair value option was elected were $2 million for the year ended December 31, 2020. Debt of the consolidated investment entities and the stated interest rates were as follows: Carrying Value Weighted Average December 31, 2020 December 31, 2020 (in millions) Debt of consolidated CLOs due 2025-2031 $ 1,913 2.1 % |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 Amortized Cost Gross Gross Allowance for Credit Losses Fair (in millions) Fixed maturities: Corporate debt securities $ 10,982 $ 1,903 $ (2) $ (10) $ 12,873 Residential mortgage backed securities 2,888 115 (1) — 3,002 Commercial mortgage backed securities 3,935 235 (4) — 4,166 State and municipal obligations 1,050 295 (1) — 1,344 Asset backed securities 1,168 45 (1) — 1,212 Foreign government bonds and obligations 236 22 (1) — 257 U.S. government and agency obligations 1 — — — 1 Total $ 20,260 $ 2,615 $ (10) $ (10) $ 22,855 Description of Securities December 31, 2019 Amortized Cost Gross Gross Fair (in millions) Fixed maturities: Corporate debt securities $ 10,188 $ 1,336 $ (2) $ 11,522 Residential mortgage backed securities 3,039 73 (4) 3,108 Commercial mortgage backed securities 3,526 95 (3) 3,618 State and municipal obligations 1,071 237 (2) 1,306 Asset backed securities 1,036 45 (1) 1,080 Foreign government bonds and obligations 250 19 (2) 267 U.S. government and agency obligations 1 — — 1 Total $ 19,111 $ 1,805 $ (14) $ 20,902 In March 2020, the Company purchased $368 million of investments at fair value, primarily agency residential mortgage back securities, from Ameriprise Financial. As of both December 31, 2020 and 2019, accrued interest of $158 million, respectively, is excluded from the amortized cost basis of Available-for-Sale securities in the tables above and is recorded in accrued investment income on the Consolidated Balance Sheets. As of December 31, 2020 and 2019, investment securities with a fair value of $2.9 billion and $1.9 billion, respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $454 million and $576 million, respectively, may be sold, pledged or rehypothecated by the counterparty. As of December 31, 2020 and 2019, fixed maturity securities comprised approximately 85% 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, 2020 and 2019, approximately $553 million and $615 million, respectively, of securities were internally rated by 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, 2020 December 31, 2019 Amortized Cost Fair Percent of Amortized Fair Percent of (in millions, except percentages) AAA $ 7,323 $ 7,698 34 % $ 6,771 $ 6,950 33 % AA 1,036 1,266 6 1,176 1,374 7 A 2,663 3,235 14 2,695 3,157 15 BBB 7,770 9,026 39 7,709 8,626 41 Below investment grade 1,468 1,630 7 760 795 4 Total fixed maturities $ 20,260 $ 22,855 100 % $ 19,111 $ 20,902 100 % As of December 31, 2020 and 2019, approximately 37% and 39%, respectively, of securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. The Company had holdings of $372 million in Ameriprise Advisor Financing, LLC (“AAF”), an affiliate of the Company, which was greater than 10% of total equity as of December 31, 2020. The Company had holdings of $380 million in AAF, which was greater than 10% of total equity as of December 31, 2019. There were no other holdings of any other issuer greater than 10% of total equity as of both December 31, 2020 and 2019. 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, 2020 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 26 $ 228 $ (1) 1 $ 12 $ (1) 27 $ 240 $ (2) Residential mortgage backed securities 11 47 (1) 7 14 — 18 61 (1) Commercial mortgage backed securities 12 179 (3) 7 60 (1) 19 239 (4) State and municipal obligations 2 4 — 1 4 (1) 3 8 (1) Asset backed securities 4 65 — 2 36 (1) 6 101 (1) Foreign government bonds and obligations 1 3 — 7 8 (1) 8 11 (1) Total 56 $ 526 $ (5) 25 $ 134 $ (5) 81 $ 660 $ (10) Description of Securities December 31, 2019 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 15 $ 64 $ — 7 $ 90 $ (2) 22 $ 154 $ (2) Residential mortgage backed securities 29 571 (1) 20 298 (3) 49 869 (4) Commercial mortgage backed securities 18 310 (1) 7 82 (2) 25 392 (3) State and municipal obligations 5 23 — 3 54 (2) 8 77 (2) Asset backed securities 10 111 (1) 6 54 — 16 165 (1) Foreign government bonds and obligations 1 — — 10 15 (2) 11 15 (2) Total 78 $ 1,079 $ (3) 53 $ 593 $ (11) 131 $ 1,672 $ (14) As part of the Company’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities during the twelve months ended December 31, 2020 is primarily attributable to lower interest rates as well as credit spread tightening. Consistent with the accounting policy described in Note 2, the Company did not recognize any of the total unrealized losses in earnings because it was determined that such losses were due to non-credit factors. The Company does not intend to sell these securities and does not believe that it is more likely than not that the Company will be required to sell these securities before the anticipated recovery of the remaining amortized cost basis. As of December 31, 2020, 83% of the total of Available-for-Sale securities with gross unrealized losses were considered investment grade. The following table presents a rollforward of the allowance for credit losses on Available-for-Sale securities: Corporate Debt Securities (in millions) Balance, January 1, 2020 (1) $ — Additions for which credit losses were not previously recognized 13 Additional increases (decreases) on securities that had an allowance recorded in a previous period (3) Balance, December 31, 2020 $ 10 (1) Prior to January 1, 2020, credit losses on Available-for-Sale securities were not recorded in an allowance but were recorded as a reduction of the book value of the security if the security was other-than-temporarily impaired. There is no adoption impact due to the prospective transition for Available-for-Sale securities. 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, 2020 2019 2018 (in millions) Gross realized investment gains $ 17 $ 29 $ 16 Gross realized investment losses (2) (14) (7) Credit losses (10) (17) — Total $ 5 $ (2) $ 9 Credit losses for the twelve months ended December 31, 2020 primarily related to recording an allowance for credit losses on certain corporate debt securities, primarily in the oil and gas industry. Other-than-temporary impairments for the year ended December 31, 2019 related to corporate debt 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, 2020 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 596 $ 602 Due after one year through five years 4,373 4,697 Due after five years through 10 years 2,900 3,206 Due after 10 years 4,400 5,970 12,269 14,475 Residential mortgage backed securities 2,888 3,002 Commercial mortgage backed securities 3,935 4,166 Asset backed securities 1,168 1,212 Total $ 20,260 $ 22,855 Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities, commercial mortgage backed securities and asset backed securities are not due at a single maturity date. As such, these securities were not included in the maturities distribution. The following is a summary of net investment income: Years Ended December 31, 2020 2019 2018 (in millions) Fixed maturities $ 777 $ 848 $ 919 Mortgage loans 115 119 117 Other investments (3) (26) 11 889 941 1,047 Less: investment expenses 20 24 24 Total $ 869 $ 917 $ 1,023 Net realized investment gains (losses) are summarized as follows: Years Ended December 31, 2020 2019 2018 (in millions) Fixed maturities $ 5 $ (2) $ 9 Mortgage loans (10) — 1 Other investments (5) — — Total $ (10) $ (2) $ 10 |
Financing Receivables
Financing Receivables | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Financing Receivables | Financing Receivables Financing receivables are comprised of commercial mortgage loans, consumer loans, and the deposit receivable. See Note 2 for information regarding the Company’s accounting policies related to financing receivables and the allowance for credit losses. Allowance for Credit Losses The following tables present a rollforward of the allowance for credit losses for the year ended December 31, 2020 Commercial Loans (in millions) Balance, December 31, 2019 (1) $ 20 Cumulative effect of adoption of current expected credit losses guidance 3 Balance, January 1, 2020 23 Provisions 12 Balance, December 31, 2020 $ 35 (1) Prior to January 1, 2020, the allowance for credit losses was based on an incurred loss model that did not require estimating expected credit losses over the expected life of the asset. Commercial Loans 2019 2018 (in millions) Balance at January 1 $ 20 $ 22 Charge-offs — (2) Balance at December 31 $ 20 $ 20 As of December 31, 2020 and 2019 , accrued interest on commercial loans was $14 million and $11 million and is recorded in accrued investment income on the Consolidated Balance Sheets and excluded from the amortized cost basis of commercial loans. Purchases and Sales During the years ended December 31, 2020, 2019 and 2018, the Company purchased $140 million, $121 million and $137 million, respectively, of syndicated loans and sold $13 million, $43 million and $44 million, respectively, of syndicated loans. The Company has not acquired any loans with deteriorated credit quality as of the acquisition date. Credit Quality Information Nonperforming loans were $7 million and $9 million as of December 31, 2020 and 2019, 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. Loan-to-value ratio is the primary credit quality indicator included in this review. Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates when credit risk changes. Commercial mortgage loans which management has assigned its highest risk rating were less than 1% of total commercial mortgage loans as of both December 31, 2020 and 2019. 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. Total commercial mortgage loan modifications in 2020 due to the COVID-19 pandemic consisted of 88 loans with a total unpaid balance of $360 million. Modifications primarily consisted of short-term forbearance and interest only payments. As of December 31, 2020, there was one loan with interest only payments with an unpaid balance of $10 million. All other loans returned to their normal payment schedules. Total commercial mortgage loans past due were nil as of both December 31, 2020 and 2019, respectively. The table below presents the amortized cost basis of commercial mortgage loans as of December 31, 2020 by year of origination and loan-to-value ratio: Loan-to-Value Ratio 2020 2019 2018 2017 2016 Prior Total (in millions) > 100% $ — $ — $ 2 $ — $ — $ 10 $ 12 80% - 100% 15 16 9 3 7 15 65 60% - 80% 85 152 27 29 46 141 480 40% - 60% 20 50 74 147 111 543 945 < 40% 7 22 69 88 58 856 1,100 Total $ 127 $ 240 $ 181 $ 267 $ 222 $ 1,565 $ 2,602 Loan-to-value ratio is based on income and expense data provided by borrowers at least annually and long-term capitalization rate assumptions based on property type. In addition, the Company reviews the concentrations of credit risk by region and property type. Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows: Loans Percentage December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 (in millions) South Atlantic $ 663 $ 705 25 % 26 % Pacific 784 792 30 30 Mountain 234 237 10 9 West North Central 192 207 7 8 East North Central 250 232 10 9 Middle Atlantic 165 167 6 6 West South Central 156 169 6 6 New England 47 47 2 2 East South Central 111 116 4 4 2,602 2,672 100 % 100 % Less: allowance for loan losses 28 17 Total $ 2,574 $ 2,655 Concentrations of credit risk of commercial mortgage loans by property type were as follows: Loans Percentage December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 (in millions) Retail $ 843 $ 891 32 % 33 % Office 358 404 14 15 Apartments 680 660 26 25 Industrial 401 404 16 15 Mixed use 76 66 3 3 Hotel 49 51 2 2 Other 195 196 7 7 2,602 2,672 100 % 100 % Less: allowance for loan losses 28 17 Total $ 2,574 $ 2,655 Syndicated Loans The recorded investment in syndicated loans as of December 31, 2020 and 2019 was $446 million and $395 million, respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. Total syndicated loans past due were $2 million and $1 million as of December 31, 2020 and 2019, respectively. The Company assigns an internal risk rating to each syndicated loan in its portfolio ranging from 1 through 5, with 5 reflecting the lowest quality. The table below presents the amortized cost basis of syndicated loans as of December 31, 2020 by origination year and internal risk rating: Internal Risk Rating 2020 2019 2018 2017 2016 Prior Total (in millions) Risk 5 $ — $ — $ — $ — $ — $ 2 $ 2 Risk 4 — — 3 7 — 7 17 Risk 3 — 7 6 19 10 18 60 Risk 2 23 42 45 51 10 32 203 Risk 1 14 25 35 43 17 30 164 Total $ 37 $ 74 $ 89 $ 120 $ 37 $ 89 $ 446 Policy Loans Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, there is no allowance for credit losses. Deposit Receivable The deposit receivable was $1.4 billion and $1.5 billion as of December 31, 2020 and 2019, respectively. The deposit receivable is fully collateralized by the fair value of the assets held in a trust. Based on management’s evaluation of the nature of the underlying assets and the potential for changes in the collateral value, the Company did not have an allowance for credit losses for the deposit receivable as of both December 31, 2020 and 2019. Troubled Debt Restructurings The recorded investment in restructured loans was not material as of both December 31, 2020 and 2019. 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, 2020, 2019 and 2018. There are no material 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, 2020 | |
Deferred Charges, Insurers [Abstract] | |
Deferred Acquisition Costs and Deferred Sales Inducement Costs [Text Block] | Deferred Acquisition Costs and Deferred Sales Inducement Costs Management updates market-related inputs on a quarterly basis and implements model changes related to the living benefit valuation. In addition, management conducts 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, 2020 primarily reflected updates to interest rate assumptions, partially offset by a favorable impact from lower surrenders on annuity contracts with a withdrawal benefit. The impact of unlocking to DAC for the year ended December 31, 2019 primarily reflected updated mortality assumptions on UL and VUL insurance products and lower surrender rate assumptions on variable annuities, partially offset by an unfavorable impact from updates to assumptions on utilization of guaranteed withdrawal benefits. The impact of unlocking to DAC for the year ended December 31, 2018 primarily reflected improved persistency and mortality on UL and VUL insurance products and a correction related to a variable annuity model assumption partially offset by updates to market-related inputs to the living benefit valuation. The balances of and changes in DAC were as follows: 2020 2019 2018 (in millions) Balance at January 1 $ 2,673 $ 2,742 $ 2,639 Capitalization of acquisition costs 216 239 254 Amortization (164) (119) (288) Amortization, impact of valuation assumptions review (100) (14) 33 Impact of change in net unrealized (gains) losses on securities (117) (175) 104 Balance at December 31 $ 2,508 $ 2,673 $ 2,742 The balances of and changes in DSIC, which is included in other assets, were as follows: 2020 2019 2018 (in millions) Balance at January 1 $ 216 $ 249 $ 273 Capitalization of sales inducement costs 1 1 2 Amortization (13) (15) (42) Amortization, impact of valuation assumptions review (16) — — Impact of change in net unrealized (gains) losses on securities (1) (19) 16 Balance at December 31 $ 187 $ 216 $ 249 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
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 UL 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, 2020 and 2019, traditional life and UL insurance policies in force were $195.7 billion and $195.1 billion, respectively, of which $143.6 billion and $142.8 billion as of December 31, 2020 and 2019 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, 2020 2019 2018 (in millions) Direct premiums $ 565 $ 621 $ 621 Reinsurance ceded (224) (224) (225) Net premiums $ 341 $ 397 $ 396 Policy and contract charges are presented on the Consolidated Statements of Income net of $140 million, $132 million and $126 million of reinsurance ceded for non-traditional long-duration products for the years ended December 31, 2020, 2019 and 2018, respectively. The amount of claims recovered through reinsurance on all contracts was $400 million, $377 million and $331 million for the years ended December 31, 2020, 2019 and 2018, respectively. Reinsurance recoverables include approximately $2.7 billion and $2.5 billion related to LTC risk ceded to Genworth as of December 31, 2020 and 2019, respectively. Policyholder account balances, future policy benefits and claims include $440 million and $466 million related to previously assumed reinsurance arrangements as of December 31, 2020 and 2019, respectively. |
Policyholder Account Balances,
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 (in millions) Policyholder account balances Fixed annuities (1) $ 8,531 $ 8,909 Variable annuity fixed sub-accounts 5,104 5,103 UL/VUL insurance 3,122 3,110 IUL insurance 2,269 2,025 Structured variable annuities 1,371 — Other life insurance 605 646 Total policyholder account balances 21,002 19,793 Future policy benefits Variable annuity GMWB 3,049 1,462 Variable annuity GMAB (2) 1 (39) Other annuity liabilities 211 139 Fixed annuity life contingent liabilities 1,370 1,444 Life and DI insurance 1,187 1,212 LTC insurance 5,722 5,302 UL/VUL and other life insurance additional liabilities 1,259 1,033 Total future policy benefits 12,799 10,553 Policy claims and other policyholders’ funds 185 158 Total policyholder account balances, future policy benefits and claims $ 33,986 $ 30,504 (1) Includes fixed deferred annuities, non-life contingent fixed payout annuities and fixed deferred indexed annuity host contracts. (2) Includes the fair value of GMAB embedded derivatives that was a net asset as of both December 31, 2020 and 2019 reported as a contra liability. Fixed Annuities Fixed annuities include deferred, payout and fixed deferred indexed annuity contracts. In 2020, the Company discontinued sales of fixed deferred and fixed deferred indexed annuities. Deferred contracts offer a guaranteed minimum rate of interest and security of the principal invested. Payout contracts guarantee a fixed income payment for life or the term of the contract. Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates, ranging from 2.27% to 9.38% as of December 31, 2020, depending on year of issue, with an average rate of approximately 3.7%. 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 EIAs in 2007. The contract was issued with an initial term of seven The Company’s fixed index annuity product 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 previously offered S&P 500® Index and MSCI® EAFE Index account options. Both options offered two crediting durations, one-year and two-year. The contractholder could 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 could 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 11 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. Structured Variable Annuities In 2020, the Company began offering structured variable annuities which gives contractholders the option to allocate a portion of their account value to an indexed account with the contractholder’s rate of return, which may be positive or negative, tied to selected indices. Insurance Liabilities UL/VUL is the largest group of insurance policies written by the Company. Purchasers of UL accumulate cash value that increases by a fixed interest rate. Purchasers of VUL can select from a variety of investment options and can elect to allocate a portion to a fixed account or a separate account. A vast majority of the premiums received for VUL policies are held in separate accounts where the assets are held for the exclusive benefit of those policyholders. IUL is a UL policy that includes an indexed account. The rate of credited interest 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, incurred but not reported claims, obligations for anticipated future claims and unpaid reported 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 2.25% to 10% as of December 31, 2020. Anticipated interest rates for DI policies ranged from 2.25% to 7.5% as of December 31, 2020 and for LTC policies ranged from 5% to 5.7% as of December 31, 2020. 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% for DI and LTC claims, respectively, as of December 31, 2020. 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, 2020 2019 (in millions) Variable annuity $ 79,299 $ 74,965 VUL insurance 8,226 7,429 Other insurance 31 31 Total $ 87,556 $ 82,425 |
Variable Annuity and Insurance
Variable Annuity and Insurance Guarantees | 12 Months Ended |
Dec. 31, 2020 | |
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 10 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, 2020 December 31, 2019 Total Contract Value Net Weighted Average Attained Age Total Contract Value Net Weighted Average Attained Age (in millions, except age) GMDB: Return of premium $ 66,874 $ 64,932 $ 5 68 $ 62,909 $ 60,967 $ 5 67 Five/six-year reset 8,116 5,386 6 68 7,983 5,263 7 67 One-year ratchet 6,094 5,763 8 71 5,935 5,600 7 70 Five-year ratchet 1,436 1,381 — 67 1,396 1,340 — 66 Other 1,261 1,243 45 73 1,192 1,174 65 73 Total — GMDB $ 83,781 $ 78,705 $ 64 68 $ 79,415 $ 74,344 $ 84 67 GGU death benefit $ 1,183 $ 1,126 $ 162 71 $ 1,115 $ 1,063 $ 133 71 GMIB $ 187 $ 173 $ 6 71 $ 186 $ 172 $ 6 70 GMWB: GMWB $ 1,972 $ 1,967 $ 1 74 $ 1,999 $ 1,993 $ 1 73 GMWB for life 50,142 50,057 185 69 46,799 46,691 272 68 Total — GMWB $ 52,114 $ 52,024 $ 186 69 $ 48,798 $ 48,684 $ 273 68 GMAB $ 2,291 $ 2,291 $ — 61 $ 2,528 $ 2,524 $ — 60 (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. 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, 2020 December 31, 2019 Net Amount at Risk Weighted Average Attained Age Net Amount at Risk Weighted Average Attained Age (in millions, except age) UL secondary guarantees $ 6,587 67 $ 6,550 67 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, 2018 $ 17 $ 6 $ 463 $ (80) $ 489 Incurred claims 8 2 412 61 201 Paid claims (6) — — — (31) Balance at December 31, 2018 19 8 875 (19) 659 Incurred claims 2 (1) 587 (20) 141 Paid claims (5) — — — (42) Balance at December 31, 2019 16 7 1,462 (39) 758 Incurred claims 15 — 1,587 40 209 Paid claims (7) (1) — — (51) Balance at December 31, 2020 $ 24 $ 6 $ 3,049 $ 1 $ 916 (1) The incurred claims for GMWB and GMAB include 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, 2020 2019 (in millions) Mutual funds: Equity $ 45,947 $ 44,739 Bond 26,073 23,374 Other 6,911 6,471 Total mutual funds $ 78,931 $ 74,584 No gains or losses were recognized on assets transferred to separate accounts for the years ended December 31, 2020, 2019 and 2018. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt [Text Block] | Debt Short-Term Borrowings 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 $1.2 billion and $840 million as of December 31, 2020 and 2019, respectively. The amount of the Company’s liability including accrued interest was $200 million and $201 million as of December 31, 2020 and 2019, respectively. The remaining maturity of outstanding FHLB advances was less than three months as of December 31, 2020 and less than two months as of December 31, 2019. The weighted average annualized interest rate on the FHLB advances held as of December 31, 2020 and 2019 was 0.4% and 1.8%, respectively. 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 London Inter-Bank Offered Rate (“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. The amounts outstanding on this line of credit were nil and $50 million as of December 31, 2020 and 2019, respectively. 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 both December 31, 2020 and 2019. RTA, as the borrower, 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 both December 31, 2020 and 2019. Long-Term Debt On December 23, 2020, the Company issued a $500 million unsecured 3.5% surplus note due December 31, 2050 to Ameriprise Financial. The surplus note is subordinate in right of payment to the prior payment in full of the Company’s obligations to policyholders, claimants and beneficiaries and all other creditors. No payment of principal or interest shall be made without the prior approval of the Minnesota Department of Commerce and such payments shall be made only from RiverSource Life Insurance Company’s statutory surplus. Interest payments are due semiannually in arrears on June 30 and December 31, commencing on June 30, 2021. Subject to the preceding conditions, the Company may prepay all or a portion of the principal at any time. The outstanding balance was $500 million as of December 31, 2020 and is recorded in Long-term debt on the Consolidated Balance Sheets. |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Corporate debt securities $ — $ 12,107 $ 766 $ 12,873 Residential mortgage backed securities — 2,993 9 3,002 Commercial mortgage backed securities — 4,166 — 4,166 Asset backed securities — 817 395 1,212 State and municipal obligations — 1,344 — 1,344 Foreign government bonds and obligations — 257 — 257 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities: 1 21,684 1,170 22,855 Cash equivalents 2,419 713 — 3,132 Other assets: Interest rate derivative contracts 1 1,754 — 1,755 Equity derivative contracts 406 3,578 — 3,984 Foreign exchange derivative contracts 1 17 — 18 Credit derivative contracts — 1 — 1 Total other assets 408 5,350 — 5,758 Separate account assets at net asset value (“NAV”) 87,556 (1) Total assets at fair value $ 2,828 $ 27,747 $ 1,170 $ 119,301 Liabilities Policyholder account balances, future policy benefits and claims: Fixed deferred indexed annuity embedded derivatives $ — $ 3 $ 49 $ 52 IUL embedded derivatives — — 935 935 GMWB and GMAB embedded derivatives — — 2,316 2,316 (2) Structured variable annuities — — 70 70 Total policyholder account balances, future policy benefits and claims — 3 3,370 3,373 (3) Other liabilities: Interest rate derivative contracts — 734 — 734 Equity derivative contracts 182 3,329 — 3,511 Foreign exchange derivative contracts 2 — — 2 Credit derivative contracts — 1 — 1 Total other liabilities 184 4,064 — 4,248 Total liabilities at fair value $ 184 $ 4,067 $ 3,370 $ 7,621 December 31, 2019 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Corporate debt securities $ — $ 10,787 $ 735 $ 11,522 Residential mortgage backed securities — 3,091 17 3,108 Commercial mortgage backed securities — 3,618 — 3,618 Asset backed securities — 691 389 1,080 State and municipal obligations — 1,306 — 1,306 Foreign government bonds and obligations — 267 — 267 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities: 1 19,760 1,141 20,902 Cash equivalents — 1,256 — 1,256 Other assets: Interest rate derivative contracts — 1,451 — 1,451 Equity derivative contracts 162 2,650 — 2,812 Foreign exchange derivative contracts 1 15 — 16 Credit derivative contracts — 4 — 4 Total other assets 163 4,120 — 4,283 Separate account assets at NAV 82,425 (1) Total assets at fair value $ 164 $ 25,136 $ 1,141 $ 108,866 Liabilities Policyholder account balances, future policy benefits and claims: Fixed deferred indexed annuity embedded derivatives $ — $ 3 $ 43 $ 46 IUL embedded derivatives — — 881 881 GMWB and GMAB embedded derivatives — — 763 763 (4) Total policyholder account balances, future policy benefits and claims — 3 1,687 1,690 (5) Other liabilities: Interest rate derivative contracts — 418 — 418 Equity derivative contracts 36 3,018 — 3,054 Foreign exchange derivative contracts 1 5 — 6 Total other liabilities 37 3,441 — 3,478 Total liabilities at fair value $ 37 $ 3,444 $ 1,687 $ 5,168 (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 $2.4 billion of individual contracts in a liability position and $67 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2020. (3) The Company’s adjustment for nonperformance risk resulted in a $727 million cumulative decrease to the embedded derivatives as of December 31, 2020. (4) The fair value of the GMWB and GMAB embedded derivatives included $981 million of individual contracts in a liability position and $218 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2019. (5) The Company’s adjustment for nonperformance risk resulted in a $502 million cumulative decrease to the embedded derivatives as of December 31, 2019. 