Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 02, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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 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 | |
Entity Central Index Key | 0000727892 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments: | ||
Reinsurance recoverables (allowance for credit losses: 2022, $10; 2021, $11) | $ 4,505 | $ 4,529 |
Deferred acquisition costs | 2,905 | 2,757 |
Separate account assets | 84,671 | 92,238 |
Total assets | 130,104 | 139,496 |
Liabilities: | ||
Policyholder account balances, future policy benefits and claims | 35,219 | 35,744 |
Short-term borrowings | 200 | 200 |
Separate account liabilities | 84,671 | 92,238 |
Total liabilities | 128,723 | 137,611 |
Shareholder’s equity: | ||
Common stock, $30 par value; 100,000 shares authorized, issued and outstanding | 3 | 3 |
Additional paid-in capital | 2,466 | 2,466 |
Accumulated deficit | (897) | (912) |
Accumulated other comprehensive income, net of tax | (191) | 328 |
Total shareholder’s equity | 1,381 | 1,885 |
Total liabilities and shareholder’s equity | 130,104 | 139,496 |
RiverSource Life | ||
Investments: | ||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $15,383; 2021, $14,718) (allowance for credit losses: 2022, $1; 2021, $1) | 15,732 | 16,239 |
Mortgage loans, at amortized cost (allowance for credit losses: 2022, $11 and 2021, $12) | 1,812 | 1,788 |
Policy loans | 833 | 834 |
Other investments (allowance for credit losses: 2022, nil; 2021, nil) | 213 | 230 |
Total investments | 18,590 | 19,091 |
Cash and cash equivalents | 2,561 | 3,200 |
Receivables | 8,009 | 8,148 |
Accrued investment income | 135 | 124 |
Other assets | 6,408 | 7,084 |
Liabilities: | ||
Short-term borrowings | 200 | 200 |
Long-term debt | 500 | 500 |
Other liabilities | 5,831 | 6,628 |
Consolidated investment entities | ||
Investments: | ||
Total investments | 2,177 | 2,184 |
Cash and cash equivalents | 119 | 121 |
Receivables | 22 | 17 |
Other assets | 2 | 3 |
Liabilities: | ||
Long-term debt | 2,156 | 2,164 |
Other liabilities | $ 146 | $ 137 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Shareholder's equity: | ||
Common stock, par value (in dollars per share) | $ 30 | $ 30 |
Common stock, authorized (in shares) | 100,000 | 100,000 |
Common stock, issued (in shares) | 100,000 | 100,000 |
Common stock, outstanding (in shares) | 100,000 | 100,000 |
RiverSource Life | ||
Assets | ||
Available-for-sale: Fixed maturities, amortized cost | $ 15,383 | $ 14,718 |
Available-for-sale: Fixed maturities, allowance for credit losses | 1 | 1 |
Reinsurance recoverables, allowance for credit loss | 10 | 11 |
RiverSource Life | Fixed maturities | ||
Assets | ||
Available-for-sale: Fixed maturities, amortized cost | 15,383 | 14,718 |
RiverSource Life | Mortgages | ||
Assets | ||
Allowance for credit losses | 11 | 12 |
RiverSource Life | Other investments | ||
Assets | ||
Allowance for credit losses | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues | ||
Premiums | $ 73 | $ 78 |
Net investment income | 159 | 247 |
Policy and contract charges | 564 | 547 |
Other revenues | 173 | 128 |
Net realized investment gains (losses) | 18 | 48 |
Total revenues | 987 | 1,048 |
Benefits and expenses | ||
Benefits, claims, losses and settlement expenses | 210 | 652 |
Interest credited to fixed accounts | 141 | 159 |
Amortization of deferred acquisition costs | 92 | 2 |
Interest and debt expense | 19 | 21 |
Other insurance and operating expenses | 171 | 194 |
Total benefits and expenses | 633 | 1,028 |
Pretax income (loss) | 354 | 20 |
Income tax provision (benefit) | 39 | 2 |
Net income (loss) | $ 315 | $ 18 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 315 | $ 18 |
Other comprehensive income (loss), net of tax: | ||
Net unrealized gains (losses) on securities | (519) | (338) |
Total other comprehensive income (loss), net of tax | (519) | (338) |
Total comprehensive income | $ (204) | $ (320) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Common Shares | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2020 | $ 3,313 | $ 3 | $ 2,466 | $ (76) | $ 920 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 18 | 18 | |||
Other comprehensive income (loss), net of tax | (338) | (338) | |||
Cash dividends to Ameriprise Financial, Inc. | (250) | (250) | |||
Ending balance at Mar. 31, 2021 | 2,743 | 3 | 2,466 | (308) | 582 |
Beginning balance at Dec. 31, 2021 | 1,885 | 3 | 2,466 | (912) | 328 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 315 | 315 | |||
Other comprehensive income (loss), net of tax | (519) | (519) | |||
Cash dividends to Ameriprise Financial, Inc. | (300) | (300) | |||
Ending balance at Mar. 31, 2022 | $ 1,381 | $ 3 | $ 2,466 | $ (897) | $ (191) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows from Operating Activities | ||
Net income | $ 315 | $ 18 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation, amortization and accretion, net | (47) | (2) |
Deferred income tax (benefit) expense | 56 | (124) |
Contractholder and policyholder charges, non-cash | (98) | (97) |
Loss from equity method investments | 15 | 16 |
Net realized investment (gains) losses | (17) | (48) |
Impairments and provision for loan losses | (1) | (4) |
Net losses (gains) of consolidated investment entities | 3 | (19) |
Changes in operating assets and liabilities: | ||
Deferred acquisition costs | 41 | (59) |
Policyholder account balances, future policy benefits and claims, net | (70) | (953) |
Derivatives, net of collateral | (20) | 141 |
Reinsurance recoverables | 12 | 34 |
Receivables | 73 | 6 |
Accrued investment income | (11) | (13) |
Current income tax expense (benefit) | (15) | 125 |
Payable for investment securities purchase | 0 | 75 |
Other operating assets and liabilities of consolidated investment entities | 8 | 0 |
Other, net | (67) | 28 |
Net cash provided by (used in) operating activities | 177 | (876) |
Available-for-Sale securities: | ||
Proceeds from sales | 3 | 92 |
Maturities, sinking fund payments and calls | 394 | 819 |
Purchases | (1,016) | (806) |
Proceeds from sales, maturities and repayments of mortgage loans | 27 | 53 |
Funding of mortgage loans | (50) | (21) |
Proceeds from sales and collections of other investments | 5 | 36 |
Purchase of other investments | (1) | (11) |
Purchase of investments by consolidated investment entities | (190) | (737) |
Proceeds from sales, maturities and repayments of investments by consolidated investment entities | 183 | 240 |
Purchase of equipment and software | (4) | (3) |
Change in policy loans, net | 1 | 8 |
Cash paid for deposit receivable | (12) | (2) |
Cash received for deposit receivable | 134 | 21 |
Advance on line of credit to Ameriprise Financial, Inc. | (450) | 0 |
Repayment from Ameriprise Financial, Inc. on line of credit | 450 | 0 |
Cash received from written options with deferred premiums | 12 | 21 |
Cash paid for written options with deferred premiums | 0 | (211) |
Other, net | 0 | (2) |
Net cash provided by (used in) investing activities | (514) | (503) |
Policyholder account balances: | ||
Deposits and other additions | 285 | 384 |
Net transfers from (to) separate accounts | (57) | (60) |
Surrenders and other benefits | (328) | (368) |
Cash received for purchased options with deferred premiums | 168 | 306 |
Cash paid for purchased options with deferred premiums | (71) | (42) |
Borrowings by consolidated investment entities | 0 | 797 |
Repayments of debt by consolidated investment entities | (1) | (63) |
Cash dividends to Ameriprise Financial, Inc. | (300) | (250) |
Net cash provided by (used in) financing activities | (304) | 704 |
Net increase (decrease) in cash and cash equivalents | (641) | (675) |
Cash and cash equivalents at beginning of period | 3,321 | 3,285 |
Cash and cash equivalents at end of period | 2,680 | 2,610 |
Supplemental Disclosures: | ||
Income taxes paid (received), net | 0 | 1 |
Non-cash investing activity: | ||
Exchange of an investment that resulted in a realized gain and an increase to amortized cost | 0 | 17 |
Consolidated investment entities | ||
Supplemental Disclosures: | ||
Interest paid | $ 13 | $ 0 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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”) and Columbia Cent CLO Advisors, LLC (“Columbia Cent”). RTA is a stock company domiciled in Delaware and is a limited partner in affordable housing partnership investments. Columbia Cent provides asset management services to collateralized loan obligations (“CLOs”). The accompanying Consolidated Financial Statements include the accounts of RiverSource Life Insurance Company and companies in which it directly or indirectly has a controlling financial interest 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 interim financial information in this report has not been audited. In the opinion of management, all adjustments necessary for fair statement of the consolidated financial position and results of operations for the interim periods have been made. All adjustments made were of a normal recurring nature. The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Results of operations reported for interim periods are not necessarily indicative of results for the entire year. These Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission on February 25, 2022 (“2021 10-K”). 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 requiring recognition or disclosure were identified. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Future Adoption of New Accounting Standards Financial Instruments – Credit Losses – Troubled Debt Restructurings and Vintage Disclosures In March 2022, the Financial Accounting Standards Board (“FASB”) proposed amendments to Accounting Standard Update No. 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (“Topic 326”). The update removes the recognition and measurement guidance for Troubled Debt Restructurings (“TDRs”) by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, and modifies the disclosure requirements for certain loan refinancing and restructuring by creditors when a borrower is experiencing financial difficulty. Rather than applying the recognition and measurement for TDRs, an entity must apply the loan refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan. The update also requires entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. The amendments are to be applied prospectively, but entities may apply a modified retrospective transition for changes to the recognition and measurement of TDRs. For entities that have adopted Topic 326, the amendments are effective for interim and annual periods beginning after December 15, 2022. Early adoption is permitted for entities that have adopted Topic 326, including adoption in an interim period. The adoption of the standard is not expected to have a material impact on the Company’s consolidated financial condition and 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 including 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 deferred acquisition costs (“DAC”) and deferred sales inducement costs (“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. The standard is effective for interim and annual periods beginning after December 15, 2022. 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 in the process of implementing the standard, including the implementation of controlled measurement and reporting processes. The Company expects the impact of adopting the standard to be material to its consolidated financial condition and results of operations. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 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. Three Months Ended March 31, 2022 2021 (in millions) Policy and contract charges Affiliated $ 44 $ 46 Unaffiliated 4 4 Total 48 50 Other revenues Administrative fees Affiliated 12 12 Unaffiliated 5 4 17 16 Other fees Affiliated 93 95 Unaffiliated 1 1 94 96 Total 111 112 Total revenue from contracts with customers 159 162 Revenue from other sources (1) 828 886 Total revenues $ 987 $ 1,048 (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, Ameriprise Financial Services, LLC (“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 $62 million as of March 31, 2022 and December 31, 2021, respectively. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2022 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities The Company provides asset management services to collateralized loan obligations (“CLOs”) which are considered to be VIEs that 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 $28 million and $27 million as of March 31, 2022 and December 31, 2021, respectively. 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 and highly rated senior 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 $124 million and $138 million as of March 31, 2022 and December 31, 2021, respectively. The Company had a $8 million liability recorded as of both March 31, 2022 and December 31, 2021, 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, and 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 5 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 12 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: March 31, 2022 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Common stocks $ — $ 3 $ — $ 3 Syndicated loans — 2,077 97 2,174 Total investments — 2,080 97 2,177 Receivables — 22 — 22 Other assets — 2 — 2 Total assets at fair value $ — $ 2,104 $ 97 $ 2,201 Liabilities Debt (1) $ — $ 2,156 $ — $ 2,156 Other liabilities — 146 — 146 Total liabilities at fair value $ — $ 2,302 $ — $ 2,302 December 31, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Common stocks $ — $ 3 $ — $ 3 Syndicated loans — 2,117 64 2,181 Total investments — 2,120 64 2,184 Receivables — 17 — 17 Other assets — — 3 3 Total assets at fair value $ — $ 2,137 $ 67 $ 2,204 Liabilities Debt (1) $ — $ 2,164 $ — $ 2,164 Other liabilities — 137 — 137 Total liabilities at fair value $ — $ 2,301 $ — $ 2,301 (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 $2.1 billion and $2.2 billion as of March 31, 2022 and December 31, 2021, respectively. The following table provides 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, 2022 $ 64 $ 3 Total gains (losses) included in: Net income (1) (1) — Purchases 15 — Sales (1) — Transfers into Level 3 62 — Transfers out of Level 3 (42) (3) Balance, March 31, 2022 $ 97 $ — Changes in unrealized gains (losses) included in income relating to assets held at March 31, 2022 $ (1) (1) $ — Syndicated Loans Other Assets (in millions) Balance, January 1, 2021 $ 92 $ 2 Total gains (losses) included in: Net income 2 (1) — Purchases 59 — Sales (10) — Settlements (20) — Transfers into Level 3 57 — Transfers out of Level 3 (25) (2) Balance, March 31, 2021 $ 155 $ — Changes in unrealized gains (losses) included in income relating to assets held at March 31, 2021 $ 1 (1) $ — (1) Included in net investment income in the Consolidated Statements of Operations. 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 March 31, 2022 and December 31, 2021 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 12 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. Other liabilities also include accrued interest on the CLO debt. 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: March 31, 2022 December 31, 2021 (in millions) Syndicated loans Unpaid principal balance $ 2,242 $ 2,233 Excess unpaid principal over fair value (68) (52) Fair value $ 2,174 $ 2,181 Fair value of loans more than 90 days past due $ — $ — Fair value of loans in nonaccrual status 11 13 Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both 5 10 Debt Unpaid principal balance $ 2,295 $ 2,296 Excess unpaid principal over fair value (139) (132) Carrying value (1) $ 2,156 $ 2,164 (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 $2.1 billion and $2.2 billion as of March 31, 2022 and December 31, 2021, respectively. 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 the changes in fair value of investments the Company owns in the consolidated CLOs where it has elected the fair value option and collateralized financing entity accounting were immaterial for both the three months ended March 31, 2022 and 2021. Debt of the consolidated investment entities and the stated interest rates were as follows: Carrying Value Weighted Average Interest Rate March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 (in millions) Debt of consolidated CLOs due 2028-2034 $ 2,156 $ 2,164 1.9 % 1.7 % |
Investments
Investments | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Available-for-Sale securities distributed by type were as follows: Description of Securities March 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value (in millions) Fixed maturities: Corporate debt securities $ 8,682 $ 665 $ (289) $ — $ 9,058 Residential mortgage backed securities 2,475 9 (97) — 2,387 Commercial mortgage backed securities 2,807 2 (98) — 2,711 State and municipal obligations 831 163 (8) (1) 985 Asset backed securities 513 12 (9) — 516 Foreign government bonds and obligations 74 2 (2) — 74 U.S. government and agency obligations 1 — — — 1 Total $ 15,383 $ 853 $ (503) $ (1) $ 15,732 Description of Securities December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value (in millions) Fixed maturities: Corporate debt securities $ 8,447 $ 1,238 $ (47) $ — $ 9,638 Residential mortgage backed securities 2,226 36 (12) — 2,250 Commercial mortgage backed securities 2,615 56 (15) — 2,656 State and municipal obligations 832 244 (1) (1) 1,074 Asset backed securities 517 22 (2) — 537 Foreign government bonds and obligations 80 4 (1) — 83 U.S. government and agency obligations 1 — — — 1 Total $ 14,718 $ 1,600 $ (78) $ (1) $ 16,239 As of March 31, 2022 and December 31, 2021, accrued interest of $129 million and $118 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. As of March 31, 2022 and December 31, 2021, investment securities with a fair value of $2.5 billion and $2.4 billion, respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $428 million and $314 million, respectively, may be sold, pledged or rehypothecated by the counterparty. As of both March 31, 2022 and December 31, 2021, fixed maturity securities comprised approximately 85% 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 March 31, 2022 and December 31, 2021, $365 million and $359 million, respectively, of securities were internally rated by Columbia Management Investment Advisers, LLC, 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 March 31, 2022 December 31, 2021 Amortized Cost Fair Value Percent of Total Fair Value Amortized Cost Fair Value Percent of Total Fair Value (in millions, except percentages) AAA $ 5,500 $ 5,318 34 % $ 5,031 $ 5,107 31 % AA 726 840 5 757 932 6 A 1,688 1,893 12 1,662 2,013 12 BBB 6,694 6,890 44 6,293 7,063 44 Below investment grade 775 791 5 975 1,124 7 Total fixed maturities $ 15,383 $ 15,732 100 % $ 14,718 $ 16,239 100 % As of both March 31, 2022 and December 31, 2021, approximately 40% of securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. As of March 31, 2022, the Company had 15 issuers with holdings between 10% and 19% of the Company’s total shareholder’s equity totaling $2.6 billion. As of December 31, 2021, the Company had five issuers with holdings between 10% and 16% of the Company’s total shareholder’s equity totaling $1.2 billion. There were no other holdings of any other issuer greater than 10% of the Company’s total shareholder’s equity as of March 31, 2022 and December 31, 2021. The following tables summarize the fair value and gross unrealized losses on Available-for-Sale securities, aggregated by major investment type and the length of time that individual securities have been in a continuous unrealized loss position for which no allowance for credit losses has been recorded: Description of Securities March 31, 2022 Less than 12 Months 12 Months or More Total Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses (in millions, except number of securities) Corporate debt securities 216 $ 2,988 $ (226) 40 $ 441 $ (63) 256 $ 3,429 $ (289) Residential mortgage backed securities 113 1,565 (80) 9 167 (17) 122 1,732 (97) Commercial mortgage backed securities 180 2,216 (84) 14 154 (14) 194 2,370 (98) State and municipal obligations 47 117 (7) 1 4 (1) 48 121 (8) Asset backed securities 15 388 (9) — — — 15 388 (9) Foreign government bonds and obligations 6 22 (1) 9 7 (1) 15 29 (2) Total 577 $ 7,296 $ (407) 73 $ 773 $ (96) 650 $ 8,069 $ (503) Description of Securities December 31, 2021 Less than 12 Months 12 Months or More Total Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses (in millions, except number of securities) Corporate debt securities 102 $ 2,007 $ (42) 14 $ 81 $ (5) 116 $ 2,088 $ (47) Residential mortgage backed securities 55 1,162 (12) 2 1 — 57 1,163 (12) Commercial mortgage backed securities 60 809 (15) 3 13 — 63 822 (15) State and municipal obligations 25 63 (1) — — — 25 63 (1) Asset backed securities 5 91 (2) — — — 5 91 (2) Foreign government bonds and obligations 5 6 — 6 4 (1) 11 10 (1) Total 252 $ 4,138 $ (72) 25 $ 99 $ (6) 277 $ 4,237 $ (78) As part of the Company’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities for which an allowance for credit losses has not been recognized during the three months ended March 31, 2022 is primarily attributable to the impact of higher interest rates and wider credit spreads. The Company did not recognize these 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 March 31, 2022 and December 31, 2021, approximately 90% and 92%, respectively, of the total of Available-for-Sale securities with gross unrealized losses were considered investment grade. The following tables present a rollforward of the allowance for credit losses on Available-for-Sale securities: Corporate Debt Securities State and Municipal Obligations Total (in millions) Balance at January 1, 2022 $ — $ 1 $ 1 Charge-offs — — — Balance at March 31, 2022 $ — $ 1 $ 1 Balance at January 1, 2021 $ 10 $ — $ 10 Charge-offs (10) — (10) Balance at March 31, 2021 $ — $ — $ — 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: Three Months Ended March 31, 2022 2021 (in millions) Gross realized investment gains $ 20 $ 49 Gross realized investment losses (3) — Total $ 17 $ 49 There were no credit losses for the three months ended March 31, 2022 and 2021. See Note 14 for a rollforward of net unrealized investment gains (losses) included in AOCI. Available-for-Sale securities by contractual maturity as of March 31, 2022 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 549 $ 552 Due after one year through five years 1,829 1,849 Due after five years through 10 years 3,563 3,382 Due after 10 years 3,647 4,335 9,588 10,118 Residential mortgage backed securities 2,475 2,387 Commercial mortgage backed securities 2,807 2,711 Asset backed securities 513 516 Total $ 15,383 $ 15,732 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: Three Months Ended March 31, 2022 2021 (in millions) Fixed maturities $ 136 $ 189 Mortgage loans 19 28 Other investments 9 35 164 252 Less: investment expenses 5 5 Total $ 159 $ 247 |
Financing Receivables
