Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 14, 2014 | Jun. 30, 2013 |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'AMERIPRISE FINANCIAL INC | ' | ' |
Entity Central Index Key | '0000820027 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Public Float | ' | ' | $16.10 |
Entity Common Stock, Shares Outstanding | ' | 190,872,783 | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | ' | ' | ' |
Management and financial advice fees | $5,253 | $4,692 | $4,537 |
Distribution fees | 1,771 | 1,616 | 1,573 |
Net investment income | 1,889 | 1,933 | 2,046 |
Premiums | 1,282 | 1,223 | 1,220 |
Other revenues | 1,035 | 795 | 863 |
Total revenues | 11,230 | 10,259 | 10,239 |
Banking and deposit interest expense | 31 | 42 | 47 |
Total net revenues | 11,199 | 10,217 | 10,192 |
Expenses | ' | ' | ' |
Distribution expenses | 3,036 | 2,698 | 2,559 |
Interest credited to fixed accounts | 806 | 831 | 856 |
Benefits, claims, losses and settlement expenses | 1,954 | 1,899 | 1,606 |
Amortization of deferred acquisition costs | 207 | 286 | 397 |
Interest and debt expense | 281 | 276 | 317 |
General and administrative expense | 2,945 | 2,989 | 3,010 |
Total expenses | 9,229 | 8,979 | 8,745 |
Income from continuing operations before income tax provision | 1,970 | 1,238 | 1,447 |
Income tax provision | 492 | 335 | 377 |
Income from continuing operations | 1,478 | 903 | 1,070 |
Loss from discontinued operations, net of tax | -3 | -2 | -60 |
Net income | 1,475 | 901 | 1,010 |
Less: Net income (loss) attributable to noncontrolling interests | 141 | -128 | -106 |
Net income attributable to Ameriprise Financial | 1,334 | 1,029 | 1,116 |
Basic | ' | ' | ' |
Income from continuing operations (in dollars per share) | $6.58 | $4.71 | $4.87 |
Loss from discontinued operations (in dollars per share) | ($0.02) | ($0.01) | ($0.25) |
Net income (in dollars per share) | $6.56 | $4.70 | $4.62 |
Diluted | ' | ' | ' |
Income from continuing operations (in dollars per share) | $6.46 | $4.63 | $4.77 |
Loss from discontinued operations (in dollars per share) | ($0.02) | ($0.01) | ($0.24) |
Net income (in dollars per share) | $6.44 | $4.62 | $4.53 |
Cash dividends declared per common share (in dollars per share) | $2.01 | $1.15 | $1.15 |
Supplemental Disclosures: | ' | ' | ' |
Total other-than-temporary impairment losses on securities | -11 | -30 | -76 |
Portion of loss recognized in other comprehensive income (loss) (before taxes) | 2 | -7 | 42 |
Net impairment losses recognized in net investment income | ($9) | ($37) | ($34) |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $380 | $449 | $281 | $365 | $332 | $151 | $170 | $248 | $1,475 | $901 | $1,010 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustment | ' | ' | ' | ' | ' | ' | ' | ' | 37 | 50 | -10 |
Net unrealized gains (losses) on securities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net unrealized securities gains (losses) arising during the period | ' | ' | ' | ' | ' | ' | ' | ' | -971 | 588 | 376 |
Reclassification of net securities gains included in net income | ' | ' | ' | ' | ' | ' | ' | ' | -5 | -5 | 0 |
Impact on deferred acquisition costs, deferred sales inducement costs, benefit reserves and reinsurance recoverables | ' | ' | ' | ' | ' | ' | ' | ' | 319 | -154 | -193 |
Total net unrealized gains (losses) on securities | ' | ' | ' | ' | ' | ' | ' | ' | -657 | 429 | 183 |
Net unrealized gains (losses) on derivatives: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net unrealized derivative gains (losses) arising during the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | -7 |
Reclassification of net derivative (gains) losses included in net income | ' | ' | ' | ' | ' | ' | ' | ' | 1 | -1 | -22 |
Total net unrealized gains (losses) on derivatives | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 9 | -29 |
Defined benefit plans: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prior service credit | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -1 | -1 |
Net income (loss) arising during the period | ' | ' | ' | ' | ' | ' | ' | ' | 46 | -15 | -50 |
Total defined benefit plans | ' | ' | ' | ' | ' | ' | ' | ' | 45 | -16 | -51 |
Total other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | ' | ' | ' | -574 | 472 | 93 |
Total other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | ' | ' | ' | 901 | 1,373 | 1,103 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | 166 | -99 | -114 |
Comprehensive income attributable to Ameriprise Financial | ' | ' | ' | ' | ' | ' | ' | ' | $735 | $1,472 | $1,217 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $2,632 | $2,371 |
Total assets | 144,576 | 134,729 |
Liabilities: | ' | ' |
Policyholder account balances, future policy benefits and claims | 29,620 | 31,217 |
Separate account liabilities | 81,223 | 72,397 |
Total liabilities | 135,344 | 125,017 |
Ameriprise Financial, Inc.: | ' | ' |
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 316,816,851 and 309,399,529, respectively) | 3 | 3 |
Additional paid-in capital | 6,929 | 6,503 |
Retained earnings | 7,289 | 6,381 |
Appropriated retained earnings of consolidated investment entities | 337 | 336 |
Treasury shares, at cost (124,698,544 and 105,456,535 shares, respectively) | -6,961 | -5,325 |
Accumulated other comprehensive income, net of tax | 595 | 1,194 |
Total Ameriprise Financial, Inc. shareholders' equity | 8,192 | 9,092 |
Noncontrolling interests | 1,040 | 620 |
Total equity | 9,232 | 9,712 |
Total liabilities and equity | 144,576 | 134,729 |
Ameriprise Financial | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 2,632 | 2,371 |
Investments | 35,735 | 36,877 |
Separate account assets | 81,223 | 72,397 |
Receivables | 4,538 | 4,220 |
Deferred acquisition costs | 2,663 | 2,399 |
Restricted and segregated cash and investments | 2,360 | 2,538 |
Other assets | 7,983 | 7,667 |
Liabilities: | ' | ' |
Policyholder account balances, future policy benefits and claims | 29,620 | 31,217 |
Separate account liabilities | 81,223 | 72,397 |
Customer deposits | 7,062 | 6,526 |
Short-term borrowings | 500 | 501 |
Total long-term debt | 2,720 | 2,403 |
Accounts Payable and Accrued Liabilities | 1,367 | 1,228 |
Other liabilities | 6,829 | 5,467 |
Consolidated Investment Entities | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 419 | 579 |
Investments | 5,002 | 4,370 |
Receivables | 72 | 95 |
Other assets | 1,949 | 1,216 |
Liabilities: | ' | ' |
Total long-term debt | 5,736 | 4,981 |
Accounts Payable and Accrued Liabilities | 62 | 96 |
Other liabilities | $225 | $201 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Common shares, par value (in dollars per share) | $0.01 | $0.01 |
Common shares, shares authorized | 1,250,000,000 | 1,250,000,000 |
Common shares, shares issued | 316,816,851 | 309,399,529 |
Treasury shares | 124,698,544 | 105,456,535 |
Consolidated Investment Entities | ' | ' |
Receivables, fair value (in dollars) | $32 | $77 |
Debt | 4,804 | 4,450 |
Other liabilities, fair value (in dollars) | $193 | $166 |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Total Ameriprise Financial, Inc. Shareholders' Equity | Common Shares | Additional Paid-In Capital | Retained Earnings | Appropriated Retained Earnings of Consolidated Investment Entities | Treasury Shares | Accumulated Other Comprehensive Income | Noncontrolling Interests |
In Millions, except Share data, unless otherwise specified | |||||||||
Balances at Dec. 31, 2010 | $9,950 | $9,390 | $3 | $6,029 | $4,770 | $558 | ($2,620) | $650 | $560 |
Balances (in shares) at Dec. 31, 2010 | ' | ' | 246,697,892 | ' | ' | ' | ' | ' | ' |
Comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 1,010 | 1,116 | ' | ' | 1,116 | ' | ' | ' | -106 |
Other comprehensive income (loss), net of tax | 93 | 101 | ' | ' | ' | ' | ' | 101 | -8 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 1,217 | 1,217 | ' | ' | ' | ' | ' | ' | ' |
Less: Comprehensive income (loss) attributable to noncontrolling interests | -114 | ' | ' | ' | ' | ' | ' | ' | -114 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 1,103 | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss reclassified to appropriated retained earnings | 0 | -130 | ' | ' | ' | -130 | ' | ' | 130 |
Dividends to shareholders | -274 | -274 | ' | ' | -274 | ' | ' | ' | ' |
Noncontrolling interests investments in subsidiaries | 155 | ' | ' | ' | ' | ' | ' | ' | 155 |
Distributions to noncontrolling interests | -54 | ' | ' | ' | ' | ' | ' | ' | -54 |
Repurchase of common shares | -1,495 | -1,495 | ' | ' | ' | ' | -1,495 | ' | ' |
Repurchase of common shares (in shares) | ' | ' | -28,812,873 | ' | ' | ' | ' | ' | ' |
Share-based compensation plans | 309 | 280 | ' | 208 | -9 | ' | 81 | ' | 29 |
Share-based compensation plans (in shares) | ' | ' | 4,057,964 | ' | ' | ' | ' | ' | ' |
Balances at Dec. 31, 2011 | 9,694 | 8,988 | 3 | 6,237 | 5,603 | 428 | -4,034 | 751 | 706 |
Balances (in shares) at Dec. 31, 2011 | ' | ' | 221,942,983 | ' | ' | ' | ' | ' | ' |
Comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 901 | 1,029 | ' | ' | 1,029 | ' | ' | ' | -128 |
Other comprehensive income (loss), net of tax | 472 | 443 | ' | ' | ' | ' | ' | 443 | 29 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 1,472 | 1,472 | ' | ' | ' | ' | ' | ' | ' |
Less: Comprehensive income (loss) attributable to noncontrolling interests | -99 | ' | ' | ' | ' | ' | ' | ' | -99 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 1,373 | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss reclassified to appropriated retained earnings | 0 | -84 | ' | ' | ' | -84 | ' | ' | 84 |
Dividends to shareholders | -251 | -251 | ' | ' | -251 | ' | ' | ' | ' |
Noncontrolling interests investments in subsidiaries | 125 | ' | ' | ' | ' | ' | ' | ' | 125 |
Distributions to noncontrolling interests | -207 | ' | ' | ' | ' | ' | ' | ' | -207 |
Repurchase of common shares | -1,380 | -1,380 | ' | ' | ' | ' | -1,380 | ' | ' |
Repurchase of common shares (in shares) | ' | ' | -25,441,707 | ' | ' | ' | ' | ' | ' |
Share-based compensation plans | 366 | 355 | ' | 266 | ' | ' | 89 | ' | 11 |
Share-based compensation plans (in shares) | ' | ' | 7,441,718 | ' | ' | ' | ' | ' | ' |
Other | -8 | -8 | ' | ' | ' | -8 | ' | ' | ' |
Balances at Dec. 31, 2012 | 9,712 | 9,092 | 3 | 6,503 | 6,381 | 336 | -5,325 | 1,194 | 620 |
Balances (in shares) at Dec. 31, 2012 | ' | ' | 203,942,994 | ' | ' | ' | ' | ' | ' |
Comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 1,475 | 1,334 | ' | ' | 1,334 | ' | ' | ' | 141 |
Other comprehensive income (loss), net of tax | -574 | -599 | ' | ' | ' | ' | ' | -599 | 25 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 735 | 735 | ' | ' | ' | ' | ' | ' | ' |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 166 | ' | ' | ' | ' | ' | ' | ' | 166 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 901 | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss reclassified to appropriated retained earnings | 0 | 1 | ' | ' | ' | 1 | ' | ' | -1 |
Dividends to shareholders | -411 | -411 | ' | ' | -411 | ' | ' | ' | ' |
Noncontrolling interests investments in subsidiaries | 392 | ' | ' | ' | ' | ' | ' | ' | 392 |
Distributions to noncontrolling interests | -161 | ' | ' | ' | ' | ' | ' | ' | -161 |
Repurchase of common shares | -1,735 | -1,735 | ' | ' | ' | ' | -1,735 | ' | ' |
Repurchase of common shares (in shares) | ' | ' | -21,184,706 | ' | ' | ' | ' | ' | ' |
Share-based compensation plans | 534 | 510 | ' | 426 | -15 | ' | 99 | ' | 24 |
Share-based compensation plans (in shares) | ' | ' | 9,360,019 | ' | ' | ' | ' | ' | ' |
Balances at Dec. 31, 2013 | $9,232 | $8,192 | $3 | $6,929 | $7,289 | $337 | ($6,961) | $595 | $1,040 |
Balances (in shares) at Dec. 31, 2013 | ' | ' | 192,118,307 | ' | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash Flows from Operating Activities | ' | ' | ' |