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 Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance, January 1, 2020 $ 735 $ 17 $ 389 $ 1,141 Total gains (losses) included in: Other comprehensive income (loss) 15 1 (2) 14 Purchases 62 39 — 101 Settlements (46) — (6) (52) Transfers into Level 3 — — 14 14 Transfers out of Level 3 — (48) — (48) Balance, December 31, 2020 $ 766 $ 9 $ 395 $ 1,170 Changes in unrealized gains (losses) relating to assets held at December 31, 2020 $ (1) $ — $ — $ (1) (1) Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2020 $ 15 $ 1 $ (2) $ 14 Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL GMWB and GMAB Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total (in millions) Balance, January 1, 2020 $ 43 $ 881 $ 763 $ — $ 1,687 Total (gains) losses included in: Net income 4 (2) 76 (2) 1,152 (3) 91 (3) 1,323 Issues 3 61 362 (21) 405 Settlements (1) (83) 39 — (45) Balance, December 31, 2020 $ 49 $ 935 $ 2,316 $ 70 $ 3,370 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2020 $ — $ 76 (2) $ 1,206 (3) $ — $ 1,282 Available-for-Sale Securities Corporate Residential Mortgage Backed Securities Asset Total (in millions) Balance, January 1, 2019 $ 871 $ 64 $ 374 $ 1,309 Total gains (losses) included in: Net income (1) — — (1) (1) Other comprehensive income (loss) 30 — 5 35 Purchases 55 27 — 82 Settlements (220) (3) — (223) Transfers into Level 3 — — 10 10 Transfers out of Level 3 — (71) — (71) Balance, December 31, 2019 $ 735 $ 17 $ 389 $ 1,141 Changes in unrealized gains (losses) relating to assets held at December 31, 2019 $ (1) $ — $ — $ (1) (1) Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2019 $ 14 $ 628 $ 328 $ 970 Total (gains) losses included in: Net income 8 (2) 209 (2) 80 (3) 297 Issues 21 113 361 495 Settlements — (69) (6) (75) Balance, December 31, 2019 $ 43 $ 881 $ 763 $ 1,687 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2019 $ — $ 209 (2) $ 82 (3) $ 291 Available-for-Sale Securities Other Derivative Contracts Corporate Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Total (in millions) Balance, January 1, 2018 $ 1,072 $ 87 $ — $ — $ 1,159 — Total gains (losses) included in: Net income (1) — — — (1) (1) (3) (3) Other comprehensive income (loss) (26) 1 — 3 (22) — Purchases 15 — 12 381 408 3 Settlements (189) (6) — — (195) — Transfers out of Level 3 — (18) (12) (10) (40) — Balance, December 31, 2018 $ 871 $ 64 $ — $ 374 $ 1,309 $ — Changes in unrealized gains (losses) relating to assets held at December 31, 2018 $ (1) $ — $ — $ — $ (1) (1) $ — Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2018 $ — $ 601 $ (49) $ 552 Total (gains) losses included in: Net income (3) (2) (9) (2) 49 (3) 37 Issues 17 90 350 457 Settlements — (54) (22) (76) Balance, December 31, 2018 $ 14 $ 628 $ 328 $ 970 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2018 $ — $ (9) (2) $ 47 (3) $ 38 (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 $196 million, $(190) million and $281 million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the years ended December 31, 2020, 2019 and 2018, respectively. Securities transferred from Level 3 primarily represent securities with fair values that are obtained from a third-party pricing service with observable inputs. 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, 2020 Fair Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 766 Discounted cash flow Yield/spread to U.S. Treasuries (1) 1.0% - 3.3% 1.5% Asset backed securities $ 395 Discounted cash flow Annual default rate 5.3% 5.3% Loss severity 25.0% 25.0% Yield/spread to swap rates (2) 250 bps - 400 bps 259 bps IUL embedded derivatives $ 935 Discounted cash flow Nonperformance risk (3) 65 bps 65 bps Fixed deferred indexed annuity embedded derivatives $ 49 Discounted cash flow Surrender rate (4) 0.0% - 50.0% 1.2% Nonperformance risk (3) 65 bps 65 bps GMWB and GMAB embedded derivatives $ 2,316 Discounted cash flow Utilization of guaranteed withdrawals (5) (6) 0.0% - 48.0% 10.6% Surrender rate (4) 0.1% - 73.5% 3.8% Market volatility (7) (8) 4.3% - 17.1% 11.0% Nonperformance risk (3) 65 bps 65 bps Structured variable annuity embedded derivatives $ 70 Discounted cash flow Surrender rate (4) 0.8% - 40.0% 0.9% Nonperformance risk (3) 65 bps 65 bps December 31, 2019 Fair Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 735 Discounted cash flow Yield/spread to U.S. Treasuries 0.8% - 2.8% 1.3% Asset backed securities $ 389 Discounted cash flow Annual default rate 3.5% Loss severity 25.0% Yield/spread to swap rates 120 bps - 170 bps 123 bps IUL embedded derivatives $ 881 Discounted cash flow Nonperformance risk (3) 65 bps Fixed deferred indexed annuity embedded derivatives $ 43 Discounted cash flow Surrender rate 0.0% - 50.0% Nonperformance risk (3) 65 bps GMWB and GMAB embedded derivatives $ 763 Discounted cash flow Utilization of guaranteed withdrawals (5) 0.0% - 36.0% Surrender rate 0.1% - 73.5% Market volatility (7) 3.7% - 15.9% Nonperformance risk (3) 65 bps (1) The weighted average for the spread to U.S. Treasuries for corporate debt securities (private placements) is weighted based on the security’s market value as a percentage of the aggregate market value of the securities. (2) The weighted average for the spread to swap rates for asset backed securities is calculated as the sum of each tranche’s balance multiplied by its spread to swap divided by the aggregate balances of the tranches. (3) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. (4) The weighted average surrender rate is weighted based on the benefit base of each contract and represents the average assumption in the current year including the effect of a dynamic surrender formula. (5) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. (6) The weighted average utilization rate represents the average assumption for the current year, weighting each policy evenly. The calculation excludes policies that have already started taking withdrawals. (7) Market volatility is implied volatility of fund of funds and managed volatility funds. (8) The weighted average market volatility represents the average volatility across all contracts, weighted by the size of the guaranteed benefit. 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. Uncertainty of Fair Value Measurements Significant increases (decreases) in the yield/spread to U.S. Treasuries used in the fair value measurement of Level 3 corporate debt securities in isolation would have resulted in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the annual default rate used in the fair value measurement of Level 3 asset backed securities in isolation, generally, would have resulted in a significantly lower (higher) fair value measurement and significant increases (decreases) in loss severity in isolation would have resulted in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the yield/spread to swap rates in isolation would have resulted in a significantly lower (higher) fair value measurement. Significant increases (decreases) in nonperformance risk used in the fair value measurement of the IUL embedded derivatives in isolation would have resulted in a significantly lower (higher) fair value measurement. Significant increases (decreases) in nonperformance risk and surrender rate used in the fair value measurements of the fixed deferred indexed annuity embedded derivatives and structured variable annuity embedded derivatives in isolation would have resulted in a significantly lower (higher) liability value. Significant increases (decreases) in utilization and volatility used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would have resulted 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 have resulted 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 time deposits and other highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less. Actively traded money market funds are measured at their NAV and classified as Level 1. U.S. Treasuries are also classified as Level 1. The Company’s remaining 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, commercial mortgage backed securities and asset backed securities. The fair value of corporate bonds, non-agency residential mortgage backed securities, commercial 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. The fair value of affiliated asset backed securities is determined using a discounted cash flow model. Inputs used to determine the expected cash flows include assumptions about discount rates and default, prepayment and recovery rates of the underlying assets. Given the significance of the unobservable inputs to this fair value measurement, the fair value of the investment in the affiliated asset backed securities is classified as Level 3. 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, 2020 and 2019. 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 There is no active market for the transfer of the Company’s embedded derivatives attributable to the provisions of certain variable annuity riders, fixed deferred indexed annuity, structured variable annuity and IUL products. The Company values the embedded derivatives attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculate fair value as the present value of future expected benefit payments less the present value of future expected rider fees attributable to the embedded derivative feature. The projected cash flows used by these models include observable capital market assumptions and incorporate significant unobservable inputs related to implied volatility as well as contractholder behavior assumptions that include margins for risk, all of which the Company believes a market participant would expect. The fair value also reflects a current estimate of the Company’s nonperformance risk 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 a discounted cash flow model to determine the fair value of the embedded derivatives associated with the provisions of its equity index annuity product. The projected cash flows generated by this model are based on significant observable inputs related to interest rates, volatilities and equity index levels and, therefore, are classified as Level 2. The Company uses discounted cash flow models including Black-Scholes calculations to determine the fair value of the embedded derivatives associated with the provisions of its fixed deferred indexed annuity, structured variable annuity and IUL products. The structured variable annuity product is a limited flexible purchase payment annuity that offers 45 different indexed account options providing equity market exposure and a fixed account. Each indexed account includes a protection option (a buffer or a floor). If the index has a negative return, contractholder losses will be reduced by buffer or limited to a floor. The portion allocated to an indexed account is accounted for as an embedded derivative. The fair value of fixed deferred indexed annuity, structured variable 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 deferred indexed annuity, structured variable 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. 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, 2020 and 2019. 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 impairment. The investments that are determined to be 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). The balance of affordable housing partnerships measured at fair value on a nonrecurring basis was $101 million and $158 million as of December 31, 2020 and 2019, respectively, 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, 2020 Carrying Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,574 $ — $ — $ 2,724 $ 2,724 Policy loans 846 — 846 — 846 (1) Other investments 457 — 417 40 457 Other receivables 1,430 — — 1,732 1,732 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 9,990 $ — $ — $ 11,686 $ 11,686 Short-term borrowings 200 — 200 — 200 Long-term debt 500 — 509 — 509 Other liabilities 12 — — 11 11 Separate account liabilities - investment contracts 351 — 351 — 351 December 31, 2019 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,655 $ — $ — $ 2,707 $ 2,707 Policy loans 867 — 867 — 867 (1) Other investments 410 — 376 34 410 Other receivables 1,514 — — 1,648 1,648 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 9,110 $ — $ — $ 10,061 $ 10,061 Short-term borrowings 201 — 201 — 201 Line of credit with Ameriprise Financial 50 — — 50 50 Other liabilities 22 — — 21 21 Separate account liabilities - investment contracts 340 — 340 — 340 (1) During the third quarter of 2020, management changed the fair value methodology for policy loans from estimating future expected cash flows and discounting the cash flows at a rate based on the U.S. Treasury curve to using the carrying value as an approximation of fair value as the policy loans are fully collateralized by the cash surrender value of the underlying policies. As a result, policy loans were reclassified from Level 3 to Level 2 in the valuation hierarchy. For comparability and consistency purposes, prior period amounts were revised to reflect the current methodology and classification. Other investments include syndicated loans and the Company’s membership in the FHLB. Other receivables include the deposit receivable. See Note 7 for additional information on mortgage loans, policy loans, syndicated loans and the deposit receivable. Policyholder account balances, future policy benefits and claims includes fixed annuities in deferral status, non-life contingent fixed annuities in payout status, indexed and structured variable annuity host contracts, and the fixed portion of a small number of variable annuity contracts classified as investment contracts. See Note 10 for additional information on these liabilities. Short-term borrowings include FHLB borrowings. Long-term debt includes the surplus note with Ameriprise Financial. See Note 12 for further information on short-term borrowings and long-term debt. Other liabilities include future funding commitments to affordable housing partnerships and other real estate partnerships. Separate account liabilities are related to certain annuity products that are classified as investment contracts. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions [Text Block] | Related Party Transactions Revenues See Note 4 for information about revenues from contracts with customers earned by the Company from related party transactions with affiliates. The Company is the lessor of one real estate property which it leases to Ameriprise Financial under an operating lease that expires November 30, 2029. The Company earned $5 million in rental income for each of the years ended December 31, 2020, 2019 and 2018, which is reflected in Other revenues on the Company’s Consolidated Statements of Income. The Company expects to earn $5 million in each year of the five year period ended December 31, 2025 and a total of $19 million thereafter. Expenses Charges by Ameriprise Financial and affiliated companies to the Company for use of joint facilities, technology support, marketing services and other services aggregated $358 million, $370 million and $365 million for the years ended December 31, 2020, 2019 and 2018, respectively. Certain of these costs are included in DAC. Expenses allocated to the Company may not be reflective of expenses that would have been incurred by the Company on a stand-alone basis. Income taxes The Company’s taxable income is included in the consolidated federal income tax return of Ameriprise Financial. The net amount due (to) from Ameriprise Financial for federal income taxes was $(297) million and $85 million as of December 31, 2020 and 2019, respectively, which is reflected in Other, net within operating activities on the Consolidated Statements of Cash Flows. Investments The Company invests in AA and A rated asset backed securities issued by AAF, an affiliate of the Company. The asset backed securities are collateralized by a portfolio of loans issued to advisors affiliated with AFS, an affiliated broker dealer. As of December 31, 2020 and 2019, the fair value of these asset backed securities was $372 million and $380 million, respectively, and is reported in Investments: Available-for-Sale Fixed Maturities on the Company’s Consolidated Balance Sheets. For both the years ended December 31, 2020 and December 31 2019, interest income from these asset backed securities was $14 million and is reported in Net investment income on the Company’s Consolidated Statements of Income. Lines of Credit 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 both December 31, 2020 and 2019. See Note 12 for information about additional lines of credit with an affiliate. Long-Term Debt See Note 12 for information about a surplus note to an affiliate. Dividends or distributions Cash dividends or distributions paid and received by RiverSource Life Insurance Company were as follows: Years Ended December 31, 2020 2019 2018 (in millions) Paid to Ameriprise Financial $ 800 $ 1,350 $ 750 Received from RiverSource Life of NY — 43 48 Received from RTA 95 100 45 Received from RiverSource REO 1, LLC (1) — — 2 (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
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Regulatory Requirements [Text Block] | Regulatory RequirementsThe 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, classifying surplus notes as a component of statutory surplus rather than debt, 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, 2019, 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 was 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 allowed 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 could be amortized over ten years using the straight-line method with the ability to accelerate amortization at management’s discretion. As of June 30, 2019, RiverSource Life Insurance Company elected to accelerate amortization of the net deferred amount associated with its permitted practice. State insurance statutes contain limitations as to the amount of dividends and other distributions that insurers may make without providing prior notification to state regulators. For RiverSource Life Insurance Company, payments 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 aggregated $1.3 billion and $326 million as of December 31, 2020 and 2019, respectively. In addition, dividends or distributions whose fair market value, together with that of other dividends or distributions made within the preceding 12 months, exceed 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 $4.8 billion and $2.9 billion as of December 31, 2020 and 2019, respectively. Statutory net gain from operations and net income (loss) for RiverSource Life Insurance Company are summarized as follows: Years Ended December 31, 2020 2019 2018 (in millions) Statutory net gain from operations $ 1,393 $ 1,505 $ 1,686 Statutory net income (loss) 1,582 786 1,628 |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
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 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, 2020 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 in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 5,391 $ — $ 5,391 $ (3,801) $ (1,243) $ (315) $ 32 OTC cleared 58 — 58 (25) — — 33 Exchange-traded 309 — 309 (90) (165) — 54 Total derivatives $ 5,758 $ — $ 5,758 $ (3,916) $ (1,408) $ (315) $ 119 December 31, 2019 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 in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 4,181 $ — $ 4,181 $ (2,886) $ (1,214) $ (73) $ 8 OTC cleared 21 — 21 (21) — — — Exchange-traded 81 — 81 (5) — — 76 Total derivatives $ 4,283 $ — $ 4,283 $ (2,912) $ (1,214) $ (73) $ 84 (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, 2020 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Gross Amounts Not Offset Net Amount Financial Instruments (1) Cash Securities (in millions) Derivatives: OTC $ 4,129 $ — $ 4,129 $ (3,801) $ (1) $ (327) $ — OTC cleared 25 — 25 (25) — — — Exchange-traded 94 — 94 (90) — — 4 Total derivatives 4,248 — 4,248 (3,916) (1) (327) 4 Repurchase agreements — — — — — — — Total $ 4,248 $ — $ 4,248 $ (3,916) $ (1) $ (327) $ 4 December 31, 2019 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 Net Amount Financial Instruments (1) Cash Securities (in millions) Derivatives: OTC $ 3,426 $ — $ 3,426 $ (2,886) $ — $ (540) $ — OTC cleared 41 — 41 (21) — — 20 Exchange-traded 11 — 11 (5) — — 6 Total derivatives 3,478 — 3,478 (2,912) — (540) 26 Repurchase agreements — — — — — — — Total $ 3,478 $ — $ 3,478 $ (2,912) $ — $ (540) $ 26 (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 amount of assets or liabilities presented are offset first by financial instruments that have the right of offset under master netting or similar arrangements, then any remaining amount is reduced by the amount of cash and securities collateral. The actual collateral may be greater than amounts presented in the tables. When the fair value of collateral accepted by the Company is less than the amount due to the Company, there is a risk of loss if the counterparty fails to perform or provide additional collateral. To mitigate this risk, the Company monitors collateral values regularly and requires additional collateral when necessary. When the value of collateral pledged by the Company declines, it may be required to post additional collateral. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities [Text Block] | Derivatives and Hedging Activities Derivative instruments enable the Company to manage its exposure to various market risks. The value of such instruments is derived from an underlying variable or multiple variables, including equity and interest rate indices or prices. The Company primarily enters into derivative agreements for risk management purposes related to the Company’s products and operations. Certain of the Company’s freestanding derivative instruments are subject to master netting arrangements. The Company’s policy on the recognition of derivatives on the 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, 2020 December 31, 2019 Notional Gross Fair Value Notional Gross Fair Value Assets (1) Liabilities (2)(3) Assets (1) Liabilities (2)(3) (in millions) Derivatives not designated as hedging instruments Interest rate contracts $ 77,925 $ 1,755 $ 734 $ 57,950 $ 1,451 $ 418 Equity contracts 55,993 3,984 3,511 60,596 2,812 3,054 Credit contracts 2,269 1 1 1,386 4 — Foreign exchange contracts 3,124 18 2 3,251 16 6 Total non-designated hedges 139,311 5,758 4,248 123,183 4,283 3,478 Embedded derivatives GMWB and GMAB (4) N/A — 2,316 N/A — 763 IUL N/A — 935 N/A — 881 Indexed annuities N/A — 52 N/A — 46 Structured variable annuity N/A — 70 N/A — — Total embedded derivatives N/A — 3,373 N/A — 1,690 Total derivatives $ 139,311 $ 5,758 $ 7,621 $ 123,183 $ 4,283 $ 5,168 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 fixed deferred 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 Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $3.7 billion and $2.3 billion as of December 31, 2020 and 2019, respectively. See Note 16 for additional information related to master netting arrangements and cash collateral. (4) The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2020 included $2.4 billion of individual contracts in a liability position and $67 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2019 included $981 million of individual contracts in a liability position and $218 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, 2020 and 2019, investment securities with a fair value of $325 million and $84 million, respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $325 million and $84 million, respectively, may be sold, pledged or rehypothecated by the Company. As of both December 31, 2020 and 2019, the Company had sold, pledged, or rehypothecated none of these securities. In addition, as of both December 31, 2020 and 2019, 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, 2020 Interest rate contracts $ — $ 1,633 Equity contracts 55 (744) Credit contracts — (106) Foreign exchange contracts — (8) Other contracts — — GMWB and GMAB embedded derivatives — (1,553) IUL embedded derivatives 7 — Fixed deferred indexed annuities embedded derivatives (4) — Structured indexed annuities embedded derivatives — (91) Total gain (loss) $ 58 $ (869) Year Ended December 31, 2019 Interest rate contracts $ — $ 1,100 Equity contracts 117 (1,501) Credit contracts — (73) Foreign exchange contracts — (30) Other contracts — — GMWB and GMAB embedded derivatives — (435) IUL embedded derivatives (140) — Fixed deferred indexed annuities embedded derivatives (8) — Total gain (loss) $ (31) $ (939) Year Ended December 31, 2018 Interest rate contracts $ — $ (312) Equity contracts (49) 306 Credit contracts — 7 Foreign exchange contracts — 1 Other contracts — (4) GMWB and GMAB embedded derivatives — (377) IUL embedded derivatives 63 — Fixed deferred indexed annuities embedded derivatives 3 — Total gain (loss) $ 17 $ (379) 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 indexed portion of structured variable annuities and 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 aggregate exposure related to the indexed portion of structured variable annuities and the GMAB and non-life contingent GMWB provisions using options, swaptions, swaps and futures The deferred premium associated with certain of the above options and swaptions is paid or received semiannually 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, 2020: Premiums Premiums (in millions) 2021 $ 153 $ 106 2022 207 205 2023 51 43 2024 141 26 2025 126 7 2026-2028 254 — Total $ 932 $ 387 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 may use a combination of futures, options, swaps and swaptions. Certain of the macro hedge derivatives may 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, if any, are shown in other contracts in the tables above. Fixed deferred indexed annuity, structured variable 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 fixed deferred indexed annuity, structured variable annuity and IUL products will positively or negatively impact earnings over the life of these products. The equity component of fixed deferred indexed annuity, structured variable 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 years ended December 31, 2020 and 2019, the Company held no derivatives that were designated as cash flow hedges. During the years ended December 31, 2020, 2019 and 2018, 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, 2020, 2019 and 2018, 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. 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, 2020 and 2019, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $324 million and $189 million, respectively. The aggregate fair value of assets posted as collateral for such instruments as of December 31, 2020 and 2019 was $324 million and $189 million, respectively. If the credit contingent provisions of derivative contracts in a net liability position as of both December 31, 2020 and 2019 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 nil. |