Financing Receivables | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Financing Receivables | Financing Receivables Financing receivables are comprised of commercial loans, policy loans, and deposit receivables. Allowance for Credit Losses The following tables present a rollforward of the allowance for credit losses: Commercial Loans (in millions) Balance, January 1, 2022 $ 12 Provisions (1) Balance, March 31, 2022 $ 11 Commercial Loans (in millions) Balance, January 1, 2021 $ 35 Provisions (2) Balance, March 31, 2021 $ 33 As of March 31, 2022 and December 31, 2021, accrued interest on commercial loans was $10 million and $11 million, respectively, and is recorded in Accrued investment income and excluded from the amortized cost basis of commercial loans. Purchases and Sales During the three months ended March 31, 2022 and 2021, the Company purchased nil and $9 million, respectively, of syndicated loans and sold nil and $3 million, respectively, of syndicated loans. The Company has not acquired any loans with deteriorated credit quality as of the acquisition date. Credit Quality Information There were no nonperforming loans as of March 31, 2022 and December 31, 2021. All loans were considered to be performing. Commercial Loans Commercial Mortgage Loans The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Loan-to-value ratio is the primary credit quality indicator included in this review. Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates when credit risk changes. Commercial mortgage loans which management has assigned its highest risk rating were less than 1% of total commercial mortgage loans as of both March 31, 2022 and December 31, 2021. 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 loans past due were nil as of both March 31, 2022 and December 31, 2021. The tables below present the amortized cost basis of commercial mortgage loans by year of origination and loan-to-value ratio: March 31, 2022 Loan-to-Value Ratio 2022 2021 2020 2019 2018 Prior Total (in millions) > 100% $ — $ — $ — $ 11 $ 10 $ 15 $ 36 80% - 100% — 9 — 26 2 39 76 60% - 80% 21 97 62 48 14 159 401 40% - 60% 17 76 27 75 64 465 724 < 40% 4 9 26 — 65 482 586 Total $ 42 $ 191 $ 115 $ 160 $ 155 $ 1,160 $ 1,823 December 31, 2021 Loan-to-Value Ratio 2021 2020 2019 2018 2017 Prior Total (in millions) > 100% $ — $ — $ 20 $ 10 $ — $ 29 $ 59 80% - 100% 9 2 9 2 — 29 51 60% - 80% 141 76 59 15 58 133 482 40% - 60% 37 30 75 74 49 393 658 < 40% 6 8 46 — 47 443 550 Total $ 193 $ 116 $ 209 $ 101 $ 154 $ 1,027 $ 1,800 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 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 (in millions) East North Central $ 197 $ 183 11 % 10 % East South Central 54 54 3 3 Middle Atlantic 106 107 6 6 Mountain 110 111 6 6 New England 20 21 1 1 Pacific 599 589 33 33 South Atlantic 484 477 26 26 West North Central 134 136 7 8 West South Central 119 122 7 7 1,823 1,800 100 % 100 % Less: allowance for credit losses 11 12 Total $ 1,812 $ 1,788 Concentrations of credit risk of commercial mortgage loans by property type were as follows: Loans Percentage March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 (in millions) Apartments $ 480 $ 464 26 % 26 % Hotel 14 15 1 1 Industrial 296 293 16 16 Mixed use 56 57 3 3 Office 251 254 14 14 Retail 592 589 33 33 Other 134 128 7 7 1,823 1,800 100 % 100 % Less: allowance for credit losses 11 12 Total $ 1,812 $ 1,788 Syndicated Loans The recorded investment in syndicated loans as of both March 31, 2022 and December 31, 2021 were $43 million. The Company’s syndicated loan portfolio is diversified across industries and issuers. Total syndicated loans past due were nil as of both March 31, 2022 and December 31, 2021. The Company assigns an internal risk rating to each syndicated loan in its portfolio ranging from 1 through 5, with 5 reflecting the lowest quality. The tables below present the amortized cost basis of syndicated loans by origination year and internal risk rating: March 31, 2022 Internal Risk Rating 2022 2021 2020 2019 2018 Prior Total (in millions) Risk 5 $ — $ — $ — $ — $ — $ — $ — Risk 4 — — — — — — — Risk 3 — 3 — 3 — 2 8 Risk 2 — 9 — 1 1 10 21 Risk 1 — 3 — — 3 8 14 Total $ — $ 15 $ — $ 4 $ 4 $ 20 $ 43 December 31, 2021 Internal Risk Rating 2021 2020 2019 2018 2017 Prior Total (in millions) Risk 5 $ — $ — $ — $ — $ — $ — $ — Risk 4 — — — — — — — Risk 3 — — — — — 1 1 Risk 2 11 — 4 1 8 4 28 Risk 1 4 — — 3 3 4 14 Total $ 15 $ — $ 4 $ 4 $ 11 $ 9 $ 43 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 Receivables Deposit receivables were $7.8 billion and $7.9 billion as of March 31, 2022 and December 31, 2021, respectively. Deposit receivables are fully collateralized by the fair value of the assets held in trusts. Based on management’s evaluation of the nature of the underlying assets and the potential for changes in the collateral value, there was no allowance for credit losses for deposit receivables as of both March 31, 2022 and December 31, 2021. Troubled Debt Restructurings |
Deferred Acquisition Costs and
Deferred Acquisition Costs and Deferred Sales Inducement Costs | 3 Months Ended |
Mar. 31, 2022 | |
Deferred Charges, Insurers [Abstract] | |
Deferred Acquisition Costs and Deferred Sales Inducement Costs | Deferred Acquisition Costs and Deferred Sales Inducement Costs The balances of and changes in DAC were as follows: 2022 2021 (in millions) Balance at January 1 $ 2,757 $ 2,508 Capitalization of acquisition costs 51 62 Amortization (92) (2) Impact of change in net unrealized (gains) losses on securities 189 93 Balance at March 31 $ 2,905 $ 2,661 The balances of and changes in DSIC, which is included in Other assets, were as follows: 2022 2021 (in millions) Balance at January 1 $ 187 $ 187 Amortization (8) (3) Impact of change in net unrealized (gains) losses on securities 6 4 Balance at March 31 $ 185 $ 188 |
Policyholder Account Balances,
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Policyholder Account Balances, Future Policy Benefits and Claims & Separate Account Liabilities [Abstract] | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities Policyholder account balances, future policy benefits and claims consisted of the following: March 31, 2022 December 31, 2021 (in millions) Policyholder account balances Fixed annuities (1) $ 8,002 $ 8,117 Variable annuity fixed sub-accounts 4,951 4,990 Universal life (“UL”)/variable universal life (“VUL”) insurance 3,092 3,103 Indexed universal life (“IUL”) insurance 2,587 2,534 Structured variable annuities 4,885 4,440 Other life insurance 553 563 Total policyholder account balances 24,070 23,747 Future policy benefits Variable annuity guaranteed minimum withdrawal benefits (“GMWB”) 1,750 2,336 Variable annuity guaranteed minimum accumulation benefits (“GMAB”) (2) (17) (23) Other annuity liabilities 96 67 Fixed annuity life contingent liabilities 1,254 1,278 Life and disability income insurance 1,125 1,139 Long term care insurance 5,485 5,664 UL/VUL and other life insurance additional liabilities 1,203 1,291 Total future policy benefits 10,896 11,752 Policy claims and other policyholders’ funds 253 245 Total policyholder account balances, future policy benefits and claims $ 35,219 $ 35,744 (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 March 31, 2022 and December 31, 2021 reported as a contra liability. Separate account liabilities consisted of the following: March 31, 2022 December 31, 2021 (in millions) Variable annuity $ 75,921 $ 82,862 VUL insurance 8,719 9,343 Other insurance 31 33 Total $ 84,671 $ 92,238 |
Variable Annuity and Insurance
Variable Annuity and Insurance Guarantees | 3 Months Ended |
Mar. 31, 2022 | |
Insurance [Abstract] | |
Variable Annuity and Insurance Guarantees | Variable Annuity and Insurance Guarantees Most of the variable annuity contracts issued by the Company contain one or more guaranteed minimum death benefit (“GMDB”) provisions or death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as gain gross-up (“GGU”) benefits. The Company discontinued new sales of substantially all GMWB and GMAB at the end of 2021. The Company also previously offered contracts containing guaranteed minimum income benefit (“GMIB”) provisions. 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) March 31, 2022 December 31, 2021 Total Contract Value Contract Value in Separate Accounts Net Amount at Risk Weighted Average Attained Age Total Contract Value Contract Value in Separate Accounts Net Amount at Risk Weighted Average Attained Age (in millions, except age) GMDB: Return of premium $ 64,309 $ 62,458 $ 122 69 $ 70,020 $ 68,145 $ 6 69 Five/six-year reset 7,814 5,125 40 69 8,309 5,612 6 68 One-year ratchet 5,689 5,375 222 72 6,177 5,858 13 71 Five-year ratchet 1,318 1,266 13 68 1,438 1,386 1 68 Other 1,190 1,175 99 74 1,302 1,286 38 74 Total — GMDB $ 80,320 $ 75,399 $ 496 69 $ 87,246 $ 82,287 $ 64 69 GGU death benefit $ 1,173 $ 1,112 $ 164 72 $ 1,260 $ 1,198 $ 184 72 GMIB $ 166 $ 153 $ 5 72 $ 184 $ 170 $ 4 71 GMWB: GMWB $ 1,724 $ 1,719 $ 2 75 $ 1,900 $ 1,895 $ 1 75 GMWB for life 47,847 47,815 575 69 52,387 52,334 187 69 Total — GMWB $ 49,571 $ 49,534 $ 577 69 $ 54,287 $ 54,229 $ 188 69 GMAB $ 1,771 $ 1,771 $ 3 62 $ 2,005 $ 2,005 $ — 62 (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: March 31, 2022 December 31, 2021 Net Amount at Risk Weighted Average Attained Age Net Amount at Risk Weighted Average Attained Age (in millions, except age) UL secondary guarantees $ 6,563 68 $ 6,564 68 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 & GGU GMIB GMWB (1) GMAB (1) UL (in millions) Balance at January 1, 2022 $ 36 $ 5 $ 2,336 $ (23) $ 1,020 Incurred claims — — (586) 6 31 Paid claims (3) — — — (9) Balance at March 31, 2022 $ 33 $ 5 $ 1,750 $ (17) $ 1,042 Balance at January 1, 2021 $ 24 $ 6 $ 3,049 $ 1 $ 916 Incurred claims 3 — (1,570) (23) 32 Paid claims (1) — — — (8) Balance at March 31, 2021 $ 26 $ 6 $ 1,479 $ (22) $ 940 (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: March 31, 2022 December 31, 2021 (in millions) Mutual funds: Equity $ 46,511 $ 49,183 Bond 21,640 24,998 Other 7,438 8,316 Total mutual funds $ 75,589 $ 82,497 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | 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 $1.0 billion as of both March 31, 2022 and December 31, 2021. The amount of the Company’s liability including accrued interest was $200 million as of both March 31, 2022 and December 31, 2021. The remaining maturity of outstanding FHLB advances was less than three months as of both March 31, 2022 and December 31, 2021. The weighted average annualized interest rate on the FHLB advances held as of March 31, 2022 and December 31, 2021 was 0.6% and 0.3%, respectively. Long-Term Debt The Company has a $500 million unsecured 3.5% surplus note due December 31, 2050 to Ameriprise Financial. The outstanding balance was $500 million as of both March 31, 2022 and December 31, 2021 and is recorded in Long-term debt. |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value 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 (See Note 4 for the balances of assets and liabilities for consolidated investment entities): March 31, 2022 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Corporate debt securities $ — $ 8,561 $ 497 $ 9,058 Residential mortgage backed securities — 2,387 — 2,387 Commercial mortgage backed securities — 2,681 30 2,711 State and municipal obligations — 985 — 985 Asset backed securities — 253 263 516 Foreign government bonds and obligations — 74 — 74 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities 1 14,941 790 15,732 Cash equivalents 1,333 1,175 — 2,508 Receivables : Fixed deferred indexed annuity ceded embedded derivatives — — 55 55 Other assets: Interest rate derivative contracts 3 736 — 739 Equity derivative contracts 148 3,667 — 3,815 Foreign exchange derivative contracts 2 24 — 26 Credit derivative contracts — 45 — 45 Total other assets 153 4,472 — 4,625 Separate account assets at net asset value (“NAV”) 84,671 (1) Total assets at fair value $ 1,487 $ 20,588 $ 845 $ 107,591 Liabilities Policyholder account balances, future policy benefits and claims: Fixed deferred indexed annuity embedded derivatives $ — $ 5 $ 52 $ 57 IUL embedded derivatives — — 848 848 GMWB and GMAB embedded derivatives — — 828 828 (2) Structured variable annuity embedded derivatives — — 280 280 Total policyholder account balances, future policy benefits and claims — 5 2,008 2,013 (3) Other liabilities: Interest rate derivative contracts 7 308 — 315 Equity derivative contracts 255 3,503 — 3,758 Foreign exchange derivative contracts — 3 — 3 Total other liabilities 262 3,814 — 4,076 Total liabilities at fair value $ 262 $ 3,819 $ 2,008 $ 6,089 December 31, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Corporate debt securities $ — $ 9,142 $ 496 $ 9,638 Residential mortgage backed securities — 2,250 — 2,250 Commercial mortgage backed securities — 2,656 — 2,656 State and municipal obligations — 1,074 — 1,074 Asset backed securities — 246 291 537 Foreign government bonds and obligations — 83 — 83 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities 1 15,451 787 16,239 Cash equivalents 1,985 1,191 — 3,176 Receivables: Fixed deferred indexed annuity ceded embedded derivatives — — 59 59 Other assets: Interest rate derivative contracts 1 1,251 — 1,252 Equity derivative contracts 158 4,080 — 4,238 Foreign exchange derivative contracts 1 17 — 18 Credit derivative contracts — 9 — 9 Total other assets 160 5,357 — 5,517 Separate account assets at NAV 92,238 (1) Total assets at fair value $ 2,146 $ 21,999 $ 846 $ 117,229 Liabilities Policyholder account balances, future policy benefits and claims: Fixed deferred indexed annuity embedded derivatives $ — $ 5 $ 56 $ 61 IUL embedded derivatives — — 905 905 GMWB and GMAB embedded derivatives — — 1,486 1,486 (4) Structured variable annuity embedded derivatives — — 406 406 Total policyholder account balances, future policy benefits and claims — 5 2,853 2,858 (5) Other liabilities: Interest rate derivative contracts 1 467 — 468 Equity derivative contracts 101 3,610 — 3,711 Foreign exchange derivative contracts 1 — — 1 Total other liabilities 103 4,077 — 4,180 Total liabilities at fair value $ 103 $ 4,082 $ 2,853 $ 7,038 (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 $1.0 billion of individual contracts in a liability position and $204 million of individual contracts in an asset position (recorded as a contra liability) as of March 31, 2022. (3) The Company’s adjustment for nonperformance risk resulted in a $607 million cumulative decrease to the embedded derivatives as of March 31, 2022. (4) The fair value of the GMWB and GMAB embedded derivatives included $1.6 billion of individual contracts in a liability position and $133 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2021. (5) The Company’s adjustment for nonperformance risk resulted in a $598 million cumulative decrease to the embedded derivatives as of December 31, 2021. 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 Receivables Corporate Debt Securities Commercial Mortgage Backed Securities Asset Backed Securities Total Fixed Deferred Indexed Annuity Ceded Embedded Derivatives (in millions) Balance at January 1, 2022 $ 496 $ — $ 291 $ 787 $ 59 Total gains (losses) included in: Net income — — — — (3) Other comprehensive income (loss) (22) — (7) (29) — Purchases 23 30 — 53 — Settlements — — (21) (21) (1) Balance at March 31, 2022 $ 497 $ 30 $ 263 $ 790 $ 55 Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at March 31, 2022 $ (22) $ — $ (7) $ (29) $ — Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total (in millions) Balance at January 1, 2022 $ 56 $ 905 $ 1,486 $ 406 $ 2,853 Total (gains) losses included in: Net income (3) (1) (32) (1) (679) (2) (124) (2) (838) Issues — — 87 4 91 Settlements (1) (25) (66) (6) (98) Balance at March 31, 2022 $ 52 $ 848 $ 828 $ 280 $ 2,008 Changes in unrealized (gains) losses in net income relating to liabilities held at March 31, 2022 $ — $ (32) (1) $ (671) (2) $ — $ (703) Available-for-Sale Securities Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance at January 1, 2021 $ 766 $ 9 $ 395 $ 1,170 Total gains (losses) included in: Other comprehensive income (loss) (5) — 3 (2) Purchases 46 — — 46 Settlements — — (19) (19) Balance at March 31, 2021 $ 807 $ 9 $ 379 $ 1,195 Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at March 31, 2021 $ (5) $ — $ 3 $ (2) Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total (in millions) Balance at January 1, 2021 $ 49 $ 935 $ 2,316 $ 70 $ 3,370 Total (gains) losses included in: Net income 4 (1) 29 (1) (1,729) (2) 75 (2) (1,621) Issues — 5 90 (15) 80 Settlements (1) (20) 38 (6) 11 Balance at March 31, 2021 $ 52 $ 949 $ 715 $ 124 $ 1,840 Changes in unrealized (gains) losses in net income relating to liabilities held at March 31, 2021 $ — $ 29 (1) $ (1,705) (2) $ — $ (1,676) (1) Included in Interest credited to fixed accounts. (2) Included in Benefits, claims, losses and settlement expenses. The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $25 million and $(167) million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the three months ended March 31, 2022 and 2021, respectively. Securities transferred from Level 3 primarily represent securities with fair values that are obtained from a third-party pricing service with observable inputs or fair values that were included in an observable transaction with a market participant. Securities transferred to Level 3 represent securities with fair values that are now based on a single non-binding broker quote. 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: March 31, 2022 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 487 Discounted cash flow Yield/spread to U.S. Treasuries (1) 0.9% – 3.0% 1.3% Asset backed securities $ 263 Discounted cash flow Annual default rate 6.2% 6.2% Loss severity 25.0% 25.0% Yield/spread to swap rates (2) 225 bps – 325 bps 233 bps Fixed deferred indexed annuity ceded embedded derivatives $ 55 Discounted cash flow Surrender rate (4) 0.0% – 66.8% 1.4% IUL embedded derivatives $ 848 Discounted cash flow Nonperformance risk (3) 85 bps 85 bps Fixed deferred indexed annuity embedded derivatives $ 52 Discounted cash flow Surrender rate (4) 0.0% – 66.8% 1.4% Nonperformance risk (3) 85 bps 85 bps GMWB and GMAB embedded derivatives $ 828 Discounted cash flow Utilization of guaranteed withdrawals (5) (6) 0.0% – 48.0% 10.6% Surrender rate (4) 0.1% – 55.7% 3.6% Market volatility (7) (8) 4.3% – 16.5% 10.9% Nonperformance risk (3) 85 bps 85 bps Structured variable annuity embedded derivatives $ 280 Discounted cash flow Surrender rate (4) 0.8% – 40.0% 0.9% Nonperformance risk (3) 85 bps 85 bps December 31, 2021 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 496 Discounted cash flow Yield/spread to U.S. Treasuries (1) 0.8% – 2.4% 1.1% Asset backed securities $ 291 Discounted cash flow Annual default rate 5.8% 5.8% Loss severity 25.0% 25.0% Yield/spread to swap rates (2) 175 bps – 275 bps 182 bps Fixed deferred indexed annuity ceded embedded derivatives $ 59 Discounted cash flow Surrender rate (4) 0.0% – 66.8% 1.4% IUL embedded derivatives $ 905 Discounted cash flow Nonperformance risk (3) 65 bps 65 bps Fixed deferred indexed annuity embedded derivatives $ 56 Discounted cash flow Surrender rate (4) 0.0% – 66.8% 1.4% Nonperformance risk (3) 65 bps 65 bps GMWB and GMAB embedded derivatives $ 1,486 Discounted cash flow Utilization of guaranteed withdrawals (5) (6) 0.0% – 48.0% 10.6% Surrender rate (4) 0.1% – 55.7% 3.6% Market volatility (7) (8) 4.3% – 16.8% 10.8% Nonperformance risk (3) 65 bps 65 bps Structured variable annuity embedded derivatives $ 406 Discounted cash flow Surrender rate (4) 0.8% – 40.0% 0.9% Nonperformance risk (3) 65 bps 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 represents the 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 the surrender rate used in the fair value measurement of the fixed deferred indexed annuity ceded embedded derivatives 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 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. The fair value of securities included in an observable transaction with a market participant are also considered Level 2 when the market is not active. Level 3 securities primarily include certain corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and asset backed securities with fair value 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. 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. Receivables During the third quarter of 2021, the Company reinsured its fixed deferred indexed annuity products which have an indexed account that is accounted for as an embedded derivative. The Company uses discounted cash flow models to determine the fair value of these ceded embedded derivatives. The fair value of fixed deferred indexed annuity ceded embedded derivatives includes significant observable interest rates, volatilities and equity index levels and significant unobservable surrender rates. Given the significance of the unobservable surrender rates, these embedded derivatives are classified as Level 3. 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 March 31, 2022 and December 31, 2021. See Note 12 and Note 13 for further information on the credit risk of derivative instruments and related collateral. 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. 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 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 a 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 significant unobservable surrender rates and the estimate of the Company’s nonperformance risk. Given the significance of the unobservable surrender rates and the nonperformance risk assumption, 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 March 31, 2022 and December 31, 2021. See Note 12 and Note 13 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 $87 million and $93 million as of March 31, 2022 and December 31, 2021, 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: March 31, 2022 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 1,812 $ — $ — $ 1,781 $ 1,781 Policy loans 833 — 833 — 833 Other investments 60 — 40 20 60 Receivables 7,754 — — 7,646 7,646 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 12,841 $ — $ — $ 12,678 $ 12,678 Short-term borrowings 200 — 200 — 200 Long-term debt 500 — 427 — 427 Other liabilities 9 — — 8 8 Separate account liabilities — investment contracts 370 — 370 — 370 December 31, 2021 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 1,788 $ — $ — $ 1,872 $ 1,872 Policy loans 834 — 834 — 834 Other investments 61 — 40 21 61 Receivables 7,876 — — 8,630 8,630 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 12,342 $ — $ — $ 13,264 $ 13,264 Short-term borrowings 200 — 200 — 200 Long-term debt 500 — 498 — 498 Other liabilities 9 — — 9 9 Separate account liabilities — investment contracts 403 — 403 — 403 Other investments include syndicated loans and the Company’s membership in the FHLB. Receivables include the deposit receivables. See Note 6 for additional information on mortgage loans, policy loans, syndicated loans and deposit receivables. 