Net income | $1,475 | $901 | $1,010 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation, amortization and accretion, net | 239 | 225 | 110 |
Deferred income tax expense (benefit) | -118 | 50 | 83 |
Share-based compensation | 143 | 134 | 145 |
Net realized investment gains | -16 | -45 | -34 |
Net trading losses (gains) | -7 | 2 | 1 |
Loss (income) and (gain) from sale of equity method investments | -31 | 15 | 42 |
Other-than-temporary impairments and provision for loan losses | 8 | 42 | 43 |
Net losses (gains) of consolidated investment entities | -136 | 158 | 115 |
Changes in operating assets and liabilities: | ' | ' | ' |
Restricted and segregated cash and investments | 93 | -684 | -11 |
Deferred acquisition costs | -132 | -27 | 62 |
Other investments, net | -6 | 11 | 5 |
Policyholder account balances, future policy benefits and claims, net | -1,318 | -741 | 1,173 |
Derivatives, net of collateral | 1,706 | 661 | 239 |
Receivables | -267 | -130 | -260 |
Brokerage deposits | 63 | 683 | 225 |
Accounts payable and accrued expenses | 134 | 171 | -80 |
Cash held by consolidated investment entities | 174 | -109 | 2 |
Investment properties of consolidated investment entities | -603 | -156 | -218 |
Other operating assets and liabilities of consolidated investment entities, net | -38 | 103 | 19 |
Other, net | 1 | 241 | -493 |
Net cash provided by operating activities | 1,364 | 1,505 | 2,178 |
Available-for-Sale securities: | ' | ' | ' |
Proceeds from sales | 327 | 3,719 | 888 |
Maturities, sinking fund payments and calls | 5,101 | 4,994 | 5,206 |
Purchases | -5,780 | -4,957 | -7,236 |
Proceeds from sales, maturities and repayments of mortgage loans | 711 | 674 | 582 |
Funding and purchase of mortgage loans | -630 | -586 | -912 |
Proceeds from sales and collections of other investments | 348 | 199 | 360 |
Purchase of other investments | -347 | -403 | -422 |
Purchase of investments by consolidated investment entities | -3,077 | -1,604 | -2,871 |
Proceeds from sales, maturities and repayments of investments by consolidated investment entities | 2,604 | 2,316 | 3,399 |
Purchase of land, buildings, equipment and software | -105 | -137 | -250 |
Proceeds from sale of business | 0 | 0 | 150 |
Change in credit card receivables, net | 0 | 194 | -31 |
Other, net | 46 | 8 | -9 |
Net cash provided by (used in) investing activities | -802 | 4,417 | -1,146 |
Investment certificates and banking time deposits: | ' | ' | ' |
Proceeds from additions | 2,348 | 1,754 | 913 |
Maturities, withdrawals and cash surrenders | -1,877 | -1,187 | -1,283 |
Change in other banking deposits | 0 | -4,571 | 1,210 |
Policyholder account balances: | ' | ' | ' |
Deposits and other additions | 2,158 | 2,198 | 2,221 |
Net transfers from (to) separate accounts | -116 | -30 | 39 |
Surrenders and other benefits | -1,994 | -2,063 | -2,154 |
Cash paid for purchased options with deferred premiums | -396 | -356 | -254 |
Issuance of debt, net of issuance costs | 744 | 0 | 0 |
Repayments of debt | -350 | 0 | -20 |
Change in short-term borrowings, net | -2 | -5 | 107 |
Dividends paid to shareholders | -401 | -305 | -212 |
Repurchase of common shares | -1,583 | -1,381 | -1,495 |
Exercise of stock options | 118 | 160 | 66 |
Excess tax benefits from share-based compensation | 120 | 64 | 90 |
Borrowings by consolidated investment entities | 1,725 | 175 | 163 |
Repayments of debt by consolidated investment entities | -1,046 | -709 | -603 |
Noncontrolling interests investments in subsidiaries | 392 | 125 | 155 |
Distributions to noncontrolling interests | -161 | -207 | -54 |
Other, net | 15 | -4 | 0 |
Net cash used in financing activities | -306 | -6,342 | -1,111 |
Effect of exchange rate changes on cash | 5 | 10 | -1 |
Net increase (decrease) in cash and cash equivalents | 261 | -410 | -80 |
Cash and cash equivalents at beginning of period | 2,371 | 2,781 | 2,861 |
Cash and cash equivalents at end of period | 2,632 | 2,371 | 2,781 |
Income taxes paid, net | ' | ' | ' |
Interest paid before consolidated investment entities | 170 | 190 | 201 |
Income taxes paid, net | 391 | 217 | 370 |
Affordable housing partnership commitments not yet remitted | 96 | 13 | 137 |
Dividends declared but not paid | $0 | $0 | $62 |
Basis_of_Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
Ameriprise Financial, Inc. is a holding company, which primarily conducts business through its subsidiaries to provide financial planning, products and services that are designed to be utilized as solutions for clients’ cash and liquidity, asset accumulation, income, protection and estate and wealth transfer needs. The foreign operations of Ameriprise Financial, Inc. are conducted primarily through its subsidiary, Threadneedle Asset Management Holdings Sàrl (“Threadneedle”). | |
The accompanying Consolidated Financial Statements include the accounts of Ameriprise Financial, Inc., 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”). The income or loss generated by consolidated entities which will not be realized by the Company’s shareholders is attributed to noncontrolling interests in the Consolidated Statements of Operations. Noncontrolling interests are the ownership interests in subsidiaries not attributable, directly or indirectly, to Ameriprise Financial, Inc. and are classified as equity within the Consolidated Balance Sheets. The Company, excluding noncontrolling interests, is defined as “Ameriprise Financial.” All intercompany transactions and balances have been eliminated in consolidation. See Note 4 for additional information related to VIEs. | |
The results of Securities America Financial Corporation and its subsidiaries (collectively, “Securities America”) have been presented as discontinued operations for all periods presented. The Company completed the sale of Securities America in the fourth quarter of 2011. | |
The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). | |
In the Consolidated Statements of Operations, the Company reclassified unallocated loss adjustment expenses related to auto and home insurance from general and administrative expense to benefits, claims, losses and settlement expenses for prior years to align with the presentation of industry peers and accounting guidance. The amounts reclassified for the years ended December 31, 2012 and 2011 were $53 million and $49 million, respectively. | |
In addition, the Company reclassified certain prior year amounts in the Consolidated Statements of Cash Flows, as discussed below, to improve the transparency of its cash flows. Total cash flows provided by (used in) operating, investing and financing activities did not change as a result of the reclassifications. | |
Within operating activities, the change in freestanding derivatives hedging guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum accumulation benefits (“GMAB”) liabilities was reclassified from “Policyholder account balances, future policy benefits and claims” to “Derivatives, net of collateral.” The change in all other freestanding derivatives was reclassified from “Other, net” to “Derivatives, net of collateral.” The change in derivatives collateral was reclassified from “Derivatives collateral, net” to “Derivatives, net of collateral.” As a result of these reclassifications, changes in all freestanding derivatives and related collateral are included in one line within operating cash flows. | |
Within investing activities, the change in residential mortgage loans was reclassified from “Change in consumer loans, net” to “Proceeds from sales, maturities and repayments of mortgage loans” and “Funding of mortgage loans.” These lines also include changes in commercial mortgage loans. | |
Within financing activities, the increase in policyholder account balances for interest credited was reclassified from “Policyholder account balances: Surrenders and other benefits” to “Policyholder account balances: Deposits and other additions.” The increase in certificate account balances for interest credited was reclassified from “Investment certificates and banking time deposits: Maturities, withdrawals and cash surrenders” to “Investment certificates and banking time deposits: Proceeds from additions.” | |
In the fourth quarter of 2012, the Company made an adjustment to the model which values the reserves related to living benefit guarantees primarily attributable to prior periods, which resulted in a $41 million pretax benefit, net of deferred acquisition costs (“DAC”) and deferred sales inducement costs (“DSIC”) amortization of $11 million. In the fourth quarter of 2012, the Company completed a review of its deferred tax balances. This review resulted in adjustments to the Company’s deferred tax balances. In addition, as part of the review, the Company discovered tax return errors for prior years which will be corrected. The net impact of the review resulted in a decrease of income tax expense of $16 million. In the second quarter of 2012, the Company made a correction for a tax item related to prior periods, which resulted in a $32 million decrease to net income attributable to Ameriprise Financial. The Company discovered it had received incomplete data from a third party service provider for securities lending activities that resulted in the miscalculation of the Company’s dividend received deduction and foreign tax credit, which resulted in an understatement of taxes payable and an overstatement of reported earnings in prior periods. The Company resolved the data issue and stopped the securities lending that negatively impacted its tax position. Management determined that the effect of these corrections was not material to current and previously issued financial statements. | |
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. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Summary of Significant Accounting Policies | ' | |
Summary of Significant Accounting Policies | ||
Principles of Consolidation | ||
The Company consolidates entities in which it holds a greater than 50% voting interest, or when certain conditions are met for VIEs and limited partnerships. Entities in which the Company exercises significant influence or holds a greater than 20% but less than 50% voting interest are accounted for under the equity method. All other investments that are not reported at fair value as trading or Available-for-Sale securities are accounted for under the cost method where the Company owns less than a 20% voting interest and does not exercise significant influence. | ||
A VIE is an entity that either has equity investors that lack certain essential characteristics of a controlling financial interest (including substantive voting rights, the obligation to absorb the entity’s losses, or the rights to receive the entity’s returns) or has equity investors that do not provide sufficient financial resources for the entity to support its activities. A VIE is required to be assessed for consolidation under two models: | ||
• | If the VIE is a money market fund or is an investment company, or has the financial characteristics of an investment company, and the following is true: | |
(i) | the entity does not have an explicit or implicit obligation to fund the investment company’s losses; and | |
(ii) | the investment company is not a securitization entity, asset backed financing entity, or an entity previously considered a qualifying special purpose entity, | |
then, the VIE will be consolidated by the entity that determines it stands to absorb a majority of the VIE’s expected losses or to receive a majority of the VIE’s expected residual returns. Examples of entities that are likely to be assessed for consolidation under this framework include hedge funds, property funds, private equity funds and venture capital funds. | ||