Shareholder's Equity
Shareholder's Equity | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ 811 $ (170) $ 641 Reclassification of net (gains) losses on securities included in net income (2) 5 (1) 4 Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables (379) 80 (299) Net unrealized gains (losses) on securities 437 (91) 346 Total other comprehensive income (loss) $ 437 $ (91) $ 346 Years Ended December 31, 2019 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ 1,360 $ (289) $ 1,071 Reclassification of net (gains) losses on securities included in net income (2) 2 — 2 Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables (688) 144 (544) Net unrealized gains (losses) on securities 674 (145) 529 Total other comprehensive income (loss) $ 674 $ (145) $ 529 Years Ended December 31, 2018 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ (952) $ 203 $ (749) Reclassification of net (gains) losses on securities included in net income (2) (9) 2 (7) Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables 435 (91) 344 Net unrealized gains (losses) on securities (526) 114 (412) Net unrealized gains (losses) on derivatives: Reclassification of net (gains) losses on derivatives included in net income (3) 1 — 1 Net unrealized gains (losses) on derivatives 1 — 1 Total other comprehensive income (loss) $ (525) $ 114 $ (411) (1) Includes impairments on Available-for-Sale securities related to factors other than credit that were recognized in OCI during the period. (2) Reclassification amounts are recorded in net realized investment gains (losses). (3) Reclassification amounts are recorded in net investment income. Other comprehensive income (loss) related to net unrealized gains (losses) on securities includes three components: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit 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 Gains (Losses) on Securities Net Unrealized Gains (Losses) on Derivatives Other Total (in millions) Balance, January 1, 2018 $ 458 $ (1) $ (1) $ 456 OCI before reclassifications (405) — — (405) Amounts reclassified from AOCI (7) 1 — (6) Total OCI (412) 1 — (411) Balance, December 31, 2018 46 (1) — (1) 45 OCI before reclassifications 527 — — 527 Amounts reclassified from AOCI 2 — — 2 Total OCI 529 — — 529 Balance, December 31, 2019 575 (1) — (1) 574 OCI before reclassifications 342 — — 342 Amounts reclassified from AOCI 4 — — 4 Total OCI 346 — — 346 Balance, December 31, 2020 $ 921 (1) $ — $ (1) $ 920 (1) Includes nil of noncredit related impairments on securities and net unrealized gains (losses) on previously impaired securities as of each December 31, 2020, 2019 and 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax provision were as follows: Years Ended December 31, 2020 2019 2018 (in millions) Current income tax Federal $ 233 $ 210 $ 35 State — 8 3 Total current income tax 233 218 38 Deferred income tax Federal (277) (271) (1) State (1) (7) (2) Total deferred income tax (278) (278) (3) Total income tax provision $ (45) $ (60) $ 35 On December 22, 2017, the Tax Act was signed into law. In 2018, the Company finalized its accounting related to the Tax Act and determined no adjustments were necessary. The principal reasons that the aggregate income tax provision is different from that computed by using the U.S. statutory rate of 21% were as follows: Years Ended December 31, 2020 2019 2018 Tax at U.S. statutory rate 21.0 % 21.0 % 21.0 % Changes in taxes resulting from: Low income housing tax credits (20.1) (15.3) (8.5) Dividend received deduction (9.7) (7.6) (4.2) Foreign tax credit, net of addback (1.9) (9.5) (2.8) Audit adjustments — (1.4) — Uncertain tax positions — 1.8 — Impact of Tax Act — — (1.1) Taxes applicable to prior years — — (1.1) Other, net (0.8) (0.4) 0.4 Income tax provision (11.5) % (11.4) % 3.7 % The decrease in the Company’s effective tax rate for the year ended December 31, 2019 compared to 2018 is primarily due to the lower pre-tax income relative to tax preferred items. Deferred income tax assets and liabilities result from temporary differences between the assets and liabilities measured for GAAP reporting versus income tax return purposes. Deferred income tax assets and liabilities are measured at the statutory rate of 21% as of both December 31, 2020 and 2019. 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, 2020 2019 (in millions) Deferred income tax assets Liabilities for policyholder account balances, future policy benefits and claims $ 1,617 $ 940 Investment related — 210 Other 13 12 Gross deferred income tax assets 1,630 1,162 Less: valuation allowance 11 11 Total deferred income tax assets 1,619 1,151 Deferred income tax liabilities Deferred acquisition costs 424 446 Net unrealized gains on Available-for-Sale securities 274 182 Investment related 216 — Deferred sales inducement costs 44 50 Other 12 13 Gross deferred income tax liabilities 970 691 Net deferred income tax assets $ 649 $ 460 Included in the Company’s deferred income tax assets are tax benefits primarily related to state net operating losses of $9 million, net of federal benefit, which will expire beginning December 31, 2021. 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 net operating losses of $9 million and state deferred tax assets of $2 million; 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: 2020 2019 2018 (in millions) Balance at January 1 $ 39 $ 19 $ 14 Additions based on tax positions related to the current year 1 1 5 Reductions based on tax positions related to the current year (1) — — Additions for tax positions of prior years — 34 1 Reductions for tax positions of prior years — (4) (1) Audit settlements — (11) — Reductions due to lapse of statute of limitations (1) — — Balance at December 31 $ 38 $ 39 $ 19 If recognized, approximately $20 million, $17 million and $8 million, net of federal tax benefits, of unrecognized tax benefits as of December 31, 2020, 2019 and 2018, respectively, would affect the effective tax rate. It is reasonably possible that the total amount of unrecognized tax benefits will change in the next 12 months. The Company estimates that the total amount of gross unrecognized tax benefits may decrease by approximately $11 million in the next 12 months primarily due to Internal Revenue Service (“IRS”) settlements. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized nil, a net increase of $1 million and nil in interest and penalties for the years ended December 31, 2020, 2019 and 2018, respectively. The Company had a payables of $2 million related to accrued interest and penalties as of both December 31, 2020 and 2019. The Company 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. The federal statute of limitations are closed on years through 2015, except for one issue for 2014 and 2015 which was claimed on amended returns. The IRS is currently auditing Ameriprise Financial’s U.S. income tax returns for 2016, 2017 and 2018. Ameriprise Financial’s or the Company’s state income tax returns are currently under examination by various jurisdictions for years ranging from 2010 through 2019. |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
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: 2020 2019 (in millions) Commercial mortgage loans $ 18 $ 59 Affordable housing and other real estate partnerships 12 22 Total funding commitments $ 30 $ 81 Guarantees The Company’s annuity and life products all have minimum interest rate guarantees in their fixed accounts. As of December 31, 2020, these guarantees range from 1% to 5%. Contingencies 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. Guaranty Fund Assessments 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 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 both December 31, 2020 and 2019, the estimated liability was $12 million. As of both December 31, 2020 and 2019, the related premium tax asset was $10 million. The expected period over which guaranty fund assessments will be made and the related tax credits recovered is not known. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation [Policy Text Block] | Principles of Consolidation A 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 using the measurement alternative method when the Company owns less than a 20% voting interest and does not exercise significant influence. Under the measurement alternative, the investment is recorded at the cost basis, less impairments, if any, plus or minus observable price changes of identical or similar investments of the same issuer. 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, deferred acquisition costs (“DAC”) and the corresponding recognition of DAC amortization, valuation of derivative instruments and hedging activities, litigation reserves, future policy benefits and 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 which is consistent with prior periods before January 1, 2020. Gains and losses are recognized on a trade date basis in the Consolidated Statements of Income upon disposition of the securities. Available-for-Sale securities are impaired when the fair value of an investment is less than its amortized cost. When an Available-for-Sale security is impaired, the Company first assesses whether or not: (i) it has the intent to sell the security (made a decision to sell) or (ii) it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If either of these conditions exist, the Company recognizes an impairment by reducing the book value of the security for the difference between the investment’s amortized cost and its fair value with a corresponding charge to earnings. Subsequent increases in the fair value of Available-for-Sale securities that occur in periods after a write-down has occurred are recorded as unrealized gains in other comprehensive income (“OCI”), while subsequent decreases in fair value would continue to be recorded as reductions of book value with a charge to earnings. For securities that do not meet the above criteria, the Company determines whether the decrease in fair value is due to a credit loss or due to other factors. The amount of impairment due to credit-related factors, if any, is recognized as an allowance for credit losses with a related charge to net realized investment gains (losses). The allowance for credit losses is limited to the amount by which the security’s amortized cost basis exceeds its fair value. The amount of the impairment related to other factors is recognized in OCI which is consistent with prior periods before January 1, 2020. Factors the Company considers in determining whether declines in the fair value of fixed maturity securities are due to credit-related factors include: (i) the extent to which the market value is below amortized cost; (ii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iii) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors. If through subsequent evaluation there is a sustained increase in cash flows expected, both the allowance and related charge to earnings may be reversed to reflect the increase in expected principal and interest payments. However, for Available-for-Sale securities that recognized an impairment prior to January 1, 2020 by reducing the book value of the security, the difference between the new amortized cost basis and the improved cash flows expected to be collected is accreted as interest income. In order to determine the amount of the credit loss component for corporate debt securities, a best estimate of the present value of cash flows expected to be collected discounted at the security’s effective interest rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and the Company’s position in the debtor’s overall capital structure. When assessing potential credit-related impairments for structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities and asset backed securities), the Company also considers credit-related factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections. Management has elected to exclude accrued interest in its measurement of the allowance for credit losses for Available-for-Sale securities. Accrued interest on Available-for-sale securities is recorded as earned in accrued investment income on the Consolidated Balance Sheets. Available-for-Sale securities are placed on nonaccrual status when the accrued balance becomes 90 days past due or earlier based on management’s evaluation of the facts and circumstances of each security under review. At this time all previously accrued interest is reversed through net investment income. Other Investments |
Financing Receivables [Policy Text Block] | Financing Receivables Financing receivables are comprised of commercial loans, policy loans, and deposit receivables. Commercial Loans Commercial loans include commercial mortgage loans and syndicated loans and are recorded at amortized cost less the allowance for loan losses. Commercial mortgage loans are recorded within mortgage loans and syndicated loans are recorded within other investments on the Consolidated Balance Sheets. Commercial mortgage loans are loans on commercial properties that are originated by the Company. Syndicated loans represent the Company’s investment in loan syndications originated by unrelated third parties. Interest income is accrued as earned on the unpaid principal balances of the loans. Interest income recognized on commercial mortgage loans and syndicated loans is recorded in net investment income on the Consolidated Statements of Income. Policy Loans Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, there is no allowance for credit losses. Interest income is accrued as earned on the unpaid principal balances of the loans. Interest income recognized on policy loans is recorded in accrued investment income on the Consolidated Statements of Income. Deposit Receivable For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability related to insurance risk in accordance with applicable accounting standards. If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Reinsurance deposits made are included in receivables. As amounts are received, consistent with the underlying contracts, the deposit receivable is adjusted. The deposit receivable is accreted using the interest method and the accretion is reported in other revenues. See Note 7 for additional information on financing receivables. Allowance for Credit Losses The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected over the asset’s expected life, considering past events, current conditions and reasonable and supportable forecasts of future economic conditions. Prior to January 1, 2020, the allowance for credit losses was based on an incurred loss model that did not require estimating expected credit losses over the expected life of the asset. Estimates of expected credit losses consider both historical charge-off and recovery experience as well as current economic conditions and management’s expectation of future charge-off and recovery levels. Expected losses related to risks other than credit risk are excluded from the allowance for credit losses. The allowance for credit losses is measured and recorded upon initial recognition of the loan, regardless of whether it is originated or purchased. The methods and information used to develop the allowance for credit losses for each class of financing receivable are discussed below. Commercial Loans The allowance for credit losses for commercial mortgage loans and syndicated loans utilizes a probability of default and loss severity approach to estimate lifetime expected credit losses. Actual historical default and loss severity data for each type of commercial loan is adjusted for current conditions and reasonable and supportable forecasts of future economic conditions to develop the probability of default and loss severity assumptions that are applied to the amortized cost basis of the loans over the expected life of each portfolio. The allowance for credit losses on commercial mortgage loans and syndicated loans is recorded through provisions charged to net realized investment gains (losses) and is reduced/increased by net charge-offs/recoveries. Management determines the adequacy of the allowance for credit losses based on the overall loan portfolio composition, recent and historical loss experience, and other pertinent factors, including when applicable, internal risk ratings, loan-to-value (“LTV”) ratios and occupancy rates, along with reasonable and supportable forecasts of economic and market conditions. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change. While the Company may attribute portions of the allowance to specific loan pools as part of the allowance estimation process, the entire allowance is available to absorb losses expected over the life of the loan portfolio. Deposit receivable The allowance for credit losses is calculated on an individual reinsurer basis. The deposit receivable is collateralized by an underlying trust arrangement. Management evaluates the terms of the reinsurance and trust agreements, the nature of the underlying assets, and the potential for changes in the collateral value when considering the need for an allowance for credit losses. Nonaccrual Loans Commercial mortgage loans and syndicated loans are placed on nonaccrual status when either the collection of interest or principal has become 90 days past due or is otherwise considered doubtful of collection. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Interest payments received on loans on nonaccrual status are generally applied to principal unless the remaining principal balance has been determined to be fully collectible. Management has elected to exclude accrued interest in its measurement of the allowance for credit losses for commercial mortgage loans and syndicated loans. 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. Modifications to loan terms do not automatically result in troubled debt restructurings (“TDRs”). Per the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus, modifications made on a good faith basis in response to the coronavirus disease 2019 (“COVID-19”) pandemic to borrowers who were not more than 30 days past due as of December 31, 2019, such as payment deferrals, extensions of repayment terms, fee waivers, or delays in payment that are not significant to the unpaid principal value of the loan, are not considered TDRs. 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. Charge-off and Foreclosure Charge-offs are recorded when the Company concludes that all or a portion of the commercial mortgage loan or syndicated loan is uncollectible. 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. Factors used by the Company to determine whether all amounts due on syndicated loans will be collected, include but are not limited to the borrower’s financial condition, industry outlook, and internal risk ratings based on rating agency data and internal analyst expectations. |
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. 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, long term care (“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 within reinsurance recoverables, net of the allowance for credit losses. The Company evaluates the financial condition of its reinsurers prior to entering into new reinsurance contracts and on a periodic basis during the contract term. The allowance for credit losses related to reinsurance recoverable is based on applying observable industry data including insurer ratings, default and loss severity data to the Company’s reinsurance recoverable balances. Management evaluates the results of the calculation and considers differences between the industry data and the Company’s data. Such differences include the fact that the Company has no actual history of losses and the fact that industry data may contain non-life insurers. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change given the long-term nature of these receivables. In addition, the Company has a reinsurance protection agreement that provides credit protections for its reinsured long term care business. The allowance for credit losses on reinsurance recoverable is recorded through provisions charged to benefits, claims, losses and settlement expenses on the Consolidated Statements of Income. 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 9 for additional information on reinsurance. |
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. For derivative instruments that qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is reported in AOCI and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Income with the hedged instrument or transaction impact. Any ineffective portion of the gain or loss is reported in current period earnings as a component of net investment income. If a hedge designation is removed or a hedge is terminated prior to maturity, the amount previously recorded in AOCI is reclassified to earnings over the period that the hedged item impacts earnings. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in AOCI are recognized in earnings immediately. The equity component of indexed annuity, structured variable annuity 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 AFS 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, structured 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 (losses) on securities 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 |
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 represent funds held for the benefit of and separate account liabilities represent the obligation to the variable annuity contractholders and variable life insurance policyholders who have a contractual right to receive the benefits of their contract or policy and bear the related investment risk. Gains and losses on separate account assets accrue directly to the contractholder or policyholder and are not reported in the Company’s Consolidated Statements of Income. Separate account assets are recorded at fair value and separate account liabilities are equal to the assets recognized. |