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 8 for additional information on these liabilities. Short-term borrowings include FHLB borrowings. Long-term debt includes the surplus note with Ameriprise Financial. See Note 10 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. |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | Offsetting Assets and Liabilities Certain financial instruments and derivative instruments are eligible for offset in the Consolidated Balance Sheets. The Company’s derivative instruments 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: March 31, 2022 Gross Amounts of Recognized Assets Gross Amounts Offset in the 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 $ 4,372 $ — $ 4,372 $ (3,250) $ (1,071) $ — $ 51 OTC cleared 156 — 156 (82) — — 74 Exchange-traded 97 — 97 (88) — — 9 Total derivatives $ 4,625 $ — $ 4,625 $ (3,420) $ (1,071) $ — $ 134 December 31, 2021 Gross Amounts of Recognized Assets Gross Amounts Offset in the 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 $ 5,330 $ — $ 5,330 $ (3,571) $ (1,623) $ (114) $ 22 OTC cleared 88 — 88 (41) — — 47 Exchange-traded 99 — 99 (91) — — 8 Total derivatives $ 5,517 $ — $ 5,517 $ (3,703) $ (1,623) $ (114) $ 77 (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: March 31, 2022 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,817 $ — $ 3,817 $ (3,250) $ (169) $ (393) $ 5 OTC cleared 82 — 82 (82) — — — Exchange-traded 177 — 177 (88) (89) — — Total derivatives $ 4,076 $ — $ 4,076 $ (3,420) $ (258) $ (393) $ 5 December 31, 2021 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 4,048 $ — $ 4,048 $ (3,571) $ (181) $ (293) $ 3 OTC cleared 41 — 41 (41) — — — Exchange-traded 91 — 91 (91) — — — Total derivatives $ 4,180 $ — $ 4,180 $ (3,703) $ (181) $ (293) $ 3 (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. Freestanding derivative instruments are reflected in Other assets and Other liabilities. Cash collateral pledged by the Company is reflected in Other assets and cash collateral accepted by the Company is reflected in Other liabilities. See Note 13 for additional disclosures related to the Company’s derivative instruments. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities Derivative instruments enable the Company to manage its exposure to various market risks. The value of such instruments is derived from an underlying variable or multiple variables, including equity and interest rate indices or prices. The Company primarily enters into derivative agreements for risk management purposes related to the Company’s products and operations. 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 12 for additional information regarding the estimated fair value of the Company’s freestanding derivatives after considering the effect of master netting arrangements and collateral. Generally, 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: March 31, 2022 December 31, 2021 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 $ 82,220 $ 739 $ 315 $ 79,459 $ 1,252 $ 468 Equity contracts 62,203 3,815 3,758 59,763 4,238 3,711 Credit contracts 2,151 45 — 1,717 9 — Foreign exchange contracts 2,427 26 3 2,239 18 1 Total non-designated hedges 149,001 4,625 4,076 143,178 5,517 4,180 Embedded derivatives GMWB and GMAB (4) N/A — 828 N/A — 1,486 IUL N/A — 848 N/A — 905 Fixed deferred indexed annuities and deposit receivables N/A 55 57 N/A 59 61 Structured variable annuities N/A — 280 N/A — 406 Total embedded derivatives N/A 55 2,013 N/A 59 2,858 Total derivatives $ 149,001 $ 4,680 $ 6,089 $ 143,178 $ 5,576 $ 7,038 N/A Not applicable. (1) The fair value of freestanding derivative assets is included in Other assets and the fair value of ceded derivative assets related to deposit receivables is included in Receivables. (2) The fair value of freestanding derivative liabilities is included in Other liabilities. The fair value of GMWB and GMAB, IUL, fixed deferred indexed annuity and structured variable annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims. (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 $2.4 billion and $3.2 billion as of March 31, 2022 and December 31, 2021, respectively. See Note 12 for additional information related to master netting arrangements and cash collateral. (4) The fair value of the GMWB and GMAB embedded derivatives as of March 31, 2022 included $1.0 billion of individual contracts in a liability position and $204 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2021 included $1.6 billion of individual contracts in a liability position and $133 million of individual contracts in an asset position. See Note 11 for additional information regarding the Company’s fair value measurement of derivative instruments. As of March 31, 2022 and December 31, 2021, investment securities with a fair value of nil and $123 million, respectively, were received as collateral to meet contractual obligations under derivative contracts, of which nil and $123 million, respectively, may be sold, pledged or rehypothecated by the Company. As of both March 31, 2022 and December 31, 2021, the Company had sold, pledged, or rehypothecated none of these securities. In addition, as of both March 31, 2022 and December 31, 2021, 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: Net Investment Income Interest Credited to Fixed Accounts Benefits, Claims, Losses and Settlement Expenses (in millions) Three Months Ended March 31, 2022 Interest rate contracts $ — $ — $ (1,118) Equity contracts — (16) 224 Credit contracts — — 97 Foreign exchange contracts — — 31 GMWB and GMAB embedded derivatives — — 658 IUL embedded derivatives — 57 — Fixed deferred indexed annuity and deposit receivables embedded derivatives — 1 — Structured variable annuity embedded derivatives — — 123 Total gain (loss) $ — $ 42 $ 15 Net Investment Income Interest Credited to Fixed Accounts Benefits, Claims, Losses and Settlement Expenses (in millions) Three Months Ended March 31, 2021 Interest rate contracts $ — $ — $ (1,825) Equity contracts 1 25 (310) Credit contracts — — 69 Foreign exchange contracts — — 11 GMWB and GMAB embedded derivatives — — 1,600 IUL embedded derivatives — (9) — Fixed deferred indexed annuity embedded derivatives — (5) — Structured variable annuity embedded derivatives — — (75) Total gain (loss) $ 1 $ 11 $ (530) 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 semi-annually over the life of the contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of March 31, 2022: Premiums Payable Premiums Receivable (in millions) 2022 (1) $ 130 $ 192 2023 50 43 2024 135 24 2025 123 21 2026 252 88 2027 - 2028 18 — Total $ 708 $ 368 (1) 2022 amounts represent the amounts payable and receivable for the period from April 1, 2022 to December 31, 2022. 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. 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 structured variable annuity and IUL products will positively or negatively impact earnings over the life of these products. The equity component of 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 both the three months ended March 31, 2022 and 2021, the Company held no derivatives that were designated as cash flow hedges. During both the three months ended March 31, 2022 and 2021, no hedge relationships were discontinued due to forecasted transactions no longer being expected to occur according to the original hedge strategy. 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 12 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 March 31, 2022 and December 31, 2021, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $467 million and $383 million, respectively. The aggregate fair value of assets posted as collateral for such instruments as of March 31, 2022 and December 31, 2021 was $462 million and $383 million, respectively. If the credit contingent provisions of derivative contracts in a net liability position as of March 31, 2022 and December 31, 2021 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 $5 million and nil as of March 31, 2022 and December 31, 2021, respectively. |
Shareholder's Equity
Shareholder's Equity | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Shareholder's Equity | Shareholder’s Equity The following tables provide the amounts related to each component of OCI: Three Months Ended March 31, 2022 2021 Pretax Income Tax Benefit (Expense) Net of Tax 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) $ (1,155) $ 241 $ (914) $ (678) $ 142 $ (536) Reclassification of net (gains) losses on securities included in net income (2) (17) 4 (13) (49) 11 (38) Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables 516 (108) 408 299 (63) 236 Net unrealized gains (losses) on securities (656) 137 (519) (428) 90 (338) Total other comprehensive income (loss) $ (656) $ 137 $ (519) $ (428) $ 90 $ (338) (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). 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 fair 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 impairments 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 Other Total (in millions) Balance, January 1, 2022 $ 329 $ (1) $ 328 OCI before reclassifications (506) — (506) Amounts reclassified from AOCI (13) — (13) Total OCI (519) — (519) Balance, March 31, 2022 $ (190) (1) $ (1) $ (191) Net Unrealized Gains (Losses) on Securities Other Total (in millions) Balance, January 1, 2021 $ 921 $ (1) $ 920 OCI before reclassifications (300) — (300) Amounts reclassified from AOCI (38) — (38) Total OCI (338) — (338) Balance, March 31, 2021 $ 583 (1) $ (1) $ 582 (1) Includes nil of noncredit related impairments on securities and net unrealized gains (losses) on previously impaired securities as of both March 31, 2022 and March 31, 2021. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate was 11.1% and 9.1% for the three months ended March 31, 2022 and 2021, respectively. The effective tax rate for both the three months ended March 31, 2022 and 2021 is lower than the statutory rate as a result of tax preferred items including low income housing tax credits, foreign tax credits, and the dividends received deduction. The increase in the effective tax rate for the three months ended March 31, 2022 compared to March 31, 2021 is primarily the result of higher pretax income and a decrease in low income housing tax credits, partially offset by an increase in foreign tax credits in the current period compared to the prior period. Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $9 million, net of federal benefit, which will expire beginning December 31, 2022. The Company is required to establish a valuation allowance for any portion of the 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. Based on analysis of the Company’s tax position, management believes it is more likely than not that the results of future operations and implementation of tax planning strategies will not allow the Company to realize certain state deferred tax assets of $2 million and state net operating losses of $9 million; therefore, a valuation allowance of $11 million has been established as of both March 31, 2022 and December 31, 2021. As of both March 31, 2022 and December 31, 2021, the Company had $37 million of gross unrecognized tax benefits. If recognized, approximately $20 million, net of federal tax benefits, of unrecognized tax benefits as of both March 31, 2022 and December 31, 2021 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 $32 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 in interest and penalties for the three months ended March 31, 2022 and 2021. As of both March 31, 2022 and December 31, 2021, the Company had a payable of $3 million related to accrued interest and penalties. 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 through 2020. Ameriprise Financial’s or the Company’s state income tax returns are currently under examination by various jurisdictions for years ranging from 2015 through 2020. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Contingencies The Company and its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions, concerning matters arising in connection with the conduct of its activities. These include proceedings specific to the Company as well as proceedings generally applicable to business practices in the industries in which it operates. The Company can also be subject to legal proceedings arising out of its general business activities, such as its investments, contracts, and employment relationships. 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. As with other insurance companies, the level of regulatory activity and inquiry concerning the Company’s businesses remains elevated. From time to time, the Company and its affiliates, including AFS and RiverSource Distributors, Inc. receive requests for information from, and/or are subject to examination or claims by various state, federal and other domestic authorities. The Company and its affiliates typically have numerous pending matters, which includes information requests, exams or inquiries regarding their business activities and practices and other subjects, including from time to time: sales and distribution of various products, including the Company’s life insurance and variable annuity products; supervision of associated persons, including AFS financial advisors and RiverSource Distributors Inc.’s wholesalers; administration of insurance and annuity claims; security of client information; and transaction monitoring systems and controls. The Company and its affiliates have cooperated and will continue to cooperate with the applicable regulators. These legal proceedings are subject to uncertainties and, as such, it is inherently difficult to determine whether any loss is probable or even reasonably possible, or to reasonably estimate the amount of any loss. The Company cannot predict with certainty if, how or when any such proceedings will be initiated or resolved. Matters frequently need to be more developed before a loss or range of loss can be reasonably estimated for any proceeding. An adverse outcome in one or more proceedings could eventually result in adverse judgments, settlements, fines, penalties or other sanctions, in addition to further claims, examinations or adverse publicity that could have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity. In accordance with applicable accounting standards, the Company establishes an accrued liability for contingent litigation and regulatory matters when those matters present loss contingencies that are both probable and can be reasonably estimated. The Company discloses the nature of the contingency when management believes there is at least a reasonable possibility that the outcome may be material to the Company’s consolidated financial statements and, where feasible, an estimate of the possible loss. In such cases, there still may be an exposure to loss in excess of any amounts reasonably estimated and accrued. When a loss contingency is not both probable and reasonably estimable, the Company does not establish an accrued liability, but continues to monitor, in conjunction with any outside counsel handling a matter, further developments that would make such loss contingency both probable and reasonably estimable. Once the Company establishes an accrued liability with respect to a loss contingency, the Company continues to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established, and any appropriate adjustments are made each quarter. 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 March 31, 2022 and December 31, 2021, the estimated liability was $12 million. As of both March 31, 2022 and December 31, 2021, 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. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | The accompanying Consolidated Financial Statements include the accounts of RiverSource Life Insurance Company and companies in which it directly or indirectly has a controlling financial interest 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. |
Basis of Accounting | The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Results of operations reported for interim periods are not necessarily indicative of results for the entire year. |
Future Adoption of New Accounting Standards | Future Adoption of New Accounting Standards Financial Instruments – Credit Losses – Troubled Debt Restructurings and Vintage Disclosures In March 2022, the Financial Accounting Standards Board (“FASB”) proposed amendments to Accounting Standard Update No. 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (“Topic 326”). The update removes the recognition and measurement guidance for Troubled Debt Restructurings (“TDRs”) by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, and modifies the disclosure requirements for certain loan refinancing and restructuring by creditors when a borrower is experiencing financial difficulty. Rather than applying the recognition and measurement for TDRs, an entity must apply the loan refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan. The update also requires entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. The amendments are to be applied prospectively, but entities may apply a modified retrospective transition for changes to the recognition and measurement of TDRs. For entities that have adopted Topic 326, the amendments are effective for interim and annual periods beginning after December 15, 2022. Early adoption is permitted for entities that have adopted Topic 326, including adoption in an interim period. The adoption of the standard is not expected to have a material impact on the Company’s consolidated financial condition and 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 including 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 deferred acquisition costs (“DAC”) and deferred sales inducement costs (“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. The standard is effective for interim and annual periods beginning after December 15, 2022. 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 in the process of implementing the standard, including the implementation of controlled measurement and reporting processes. The Company expects the impact of adopting the standard to be material to its consolidated financial condition and results of operations. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregated 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. Three Months Ended March 31, 2022 2021 (in millions) Policy and contract charges Affiliated $ 44 $ 46 Unaffiliated 4 4 Total 48 50 Other revenues Administrative fees Affiliated 12 12 Unaffiliated 5 4 17 16 Other fees Affiliated 93 95 Unaffiliated 1 1 94 96 Total 111 112 Total revenue from contracts with customers 159 162 Revenue from other sources (1) 828 886 Total revenues $ 987 $ 1,048 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) - Consolidated investment entities | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Common stocks $ — $ 3 $ — $ 3 Syndicated loans — 2,077 97 2,174 Total investments — 2,080 97 2,177 Receivables — 22 — 22 Other assets — 2 — 2 Total assets at fair value $ — $ 2,104 $ 97 $ 2,201 Liabilities Debt (1) $ — $ 2,156 $ — $ 2,156 Other liabilities — 146 — 146 Total liabilities at fair value $ — $ 2,302 $ — $ 2,302 December 31, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Common stocks $ — $ 3 $ — $ 3 Syndicated loans — 2,117 64 2,181 Total investments — 2,120 64 2,184 Receivables — 17 — 17 Other assets — — 3 3 Total assets at fair value $ — $ 2,137 $ 67 $ 2,204 Liabilities Debt (1) $ — $ 2,164 $ — $ 2,164 Other liabilities — 137 — 137 Total liabilities at fair value $ — $ 2,301 $ — $ 2,301 |
Summary of changes in Level 3 assets measured at fair value on a recurring basis | The following table provides 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, 2022 $ 64 $ 3 Total gains (losses) included in: Net income (1) (1) — Purchases 15 — Sales (1) — Transfers into Level 3 62 — Transfers out of Level 3 (42) (3) Balance, March 31, 2022 $ 97 $ — Changes in unrealized gains (losses) included in income relating to assets held at March 31, 2022 $ (1) (1) $ — Syndicated Loans Other Assets (in millions) Balance, January 1, 2021 $ 92 $ 2 Total gains (losses) included in: Net income 2 (1) — Purchases 59 — Sales (10) — Settlements (20) — Transfers into Level 3 57 — Transfers out of Level 3 (25) (2) Balance, March 31, 2021 $ 155 $ — Changes in unrealized gains (losses) included in income relating to assets held at March 31, 2021 $ 1 (1) $ — (1) Included in net investment income in the Consolidated Statements of Operations. |
Schedule of fair value and unpaid principal balance of loans and debt for which fair value option has been elected | The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected: March 31, 2022 December 31, 2021 (in millions) Syndicated loans Unpaid principal balance $ 2,242 $ 2,233 Excess unpaid principal over fair value (68) (52) Fair value $ 2,174 $ 2,181 Fair value of loans more than 90 days past due $ — $ — Fair value of loans in nonaccrual status 11 13 Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both 5 10 Debt Unpaid principal balance $ 2,295 $ 2,296 Excess unpaid principal over fair value (139) (132) Carrying value (1) $ 2,156 $ 2,164 (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 $2.1 billion and $2.2 billion as of March 31, 2022 and December 31, 2021, respectively. |
Schedule of debt and stated interest rates | Debt of the consolidated investment entities and the stated interest rates were as follows: Carrying Value Weighted Average Interest Rate March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 (in millions) Debt of consolidated CLOs due 2028-2034 $ 2,156 $ 2,164 1.9 % 1.7 % |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-Sale securities by type | Available-for-Sale securities distributed by type were as follows: Description of Securities March 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value (in millions) Fixed maturities: Corporate debt securities $ 8,682 $ 665 $ (289) $ — $ 9,058 Residential mortgage backed securities 2,475 9 (97) — 2,387 Commercial mortgage backed securities 2,807 2 (98) — 2,711 State and municipal obligations 831 163 (8) (1) 985 Asset backed securities 513 12 (9) — 516 Foreign government bonds and obligations 74 2 (2) — 74 U.S. government and agency obligations 1 — — — 1 Total $ 15,383 $ 853 $ (503) $ (1) $ 15,732 Description of Securities December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value (in millions) Fixed maturities: Corporate debt securities $ 8,447 $ 1,238 $ (47) $ — $ 9,638 Residential mortgage backed securities 2,226 36 (12) — 2,250 Commercial mortgage backed securities 2,615 56 (15) — 2,656 State and municipal obligations 832 244 (1) (1) 1,074 Asset backed securities 517 22 (2) — 537 Foreign government bonds and obligations 80 4 (1) — 83 U.S. government and agency obligations 1 — — — 1 Total $ 14,718 $ 1,600 $ (78) $ (1) $ 16,239 |
Summary of fixed maturity securities by rating | A summary of fixed maturity securities by rating was as follows: Ratings March 31, 2022 December 31, 2021 Amortized Cost Fair Value Percent of Total Fair Value Amortized Cost Fair Value Percent of Total Fair Value (in millions, except percentages) AAA $ 5,500 $ 5,318 34 % $ 5,031 $ 5,107 31 % AA 726 840 5 757 932 6 A 1,688 1,893 12 1,662 2,013 12 BBB 6,694 6,890 44 6,293 7,063 44 Below investment grade 775 791 5 975 1,124 7 Total fixed maturities $ 15,383 $ 15,732 100 % $ 14,718 $ 16,239 100 % |