• | If the VIE does not meet the criteria above, the VIE will be consolidated by the entity that determines it has both: | |
(i) | the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and | |
(ii) | the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. | |
When determining whether the Company stands to absorb the majority of a VIE’s expected losses or receive a majority of a VIE’s expected returns, it analyzes the design of the VIE to identify the variable interests it holds. Then the Company quantitatively determines whether its variable interests will absorb a majority of the VIE’s variability. If the Company determines it has control over the activities that most significantly impact the economic performance of the VIE and it will absorb a majority of the VIE’s expected variability, the Company consolidates the VIE. The calculation of variability is based on an analysis of projected probability-weighted cash flows based on the design of the particular VIE. When determining whether the Company has the power and the obligation to absorb losses or rights to receive benefits from the VIE that could potentially be significant, the Company qualitatively determines if its variable interests meet these criteria. If the Company consolidates a VIE under either scenario, it is referred to as the VIE’s primary beneficiary. | ||
The Company consolidates certain limited partnerships that are not VIEs, for which the Company is the general partner and is determined to control the limited partnership. As a general partner, the Company is presumed to control the limited partnership unless the limited partners have the ability to dissolve the partnership or have substantive participating rights. | ||
Foreign Currency Translation | ||
Net assets of foreign subsidiaries, whose functional currency is other than the U.S. dollar, are translated into U.S. dollars based upon exchange rates prevailing at the end of each period. The resulting translation adjustment, along with any related hedge and tax effects, are included in accumulated other comprehensive income. Revenues and expenses are translated at average exchange rates during the period. | ||
Amounts Based on Estimates and Assumptions | ||
Accounting estimates are an integral part of the Consolidated Financial Statements. In part, they are based upon assumptions concerning future events. Among the more significant are those that relate to investment securities valuation and recognition of other-than-temporary impairments, DAC and the corresponding recognition of DAC amortization, derivative instruments and hedging activities, litigation and claims reserves and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ. | ||
Cash and Cash Equivalents | ||
Cash equivalents include time deposits and other highly liquid investments with original maturities of 90 days or less. | ||
Investments | ||
Available-for-Sale Securities | ||
Available-for-Sale securities are carried at fair value with unrealized gains (losses) recorded in accumulated other comprehensive income, net of impacts to DAC, DSIC, certain benefit reserves, reinsurance recoverables and income taxes. Gains and losses are recognized on a trade date basis in the Consolidated Statements of Operations upon disposition of the securities. | ||
When the fair value of an investment is less than its amortized cost, the Company assesses whether or not: (i) it has the intent to sell the security (made a decision to sell) or (ii) it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If either of these conditions is met, an other-than-temporary impairment is considered to have occurred and the Company must recognize an other-than-temporary impairment for the difference between the investment’s amortized cost basis and its fair value through earnings. For securities that do not meet the above criteria and the Company does not expect to recover a security’s amortized cost basis, the security is also considered other-than-temporarily impaired. For these securities, the Company separates the total impairment into the credit loss component and the amount of the loss related to other factors. The amount of the total other-than-temporary impairment related to credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to other factors is recognized in other comprehensive income, net of impacts to DAC, DSIC, certain benefit reserves, reinsurance recoverables and income taxes. For Available-for-Sale securities that have recognized an other-than-temporary impairment through earnings, the difference between the amortized cost basis and the cash flows expected to be collected is accreted as interest income, if through subsequent evaluation there is a sustained increase in the cash flow expected. Subsequent increases and decreases in the fair value of Available-for-Sale securities are included in other comprehensive income. | ||
The Company provides a supplemental disclosure on the face of its Consolidated Statements of Operations that presents: (i) total other-than-temporary impairment losses recognized during the period and (ii) the portion of other-than-temporary impairment losses recognized in other comprehensive income. The sum of these amounts represents the credit-related portion of other-than-temporary impairments that were recognized in earnings during the period. The portion of other-than-temporary losses recognized in other comprehensive income includes: (i) the portion of other-than-temporary impairment losses related to factors other than credit recognized during the period and (ii) reclassifications of other-than-temporary impairment losses previously determined to be related to factors other than credit that are determined to be credit-related in the current period. The amount presented on the Consolidated Statements of Operations as the portion of other-than-temporary losses recognized in other comprehensive income excludes subsequent increases and decreases in the fair value of these securities. | ||
For all securities that are considered temporarily impaired, the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. The Company believes that it will collect all principal and interest due on all investments that have amortized cost in excess of fair value that are considered only temporarily impaired. | ||
Factors the Company considers in determining whether declines in the fair value of fixed maturity securities are other-than-temporary include: (i) the extent to which the market value is below amortized cost; (ii) the duration of time in which there has been a significant decline in value; (iii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iv) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors. In order to determine the amount of the credit loss component for corporate debt securities considered other-than-temporarily impaired, a best estimate of the present value of cash flows expected to be collected discounted at the security’s effective interest rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and the Company’s position in the debtor’s overall capital structure. | ||
For structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities and asset backed securities), the Company also considers factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections in assessing potential other-than-temporary impairments of these investments. Based upon these factors, securities that have indicators of potential other-than-temporary impairment are subject to detailed review by management. Securities for which declines are considered temporary continue to be carefully monitored by management. | ||
Mortgage Loans, Net | ||
Mortgage loans, net reflect the Company’s interest in commercial mortgage loans and consumer loans secured by residential properties, less the related allowance for loan losses. | ||
Policy and Certificate Loans | ||
Policy and certificate loans include life insurance policy, annuity and investment certificate loans and are reflected within investments at the unpaid principal balance, plus accrued interest. | ||
Other Investments | ||
Other investments primarily reflect the Company’s interests in affordable housing partnerships, trading securities, seed money investments and syndicated loans. Affordable housing partnerships and seed money investments are accounted for under the equity method. Trading securities primarily include common stocks and trading bonds. Trading securities are carried at fair value with unrealized and realized gains (losses) recorded within net investment income. | ||
Financing Receivables | ||
Commercial Mortgage Loans, Syndicated Loans, and Consumer Loans | ||
Commercial mortgage loans, syndicated loans and consumer loans are reflected within investments at amortized cost less the allowance for loan losses. Syndicated loans represent the Company’s investment in below investment grade loan syndications and are carried at amortized cost less the related allowance for loan losses. Interest income is accrued on the unpaid principal balances of the loans as earned. | ||
In January 2013, the Company completed the conversion of its federal savings bank subsidiary, Ameriprise Bank, FSB (“Ameriprise Bank”), to a limited powers national trust bank now known as Ameriprise National Trust Bank. As a result of the conversion, Ameriprise National Trust Bank is no longer engaged in credit-origination activities. In 2012, the Company sold Ameriprise Bank’s consumer loan portfolio, including first mortgages, home equity loans, home equity lines of credit and unsecured loans to affiliates of Ameriprise Bank and it sold Ameriprise Bank’s credit card account portfolio to Barclays Bank Delaware (“Barclays”). | ||
Other Loans | ||
Other loans consist of policy and certificate loans and brokerage margin loans. When originated, policy and certificate loan balances do not exceed the cash surrender value of the underlying products. As there is minimal risk of loss related to policy and certificate loans, the Company does not record an allowance for loan losses. The Company’s broker dealer subsidiaries enter into lending arrangements with clients through the normal course of business, which are primarily based on customer margin levels. Margin loans are reported at the unpaid principal balance within receivables. The Company monitors the market value of collateral supporting the margin loans and requests additional collateral when necessary in order to mitigate the risk of loss. As there is minimal risk of loss related to margin loans, the allowance for loan losses is immaterial. | ||
Nonaccrual Loans | ||
Generally, loans are evaluated for or placed on nonaccrual status when either the collection of interest or principal has become 90 days past due or is otherwise considered doubtful of collection. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Interest payments received on loans on nonaccrual status are generally applied to principal or in accordance with the loan agreement unless the remaining principal balance has been determined to be fully collectible. | ||
Revolving unsecured consumer lines are charged off at 180 days past due. Closed-end consumer loans, other than loans secured by one to four family properties, are charged off at 120 days past due and are generally not placed on nonaccrual status. Loans secured by one to four family properties are charged off when management determines the assets are uncollectible and commences foreclosure proceedings on the property, at which time the property is written down to fair value less selling costs and recorded as real estate owned in other assets. Commercial mortgage loans are evaluated for impairment when the loan is considered for nonaccrual status, restructured or foreclosure proceedings are initiated on the property. If it is determined that the fair value is less than the current loan balance, it is written down to fair value less selling costs. Foreclosed property is recorded as real estate owned in other assets. Syndicated loans are placed on nonaccrual status when management determines it will not collect all contractual principal and interest on the loan. | ||