Policyholder Account Balances, Future Policy Benefits and Claims [Policy Text Block] | Policyholder Account Balances, Future Policy Benefits and Claims The Company establishes reserves to cover the benefits associated with non-traditional and traditional long-duration products. Non-traditional long-duration products include variable and structured variable annuity contracts, fixed annuity contracts and UL and VUL policies. Traditional long-duration products include term life, whole life, DI and LTC insurance products. Guarantees accounted for as insurance liabilities include GMDB, gain gross-up (“GGU”), guaranteed minimum income benefit (“GMIB”) and the life contingent benefits associated with GMWB. In addition, UL and VUL policies with product features that result in profits followed by losses are accounted for as insurance liabilities. Guarantees accounted for as embedded derivatives include GMAB and the non-life contingent benefits associated with GMWB. In addition, the portion of structured variable annuities, indexed annuities and IUL policies allocated to the indexed account is accounted for as an embedded derivative. 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 recoverables. 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 and structured variable annuities, indexed annuities and IUL products. Liabilities for fixed account values on variable, structured 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 11 for information regarding the liability for contracts with secondary guarantees. Liabilities for fixed deferred indexed annuity, structured variable annuity and 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 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 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, unless the Company’s management identifies a significant deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year. See Note 11 for information regarding variable annuity guarantees. Liabilities for fixed annuities in a benefit or payout status utilize assumptions established as of the date the payout phase is initiated. The liabilities are the present value of future estimated payments reduced for mortality (which is based on industry mortality tables with modifications based on the Company’s experience) and discounted with interest rates. Embedded Derivatives The fair value of embedded derivatives related to GMAB and the non-life contingent benefits associated with GMWB provisions 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. The fair value of embedded derivatives related to structured varaible annuities, indexed annuities and IUL fluctuate based on equity markets and interest rates and the estimate of the Company’s nonperformance risk and is a liability. See Note 13 for information regarding the fair value measurement of embedded derivatives. 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. Net level premium includes anticipated premium payments, mortality and morbidity rates, policy persistency and interest rates earned on assets supporting the liability. Gross premium valuation includes expected premium rate increases, benefit reductions, 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 current 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 10 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. |
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. See Note 4 for further discussion of accounting policies on revenue from contracts with customers. |
Revenue from Contract with Cu_2
Revenue from Contract with Customer (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table presents disaggregated revenue from contracts with customers and a reconciliation to total revenues reported on the Consolidated Statements of Income. Years Ended December 31, 2020 2019 2018 (in millions) Policy and contract charges Affiliated (from Columbia Management Investment Distributors, Inc.) $ 173 $ 170 $ 170 Unaffiliated 14 14 16 Total 187 184 186 Other revenues Administrative fees Affiliated (from Columbia Management Investment Services, Corp.) 44 43 44 Unaffiliated 18 20 22 62 63 66 Other fees Affiliated (from Columbia Management Investment Advisers, LLC (“CMIA”) and Columbia Wanger Asset Management, LLC) 351 344 336 Unaffiliated 4 4 3 355 348 339 Total 417 411 405 Total revenue from contracts with customers 604 595 591 Revenue from other sources (1) 3,172 3,223 3,330 Total revenues $ 3,776 $ 3,818 $ 3,921 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Assets and liabilities measured at fair value | |
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, 2020 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Corporate debt securities $ — $ 12,107 $ 766 $ 12,873 Residential mortgage backed securities — 2,993 9 3,002 Commercial mortgage backed securities — 4,166 — 4,166 Asset backed securities — 817 395 1,212 State and municipal obligations — 1,344 — 1,344 Foreign government bonds and obligations — 257 — 257 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities: 1 21,684 1,170 22,855 Cash equivalents 2,419 713 — 3,132 Other assets: Interest rate derivative contracts 1 1,754 — 1,755 Equity derivative contracts 406 3,578 — 3,984 Foreign exchange derivative contracts 1 17 — 18 Credit derivative contracts — 1 — 1 Total other assets 408 5,350 — 5,758 Separate account assets at net asset value (“NAV”) 87,556 (1) Total assets at fair value $ 2,828 $ 27,747 $ 1,170 $ 119,301 Liabilities Policyholder account balances, future policy benefits and claims: Fixed deferred indexed annuity embedded derivatives $ — $ 3 $ 49 $ 52 IUL embedded derivatives — — 935 935 GMWB and GMAB embedded derivatives — — 2,316 2,316 (2) Structured variable annuities — — 70 70 Total policyholder account balances, future policy benefits and claims — 3 3,370 3,373 (3) Other liabilities: Interest rate derivative contracts — 734 — 734 Equity derivative contracts 182 3,329 — 3,511 Foreign exchange derivative contracts 2 — — 2 Credit derivative contracts — 1 — 1 Total other liabilities 184 4,064 — 4,248 Total liabilities at fair value $ 184 $ 4,067 $ 3,370 $ 7,621 December 31, 2019 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Corporate debt securities $ — $ 10,787 $ 735 $ 11,522 Residential mortgage backed securities — 3,091 17 3,108 Commercial mortgage backed securities — 3,618 — 3,618 Asset backed securities — 691 389 1,080 State and municipal obligations — 1,306 — 1,306 Foreign government bonds and obligations — 267 — 267 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities: 1 19,760 1,141 20,902 Cash equivalents — 1,256 — 1,256 Other assets: Interest rate derivative contracts — 1,451 — 1,451 Equity derivative contracts 162 2,650 — 2,812 Foreign exchange derivative contracts 1 15 — 16 Credit derivative contracts — 4 — 4 Total other assets 163 4,120 — 4,283 Separate account assets at NAV 82,425 (1) Total assets at fair value $ 164 $ 25,136 $ 1,141 $ 108,866 Liabilities Policyholder account balances, future policy benefits and claims: Fixed deferred indexed annuity embedded derivatives $ — $ 3 $ 43 $ 46 IUL embedded derivatives — — 881 881 GMWB and GMAB embedded derivatives — — 763 763 (4) Total policyholder account balances, future policy benefits and claims — 3 1,687 1,690 (5) Other liabilities: Interest rate derivative contracts — 418 — 418 Equity derivative contracts 36 3,018 — 3,054 Foreign exchange derivative contracts 1 5 — 6 Total other liabilities 37 3,441 — 3,478 Total liabilities at fair value $ 37 $ 3,444 $ 1,687 $ 5,168 (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 $2.4 billion of individual contracts in a liability position and $67 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2020. (3) The Company’s adjustment for nonperformance risk resulted in a $727 million cumulative decrease to the embedded derivatives as of December 31, 2020. (4) The fair value of the GMWB and GMAB embedded derivatives included $981 million of individual contracts in a liability position and $218 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2019. (5) The Company’s adjustment for nonperformance risk resulted in a $502 million cumulative decrease to the embedded derivatives as of December 31, 2019. |
Schedule of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis | The following tables provide a summary of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis: Syndicated Loans Other Assets (in millions) Balance, January 1, 2020 $ — $ — Purchases — 2 Sales (2) — Transfers into Level 3 15 — Transfers out of Level 3 (70) — Consolidation of consolidated investment entities 149 — Balance, December 31, 2020 $ 92 $ 2 Changes in unrealized gains (losses) included in income relating to assets held at December 31, 2020 $ — $ — |
Schedule of fair value and unpaid principal balance of assets and liabilities carried at fair value under the fair value option | The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected: December 31, 2020 (in millions) Syndicated loans Unpaid principal balance $ 1,990 Excess unpaid principal over fair value (81) Fair value $ 1,909 Fair value of loans more than 90 days past due $ 5 Fair value of loans in nonaccrual status 19 Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both 24 Debt Unpaid principal balance $ 2,069 Excess unpaid principal over fair value (156) Carrying value (1) $ 1,913 (1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.0 billion as of December 31, 2020. |
Schedule of Debt [Table Text Block] | Debt of the consolidated investment entities and the stated interest rates were as follows: Carrying Value Weighted Average December 31, 2020 December 31, 2020 (in millions) Debt of consolidated CLOs due 2025-2031 $ 1,913 2.1 % |
Consolidated investment entities[Member] | |
Assets and liabilities measured at fair value | |
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 held by consolidated investment entities measured at fair value on a recurring basis: December 31, 2020 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Corporate debt securities $ — $ 8 $ — $ 8 Common stocks — 1 — 1 Syndicated loans — 1,817 92 1,909 Total investments — 1,826 92 1,918 Receivables — 16 — 16 Other assets — — 2 2 Total assets at fair value $ — $ 1,842 $ 94 $ 1,936 Liabilities Debt (1) $ — $ 1,913 $ — $ 1,913 Other liabilities — 69 — 69 Total liabilities at fair value $ — $ 1,982 $ — $ 1,982 (1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.0 billion as of December 31, 2020. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 Amortized Cost Gross Gross Allowance for Credit Losses Fair (in millions) Fixed maturities: Corporate debt securities $ 10,982 $ 1,903 $ (2) $ (10) $ 12,873 Residential mortgage backed securities 2,888 115 (1) — 3,002 Commercial mortgage backed securities 3,935 235 (4) — 4,166 State and municipal obligations 1,050 295 (1) — 1,344 Asset backed securities 1,168 45 (1) — 1,212 Foreign government bonds and obligations 236 22 (1) — 257 U.S. government and agency obligations 1 — — — 1 Total $ 20,260 $ 2,615 $ (10) $ (10) $ 22,855 Description of Securities December 31, 2019 Amortized Cost Gross Gross Fair (in millions) Fixed maturities: Corporate debt securities $ 10,188 $ 1,336 $ (2) $ 11,522 Residential mortgage backed securities 3,039 73 (4) 3,108 Commercial mortgage backed securities 3,526 95 (3) 3,618 State and municipal obligations 1,071 237 (2) 1,306 Asset backed securities 1,036 45 (1) 1,080 Foreign government bonds and obligations 250 19 (2) 267 U.S. government and agency obligations 1 — — 1 Total $ 19,111 $ 1,805 $ (14) $ 20,902 |
Fixed Maturity Securities by Rating Disclosure [Table Text Block] | A summary of fixed maturity securities by rating was as follows: Ratings December 31, 2020 December 31, 2019 Amortized Cost Fair Percent of Amortized Fair Percent of (in millions, except percentages) AAA $ 7,323 $ 7,698 34 % $ 6,771 $ 6,950 33 % AA 1,036 1,266 6 1,176 1,374 7 A 2,663 3,235 14 2,695 3,157 15 BBB 7,770 9,026 39 7,709 8,626 41 Below investment grade 1,468 1,630 7 760 795 4 Total fixed maturities $ 20,260 $ 22,855 100 % $ 19,111 $ 20,902 100 % |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value [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, 2020 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 26 $ 228 $ (1) 1 $ 12 $ (1) 27 $ 240 $ (2) Residential mortgage backed securities 11 47 (1) 7 14 — 18 61 (1) Commercial mortgage backed securities 12 179 (3) 7 60 (1) 19 239 (4) State and municipal obligations 2 4 — 1 4 (1) 3 8 (1) Asset backed securities 4 65 — 2 36 (1) 6 101 (1) Foreign government bonds and obligations 1 3 — 7 8 (1) 8 11 (1) Total 56 $ 526 $ (5) 25 $ 134 $ (5) 81 $ 660 $ (10) Description of Securities December 31, 2019 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 15 $ 64 $ — 7 $ 90 $ (2) 22 $ 154 $ (2) Residential mortgage backed securities 29 571 (1) 20 298 (3) 49 869 (4) Commercial mortgage backed securities 18 310 (1) 7 82 (2) 25 392 (3) State and municipal obligations 5 23 — 3 54 (2) 8 77 (2) Asset backed securities 10 111 (1) 6 54 — 16 165 (1) Foreign government bonds and obligations 1 — — 10 15 (2) 11 15 (2) Total 78 $ 1,079 $ (3) 53 $ 593 $ (11) 131 $ 1,672 $ (14) |
Rollforward of allowance for credit losses on Available-for-Sale securities | The following table presents a rollforward of the allowance for credit losses on Available-for-Sale securities: Corporate Debt Securities (in millions) Balance, January 1, 2020 (1) $ — Additions for which credit losses were not previously recognized 13 Additional increases (decreases) on securities that had an allowance recorded in a previous period (3) Balance, December 31, 2020 $ 10 |
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, 2020 2019 2018 (in millions) Gross realized investment gains $ 17 $ 29 $ 16 Gross realized investment losses (2) (14) (7) Credit losses (10) (17) — Total $ 5 $ (2) $ 9 |
Available-for-Sale Securities Contractual Maturity Disclosure [Table Text Block] | Available-for-Sale securities by contractual maturity as of December 31, 2020 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 596 $ 602 Due after one year through five years 4,373 4,697 Due after five years through 10 years 2,900 3,206 Due after 10 years 4,400 5,970 12,269 14,475 Residential mortgage backed securities 2,888 3,002 Commercial mortgage backed securities 3,935 4,166 Asset backed securities 1,168 1,212 Total $ 20,260 $ 22,855 |
Schedule of Net Investment Income [Table Text Block] | The following is a summary of net investment income: Years Ended December 31, 2020 2019 2018 (in millions) Fixed maturities $ 777 $ 848 $ 919 Mortgage loans 115 119 117 Other investments (3) (26) 11 889 941 1,047 Less: investment expenses 20 24 24 Total $ 869 $ 917 $ 1,023 |
Net Realized Investment Gains (Losses) [Table Text Block] | Net realized investment gains (losses) are summarized as follows: Years Ended December 31, 2020 2019 2018 (in millions) Fixed maturities $ 5 $ (2) $ 9 Mortgage loans (10) — 1 Other investments (5) — — Total $ (10) $ (2) $ 10 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Rollforward of the Allowance for Loan Losses [Table Text Block] | The following tables present a rollforward of the allowance for credit losses for the year ended December 31, 2020 Commercial Loans (in millions) Balance, December 31, 2019 (1) $ 20 Cumulative effect of adoption of current expected credit losses guidance 3 Balance, January 1, 2020 23 Provisions 12 Balance, December 31, 2020 $ 35 (1) Prior to January 1, 2020, the allowance for credit losses was based on an incurred loss model that did not require estimating expected credit losses over the expected life of the asset. Commercial Loans 2019 2018 (in millions) Balance at January 1 $ 20 $ 22 Charge-offs — (2) Balance at December 31 $ 20 $ 20 |
Schedule of Commercial Mortgage Loans by Year of Origination and Loan-to-Value Ratio | The table below presents the amortized cost basis of commercial mortgage loans as of December 31, 2020 by year of origination and loan-to-value ratio: Loan-to-Value Ratio 2020 2019 2018 2017 2016 Prior Total (in millions) > 100% $ — $ — $ 2 $ — $ — $ 10 $ 12 80% - 100% 15 16 9 3 7 15 65 60% - 80% 85 152 27 29 46 141 480 40% - 60% 20 50 74 147 111 543 945 < 40% 7 22 69 88 58 856 1,100 Total $ 127 $ 240 $ 181 $ 267 $ 222 $ 1,565 $ 2,602 |
Schedule of Commercial Mortgage Loans by Geographic Region [Table Text Block] | Loans Percentage December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 (in millions) South Atlantic $ 663 $ 705 25 % 26 % Pacific 784 792 30 30 Mountain 234 237 10 9 West North Central 192 207 7 8 East North Central 250 232 10 9 Middle Atlantic 165 167 6 6 West South Central 156 169 6 6 New England 47 47 2 2 East South Central 111 116 4 4 2,602 2,672 100 % 100 % Less: allowance for loan losses 28 17 Total $ 2,574 $ 2,655 |
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, 2020 December 31, 2019 December 31, 2020 December 31, 2019 (in millions) Retail $ 843 $ 891 32 % 33 % Office 358 404 14 15 Apartments 680 660 26 25 Industrial 401 404 16 15 Mixed use 76 66 3 3 Hotel 49 51 2 2 Other 195 196 7 7 2,602 2,672 100 % 100 % Less: allowance for loan losses 28 17 Total $ 2,574 $ 2,655 |
Schedule of Syndicated Loans by Origination Year and Internal Risk Rating | The table below presents the amortized cost basis of syndicated loans as of December 31, 2020 by origination year and internal risk rating: Internal Risk Rating 2020 2019 2018 2017 2016 Prior Total (in millions) Risk 5 $ — $ — $ — $ — $ — $ 2 $ 2 Risk 4 — — 3 7 — 7 17 Risk 3 — 7 6 19 10 18 60 Risk 2 23 42 45 51 10 32 203 Risk 1 14 25 35 43 17 30 164 Total $ 37 $ 74 $ 89 $ 120 $ 37 $ 89 $ 446 |
Deferred Acquisition Costs an_2
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: 2020 2019 2018 (in millions) Balance at January 1 $ 2,673 $ 2,742 $ 2,639 Capitalization of acquisition costs 216 239 254 Amortization (164) (119) (288) Amortization, impact of valuation assumptions review (100) (14) 33 Impact of change in net unrealized (gains) losses on securities (117) (175) 104 Balance at December 31 $ 2,508 $ 2,673 $ 2,742 |
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: 2020 2019 2018 (in millions) Balance at January 1 $ 216 $ 249 $ 273 Capitalization of sales inducement costs 1 1 2 Amortization (13) (15) (42) Amortization, impact of valuation assumptions review (16) — — Impact of change in net unrealized (gains) losses on securities (1) (19) 16 Balance at December 31 $ 187 $ 216 $ 249 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 2018 (in millions) Direct premiums $ 565 $ 621 $ 621 Reinsurance ceded (224) (224) (225) Net premiums $ 341 $ 397 $ 396 |
Policyholder Account Balances_2
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 (in millions) Policyholder account balances Fixed annuities (1) $ 8,531 $ 8,909 Variable annuity fixed sub-accounts 5,104 5,103 UL/VUL insurance 3,122 3,110 IUL insurance 2,269 2,025 Structured variable annuities 1,371 — Other life insurance 605 646 Total policyholder account balances 21,002 19,793 Future policy benefits Variable annuity GMWB 3,049 1,462 Variable annuity GMAB (2) 1 (39) Other annuity liabilities 211 139 Fixed annuity life contingent liabilities 1,370 1,444 Life and DI insurance 1,187 1,212 LTC insurance 5,722 5,302 UL/VUL and other life insurance additional liabilities 1,259 1,033 Total future policy benefits 12,799 10,553 Policy claims and other policyholders’ funds 185 158 Total policyholder account balances, future policy benefits and claims $ 33,986 $ 30,504 (1) Includes fixed deferred annuities, non-life contingent fixed payout annuities and fixed deferred indexed annuity host contracts. (2) Includes the fair value of GMAB embedded derivatives that was a net asset as of both December 31, 2020 and 2019 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, 2020 2019 (in millions) Variable annuity $ 79,299 $ 74,965 VUL insurance 8,226 7,429 Other insurance 31 31 Total $ 87,556 $ 82,425 |
Variable Annuity and Insuranc_2
Variable Annuity and Insurance Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 December 31, 2019 Total Contract Value Net Weighted Average Attained Age Total Contract Value Net Weighted Average Attained Age (in millions, except age) GMDB: Return of premium $ 66,874 $ 64,932 $ 5 68 $ 62,909 $ 60,967 $ 5 67 Five/six-year reset 8,116 5,386 6 68 7,983 5,263 7 67 One-year ratchet 6,094 5,763 8 71 5,935 5,600 7 70 Five-year ratchet 1,436 1,381 — 67 1,396 1,340 — 66 Other 1,261 1,243 45 73 1,192 1,174 65 73 Total — GMDB $ 83,781 $ 78,705 $ 64 68 $ 79,415 $ 74,344 $ 84 67 GGU death benefit $ 1,183 $ 1,126 $ 162 71 $ 1,115 $ 1,063 $ 133 71 GMIB $ 187 $ 173 $ 6 71 $ 186 $ 172 $ 6 70 GMWB: GMWB $ 1,972 $ 1,967 $ 1 74 $ 1,999 $ 1,993 $ 1 73 GMWB for life 50,142 50,057 185 69 46,799 46,691 272 68 Total — GMWB $ 52,114 $ 52,024 $ 186 69 $ 48,798 $ 48,684 $ 273 68 GMAB $ 2,291 $ 2,291 $ — 61 $ 2,528 $ 2,524 $ — 60 (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. |
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, 2020 December 31, 2019 Net Amount at Risk Weighted Average Attained Age Net Amount at Risk Weighted Average Attained Age (in millions, except age) UL secondary guarantees $ 6,587 67 $ 6,550 67 |
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, 2018 $ 17 $ 6 $ 463 $ (80) $ 489 Incurred claims 8 2 412 61 201 Paid claims (6) — — — (31) Balance at December 31, 2018 19 8 875 (19) 659 Incurred claims 2 (1) 587 (20) 141 Paid claims (5) — — — (42) Balance at December 31, 2019 16 7 1,462 (39) 758 Incurred claims 15 — 1,587 40 209 Paid claims (7) (1) — — (51) Balance at December 31, 2020 $ 24 $ 6 $ 3,049 $ 1 $ 916 (1) The incurred claims for GMWB and GMAB include 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, 2020 2019 (in millions) Mutual funds: Equity $ 45,947 $ 44,739 Bond 26,073 23,374 Other 6,911 6,471 Total mutual funds $ 78,931 $ 74,584 |
Fair Values of Assets and Lia_2
Fair Values of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Corporate debt securities $ — $ 12,107 $ 766 $ 12,873 Residential mortgage backed securities — 2,993 9 3,002 Commercial mortgage backed securities — 4,166 — 4,166 Asset backed securities — 817 395 1,212 State and municipal obligations — 1,344 — 1,344 Foreign government bonds and obligations — 257 — 257 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities: 1 21,684 1,170 22,855 Cash equivalents 2,419 713 — 3,132 Other assets: Interest rate derivative contracts 1 1,754 — 1,755 Equity derivative contracts 406 3,578 — 3,984 Foreign exchange derivative contracts 1 17 — 18 Credit derivative contracts — 1 — 1 Total other assets 408 5,350 — 5,758 Separate account assets at net asset value (“NAV”) 87,556 (1) Total assets at fair value $ 2,828 $ 27,747 $ 1,170 $ 119,301 Liabilities Policyholder account balances, future policy benefits and claims: Fixed deferred indexed annuity embedded derivatives $ — $ 3 $ 49 $ 52 IUL embedded derivatives — — 935 935 GMWB and GMAB embedded derivatives — — 2,316 2,316 (2) Structured variable annuities — — 70 70 Total policyholder account balances, future policy benefits and claims — 3 3,370 3,373 (3) Other liabilities: Interest rate derivative contracts — 734 — 734 Equity derivative contracts 182 3,329 — 3,511 Foreign exchange derivative contracts 2 — — 2 Credit derivative contracts — 1 — 1 Total other liabilities 184 4,064 — 4,248 Total liabilities at fair value $ 184 $ 4,067 $ 3,370 $ 7,621 December 31, 2019 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Corporate debt securities $ — $ 10,787 $ 735 $ 11,522 Residential mortgage backed securities — 3,091 17 3,108 Commercial mortgage backed securities — 3,618 — 3,618 Asset backed securities — 691 389 1,080 State and municipal obligations — 1,306 — 1,306 Foreign government bonds and obligations — 267 — 267 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities: 1 19,760 1,141 20,902 Cash equivalents — 1,256 — 1,256 Other assets: Interest rate derivative contracts — 1,451 — 1,451 Equity derivative contracts 162 2,650 — 2,812 Foreign exchange derivative contracts 1 15 — 16 Credit derivative contracts — 4 — 4 Total other assets 163 4,120 — 4,283 Separate account assets at NAV 82,425 (1) Total assets at fair value $ 164 $ 25,136 $ 1,141 $ 108,866 Liabilities Policyholder account balances, future policy benefits and claims: Fixed deferred indexed annuity embedded derivatives $ — $ 3 $ 43 $ 46 IUL embedded derivatives — — 881 881 GMWB and GMAB embedded derivatives — — 763 763 (4) Total policyholder account balances, future policy benefits and claims — 3 1,687 1,690 (5) Other liabilities: Interest rate derivative contracts — 418 — 418 Equity derivative contracts 36 3,018 — 3,054 Foreign exchange derivative contracts 1 5 — 6 Total other liabilities 37 3,441 — 3,478 Total liabilities at fair value $ 37 $ 3,444 $ 1,687 $ 5,168 (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 $2.4 billion of individual contracts in a liability position and $67 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2020. (3) The Company’s adjustment for nonperformance risk resulted in a $727 million cumulative decrease to the embedded derivatives as of December 31, 2020. (4) The fair value of the GMWB and GMAB embedded derivatives included $981 million of individual contracts in a liability position and $218 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2019. (5) The Company’s adjustment for nonperformance risk resulted in a $502 million cumulative decrease to the embedded derivatives as of December 31, 2019. |