Summary of fair value and gross unrealized losses on Available-for-Sale securities in continuous unrealized loss position | The following tables summarize the fair value and gross unrealized losses on Available-for-Sale securities, aggregated by major investment type and the length of time that individual securities have been in a continuous unrealized loss position for which no allowance for credit losses has been recorded: Description of Securities March 31, 2022 Less than 12 Months 12 Months or More Total Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses (in millions, except number of securities) Corporate debt securities 216 $ 2,988 $ (226) 40 $ 441 $ (63) 256 $ 3,429 $ (289) Residential mortgage backed securities 113 1,565 (80) 9 167 (17) 122 1,732 (97) Commercial mortgage backed securities 180 2,216 (84) 14 154 (14) 194 2,370 (98) State and municipal obligations 47 117 (7) 1 4 (1) 48 121 (8) Asset backed securities 15 388 (9) — — — 15 388 (9) Foreign government bonds and obligations 6 22 (1) 9 7 (1) 15 29 (2) Total 577 $ 7,296 $ (407) 73 $ 773 $ (96) 650 $ 8,069 $ (503) Description of Securities December 31, 2021 Less than 12 Months 12 Months or More Total Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses (in millions, except number of securities) Corporate debt securities 102 $ 2,007 $ (42) 14 $ 81 $ (5) 116 $ 2,088 $ (47) Residential mortgage backed securities 55 1,162 (12) 2 1 — 57 1,163 (12) Commercial mortgage backed securities 60 809 (15) 3 13 — 63 822 (15) State and municipal obligations 25 63 (1) — — — 25 63 (1) Asset backed securities 5 91 (2) — — — 5 91 (2) Foreign government bonds and obligations 5 6 — 6 4 (1) 11 10 (1) Total 252 $ 4,138 $ (72) 25 $ 99 $ (6) 277 $ 4,237 $ (78) |
Rollforward of allowance for credit losses on Available-for-Sale securities | The following tables present a rollforward of the allowance for credit losses on Available-for-Sale securities: Corporate Debt Securities State and Municipal Obligations Total (in millions) Balance at January 1, 2022 $ — $ 1 $ 1 Charge-offs — — — Balance at March 31, 2022 $ — $ 1 $ 1 Balance at January 1, 2021 $ 10 $ — $ 10 Charge-offs (10) — (10) Balance at March 31, 2021 $ — $ — $ — |
Schedule of net realized gains and losses on 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: Three Months Ended March 31, 2022 2021 (in millions) Gross realized investment gains $ 20 $ 49 Gross realized investment losses (3) — Total $ 17 $ 49 |
Schedule of Available-for-Sale securities by contractual maturity | Available-for-Sale securities by contractual maturity as of March 31, 2022 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 549 $ 552 Due after one year through five years 1,829 1,849 Due after five years through 10 years 3,563 3,382 Due after 10 years 3,647 4,335 9,588 10,118 Residential mortgage backed securities 2,475 2,387 Commercial mortgage backed securities 2,807 2,711 Asset backed securities 513 516 Total $ 15,383 $ 15,732 |
Summary of net investment income | The following is a summary of Net investment income: Three Months Ended March 31, 2022 2021 (in millions) Fixed maturities $ 136 $ 189 Mortgage loans 19 28 Other investments 9 35 164 252 Less: investment expenses 5 5 Total $ 159 $ 247 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Financing Receivables | |
Rollforward of allowance for credit losses | The following tables present a rollforward of the allowance for credit losses: Commercial Loans (in millions) Balance, January 1, 2022 $ 12 Provisions (1) Balance, March 31, 2022 $ 11 Commercial Loans (in millions) Balance, January 1, 2021 $ 35 Provisions (2) Balance, March 31, 2021 $ 33 |
Schedule of concentrations of credit risk of loans by region and property type | Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows: Loans Percentage March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 (in millions) East North Central $ 197 $ 183 11 % 10 % East South Central 54 54 3 3 Middle Atlantic 106 107 6 6 Mountain 110 111 6 6 New England 20 21 1 1 Pacific 599 589 33 33 South Atlantic 484 477 26 26 West North Central 134 136 7 8 West South Central 119 122 7 7 1,823 1,800 100 % 100 % Less: allowance for credit losses 11 12 Total $ 1,812 $ 1,788 Concentrations of credit risk of commercial mortgage loans by property type were as follows: Loans Percentage March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 (in millions) Apartments $ 480 $ 464 26 % 26 % Hotel 14 15 1 1 Industrial 296 293 16 16 Mixed use 56 57 3 3 Office 251 254 14 14 Retail 592 589 33 33 Other 134 128 7 7 1,823 1,800 100 % 100 % Less: allowance for credit losses 11 12 Total $ 1,812 $ 1,788 |
Commercial Loans | Commercial mortgage loans | |
Financing Receivables | |
Schedule of amortized cost basis of loans and credit quality information | The tables below present the amortized cost basis of commercial mortgage loans by year of origination and loan-to-value ratio: March 31, 2022 Loan-to-Value Ratio 2022 2021 2020 2019 2018 Prior Total (in millions) > 100% $ — $ — $ — $ 11 $ 10 $ 15 $ 36 80% - 100% — 9 — 26 2 39 76 60% - 80% 21 97 62 48 14 159 401 40% - 60% 17 76 27 75 64 465 724 < 40% 4 9 26 — 65 482 586 Total $ 42 $ 191 $ 115 $ 160 $ 155 $ 1,160 $ 1,823 December 31, 2021 Loan-to-Value Ratio 2021 2020 2019 2018 2017 Prior Total (in millions) > 100% $ — $ — $ 20 $ 10 $ — $ 29 $ 59 80% - 100% 9 2 9 2 — 29 51 60% - 80% 141 76 59 15 58 133 482 40% - 60% 37 30 75 74 49 393 658 < 40% 6 8 46 — 47 443 550 Total $ 193 $ 116 $ 209 $ 101 $ 154 $ 1,027 $ 1,800 |
Commercial Loans | Syndicated loans | |
Financing Receivables | |
Schedule of amortized cost basis of loans and credit quality information | The tables below present the amortized cost basis of syndicated loans by origination year and internal risk rating: March 31, 2022 Internal Risk Rating 2022 2021 2020 2019 2018 Prior Total (in millions) Risk 5 $ — $ — $ — $ — $ — $ — $ — Risk 4 — — — — — — — Risk 3 — 3 — 3 — 2 8 Risk 2 — 9 — 1 1 10 21 Risk 1 — 3 — — 3 8 14 Total $ — $ 15 $ — $ 4 $ 4 $ 20 $ 43 December 31, 2021 Internal Risk Rating 2021 2020 2019 2018 2017 Prior Total (in millions) Risk 5 $ — $ — $ — $ — $ — $ — $ — Risk 4 — — — — — — — Risk 3 — — — — — 1 1 Risk 2 11 — 4 1 8 4 28 Risk 1 4 — — 3 3 4 14 Total $ 15 $ — $ 4 $ 4 $ 11 $ 9 $ 43 |
Deferred Acquisition Costs an_2
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Deferred Charges, Insurers [Abstract] | |
Schedule of balances of and changes in DAC | The balances of and changes in DAC were as follows: 2022 2021 (in millions) Balance at January 1 $ 2,757 $ 2,508 Capitalization of acquisition costs 51 62 Amortization (92) (2) Impact of change in net unrealized (gains) losses on securities 189 93 Balance at March 31 $ 2,905 $ 2,661 |
Schedule of balances of and changes in DSIC | The balances of and changes in DSIC, which is included in Other assets, were as follows: 2022 2021 (in millions) Balance at January 1 $ 187 $ 187 Amortization (8) (3) Impact of change in net unrealized (gains) losses on securities 6 4 Balance at March 31 $ 185 $ 188 |
Policyholder Account Balances_2
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Policyholder Account Balances, Future Policy Benefits and Claims & Separate Account Liabilities [Abstract] | |
Schedule of components of policyholder account balances, future policy benefits and claims | Policyholder account balances, future policy benefits and claims consisted of the following: March 31, 2022 December 31, 2021 (in millions) Policyholder account balances Fixed annuities (1) $ 8,002 $ 8,117 Variable annuity fixed sub-accounts 4,951 4,990 Universal life (“UL”)/variable universal life (“VUL”) insurance 3,092 3,103 Indexed universal life (“IUL”) insurance 2,587 2,534 Structured variable annuities 4,885 4,440 Other life insurance 553 563 Total policyholder account balances 24,070 23,747 Future policy benefits Variable annuity guaranteed minimum withdrawal benefits (“GMWB”) 1,750 2,336 Variable annuity guaranteed minimum accumulation benefits (“GMAB”) (2) (17) (23) Other annuity liabilities 96 67 Fixed annuity life contingent liabilities 1,254 1,278 Life and disability income insurance 1,125 1,139 Long term care insurance 5,485 5,664 UL/VUL and other life insurance additional liabilities 1,203 1,291 Total future policy benefits 10,896 11,752 Policy claims and other policyholders’ funds 253 245 Total policyholder account balances, future policy benefits and claims $ 35,219 $ 35,744 (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 March 31, 2022 and December 31, 2021 reported as a contra liability. |
Schedule of components of separate account liabilities | Separate account liabilities consisted of the following: March 31, 2022 December 31, 2021 (in millions) Variable annuity $ 75,921 $ 82,862 VUL insurance 8,719 9,343 Other insurance 31 33 Total $ 84,671 $ 92,238 |
Variable Annuity and Insuranc_2
Variable Annuity and Insurance Guarantees (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Insurance [Abstract] | |
Schedule of variable annuity guarantees with additional liabilities | 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) March 31, 2022 December 31, 2021 Total Contract Value Contract Value in Separate Accounts Net Amount at Risk Weighted Average Attained Age Total Contract Value Contract Value in Separate Accounts Net Amount at Risk Weighted Average Attained Age (in millions, except age) GMDB: Return of premium $ 64,309 $ 62,458 $ 122 69 $ 70,020 $ 68,145 $ 6 69 Five/six-year reset 7,814 5,125 40 69 8,309 5,612 6 68 One-year ratchet 5,689 5,375 222 72 6,177 5,858 13 71 Five-year ratchet 1,318 1,266 13 68 1,438 1,386 1 68 Other 1,190 1,175 99 74 1,302 1,286 38 74 Total — GMDB $ 80,320 $ 75,399 $ 496 69 $ 87,246 $ 82,287 $ 64 69 GGU death benefit $ 1,173 $ 1,112 $ 164 72 $ 1,260 $ 1,198 $ 184 72 GMIB $ 166 $ 153 $ 5 72 $ 184 $ 170 $ 4 71 GMWB: GMWB $ 1,724 $ 1,719 $ 2 75 $ 1,900 $ 1,895 $ 1 75 GMWB for life 47,847 47,815 575 69 52,387 52,334 187 69 Total — GMWB $ 49,571 $ 49,534 $ 577 69 $ 54,287 $ 54,229 $ 188 69 GMAB $ 1,771 $ 1,771 $ 3 62 $ 2,005 $ 2,005 $ — 62 (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 insurance guarantees with additional liabilities | The following table provides information related to insurance guarantees for which the Company has established additional liabilities: March 31, 2022 December 31, 2021 Net Amount at Risk Weighted Average Attained Age Net Amount at Risk Weighted Average Attained Age (in millions, except age) UL secondary guarantees $ 6,563 68 $ 6,564 68 |
Schedule of changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees | Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows: GMDB & GGU GMIB GMWB (1) GMAB (1) UL (in millions) Balance at January 1, 2022 $ 36 $ 5 $ 2,336 $ (23) $ 1,020 Incurred claims — — (586) 6 31 Paid claims (3) — — — (9) Balance at March 31, 2022 $ 33 $ 5 $ 1,750 $ (17) $ 1,042 Balance at January 1, 2021 $ 24 $ 6 $ 3,049 $ 1 $ 916 Incurred claims 3 — (1,570) (23) 32 Paid claims (1) — — — (8) Balance at March 31, 2021 $ 26 $ 6 $ 1,479 $ (22) $ 940 (1) The incurred claims for GMWB and GMAB include the change in the fair value of the liabilities (contra liabilities) less paid claims. |
Summary of distribution of separate account balances by asset type | The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: March 31, 2022 December 31, 2021 (in millions) Mutual funds: Equity $ 46,511 $ 49,183 Bond 21,640 24,998 Other 7,438 8,316 Total mutual funds $ 75,589 $ 82,497 |
Fair Values of Assets and Lia_2
Fair Values of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value of Assets and Liabilities | |
Summary of significant unobservable inputs used in fair value measurements of Level 3 assets and liabilities | 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: March 31, 2022 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 487 Discounted cash flow Yield/spread to U.S. Treasuries (1) 0.9% – 3.0% 1.3% Asset backed securities $ 263 Discounted cash flow Annual default rate 6.2% 6.2% Loss severity 25.0% 25.0% Yield/spread to swap rates (2) 225 bps – 325 bps 233 bps Fixed deferred indexed annuity ceded embedded derivatives $ 55 Discounted cash flow Surrender rate (4) 0.0% – 66.8% 1.4% IUL embedded derivatives $ 848 Discounted cash flow Nonperformance risk (3) 85 bps 85 bps Fixed deferred indexed annuity embedded derivatives $ 52 Discounted cash flow Surrender rate (4) 0.0% – 66.8% 1.4% Nonperformance risk (3) 85 bps 85 bps GMWB and GMAB embedded derivatives $ 828 Discounted cash flow Utilization of guaranteed withdrawals (5) (6) 0.0% – 48.0% 10.6% Surrender rate (4) 0.1% – 55.7% 3.6% Market volatility (7) (8) 4.3% – 16.5% 10.9% Nonperformance risk (3) 85 bps 85 bps Structured variable annuity embedded derivatives $ 280 Discounted cash flow Surrender rate (4) 0.8% – 40.0% 0.9% Nonperformance risk (3) 85 bps 85 bps December 31, 2021 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 496 Discounted cash flow Yield/spread to U.S. Treasuries (1) 0.8% – 2.4% 1.1% Asset backed securities $ 291 Discounted cash flow Annual default rate 5.8% 5.8% Loss severity 25.0% 25.0% Yield/spread to swap rates (2) 175 bps – 275 bps 182 bps Fixed deferred indexed annuity ceded embedded derivatives $ 59 Discounted cash flow Surrender rate (4) 0.0% – 66.8% 1.4% IUL embedded derivatives $ 905 Discounted cash flow Nonperformance risk (3) 65 bps 65 bps Fixed deferred indexed annuity embedded derivatives $ 56 Discounted cash flow Surrender rate (4) 0.0% – 66.8% 1.4% Nonperformance risk (3) 65 bps 65 bps GMWB and GMAB embedded derivatives $ 1,486 Discounted cash flow Utilization of guaranteed withdrawals (5) (6) 0.0% – 48.0% 10.6% Surrender rate (4) 0.1% – 55.7% 3.6% Market volatility (7) (8) 4.3% – 16.8% 10.8% Nonperformance risk (3) 65 bps 65 bps Structured variable annuity embedded derivatives $ 406 Discounted cash flow Surrender rate (4) 0.8% – 40.0% 0.9% Nonperformance risk (3) 65 bps 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 represents the 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 estimated fair value of financial instruments 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: March 31, 2022 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 1,812 $ — $ — $ 1,781 $ 1,781 Policy loans 833 — 833 — 833 Other investments 60 — 40 20 60 Receivables 7,754 — — 7,646 7,646 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 12,841 $ — $ — $ 12,678 $ 12,678 Short-term borrowings 200 — 200 — 200 Long-term debt 500 — 427 — 427 Other liabilities 9 — — 8 8 Separate account liabilities — investment contracts 370 — 370 — 370 December 31, 2021 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 1,788 $ — $ — $ 1,872 $ 1,872 Policy loans 834 — 834 — 834 Other investments 61 — 40 21 61 Receivables 7,876 — — 8,630 8,630 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 12,342 $ — $ — $ 13,264 $ 13,264 Short-term borrowings 200 — 200 — 200 Long-term debt 500 — 498 — 498 Other liabilities 9 — — 9 9 Separate account liabilities — investment contracts 403 — 403 — 403 |
RiverSource Life | |
Fair Value of Assets and Liabilities | |
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 (See Note 4 for the balances of assets and liabilities for consolidated investment entities): March 31, 2022 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Corporate debt securities $ — $ 8,561 $ 497 $ 9,058 Residential mortgage backed securities — 2,387 — 2,387 Commercial mortgage backed securities — 2,681 30 2,711 State and municipal obligations — 985 — 985 Asset backed securities — 253 263 516 Foreign government bonds and obligations — 74 — 74 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities 1 14,941 790 15,732 Cash equivalents 1,333 1,175 — 2,508 Receivables : Fixed deferred indexed annuity ceded embedded derivatives — — 55 55 Other assets: Interest rate derivative contracts 3 736 — 739 Equity derivative contracts 148 3,667 — 3,815 Foreign exchange derivative contracts 2 24 — 26 Credit derivative contracts — 45 — 45 Total other assets 153 4,472 — 4,625 Separate account assets at net asset value (“NAV”) 84,671 (1) Total assets at fair value $ 1,487 $ 20,588 $ 845 $ 107,591 Liabilities Policyholder account balances, future policy benefits and claims: Fixed deferred indexed annuity embedded derivatives $ — $ 5 $ 52 $ 57 IUL embedded derivatives — — 848 848 GMWB and GMAB embedded derivatives — — 828 828 (2) Structured variable annuity embedded derivatives — — 280 280 Total policyholder account balances, future policy benefits and claims — 5 2,008 2,013 (3) Other liabilities: Interest rate derivative contracts 7 308 — 315 Equity derivative contracts 255 3,503 — 3,758 Foreign exchange derivative contracts — 3 — 3 Total other liabilities 262 3,814 — 4,076 Total liabilities at fair value $ 262 $ 3,819 $ 2,008 $ 6,089 December 31, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Corporate debt securities $ — $ 9,142 $ 496 $ 9,638 Residential mortgage backed securities — 2,250 — 2,250 Commercial mortgage backed securities — 2,656 — 2,656 State and municipal obligations — 1,074 — 1,074 Asset backed securities — 246 291 537 Foreign government bonds and obligations — 83 — 83 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities 1 15,451 787 16,239 Cash equivalents 1,985 1,191 — 3,176 Receivables: Fixed deferred indexed annuity ceded embedded derivatives — — 59 59 Other assets: Interest rate derivative contracts 1 1,251 — 1,252 Equity derivative contracts 158 4,080 — 4,238 Foreign exchange derivative contracts 1 17 — 18 Credit derivative contracts — 9 — 9 Total other assets 160 5,357 — 5,517 Separate account assets at NAV 92,238 (1) Total assets at fair value $ 2,146 $ 21,999 $ 846 $ 117,229 Liabilities Policyholder account balances, future policy benefits and claims: Fixed deferred indexed annuity embedded derivatives $ — $ 5 $ 56 $ 61 IUL embedded derivatives — — 905 905 GMWB and GMAB embedded derivatives — — 1,486 1,486 (4) Structured variable annuity embedded derivatives — — 406 406 Total policyholder account balances, future policy benefits and claims — 5 2,853 2,858 (5) Other liabilities: Interest rate derivative contracts 1 467 — 468 Equity derivative contracts 101 3,610 — 3,711 Foreign exchange derivative contracts 1 — — 1 Total other liabilities 103 4,077 — 4,180 Total liabilities at fair value $ 103 $ 4,082 $ 2,853 $ 7,038 (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 $1.0 billion of individual contracts in a liability position and $204 million of individual contracts in an asset position (recorded as a contra liability) as of March 31, 2022. (3) The Company’s adjustment for nonperformance risk resulted in a $607 million cumulative decrease to the embedded derivatives as of March 31, 2022. (4) The fair value of the GMWB and GMAB embedded derivatives included $1.6 billion of individual contracts in a liability position and $133 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2021. (5) The Company’s adjustment for nonperformance risk resulted in a $598 million cumulative decrease to the embedded derivatives as of December 31, 2021. |
Summary of changes in Level 3 assets 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 Receivables Corporate Debt Securities Commercial Mortgage Backed Securities Asset Backed Securities Total Fixed Deferred Indexed Annuity Ceded Embedded Derivatives (in millions) Balance at January 1, 2022 $ 496 $ — $ 291 $ 787 $ 59 Total gains (losses) included in: Net income — — — — (3) Other comprehensive income (loss) (22) — (7) (29) — Purchases 23 30 — 53 — Settlements — — (21) (21) (1) Balance at March 31, 2022 $ 497 $ 30 $ 263 $ 790 $ 55 Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at March 31, 2022 $ (22) $ — $ (7) $ (29) $ — Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total (in millions) Balance at January 1, 2022 $ 56 $ 905 $ 1,486 $ 406 $ 2,853 Total (gains) losses included in: Net income (3) (1) (32) (1) (679) (2) (124) (2) (838) Issues — — 87 4 91 Settlements (1) (25) (66) (6) (98) Balance at March 31, 2022 $ 52 $ 848 $ 828 $ 280 $ 2,008 Changes in unrealized (gains) losses in net income relating to liabilities held at March 31, 2022 $ — $ (32) (1) $ (671) (2) $ — $ (703) Available-for-Sale Securities Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance at January 1, 2021 $ 766 $ 9 $ 395 $ 1,170 Total gains (losses) included in: Other comprehensive income (loss) (5) — 3 (2) Purchases 46 — — 46 Settlements — — (19) (19) Balance at March 31, 2021 $ 807 $ 9 $ 379 $ 1,195 Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at March 31, 2021 $ (5) $ — $ 3 $ (2) Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total (in millions) Balance at January 1, 2021 $ 49 $ 935 $ 2,316 $ 70 $ 3,370 Total (gains) losses included in: Net income 4 (1) 29 (1) (1,729) (2) 75 (2) (1,621) Issues — 5 90 (15) 80 Settlements (1) (20) 38 (6) 11 Balance at March 31, 2021 $ 52 $ 949 $ 715 $ 124 $ 1,840 Changes in unrealized (gains) losses in net income relating to liabilities held at March 31, 2021 $ — $ 29 (1) $ (1,705) (2) $ — $ (1,676) (1) Included in Interest credited to fixed accounts. (2) Included in Benefits, claims, losses and settlement expenses. |
Summary of changes in Level 3 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 Receivables Corporate Debt Securities Commercial Mortgage Backed Securities Asset Backed Securities Total Fixed Deferred Indexed Annuity Ceded Embedded Derivatives (in millions) Balance at January 1, 2022 $ 496 $ — $ 291 $ 787 $ 59 Total gains (losses) included in: Net income — — — — (3) Other comprehensive income (loss) (22) — (7) (29) — Purchases 23 30 — 53 — Settlements — — (21) (21) (1) Balance at March 31, 2022 $ 497 $ 30 $ 263 $ 790 $ 55 Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at March 31, 2022 $ (22) $ — $ (7) $ (29) $ — Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total (in millions) Balance at January 1, 2022 $ 56 $ 905 $ 1,486 $ 406 $ 2,853 Total (gains) losses included in: Net income (3) (1) (32) (1) (679) (2) (124) (2) (838) Issues — — 87 4 91 Settlements (1) (25) (66) (6) (98) Balance at March 31, 2022 $ 52 $ 848 $ 828 $ 280 $ 2,008 Changes in unrealized (gains) losses in net income relating to liabilities held at March 31, 2022 $ — $ (32) (1) $ (671) (2) $ — $ (703) Available-for-Sale Securities Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance at January 1, 2021 $ 766 $ 9 $ 395 $ 1,170 Total gains (losses) included in: Other comprehensive income (loss) (5) — 3 (2) Purchases 46 — — 46 Settlements — — (19) (19) Balance at March 31, 2021 $ 807 $ 9 $ 379 $ 1,195 Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at March 31, 2021 $ (5) $ — $ 3 $ (2) Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total (in millions) Balance at January 1, 2021 $ 49 $ 935 $ 2,316 $ 70 $ 3,370 Total (gains) losses included in: Net income 4 (1) 29 (1) (1,729) (2) 75 (2) (1,621) Issues — 5 90 (15) 80 Settlements (1) (20) 38 (6) 11 Balance at March 31, 2021 $ 52 $ 949 $ 715 $ 124 $ 1,840 Changes in unrealized (gains) losses in net income relating to liabilities held at March 31, 2021 $ — $ 29 (1) $ (1,705) (2) $ — $ (1,676) (1) Included in Interest credited to fixed accounts. (2) Included in Benefits, claims, losses and settlement expenses. |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Offsetting [Abstract] | |