Allowance for Loan Losses | ||
Management determines the adequacy of the allowance for loan losses by portfolio based on the overall loan portfolio composition, recent and historical loss experience, and other pertinent factors, including when applicable, internal risk ratings, loan-to-value (“LTV”) ratios, FICO scores of the borrower, debt service coverage and occupancy rates, along with economic and market conditions. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change. | ||
The Company determines the amount of the allowance required for certain sectors based on management’s assessment of relative risk characteristics of the loan portfolio. The allowance is recorded for homogeneous loan categories on a pool basis, based on an analysis of product mix and risk characteristics of the portfolio, including geographic concentration, bankruptcy experiences, and historical losses, adjusted for current trends and market conditions. | ||
While the Company attributes portions of the allowance to specific loan pools as part of the allowance estimation process, the entire allowance is available to absorb losses inherent in the total loan portfolio. The allowance is increased through provisions charged to net investment income and reduced/increased by net charge-offs/recoveries. | ||
Impaired Loans | ||
The Company considers a loan to be impaired when, based on current information and events, it is probable the Company will not be able to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. Impaired loans may also include loans that have been modified in troubled debt restructurings as a concession to borrowers experiencing financial difficulties. Management evaluates for impairment all restructured loans and loans with higher impairment risk factors. Factors used by the Company to determine whether all amounts due on commercial mortgage loans will be collected, include but are not limited to, the financial condition of the borrower, performance of the underlying properties, collateral and/or guarantees on the loan, and the borrower’s estimated future ability to pay based on property type and geographic location. The evaluation of impairment on consumer loans is primarily driven by delinquency status of individual loans. The impairment recognized is measured as the excess of the loan’s recorded investment over: (i) the present value of its expected principal and interest payments discounted at the loan’s effective interest rate, (ii) the fair value of collateral or (iii) the loan’s observable market price. | ||
Restructured Loans | ||
A loan is classified as a restructured loan when the Company makes certain concessionary modifications to contractual terms for borrowers experiencing financial difficulties. When the interest rate, minimum payments, and/or due dates have been modified in an attempt to make the loan more affordable to a borrower experiencing financial difficulties, the modification is considered a troubled debt restructuring. Generally, performance prior to the restructuring or significant events that coincide with the restructuring are considered in assessing whether the borrower can meet the new terms which may result in the loan being returned to accrual status at the time of the restructuring or after a performance period. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status. | ||
Separate Account Assets and Liabilities | ||
Separate account assets and liabilities are primarily funds held for the exclusive benefit of variable annuity contractholders and variable life insurance policyholders, who assume the related investment risk. Income and losses on separate account assets accrue directly to the contractholder or policyholder and are not reported in the Company’s Consolidated Statements of Operations. Separate account assets are recorded at fair value. Changes in the fair value of separate account assets are offset by changes in the related separate account liabilities. The Company receives investment management fees, mortality and expense risk fees, guarantee fees and cost of insurance charges from the related accounts. | ||
Included in separate account assets and liabilities is the value of the units in issue of the pooled pension funds that are offered by Threadneedle’s subsidiary, Threadneedle Pensions Limited. | ||
Restricted and Segregated Cash and Investments | ||
Total restricted cash at December 31, 2013 and 2012 was $27 million and $107 million, respectively, which cannot be utilized for operations. The Company’s restricted cash at December 31, 2013 and 2012 was primarily cash held by Threadneedle for regulatory purposes and cash that has been pledged to counterparties. At December 31, 2013 and 2012, amounts segregated under federal and other regulations were $2.3 billion and $2.4 billion, respectively, segregated in special reserve bank accounts for the exclusive benefit of the Company’s brokerage customers. | ||
Land, Buildings, Equipment and Software | ||
Land, buildings, equipment and internally developed or purchased software are carried at cost less accumulated depreciation or amortization and are reflected within other assets. The Company generally uses the straight-line method of depreciation and amortization over periods ranging from three to 39 years. At December 31, 2013 and 2012, land, buildings, equipment and software were $705 million and $753 million, respectively, net of accumulated depreciation of $1.3 billion and $1.2 billion, respectively. Depreciation and amortization expense for the years ended December 31, 2013, 2012 and 2011 was $144 million, $152 million and $143 million, respectively. | ||
Goodwill and Other Intangible Assets | ||
Goodwill represents the amount of an acquired company’s acquisition cost in excess of the fair value of assets acquired and liabilities assumed. The Company evaluates goodwill for impairment annually on the measurement date of July 1 and whenever events and circumstances indicate that an impairment may have occurred, such as a significant adverse change in the business climate or a decision to sell or dispose of a reporting unit. The Company assesses various qualitative factors to determine whether impairment is likely to have occurred. If impairment were to occur, the Company would use the discounted cash flow method, a variation of the income approach. | ||
Intangible assets are amortized over their estimated useful lives unless they are deemed to have indefinite useful lives. The Company evaluates the definite lived intangible assets remaining useful lives annually and tests for impairment whenever events and circumstances indicate that an impairment may have occurred, such as a significant adverse change in the business climate. For definite lived intangible assets, impairment to fair value is recognized if the carrying amount is not recoverable. Indefinite lived intangibles are also tested for impairment annually or whenever circumstances indicate an impairment may have occurred. | ||
Impairment is the amount carrying value exceeds fair value. | ||
Goodwill and other intangible assets are reflected in other assets. | ||
Derivative Instruments and Hedging Activities | ||
Freestanding derivative instruments are recorded at fair value and are reflected in other assets or other liabilities. The Company’s policy is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. The Company primarily uses derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. The Company occasionally designates derivatives as (i) hedges of changes in the fair value of assets, liabilities, or firm commitments (“fair value hedges”), (ii) hedges of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedges”), or (iii) hedges of foreign currency exposures of net investments in foreign operations (“net investment hedges in foreign operations”). | ||
Derivative instruments that are entered into for hedging purposes are designated as such at the time the Company enters into the contract. For all derivative instruments that are designated for hedging activities, the Company formally documents all of the hedging relationships between the hedge instruments and the hedged items at the inception of the relationships. Management also formally documents its risk management objectives and strategies for entering into the hedge transactions. The Company formally assesses, at inception and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of hedged items. If it is determined that a derivative is no longer highly effective as a hedge, the Company will discontinue the application of hedge accounting. | ||
For derivative instruments that do not qualify for hedge accounting or are not designated as accounting hedges, changes in fair value are recognized in current period earnings. Changes in fair value of derivatives are presented in the Consolidated Statements of Operations based on the nature and use of the instrument. Changes in fair value of derivatives used as economic hedges are presented in the Consolidated Statements of Operations with the corresponding change in the hedged asset or liability. | ||
For derivative instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as changes in the fair value of the hedged assets, liabilities or firm commitments, are recognized on a net basis in current period earnings. The carrying value of the hedged item is adjusted for the change in fair value from the designated hedged risk. If a fair value hedge designation is removed or the hedge is terminated prior to maturity, previous adjustments to the carrying value of the hedged item are recognized into earnings over the remaining life of the hedged item. | ||
For derivative instruments that qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is reported in accumulated other comprehensive income and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Operations with the hedged instrument or transaction impact. Any ineffective portion of the gain or loss is reported in current period earnings as a component of net investment income. If a hedge designation is removed or a hedge is terminated prior to maturity, the amount previously recorded in accumulated other comprehensive income is reclassified to earnings over the period that the hedged item impacts earnings. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in accumulated other comprehensive income are recognized in earnings immediately. | ||
For derivative instruments that qualify as net investment hedges in foreign operations, the effective portion of the change in fair value of the derivatives is recorded in accumulated other comprehensive income as part of the foreign currency translation adjustment. Any ineffective portion of the net investment hedges in foreign operations is recognized in net investment income during the period of change. | ||
The equity component of equity indexed annuity (“EIA”), indexed universal life (“IUL”) and stock market certificate obligations are considered embedded derivatives. Additionally, certain annuities contain GMAB and GMWB provisions. The GMAB and the non-life contingent benefits associated with GMWB provisions are also considered embedded derivatives. | ||
See Note 14 for information regarding the Company’s fair value measurement of derivative instruments and Note 16 for the impact of derivatives on the Consolidated Statements of Operations. | ||
Deferred Acquisition Costs | ||