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 Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance, January 1, 2020 $ 735 $ 17 $ 389 $ 1,141 Total gains (losses) included in: Other comprehensive income (loss) 15 1 (2) 14 Purchases 62 39 — 101 Settlements (46) — (6) (52) Transfers into Level 3 — — 14 14 Transfers out of Level 3 — (48) — (48) Balance, December 31, 2020 $ 766 $ 9 $ 395 $ 1,170 Changes in unrealized gains (losses) relating to assets held at December 31, 2020 $ (1) $ — $ — $ (1) (1) Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2020 $ 15 $ 1 $ (2) $ 14 Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL GMWB and GMAB Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total (in millions) Balance, January 1, 2020 $ 43 $ 881 $ 763 $ — $ 1,687 Total (gains) losses included in: Net income 4 (2) 76 (2) 1,152 (3) 91 (3) 1,323 Issues 3 61 362 (21) 405 Settlements (1) (83) 39 — (45) Balance, December 31, 2020 $ 49 $ 935 $ 2,316 $ 70 $ 3,370 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2020 $ — $ 76 (2) $ 1,206 (3) $ — $ 1,282 Available-for-Sale Securities Corporate Residential Mortgage Backed Securities Asset Total (in millions) Balance, January 1, 2019 $ 871 $ 64 $ 374 $ 1,309 Total gains (losses) included in: Net income (1) — — (1) (1) Other comprehensive income (loss) 30 — 5 35 Purchases 55 27 — 82 Settlements (220) (3) — (223) Transfers into Level 3 — — 10 10 Transfers out of Level 3 — (71) — (71) Balance, December 31, 2019 $ 735 $ 17 $ 389 $ 1,141 Changes in unrealized gains (losses) relating to assets held at December 31, 2019 $ (1) $ — $ — $ (1) (1) Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2019 $ 14 $ 628 $ 328 $ 970 Total (gains) losses included in: Net income 8 (2) 209 (2) 80 (3) 297 Issues 21 113 361 495 Settlements — (69) (6) (75) Balance, December 31, 2019 $ 43 $ 881 $ 763 $ 1,687 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2019 $ — $ 209 (2) $ 82 (3) $ 291 Available-for-Sale Securities Other Derivative Contracts Corporate Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Total (in millions) Balance, January 1, 2018 $ 1,072 $ 87 $ — $ — $ 1,159 — Total gains (losses) included in: Net income (1) — — — (1) (1) (3) (3) Other comprehensive income (loss) (26) 1 — 3 (22) — Purchases 15 — 12 381 408 3 Settlements (189) (6) — — (195) — Transfers out of Level 3 — (18) (12) (10) (40) — Balance, December 31, 2018 $ 871 $ 64 $ — $ 374 $ 1,309 $ — Changes in unrealized gains (losses) relating to assets held at December 31, 2018 $ (1) $ — $ — $ — $ (1) (1) $ — Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2018 $ — $ 601 $ (49) $ 552 Total (gains) losses included in: Net income (3) (2) (9) (2) 49 (3) 37 Issues 17 90 350 457 Settlements — (54) (22) (76) Balance, December 31, 2018 $ 14 $ 628 $ 328 $ 970 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2018 $ — $ (9) (2) $ 47 (3) $ 38 (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, 2020 Fair Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 766 Discounted cash flow Yield/spread to U.S. Treasuries (1) 1.0% - 3.3% 1.5% Asset backed securities $ 395 Discounted cash flow Annual default rate 5.3% 5.3% Loss severity 25.0% 25.0% Yield/spread to swap rates (2) 250 bps - 400 bps 259 bps IUL embedded derivatives $ 935 Discounted cash flow Nonperformance risk (3) 65 bps 65 bps Fixed deferred indexed annuity embedded derivatives $ 49 Discounted cash flow Surrender rate (4) 0.0% - 50.0% 1.2% Nonperformance risk (3) 65 bps 65 bps GMWB and GMAB embedded derivatives $ 2,316 Discounted cash flow Utilization of guaranteed withdrawals (5) (6) 0.0% - 48.0% 10.6% Surrender rate (4) 0.1% - 73.5% 3.8% Market volatility (7) (8) 4.3% - 17.1% 11.0% Nonperformance risk (3) 65 bps 65 bps Structured variable annuity embedded derivatives $ 70 Discounted cash flow Surrender rate (4) 0.8% - 40.0% 0.9% Nonperformance risk (3) 65 bps 65 bps December 31, 2019 Fair Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 735 Discounted cash flow Yield/spread to U.S. Treasuries 0.8% - 2.8% 1.3% Asset backed securities $ 389 Discounted cash flow Annual default rate 3.5% Loss severity 25.0% Yield/spread to swap rates 120 bps - 170 bps 123 bps IUL embedded derivatives $ 881 Discounted cash flow Nonperformance risk (3) 65 bps Fixed deferred indexed annuity embedded derivatives $ 43 Discounted cash flow Surrender rate 0.0% - 50.0% Nonperformance risk (3) 65 bps GMWB and GMAB embedded derivatives $ 763 Discounted cash flow Utilization of guaranteed withdrawals (5) 0.0% - 36.0% Surrender rate 0.1% - 73.5% Market volatility (7) 3.7% - 15.9% Nonperformance risk (3) 65 bps (1) The weighted average for the spread to U.S. Treasuries for corporate debt securities (private placements) is weighted based on the security’s market value as a percentage of the aggregate market value of the securities. (2) The weighted average for the spread to swap rates for asset backed securities is calculated as the sum of each tranche’s balance multiplied by its spread to swap divided by the aggregate balances of the tranches. (3) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. (4) The weighted average surrender rate is weighted based on the benefit base of each contract and represents the average assumption in the current year including the effect of a dynamic surrender formula. (5) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. (6) The weighted average utilization rate represents the average assumption for the current year, weighting each policy evenly. The calculation excludes policies that have already started taking withdrawals. (7) Market volatility is implied volatility of fund of funds and managed volatility funds. (8) The weighted average market volatility represents the average volatility across all contracts, weighted by the size of the guaranteed benefit. |
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, 2020 Carrying Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,574 $ — $ — $ 2,724 $ 2,724 Policy loans 846 — 846 — 846 (1) Other investments 457 — 417 40 457 Other receivables 1,430 — — 1,732 1,732 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 9,990 $ — $ — $ 11,686 $ 11,686 Short-term borrowings 200 — 200 — 200 Long-term debt 500 — 509 — 509 Other liabilities 12 — — 11 11 Separate account liabilities - investment contracts 351 — 351 — 351 December 31, 2019 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,655 $ — $ — $ 2,707 $ 2,707 Policy loans 867 — 867 — 867 (1) Other investments 410 — 376 34 410 Other receivables 1,514 — — 1,648 1,648 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 9,110 $ — $ — $ 10,061 $ 10,061 Short-term borrowings 201 — 201 — 201 Line of credit with Ameriprise Financial 50 — — 50 50 Other liabilities 22 — — 21 21 Separate account liabilities - investment contracts 340 — 340 — 340 (1) During the third quarter of 2020, management changed the fair value methodology for policy loans from estimating future expected cash flows and discounting the cash flows at a rate based on the U.S. Treasury curve to using the carrying value as an approximation of fair value as the policy loans are fully collateralized by the cash surrender value of the underlying policies. As a result, policy loans were reclassified from Level 3 to Level 2 in the valuation hierarchy. For comparability and consistency purposes, prior period amounts were revised to reflect the current methodology and classification. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of dividends paid and received [Table Text Block] | Cash dividends or distributions paid and received by RiverSource Life Insurance Company were as follows: Years Ended December 31, 2020 2019 2018 (in millions) Paid to Ameriprise Financial $ 800 $ 1,350 $ 750 Received from RiverSource Life of NY — 43 48 Received from RTA 95 100 45 Received from RiverSource REO 1, LLC (1) — — 2 (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, 2020 | |
Insurance [Abstract] | |
Summary of Statutory Net Gain from Operations and Net Income [Table Text Block] | Statutory net gain from operations and net income (loss) for RiverSource Life Insurance Company are summarized as follows: Years Ended December 31, 2020 2019 2018 (in millions) Statutory net gain from operations $ 1,393 $ 1,505 $ 1,686 Statutory net income (loss) 1,582 786 1,628 |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 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 in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 5,391 $ — $ 5,391 $ (3,801) $ (1,243) $ (315) $ 32 OTC cleared 58 — 58 (25) — — 33 Exchange-traded 309 — 309 (90) (165) — 54 Total derivatives $ 5,758 $ — $ 5,758 $ (3,916) $ (1,408) $ (315) $ 119 December 31, 2019 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 in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 4,181 $ — $ 4,181 $ (2,886) $ (1,214) $ (73) $ 8 OTC cleared 21 — 21 (21) — — — Exchange-traded 81 — 81 (5) — — 76 Total derivatives $ 4,283 $ — $ 4,283 $ (2,912) $ (1,214) $ (73) $ 84 (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, 2020 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Gross Amounts Not Offset Net Amount Financial Instruments (1) Cash Securities (in millions) Derivatives: OTC $ 4,129 $ — $ 4,129 $ (3,801) $ (1) $ (327) $ — OTC cleared 25 — 25 (25) — — — Exchange-traded 94 — 94 (90) — — 4 Total derivatives 4,248 — 4,248 (3,916) (1) (327) 4 Repurchase agreements — — — — — — — Total $ 4,248 $ — $ 4,248 $ (3,916) $ (1) $ (327) $ 4 December 31, 2019 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 Net Amount Financial Instruments (1) Cash Securities (in millions) Derivatives: OTC $ 3,426 $ — $ 3,426 $ (2,886) $ — $ (540) $ — OTC cleared 41 — 41 (21) — — 20 Exchange-traded 11 — 11 (5) — — 6 Total derivatives 3,478 — 3,478 (2,912) — (540) 26 Repurchase agreements — — — — — — — Total $ 3,478 $ — $ 3,478 $ (2,912) $ — $ (540) $ 26 (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 Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 December 31, 2019 Notional Gross Fair Value Notional Gross Fair Value Assets (1) Liabilities (2)(3) Assets (1) Liabilities (2)(3) (in millions) Derivatives not designated as hedging instruments Interest rate contracts $ 77,925 $ 1,755 $ 734 $ 57,950 $ 1,451 $ 418 Equity contracts 55,993 3,984 3,511 60,596 2,812 3,054 Credit contracts 2,269 1 1 1,386 4 — Foreign exchange contracts 3,124 18 2 3,251 16 6 Total non-designated hedges 139,311 5,758 4,248 123,183 4,283 3,478 Embedded derivatives GMWB and GMAB (4) N/A — 2,316 N/A — 763 IUL N/A — 935 N/A — 881 Indexed annuities N/A — 52 N/A — 46 Structured variable annuity N/A — 70 N/A — — Total embedded derivatives N/A — 3,373 N/A — 1,690 Total derivatives $ 139,311 $ 5,758 $ 7,621 $ 123,183 $ 4,283 $ 5,168 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 fixed deferred 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 Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $3.7 billion and $2.3 billion as of December 31, 2020 and 2019, respectively. See Note 16 for additional information related to master netting arrangements and cash collateral. |
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, 2020 Interest rate contracts $ — $ 1,633 Equity contracts 55 (744) Credit contracts — (106) Foreign exchange contracts — (8) Other contracts — — GMWB and GMAB embedded derivatives — (1,553) IUL embedded derivatives 7 — Fixed deferred indexed annuities embedded derivatives (4) — Structured indexed annuities embedded derivatives — (91) Total gain (loss) $ 58 $ (869) Year Ended December 31, 2019 Interest rate contracts $ — $ 1,100 Equity contracts 117 (1,501) Credit contracts — (73) Foreign exchange contracts — (30) Other contracts — — GMWB and GMAB embedded derivatives — (435) IUL embedded derivatives (140) — Fixed deferred indexed annuities embedded derivatives (8) — Total gain (loss) $ (31) $ (939) Year Ended December 31, 2018 Interest rate contracts $ — $ (312) Equity contracts (49) 306 Credit contracts — 7 Foreign exchange contracts — 1 Other contracts — (4) GMWB and GMAB embedded derivatives — (377) IUL embedded derivatives 63 — Fixed deferred indexed annuities embedded derivatives 3 — Total gain (loss) $ 17 $ (379) |
Schedule of Premiums for Derivative Option Contracts [Text Block] | 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, 2020: Premiums Premiums (in millions) 2021 $ 153 $ 106 2022 207 205 2023 51 43 2024 141 26 2025 126 7 2026-2028 254 — Total $ 932 $ 387 |
Shareholder's Equity (Tables)
Shareholder's Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ 811 $ (170) $ 641 Reclassification of net (gains) losses on securities included in net income (2) 5 (1) 4 Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables (379) 80 (299) Net unrealized gains (losses) on securities 437 (91) 346 Total other comprehensive income (loss) $ 437 $ (91) $ 346 Years Ended December 31, 2019 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ 1,360 $ (289) $ 1,071 Reclassification of net (gains) losses on securities included in net income (2) 2 — 2 Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables (688) 144 (544) Net unrealized gains (losses) on securities 674 (145) 529 Total other comprehensive income (loss) $ 674 $ (145) $ 529 Years Ended December 31, 2018 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ (952) $ 203 $ (749) Reclassification of net (gains) losses on securities included in net income (2) (9) 2 (7) Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables 435 (91) 344 Net unrealized gains (losses) on securities (526) 114 (412) Net unrealized gains (losses) on derivatives: Reclassification of net (gains) losses on derivatives included in net income (3) 1 — 1 Net unrealized gains (losses) on derivatives 1 — 1 Total other comprehensive income (loss) $ (525) $ 114 $ (411) (1) Includes impairments on Available-for-Sale securities related to factors other than credit that were recognized in OCI during the period. (2) Reclassification amounts are recorded in net realized investment gains (losses). (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 Gains (Losses) on Securities Net Unrealized Gains (Losses) on Derivatives Other Total (in millions) Balance, January 1, 2018 $ 458 $ (1) $ (1) $ 456 OCI before reclassifications (405) — — (405) Amounts reclassified from AOCI (7) 1 — (6) Total OCI (412) 1 — (411) Balance, December 31, 2018 46 (1) — (1) 45 OCI before reclassifications 527 — — 527 Amounts reclassified from AOCI 2 — — 2 Total OCI 529 — — 529 Balance, December 31, 2019 575 (1) — (1) 574 OCI before reclassifications 342 — — 342 Amounts reclassified from AOCI 4 — — 4 Total OCI 346 — — 346 Balance, December 31, 2020 $ 921 (1) $ — $ (1) $ 920 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 2018 (in millions) Current income tax Federal $ 233 $ 210 $ 35 State — 8 3 Total current income tax 233 218 38 Deferred income tax Federal (277) (271) (1) State (1) (7) (2) Total deferred income tax (278) (278) (3) Total income tax provision $ (45) $ (60) $ 35 |
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 21% were as follows: Years Ended December 31, 2020 2019 2018 Tax at U.S. statutory rate 21.0 % 21.0 % 21.0 % Changes in taxes resulting from: Low income housing tax credits (20.1) (15.3) (8.5) Dividend received deduction (9.7) (7.6) (4.2) Foreign tax credit, net of addback (1.9) (9.5) (2.8) Audit adjustments — (1.4) — Uncertain tax positions — 1.8 — Impact of Tax Act — — (1.1) Taxes applicable to prior years — — (1.1) Other, net (0.8) (0.4) 0.4 Income tax provision (11.5) % (11.4) % 3.7 % |
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, 2020 2019 (in millions) Deferred income tax assets Liabilities for policyholder account balances, future policy benefits and claims $ 1,617 $ 940 Investment related — 210 Other 13 12 Gross deferred income tax assets 1,630 1,162 Less: valuation allowance 11 11 Total deferred income tax assets 1,619 1,151 Deferred income tax liabilities Deferred acquisition costs 424 446 Net unrealized gains on Available-for-Sale securities 274 182 Investment related 216 — Deferred sales inducement costs 44 50 Other 12 13 Gross deferred income tax liabilities 970 691 Net deferred income tax assets $ 649 $ 460 |
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: 2020 2019 2018 (in millions) Balance at January 1 $ 39 $ 19 $ 14 Additions based on tax positions related to the current year 1 1 5 Reductions based on tax positions related to the current year (1) — — Additions for tax positions of prior years — 34 1 Reductions for tax positions of prior years — (4) (1) Audit settlements — (11) — Reductions due to lapse of statute of limitations (1) — — Balance at December 31 $ 38 $ 39 $ 19 |
Commitments, Guarantees and C_2
Commitments, Guarantees and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Funding commitments [Table Text Block] | The following table presents the Company’s funding commitments as of December 31: 2020 2019 (in millions) Commercial mortgage loans $ 18 $ 59 Affordable housing and other real estate partnerships 12 22 Total funding commitments $ 30 $ 81 |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation (Details) | Dec. 31, 2020item |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of wholly owned subsidiaries | 1 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Consolidation Info) (Details) | Dec. 31, 2020 |
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 Accoun_4
Summary of Significant Accounting Policies (Loans, PP&E, DAC) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Land, Buildings, Equipment and Software [Abstract] | |||
Land, buildings, equipment and software, net of accumulated depreciation | $ 124 | $ 129 | |
Accumulated depreciation | 202 | 189 | |
Depreciation and amortization expense | $ 14 | $ 16 | $ 15 |
Minimum [Member] | |||
Land, Buildings, Equipment and Software [Abstract] | |||
Depreciation and amortization periods | 3 years | ||
Maximum [Member] | |||
Land, Buildings, Equipment and Software [Abstract] | |||
Depreciation and amortization periods | 39 years |
Revenue from Contract with Cu_3
Revenue from Contract with Customer (Disaggregation) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenues | ||||
Revenue from contracts with customers | $ 604 | $ 595 | $ 591 | |
Revenue from other sources | [1] | 3,172 | 3,223 | 3,330 |
Total revenues | 3,776 | 3,818 | 3,921 | |
Receivables related to revenues from contracts with customers | 57 | 55 | ||
Policy and contract charges [Member] | ||||
Revenues | ||||
Revenue from contracts with customers | 187 | 184 | 186 | |
Policy and contract charges [Member] | Affiliated [Member] | ||||
Revenues | ||||
Revenue from contracts with customers | 173 | 170 | 170 | |
Policy and contract charges [Member] | Unaffiliated [Member] | ||||
Revenues | ||||
Revenue from contracts with customers | 14 | 14 | 16 | |
Other revenues: Administrative fees [Member] | ||||
Revenues | ||||
Revenue from contracts with customers | 62 | 63 | 66 | |
Other revenues: Administrative fees [Member] | Affiliated [Member] | ||||
Revenues | ||||
Revenue from contracts with customers | 44 | 43 | 44 | |
Other revenues: Administrative fees [Member] | Unaffiliated [Member] | ||||
Revenues | ||||
Revenue from contracts with customers | 18 | 20 | 22 | |
Other revenues: Other fees [Member] | ||||
Revenues | ||||
Revenue from contracts with customers | 355 | 348 | 339 | |
Other revenues: Other fees [Member] | Affiliated [Member] | ||||
Revenues | ||||
Revenue from contracts with customers | 351 | 344 | 336 | |
Other revenues: Other fees [Member] | Unaffiliated [Member] | ||||
Revenues | ||||
Revenue from contracts with customers | 4 | 4 | 3 | |
Total other revenues [Member] | ||||
Revenues | ||||
Revenue from contracts with customers | $ 417 | $ 411 | $ 405 | |
[1] | Amounts primarily consist of revenue associated with insurance and annuity products or financial instruments. |
Variable Interest Entities (Ass
Variable Interest Entities (Asset & Liability Balances) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Assets | |||
Liabilities | $ 131,111 | $ 118,607 | |
Recurring basis [Member] | |||
Assets | |||
Total assets at fair value | 119,301 | 108,866 | |
Other liabilities | 4,248 | 3,478 | |
Total liabilities at fair value | 7,621 | 5,168 | |
Recurring basis [Member] | Level 1 [Member] | |||
Assets | |||
Total assets at fair value | 2,828 | 164 | |
Other liabilities | 184 | 37 | |
Total liabilities at fair value | 184 | 37 | |
Recurring basis [Member] | Level 2 [Member] | |||
Assets | |||
Total assets at fair value | 27,747 | 25,136 | |
Other liabilities | 4,064 | 3,441 | |
Total liabilities at fair value | 4,067 | 3,444 | |
Recurring basis [Member] | Level 3 [Member] | |||
Assets | |||
Total assets at fair value | 1,170 | 1,141 | |
Total liabilities at fair value | 3,370 | 1,687 | |
Nonconsolidated VIEs [Member] | Affordable housing partnerships | |||
Assets | |||
Carrying value and maximum exposure to loss | 200 | 270 | |
Liabilities | 9 | 15 | |
Consolidated investment entities[Member] | |||
Assets | |||
Unfunded commitments | 13 | ||
Consolidated investment entities[Member] | |||
Assets | |||
Other assets | 2 | $ 0 | |
Debt | [1] | 1,913 | |
Estimated fair value of CLO debt | 2,000 | ||
Consolidated investment entities[Member] | Recurring basis [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 1,918 | ||
Receivables | 16 | ||
Other assets | 2 | ||
Total assets at fair value | 1,936 | ||
Debt | [1] | 1,913 | |
Other liabilities | 69 | ||
Total liabilities at fair value | 1,982 | ||
Consolidated investment entities[Member] | Recurring basis [Member] | Corporate debt securities [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 8 | ||
Consolidated investment entities[Member] | Recurring basis [Member] | Common stocks [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 1 | ||
Consolidated investment entities[Member] | Recurring basis [Member] | Syndicated loans [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 1,909 | ||
Consolidated investment entities[Member] | Recurring basis [Member] | Level 2 [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 1,826 | ||
Receivables | 16 | ||
Total assets at fair value | 1,842 | ||
Debt | [1] | 1,913 | |
Other liabilities | 69 | ||
Total liabilities at fair value | 1,982 | ||
Consolidated investment entities[Member] | Recurring basis [Member] | Level 2 [Member] | Corporate debt securities [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 8 | ||
Consolidated investment entities[Member] | Recurring basis [Member] | Level 2 [Member] | Common stocks [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 1 | ||
Consolidated investment entities[Member] | Recurring basis [Member] | Level 2 [Member] | Syndicated loans [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 1,817 | ||
Consolidated investment entities[Member] | Recurring basis [Member] | Level 3 [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 92 | ||
Other assets | 2 | ||
Total assets at fair value | 94 | ||
Consolidated investment entities[Member] | Recurring basis [Member] | Level 3 [Member] | Syndicated loans [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | $ 92 | ||
[1] | The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.0 billion as of December 31, 2020. |
Variable Interest Entities (Cha
Variable Interest Entities (Change in Level 3 Assets and Liabilities) (Details 2) - Consolidated investment entities[Member] $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Syndicated loans [Member] | |
Summary of changes in Level 3 assets held by consolidated investment entities | |
Balance at the beginning of the period | $ 0 |
Sales | (2) |
Transfers into Level 3 | 15 |
Transfers out of Level 3 | (70) |
Transfers into Level 3 from consolidation of collateralized loan obligations | 149 |
Balance at the end of the period | 92 |
Other assets [Member] | |
Summary of changes in Level 3 assets held by consolidated investment entities | |
Balance at the beginning of the period | 0 |
Purchases | 2 |
Balance at the end of the period | $ 2 |
Variable Interest Entities (FV
Variable Interest Entities (FV Option for Consolidated CLOs) (Details 3) - Consolidated investment entities[Member] $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($) | ||
Syndicated loans [Abstract] | ||
Unpaid principal balance | $ 1,990 | |
Excess estimated unpaid principal over fair value | (81) | |
Fair Value | 1,909 | |
Fair value of loans more than 90 days past due | 5 | |
Fair value of loans in nonaccrual status | 19 | |
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both | 24 | |
Debt Instruments [Abstract] | ||
Unpaid Principal Amount | 2,069 | |
Excess estimated unpaid principal over fair value | (156) | |
Fair Value | 1,913 | [1] |
Estimated fair value of CLO debt | 2,000 | |
Net Investment Income [Member] | ||
Debt Instruments [Abstract] | ||
Total net gains (losses) recognized in net investment income related to changes in fair value | $ 2 | |
[1] | The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.0 billion as of December 31, 2020. |
Variable Interest Entities (Deb
Variable Interest Entities (Debt Outstanding) (Details 4) - Consolidated investment entities[Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt and stated interest rates | ||
Long-term Debt | $ 1,913 | $ 0 |
Minimum [Member] | ||
Debt and stated interest rates | ||
Stated interest rate according to terms of CDO structure | 0.00% | |
Maximum [Member] | ||
Debt and stated interest rates | ||
Stated interest rate according to terms of CDO structure | 8.90% | |
Collateralized Loan Obligations [Member] | ||
Debt and stated interest rates | ||
Long-term Debt | $ 1,913 | |
Long-term Debt, Weighted Average Interest Rate | 2.10% |
Investments (AFS by type) (Deta
Investments (AFS by type) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Investments | ||||
Amortized cost | $ 20,260 | |||
Available-for-Sale: Fixed maturities, allowance for credit losses | 10 | $ 0 | [1] | |
Fair value | 22,855 | |||
investments purchased from affiliate | $ 368 | |||
Available-for-sale securities, Accrued interest excluded from amortized cost basis | 158 | |||
Securities owned and pledged as collateral, fair value | 2,900 | 1,900 | ||
Amount eligible to be repledged by counterparty | 454 | 576 | ||
Corporate debt securities [Member] | ||||
Investments | ||||
Amortized cost | 10,982 | 10,188 | ||
Gross unrealized gains | 1,903 | 1,336 | ||
Gross unrealized losses | (2) | (2) | ||
Available-for-Sale: Fixed maturities, allowance for credit losses | (10) | |||
Fair value | 12,873 | 11,522 | ||
Residential mortgage backed securities [Member] | ||||
Investments | ||||
Amortized cost | 2,888 | 3,039 | ||
Gross unrealized gains | 115 | 73 | ||
Gross unrealized losses | (1) | (4) | ||
Fair value | 3,002 | 3,108 | ||
Commercial mortgage backed securities [Member] | ||||
Investments | ||||
Amortized cost | 3,935 | 3,526 | ||
Gross unrealized gains | 235 | 95 | ||
Gross unrealized losses | (4) | (3) | ||
Fair value | 4,166 | 3,618 | ||
State and municipal obligations [Member] | ||||
Investments | ||||
Amortized cost | 1,050 | 1,071 | ||
Gross unrealized gains | 295 | 237 | ||
Gross unrealized losses | (1) | (2) | ||
Fair value | 1,344 | 1,306 | ||
Asset backed securities [Member] | ||||
Investments | ||||
Amortized cost | 1,168 | 1,036 | ||
Gross unrealized gains | 45 | 45 | ||
Gross unrealized losses | (1) | (1) | ||
Fair value | 1,212 | 1,080 | ||
Foreign government bonds and obligations [Member] | ||||
Investments | ||||
Amortized cost | 236 | 250 | ||
Gross unrealized gains | 22 | 19 | ||
Gross unrealized losses | (1) | (2) | ||
Fair value | 257 | 267 | ||
U.S. government and agency obligations [Member] | ||||
Investments | ||||
Amortized cost | 1 | 1 | ||
Gross unrealized gains | 0 | |||
Gross unrealized losses | 0 | |||
Fair value | 1 | 1 | ||
Total fixed maturities [Member] | ||||
Investments | ||||
Amortized cost | 20,260 | 19,111 | ||
Gross unrealized gains | 2,615 | 1,805 | ||
Gross unrealized losses | (10) | (14) | ||
Available-for-Sale: Fixed maturities, allowance for credit losses | (10) | |||
Fair value | $ 22,855 | $ 20,902 | ||
Fixed maturity securities as percentage of total investments | 85.00% | 83.00% | ||
Fixed maturity investments rated internally | $ 553 | $ 615 | ||
[1] | Prior to January 1, 2020, credit losses on Available-for-Sale securities were not recorded in an allowance but were recorded as a reduction of the book value of the security if the security was other-than-temporarily impaired. There is no adoption impact due to the prospective transition for Available-for-Sale securities. |
Investments (Rating info) (Deta
Investments (Rating info) (Details) $ in Millions | Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($)item |
Investments | ||
Available for-Sale: Fixed maturities, amortized cost | $ 20,260 | $ 19,111 |
Percentage of GNMA, FNMA and FHLMC securities rated AAA | 37.00% | 39.00% |