Schedule of gross and net information about assets subject to master netting arrangements | The following tables present the gross and net information about the Company’s assets subject to master netting arrangements: March 31, 2022 Gross Amounts of Recognized Assets Gross Amounts Offset in the 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 $ 4,372 $ — $ 4,372 $ (3,250) $ (1,071) $ — $ 51 OTC cleared 156 — 156 (82) — — 74 Exchange-traded 97 — 97 (88) — — 9 Total derivatives $ 4,625 $ — $ 4,625 $ (3,420) $ (1,071) $ — $ 134 December 31, 2021 Gross Amounts of Recognized Assets Gross Amounts Offset in the 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 $ 5,330 $ — $ 5,330 $ (3,571) $ (1,623) $ (114) $ 22 OTC cleared 88 — 88 (41) — — 47 Exchange-traded 99 — 99 (91) — — 8 Total derivatives $ 5,517 $ — $ 5,517 $ (3,703) $ (1,623) $ (114) $ 77 (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 liabilities subject to master netting arrangements | The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements: March 31, 2022 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,817 $ — $ 3,817 $ (3,250) $ (169) $ (393) $ 5 OTC cleared 82 — 82 (82) — — — Exchange-traded 177 — 177 (88) (89) — — Total derivatives $ 4,076 $ — $ 4,076 $ (3,420) $ (258) $ (393) $ 5 December 31, 2021 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 4,048 $ — $ 4,048 $ (3,571) $ (181) $ (293) $ 3 OTC cleared 41 — 41 (41) — — — Exchange-traded 91 — 91 (91) — — — Total derivatives $ 4,180 $ — $ 4,180 $ (3,703) $ (181) $ (293) $ 3 (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) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional value and gross fair value of derivative instruments, including embedded derivatives | Generally, 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: March 31, 2022 December 31, 2021 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 $ 82,220 $ 739 $ 315 $ 79,459 $ 1,252 $ 468 Equity contracts 62,203 3,815 3,758 59,763 4,238 3,711 Credit contracts 2,151 45 — 1,717 9 — Foreign exchange contracts 2,427 26 3 2,239 18 1 Total non-designated hedges 149,001 4,625 4,076 143,178 5,517 4,180 Embedded derivatives GMWB and GMAB (4) N/A — 828 N/A — 1,486 IUL N/A — 848 N/A — 905 Fixed deferred indexed annuities and deposit receivables N/A 55 57 N/A 59 61 Structured variable annuities N/A — 280 N/A — 406 Total embedded derivatives N/A 55 2,013 N/A 59 2,858 Total derivatives $ 149,001 $ 4,680 $ 6,089 $ 143,178 $ 5,576 $ 7,038 N/A Not applicable. (1) The fair value of freestanding derivative assets is included in Other assets and the fair value of ceded derivative assets related to deposit receivables is included in Receivables. (2) The fair value of freestanding derivative liabilities is included in Other liabilities. The fair value of GMWB and GMAB, IUL, fixed deferred indexed annuity and structured variable annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims. (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 $2.4 billion and $3.2 billion as of March 31, 2022 and December 31, 2021, respectively. See Note 12 for additional information related to master netting arrangements and cash collateral. (4) The fair value of the GMWB and GMAB embedded derivatives as of March 31, 2022 included $1.0 billion of individual contracts in a liability position and $204 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2021 included $1.6 billion of individual contracts in a liability position and $133 million of individual contracts in an asset position. |
Summary of impact of derivatives not designated as hedging instruments, including embedded derivatives | 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: Net Investment Income Interest Credited to Fixed Accounts Benefits, Claims, Losses and Settlement Expenses (in millions) Three Months Ended March 31, 2022 Interest rate contracts $ — $ — $ (1,118) Equity contracts — (16) 224 Credit contracts — — 97 Foreign exchange contracts — — 31 GMWB and GMAB embedded derivatives — — 658 IUL embedded derivatives — 57 — Fixed deferred indexed annuity and deposit receivables embedded derivatives — 1 — Structured variable annuity embedded derivatives — — 123 Total gain (loss) $ — $ 42 $ 15 Net Investment Income Interest Credited to Fixed Accounts Benefits, Claims, Losses and Settlement Expenses (in millions) Three Months Ended March 31, 2021 Interest rate contracts $ — $ — $ (1,825) Equity contracts 1 25 (310) Credit contracts — — 69 Foreign exchange contracts — — 11 GMWB and GMAB embedded derivatives — — 1,600 IUL embedded derivatives — (9) — Fixed deferred indexed annuity embedded derivatives — (5) — Structured variable annuity embedded derivatives — — (75) Total gain (loss) $ 1 $ 11 $ (530) |
Summary of payments to make and receive for options and swaptions | The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of March 31, 2022: Premiums Payable Premiums Receivable (in millions) 2022 (1) $ 130 $ 192 2023 50 43 2024 135 24 2025 123 21 2026 252 88 2027 - 2028 18 — Total $ 708 $ 368 (1) 2022 amounts represent the amounts payable and receivable for the period from April 1, 2022 to December 31, 2022. |
Shareholder's Equity (Tables)
Shareholder's Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of amounts related to each component of OCI | The following tables provide the amounts related to each component of OCI: Three Months Ended March 31, 2022 2021 Pretax Income Tax Benefit (Expense) Net of Tax 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) $ (1,155) $ 241 $ (914) $ (678) $ 142 $ (536) Reclassification of net (gains) losses on securities included in net income (2) (17) 4 (13) (49) 11 (38) Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables 516 (108) 408 299 (63) 236 Net unrealized gains (losses) on securities (656) 137 (519) (428) 90 (338) Total other comprehensive income (loss) $ (656) $ 137 $ (519) $ (428) $ 90 $ (338) (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). |
Schedule of changes in the balances of each component of AOCI | The following table presents the changes in the balances of each component of AOCI, net of tax: Net Unrealized Gains (Losses) on Securities Other Total (in millions) Balance, January 1, 2022 $ 329 $ (1) $ 328 OCI before reclassifications (506) — (506) Amounts reclassified from AOCI (13) — (13) Total OCI (519) — (519) Balance, March 31, 2022 $ (190) (1) $ (1) $ (191) Net Unrealized Gains (Losses) on Securities Other Total (in millions) Balance, January 1, 2021 $ 921 $ (1) $ 920 OCI before reclassifications (300) — (300) Amounts reclassified from AOCI (38) — (38) Total OCI (338) — (338) Balance, March 31, 2021 $ 583 (1) $ (1) $ 582 (1) Includes nil of noncredit related impairments on securities and net unrealized gains (losses) on previously impaired securities as of both March 31, 2022 and March 31, 2021. |
Basis of Presentation - Subsidi
Basis of Presentation - Subsidiaries (Details) | Mar. 31, 2022subsidiary |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of wholly owned subsidiaries | 1 |
Revenue from Contract with Cust
Revenue from Contract with Customers - Disaggregated Revenue and Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Revenues | |||
Revenue from contracts with customers | $ 159 | $ 162 | |
Revenue from other sources | 828 | 886 | |
Total revenues | 987 | 1,048 | |
Receivables related to revenues from contracts with customers | 57 | $ 62 | |
Policy and contract charges | |||
Revenues | |||
Revenue from contracts with customers | 48 | 50 | |
Policy and contract charges | Affiliated | |||
Revenues | |||
Revenue from contracts with customers | 44 | 46 | |
Policy and contract charges | Unaffiliated | |||
Revenues | |||
Revenue from contracts with customers | 4 | 4 | |
Total Other revenues | |||
Revenues | |||
Revenue from contracts with customers | 111 | 112 | |
Other revenues: Administrative fees | |||
Revenues | |||
Revenue from contracts with customers | 17 | 16 | |
Other revenues: Administrative fees | Affiliated | |||
Revenues | |||
Revenue from contracts with customers | 12 | 12 | |
Other revenues: Administrative fees | Unaffiliated | |||
Revenues | |||
Revenue from contracts with customers | 5 | 4 | |
Other revenues: Other fees | |||
Revenues | |||
Revenue from contracts with customers | 94 | 96 | |
Other revenues: Other fees | Affiliated | |||
Revenues | |||
Revenue from contracts with customers | 93 | 95 | |
Other revenues: Other fees | Unaffiliated | |||
Revenues | |||
Revenue from contracts with customers | $ 1 | $ 1 |
Variable Interest Entities - In
Variable Interest Entities - Investment Entities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
VIEs, not primary beneficiary | ||
Variable interest entities | ||
Obligation to provide financial or other support to VIEs | $ 0 | |
VIEs, not primary beneficiary | Affordable Housing Partnerships and Other Real Estate Partnerships | ||
Variable interest entities | ||
Maximum loss exposure | 124 | $ 138 |
Other investments | 124 | 138 |
Liability related to original purchase commitments not yet remitted | 8 | 8 |
Consolidated investment entities | Unfunded commitments | ||
Variable interest entities | ||
Loans | $ 28 | $ 27 |
Variable Interest Entities - Fa
Variable Interest Entities - Fair Value of Assets and Liabilities (Details) - Consolidated investment entities - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Liabilities | ||
Debt | $ 2,156 | $ 2,164 |
Recurring basis | ||
Assets | ||
Investments | 2,177 | 2,184 |
Receivables | 22 | 17 |
Other assets | 2 | 3 |
Total assets at fair value | 2,201 | 2,204 |
Liabilities | ||
Debt | 2,156 | 2,164 |
Other liabilities | 146 | 137 |
Total liabilities at fair value | 2,302 | 2,301 |
Recurring basis | Common stocks | ||
Assets | ||
Investments | 3 | 3 |
Recurring basis | Syndicated loans | ||
Assets | ||
Investments | 2,174 | 2,181 |
Recurring basis | Level 1 | ||
Assets | ||
Investments | 0 | 0 |
Receivables | 0 | 0 |
Other assets | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities | ||
Debt | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Recurring basis | Level 1 | Common stocks | ||
Assets | ||
Investments | 0 | 0 |
Recurring basis | Level 1 | Syndicated loans | ||
Assets | ||
Investments | 0 | 0 |
Recurring basis | Level 2 | ||
Assets | ||
Investments | 2,080 | 2,120 |
Receivables | 22 | 17 |
Other assets | 2 | 0 |
Total assets at fair value | 2,104 | 2,137 |
Liabilities | ||
Debt | 2,156 | 2,164 |
Other liabilities | 146 | 137 |
Total liabilities at fair value | 2,302 | 2,301 |
Recurring basis | Level 2 | Common stocks | ||
Assets | ||
Investments | 3 | 3 |
Recurring basis | Level 2 | Syndicated loans | ||
Assets | ||
Investments | 2,077 | 2,117 |
Recurring basis | Level 3 | ||
Assets | ||
Investments | 97 | 64 |
Receivables | 0 | 0 |
Other assets | 0 | 3 |
Total assets at fair value | 97 | 67 |
Liabilities | ||
Debt | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Recurring basis | Level 3 | Common stocks | ||
Assets | ||
Investments | 0 | 0 |
Recurring basis | Level 3 | Syndicated loans | ||
Assets | ||
Investments | 97 | 64 |
CLOs | ||
Liabilities | ||
Debt | $ 2,100 | $ 2,200 |
Variable Interest Entities - Ch
Variable Interest Entities - Changes in Level 3 Assets (Details) - Consolidated investment entities - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Syndicated loans | ||
Summary of changes in Level 3 assets measured at fair value on a recurring basis | ||
Balance, beginning | $ 64 | $ 92 |
Total gains (losses) included in net income | (1) | 2 |
Purchases | 15 | 59 |
Sales | (1) | (10) |
Settlements | (20) | |
Transfers into level 3 | 62 | 57 |
Transfers out of Level 3 | (42) | (25) |
Balance, ending | 97 | 155 |
Changes in unrealized gains (losses) in net income relating to assets held at end of period | (1) | 1 |
Other assets | ||
Summary of changes in Level 3 assets measured at fair value on a recurring basis | ||
Balance, beginning | 3 | 2 |
Total gains (losses) included in net income | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | |
Transfers into level 3 | 0 | 0 |
Transfers out of Level 3 | (3) | (2) |
Balance, ending | 0 | 0 |
Changes in unrealized gains (losses) in net income relating to assets held at end of period | $ 0 | $ 0 |
Variable Interest Entities - _2
Variable Interest Entities - Fair Value Option (Details) - Consolidated investment entities - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Loans | ||
Unpaid principal balance | $ 2,242 | $ 2,233 |
Excess unpaid principal over fair value | (68) | (52) |
Fair Value | 2,174 | 2,181 |
Fair value of loans more than 90 days past due | 0 | 0 |
Fair value of loans in nonaccrual status | 11 | 13 |
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both | 5 | 10 |
Debt | ||
Unpaid principal balance | 2,295 | 2,296 |
Excess unpaid principal over fair value | (139) | (132) |
Carrying value | 2,156 | 2,164 |
CLOs | ||
Debt | ||
Carrying value | $ 2,100 | $ 2,200 |
Variable Interest Entities - De
Variable Interest Entities - Debt and Stated Interest Rates (Details) - Consolidated investment entities - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt | ||
Carrying value | $ 2,156 | $ 2,164 |
Weighted Average Interest Rate | 1.90% | 1.70% |
Minimum | ||
Debt | ||
Interest rates | 0.00% | |
Maximum | ||
Debt | ||
Interest rates | 9.50% |
Investments - Available-for-Sal
Investments - Available-for-Sale Securities by Type (Details) - RiverSource Life - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Investments | ||||
Amortized Cost | $ 15,383 | $ 14,718 | ||
Gross Unrealized Gains | 853 | 1,600 | ||
Gross Unrealized Losses | (503) | (78) | ||
Allowance for Credit Losses | (1) | (1) | $ 0 | $ (10) |
Fair Value | 15,732 | 16,239 | ||
Accrued interest excluded from amortized cost basis | 129 | 118 | ||
Fair value of investment securities pledged to meet contractual obligations | 2,500 | 2,400 | ||
Fair value of securities pledged that may be sold, pledged or rehypothecated by the counterpart | 428 | 314 | ||
Corporate debt securities | ||||
Investments | ||||
Amortized Cost | 8,682 | 8,447 | ||
Gross Unrealized Gains | 665 | 1,238 | ||
Gross Unrealized Losses | (289) | (47) | ||
Allowance for Credit Losses | 0 | 0 | 0 | (10) |
Fair Value | 9,058 | 9,638 | ||
Residential mortgage backed securities | ||||
Investments | ||||
Amortized Cost | 2,475 | 2,226 | ||
Gross Unrealized Gains | 9 | 36 | ||
Gross Unrealized Losses | (97) | (12) | ||
Allowance for Credit Losses | 0 | 0 | ||
Fair Value | 2,387 | 2,250 | ||
Commercial mortgage backed securities | ||||
Investments | ||||
Amortized Cost | 2,807 | 2,615 | ||
Gross Unrealized Gains | 2 | 56 | ||
Gross Unrealized Losses | (98) | (15) | ||
Allowance for Credit Losses | 0 | 0 | ||
Fair Value | 2,711 | 2,656 | ||
State and municipal obligations | ||||
Investments | ||||
Amortized Cost | 831 | 832 | ||
Gross Unrealized Gains | 163 | 244 | ||
Gross Unrealized Losses | (8) | (1) | ||
Allowance for Credit Losses | (1) | (1) | $ 0 | $ 0 |
Fair Value | 985 | 1,074 | ||
Asset backed securities | ||||
Investments | ||||
Amortized Cost | 513 | 517 | ||
Gross Unrealized Gains | 12 | 22 | ||
Gross Unrealized Losses | (9) | (2) | ||
Allowance for Credit Losses | 0 | 0 | ||
Fair Value | 516 | 537 | ||
Foreign government bonds and obligations | ||||
Investments | ||||
Amortized Cost | 74 | 80 | ||
Gross Unrealized Gains | 2 | 4 | ||
Gross Unrealized Losses | (2) | (1) | ||
Allowance for Credit Losses | 0 | 0 | ||
Fair Value | 74 | 83 | ||
U.S. government and agency obligations | ||||
Investments | ||||
Amortized Cost | 1 | 1 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Allowance for Credit Losses | 0 | 0 | ||
Fair Value | $ 1 | $ 1 |
Investments - Summary of Fixed
Investments - Summary of Fixed Maturity Securities by Rating and Concentrations of Risk (Details) - RiverSource Life $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($)issuer | Dec. 31, 2021USD ($)issuer | |
Investments | ||
Fixed maturity securities rated internally | $ 365 | $ 359 |
Amortized Cost | 15,383 | 14,718 |
Fair Value | 15,732 | 16,239 |
Fixed maturities | ||
Investments | ||
Amortized Cost | 15,383 | 14,718 |
AAA | ||
Investments | ||
Amortized Cost | 5,500 | 5,031 |
Fair Value | 5,318 | 5,107 |
AA | ||
Investments | ||
Amortized Cost | 726 | 757 |
Fair Value | 840 | 932 |
A | ||
Investments | ||
Amortized Cost | 1,688 | 1,662 |
Fair Value | 1,893 | 2,013 |
BBB | ||
Investments | ||
Amortized Cost | 6,694 | 6,293 |
Fair Value | 6,890 | 7,063 |
Below investment grade | ||
Investments | ||
Amortized Cost | 775 | 975 |
Fair Value | $ 791 | $ 1,124 |
Investment concentration risk | Credit concentration risk | Fixed maturities | ||
Investments | ||
Percentage of total | 85.00% | 85.00% |
Fixed maturity securities | Credit concentration risk | ||
Investments | ||
Percentage of total | 100.00% | 100.00% |
Fixed maturity securities | Credit concentration risk | AAA | ||
Investments | ||
Percentage of total | 34.00% | 31.00% |
Fixed maturity securities | Credit concentration risk | AA | ||
Investments | ||
Percentage of total | 5.00% | 6.00% |
Fixed maturity securities | Credit concentration risk | A | ||
Investments | ||
Percentage of total | 12.00% | 12.00% |
Fixed maturity securities | Credit concentration risk | BBB | ||
Investments | ||
Percentage of total | 44.00% | 44.00% |
Fixed maturity securities | Credit concentration risk | Below investment grade | ||
Investments | ||
Percentage of total | 5.00% | 7.00% |
Fixed maturity securities | Credit concentration risk | GNMA, FNMA and FHLMC mortgage backed securities | AAA | ||
Investments | ||
Percentage of total | 40.00% | 40.00% |
Shareholders' equity | Investment concentration risk | ||
Investments | ||
Number of issuers greater than 10% of equity | issuer | 15 | 5 |
Issuers greater than 10% of equity | $ 2,600 | $ 1,200 |
Shareholders' equity | Investment concentration risk | Maximum | ||
Investments | ||
Percentage of total | 19.00% | 16.00% |
Shareholders' equity | Investment concentration risk | Minimum | ||
Investments | ||
Percentage of total | 10.00% | 10.00% |
Investments - Available-for Sal
Investments - Available-for Sale Securities in Continuous Unrealized Loss Position (Details) - RiverSource Life $ in Millions | Mar. 31, 2022USD ($)position | Dec. 31, 2021USD ($)position |
Number of Securities | ||
Less than 12 months | position | 577 | 252 |
12 months or more | position | 73 | 25 |
Total | position | 650 | 277 |
Fair Value | ||
Less than 12 months | $ 7,296 | $ 4,138 |
12 months or more | 773 | 99 |
Total | 8,069 | 4,237 |
Unrealized Losses | ||
Less than 12 months | (407) | (72) |
12 months or more | (96) | (6) |
Total | $ (503) | $ (78) |
Available -for-Sale Securities with gross unrealized losses considered investment grade (as a percent) | 90.00% | 92.00% |
Corporate debt securities | ||
Number of Securities | ||
Less than 12 months | position | 216 | 102 |
12 months or more | position | 40 | 14 |
Total | position | 256 | 116 |
Fair Value | ||
Less than 12 months | $ 2,988 | $ 2,007 |
12 months or more | 441 | 81 |
Total | 3,429 | 2,088 |
Unrealized Losses | ||
Less than 12 months | (226) | (42) |
12 months or more | (63) | (5) |
Total | $ (289) | $ (47) |
Residential mortgage backed securities | ||
Number of Securities | ||
Less than 12 months | position | 113 | 55 |
12 months or more | position | 9 | 2 |
Total | position | 122 | 57 |
Fair Value | ||
Less than 12 months | $ 1,565 | $ 1,162 |
12 months or more | 167 | 1 |
Total | 1,732 | 1,163 |
Unrealized Losses | ||
Less than 12 months | (80) | (12) |
12 months or more | (17) | 0 |
Total | $ (97) | $ (12) |
Commercial mortgage backed securities | ||
Number of Securities | ||
Less than 12 months | position | 180 | 60 |
12 months or more | position | 14 | 3 |
Total | position | 194 | 63 |
Fair Value | ||
Less than 12 months | $ 2,216 | $ 809 |
12 months or more | 154 | 13 |
Total | 2,370 | 822 |
Unrealized Losses | ||
Less than 12 months | (84) | (15) |
12 months or more | (14) | 0 |
Total | $ (98) | $ (15) |
State and municipal obligations | ||
Number of Securities | ||
Less than 12 months | position | 47 | 25 |
12 months or more | position | 1 | 0 |
Total | position | 48 | 25 |
Fair Value | ||
Less than 12 months | $ 117 | $ 63 |
12 months or more | 4 | 0 |
Total | 121 | 63 |
Unrealized Losses | ||
Less than 12 months | (7) | (1) |
12 months or more | (1) | 0 |
Total | $ (8) | $ (1) |
Asset backed securities | ||
Number of Securities | ||
Less than 12 months | position | 15 | 5 |
12 months or more | position | 0 | 0 |
Total | position | 15 | 5 |
Fair Value | ||
Less than 12 months | $ 388 | $ 91 |
12 months or more | 0 | 0 |
Total | 388 | 91 |
Unrealized Losses | ||
Less than 12 months | (9) | (2) |
12 months or more | 0 | 0 |
Total | $ (9) | $ (2) |
Foreign government bonds and obligations | ||
Number of Securities | ||
Less than 12 months | position | 6 | 5 |
12 months or more | position | 9 | 6 |
Total | position | 15 | 11 |
Fair Value | ||
Less than 12 months | $ 22 | $ 6 |
12 months or more | 7 | 4 |
Total | 29 | 10 |
Unrealized Losses | ||
Less than 12 months | (1) | 0 |
12 months or more | (1) | (1) |
Total | $ (2) | $ (1) |
Investments - Rollforward of Al
Investments - Rollforward of Allowance for Credit Losses (Details) - RiverSource Life - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Rollforward of available-for-Sale securities allowance for credit losses | ||
Beginning balance | $ 1 | $ 10 |
Charge-offs | 0 | (10) |
Ending balance | 1 | 0 |
Corporate debt securities | ||
Rollforward of available-for-Sale securities allowance for credit losses | ||
Beginning balance | 0 | 10 |
Charge-offs | 0 | (10) |
Ending balance | 0 | 0 |
State and municipal obligations | ||
Rollforward of available-for-Sale securities allowance for credit losses | ||
Beginning balance | 1 | 0 |
Charge-offs | 0 | 0 |
Ending balance | $ 1 | $ 0 |
Investments - Net Realized Gain
Investments - Net Realized Gains and Losses on Available-for-Sale Securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net realized gains and losses on Available-for-Sale securities, | ||
Credit losses | $ 0 | $ 0 |
RiverSource Life | ||
Net realized gains and losses on Available-for-Sale securities, | ||
Gross realized investment gains | 20 | 49 |
Gross realized investment losses | (3) | 0 |
Total | $ 17 | $ 49 |
Investments - Available-for-S_2
Investments - Available-for-Sale Securities by Contractual Maturity (Details) - RiverSource Life - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due within one year | $ 549 | |
Due after one year through five years | 1,829 | |
Due after five years through 10 years | 3,563 | |
Due after 10 years | 3,647 | |
Total having single maturity dates | 9,588 | |
Amortized Cost | 15,383 | $ 14,718 |
Fair Value | ||
Due within one year | 552 | |
Due after one year through five years | 1,849 | |
Due after five years through 10 years | 3,382 | |
Due after 10 years | 4,335 | |
Total having single maturity dates | 10,118 | |
Fair Value | 15,732 | 16,239 |
Residential mortgage backed securities | ||
Amortized Cost | ||
Without single maturity dates | 2,475 | |
Amortized Cost | 2,475 | 2,226 |
Fair Value | ||
Without single maturity dates | 2,387 | |
Fair Value | 2,387 | 2,250 |
Commercial mortgage backed securities | ||
Amortized Cost | ||
Without single maturity dates | 2,807 | |
Amortized Cost | 2,807 | 2,615 |
Fair Value | ||
Without single maturity dates | 2,711 | |
Fair Value | 2,711 | 2,656 |
Asset backed securities | ||
Amortized Cost | ||
Without single maturity dates | 513 | |
Amortized Cost | 513 | 517 |
Fair Value | ||
Without single maturity dates | 516 | |
Fair Value | $ 516 | $ 537 |
Investments - Summary of Net In
Investments - Summary of Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net investment income | ||
Fixed maturities | $ 136 | $ 189 |
Mortgage loans | 19 | 28 |
Other investments | 9 | 35 |
Gross investment income | 164 | 252 |
Less: investment expenses | 5 | 5 |
Total | $ 159 | $ 247 |
Financing Receivables - Allowan
Financing Receivables - Allowance for Credit Losses - (Details) - Commercial Loans - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Rollforward of allowance for credit losses | |||
Beginning balance | $ 12 | $ 35 | |
Provisions | (1) | (2) | |
Ending balance | 11 | $ 33 | |