The Company incurs costs in connection with acquiring new and renewal insurance and annuity businesses. The portion of these costs which are incremental and direct to the acquisition of a new or renewal insurance policy or annuity contract are deferred. Significant costs capitalized by the Company include sales based compensation related to the acquisition of new and renewal insurance policies and annuity contracts, medical inspection costs for successful sales, and a portion of employee compensation and benefit costs based upon the amount of time spent on successful sales. Sales based compensation paid to advisors and employees and third-party distributors is capitalized. Employee compensation and benefits costs which are capitalized relate primarily to sales efforts, underwriting and processing. All other costs which are not incremental direct costs of acquiring an insurance policy or annuity contract are expensed as incurred. The DAC associated with insurance policies or annuity contracts that are significantly modified or internally replaced with another contract are accounted for as contract terminations. These transactions are anticipated in establishing amortization periods and other valuation assumptions. | ||
Costs deferred as DAC are amortized over time. For annuity and universal life (“UL”) contracts, DAC are amortized based on projections of estimated gross profits over amortization periods equal to the approximate life of the business. For other insurance products, DAC are generally amortized as a percentage of premiums over amortization periods equal to the premium-paying period. For certain mutual fund products, DAC are generally amortized over fixed periods on a straight-line basis adjusted for redemptions. | ||
For annuity and UL insurance products, the assumptions made in projecting future results and calculating the DAC balance and DAC amortization expense are management’s best estimates. Management is required to update these assumptions whenever it appears that, based on actual experience or other evidence, earlier estimates should be revised. When assumptions are changed, the percentage of estimated gross profits used to amortize DAC might also change. A change in the required amortization percentage is applied retrospectively; an increase in amortization percentage will result in a decrease in the DAC balance and an increase in DAC amortization expense, while a decrease in amortization percentage will result in an increase in the DAC balance and a decrease in DAC amortization expense. The impact on results of operations of changing assumptions can be either positive or negative in any particular period and is reflected in the period in which such changes are made. | ||
For other life and health insurance products, the assumptions made in calculating the DAC balance and DAC amortization expense are consistent with those used in determining the liabilities and, therefore, are intended to provide for adverse deviations in experience and are revised only if management concludes experience will be so adverse that DAC are not recoverable. If management concludes that DAC are not recoverable, DAC are reduced to the amount that is recoverable based on best estimate assumptions and there is a corresponding expense recorded in the Consolidated Statements of Operations. | ||
For annuity, life and health insurance products, key assumptions underlying those long-term projections include interest rates (both earning rates on invested assets and rates credited to contractholder and policyholder accounts), equity market performance, mortality and morbidity rates and the rates at which contractholders and policyholders are expected to surrender their contracts, make withdrawals from their contracts and make additional deposits to their contracts. Assumptions about earned and credited interest rates are the primary factors used to project interest margins, while assumptions about equity and bond market performance are the primary factors used to project client asset value growth rates, and assumptions about surrenders, withdrawals and deposits comprise projected persistency rates. Management must also make assumptions to project maintenance expenses associated with servicing the Company’s annuity and insurance businesses during the DAC amortization period. | ||
The client asset value growth rates are the rates at which variable annuity and variable universal life (“VUL”) insurance contract values invested in separate accounts are assumed to appreciate in the future. The rates used vary by equity and fixed income investments. Management reviews and, where appropriate, adjusts its assumptions with respect to client asset value growth rates on a regular basis. The Company typically uses a five-year mean reversion process as a guideline in setting near-term equity fund growth rates based on a long-term view of financial market performance as well as recent actual performance. The suggested near-term equity fund growth rate is reviewed quarterly to ensure consistency with management’s assessment of anticipated equity market performance. DAC amortization expense recorded in a period when client asset value growth rates exceed management’s near-term estimate will typically be less than in a period when growth rates fall short of management’s near-term estimate. | ||
The Company monitors other principal DAC amortization assumptions, such as persistency, mortality, morbidity, interest margin and maintenance expense levels each quarter and, when assessed independently, each could impact the Company’s DAC balances. | ||
The analysis of DAC balances and the corresponding amortization is a dynamic process that considers all relevant factors and assumptions described previously. Unless the Company’s management identifies a significant deviation over the course of the quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year. | ||
Deferred Sales Inducement Costs | ||
Sales inducement costs consist of bonus interest credits and premium credits added to certain annuity contract and insurance policy values. These benefits are capitalized to the extent they are incremental to amounts that would be credited on similar contracts without the applicable feature. The amounts capitalized are amortized using the same methodology and assumptions used to amortize DAC. DSIC is recorded in other assets, and amortization of DSIC is recorded in benefits, claims, losses and settlement expenses. | ||
Reinsurance | ||
The Company cedes significant amounts of insurance risk to other insurers under reinsurance agreements. Reinsurance premiums paid and benefits received are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Reinsurance premiums for traditional life, long term care (“LTC”), disability income (“DI”) and auto and home, net of the change in any prepaid reinsurance asset, are reported as a reduction of premiums. Fixed and variable universal life reinsurance premiums are reported as a reduction of other revenues. In addition, for fixed and variable universal life insurance policies, the net cost of reinsurance ceded, which represents the discounted amount of the expected cash flows between the reinsurer and the Company, is recognized as an asset and amortized over the term of the reinsurance contract, in proportion to the estimated gross profits and is subject to retrospective adjustment in a manner similar to retrospective adjustment of DAC. The assumptions used to project the expected cash flows are consistent with those used for DAC valuation for the same contracts. Changes in the net cost of reinsurance are reflected as a component of other revenues. Reinsurance recoveries are reported as components of benefits, claims, losses and settlement expenses. | ||
Insurance liabilities are reported before the effects of reinsurance. Policyholder account balances, future policy benefits and claims recoverable under reinsurance contracts are recorded within receivables. | ||
The Company also assumes life insurance and fixed annuity risk from other insurers in limited circumstances. Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Liabilities for assumed business are recorded within policyholder account balances, future policy benefits and claims. | ||
See Note 7 for additional information on reinsurance. | ||
Policyholder Account Balances, Future Policy Benefits and Claims | ||
Fixed Annuities and Variable Annuity Guarantees | ||
Fixed annuities and variable annuity guarantees include amounts for fixed account values on fixed and variable deferred annuities, guaranteed benefits associated with variable annuities, equity indexed annuities and fixed annuities in a payout status. | ||
Liabilities for fixed account values on fixed and variable deferred annuities are equal to accumulation values, which are the cumulative gross deposits and credited interest less withdrawals and various charges. | ||
The majority of the variable annuity contracts offered by the Company contain guaranteed minimum death benefit (“GMDB”) provisions. When market values of the customer’s accounts decline, the death benefit payable on a contract with a GMDB may exceed the contract accumulation value. The Company also offers variable annuities with 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. In addition, the Company offers contracts containing GMWB and GMAB provisions, and until May 2007, the Company offered contracts containing guaranteed minimum income benefit (“GMIB”) provisions. | ||
In determining the liabilities for GMDB, GMIB and the life contingent benefits associated with GMWB, the Company projects these benefits and contract assessments using actuarial models to simulate various equity market scenarios. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency and investment margins and are consistent with those used for DAC valuation for the same contracts. As with DAC, management reviews and, where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year. | ||
The GMDB liability is determined by estimating the expected value of death benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated meaningful life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees). | ||
If elected by the contract owner and after a stipulated waiting period from contract issuance, a GMIB guarantees a minimum lifetime annuity based on a specified rate of contract accumulation value growth and predetermined annuity purchase rates. The GMIB liability is determined each period by estimating the expected value of annuitization benefits in excess of the projected contract accumulation value at the date of annuitization and recognizing the excess over the estimated meaningful life based on expected assessments. | ||
The fair value of embedded derivatives related to GMAB and the non-life contingent benefits associated with GMWB provisions fluctuates based on equity, interest rate and credit markets which can cause these embedded derivatives to be either an asset or a liability. These embedded derivatives are recorded in policyholder account balances, future policy benefits and claims. See Note 14 for information regarding the fair value measurement of embedded derivatives. The liability for the life contingent benefits associated with GMWB provisions is determined in the same way as the GMDB liability. Significant assumptions made in projecting future benefits and fees relate to persistency and benefit utilization. Management reviews, and where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year. The changes in both the fair values of the GMWB and GMAB embedded derivatives and the liability for life contingent benefits are reflected in benefits, claims, losses and settlement expenses. | ||
Liabilities for equity indexed annuities are equal to the host contract values covering guaranteed benefits and the fair value of embedded equity options. | ||
Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates. | ||
Life and Health Insurance | ||
Life and health insurance includes liabilities for fixed account values on fixed and variable universal life policies, liabilities for indexed accounts of IUL products, liabilities for unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that will become payable on term life, whole life and health insurance policies as claims are incurred in the future. | ||
Liabilities for fixed account values on fixed and variable universal life insurance are equal to accumulation values. Accumulation values are the cumulative gross deposits and credited interest less various contractual expense and mortality charges and less amounts withdrawn by policyholders. | ||
Liabilities for indexed accounts of IUL products are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options. | ||
A portion of the Company’s fixed and variable universal life policies have product features that result in profits followed by losses from the insurance component of the contract. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the contract. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. | ||
In determining the liability for contracts with profits followed by losses, the Company projects benefits and contract assessments using actuarial models. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency and investment margins and are consistent with those used for DAC valuation for the same contracts. As with DAC, management reviews, and where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year. | ||
The liability for these future losses is determined by estimating the death benefits in excess of account value and recognizing the excess over the estimated meaningful life based on expected assessments (e.g. cost of insurance charges, contractual administrative charges, similar fees and investment margin). See Note 10 for information regarding the liability for contracts with secondary guarantees. | ||
Liabilities for unpaid amounts on reported life insurance claims are equal to the death benefits payable under the policies. Liabilities for unpaid amounts on reported health insurance claims include any periodic or other benefit amounts due and accrued, along with estimates of the present value of obligations for continuing benefit payments. These amounts are calculated based on claim continuance tables which estimate the likelihood an individual will continue to be eligible for benefits. Present values are calculated at interest rates established when claims are incurred. Anticipated claim continuance rates are based on established industry tables, adjusted as appropriate for the Company’s experience. | ||
Liabilities for estimated benefits payable on claims that have been incurred but not yet reported are based on periodic analysis of the actual time lag between when a claim occurs and when it is reported. | ||
Liabilities for estimates of benefits that will become payable on future claims on term life, whole life and health insurance policies are based on the net level premium method, using anticipated premium payments, mortality and morbidity rates, policy persistency and interest rates earned on assets supporting the liability. Anticipated mortality and morbidity rates are based on established industry mortality and morbidity tables, with modifications based on the Company’s experience. Anticipated premium payments and persistency rates vary by policy form, issue age, policy duration and certain other pricing factors. | ||
Changes in policyholder account balances, future policy benefits and claims are reflected in earnings in the period adjustments are made. | ||
Where applicable, benefit amounts expected to be recoverable from reinsurance companies who share in the risk are separately recorded as reinsurance recoverable within receivables. | ||
Auto and Home Reserves | ||
Auto and home reserves include amounts determined from loss reports on individual claims, as well as amounts based on historical loss experience for losses incurred but not yet reported. Such liabilities are based on estimates and, while management believes that the reserve amounts were adequate at December 31, 2013 and 2012, the ultimate liability may be in excess of or less than the amounts provided. The Company’s methods for making such estimates and for establishing the resulting liabilities are continually reviewed, and any adjustments are reflected in earnings in the period such adjustments are made. | ||
Share-Based Compensation | ||
The Company measures and recognizes the cost of share-based awards granted to employees and directors based on the grant-date fair value of the award and recognizes the expense on a straight-line basis over the vesting period. The fair value of each option is estimated on the grant date using a Black-Scholes option-pricing model. The Company recognizes the cost of share-based awards granted to independent contractors on a fair value basis until the award is fully vested. | ||
Income Taxes | ||
The Company’s provision for income taxes represents the net amount of income taxes that the Company expects to pay or to receive from various taxing jurisdictions in connection with its operations. The Company provides for income taxes based on amounts that the Company believes it will ultimately owe taking into account the recognition and measurement for uncertain tax positions. Inherent in the provision for income taxes are estimates and judgments regarding the tax treatment of certain items. | ||
In connection with the provision for income taxes, the Consolidated Financial Statements reflect certain amounts related to deferred tax assets and liabilities, which result from temporary differences between the assets and liabilities measured for financial statement purposes versus the assets and liabilities measured for tax return purposes. | ||
The Company is required to establish a valuation allowance for any portion of its deferred tax assets that management believes will not be realized. Significant judgment is required in determining if a valuation allowance should be established and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business including the ability to generate capital gains. Consideration is given to, among other things in making this determination: (i) future taxable income exclusive of reversing temporary differences and carryforwards; (ii) future reversals of existing taxable temporary differences; (iii) taxable income in prior carryback years; and (iv) tax planning strategies. Management may need to identify and implement appropriate planning strategies to ensure its ability to realize deferred tax assets and avoid the establishment of a valuation allowance with respect to such assets. In the opinion of management, it is currently more likely than not that the Company will not realize the full benefit of certain state deferred tax assets, primarily state net operating losses, and therefore a valuation allowance of $19 million has been established at December 31, 2013. | ||
Sources of Revenue | ||
The Company generates revenue from a wide range of investment and insurance products. Principal sources of revenue include management and financial advice fees, distribution fees, net investment income and premiums. | ||
Management and Financial Advice Fees | ||
Management and financial advice fees relate primarily to fees earned from managing mutual funds, separate account and wrap account assets and institutional investments, as well as fees earned from providing financial advice and administrative services (including transfer agent, administration and custodial fees earned from providing services to retail mutual funds). Management and financial advice fees also include mortality and expense risk fees earned on separate account assets. | ||
The Company’s management fees are generally accrued daily and collected monthly. A significant portion of the Company’s management fees are calculated as a percentage of the fair value of its managed assets. A large majority of the Company’s managed assets are valued by third party pricing services vendors based upon observable market data. The selection of the Company’s third party pricing services vendors and the reliability of their prices are subject to certain governance procedures, such as exception reporting, subsequent transaction testing, and annual due diligence of the Company’s vendors, which includes assessing the vendor’s valuation qualifications, control environment, analysis of asset-class specific valuation methodologies and understanding of sources of market observable assumptions. | ||
The Company may receive performance-based incentive fees from hedge funds, Threadneedle Open Ended Investment Companies or other structured investments that it manages. The annual performance fees for structured investments are recognized as revenue at the time the performance fee is finalized or no longer subject to adjustment. All other performance fees are based on a full contract year and are final at the end of the contract year. Any performance fees received are not subject to repayment or any other clawback provisions. | ||
Employee benefit plan and institutional investment management and administration services fees are negotiated and are also generally based on underlying asset values. Fees from financial planning and advice services are recognized when the financial plan is delivered. | ||
Distribution Fees | ||
Distribution fees primarily include point-of-sale fees (such as mutual fund front-end sales loads) and asset-based fees (such as 12b-1 distribution and shareholder service fees) that are generally based on a contractual percentage of assets and recognized when earned. Distribution fees also include amounts received under marketing support arrangements for sales of mutual funds and other companies’ products, such as through the Company’s wrap accounts, as well as surrender charges on fixed and variable universal life insurance and annuities, which are recognized when assessed. | ||
Net Investment Income | ||
Net investment income primarily includes interest income on fixed maturity securities classified as Available-for-Sale, mortgage loans, policy and certificate loans, other investments, cash and cash equivalents and investments of consolidated investment entities; the changes in fair value of trading securities, certain derivatives and certain assets and liabilities of consolidated investment entities; the pro rata share of net income or loss on equity method investments; and realized gains and losses on the sale of securities and charges for other-than-temporary impairments of investments related to credit losses. Interest income is accrued as earned using the effective interest method, which makes an adjustment of the yield for security premiums and discounts on all performing fixed maturity securities classified as Available-for-Sale so that the related security or loan recognizes a constant rate of return on the outstanding balance throughout its term. Realized gains and losses on securities, other than trading securities and equity method investments, are recognized using the specific identification method on a trade date basis. | ||
Premiums | ||
Premiums include premiums on auto and home insurance, traditional life and health (DI and LTC) insurance and immediate annuities with a life contingent feature. Premiums on auto and home insurance are net of reinsurance premiums and are recognized ratably over the coverage period. Premiums on traditional life, health insurance and immediate annuities with a life contingent feature are net of reinsurance ceded and are recognized as revenue when due. | ||
Other Revenues | ||