Number of holdings of any other issuer having greater than 10% of total equity | item | 0 | 0 |
Ameriprise Advisor Financing, LLC, an affiliate [Member] | ||
Investments | ||
Investment holdings of single issuer other than government sponsored enterprises greater than 10% of shareholders equity | $ 372 | $ 380 |
AAA [Member] | ||
Investments | ||
Available for-Sale: Fixed maturities, amortized cost | 7,323 | 6,771 |
Fixed maturities, fair value | $ 7,698 | $ 6,950 |
Percent of total fair value | 34.00% | 33.00% |
AA [Member] | ||
Investments | ||
Available for-Sale: Fixed maturities, amortized cost | $ 1,036 | $ 1,176 |
Fixed maturities, fair value | $ 1,266 | $ 1,374 |
Percent of total fair value | 6.00% | 7.00% |
A [Member] | ||
Investments | ||
Available for-Sale: Fixed maturities, amortized cost | $ 2,663 | $ 2,695 |
Fixed maturities, fair value | $ 3,235 | $ 3,157 |
Percent of total fair value | 14.00% | 15.00% |
BBB [Member] | ||
Investments | ||
Available for-Sale: Fixed maturities, amortized cost | $ 7,770 | $ 7,709 |
Fixed maturities, fair value | $ 9,026 | $ 8,626 |
Percent of total fair value | 39.00% | 41.00% |
Below investment grade [Member] | ||
Investments | ||
Available for-Sale: Fixed maturities, amortized cost | $ 1,468 | $ 760 |
Fixed maturities, fair value | $ 1,630 | $ 795 |
Percent of total fair value | 7.00% | 4.00% |
Total fixed maturities [Member] | ||
Investments | ||
Available for-Sale: Fixed maturities, amortized cost | $ 20,260 | $ 19,111 |
Fixed maturities, fair value | $ 22,855 | $ 20,902 |
Percent of total fair value | 100.00% | 100.00% |
Investments (EITF info-Number o
Investments (EITF info-Number of positions and unrealized loss info) (Details) $ in Millions | Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($)item |
Number of Securities | ||
Less than 12 months | item | 56 | 78 |
12 months or more | item | 25 | 53 |
Total | item | 81 | 131 |
Unrealized Losses | ||
Less than 12 months | $ | $ (5) | $ (3) |
12 months or more | $ | (5) | (11) |
Total | $ | $ (10) | $ (14) |
Corporate debt securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 26 | 15 |
12 months or more | item | 1 | 7 |
Total | item | 27 | 22 |
Unrealized Losses | ||
Less than 12 months | $ | $ (1) | $ 0 |
12 months or more | $ | (1) | (2) |
Total | $ | $ (2) | $ (2) |
Residential mortgage backed securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 11 | 29 |
12 months or more | item | 7 | 20 |
Total | item | 18 | 49 |
Unrealized Losses | ||
Less than 12 months | $ | $ (1) | $ (1) |
12 months or more | $ | 0 | (3) |
Total | $ | $ (1) | $ (4) |
Commercial mortgage backed securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 12 | 18 |
12 months or more | item | 7 | 7 |
Total | item | 19 | 25 |
Unrealized Losses | ||
Less than 12 months | $ | $ (3) | $ (1) |
12 months or more | $ | (1) | (2) |
Total | $ | $ (4) | $ (3) |
State and municipal obligations [Member] | ||
Number of Securities | ||
Less than 12 months | item | 2 | 5 |
12 months or more | item | 1 | 3 |
Total | item | 3 | 8 |
Unrealized Losses | ||
Less than 12 months | $ | $ 0 | $ 0 |
12 months or more | $ | (1) | (2) |
Total | $ | $ (1) | $ (2) |
Asset backed securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 4 | 10 |
12 months or more | item | 2 | 6 |
Total | item | 6 | 16 |
Unrealized Losses | ||
Less than 12 months | $ | $ 0 | $ (1) |
12 months or more | $ | (1) | 0 |
Total | $ | $ (1) | $ (1) |
Foreign government bonds and obligations [Member] | ||
Number of Securities | ||
Less than 12 months | item | 1 | 1 |
12 months or more | item | 7 | 10 |
Total | item | 8 | 11 |
Unrealized Losses | ||
Less than 12 months | $ | $ 0 | $ 0 |
12 months or more | $ | (1) | (2) |
Total | $ | $ (1) | $ (2) |
Investments Investments (EITF i
Investments Investments (EITF info-Fair value info) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value [Line Items] | ||
Less than 12 months | $ 526 | $ 1,079 |
12 months or more | 134 | 593 |
Total | $ 660 | 1,672 |
Investment Grade AFS securities with gross unrealized losses | 83.00% | |
Corporate debt securities [Member] | ||
Fair Value [Line Items] | ||
Less than 12 months | $ 228 | 64 |
12 months or more | 12 | 90 |
Total | 240 | 154 |
Residential mortgage backed securities [Member] | ||
Fair Value [Line Items] | ||
Less than 12 months | 47 | 571 |
12 months or more | 14 | 298 |
Total | 61 | 869 |
Commercial mortgage backed securities [Member] | ||
Fair Value [Line Items] | ||
Less than 12 months | 179 | 310 |
12 months or more | 60 | 82 |
Total | 239 | 392 |
State and municipal obligations [Member] | ||
Fair Value [Line Items] | ||
Less than 12 months | 4 | 23 |
12 months or more | 4 | 54 |
Total | 8 | 77 |
Asset backed securities [Member] | ||
Fair Value [Line Items] | ||
Less than 12 months | 65 | 111 |
12 months or more | 36 | 54 |
Total | 101 | 165 |
Foreign government bonds and obligations [Member] | ||
Fair Value [Line Items] | ||
Less than 12 months | 3 | 0 |
12 months or more | 8 | 15 |
Total | $ 11 | $ 15 |
Investments Investments (Allowa
Investments Investments (Allowance for credit losses rollforward) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($) | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 0 | [1] |
Additions for which credit losses were not previously recognized | 13 | |
Allowance for Credit Loss, Period Increase (Decrease) | (3) | |
Ending balance | $ 10 | |
[1] | Prior to January 1, 2020, credit losses on Available-for-Sale securities were not recorded in an allowance but were recorded as a reduction of the book value of the security if the security was other-than-temporarily impaired. There is no adoption impact due to the prospective transition for Available-for-Sale securities. |
Investments (Realized GL info)
Investments (Realized GL info) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale, Realized Gain (Loss) [Abstract] | |||
Gross realized investment gains | $ 17 | $ 29 | $ 16 |
Gross realized investment losses | (2) | (14) | (7) |
Credit losses | (10) | (17) | 0 |
Total | $ 5 | $ (2) | $ 9 |
Investments (AFS contractual ma
Investments (AFS contractual maturity) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Due within one year | $ 596 | |
Due after one year through five years | 4,373 | |
Due after five years through 10 years | 2,900 | |
Due after 10 years | 4,400 | |
Total having single maturity dates | 12,269 | |
Total amortized cost | 20,260 | |
Fair Value | ||
Due within one year | 602 | |
Due after one year through five years | 4,697 | |
Due after five years through 10 years | 3,206 | |
Due after 10 years | 5,970 | |
Total having single maturity dates | 14,475 | |
Total fair value | 22,855 | |
Residential mortgage backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 2,888 | |
Total amortized cost | 2,888 | $ 3,039 |
Fair Value | ||
Without single maturity dates | 3,002 | |
Total fair value | 3,002 | 3,108 |
Commercial mortgage backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 3,935 | |
Total amortized cost | 3,935 | 3,526 |
Fair Value | ||
Without single maturity dates | 4,166 | |
Total fair value | 4,166 | 3,618 |
Asset backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 1,168 | |
Total amortized cost | 1,168 | 1,036 |
Fair Value | ||
Without single maturity dates | 1,212 | |
Total fair value | $ 1,212 | $ 1,080 |
Investments (Net inv inc summar
Investments (Net inv inc summary) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Investment Income [Line Items] | |||
Gross investment income | $ 889 | $ 941 | $ 1,047 |
Less: investment expenses | 20 | 24 | 24 |
Total | 869 | 917 | 1,023 |
Fixed maturities [Member] | |||
Net Investment Income [Line Items] | |||
Gross investment income | 777 | 848 | 919 |
Mortgage loans [Member] | |||
Net Investment Income [Line Items] | |||
Gross investment income | 115 | 119 | 117 |
Other investments [Member] | |||
Net Investment Income [Line Items] | |||
Gross investment income | $ (3) | $ (26) | $ 11 |
Investments (Net realized inves
Investments (Net realized investment GL summary) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Investment Income [Line Items] | |||
Net realized investment gains (losses) | $ (10) | $ (2) | $ 10 |
Total fixed maturities [Member] | |||
Net Investment Income [Line Items] | |||
Net realized investment gains (losses) | 5 | (2) | 9 |
Mortgage loans [Member] | |||
Net Investment Income [Line Items] | |||
Net realized investment gains (losses) | (10) | 0 | 1 |
Other investments [Member] | |||
Net Investment Income [Line Items] | |||
Net realized investment gains (losses) | $ (5) | $ 0 | $ 0 |
Financing Receivables (Allowanc
Financing Receivables (Allowance for Loan Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Rollforward of the allowance for loan losses | |||
Beginning balance | $ 20 | $ 20 | $ 22 |
Provision for Loan, Lease, and Other Losses | 0 | (2) | |
Ending balance | 20 | 20 | |
Syndicated loans [Member] | |||
Recorded investment in financing receivables by impairment method and type of loan | |||
Loans purchased | 140 | 121 | 137 |
Loans sold | 13 | 43 | $ 44 |
Commercial Real Estate | |||
Rollforward of the allowance for loan losses | |||
Beginning balance | 20 | ||
Provision for Loan, Lease, and Other Losses | 12 | ||
Ending balance | 35 | 20 | |
Recorded investment in financing receivables by impairment method and type of loan | |||
Interest Receivable | 14 | 11 | |
Commercial Real Estate | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Rollforward of the allowance for loan losses | |||
Beginning balance | 3 | ||
Ending balance | 3 | ||
Commercial Real Estate | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | |||
Rollforward of the allowance for loan losses | |||
Beginning balance | $ 23 | ||
Ending balance | $ 23 |
Financing Receivables (Credit Q
Financing Receivables (Credit Quality Information Text) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) | |
90 days or more past due [Member] | ||
Credit quality information [Line Items] | ||
Nonperforming loans | $ 7 | $ 9 |
Commercial mortgage loans [Member] | ||
Credit quality information [Line Items] | ||
Nonperforming loans | $ 0 | $ 0 |
Percent of commercial mortgage loans with highest risk rating | 1.00% | 1.00% |
Financing Receivable, Modifications, Number of Contracts | loan | 88 | |
Impaired Financing Receivable, Unpaid Principal Balance | $ 360 | |
Impaired Financing Receivable, Unpaid Interest Balance | 10 | |
Total loans, gross | $ 2,602 | $ 2,672 |
Commercial mortgage loans [Member] | Interest receivable | ||
Credit quality information [Line Items] | ||
Financing Receivable, Modifications, Number of Contracts | loan | 1 | |
Commercial mortgage loans [Member] | Debt-to-Value Ratio, Greater than 100 Percent | ||
Credit quality information [Line Items] | ||
Total loans, gross | $ 12 | |
Syndicated loans [Member] | ||
Credit quality information [Line Items] | ||
Nonperforming loans | 2 | 1 |
Total loans, gross | $ 446 | $ 395 |
Financing Receivables (Credit_2
Financing Receivables (Credit Quality Information Tables) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Commercial mortgage loans [Line Items] | ||||
Less: allowance for loan losses | $ 20 | $ 20 | $ 22 | |
Commercial mortgage loans [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Originated in 2020 | $ 127 | |||
Originated in 2019 | 240 | |||
Originated in 2018 | 181 | |||
Originated in 2017 | 267 | |||
Originated in 2016 | 222 | |||
Originated prior to 2016 | 1,565 | |||
Total loans, gross | 2,602 | 2,672 | ||
Less: allowance for loan losses | 28 | 17 | ||
Total loans, net | $ 2,574 | $ 2,655 | ||
Percentage of gross commercial mortgage loans | 100.00% | 100.00% | ||
Nonperforming loans | $ 0 | $ 0 | ||
Commercial mortgage loans [Member] | Retail [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 843 | $ 891 | ||
Percentage of gross commercial mortgage loans | 32.00% | 33.00% | ||
Commercial mortgage loans [Member] | Office [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 358 | $ 404 | ||
Percentage of gross commercial mortgage loans | 14.00% | 15.00% | ||
Commercial mortgage loans [Member] | Apartments [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 680 | $ 660 | ||
Percentage of gross commercial mortgage loans | 26.00% | 25.00% | ||
Commercial mortgage loans [Member] | Industrial [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 401 | $ 404 | ||
Percentage of gross commercial mortgage loans | 16.00% | 15.00% | ||
Commercial mortgage loans [Member] | Mixed use [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 76 | $ 66 | ||
Percentage of gross commercial mortgage loans | 3.00% | 3.00% | ||
Commercial mortgage loans [Member] | Hotel [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 49 | $ 51 | ||
Percentage of gross commercial mortgage loans | 2.00% | 2.00% | ||
Commercial mortgage loans [Member] | Other [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 195 | $ 196 | ||
Percentage of gross commercial mortgage loans | 7.00% | 7.00% | ||
Commercial mortgage loans [Member] | South Atlantic [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 663 | $ 705 | ||
Percentage of gross commercial mortgage loans | 25.00% | 26.00% | ||
Commercial mortgage loans [Member] | Pacific [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 784 | $ 792 | ||
Percentage of gross commercial mortgage loans | 30.00% | 30.00% | ||
Commercial mortgage loans [Member] | Mountain [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 234 | $ 237 | ||
Percentage of gross commercial mortgage loans | 10.00% | 9.00% | ||
Commercial mortgage loans [Member] | West North Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 192 | $ 207 | ||
Percentage of gross commercial mortgage loans | 7.00% | 8.00% | ||
Commercial mortgage loans [Member] | East North Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 250 | $ 232 | ||
Percentage of gross commercial mortgage loans | 10.00% | 9.00% | ||
Commercial mortgage loans [Member] | Middle Atlantic [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 165 | $ 167 | ||
Percentage of gross commercial mortgage loans | 6.00% | 6.00% | ||
Commercial mortgage loans [Member] | West South Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 156 | $ 169 | ||
Percentage of gross commercial mortgage loans | 6.00% | 6.00% | ||
Commercial mortgage loans [Member] | New England [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 47 | $ 47 | ||
Percentage of gross commercial mortgage loans | 2.00% | 2.00% | ||
Commercial mortgage loans [Member] | East South Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 111 | $ 116 | ||
Percentage of gross commercial mortgage loans | 4.00% | 4.00% | ||
Commercial mortgage loans [Member] | Debt-to-Value Ratio, Greater than 100 Percent | ||||
Commercial mortgage loans [Line Items] | ||||
Originated in 2020 | $ 0 | |||
Originated in 2019 | 0 | |||
Originated in 2018 | 2 | |||
Originated in 2017 | 0 | |||
Originated in 2016 | 0 | |||
Originated prior to 2016 | 10 | |||
Total loans, gross | 12 | |||
Commercial mortgage loans [Member] | Debt-to-Value Ratio, 80 to 100 Percent | ||||
Commercial mortgage loans [Line Items] | ||||
Originated in 2020 | 15 | |||
Originated in 2019 | 16 | |||
Originated in 2018 | 9 | |||
Originated in 2017 | 3 | |||
Originated in 2016 | 7 | |||
Originated prior to 2016 | 15 | |||
Total loans, gross | 65 | |||
Commercial mortgage loans [Member] | Debt-to-Value, 60 to 80 Percent | ||||
Commercial mortgage loans [Line Items] | ||||
Originated in 2020 | 85 | |||
Originated in 2019 | 152 | |||
Originated in 2018 | 27 | |||
Originated in 2017 | 29 | |||
Originated in 2016 | 46 | |||
Originated prior to 2016 | 141 | |||
Total loans, gross | 480 | |||
Commercial mortgage loans [Member] | Debt-to-Value, 40 to 60 Percent | ||||
Commercial mortgage loans [Line Items] | ||||
Originated in 2020 | 20 | |||
Originated in 2019 | 50 | |||
Originated in 2018 | 74 | |||
Originated in 2017 | 147 | |||
Originated in 2016 | 111 | |||
Originated prior to 2016 | 543 | |||
Total loans, gross | 945 | |||
Commercial mortgage loans [Member] | Debt-to-Value, Less than 40 Percent | ||||
Commercial mortgage loans [Line Items] | ||||
Originated in 2020 | 7 | |||
Originated in 2019 | 22 | |||
Originated in 2018 | 69 | |||
Originated in 2017 | 88 | |||
Originated in 2016 | 58 | |||
Originated prior to 2016 | 856 | |||
Total loans, gross | 1,100 | |||
Syndicated loans [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Originated in 2020 | 37 | |||
Originated in 2019 | 74 | |||
Originated in 2018 | 89 | |||
Originated in 2017 | 120 | |||
Originated in 2016 | 37 | |||
Originated prior to 2016 | 89 | |||
Total loans, gross | 446 | $ 395 | ||
Nonperforming loans | 2 | $ 1 | ||
Syndicated loans [Member] | Internal Risk Rating 5 | ||||
Commercial mortgage loans [Line Items] | ||||
Originated in 2020 | 0 | |||
Originated in 2019 | 0 | |||
Originated in 2018 | 0 | |||
Originated in 2017 | 0 | |||
Originated in 2016 | 0 | |||
Originated prior to 2016 | 2 | |||
Total loans, gross | 2 | |||
Syndicated loans [Member] | Internal Risk Rating 4 | ||||
Commercial mortgage loans [Line Items] | ||||
Originated in 2020 | 0 | |||
Originated in 2019 | 0 | |||
Originated in 2018 | 3 | |||
Originated in 2017 | 7 | |||
Originated in 2016 | 0 | |||
Originated prior to 2016 | 7 | |||
Total loans, gross | 17 | |||
Syndicated loans [Member] | Internal Risk Rating 3 | ||||
Commercial mortgage loans [Line Items] | ||||
Originated in 2020 | 0 | |||
Originated in 2019 | 7 | |||
Originated in 2018 | 6 | |||
Originated in 2017 | 19 | |||
Originated in 2016 | 10 | |||
Originated prior to 2016 | 18 | |||
Total loans, gross | 60 | |||
Syndicated loans [Member] | Internal Risk Rating 2 | ||||
Commercial mortgage loans [Line Items] | ||||
Originated in 2020 | 23 | |||
Originated in 2019 | 42 | |||
Originated in 2018 | 45 | |||
Originated in 2017 | 51 | |||
Originated in 2016 | 10 | |||
Originated prior to 2016 | 32 | |||
Total loans, gross | 203 | |||
Syndicated loans [Member] | Internal Risk Rating 1 | ||||
Commercial mortgage loans [Line Items] | ||||
Originated in 2020 | 14 | |||
Originated in 2019 | 25 | |||
Originated in 2018 | 35 | |||
Originated in 2017 | 43 | |||
Originated in 2016 | 17 | |||
Originated prior to 2016 | 30 | |||
Total loans, gross | 164 | |||
Syndicated loans [Member] | Assets, Total | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 446 |
Financing Receivables Financing
Financing Receivables Financing Receivables (Reinsurance Deposit Receivable) (Details) - USD ($) $ in Billions | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Deposit receivable | $ 1.4 | $ 1.5 |
Financing Receivables (Troubled
Financing Receivables (Troubled Debt Restructurings) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Commitments to lend additional funds to borrowers for restructured loans | $ 0 | $ 0 |
Deferred Acquisition Costs an_3
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Balances of and changes in DAC | |||
Balance at the beginning of the period | $ 2,673 | $ 2,742 | $ 2,639 |
Capitalization of acquisition costs | 216 | 239 | 254 |
Amortization, excluding the impact of valuation assumptions review | (164) | (119) | (288) |
Amortization, impact of valuation assumptions review | (100) | (14) | 33 |
Impact of change in net unrealized (gains) losses on securities | (117) | (175) | 104 |
Balance at the end of the period | 2,508 | 2,673 | 2,742 |
Balances of and changes in DSIC | |||
Balance at the beginning of the period | 216 | 249 | 273 |
Capitalization of sales inducement costs | 1 | 1 | 2 |
Amortization, excluding the impact of valuation assumptions review | (13) | (15) | (42) |
Amortization, impact of valuation assumptions review | (16) | 0 | 0 |
Impact of change in net unrealized (gains) losses on securities | (1) | (19) | 16 |
Balance at the end of the period | $ 187 | $ 216 | $ 249 |
Reinsurance (Product informatio
Reinsurance (Product information) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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 | $ 195,700,000,000 | $ 195,100,000,000 |
Traditional life and UL insurance in force, reinsured | $ 143,600,000,000 | $ 142,800,000,000 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effects of Reinsurance [Line Items] | |||
Net premiums | $ 341 | $ 397 | $ 396 |
Traditional long-duration products [Member] | |||
Effects of Reinsurance [Line Items] | |||
Direct premiums | 565 | 621 | 621 |
Reinsurance ceded | (224) | (224) | (225) |
Net premiums | $ 341 | $ 397 | $ 396 |
Reinsurance (Ceded and recovere
Reinsurance (Ceded and recovered amounts) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effects of Reinsurance [Line Items] | |||
Reinsurance recovered from reinsurers | $ 400 | $ 377 | $ 331 |
Liability for assumed reinsurance arrangements | 440 | 466 | |
Non-traditional long-duration products [Member] | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance ceded offset within policy and contract charges | 140 | $ 132 | $ 126 |
LTC [Member] | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance recoverable related to LTC risk ceded to Genworth | $ 2,700 |
Policyholder Account Balances_3
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Balances by product) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Policyholder account balances | $ 21,002 | $ 19,793 | |
Future policy benefits | 12,799 | 10,553 | |
Policy claims and other policyholders’ funds | 185 | 158 | |
Total policyholder account balances, future policy benefits and claims | 33,986 | 30,504 | |
Fixed annuities [Member] | |||
Policyholder account balances | [1] | 8,531 | 8,909 |
Variable annuity fixed sub-accounts [Member] | |||
Policyholder account balances | 5,104 | 5,103 | |
UL/VUL insurance [Member] | |||
Policyholder account balances | 3,122 | 3,110 | |
IUL insurance [Member] | |||
Policyholder account balances | 2,269 | 2,025 | |
Structured Variable Annuity [Member] | |||
Policyholder account balances | 1,371 | 0 | |
Other life insurance [Member] | |||
Policyholder account balances | 605 | 646 | |
Variable annuity GMWB [Member] | |||
Future policy benefits | 1,462 | ||
Variable annuity GMAB [Member] | |||
Future policy benefits | [2] | (39) | |
Other annuity liabilities [Member] | |||
Future policy benefits | 211 | 139 | |
Fixed annuity life contingent liabilities [Member] | |||
Future policy benefits | 1,370 | 1,444 | |
Life and DI insurance [Member] | |||
Future policy benefits | 1,187 | 1,212 | |
LTC insurance [Member] | |||
Future policy benefits | 5,722 | 5,302 | |
UL/VUL and other life insurance additional liabilities [Member] | |||
Future policy benefits | $ 1,259 | $ 1,033 | |
[1] | Includes fixed deferred annuities, non-life contingent fixed payout annuities and fixed deferred indexed annuity host contracts. | ||
[2] | Includes the fair value of GMAB embedded derivatives that was a net asset as of both December 31, 2020 and 2019 reported as a contra liability. |
Policyholder Account Balances_4
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Text) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Liability for Future Policy Benefits [Line Items] | |
Fixed annuities liabilities average interest rate | 3.70% |
Minimum [Member] | |
Liability for Future Policy Benefits [Line Items] | |
Fixed annuities liabilities interest rates | 2.27% |
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 | 2.25% |
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 | 2.25% |
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 | 6.00% |
LTC [Member] | Minimum [Member] | |
Liability for Future Policy Benefits [Line Items] | |
Anticipated interest rate for future claims | 5.00% |
LTC [Member] | Maximum [Member] | |
Liability for Future Policy Benefits [Line Items] | |
Anticipated interest rate for future claims | 5.70% |
Policyholder Account Balances_5
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Separate Account Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Separate Accounts Disclosure [Abstract] | ||
Variable annuity | $ 79,299 | $ 74,965 |
VUL insurance | 8,226 | 7,429 |
Other insurance | 31 | 31 |
Total | $ 87,556 | $ 82,425 |
Variable Annuity and Insuranc_3
Variable Annuity and Insurance Guarantees Variable Annuity and Insurance Guarantees (VA Guarantees Details Text) (Details) - GMAB [Member] | 12 Months Ended |
Dec. 31, 2020 | |
Variable Annuity Guarantees by Benefit Type | |
Maximum age of variable annuity contractholders | 79 years |
GMAB rider guarantees waiting period | 10 years |
Variable Annuity and Insuranc_4
Variable Annuity and Insurance Guarantees (VA Guarantee Details Table) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | |||
GMDB [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 83,781 | $ 79,415 | |
Contract value in separate accounts | [1] | 78,705 | 74,344 | |
Net amount at risk | [1] | $ 64 | $ 84 | |
Weighted average attained age | [1] | 68 years | 67 years | |
GMDB [Member] | Return of premium [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 66,874 | $ 62,909 | |
Contract value in separate accounts | [1] | 64,932 | 60,967 | |
Net amount at risk | [1] | $ 5 | $ 5 | |
Weighted average attained age | [1] | 68 years | 67 years | |
GMDB [Member] | Five/six year reset [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 8,116 | $ 7,983 | |
Contract value in separate accounts | [1] | 5,386 | 5,263 | |
Net amount at risk | [1] | $ 6 | $ 7 | |
Weighted average attained age | [1] | 68 years | 67 years | |
GMDB [Member] | One-year ratchet [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 6,094 | $ 5,935 | |
Contract value in separate accounts | [1] | 5,763 | 5,600 | |
Net amount at risk | [1] | $ 8 | $ 7 | |
Weighted average attained age | [1] | 71 years | 70 years | |
GMDB [Member] | Five-year ratchet [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 1,436 | $ 1,396 | |
Contract value in separate accounts | [1] | 1,381 | 1,340 | |
Net amount at risk | [1] | $ 0 | $ 0 | |
Weighted average attained age | [1] | 67 years | 66 years | |
GMDB [Member] | Other [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 1,261 | $ 1,192 | |
Contract value in separate accounts | [1] | 1,243 | 1,174 | |
Net amount at risk | [1] | $ 45 | $ 65 | |
Weighted average attained age | [1] | 73 years | 73 years | |
GGU death benefit [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 1,183 | $ 1,115 | |
Contract value in separate accounts | [1] | 1,126 | 1,063 | |