Accrued investment income | |||
Financing Receivables | |||
Accrued interest on loans | $ 10 | $ 11 |
Financing Receivables - Purchas
Financing Receivables - Purchases, Sales and Nonperforming (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Nonperforming | |||
Financing Receivables | |||
Loans | $ 0 | $ 0 | |
Deteriorated credit quality | |||
Financing Receivables | |||
Loans purchased | 0 | ||
Commercial Loans | Syndicated loans | |||
Financing Receivables | |||
Loans purchased | 0 | $ 9 | |
Loans sold | 0 | $ 3 | |
Loans | $ 43 | $ 43 |
Financing Receivables - General
Financing Receivables - General Credit Quality Information - Commercial Mortgage Loans (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Commercial Loans | Commercial mortgage loans | ||
Financing Receivables | ||
Loans | $ 1,823 | $ 1,800 |
Commercial Loans | Commercial mortgage loans | Past due | ||
Financing Receivables | ||
Loans | $ 0 | $ 0 |
Total commercial mortgage loans | Credit concentration risk | Commercial Loans | Commercial mortgage loans | ||
Financing Receivables | ||
Percentage of total | 100.00% | 100.00% |
Total commercial mortgage loans | Credit concentration risk | Highest credit risk rating | Maximum | ||
Financing Receivables | ||
Percentage of total | 1.00% | 1.00% |
Financing Receivables - Credit
Financing Receivables - Credit Quality - Commercial Mortgage Loans by LTV Ratio and Year of Origination (Details) - Commercial Loans - Commercial mortgage loans - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Amortized cost basis by year of origination and loan-to-value ratio | ||
Year 1 | $ 42 | $ 193 |
Year 2 | 191 | 116 |
Year 3 | 115 | 209 |
Year 4 | 160 | 101 |
Year 5 | 155 | 154 |
Prior | 1,160 | 1,027 |
Total amortized cost basis | 1,823 | 1,800 |
Greater than 100 Percent | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 20 |
Year 4 | 11 | 10 |
Year 5 | 10 | 0 |
Prior | 15 | 29 |
Total amortized cost basis | 36 | 59 |
80 to 100 Percent | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Year 1 | 0 | 9 |
Year 2 | 9 | 2 |
Year 3 | 0 | 9 |
Year 4 | 26 | 2 |
Year 5 | 2 | 0 |
Prior | 39 | 29 |
Total amortized cost basis | 76 | 51 |
60 to 80 Percent | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Year 1 | 21 | 141 |
Year 2 | 97 | 76 |
Year 3 | 62 | 59 |
Year 4 | 48 | 15 |
Year 5 | 14 | 58 |
Prior | 159 | 133 |
Total amortized cost basis | 401 | 482 |
40 to 60 Percent | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Year 1 | 17 | 37 |
Year 2 | 76 | 30 |
Year 3 | 27 | 75 |
Year 4 | 75 | 74 |
Year 5 | 64 | 49 |
Prior | 465 | 393 |
Total amortized cost basis | 724 | 658 |
Less than 40 Percent | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Year 1 | 4 | 6 |
Year 2 | 9 | 8 |
Year 3 | 26 | 46 |
Year 4 | 0 | 0 |
Year 5 | 65 | 47 |
Prior | 482 | 443 |
Total amortized cost basis | $ 586 | $ 550 |
Financing Receivables - Credi_2
Financing Receivables - Credit Quality - Commercial Mortgage Loans by Region (Details) - Commercial Loans - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Financing receivables - credit quality information | ||||
Less: allowance for credit losses | $ 11 | $ 12 | $ 33 | $ 35 |
Commercial mortgage loans | ||||
Financing receivables - credit quality information | ||||
Loans | 1,823 | 1,800 | ||
Less: allowance for credit losses | 11 | 12 | ||
Total loans | 1,812 | 1,788 | ||
Commercial mortgage loans | East North Central | ||||
Financing receivables - credit quality information | ||||
Loans | 197 | 183 | ||
Commercial mortgage loans | East South Central | ||||
Financing receivables - credit quality information | ||||
Loans | 54 | 54 | ||
Commercial mortgage loans | Middle Atlantic | ||||
Financing receivables - credit quality information | ||||
Loans | 106 | 107 | ||
Commercial mortgage loans | Mountain | ||||
Financing receivables - credit quality information | ||||
Loans | 110 | 111 | ||
Commercial mortgage loans | New England | ||||
Financing receivables - credit quality information | ||||
Loans | 20 | 21 | ||
Commercial mortgage loans | Pacific | ||||
Financing receivables - credit quality information | ||||
Loans | 599 | 589 | ||
Commercial mortgage loans | South Atlantic | ||||
Financing receivables - credit quality information | ||||
Loans | 484 | 477 | ||
Commercial mortgage loans | West North Central | ||||
Financing receivables - credit quality information | ||||
Loans | 134 | 136 | ||
Commercial mortgage loans | West South Central | ||||
Financing receivables - credit quality information | ||||
Loans | $ 119 | $ 122 | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 100.00% | 100.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | East North Central | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 11.00% | 10.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | East South Central | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 3.00% | 3.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Middle Atlantic | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 6.00% | 6.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Mountain | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 6.00% | 6.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | New England | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 1.00% | 1.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Pacific | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 33.00% | 33.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | South Atlantic | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 26.00% | 26.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | West North Central | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 7.00% | 8.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | West South Central | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 7.00% | 7.00% |
Financing Receivables - Credi_3
Financing Receivables - Credit Quality - Commercial Mortgage Loans by Property Type (Details) - Commercial Loans - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Financing receivables - credit quality information | ||||
Less: allowance for credit losses | $ 11 | $ 12 | $ 33 | $ 35 |
Commercial mortgage loans | ||||
Financing receivables - credit quality information | ||||
Loans | 1,823 | 1,800 | ||
Less: allowance for credit losses | 11 | 12 | ||
Total loans | 1,812 | 1,788 | ||
Commercial mortgage loans | Apartments | ||||
Financing receivables - credit quality information | ||||
Loans | 480 | 464 | ||
Commercial mortgage loans | Hotel | ||||
Financing receivables - credit quality information | ||||
Loans | 14 | 15 | ||
Commercial mortgage loans | Industrial | ||||
Financing receivables - credit quality information | ||||
Loans | 296 | 293 | ||
Commercial mortgage loans | Mixed use | ||||
Financing receivables - credit quality information | ||||
Loans | 56 | 57 | ||
Commercial mortgage loans | Office | ||||
Financing receivables - credit quality information | ||||
Loans | 251 | 254 | ||
Commercial mortgage loans | Retail | ||||
Financing receivables - credit quality information | ||||
Loans | 592 | 589 | ||
Commercial mortgage loans | Other | ||||
Financing receivables - credit quality information | ||||
Loans | $ 134 | $ 128 | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 100.00% | 100.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Apartments | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 26.00% | 26.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Hotel | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 1.00% | 1.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Industrial | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 16.00% | 16.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Mixed use | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 3.00% | 3.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Office | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 14.00% | 14.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Retail | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 33.00% | 33.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Other | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 7.00% | 7.00% |
Financing Receivables - Credi_4
Financing Receivables - Credit Quality Information - Syndicated Loans (Details) - Commercial Loans - Syndicated loans - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Amortized cost basis by year of origination and loan-to-value ratio | ||
Year 1 | $ 0 | $ 15 |
Year 2 | 15 | 0 |
Year 3 | 0 | 4 |
Year 4 | 4 | 4 |
Year 5 | 4 | 11 |
Prior | 20 | 9 |
Total amortized cost basis | 43 | 43 |
Risk 5 | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total amortized cost basis | 0 | 0 |
Risk 4 | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total amortized cost basis | 0 | 0 |
Risk 3 | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Year 1 | 0 | 0 |
Year 2 | 3 | 0 |
Year 3 | 0 | 0 |
Year 4 | 3 | 0 |
Year 5 | 0 | 0 |
Prior | 2 | 1 |
Total amortized cost basis | 8 | 1 |
Risk 2 | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Year 1 | 0 | 11 |
Year 2 | 9 | 0 |
Year 3 | 0 | 4 |
Year 4 | 1 | 1 |
Year 5 | 1 | 8 |
Prior | 10 | 4 |
Total amortized cost basis | 21 | 28 |
Risk 1 | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Year 1 | 0 | 4 |
Year 2 | 3 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 3 |
Year 5 | 3 | 3 |
Prior | 8 | 4 |
Total amortized cost basis | 14 | 14 |
Past due | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Total amortized cost basis | $ 0 | $ 0 |
Financing Receivables -Credit Q
Financing Receivables -Credit Quality Information - Policy Loans and Deposit Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Receivable | ||
Reinsurance deposit receivable | $ 7,800 | $ 7,900 |
Deposit Receivable | ||
Receivable | ||
Allowance for credit losses | 0 | 0 |
Consumer | Policy Loans | ||
Financing Receivables | ||
Allowance for credit losses | $ 0 | $ 0 |
Financing Receivables - Trouble
Financing Receivables - Troubled Debt Restructurings (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)loan | Mar. 31, 2021loan | |
Troubled Debt Restructurings | ||
Loans accounted for as troubled debt restructuring | loan | 0 | 0 |
Commitments to lend additional funds to borrowers whose loans have been restructured | $ | $ 0 |
Deferred Acquisition Costs an_3
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Balances of and changes in DAC | ||
Beginning balance | $ 2,757 | $ 2,508 |
Capitalization of acquisition costs | 51 | 62 |
Amortization | (92) | (2) |
Impact of change in net unrealized (gains) losses on securities | 189 | 93 |
Ending balance | 2,905 | 2,661 |
Balances of and changes in DSIC | ||
Beginning balance | 187 | 187 |
Amortization | (8) | (3) |
Impact of change in net unrealized (gains) losses on securities | 6 | 4 |
Ending balance | $ 185 | $ 188 |
Policyholder Account Balances_3
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities - Balances by Product (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Policyholder account balances, future policy benefits and claims | ||
Policyholder account balances | $ 24,070 | $ 23,747 |
Future policy benefits | 10,896 | 11,752 |
Policy claims and other policyholders’ funds | 253 | 245 |
Policyholder account balances, future policy benefits and claims | 35,219 | 35,744 |
Fixed annuities | ||
Policyholder account balances, future policy benefits and claims | ||
Policyholder account balances | 8,002 | 8,117 |
Variable annuity fixed sub-accounts | ||
Policyholder account balances, future policy benefits and claims | ||
Policyholder account balances | 4,951 | 4,990 |
UL/VUL insurance | ||
Policyholder account balances, future policy benefits and claims | ||
Policyholder account balances | 3,092 | 3,103 |
IUL insurance | ||
Policyholder account balances, future policy benefits and claims | ||
Policyholder account balances | 2,587 | 2,534 |
Structured variable annuities | ||
Policyholder account balances, future policy benefits and claims | ||
Policyholder account balances | 4,885 | 4,440 |
Other life Insurance | ||
Policyholder account balances, future policy benefits and claims | ||
Policyholder account balances | 553 | 563 |
Variable annuity GMWB | ||
Policyholder account balances, future policy benefits and claims | ||
Future policy benefits | 1,750 | 2,336 |
Variable annuity GMAB | ||
Policyholder account balances, future policy benefits and claims | ||
Future policy benefits | (17) | (23) |
Other annuity liabilities | ||
Policyholder account balances, future policy benefits and claims | ||
Future policy benefits | 96 | 67 |
Fixed annuity life contingent liabilities | ||
Policyholder account balances, future policy benefits and claims | ||
Future policy benefits | 1,254 | 1,278 |
Life and disability income insurance | ||
Policyholder account balances, future policy benefits and claims | ||
Future policy benefits | 1,125 | 1,139 |
Long term care insurance | ||
Policyholder account balances, future policy benefits and claims | ||
Future policy benefits | 5,485 | 5,664 |
UL/VUL and other life insurance additional liabilities | ||
Policyholder account balances, future policy benefits and claims | ||
Future policy benefits | $ 1,203 | $ 1,291 |
Policyholder Account Balances_4
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities - Components of Separate Account Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Separate account liabilities | ||
Variable annuity | $ 75,921 | $ 82,862 |
VUL insurance | 8,719 | 9,343 |
Other insurance | 31 | 33 |
Total | $ 84,671 | $ 92,238 |
Variable Annuity and Insuranc_3
Variable Annuity and Insurance Guarantees - VA Guarantees (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
GMDB | ||
Information related to variable annuity guarantees | ||
Total contract value | $ 80,320 | $ 87,246 |
Contract value in separate accounts | 75,399 | 82,287 |
Net amount at risk | $ 496 | $ 64 |
Weighted average attained age | 69 years | 69 years |
GMDB | Return of premium | ||
Information related to variable annuity guarantees | ||
Total contract value | $ 64,309 | $ 70,020 |
Contract value in separate accounts | 62,458 | 68,145 |
Net amount at risk | $ 122 | $ 6 |
Weighted average attained age | 69 years | 69 years |
GMDB | Five/six-year reset | ||
Information related to variable annuity guarantees | ||
Total contract value | $ 7,814 | $ 8,309 |
Contract value in separate accounts | 5,125 | 5,612 |
Net amount at risk | $ 40 | $ 6 |
Weighted average attained age | 69 years | 68 years |
GMDB | One-year ratchet | ||
Information related to variable annuity guarantees | ||
Total contract value | $ 5,689 | $ 6,177 |
Contract value in separate accounts | 5,375 | 5,858 |
Net amount at risk | $ 222 | $ 13 |
Weighted average attained age | 72 years | 71 years |
GMDB | Five-year ratchet | ||
Information related to variable annuity guarantees | ||
Total contract value | $ 1,318 | $ 1,438 |
Contract value in separate accounts | 1,266 | 1,386 |
Net amount at risk | $ 13 | $ 1 |
Weighted average attained age | 68 years | 68 years |
GMDB | Other | ||
Information related to variable annuity guarantees | ||
Total contract value | $ 1,190 | $ 1,302 |
Contract value in separate accounts | 1,175 | 1,286 |
Net amount at risk | $ 99 | $ 38 |
Weighted average attained age | 74 years | 74 years |
GGU death benefit | ||
Information related to variable annuity guarantees | ||
Total contract value | $ 1,173 | $ 1,260 |
Contract value in separate accounts | 1,112 | 1,198 |
Net amount at risk | $ 164 | $ 184 |
Weighted average attained age | 72 years | 72 years |
GMIB | ||
Information related to variable annuity guarantees | ||
Total contract value | $ 166 | $ 184 |
Contract value in separate accounts | 153 | 170 |
Net amount at risk | $ 5 | $ 4 |
Weighted average attained age | 72 years | 71 years |
GMWB | ||
Information related to variable annuity guarantees | ||
Total contract value | $ 49,571 | $ 54,287 |
Contract value in separate accounts | 49,534 | 54,229 |
Net amount at risk | $ 577 | $ 188 |
Weighted average attained age | 69 years | 69 years |
GMWB | GMWB standard benefit | ||
Information related to variable annuity guarantees | ||
Total contract value | $ 1,724 | $ 1,900 |
Contract value in separate accounts | 1,719 | 1,895 |
Net amount at risk | $ 2 | $ 1 |
Weighted average attained age | 75 years | 75 years |
GMWB | GMWB for life | ||
Information related to variable annuity guarantees | ||
Total contract value | $ 47,847 | $ 52,387 |
Contract value in separate accounts | 47,815 | 52,334 |
Net amount at risk | $ 575 | $ 187 |
Weighted average attained age | 69 years | 69 years |
GMAB | ||
Information related to variable annuity guarantees | ||
Total contract value | $ 1,771 | $ 2,005 |
Contract value in separate accounts | 1,771 | 2,005 |
Net amount at risk | $ 3 | $ 0 |
Weighted average attained age | 62 years | 62 years |
Variable Annuity and Insuranc_4
Variable Annuity and Insurance Guarantees - UL Secondary Guarantees (Details) - UL secondary guarantees - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Insurance guarantees | ||
Net amount at risk | $ 6,563 | $ 6,564 |
Weighted average attained age | 68 years | 68 years |
Variable Annuity and Insuranc_5
Variable Annuity and Insurance Guarantees - Liability Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
GMDB & GGU | ||
Changes in additional liabilities for variable annuity and insurance guarantees | ||
Beginning Balance | $ 36 | $ 24 |
Incurred claims | 0 | 3 |
Paid claims | (3) | (1) |
Ending Balance | 33 | 26 |
GMIB | ||
Changes in additional liabilities for variable annuity and insurance guarantees | ||
Beginning Balance | 5 | 6 |
Incurred claims | 0 | 0 |
Paid claims | 0 | 0 |
Ending Balance | 5 | 6 |
GMWB | ||
Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees | ||
Beginning balance | 2,336 | 3,049 |
Incurred claims | (586) | (1,570) |
Paid claims | 0 | 0 |
Ending balance | 1,750 | 1,479 |
GMAB | ||
Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees | ||
Beginning balance | (23) | 1 |
Incurred claims | 6 | (23) |
Paid claims | 0 | 0 |
Ending balance | (17) | (22) |
UL | ||
Changes in additional liabilities for variable annuity and insurance guarantees | ||
Beginning Balance | 1,020 | 916 |
Incurred claims | 31 | 32 |
Paid claims | (9) | (8) |
Ending Balance | $ 1,042 | $ 940 |
Variable Annuity and Insuranc_6
Variable Annuity and Insurance Guarantees - Separate Account Balances by Type (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Mutual funds | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | $ 75,589 | $ 82,497 |
Equity | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | 46,511 | 49,183 |
Bond | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | 21,640 | 24,998 |
Other | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | $ 7,438 | $ 8,316 |
Debt - Short-term Borrowings (D
Debt - Short-term Borrowings (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Short-term borrowings | ||
Amount of FHLB liability | $ 200 | $ 200 |
RiverSource Life | ||
Short-term borrowings | ||
Amount of FHLB liability | $ 200 | $ 200 |
RiverSource Life | Weighted average | ||
Short-term borrowings | ||
Interest rate on FHLB borrowings (as a percent) | 0.60% | 0.30% |
RiverSource Life | Commercial mortgage backed securities | ||
Short-term borrowings | ||
Securities pledged as collateral for FHLB borrowings | $ 1,000 | $ 1,000 |
RiverSource Life | Federal Home Loan Bank borrowings | Maximum | ||
Short-term borrowings | ||
Term | 3 months | 3 months |
Debt - Long-Term Debt (Details)
Debt - Long-Term Debt (Details) - Ameriprise Financial - Unsecured surplus note due December 31, 2050 - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt | ||
Long-term debt | $ 500 | $ 500 |
Interest rate (as a percent) | 3.50% |
Fair Values of Assets and Lia_3
Fair Values of Assets and Liabilities - Recurring Basis (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Assets | ||
Separate account assets at NAV | $ 84,671 | $ 92,238 |
GMWB and GMAB embedded derivatives | ||
Assets | ||
Receivables: embedded derivatives | 204 | 133 |
Liabilities | ||
Liabilities embedded derivatives | 1,000 | 1,600 |
RiverSource Life | ||
Assets | ||
Total Available-for-Sale securities | 15,732 | 16,239 |
RiverSource Life | Corporate debt securities | ||
Assets | ||
Total Available-for-Sale securities | 9,058 | 9,638 |
RiverSource Life | Residential mortgage backed securities | ||
Assets | ||
Total Available-for-Sale securities | 2,387 | 2,250 |
RiverSource Life | Commercial mortgage backed securities | ||
Assets | ||
Total Available-for-Sale securities | 2,711 | 2,656 |
RiverSource Life | State and municipal obligations | ||
Assets | ||
Total Available-for-Sale securities | 985 | 1,074 |
RiverSource Life | Asset backed securities | ||
Assets | ||
Total Available-for-Sale securities | 516 | 537 |
RiverSource Life | Foreign government bonds and obligations | ||
Assets | ||
Total Available-for-Sale securities | 74 | 83 |
RiverSource Life | U.S. government and agency obligations | ||
Assets | ||
Total Available-for-Sale securities | 1 | 1 |
RiverSource Life | Policyholder account balances, future policy benefits and claims embedded derivatives | ||
Liabilities | ||
Cumulative increase (decrease) in embedded derivatives of adjustment for nonperformance risk | (607) | (598) |
RiverSource Life | Level 3 | Corporate debt securities | ||
Assets | ||
Total Available-for-Sale securities | 487 | 496 |
RiverSource Life | Level 3 | Asset backed securities | ||
Assets | ||
Total Available-for-Sale securities | 263 | 291 |
RiverSource Life | Level 3 | Fixed deferred indexed annuities ceded embedded derivatives | ||
Assets | ||
Receivables: embedded derivatives | 55 | 59 |
RiverSource Life | Level 3 | Fixed deferred indexed annuity embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives | 52 | 56 |
RiverSource Life | Level 3 | IUL embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives | 848 | 905 |
RiverSource Life | Level 3 | GMWB and GMAB embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives, net | 828 | 1,486 |
RiverSource Life | Level 3 | Structured variable annuity embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives | 280 | 406 |
RiverSource Life | Recurring basis | ||
Assets | ||
Total Available-for-Sale securities | 15,732 | 16,239 |
Cash equivalents | 2,508 | 3,176 |
Other assets: derivative contracts | 4,625 | 5,517 |
Separate account assets at NAV | 84,671 | 92,238 |
Total assets at fair value | 107,591 | 117,229 |
Liabilities | ||
Other liabilities: derivative contracts | 4,076 | 4,180 |
Total liabilities at fair value | 6,089 | 7,038 |
RiverSource Life | Recurring basis | Corporate debt securities | ||
Assets | ||
Total Available-for-Sale securities | 9,058 | 9,638 |
RiverSource Life | Recurring basis | Residential mortgage backed securities | ||
Assets | ||
Total Available-for-Sale securities | 2,387 | 2,250 |
RiverSource Life | Recurring basis | Commercial mortgage backed securities | ||
Assets | ||
Total Available-for-Sale securities | 2,711 | 2,656 |
RiverSource Life | Recurring basis | State and municipal obligations | ||
Assets | ||
Total Available-for-Sale securities | 985 | 1,074 |
RiverSource Life | Recurring basis | Asset backed securities | ||
Assets | ||
Total Available-for-Sale securities | 516 | 537 |
RiverSource Life | Recurring basis | Foreign government bonds and obligations | ||
Assets | ||
Total Available-for-Sale securities | 74 | 83 |
RiverSource Life | Recurring basis | U.S. government and agency obligations | ||