Other revenues primarily include charges assessed on fixed and variable universal life insurance which consist of cost of insurance charges, net of reinsurance and cost of reinsurance for UL insurance products and variable annuity guaranteed benefit rider charges. These charges are recognized as revenue when assessed. The Company also records revenue related to consolidated pooled investment vehicles managed by Threadneedle. These revenues primarily represent rental income of managed properties and are recognized on a straight line basis over the term of the lease. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
Adoption of New Accounting Standards | |
Comprehensive Income | |
In February 2013, the Financial Accounting Standards Board (“FASB”) updated the accounting standard related to comprehensive income. The update requires entities to provide information about significant amounts reclassified out of accumulated other comprehensive income (“AOCI”). The standard is effective for interim and annual periods beginning after December 15, 2012 and is required to be applied prospectively. The Company adopted the standard in the first quarter of 2013. The adoption of the standard did not have any effect on the Company’s consolidated results of operations and financial condition. See Note 13 for the required disclosures. | |
Balance Sheet | |
In December 2011, the FASB updated the accounting standards to require new disclosures about offsetting assets and liabilities. The standard requires an entity to disclose both gross and net information about certain financial instruments and transactions subject to master netting arrangements (or similar agreements) or eligible for offset in the statement of financial position. The standard is effective for interim and annual periods beginning on or after January 1, 2013 on a retrospective basis. The Company adopted the standard in the first quarter of 2013. The adoption of the standard did not have any effect on the Company’s consolidated results of operations and financial condition. See Note 15 for the required disclosures. | |
Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts | |
In October 2010, the FASB updated the accounting standard for DAC. Under this new standard, only the following costs incurred in the acquisition of new and renewal insurance contracts are capitalizable as DAC: (i) incremental direct costs of a successful contract acquisition, (ii) portions of employees’ compensation and benefits directly related to time spent performing acquisition activities (that is, underwriting, policy issuance and processing, medical and inspection, and contract selling) for a contract that has been acquired, (iii) other costs related to acquisition activities that would not have been incurred had the acquisition of the contract not occurred, and (iv) advertising costs that meet the capitalization criteria in other GAAP guidance for certain direct-response marketing. All other acquisition related costs are expensed as incurred. The Company retrospectively adopted the new standard on January 1, 2012. The cumulative effect of the adoption reduced retained earnings by $1.4 billion after-tax and increased AOCI by $113 million after-tax, totaling to a $1.3 billion after-tax reduction in total equity at January 1, 2012. | |
Future Adoption of New Accounting Standards | |
Receivables - Troubled Debt Restructuring by Creditors | |
In January 2014, the FASB updated the accounting standard related to recognizing residential real estate obtained through a repossession or foreclosure from a troubled debtor. The update clarifies the criteria for derecognition of the loan receivable and recognition of the real estate property. The standard is effective for interim and annual periods beginning after December 15, 2014 and can be applied under a modified retrospective transition method or a prospective transition method. Early adoption is permitted. The adoption of the standard is not expected to have a material impact on the Company’s consolidated results of operations and financial condition. | |
Investments - Equity Method and Joint Ventures | |
In January 2014, the FASB updated the accounting standard related to investments in qualified affordable housing projects. The update allows for an accounting policy election to account for investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the investment in a qualified affordable housing project is amortized in proportion to the tax credits and other tax benefits received. The net investment performance is recognized as a component of income tax expense (benefit). The standard is effective for interim and annual periods beginning after December 15, 2014 and should be applied retrospectively to all periods presented. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated results of operations and financial condition. | |
Income Taxes | |
In July 2013, the FASB updated the accounting standard for income taxes. The update provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The standard is effective for interim and annual periods beginning after December 15, 2013 and should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The adoption of the standard is not expected to have a material impact on the Company’s consolidated results of operations and financial condition. | |
Investment Companies | |
In June 2013, the FASB updated the accounting standard related to investment companies. The guidance does not directly apply to the Company; however, it may impact investment entities that the Company consolidates. The standard provides a new two-tiered approach for determining whether a company is an investment company and requires new disclosures for investment companies. Investment entities the Company consolidates may be required to adopt a different basis of accounting as a result of determining whether they qualify as an investment company under the new guidance. The standard is effective for interim and annual periods beginning after December 15, 2013 and is required to be applied prospectively. The adoption of the standard is not expected to have a material the impact on the Company’s consolidated results of operations and financial condition. |
Consolidated_Investment_Entiti
Consolidated Investment Entities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Consolidated Investment Entities | ' | ||||||||||||||||||||||||
Consolidated Investment Entities | ' | ||||||||||||||||||||||||
Consolidated Investment Entities | |||||||||||||||||||||||||
The Company provides asset management services to various collateralized debt obligations (“CDOs”) and other investment products (collectively, “investment entities”), which are sponsored by the Company. Certain of these investment entities are considered to be VIEs while others are considered to be voting rights entities (“VREs”). The Company consolidates certain of these investment entities. | |||||||||||||||||||||||||
The CDOs managed by the Company are considered VIEs. These CDOs 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 CDO, offering investors various maturity and credit risk characteristics. The debt securities issued by the CDOs are non-recourse to the Company. The CDO’s debt holders have recourse only to the assets of the CDO. The assets of the CDOs cannot be used by the Company. Scheduled debt payments are based on the performance of the CDO’s collateral pool. The Company generally earns management fees from the CDOs based on the par value of outstanding debt and, in certain instances, may also receive performance-based fees. In the normal course of business, the Company has invested in certain CDOs, generally an insignificant portion of the unrated, junior subordinated debt. | |||||||||||||||||||||||||
For certain of the CDOs, the Company has determined that consolidation is required as it has power over the CDOs and holds a variable interest in the CDOs for which the Company has the potential to receive benefits or the potential obligation to absorb losses that are significant to the CDO. For other CDOs managed by the Company, the Company has determined that consolidation is not required as the Company does not hold a variable interest in the CDOs or it does hold a variable interest but does not have the potential to receive benefits or the potential obligation to absorb losses that are significant to the CDO. | |||||||||||||||||||||||||
The Company provides investment advice and related services to private, pooled investment vehicles organized as limited partnerships, limited liability companies or foreign (non-U.S.) entities. Certain of these pooled investment vehicles are considered VIEs while others are VREs. For investment management services, the Company generally earns management fees based on the market value of assets under management, and in certain instances may also receive performance-based fees. The Company provides seed money occasionally to certain of these funds. For certain of the pooled investment vehicles, the Company has determined that consolidation is required as the Company stands to absorb a majority of the entity’s expected losses or receive a majority of the entity’s expected residual returns. For other VIE pooled investment vehicles, the Company has determined that consolidation is not required because the Company is not expected to absorb the majority of the expected losses or receive the majority of the expected residual returns. For the pooled investment vehicles which are VREs, the Company consolidates the structure when it has a controlling financial interest. | |||||||||||||||||||||||||
The Company also provides investment advisory, distribution and other services to the Columbia and Threadneedle mutual fund families. The Company has determined that consolidation is not required for these mutual funds. | |||||||||||||||||||||||||
In addition, the Company may invest in structured investments including VIEs for which it is not the sponsor. These structured investments typically invest in fixed income instruments and are managed by third parties and include asset backed securities, commercial mortgage backed securities and residential mortgage backed securities. The Company includes these investments in Available-for-Sale securities. The Company has determined that it is not the primary beneficiary of these structures due to its relative size, position in the capital structure of these entities and the Company’s lack of power over the structures. The Company’s maximum exposure to loss as a result of its investment in structured investments that it does not consolidate is limited to its carrying value. The Company has no obligation to provide further financial or other support to these structured investments nor has the Company provided any support to these structured investments. See Note 5 for additional information about these structured investments. | |||||||||||||||||||||||||
During 2013, the Company consolidated three new investment entities and added two sub-funds to existing pooled investment vehicles. In addition, three investment entities were liquidated in 2013. | |||||||||||||||||||||||||
Fair Value of Assets and Liabilities | |||||||||||||||||||||||||
The Company categorizes its fair value measurements according to a three-level hierarchy. See Note 14 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: | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||
Corporate debt securities | $ | — | $ | 200 | $ | 2 | $ | 202 | |||||||||||||||||
Common stocks | 147 | 31 | 14 | 192 | |||||||||||||||||||||
Other investments | 3 | 33 | — | 36 | |||||||||||||||||||||
Syndicated loans | — | 4,204 | 368 | 4,572 | |||||||||||||||||||||
Total investments | 150 | 4,468 | 384 | 5,002 | |||||||||||||||||||||