Net amount at risk | [1] | $ 162 | $ 133 | |
Weighted average attained age | [1] | 71 years | 71 years | |
GMIB [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 187 | $ 186 | |
Contract value in separate accounts | [1] | 173 | 172 | |
Net amount at risk | [1] | $ 6 | $ 6 | |
Weighted average attained age | [1] | 71 years | 70 years | |
GMWB [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | $ 52,114 | $ 48,798 | [1] | |
Contract value in separate accounts | [1] | 52,024 | 48,684 | |
Net amount at risk | [1] | $ 186 | $ 273 | |
Weighted average attained age | [1] | 69 years | 68 years | |
GMWB [Member] | GMWB standard benefit [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 1,972 | $ 1,999 | |
Contract value in separate accounts | [1] | 1,967 | 1,993 | |
Net amount at risk | [1] | $ 1 | $ 1 | |
Weighted average attained age | [1] | 74 years | 73 years | |
GMWB [Member] | GMWB for life [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 50,142 | $ 46,799 | |
Contract value in separate accounts | [1] | 50,057 | 46,691 | |
Net amount at risk | [1] | $ 185 | $ 272 | |
Weighted average attained age | [1] | 69 years | 68 years | |
GMAB [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | $ 2,291 | $ 2,528 | [1] | |
Contract value in separate accounts | [1] | 2,291 | 2,524 | |
Net amount at risk | [1] | $ 0 | $ 0 | |
Weighted average attained age | [1] | 61 years | 60 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. |
Variable Annuity and Insuranc_5
Variable Annuity and Insurance Guarantees (UL Secondary Guarantees) (Details) - UL secondary guarantees [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Insurance Guarantees by Benefit Type | ||
Net amount at risk | $ 6,587 | $ 6,550 |
Weighted average attained age | 67 years | 67 years |
Variable Annuity and Insuranc_6
Variable Annuity and Insurance Guarantees (Liability Rollforward) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
GMDB & GGU [Member] | ||||
Changes in additional liabilities for variable annuity and insurance guarantees | ||||
Balance at the beginning of the period | $ 16 | $ 19 | $ 17 | |
Incurred claims | 15 | 2 | 8 | |
Paid claims | (7) | (5) | (6) | |
Balance at the end of the period | 24 | 16 | 19 | |
GMIB [Member] | ||||
Changes in additional liabilities for variable annuity and insurance guarantees | ||||
Balance at the beginning of the period | 7 | 8 | 6 | |
Incurred claims | 0 | (1) | 2 | |
Paid claims | (1) | 0 | 0 | |
Balance at the end of the period | 6 | 7 | 8 | |
GMWB [Member] | ||||
Changes in additional liabilities for variable annuity and insurance guarantees | ||||
Balance at the beginning of the period | 1,462 | 875 | 463 | |
Incurred claims | [1] | 1,587 | 587 | 412 |
Paid claims | 0 | 0 | 0 | |
Balance at the end of the period | 3,049 | 1,462 | 875 | |
GMAB [Member] | ||||
Changes in additional liabilities for variable annuity and insurance guarantees | ||||
Balance at the beginning of the period | (39) | (19) | (80) | |
Incurred claims | [1] | 40 | (20) | 61 |
Paid claims | 0 | 0 | 0 | |
Balance at the end of the period | 1 | (39) | (19) | |
UL [Member] | ||||
Changes in additional liabilities for variable annuity and insurance guarantees | ||||
Balance at the beginning of the period | 758 | 659 | 489 | |
Incurred claims | 209 | 141 | 201 | |
Paid claims | (51) | (42) | (31) | |
Balance at the end of the period | $ 916 | $ 758 | $ 659 | |
[1] | The incurred claims for GMWB and GMAB include the change in the fair value of the liabilities (contra liabilities) less paid claims. |
Variable Annuity and Insuranc_7
Variable Annuity and Insurance Guarantees (Separate Account Balance by Type) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Mutual funds | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | $ 78,931 | $ 74,584 |
Equity [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | 45,947 | 44,739 |
Bond [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | 26,073 | 23,374 |
Other [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | $ 6,911 | $ 6,471 |
Short-Term Debt (Details)
Short-Term Debt (Details) - Federal Home Loan Bank [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Borrowings | ||
Remaining maturity of outstanding amount | 3 months | 2 months |
Weighted average annualized interest rate | 0.40% | 1.80% |
Amount of the liability including accrued interest | $ 200 | $ 201 |
Commercial mortgage backed securities [Member] | ||
Borrowings | ||
Fair value of securities pledged | $ 1,200 | $ 840 |
Line of Credit (Details 2)
Line of Credit (Details 2) - Ameriprise Financial [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Line of credit agreement, RVS as borrower[Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing as percentage of the borrower's statutory admitted assets excluding separate accounts as of prior year end | 3.00% | |
Line of credit with Ameriprise Financial, Inc. | $ 0 | $ 50 |
Prepayment penalty | $ 0 | |
Line of credit agreement, RVSNY as borrower[Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing as percentage of the borrower's statutory admitted assets excluding separate accounts as of prior year end | 3.00% | |
Line of credit with Ameriprise Financial, Inc. | $ 0 | |
Maximum borrowing capacity as amount | 25 | |
Prepayment penalty | 0 | |
Line of credit agreement, RTA as borrower [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit with Ameriprise Financial, Inc. | 0 | |
Maximum borrowing capacity as amount | $ 100 |
Long-Term Debt (Details 3)
Long-Term Debt (Details 3) - Surplus Loan due 2050 $ in Millions | 3 Months Ended |
Dec. 31, 2020USD ($) | |
Borrowings | |
Proceeds from Issuance of Debt | $ 500 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.50% |
Long-term Debt | $ 500 |
Fair Values of Assets and Lia_3
Fair Values of Assets and Liabilities (Assets & Liabilities Reported at FV) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | ||||
Liabilities | |||||
Individual contracts in a liability position | [1] | $ 7,621 | $ 5,168 | ||
Individual contracts in an asset position | [2] | 5,758 | 4,283 | ||
Cumulative decrease in embedded derivatives due to nonperformance | (727) | (502) | |||
GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities | |||||
Individual contracts in a liability position | 2,400 | 981 | |||
Individual contracts in an asset position | 67 | 218 | |||
Recurring basis [Member] | |||||
Assets | |||||
Available-for-sale securities: | 22,855 | 20,902 | |||
Cash equivalents | 3,132 | 1,256 | |||
Other assets | 5,758 | 4,283 | |||
Separate account assets at NAV | [3] | 87,556 | 82,425 | ||
Total assets at fair value | 119,301 | 108,866 | |||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 3,373 | [4] | 1,690 | [5] | |
Other liabilities | 4,248 | 3,478 | |||
Total liabilities at fair value | 7,621 | 5,168 | |||
Recurring basis [Member] | Interest rate derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1,755 | 1,451 | |||
Liabilities | |||||
Other liabilities | 734 | 418 | |||
Recurring basis [Member] | Equity derivative contracts [Member] | |||||
Assets | |||||
Other assets | 3,984 | 2,812 | |||
Liabilities | |||||
Other liabilities | 3,511 | 3,054 | |||
Recurring basis [Member] | Foreign exchange derivative contracts [Member] | |||||
Assets | |||||
Other assets | 18 | 16 | |||
Liabilities | |||||
Other liabilities | 2 | 6 | |||
Recurring basis [Member] | Credit derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1 | 4 | |||
Liabilities | |||||
Other liabilities | 1 | ||||
Recurring basis [Member] | Fixed Deferred Indexed Annuity Embedded Derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 52 | 46 | |||
Recurring basis [Member] | IUL embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 935 | 881 | |||
Recurring basis [Member] | GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 2,316 | [6] | 763 | [7] | |
Recurring basis [Member] | Structured annuity embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 70 | ||||
Recurring basis [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-sale securities: | 12,873 | 11,522 | |||
Recurring basis [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: | 3,002 | 3,108 | |||
Recurring basis [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: | 4,166 | 3,618 | |||
Recurring basis [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: | 1,212 | 1,080 | |||
Recurring basis [Member] | State and municipal obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: | 1,344 | 1,306 | |||
Recurring basis [Member] | Foreign government bonds and obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: | 257 | 267 | |||
Recurring basis [Member] | U.S. government and agency obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: | 1 | 1 | |||
Recurring basis [Member] | Level 1 [Member] | |||||
Assets | |||||
Available-for-sale securities: | 1 | 1 | |||
Cash equivalents | 2,419 | ||||
Other assets | 408 | 163 | |||
Total assets at fair value | 2,828 | 164 | |||
Liabilities | |||||
Other liabilities | 184 | 37 | |||
Total liabilities at fair value | 184 | 37 | |||
Recurring basis [Member] | Level 1 [Member] | Interest rate derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1 | ||||
Recurring basis [Member] | Level 1 [Member] | Equity derivative contracts [Member] | |||||
Assets | |||||
Other assets | 406 | 162 | |||
Liabilities | |||||
Other liabilities | 182 | 36 | |||
Recurring basis [Member] | Level 1 [Member] | Foreign exchange derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1 | 1 | |||
Liabilities | |||||
Other liabilities | 2 | 1 | |||
Recurring basis [Member] | Level 1 [Member] | U.S. government and agency obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: | 1 | 1 | |||
Recurring basis [Member] | Level 2 [Member] | |||||
Assets | |||||
Available-for-sale securities: | 21,684 | 19,760 | |||
Cash equivalents | 713 | 1,256 | |||
Other assets | 5,350 | 4,120 | |||
Total assets at fair value | 27,747 | 25,136 | |||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 3 | 3 | |||
Other liabilities | 4,064 | 3,441 | |||
Total liabilities at fair value | 4,067 | 3,444 | |||
Recurring basis [Member] | Level 2 [Member] | Interest rate derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1,754 | 1,451 | |||
Liabilities | |||||
Other liabilities | 734 | 418 | |||
Recurring basis [Member] | Level 2 [Member] | Equity derivative contracts [Member] | |||||
Assets | |||||
Other assets | 3,578 | 2,650 | |||
Liabilities | |||||
Other liabilities | 3,329 | 3,018 | |||
Recurring basis [Member] | Level 2 [Member] | Foreign exchange derivative contracts [Member] | |||||
Assets | |||||
Other assets | 17 | 15 | |||
Liabilities | |||||
Other liabilities | 5 | ||||
Recurring basis [Member] | Level 2 [Member] | Credit derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1 | 4 | |||
Liabilities | |||||
Other liabilities | 1 | ||||
Recurring basis [Member] | Level 2 [Member] | Fixed Deferred Indexed Annuity Embedded Derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 3 | 3 | |||
Recurring basis [Member] | Level 2 [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-sale securities: | 12,107 | 10,787 | |||
Recurring basis [Member] | Level 2 [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: | 2,993 | 3,091 | |||
Recurring basis [Member] | Level 2 [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: | 4,166 | 3,618 | |||
Recurring basis [Member] | Level 2 [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: | 817 | 691 | |||
Recurring basis [Member] | Level 2 [Member] | State and municipal obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: | 1,344 | 1,306 | |||
Recurring basis [Member] | Level 2 [Member] | Foreign government bonds and obligations [Member] | |||||
Assets | |||||
Available-for-sale securities: | 257 | 267 | |||
Recurring basis [Member] | Level 3 [Member] | |||||
Assets | |||||
Available-for-sale securities: | 1,170 | 1,141 | |||
Total assets at fair value | 1,170 | 1,141 | |||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 3,370 | 1,687 | |||
Total liabilities at fair value | 3,370 | 1,687 | |||
Recurring basis [Member] | Level 3 [Member] | Fixed Deferred Indexed Annuity Embedded Derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 49 | 43 | |||
Recurring basis [Member] | Level 3 [Member] | IUL embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 935 | 881 | |||
Recurring basis [Member] | Level 3 [Member] | GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 2,316 | 763 | |||
Recurring basis [Member] | Level 3 [Member] | Structured annuity embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 70 | ||||
Recurring basis [Member] | Level 3 [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-sale securities: | 766 | 735 | |||
Recurring basis [Member] | Level 3 [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: | 9 | 17 | |||
Recurring basis [Member] | Level 3 [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities: | $ 395 | $ 389 | |||
[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 fixed deferred 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 Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $3.7 billion and $2.3 billion as of December 31, 2020 and 2019, respectively. See Note 16 for additional information related to master netting arrangements and cash collateral. | ||||
[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 $727 million cumulative decrease to the embedded derivatives as of December 31, 2020. | ||||
[5] | The Company’s adjustment for nonperformance risk resulted in a $502 million cumulative decrease to the embedded derivatives as of December 31, 2019. | ||||
[6] | The fair value of the GMWB and GMAB embedded derivatives included $2.4 billion of individual contracts in a liability position and $67 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2020. | ||||
[7] | The fair value of the GMWB and GMAB embedded derivatives included $981 million of individual contracts in a liability position and $218 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2019. |
Fair Values of Assets and Lia_4
Fair Values of Assets and Liabilities (Level 3 Rollforwards-Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
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 | $ 735 | $ 871 | $ 1,072 | |
Total gains (losses) included in net income | (1) | (1) | ||
Total gains (losses) included in other comprehensive income (loss) | 15 | 30 | (26) | |
Purchases | 62 | 55 | 15 | |
Settlements | (46) | (220) | (189) | |
Balance at the end of the period | 766 | 735 | 871 | |
Changes in unrealized gains (losses) relating to assets and liabilities held at the end of the period included in: | ||||
Changes in unrealized gains (losses) related to assets held at the end of the period | (1) | (1) | (1) | |
Changes in unrealized gains (losses) in other comprehensive income relating to assets held at the end of the period | 15 | |||
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 | 17 | 64 | 87 | |
Total gains (losses) included in other comprehensive income (loss) | 1 | 1 | ||
Purchases | 39 | 27 | ||
Settlements | (3) | (6) | ||
Transfers out of Level 3 | (48) | (71) | (18) | |
Balance at the end of the period | 9 | 17 | 64 | |
Changes in unrealized gains (losses) relating to assets and liabilities held at the end of the period included in: | ||||
Changes in unrealized gains (losses) in other comprehensive income relating to assets held at the end of the period | 1 | |||
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 | 0 | ||
Purchases | 12 | |||
Transfers out of Level 3 | (12) | |||
Balance at the end of the period | 0 | |||
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 | 389 | 374 | 0 | |
Total gains (losses) included in other comprehensive income (loss) | (2) | 5 | 3 | |
Purchases | 381 | |||
Settlements | (6) | |||
Transfers into Level 3 | 14 | 10 | ||
Transfers out of Level 3 | (10) | |||
Balance at the end of the period | 395 | 389 | 374 | |
Changes in unrealized gains (losses) relating to assets and liabilities held at the end of the period included in: | ||||
Changes in unrealized gains (losses) in other comprehensive income relating to assets held at the end of the period | (2) | |||
Total Available-for-sale 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 | 1,141 | 1,309 | 1,159 | |
Total gains (losses) included in net income | [1] | (1) | (1) | |
Total gains (losses) included in other comprehensive income (loss) | 14 | 35 | (22) | |
Purchases | 101 | 82 | 408 | |
Settlements | (52) | (223) | (195) | |
Transfers into Level 3 | 14 | 10 | ||
Transfers out of Level 3 | (48) | (71) | (40) | |
Balance at the end of the period | 1,170 | 1,141 | 1,309 | |
Changes in unrealized gains (losses) relating to assets and liabilities held at the end of the period included in: | ||||
Changes in unrealized gains (losses) related to assets held at the end of the period | [1] | (1) | (1) | (1) |
Changes in unrealized gains (losses) in other comprehensive income relating to assets held at the end of the period | $ 14 | |||
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] | (3) | ||
Purchases | 3 | |||
Balance at the end of the period | $ 0 | |||
[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 Lia_5
Fair Values of Assets and Liabilities (Level 3 Rollforwards-Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Changes in unrealized gains (losses) relating to assets and liabilities held at the end of the period included in: | ||||
Net increase (decrease) to pretax income from adjustment for nonperformance risk on fair value of embedded derivatives | $ 196 | $ (190) | $ 281 | |
Fixed Deferred Indexed Annuity Embedded Derivatives [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at the beginning of the period | 43 | 14 | 0 | |
Total (gains) losses included in net income | [1] | 4 | 8 | (3) |
Issues | 3 | 21 | 17 | |
Settlements | (1) | |||
Balance at the end of the period | 49 | 43 | 14 | |
IUL embedded derivatives [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at the beginning of the period | 881 | 628 | 601 | |
Total (gains) losses included in net income | [1] | 76 | 209 | (9) |
Issues | 61 | 113 | 90 | |
Settlements | (83) | (69) | (54) | |
Balance at the end of the period | 935 | 881 | 628 | |
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] | 76 | 209 | (9) |
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 | 763 | 328 | (49) | |
Total (gains) losses included in net income | [2] | 1,152 | 80 | 49 |
Issues | 362 | 361 | 350 | |
Settlements | 39 | (6) | (22) | |
Balance at the end of the period | 2,316 | 763 | 328 | |
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] | (1,206) | 82 | 47 |
Structured Annuity Embedded Derivatives [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at the beginning of the period | 0 | |||
Total (gains) losses included in net income | [2] | 91 | ||
Issues | (21) | |||
Balance at the end of the period | 70 | 0 | ||
Total [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at the beginning of the period | 1,687 | 970 | 552 | |
Total (gains) losses included in net income | 1,323 | 297 | 37 | |
Issues | 405 | 495 | 457 | |
Settlements | (45) | (75) | (76) | |
Balance at the end of the period | 3,370 | 1,687 | 970 | |
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 | $ 1,282 | $ 291 | $ 38 | |
[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 Lia_6
Fair Values of Assets and Liabilities (Unobservable Inputs) (Details) - Discounted cash flow [Member] - Level 3 [Member] $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | ||
Corporate debt securities (private placements) [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fixed maturities, fair value | $ 766 | $ 735 | ||
Corporate debt securities (private placements) [Member] | Minimum [Member] | Yield/spread to U.S. Treasuries [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fixed maturities, measurement inputs | 0.010 | 0.008 | ||
Corporate debt securities (private placements) [Member] | Maximum [Member] | Yield/spread to U.S. Treasuries [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fixed maturities, measurement inputs | 0.033 | 0.028 | ||
Corporate debt securities (private placements) [Member] | Weighted average [Member] | Yield/spread to U.S. Treasuries [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fixed maturities, measurement inputs | 0.015 | [1] | 0.013 | |
Asset backed securities [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fixed maturities, fair value | $ 395 | $ 389 | ||
Asset backed securities [Member] | Annual default rate | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fixed maturities, measurement inputs | 0.053 | 0.035 | ||
Asset backed securities [Member] | Loss severity [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fixed maturities, measurement inputs | 0.250 | 0.250 | ||
Asset backed securities [Member] | Minimum [Member] | Yield/spread to swap rates [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fixed maturities, measurement inputs | 2.50 | 1.20 | ||
Asset backed securities [Member] | Maximum [Member] | Yield/spread to swap rates [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fixed maturities, measurement inputs | 4 | 1.70 | ||
Asset backed securities [Member] | Weighted average [Member] | Annual default rate | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fixed maturities, measurement inputs | 0.053 | |||
Asset backed securities [Member] | Weighted average [Member] | Loss severity [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fixed maturities, measurement inputs | 0.250 | |||
Asset backed securities [Member] | Weighted average [Member] | Yield/spread to swap rates [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fixed maturities, measurement inputs | 2.59 | [2] | 1.23 | |
IUL embedded derivatives [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, fair value | $ 935 | $ 881 | ||
IUL embedded derivatives [Member] | Nonperformance risk [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | [3] | 0.65 | 0.65 | |
IUL embedded derivatives [Member] | Weighted average [Member] | Nonperformance risk [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | [3] | 0.65 | ||
Fixed Deferred Indexed Annuity Embedded Derivatives [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, fair value | $ 49 | $ 43 | ||
Fixed Deferred Indexed Annuity Embedded Derivatives [Member] | Nonperformance risk [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | [3] | 0.65 | 0.65 | |
Fixed Deferred Indexed Annuity Embedded Derivatives [Member] | Minimum [Member] | Surrender rate [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | 0 | 0 | ||
Fixed Deferred Indexed Annuity Embedded Derivatives [Member] | Maximum [Member] | Surrender rate [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | 0.500 | 0.500 | ||
Fixed Deferred Indexed Annuity Embedded Derivatives [Member] | Weighted average [Member] | Nonperformance risk [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | [3] | 0.65 | ||
Fixed Deferred Indexed Annuity Embedded Derivatives [Member] | Weighted average [Member] | Surrender rate [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | [4] | 0.012 | ||
GMWB and GMAB embedded derivatives [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, fair value | $ 2,316 | $ 763 | ||
GMWB and GMAB embedded derivatives [Member] | Nonperformance risk [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | [3] | 0.65 | 0.65 | |
GMWB and GMAB embedded derivatives [Member] | Minimum [Member] | Surrender rate [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | 0.001 | 0.001 | ||
GMWB and GMAB embedded derivatives [Member] | Minimum [Member] | Utilization of guaranteed withdrawals [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | [5] | 0 | 0 | |
GMWB and GMAB embedded derivatives [Member] | Minimum [Member] | Market volatility [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | [6] | 0.043 | 0.037 | |
GMWB and GMAB embedded derivatives [Member] | Maximum [Member] | Surrender rate [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | 0.735 | 0.735 | ||
GMWB and GMAB embedded derivatives [Member] | Maximum [Member] | Utilization of guaranteed withdrawals [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | [5] | 0.480 | 0.360 | |
GMWB and GMAB embedded derivatives [Member] | Maximum [Member] | Market volatility [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | [6] | 0.171 | 0.159 | |
GMWB and GMAB embedded derivatives [Member] | Weighted average [Member] | Nonperformance risk [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | [3] | 0.65 | ||
GMWB and GMAB embedded derivatives [Member] | Weighted average [Member] | Surrender rate [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | [4] | 0.038 | ||
GMWB and GMAB embedded derivatives [Member] | Weighted average [Member] | Utilization of guaranteed withdrawals [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | [5],[7] | 0.106 | ||
GMWB and GMAB embedded derivatives [Member] | Weighted average [Member] | Market volatility [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | [6],[8] | 0.110 | ||
Structured annuity embedded derivatives [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, fair value | $ (70) | |||
Structured annuity embedded derivatives [Member] | Nonperformance risk [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | [3] | 0.65 | ||
Structured annuity embedded derivatives [Member] | Minimum [Member] | Surrender rate [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | 0.008 | |||
Structured annuity embedded derivatives [Member] | Maximum [Member] | Surrender rate [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | 0.400 | |||
Structured annuity embedded derivatives [Member] | Weighted average [Member] | Nonperformance risk [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | [3] | 0.65 | ||
Structured annuity embedded derivatives [Member] | Weighted average [Member] | Surrender rate [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Embedded derivatives, measurement inputs | [4] | 0.009 | ||
[1] | The weighted average for the spread to U.S. Treasuries for corporate debt securities (private placements) is weighted based on the security’s market value as a percentage of the aggregate market value of the securities. | |||
[2] | The weighted average for the spread to swap rates for asset backed securities is calculated as the sum of each tranche’s balance multiplied by its spread to swap divided by the aggregate balances of the tranches. | |||