Assets | ||
Total Available-for-Sale securities | 1 | 1 |
RiverSource Life | Recurring basis | Fixed deferred indexed annuities ceded embedded derivatives | ||
Assets | ||
Receivables: embedded derivatives | 55 | 59 |
RiverSource Life | Recurring basis | Policyholder account balances, future policy benefits and claims embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives, net | 2,013 | 2,858 |
RiverSource Life | Recurring basis | Fixed deferred indexed annuity embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives | 57 | 61 |
RiverSource Life | Recurring basis | IUL embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives | 848 | 905 |
RiverSource Life | Recurring basis | GMWB and GMAB embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives, net | 828 | 1,486 |
RiverSource Life | Recurring basis | Structured variable annuity embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives | 280 | 406 |
RiverSource Life | Recurring basis | Interest rate derivative contracts | ||
Assets | ||
Other assets: derivative contracts | 739 | 1,252 |
Liabilities | ||
Other liabilities: derivative contracts | 315 | 468 |
RiverSource Life | Recurring basis | Equity derivative contracts | ||
Assets | ||
Other assets: derivative contracts | 3,815 | 4,238 |
Liabilities | ||
Other liabilities: derivative contracts | 3,758 | 3,711 |
RiverSource Life | Recurring basis | Foreign exchange derivative contracts | ||
Assets | ||
Other assets: derivative contracts | 26 | 18 |
Liabilities | ||
Other liabilities: derivative contracts | 3 | 1 |
RiverSource Life | Recurring basis | Credit derivative contracts | ||
Assets | ||
Other assets: derivative contracts | 45 | 9 |
RiverSource Life | Recurring basis | Level 1 | ||
Assets | ||
Total Available-for-Sale securities | 1 | 1 |
Cash equivalents | 1,333 | 1,985 |
Other assets: derivative contracts | 153 | 160 |
Total assets at fair value | 1,487 | 2,146 |
Liabilities | ||
Other liabilities: derivative contracts | 262 | 103 |
Total liabilities at fair value | 262 | 103 |
RiverSource Life | Recurring basis | Level 1 | Corporate debt securities | ||
Assets | ||
Total Available-for-Sale securities | 0 | 0 |
RiverSource Life | Recurring basis | Level 1 | Residential mortgage backed securities | ||
Assets | ||
Total Available-for-Sale securities | 0 | 0 |
RiverSource Life | Recurring basis | Level 1 | Commercial mortgage backed securities | ||
Assets | ||
Total Available-for-Sale securities | 0 | 0 |
RiverSource Life | Recurring basis | Level 1 | State and municipal obligations | ||
Assets | ||
Total Available-for-Sale securities | 0 | 0 |
RiverSource Life | Recurring basis | Level 1 | Asset backed securities | ||
Assets | ||
Total Available-for-Sale securities | 0 | 0 |
RiverSource Life | Recurring basis | Level 1 | Foreign government bonds and obligations | ||
Assets | ||
Total Available-for-Sale securities | 0 | 0 |
RiverSource Life | Recurring basis | Level 1 | U.S. government and agency obligations | ||
Assets | ||
Total Available-for-Sale securities | 1 | 1 |
RiverSource Life | Recurring basis | Level 1 | Fixed deferred indexed annuities ceded embedded derivatives | ||
Assets | ||
Receivables: embedded derivatives | 0 | 0 |
RiverSource Life | Recurring basis | Level 1 | Policyholder account balances, future policy benefits and claims embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives, net | 0 | 0 |
RiverSource Life | Recurring basis | Level 1 | Fixed deferred indexed annuity embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives | 0 | 0 |
RiverSource Life | Recurring basis | Level 1 | IUL embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives | 0 | 0 |
RiverSource Life | Recurring basis | Level 1 | GMWB and GMAB embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives, net | 0 | 0 |
RiverSource Life | Recurring basis | Level 1 | Structured variable annuity embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives | 0 | 0 |
RiverSource Life | Recurring basis | Level 1 | Interest rate derivative contracts | ||
Assets | ||
Other assets: derivative contracts | 3 | 1 |
Liabilities | ||
Other liabilities: derivative contracts | 7 | 1 |
RiverSource Life | Recurring basis | Level 1 | Equity derivative contracts | ||
Assets | ||
Other assets: derivative contracts | 148 | 158 |
Liabilities | ||
Other liabilities: derivative contracts | 255 | 101 |
RiverSource Life | Recurring basis | Level 1 | Foreign exchange derivative contracts | ||
Assets | ||
Other assets: derivative contracts | 2 | 1 |
Liabilities | ||
Other liabilities: derivative contracts | 0 | 1 |
RiverSource Life | Recurring basis | Level 1 | Credit derivative contracts | ||
Assets | ||
Other assets: derivative contracts | 0 | 0 |
RiverSource Life | Recurring basis | Level 2 | ||
Assets | ||
Total Available-for-Sale securities | 14,941 | 15,451 |
Cash equivalents | 1,175 | 1,191 |
Other assets: derivative contracts | 4,472 | 5,357 |
Total assets at fair value | 20,588 | 21,999 |
Liabilities | ||
Other liabilities: derivative contracts | 3,814 | 4,077 |
Total liabilities at fair value | 3,819 | 4,082 |
RiverSource Life | Recurring basis | Level 2 | Corporate debt securities | ||
Assets | ||
Total Available-for-Sale securities | 8,561 | 9,142 |
RiverSource Life | Recurring basis | Level 2 | Residential mortgage backed securities | ||
Assets | ||
Total Available-for-Sale securities | 2,387 | 2,250 |
RiverSource Life | Recurring basis | Level 2 | Commercial mortgage backed securities | ||
Assets | ||
Total Available-for-Sale securities | 2,681 | 2,656 |
RiverSource Life | Recurring basis | Level 2 | State and municipal obligations | ||
Assets | ||
Total Available-for-Sale securities | 985 | 1,074 |
RiverSource Life | Recurring basis | Level 2 | Asset backed securities | ||
Assets | ||
Total Available-for-Sale securities | 253 | 246 |
RiverSource Life | Recurring basis | Level 2 | Foreign government bonds and obligations | ||
Assets | ||
Total Available-for-Sale securities | 74 | 83 |
RiverSource Life | Recurring basis | Level 2 | U.S. government and agency obligations | ||
Assets | ||
Total Available-for-Sale securities | 0 | 0 |
RiverSource Life | Recurring basis | Level 2 | Fixed deferred indexed annuities ceded embedded derivatives | ||
Assets | ||
Receivables: embedded derivatives | 0 | 0 |
RiverSource Life | Recurring basis | Level 2 | Policyholder account balances, future policy benefits and claims embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives, net | 5 | 5 |
RiverSource Life | Recurring basis | Level 2 | Fixed deferred indexed annuity embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives | 5 | 5 |
RiverSource Life | Recurring basis | Level 2 | IUL embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives | 0 | 0 |
RiverSource Life | Recurring basis | Level 2 | GMWB and GMAB embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives, net | 0 | 0 |
RiverSource Life | Recurring basis | Level 2 | Structured variable annuity embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives | 0 | 0 |
RiverSource Life | Recurring basis | Level 2 | Interest rate derivative contracts | ||
Assets | ||
Other assets: derivative contracts | 736 | 1,251 |
Liabilities | ||
Other liabilities: derivative contracts | 308 | 467 |
RiverSource Life | Recurring basis | Level 2 | Equity derivative contracts | ||
Assets | ||
Other assets: derivative contracts | 3,667 | 4,080 |
Liabilities | ||
Other liabilities: derivative contracts | 3,503 | 3,610 |
RiverSource Life | Recurring basis | Level 2 | Foreign exchange derivative contracts | ||
Assets | ||
Other assets: derivative contracts | 24 | 17 |
Liabilities | ||
Other liabilities: derivative contracts | 3 | 0 |
RiverSource Life | Recurring basis | Level 2 | Credit derivative contracts | ||
Assets | ||
Other assets: derivative contracts | 45 | 9 |
RiverSource Life | Recurring basis | Level 3 | ||
Assets | ||
Total Available-for-Sale securities | 790 | 787 |
Cash equivalents | 0 | 0 |
Other assets: derivative contracts | 0 | 0 |
Total assets at fair value | 845 | 846 |
Liabilities | ||
Other liabilities: derivative contracts | 0 | 0 |
Total liabilities at fair value | 2,008 | 2,853 |
RiverSource Life | Recurring basis | Level 3 | Corporate debt securities | ||
Assets | ||
Total Available-for-Sale securities | 497 | 496 |
RiverSource Life | Recurring basis | Level 3 | Residential mortgage backed securities | ||
Assets | ||
Total Available-for-Sale securities | 0 | 0 |
RiverSource Life | Recurring basis | Level 3 | Commercial mortgage backed securities | ||
Assets | ||
Total Available-for-Sale securities | 30 | 0 |
RiverSource Life | Recurring basis | Level 3 | State and municipal obligations | ||
Assets | ||
Total Available-for-Sale securities | 0 | 0 |
RiverSource Life | Recurring basis | Level 3 | Asset backed securities | ||
Assets | ||
Total Available-for-Sale securities | 263 | 291 |
RiverSource Life | Recurring basis | Level 3 | Foreign government bonds and obligations | ||
Assets | ||
Total Available-for-Sale securities | 0 | 0 |
RiverSource Life | Recurring basis | Level 3 | U.S. government and agency obligations | ||
Assets | ||
Total Available-for-Sale securities | 0 | 0 |
RiverSource Life | Recurring basis | Level 3 | Fixed deferred indexed annuities ceded embedded derivatives | ||
Assets | ||
Receivables: embedded derivatives | 55 | 59 |
RiverSource Life | Recurring basis | Level 3 | Policyholder account balances, future policy benefits and claims embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives, net | 2,008 | 2,853 |
RiverSource Life | Recurring basis | Level 3 | Fixed deferred indexed annuity embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives | 52 | 56 |
RiverSource Life | Recurring basis | Level 3 | IUL embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives | 848 | 905 |
RiverSource Life | Recurring basis | Level 3 | GMWB and GMAB embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives, net | 828 | 1,486 |
RiverSource Life | Recurring basis | Level 3 | Structured variable annuity embedded derivatives | ||
Liabilities | ||
Liabilities embedded derivatives | 280 | 406 |
RiverSource Life | Recurring basis | Level 3 | Interest rate derivative contracts | ||
Assets | ||
Other assets: derivative contracts | 0 | 0 |
Liabilities | ||
Other liabilities: derivative contracts | 0 | 0 |
RiverSource Life | Recurring basis | Level 3 | Equity derivative contracts | ||
Assets | ||
Other assets: derivative contracts | 0 | 0 |
Liabilities | ||
Other liabilities: derivative contracts | 0 | 0 |
RiverSource Life | Recurring basis | Level 3 | Foreign exchange derivative contracts | ||
Assets | ||
Other assets: derivative contracts | 0 | 0 |
Liabilities | ||
Other liabilities: derivative contracts | 0 | 0 |
RiverSource Life | Recurring basis | Level 3 | Credit derivative contracts | ||
Assets | ||
Other assets: derivative contracts | $ 0 | $ 0 |
Fair Values of Assets and Lia_4
Fair Values of Assets and Liabilities - Changes in Level 3 Assets (Details) - RiverSource Life - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Available-for-Sale Securities | ||
Summary of changes in Level 3 assets measured at fair value on a recurring basis | ||
Balance, beginning | $ 787 | $ 1,170 |
Total gains (losses) included in net income | 0 | |
Total gains (losses) included in other comprehensive income (loss) | (29) | (2) |
Purchases | 53 | 46 |
Settlements | (21) | (19) |
Balance, ending | 790 | 1,195 |
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at end of period | (29) | (2) |
Corporate debt securities | ||
Summary of changes in Level 3 assets measured at fair value on a recurring basis | ||
Balance, beginning | 496 | 766 |
Total gains (losses) included in net income | 0 | |
Total gains (losses) included in other comprehensive income (loss) | (22) | (5) |
Purchases | 23 | 46 |
Settlements | 0 | 0 |
Balance, ending | 497 | 807 |
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at end of period | (22) | (5) |
Commercial mortgage backed securities | ||
Summary of changes in Level 3 assets measured at fair value on a recurring basis | ||
Balance, beginning | 0 | |
Total gains (losses) included in net income | 0 | |
Total gains (losses) included in other comprehensive income (loss) | 0 | |
Purchases | 30 | |
Settlements | 0 | |
Balance, ending | 30 | |
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at end of period | 0 | |
Residential mortgage backed securities | ||
Summary of changes in Level 3 assets measured at fair value on a recurring basis | ||
Balance, beginning | 9 | |
Total gains (losses) included in other comprehensive income (loss) | 0 | |
Purchases | 0 | |
Settlements | 0 | |
Balance, ending | 9 | |
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at end of period | 0 | |
Asset backed securities | ||
Summary of changes in Level 3 assets measured at fair value on a recurring basis | ||
Balance, beginning | 291 | 395 |
Total gains (losses) included in net income | 0 | |
Total gains (losses) included in other comprehensive income (loss) | (7) | 3 |
Purchases | 0 | 0 |
Settlements | (21) | (19) |
Balance, ending | 263 | 379 |
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at end of period | (7) | $ 3 |
Fixed deferred indexed annuities ceded embedded derivatives | ||
Summary of changes in Level 3 assets measured at fair value on a recurring basis | ||
Balance, beginning | 59 | |
Total gains (losses) included in net income | (3) | |
Total gains (losses) included in other comprehensive income (loss) | 0 | |
Purchases | 0 | |
Settlements | (1) | |
Balance, ending | 55 | |
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at end of period | $ 0 |
Fair Values of Assets and Lia_5
Fair Values of Assets and Liabilities - Changes in Level 3 Liabilities (Details) - RiverSource Life - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Changes in Level 3 liabilities measured at fair value on a recurring basis | ||
Net increase (decrease) to pretax income from adjustment for nonperformance risk on fair value of embedded derivatives | $ 25 | $ (167) |
Policyholder account balances, future policy benefits and claims embedded derivatives | ||
Changes in Level 3 liabilities measured at fair value on a recurring basis | ||
Balance, beginning | 2,853 | 3,370 |
Total (gains) losses included in net income | (838) | (1,621) |
Issues | 91 | 80 |
Settlements | (98) | 11 |
Balance, ending | 2,008 | 1,840 |
Changes in unrealized (gains) losses in net income relating to liabilities held at the end of the period | (703) | (1,676) |
Fixed deferred indexed annuity embedded derivatives | ||
Changes in Level 3 liabilities measured at fair value on a recurring basis | ||
Balance, beginning | 56 | 49 |
Total (gains) losses included in net income | (3) | 4 |
Issues | 0 | 0 |
Settlements | (1) | (1) |
Balance, ending | 52 | 52 |
Changes in unrealized (gains) losses in net income relating to liabilities held at the end of the period | 0 | 0 |
IUL embedded derivatives | ||
Changes in Level 3 liabilities measured at fair value on a recurring basis | ||
Balance, beginning | 905 | 935 |
Total (gains) losses included in net income | (32) | 29 |
Issues | 0 | 5 |
Settlements | (25) | (20) |
Balance, ending | 848 | 949 |
Changes in unrealized (gains) losses in net income relating to liabilities held at the end of the period | (32) | 29 |
GMWB and GMAB embedded derivatives | ||
Changes in Level 3 liabilities measured at fair value on a recurring basis | ||
Balance, beginning | 1,486 | 2,316 |
Total (gains) losses included in net income | (679) | (1,729) |
Issues | 87 | 90 |
Settlements | (66) | 38 |
Balance, ending | 828 | 715 |
Changes in unrealized (gains) losses in net income relating to liabilities held at the end of the period | (671) | (1,705) |
Structured variable annuity embedded derivatives | ||
Changes in Level 3 liabilities measured at fair value on a recurring basis | ||
Balance, beginning | 406 | 70 |
Total (gains) losses included in net income | (124) | 75 |
Issues | 4 | (15) |
Settlements | (6) | (6) |
Balance, ending | 280 | 124 |
Changes in unrealized (gains) losses in net income relating to liabilities held at the end of the period | $ 0 | $ 0 |
Fair Values of Assets and Lia_6
Fair Values of Assets and Liabilities - Significant Unobservable inputs (Details) - RiverSource Life $ in Millions | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Significant unobservable inputs used in fair value measurements | ||
Total Available-for-Sale securities | $ 15,732 | $ 16,239 |
Corporate debt securities | ||
Significant unobservable inputs used in fair value measurements | ||
Total Available-for-Sale securities | 9,058 | 9,638 |
Asset backed securities | ||
Significant unobservable inputs used in fair value measurements | ||
Total Available-for-Sale securities | 516 | 537 |
Level 3 | Corporate debt securities | ||
Significant unobservable inputs used in fair value measurements | ||
Total Available-for-Sale securities | 487 | 496 |
Level 3 | Asset backed securities | ||
Significant unobservable inputs used in fair value measurements | ||
Total Available-for-Sale securities | 263 | 291 |
Level 3 | Fixed deferred indexed annuities ceded embedded derivatives | ||
Significant unobservable inputs used in fair value measurements | ||
Receivables: embedded derivatives | 55 | 59 |
Level 3 | IUL embedded derivatives | ||
Significant unobservable inputs used in fair value measurements | ||
Gross Fair Value Liabilities, embedded derivatives | 848 | 905 |
Level 3 | Fixed deferred indexed annuity embedded derivatives | ||
Significant unobservable inputs used in fair value measurements | ||
Gross Fair Value Liabilities, embedded derivatives | 52 | 56 |
Level 3 | GMWB and GMAB embedded derivatives | ||
Significant unobservable inputs used in fair value measurements | ||
Fair Value Liabilities, embedded derivatives, net | 828 | 1,486 |
Level 3 | Structured variable annuity embedded derivatives | ||
Significant unobservable inputs used in fair value measurements | ||
Gross Fair Value Liabilities, embedded derivatives | $ 280 | $ 406 |
Level 3 | Discounted cash flow | Corporate debt securities | Minimum | Yield/spread to U.S. Treasuries | ||
Significant unobservable inputs used in fair value measurements | ||
Fixed maturities, measurement inputs | 0.009 | 0.008 |
Level 3 | Discounted cash flow | Corporate debt securities | Maximum | Yield/spread to U.S. Treasuries | ||
Significant unobservable inputs used in fair value measurements | ||
Fixed maturities, measurement inputs | 0.030 | 0.024 |
Level 3 | Discounted cash flow | Corporate debt securities | Weighted average | Yield/spread to U.S. Treasuries | ||
Significant unobservable inputs used in fair value measurements | ||
Fixed maturities, measurement inputs | 0.013 | 0.011 |
Level 3 | Discounted cash flow | Asset backed securities | Annual default rate | ||
Significant unobservable inputs used in fair value measurements | ||
Fixed maturities, measurement inputs | 0.062 | 0.058 |
Level 3 | Discounted cash flow | Asset backed securities | Loss severity | ||
Significant unobservable inputs used in fair value measurements | ||
Fixed maturities, measurement inputs | 0.250 | 0.250 |
Level 3 | Discounted cash flow | Asset backed securities | Minimum | Yield/spread to swap rates | ||
Significant unobservable inputs used in fair value measurements | ||
Fixed maturities, measurement inputs | 0.0225 | 0.0175 |
Level 3 | Discounted cash flow | Asset backed securities | Maximum | Yield/spread to swap rates | ||
Significant unobservable inputs used in fair value measurements | ||
Fixed maturities, measurement inputs | 0.0325 | 0.0275 |
Level 3 | Discounted cash flow | Asset backed securities | Weighted average | Annual default rate | ||
Significant unobservable inputs used in fair value measurements | ||
Fixed maturities, measurement inputs | 0.062 | 0.058 |
Level 3 | Discounted cash flow | Asset backed securities | Weighted average | Loss severity | ||
Significant unobservable inputs used in fair value measurements | ||
Fixed maturities, measurement inputs | 0.250 | 0.250 |
Level 3 | Discounted cash flow | Asset backed securities | Weighted average | Yield/spread to swap rates | ||
Significant unobservable inputs used in fair value measurements | ||
Fixed maturities, measurement inputs | 0.0233 | 0.0182 |
Level 3 | Discounted cash flow | Fixed deferred indexed annuities ceded embedded derivatives | Minimum | Surrender rate | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivative asset, measurement input | 0 | 0 |
Level 3 | Discounted cash flow | Fixed deferred indexed annuities ceded embedded derivatives | Maximum | Surrender rate | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivative asset, measurement input | 0.668 | 0.668 |
Level 3 | Discounted cash flow | Fixed deferred indexed annuities ceded embedded derivatives | Weighted average | Surrender rate | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivative asset, measurement input | 0.014 | 0.014 |
Level 3 | Discounted cash flow | IUL embedded derivatives | Nonperformance risk | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivative liability, measurement input | 0.0085 | 0.0065 |
Level 3 | Discounted cash flow | IUL embedded derivatives | Weighted average | Nonperformance risk | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivative liability, measurement input | 0.0085 | 0.0065 |
Level 3 | Discounted cash flow | Fixed deferred indexed annuity embedded derivatives | Nonperformance risk | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivative liability, measurement input | 0.0085 | 0.0065 |
Level 3 | Discounted cash flow | Fixed deferred indexed annuity embedded derivatives | Minimum | Surrender rate | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivative liability, measurement input | 0 | 0 |
Level 3 | Discounted cash flow | Fixed deferred indexed annuity embedded derivatives | Maximum | Surrender rate | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivative liability, measurement input | 0.668 | 0.668 |
Level 3 | Discounted cash flow | Fixed deferred indexed annuity embedded derivatives | Weighted average | Surrender rate | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivative liability, measurement input | 0.014 | 0.014 |
Level 3 | Discounted cash flow | Fixed deferred indexed annuity embedded derivatives | Weighted average | Nonperformance risk | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivative liability, measurement input | 0.0085 | 0.0065 |
Level 3 | Discounted cash flow | GMWB and GMAB embedded derivatives | Nonperformance risk | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivatives, measurement inputs | 0.0085 | 0.0065 |
Level 3 | Discounted cash flow | GMWB and GMAB embedded derivatives | Minimum | Surrender rate | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivatives, measurement inputs | 0.001 | 0.001 |
Level 3 | Discounted cash flow | GMWB and GMAB embedded derivatives | Minimum | Utilization of guaranteed withdrawals | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivatives, measurement inputs | 0 | 0 |
Level 3 | Discounted cash flow | GMWB and GMAB embedded derivatives | Minimum | Market volatility | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivatives, measurement inputs | 0.043 | 0.043 |
Level 3 | Discounted cash flow | GMWB and GMAB embedded derivatives | Maximum | Surrender rate | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivatives, measurement inputs | 0.557 | 0.557 |