[3] | The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. | |||
[4] | The weighted average surrender rate is weighted based on the benefit base of each contract and represents the average assumption in the current year including the effect of a dynamic surrender formula. | |||
[5] | The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. | |||
[6] | Market volatility is implied volatility of fund of funds and managed volatility funds. | |||
[7] | The weighted average utilization rate represents the average assumption for the current year, weighting each policy evenly. The calculation excludes policies that have already started taking withdrawals. | |||
[8] | The weighted average market volatility represents the average volatility across all contracts, weighted by the size of the guaranteed benefit. |
Fair Values of Assets and Lia_7
Fair Values of Assets and Liabilities Fair Value of Assets & Liabilities (Non-Recurring) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets and liabilities measured at fair value | ||
Carrying values | $ 134,424 | $ 121,943 |
Nonrecurring basis [Member] | Level 3 [Member] | VIEs, not primary beneficiary [Member] | RTA [Member] | ||
Assets and liabilities measured at fair value | ||
Carrying values | $ 101 | $ 158 |
Fair Values of Assets and Lia_8
Fair Values of Assets and Liabilities ( Financial Instruments Not at FV) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Financial Liabilities | |||
Separate account liabilities - investment contracts | $ 87,556 | $ 82,425 | |
Carrying value [Member] | |||
Financial Assets | |||
Mortgage loans, net | 2,574 | 2,655 | |
Policy loans | 846 | 867 | |
Other investments | 457 | 410 | |
Other receivables | 1,430 | 1,514 | |
Financial Liabilities | |||
Policyholder account balances, future policy benefits and claims | 9,990 | 9,110 | |
Short-term borrowings | 200 | 201 | |
Line of credit with Ameriprise Financial, Inc. | 50 | ||
Long-term Debt | 500 | ||
Other liabilities | 12 | 22 | |
Separate account liabilities - investment contracts | 351 | 340 | |
Estimate of Fair Value Measurement [Member] | |||
Financial Assets | |||
Mortgage loans, net | 2,724 | 2,707 | |
Policy loans | [1] | 846 | 867 |
Other investments | 457 | 410 | |
Other receivables | 1,732 | 1,648 | |
Financial Liabilities | |||
Policyholder account balances, future policy benefits and claims | 11,686 | 10,061 | |
Short-term borrowings | 200 | 201 | |
Line of credit with Ameriprise Financial, Inc. | 50 | ||
Long-term Debt | 509 | ||
Other liabilities | 11 | 21 | |
Separate account liabilities - investment contracts | 351 | 340 | |
Estimate of Fair Value Measurement [Member] | Level 2 [Member] | |||
Financial Assets | |||
Policy loans | [1] | 846 | 867 |
Other investments | 417 | 376 | |
Financial Liabilities | |||
Short-term borrowings | 200 | 201 | |
Long-term Debt | 509 | ||
Separate account liabilities - investment contracts | 351 | 340 | |
Estimate of Fair Value Measurement [Member] | Level 3 [Member] | |||
Financial Assets | |||
Mortgage loans, net | 2,724 | 2,707 | |
Other investments | 40 | 34 | |
Other receivables | 1,732 | 1,648 | |
Financial Liabilities | |||
Policyholder account balances, future policy benefits and claims | 11,686 | 10,061 | |
Line of credit with Ameriprise Financial, Inc. | 50 | ||
Other liabilities | $ 11 | $ 21 | |
[1] | During the third quarter of 2020, management changed the fair value methodology for policy loans from estimating future expected cash flows and discounting the cash flows at a rate based on the U.S. Treasury curve to using the carrying value as an approximation of fair value as the policy loans are fully collateralized by the cash surrender value of the underlying policies. As a result, policy loans were reclassified from Level 3 to Level 2 in the valuation hierarchy. For comparability and consistency purposes, prior period amounts were revised to reflect the current methodology and classification. |
Related Party Transactions (Tex
Related Party Transactions (Text) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loans receivable [Member] | RiverSource Life Insurance Company [Member] | |||
Related Party Transactions | |||
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 | ||
Ameriprise Financial [Member] | |||
Related Party Transactions | |||
Revenue from intercompany lease | 5,000,000 | ||
Future revenue from intercompany lease - 2021 | 5,000,000 | ||
Future revenue from intercompany lease - 2026 and after | 19,000,000 | ||
Due from Ameriprise Financial for federal income taxes | (297,000,000) | $ 85,000,000 | |
Ameriprise Financial and affiliated companies [Member] | |||
Related Party Transactions | |||
Charges for use of joint facilities, technology support, marketing services and other services | 358,000,000 | 370,000,000 | $ 365,000,000 |
Ameriprise Financial and affiliated companies [Member] | Asset backed securities [Member] | |||
Related Party Transactions | |||
Fair value of asset backed securities issued by AAF, an affiliate | 372,000,000 | $ 380,000,000 | |
Ameriprise Financial and affiliated companies [Member] | Net Investment Income [Member] | |||
Related Party Transactions | |||
Interest income from asset backed securities issued by AAF, an affiliate | $ 14,000,000 |
Related Party Transactions (Div
Related Party Transactions (Dividend Table) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Related Party Transactions | ||||
Cash dividends or distributions paid to Ameriprise Financial | $ 800 | $ 1,350 | $ 750 | |
Ameriprise Financial [Member] | ||||
Related Party Transactions | ||||
Cash dividends or distributions paid to Ameriprise Financial | 800 | 1,350 | 750 | |
RiverSource Life of NY [Member] | ||||
Related Party Transactions | ||||
Cash dividends or distributions received by RiverSource Life Insurance Company | 0 | 43 | 48 | |
RTA [Member] | ||||
Related Party Transactions | ||||
Cash dividends or distributions received by RiverSource Life Insurance Company | 95 | 100 | 45 | |
RiverSource REO 1, LLC [Member] | ||||
Related Party Transactions | ||||
Cash dividends or distributions received by RiverSource Life Insurance Company | [1] | $ 0 | $ 0 | $ 2 |
[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 | Dec. 31, 2020 | Dec. 31, 2019 |
Insurance [Abstract] | ||
Statutory unassigned surplus | $ 1,300 | $ 326 |
Statutory capital and surplus | 4,800 | $ 2,900 |
Government debt securities on deposit with states as required by law | $ 4 |
Regulatory Requirements (Table)
Regulatory Requirements (Table) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Insurance [Abstract] | |||
Statutory net gain from operations | $ 1,393 | $ 1,505 | $ 1,686 |
Statutory net income (loss) | $ 1,582 | $ 786 | $ 1,628 |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities (Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivatives: | |||
Gross amounts of recognized assets | [1] | $ 5,758 | $ 4,283 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (3,916) | (2,912) |
Cash collateral | (1,408) | (1,214) | |
Securities collateral | (315) | (73) | |
Net amount | 119 | 84 | |
OTC derivatives [Member] | |||
Derivatives: | |||
Gross amounts of recognized assets | 5,391 | 4,181 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (3,801) | (2,886) |
Cash collateral | (1,243) | (1,214) | |
Securities collateral | (315) | (73) | |
Net amount | 32 | 8 | |
OTC cleared derivatives [Member] | |||
Derivatives: | |||
Gross amounts of recognized assets | 58 | 21 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (25) | (21) |
Net amount | 33 | 0 | |
Exchange-traded derivatives [Member] | |||
Derivatives: | |||
Gross amounts of recognized assets | 309 | 81 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (90) | (5) |
Cash collateral | (165) | ||
Net amount | $ 54 | $ 76 | |
[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 Liabili_4
Offsetting Assets and Liabilities (Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivatives | |||
Gross amounts of recognized liabilities | [1] | $ 7,621 | $ 5,168 |
Gross amounts of recognized liabilities | 4,248 | 3,478 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Cash collateral | (1) | ||
Securities collateral | (327) | (540) | |
Derivative Liability Securities Sold Under Agreements to Repurchase Securities Loaned Not Offset Financial Instruments | (3,916) | (2,912) | |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Amount Offset Against Collateral | 4 | 26 | |
OTC derivatives [Member] | |||
Derivatives | |||
Gross amounts of recognized liabilities | 4,129 | 3,426 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (3,801) | (2,886) |
Cash collateral | (1) | 0 | |
Securities collateral | (327) | (540) | |
Net amount | 0 | 0 | |
OTC cleared derivatives [Member] | |||
Derivatives | |||
Gross amounts of recognized liabilities | 25 | 41 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (25) | (21) |
Net amount | 0 | 20 | |
Exchange-traded derivatives [Member] | |||
Derivatives | |||
Gross amounts of recognized liabilities | 94 | 11 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (90) | (5) |
Net amount | 4 | 6 | |
Total derivatives [Member] | |||
Derivatives | |||
Gross amounts of recognized liabilities | 4,248 | 3,478 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [2] | (3,916) | (2,912) |
Cash collateral | (1) | 0 | |
Securities collateral | (327) | (540) | |
Net amount | $ 4 | $ 26 | |
[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 fixed deferred 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 Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $3.7 billion and $2.3 billion as of December 31, 2020 and 2019, respectively. See Note 16 for additional information related to master netting arrangements and cash collateral. | ||
[2] | Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | ||
Derivatives and Hedging Activities | ||||
Notional amount | $ 139,311 | $ 123,183 | ||
Gross fair value of assets | [1] | 5,758 | 4,283 | |
Gross fair value of liabilities | [2] | 7,621 | 5,168 | |
Derivative Liability After Application Of Master Netting Arrangements And Cash Collateral Including Embedded Derivative Liabilities | 3,700 | 2,300 | ||
Fair value of investment securities received as collateral | 325 | 84 | ||
Fair value of investment securities received as collateral that can be repledged | 325 | 84 | ||
Fair value of investment securities received as collateral that were repledged | 0 | |||
GMWB and GMAB embedded derivatives [Member] | ||||
Derivatives and Hedging Activities | ||||
Gross fair value of assets | 67 | 218 | ||
Gross fair value of liabilities | 2,400 | 981 | ||
Derivatives not designated as hedging instruments [Member] | ||||
Derivatives and Hedging Activities | ||||
Notional amount | 123,183 | |||
Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | ||||
Derivatives and Hedging Activities | ||||
Notional amount | 77,925 | 57,950 | ||
Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | ||||
Derivatives and Hedging Activities | ||||
Notional amount | 55,993 | 60,596 | ||
Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | ||||
Derivatives and Hedging Activities | ||||
Notional amount | 2,269 | 1,386 | ||
Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | ||||
Derivatives and Hedging Activities | ||||
Notional amount | 3,124 | 3,251 | ||
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | ||||
Derivatives and Hedging Activities | ||||
Notional amount | 139,311 | |||
Gross fair value of assets | [1] | 5,758 | 4,283 | |
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | ||||
Derivatives and Hedging Activities | ||||
Gross fair value of assets | 1,755 | 1,451 | [1] | |
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | ||||
Derivatives and Hedging Activities | ||||
Gross fair value of assets | 3,984 | 2,812 | [1] | |
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | ||||
Derivatives and Hedging Activities | ||||
Gross fair value of assets | [1] | 1 | 4 | |
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | ||||
Derivatives and Hedging Activities | ||||
Gross fair value of assets | 18 | 16 | [1] | |
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | ||||
Derivatives and Hedging Activities | ||||
Gross fair value of liabilities | [2] | 4,248 | 3,478 | |
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | ||||
Derivatives and Hedging Activities | ||||
Gross fair value of liabilities | 734 | 418 | [2] | |
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | ||||
Derivatives and Hedging Activities | ||||
Gross fair value of liabilities | 3,511 | 3,054 | [2] | |
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | ||||
Derivatives and Hedging Activities | ||||
Gross fair value of liabilities | [2] | 1 | 0 | |
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | ||||
Derivatives and Hedging Activities | ||||
Gross fair value of liabilities | 2 | 6 | [2] | |
PAB, FPB and claims [Member] | GMWB and GMAB embedded derivatives [Member] | ||||
Derivatives and Hedging Activities | ||||
Gross fair value of liabilities | [2],[3] | 2,316 | 763 | |
PAB, FPB and claims [Member] | IUL embedded derivatives [Member] | ||||
Derivatives and Hedging Activities | ||||
Gross fair value of liabilities | [2] | 935 | 881 | |
PAB, FPB and claims [Member] | Fixed Deferred Indexed Annuity Embedded Derivatives [Member] | ||||
Derivatives and Hedging Activities | ||||
Gross fair value of liabilities | [2] | 52 | 46 | |
PAB, FPB and claims [Member] | Structured Annuity Embedded Derivatives [Member] | ||||
Derivatives and Hedging Activities | ||||
Gross fair value of liabilities | 70 | 0 | ||
PAB, FPB and claims [Member] | Total embedded derivatives [Member] | ||||
Derivatives and Hedging Activities | ||||
Gross fair value of liabilities | [2] | $ 3,373 | $ 1,690 | |
[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 fixed deferred 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 Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $3.7 billion and $2.3 billion as of December 31, 2020 and 2019, respectively. See Note 16 for additional information related to master netting arrangements and cash collateral. | |||
[3] | The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2020 included $2.4 billion of individual contracts in a liability position and $67 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2019 included $981 million of individual contracts in a liability position and $218 million of individual contracts in an asset position. |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Income Statement) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest credited to fixed accounts [Member] | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Amount of gain (loss) on derivatives recognized in income | $ 58 | $ (31) | $ 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 | 7 | (140) | 63 |
Interest credited to fixed accounts [Member] | Fixed Deferred Indexed Annuity Embedded Derivatives [Member] | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Amount of gain (loss) on derivatives recognized in income | (4) | (8) | 3 |
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 | (869) | (939) | (379) |
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 | (1,553) | (435) | (377) |
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 | 55 | 117 | (49) |
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 | 1,633 | 1,100 | (312) |
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 | (744) | (1,501) | 306 |
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 | (106) | (73) | 7 |
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 | (8) | $ (30) | 1 |
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 | $ (4) | ||
Derivatives not designated as hedging instruments [Member] | Benefits, claims, losses and settlement expenses [Member] | Indexed Annuity | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Amount of gain (loss) on derivatives recognized in income | $ (91) |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities (Option Rec/Pay) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Summary of option premiums payable and receivable | |
Premiums payable for derivative option contracts | $ 932 |
Premiums receivable for derivative option contracts | 387 |
2021 [Member] | |
Summary of option premiums payable and receivable | |
Premiums payable for derivative option contracts | 153 |
Premiums receivable for derivative option contracts | 106 |
2022 [Member] | |
Summary of option premiums payable and receivable | |
Premiums payable for derivative option contracts | 207 |
Premiums receivable for derivative option contracts | 205 |
2023 [Member] | |
Summary of option premiums payable and receivable | |
Premiums payable for derivative option contracts | 51 |
Premiums receivable for derivative option contracts | 43 |
2024 [Member] | |
Summary of option premiums payable and receivable | |
Premiums payable for derivative option contracts | 141 |
Premiums receivable for derivative option contracts | 26 |
2025 [Member] | |
Summary of option premiums payable and receivable | |
Premiums payable for derivative option contracts | 126 |
Premiums receivable for derivative option contracts | 7 |
2026-2028 [Member] | |
Summary of option premiums payable and receivable | |
Premiums payable for derivative option contracts | 254 |
Premiums receivable for derivative option contracts | $ 0 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities (Cash Flow Hedges and Credit Risk) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
General Cash Flow Hedge Information [Abstract] | |||
Derivatives designated as cash flow hedges | $ 0 | $ 0 | |
Hedge relationships discontinued due to forecasted transactions no longer being expected to occur according to the original hedge strategy | 0 | 0 | $ 0 |
Derivatives liabilities, credit risk related contingent features | |||
Aggregate fair value of all derivative instruments containing credit risk features | 324 | 189 | |
Aggregate fair value of assets posted as collateral | 324 | $ 189 | |
Additional fair value of assets needed to settle derivative liabilities | $ 0 |
Shareholder's Equity Comprehens
Shareholder's Equity Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent [Abstract] | ||||
Net unrealized gains (losses) on securities arising during the period, pretax | [1] | $ 811 | $ 1,360 | $ (952) |
Reclassification of net (gains) losses on securities included in net income, pretax | [2] | 5 | 2 | (9) |
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, pretax | (379) | (688) | 435 | |
Net unrealized gains (losses) on securities, pretax | 437 | 674 | (526) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax, Parent [Abstract] | ||||
Reclassification of net (gains) losses on derivatives included in net income, pretax | [3] | 1 | ||
Net unrealized gains (losses) on derivatives, pretax | 1 | |||
Total other comprehensive income (loss), pretax | 437 | 674 | (525) | |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax, Portion Attributable to Parent [Abstract] | ||||
Net unrealized gains (losses) on securities arising during the period, tax | [1] | (170) | (289) | 203 |
Reclassification of net (gains) losses on securities included in net income, tax | [2] | (1) | 2 | |
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, tax | 80 | 144 | (91) | |
Net unrealized gains (losses) on securities, tax | (91) | (145) | 114 | |
Total other comprehensive income (loss), tax | (91) | (145) | 114 | |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent [Abstract] | ||||
Net unrealized gains (losses) on securities arising during the period, net of tax | [1] | 641 | 1,071 | (749) |
Reclassification of net (gains) losses on securities included in net income, net of tax | [2] | 4 | 2 | (7) |
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, net of tax | (299) | (544) | 344 | |
Net unrealized gains (losses) on securities, net of tax | 346 | 529 | (412) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax, Parent [Abstract] | ||||
Reclassification of net (gains) losses on derivatives included in net income, net of tax | [3] | 1 | ||
Net unrealized gains (losses) on derivatives, net of tax | 0 | 0 | 1 | |
Total other comprehensive income (loss), net of tax | $ 346 | $ 529 | $ (411) | |
[1] | Includes impairments on Available-for-Sale securities related to factors other than credit that were recognized in OCI during the period. | |||
[2] | Reclassification amounts are recorded in net realized investment gains (losses). | |||
[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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | $ 3,336 | $ 3,572 | $ 3,828 | |||
Total OCI | 346 | 529 | (411) | |||
Ending balance | 3,313 | 3,336 | 3,572 | |||
Accumulated other comprehensive income (loss) [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | 574 | 45 | 456 | |||
OCI before reclassifications | 342 | 527 | (405) | |||
Amounts reclassified from AOCI | 4 | 2 | (6) | |||
Total OCI | 346 | 529 | (411) | |||
Ending balance | 920 | 574 | 45 | |||
Net unrealized gains (losses) on securities [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | 575 | [1] | 46 | [1] | 458 | |
OCI before reclassifications | 342 | 527 | (405) | |||
Amounts reclassified from AOCI | 4 | 2 | (7) | |||
Total OCI | 346 | 529 | (412) | |||
Ending balance | [1] | 921 | 575 | 46 | ||
Noncredit related impairments on securities and net unrealized gains (losses) on previously impaired securities | 0 | 0 | 0 | |||
Net unrealized gains (losses) on derivatives [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | 0 | 0 | (1) | |||
OCI before reclassifications | 0 | 0 | 0 | |||
Amounts reclassified from AOCI | 0 | 0 | 1 | |||
Total OCI | 0 | 0 | 1 | |||
Ending balance | 0 | 0 | 0 | |||
Other [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (1) | (1) | (1) | |||
OCI before reclassifications | 0 | 0 | 0 | |||
Amounts reclassified from AOCI | 0 | 0 | 0 | |||
Total OCI | 0 | 0 | 0 | |||
Ending balance | $ (1) | $ (1) | $ (1) | |||
[1] | Includes nil of noncredit related impairments on securities and net unrealized gains (losses) on previously impaired securities as of each December 31, 2020, 2019 and 2018. |
Income Taxes (Income Tax Compon
Income Taxes (Income Tax Components) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current income tax [Abstract] | |||
Federal | $ 233 | $ 210 | $ 35 |
State | 0 | 8 | 3 |
Total current income tax | 233 | 218 | 38 |
Deferred income tax [Abstract] | |||
Federal | (277) | (271) | (1) |
State | (1) | (7) | (2) |
Total deferred income tax | (278) | (278) | (3) |
Total income tax provision | $ (45) | $ (60) | $ 35 |
Income Taxes (Reconcilation of
Income Taxes (Reconcilation of Income Tax Provision Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Tax at U.S. statutory rate | 21.00% | 21.00% | 21.00% |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation Elements [Abstract] | |||
Low income housing tax credits (as a percent) | (20.10%) | (15.30%) | (8.50%) |
Dividend received deduction (as a percent) | (9.70%) | (7.60%) | (4.20%) |
Foreign tax credit, net of addback (as a percent) | (1.90%) | (9.50%) | (2.80%) |
Audit adjustments (as a percent) | (1.40%) | ||
Uncertain tax positions (as a percent) | 1.80% | ||
Impact of Tax Act (as a percent) | (1.10%) | ||
Taxes applicable to prior years (as a percent) | (1.10%) | ||
Other, net (as a percent) | (0.80%) | (0.40%) | 0.40% |
Income tax provision (as a percent) | (11.50%) | (11.40%) | 3.70% |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred income tax assets [Abstract] | ||
Liabilities for policyholder account balances, future policy benefits and claims | $ 1,617 | $ 940 |
Investment related | 0 | 210 |
Other | 13 | 12 |
Gross deferred income tax assets | 1,630 | 1,162 |
Valuation allowance | 11 | 11 |
Total deferred income tax assets | 1,619 | 1,151 |
Deferred income tax liabilities [Abstract] | ||
Deferred acquisition costs | 424 | 446 |
Net unrealized gains on Available-for-Sale securities | 274 | 182 |
Deferred Tax Liabilities, Investments | 216 | 0 |
Deferred sales inducement costs | 44 | 50 |
Other | 12 | 13 |
Gross deferred income tax liabilities | 970 | 691 |
Net deferred income tax assets | $ 649 | $ 460 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets, Valuation Allowance Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Valuation Allowance [Line Items] | ||
Valuation allowance established | $ 11 | $ 11 |
State and Local Jurisdiction [Member] | ||
Valuation Allowance [Line Items] | ||
Net operating loss carryforwards | 9 | |
Operating loss carryforwards more likely than not will not be realized | 9 | |
State deferred tax assets more likely than not will not be realized | $ 2 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | |||
Balance at the beginning of the period | $ 39 | $ 19 | $ 14 |
Additions based on tax positions related to the current year | 1 | 1 | 5 |
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions | (1) | 0 | 0 |
Additions for tax positions of prior years | 0 | 34 | 1 |
Reductions for tax positions of prior years | 0 | (4) | (1) |
Audit settlements | 0 | (11) | 0 |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | (1) | 0 | 0 |
Balance at the end of the period | 38 | 39 | 19 |
Unrecognized tax benefit items [Abstract] | |||
Unrecognized tax benefits, net of federal tax benefits that would affect the effective tax rate if recognized | 20 | 17 | 8 |
Decrease in total unrecognized tax benefits reasonably possible in next 12 months | 11 | ||
Net increase (decrease) in interest and penalties | 0 | (1) | $ 0 |
Payable related to accrued interest and penalties | $ 2 | $ 2 |
Commitments, Guarantess and Con
Commitments, Guarantess and Contingencies (Commitments Table) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Commercial mortgage loans | $ 18 | $ 59 |
Affordable housing and other real estate partnerships | 12 | 22 |
Total funding commitments | $ 30 | $ 81 |
Commitments, Guarantees and C_3
Commitments, Guarantees and Contingencies (Guarantees and Contingencies Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Guaranty fund assessments [Member] | ||
Commitments and Contingencies | ||
Liability related to guaranty fund assessments | $ 12 | $ 12 |
Related premium tax asset | $ 10 | $ 10 |
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% |