Level 3 | Discounted cash flow | GMWB and GMAB embedded derivatives | Maximum | Utilization of guaranteed withdrawals | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivatives, measurement inputs | 0.480 | 0.480 |
Level 3 | Discounted cash flow | GMWB and GMAB embedded derivatives | Maximum | Market volatility | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivatives, measurement inputs | 0.165 | 0.168 |
Level 3 | Discounted cash flow | GMWB and GMAB embedded derivatives | Weighted average | Surrender rate | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivatives, measurement inputs | 0.036 | 0.036 |
Level 3 | Discounted cash flow | GMWB and GMAB embedded derivatives | Weighted average | Utilization of guaranteed withdrawals | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivatives, measurement inputs | 0.106 | 0.106 |
Level 3 | Discounted cash flow | GMWB and GMAB embedded derivatives | Weighted average | Market volatility | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivatives, measurement inputs | 0.109 | 0.108 |
Level 3 | Discounted cash flow | GMWB and GMAB embedded derivatives | Weighted average | Nonperformance risk | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivatives, measurement inputs | 0.0085 | 0.0065 |
Level 3 | Discounted cash flow | Structured variable annuity embedded derivatives | Nonperformance risk | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivative liability, measurement input | 0.0085 | 0.0065 |
Level 3 | Discounted cash flow | Structured variable annuity embedded derivatives | Minimum | Surrender rate | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivative liability, measurement input | 0.008 | 0.008 |
Level 3 | Discounted cash flow | Structured variable annuity embedded derivatives | Maximum | Surrender rate | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivative liability, measurement input | 0.400 | 0.400 |
Level 3 | Discounted cash flow | Structured variable annuity embedded derivatives | Weighted average | Surrender rate | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivative liability, measurement input | 0.009 | 0.009 |
Level 3 | Discounted cash flow | Structured variable annuity embedded derivatives | Weighted average | Nonperformance risk | ||
Significant unobservable inputs used in fair value measurements | ||
Embedded derivative liability, measurement input | 0.0085 | 0.0065 |
Fair Values of Assets and Lia_7
Fair Values of Assets and Liabilities - Non-Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
VIEs, not primary beneficiary | Affordable Housing Partnerships and Other Real Estate Partnerships | Nonrecurring basis | Level 3 | ||
Assets and liabilities measured at fair value | ||
Investment balance | $ 87 | $ 93 |
Fair Values of Assets and Lia_8
Fair Values of Assets and Liabilities - Financial Instruments Not Reported at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Financial Liabilities | ||
Separate account liabilities - investment contracts | $ 84,671 | $ 92,238 |
RiverSource Life | ||
Financial Assets | ||
Mortgage loans, net | 1,812 | 1,788 |
Policy loans | 833 | 834 |
Other investments | 213 | 230 |
Receivables | 8,009 | 8,148 |
Financial Liabilities | ||
Long-term debt | 500 | 500 |
Other liabilities | 5,831 | 6,628 |
RiverSource Life | Carrying Value | ||
Financial Assets | ||
Mortgage loans, net | 1,812 | 1,788 |
Policy loans | 833 | 834 |
Other investments | 60 | 61 |
Receivables | 7,754 | 7,876 |
Financial Liabilities | ||
Policyholder account balances, future policy benefits and claims | 12,841 | 12,342 |
Short-term borrowings | 200 | 200 |
Long-term debt | 500 | 500 |
Other liabilities | 9 | 9 |
RiverSource Life | Carrying Value | Investment contracts | ||
Financial Liabilities | ||
Separate account liabilities - investment contracts | 370 | 403 |
RiverSource Life | Fair Value | ||
Financial Assets | ||
Mortgage loans, net | 1,781 | 1,872 |
Policy loans | 833 | 834 |
Other investments | 60 | 61 |
Receivables | 7,646 | 8,630 |
Financial Liabilities | ||
Policyholder account balances, future policy benefits and claims | 12,678 | 13,264 |
Short-term borrowings | 200 | 200 |
Long-term debt | 427 | 498 |
Other liabilities | 8 | 9 |
RiverSource Life | Fair Value | Investment contracts | ||
Financial Liabilities | ||
Separate account liabilities - investment contracts | 370 | 403 |
RiverSource Life | Fair Value | Level 1 | ||
Financial Assets | ||
Mortgage loans, net | 0 | 0 |
Policy loans | 0 | 0 |
Other investments | 0 | 0 |
Receivables | 0 | 0 |
Financial Liabilities | ||
Policyholder account balances, future policy benefits and claims | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Other liabilities | 0 | 0 |
RiverSource Life | Fair Value | Level 1 | Investment contracts | ||
Financial Liabilities | ||
Separate account liabilities - investment contracts | 0 | 0 |
RiverSource Life | Fair Value | Level 2 | ||
Financial Assets | ||
Mortgage loans, net | 0 | 0 |
Policy loans | 833 | 834 |
Other investments | 40 | 40 |
Receivables | 0 | 0 |
Financial Liabilities | ||
Policyholder account balances, future policy benefits and claims | 0 | 0 |
Short-term borrowings | 200 | 200 |
Long-term debt | 427 | 498 |
Other liabilities | 0 | 0 |
RiverSource Life | Fair Value | Level 2 | Investment contracts | ||
Financial Liabilities | ||
Separate account liabilities - investment contracts | 370 | 403 |
RiverSource Life | Fair Value | Level 3 | ||
Financial Assets | ||
Mortgage loans, net | 1,781 | 1,872 |
Policy loans | 0 | 0 |
Other investments | 20 | 21 |
Receivables | 7,646 | 8,630 |
Financial Liabilities | ||
Policyholder account balances, future policy benefits and claims | 12,678 | 13,264 |
Short-term borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Other liabilities | 8 | 9 |
RiverSource Life | Fair Value | Level 3 | Investment contracts | ||
Financial Liabilities | ||
Separate account liabilities - investment contracts | $ 0 | $ 0 |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities - Assets (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives: | ||
Gross Amounts of Recognized Assets | $ 4,625 | $ 5,517 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Amounts of Assets Presented in the Consolidated Balance Sheets | 4,625 | 5,517 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||
Financial Instruments | (3,420) | (3,703) |
Cash Collateral | (1,071) | (1,623) |
Securities Collateral | 0 | (114) |
Net amount | 134 | 77 |
OTC | ||
Derivatives: | ||
Gross Amounts of Recognized Assets | 4,372 | 5,330 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Amounts of Assets Presented in the Consolidated Balance Sheets | 4,372 | 5,330 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||
Financial Instruments | (3,250) | (3,571) |
Cash Collateral | (1,071) | (1,623) |
Securities Collateral | 0 | (114) |
Net amount | 51 | 22 |
OTC cleared | ||
Derivatives: | ||
Gross Amounts of Recognized Assets | 156 | 88 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Amounts of Assets Presented in the Consolidated Balance Sheets | 156 | 88 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||
Financial Instruments | (82) | (41) |
Cash Collateral | 0 | 0 |
Securities Collateral | 0 | 0 |
Net amount | 74 | 47 |
Exchange-traded | ||
Derivatives: | ||
Gross Amounts of Recognized Assets | 97 | 99 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Amounts of Assets Presented in the Consolidated Balance Sheets | 97 | 99 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||
Financial Instruments | (88) | (91) |
Cash Collateral | 0 | 0 |
Securities Collateral | 0 | 0 |
Net amount | $ 9 | $ 8 |
Offsetting Assets and Liabili_4
Offsetting Assets and Liabilities - Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives | ||
Gross Amounts of Recognized Liabilities | $ 4,076 | $ 4,180 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Amounts of Liabilities Presented in the Consolidated Balance Sheets | 4,076 | 4,180 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||
Financial Instruments | (3,420) | (3,703) |
Cash Collateral | (258) | (181) |
Securities Collateral | (393) | (293) |
Net amount | 5 | 3 |
OTC | ||
Derivatives | ||
Gross Amounts of Recognized Liabilities | 3,817 | 4,048 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Amounts of Liabilities Presented in the Consolidated Balance Sheets | 3,817 | 4,048 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||
Financial Instruments | (3,250) | (3,571) |
Cash Collateral | (169) | (181) |
Securities Collateral | (393) | (293) |
Net amount | 5 | 3 |
OTC cleared | ||
Derivatives | ||
Gross Amounts of Recognized Liabilities | 82 | 41 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Amounts of Liabilities Presented in the Consolidated Balance Sheets | 82 | 41 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||
Financial Instruments | (82) | (41) |
Cash Collateral | 0 | 0 |
Securities Collateral | 0 | 0 |
Net amount | 0 | 0 |
Exchange-traded | ||
Derivatives | ||
Gross Amounts of Recognized Liabilities | 177 | 91 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Amounts of Liabilities Presented in the Consolidated Balance Sheets | 177 | 91 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||
Financial Instruments | (88) | (91) |
Cash Collateral | (89) | 0 |
Securities Collateral | 0 | 0 |
Net amount | $ 0 | $ 0 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Notional Value and Gross Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives and Hedging Activities | ||
Notional | $ 149,001 | $ 143,178 |
Gross Fair Value Assets, freestanding derivatives | 4,625 | 5,517 |
Gross Fair Value Liabilities, freestanding derivatives | 4,076 | 4,180 |
Total Gross Fair Value, derivative assets | 4,680 | 5,576 |
Total Gross Fair Value, derivative liabilities | 6,089 | 7,038 |
Derivative liability after application of master netting arrangements and cash collateral including embedded derivative liabilities | 2,400 | 3,200 |
Fair value of investment securities received as collateral | 0 | 123 |
Fair value of investment securities received as collateral that can be repledged | 0 | 123 |
Fair value of investment securities received as collateral that were repledged | 0 | 0 |
Policyholder account balances, future policy benefits and claims | ||
Derivatives and Hedging Activities | ||
Fair Value Liabilities, embedded derivatives, net | 2,013 | 2,858 |
Receivables | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Assets, embedded derivatives | 55 | 59 |
GMWB and GMAB embedded derivatives | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Assets, embedded derivatives | 204 | 133 |
Gross Fair Value Liabilities, embedded derivatives | 1,000 | 1,600 |
GMWB and GMAB embedded derivatives | Policyholder account balances, future policy benefits and claims | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Assets, embedded derivatives | 0 | 0 |
Fair Value Liabilities, embedded derivatives, net | 828 | 1,486 |
IUL embedded derivatives | Policyholder account balances, future policy benefits and claims | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Assets, embedded derivatives | 0 | 0 |
Gross Fair Value Liabilities, embedded derivatives | 848 | 905 |
Fixed deferred indexed annuity embedded derivatives | Policyholder account balances, future policy benefits and claims | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Liabilities, embedded derivatives | 57 | 61 |
Fixed deferred indexed annuity embedded derivatives | Receivables | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Assets, embedded derivatives | 55 | 59 |
Structured variable annuity embedded derivatives | Policyholder account balances, future policy benefits and claims | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Assets, embedded derivatives | 0 | 0 |
Gross Fair Value Liabilities, embedded derivatives | 280 | 406 |
Not designated as hedging instruments | ||
Derivatives and Hedging Activities | ||
Notional | 149,001 | 143,178 |
Not designated as hedging instruments | Other assets | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Assets, freestanding derivatives | 4,625 | 5,517 |
Not designated as hedging instruments | Other liabilities | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Liabilities, freestanding derivatives | 4,076 | 4,180 |
Not designated as hedging instruments | Interest rate contracts | ||
Derivatives and Hedging Activities | ||
Notional | 82,220 | 79,459 |
Not designated as hedging instruments | Interest rate contracts | Other assets | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Assets, freestanding derivatives | 739 | 1,252 |
Not designated as hedging instruments | Interest rate contracts | Other liabilities | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Liabilities, freestanding derivatives | 315 | 468 |
Not designated as hedging instruments | Equity contracts | ||
Derivatives and Hedging Activities | ||
Notional | 62,203 | 59,763 |
Not designated as hedging instruments | Equity contracts | Other assets | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Assets, freestanding derivatives | 3,815 | 4,238 |
Not designated as hedging instruments | Equity contracts | Other liabilities | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Liabilities, freestanding derivatives | 3,758 | 3,711 |
Not designated as hedging instruments | Credit contracts | ||
Derivatives and Hedging Activities | ||
Notional | 2,151 | 1,717 |
Not designated as hedging instruments | Credit contracts | Other assets | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Assets, freestanding derivatives | 45 | 9 |
Not designated as hedging instruments | Credit contracts | Other liabilities | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Liabilities, freestanding derivatives | 0 | 0 |
Not designated as hedging instruments | Foreign exchange contracts | ||
Derivatives and Hedging Activities | ||
Notional | 2,427 | 2,239 |
Not designated as hedging instruments | Foreign exchange contracts | Other assets | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Assets, freestanding derivatives | 26 | 18 |
Not designated as hedging instruments | Foreign exchange contracts | Other liabilities | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Liabilities, freestanding derivatives | $ 3 | $ 1 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Derivatives Not Designated as Hedges Impact (Details) - Not designated as hedging instruments - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net Investment Income | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | $ 0 | $ 1 |
Net Investment Income | Interest rate contracts | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 0 | 0 |
Net Investment Income | Equity contracts | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 0 | 1 |
Net Investment Income | Credit contracts | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 0 | 0 |
Net Investment Income | Foreign exchange contracts | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 0 | 0 |
Net Investment Income | GMWB and GMAB embedded derivatives | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 0 | 0 |
Net Investment Income | IUL embedded derivatives | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 0 | 0 |
Net Investment Income | Fixed deferred indexed annuity and deposit receivables embedded derivatives | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 0 | |
Net Investment Income | Fixed deferred indexed annuity embedded derivatives | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 0 | |
Net Investment Income | Structured variable annuity embedded derivatives | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 0 | 0 |
Interest Credited to Fixed Accounts | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 42 | 11 |
Interest Credited to Fixed Accounts | Interest rate contracts | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 0 | 0 |
Interest Credited to Fixed Accounts | Equity contracts | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | (16) | 25 |
Interest Credited to Fixed Accounts | Credit contracts | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 0 | 0 |
Interest Credited to Fixed Accounts | Foreign exchange contracts | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 0 | 0 |
Interest Credited to Fixed Accounts | GMWB and GMAB embedded derivatives | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 0 | 0 |
Interest Credited to Fixed Accounts | IUL embedded derivatives | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 57 | (9) |
Interest Credited to Fixed Accounts | Fixed deferred indexed annuity and deposit receivables embedded derivatives | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 1 | |
Interest Credited to Fixed Accounts | Fixed deferred indexed annuity embedded derivatives | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | (5) | |
Interest Credited to Fixed Accounts | Structured variable annuity embedded derivatives | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 0 | 0 |
Benefits, Claims, Losses and Settlement Expenses | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 15 | (530) |
Benefits, Claims, Losses and Settlement Expenses | Interest rate contracts | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | (1,118) | (1,825) |
Benefits, Claims, Losses and Settlement Expenses | Equity contracts | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 224 | (310) |
Benefits, Claims, Losses and Settlement Expenses | Credit contracts | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 97 | 69 |
Benefits, Claims, Losses and Settlement Expenses | Foreign exchange contracts | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 31 | 11 |
Benefits, Claims, Losses and Settlement Expenses | GMWB and GMAB embedded derivatives | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 658 | 1,600 |
Benefits, Claims, Losses and Settlement Expenses | IUL embedded derivatives | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 0 | 0 |
Benefits, Claims, Losses and Settlement Expenses | Fixed deferred indexed annuity and deposit receivables embedded derivatives | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 0 | |
Benefits, Claims, Losses and Settlement Expenses | Fixed deferred indexed annuity embedded derivatives | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | 0 | |
Benefits, Claims, Losses and Settlement Expenses | Structured variable annuity embedded derivatives | ||
Impact of derivatives not designated as hedging instruments | ||
Total gain (loss) | $ 123 | $ (75) |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Deferred Premium, Options and Swaptions (Details) - Options and swaptions $ in Millions | Mar. 31, 2022USD ($) |
Premiums payable | |
2022 | $ 130 |
2023 | 50 |
2024 | 135 |
2025 | 123 |
2026 | 252 |
2027 - 2028 | 18 |
Total | 708 |
Premiums Receivable | |
2022 | 192 |
2023 | 43 |
2024 | 24 |
2025 | 21 |
2026 | 88 |
2027 - 2028 | 0 |
Total | $ 368 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities - Cash Flow Hedges and Credit Risk (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Cash Flow Hedges | |||
Derivatives designated as cash flow hedges | $ 0 | $ 0 | |
Hedge relationships discontinued due to forecasted transactions no longer being expected to occur according to original hedge strategy | 0 | $ 0 | |
Credit Risk | |||
Aggregate fair value of derivative contracts in net liability position containing credit contingent provisions | 467 | $ 383 | |
Aggregate fair value of assets posted as collateral | 462 | 383 | |
Aggregate fair value of additional assets required to be posted or needed to settle | $ 5 | $ 0 |
Shareholder's Equity - OCI Comp
Shareholder's Equity - OCI Components (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Pretax | ||
Total other comprehensive income (loss) | $ (656) | $ (428) |
Income Tax Benefit (Expense) | ||
Total other comprehensive income (loss) | 137 | 90 |
Net of Tax | ||
Arising during the period | (506) | (300) |
Reclassification to net income | (13) | (38) |
Total other comprehensive income (loss), net of tax | (519) | (338) |
Net unrealized gains (losses) on securities | ||
Pretax | ||
Total other comprehensive income (loss) | (656) | (428) |
Income Tax Benefit (Expense) | ||
Total other comprehensive income (loss) | 137 | 90 |
Net of Tax | ||
Arising during the period | (506) | (300) |
Reclassification to net income | (13) | (38) |
Total other comprehensive income (loss), net of tax | (519) | (338) |
Net unrealized gains (losses) on securities, excluding insurance related impact | ||
Pretax | ||
Arising during the period | (1,155) | (678) |
Income Tax Benefit (Expense) | ||
Arising during the period | 241 | 142 |
Net of Tax | ||
Arising during the period | (914) | (536) |
Net Unrealized Gains (Losses) on Securities | ||
Pretax | ||
Reclassification to net income | (17) | (49) |
Income Tax Benefit (Expense) | ||
Reclassification to net income | 4 | 11 |
Net of Tax | ||
Reclassification to net income | (13) | (38) |
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables | ||
Pretax | ||
Arising during the period | 516 | 299 |
Income Tax Benefit (Expense) | ||
Arising during the period | (108) | (63) |
Net of Tax | ||
Arising during the period | $ 408 | $ 236 |
Shareholder's Equity - Changes
Shareholder's Equity - Changes in AOCI Components (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Changes in balances of each component of AOCI, net of tax | ||
Beginning balance | $ 1,885 | $ 3,313 |
OCI before reclassifications | (506) | (300) |
Amounts reclassified from AOCI | (13) | (38) |
Total other comprehensive income (loss), net of tax | (519) | (338) |
Ending balance | 1,381 | 2,743 |
Total AOCI | ||
Changes in balances of each component of AOCI, net of tax | ||
Beginning balance | 328 | 920 |
Total other comprehensive income (loss), net of tax | (519) | (338) |
Ending balance | (191) | 582 |
Net unrealized gains (losses) on securities | ||
Changes in balances of each component of AOCI, net of tax | ||
Beginning balance | 329 | 921 |
OCI before reclassifications | (506) | (300) |
Amounts reclassified from AOCI | (13) | (38) |
Total other comprehensive income (loss), net of tax | (519) | (338) |
Ending balance | (190) | 583 |
Other | ||
Changes in balances of each component of AOCI, net of tax | ||
Beginning balance | (1) | (1) |
OCI before reclassifications | 0 | 0 |
Amounts reclassified from AOCI | 0 | 0 |
Total other comprehensive income (loss), net of tax | 0 | 0 |
Ending balance | $ (1) | $ (1) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Income taxes | |||
Effective tax rate (as a percent) | 11.10% | 9.10% | |
Valuation allowance | $ 11 | $ 11 | |
Gross unrecognized tax benefits | 37 | 37 | |
Unrecognized tax benefits, net of federal tax benefits, that would affect the effective tax rate if recognized | 20 | 20 | |
Amount of decrease in unrecognized tax benefits reasonably possible within next 12 months | 32 | ||
Interest and penalties recognized in income tax provision | 0 | $ 0 | |
Payable related to accrued interest and penalties | 3 | 3 | |
State deferred tax assets | |||
Income taxes | |||
Valuation allowance | 2 | 2 | |
State net operating losses | |||
Income taxes | |||
Valuation allowance | 9 | $ 9 | |
State | |||
Income taxes | |||
Deferred tax assets, loss carryforwards | $ 9 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Estimated liability related to guaranty fund assessments | $ 12 | $ 12 |
Related premium tax asset | $ 10 | $ 10 |