Receivables | — | 32 | — | 32 | |||||||||||||||||||||
Other assets | — | 13 | 1,936 | 1,949 | |||||||||||||||||||||
Total assets at fair value | $ | 150 | $ | 4,513 | $ | 2,320 | $ | 6,983 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Debt | $ | — | $ | — | $ | 4,804 | $ | 4,804 | |||||||||||||||||
Other liabilities | — | 193 | — | 193 | |||||||||||||||||||||
Total liabilities at fair value | $ | — | $ | 193 | $ | 4,804 | $ | 4,997 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||
Corporate debt securities | $ | — | $ | 251 | $ | 3 | $ | 254 | |||||||||||||||||
Common stocks | 91 | 32 | 14 | 137 | |||||||||||||||||||||
Other investments | — | 57 | — | 57 | |||||||||||||||||||||
Syndicated loans | — | 3,720 | 202 | 3,922 | |||||||||||||||||||||
Total investments | 91 | 4,060 | 219 | 4,370 | |||||||||||||||||||||
Receivables | — | 77 | — | 77 | |||||||||||||||||||||
Other assets | — | 2 | 1,214 | 1,216 | |||||||||||||||||||||
Total assets at fair value | $ | 91 | $ | 4,139 | $ | 1,433 | $ | 5,663 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Debt | $ | — | $ | — | $ | 4,450 | $ | 4,450 | |||||||||||||||||
Other liabilities | — | 166 | — | 166 | |||||||||||||||||||||
Total liabilities at fair value | $ | — | $ | 166 | $ | 4,450 | $ | 4,616 | |||||||||||||||||
The following tables provide a summary of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis: | |||||||||||||||||||||||||
Corporate Debt Securities | Common Stocks | Syndicated Loans | Other Assets | Debt | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Balance, January 1, 2013 | $ | 3 | $ | 14 | $ | 202 | $ | 1,214 | $ | (4,450 | ) | ||||||||||||||
Total gains (losses) included in: | |||||||||||||||||||||||||
Net income | — | 1 | (1) | (1 | ) | (1) | 81 | (2) | (53 | ) | (1) | ||||||||||||||
Other comprehensive income (loss) | — | — | — | 39 | — | ||||||||||||||||||||
Purchases | 1 | — | 417 | 689 | — | ||||||||||||||||||||
Sales | (1 | ) | (3 | ) | (63 | ) | (86 | ) | — | ||||||||||||||||
Issues | — | — | — | — | (1,330 | ) | |||||||||||||||||||
Settlements | (1 | ) | — | (51 | ) | — | 1,029 | ||||||||||||||||||
Transfers into Level 3 | — | 21 | 320 | 8 | — | ||||||||||||||||||||
Transfers out of Level 3 | — | (19 | ) | (456 | ) | (9 | ) | — | |||||||||||||||||
Balance, December 31, 2013 | $ | 2 | $ | 14 | $ | 368 | $ | 1,936 | $ | (4,804 | ) | ||||||||||||||
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at December 31, 2013 | $ | — | $ | (2 | ) | (1) | $ | (2 | ) | (1) | $ | 67 | (2) | $ | (25 | ) | (1) | ||||||||
(1) Included in net investment income in the Consolidated Statements of Operations. | |||||||||||||||||||||||||
(2) Included in other revenues in the Consolidated Statements of Operations. | |||||||||||||||||||||||||
Corporate Debt Securities | Common Stocks | Syndicated Loans | Other Assets | Debt | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Balance, January 1, 2012 | $ | 4 | $ | 13 | $ | 342 | $ | 1,108 | $ | (4,712 | ) | ||||||||||||||
Total gains (losses) included in: | |||||||||||||||||||||||||
Net income | — | (1 | ) | (1) | 11 | (1) | (78 | ) | (2) | (316 | ) | (1) | |||||||||||||
Other comprehensive income (loss) | — | — | — | 28 | — | ||||||||||||||||||||
Purchases | — | 7 | 91 | 328 | — | ||||||||||||||||||||
Sales | — | (5 | ) | (14 | ) | (172 | ) | — | |||||||||||||||||
Issues | — | — | — | — | — | ||||||||||||||||||||
Settlements | (1 | ) | — | (87 | ) | — | 578 | ||||||||||||||||||
Transfers into Level 3 | — | 15 | 255 | — | — | ||||||||||||||||||||
Transfers out of Level 3 | — | (15 | ) | (396 | ) | — | — | ||||||||||||||||||
Balance, December 31, 2012 | $ | 3 | $ | 14 | $ | 202 | $ | 1,214 | $ | (4,450 | ) | ||||||||||||||
Changes in unrealized losses included in income relating to assets and liabilities held at December 31, 2012 | $ | — | $ | — | $ | — | $ | (98 | ) | (2) | $ | (315 | ) | (1) | |||||||||||
(1) Included in net investment income in the Consolidated Statements of Operations. | |||||||||||||||||||||||||
(2) Included in other revenues in the Consolidated Statements of Operations. | |||||||||||||||||||||||||
Corporate Debt Securities | Common Stocks | Other Investments | Syndicated Loans | Other Assets | Debt | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Balance, January 1, 2011 | $ | 6 | $ | 11 | $ | 22 | $ | — | $ | 887 | $ | (5,171 | ) | ||||||||||||
Total gains (losses) included in: | |||||||||||||||||||||||||
Net income | — | 6 | (1) | (1 | ) | (1) | (12 | ) | (1) | 13 | (2) | (89 | ) | (1) | |||||||||||
Other comprehensive income (loss) | — | — | — | — | (10 | ) | — | ||||||||||||||||||
Purchases | 3 | — | 3 | 208 | 299 | — | |||||||||||||||||||
Sales | (2 | ) | (4 | ) | — | (40 | ) | (81 | ) | — | |||||||||||||||
Issues | — | — | — | — | — | (27 | ) | ||||||||||||||||||
Settlements | (1 | ) | — | — | (137 | ) | 1 | 575 | |||||||||||||||||
Transfers into Level 3 | — | 29 | — | 615 | 7 | — | |||||||||||||||||||
Transfers out of Level 3 | (2 | ) | (29 | ) | (24 | ) | (292 | ) | (8 | ) | — | ||||||||||||||
Balance, December 31, 2011 | $ | 4 | $ | 13 | $ | — | $ | 342 | $ | 1,108 | $ | (4,712 | ) | ||||||||||||
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at December 31, 2011 | $ | — | $ | 3 | (1) | $ | — | $ | (5 | ) | (1) | $ | 19 | (3) | $ | (64 | ) | (1) | |||||||
(1) Included in net investment income in the Consolidated Statements of Operations. | |||||||||||||||||||||||||
(2) Included in other revenues in the Consolidated Statements of Operations. | |||||||||||||||||||||||||
(3) Represents a $20 million gain included in other revenues and a $1 million loss included in net investment income in the Consolidated Statements of Operations. | |||||||||||||||||||||||||
Securities and loans transferred from Level 2 to Level 3 represent assets with fair values that are now based on a single non-binding broker quote. Securities and loans transferred from Level 3 to Level 2 represent assets with fair values that are now obtained from a third party pricing service with observable inputs or priced in active markets. During the reporting periods, there were no transfers between Level 1 and Level 2. | |||||||||||||||||||||||||
The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities held by consolidated investment entities: | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range | Weighted Average | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Other assets | $ | 1,936 | Discounted cash flow/ market comparables | Equivalent yield | 4.4 | % | – | 12.40% | 7.4 | % | |||||||||||||||
Expected rental value (per square foot) | $5 | – | $373 | $33 | |||||||||||||||||||||
Debt | $ | 4,804 | Discounted cash flow | Annual default rate | 2.5 | % | – | 2.50% | 2.5 | % | |||||||||||||||
Discount rate | 1.5 | % | – | 8.30% | 2.7 | % | |||||||||||||||||||
Constant prepayment rate | 5 | % | – | 10.00% | 9.8 | % | |||||||||||||||||||
Loss recovery | 36.4 | % | – | 63.60% | 62.3 | % | |||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range | Weighted Average | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Other assets | $ | 1,214 | Discounted cash flow/ market comparables | Equivalent yield | 4.1 | % | – | 12.90% | 7.2 | % | |||||||||||||||
Expected rental value (per square foot) | $4 | – | $309 | $32 | |||||||||||||||||||||
Debt | $ | 4,450 | Discounted cash flow | Annual default rate | 2.5 | % | – | 4.50% | 2.5 | % | |||||||||||||||
Discount rate | 1.6 | % | – | 30.00% | 2.9 | % | |||||||||||||||||||
Constant prepayment rate | 5 | % | – | 10.00% | 9.6 | % | |||||||||||||||||||
Loss recovery | 36.4 | % | – | 63.60% | 62 | % | |||||||||||||||||||
Level 3 measurements not included in the tables above are obtained from non-binding broker quotes where unobservable inputs are not reasonably available to the Company. | |||||||||||||||||||||||||
Sensitivity of Fair Value Measurements to Changes in Unobservable Inputs | |||||||||||||||||||||||||
Generally, a significant increase (decrease) in the expected rental value used in the fair value measurement of properties held by consolidated investment entities in isolation would result in a significantly higher (lower) fair value measurement and a significant increase (decrease) in the equivalent yield in isolation would result in a significantly lower (higher) fair value measurement. | |||||||||||||||||||||||||
Generally, a significant increase (decrease) in the annual default rate and discount rate used in the fair value measurement of the CDO’s debt in isolation would result in a significantly lower (higher) fair value measurement and a significant increase (decrease) in loss recovery in isolation would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the constant prepayment rate in isolation would result in a significantly higher (lower) fair value measurement. | |||||||||||||||||||||||||
Determination of Fair Value | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||
The fair value of syndicated loans obtained from third party pricing services with multiple non-binding broker quotes as the underlying valuation source 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. | |||||||||||||||||||||||||
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 loans 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 the 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. | |||||||||||||||||||||||||
See Note 14 for a description of the Company’s determination of the fair value of corporate debt securities, U.S. government and agencies obligations, common stocks and other investments. | |||||||||||||||||||||||||
Receivables | |||||||||||||||||||||||||
For receivables of the consolidated CDOs, 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. | |||||||||||||||||||||||||
Other Assets | |||||||||||||||||||||||||
Other assets consist primarily of properties held in consolidated pooled investment vehicles managed by Threadneedle. The fair value of these properties is calculated by a third party appraisal service by discounting future cash flows generated by the expected market rental value for the property using the equivalent yield of a similar investment property. Inputs used in determining the equivalent yield and expected rental value of the property may include: rental cash flows, current occupancy, historical vacancy rates, tenant history and assumptions regarding how quickly the property can be occupied and at what rental rates. Management reviews the valuation report and assumptions used to ensure that the valuation was performed in accordance with applicable independence, appraisal and valuation standards. Given the significance of the unobservable inputs to these measurements, these assets are classified as Level 3. | |||||||||||||||||||||||||
Other assets of the consolidated CDO’s consist primarily of warrants. Warrants that are traded directly with the issuer are classified as Level 2 when the price is derived from observable market data. Warrants from an issuer whose securities are not priced in active markets are classified as Level 3. | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||
The fair value of the CDOs’ debt is determined using a discounted cash flow model. Inputs used to determine the expected cash flows include assumptions about default, discount, prepayment and recovery rates of the CDOs’ underlying assets. Given the significance of the unobservable inputs to this fair value measurement, the fair value of the CDOs’ debt is classified as Level 3. | |||||||||||||||||||||||||
Other Liabilities | |||||||||||||||||||||||||
Other liabilities consist primarily of securities purchased but not yet settled held by consolidated CDOs. The carrying value approximates fair value as the nature of these liabilities has historically been short term. The fair value of these liabilities is classified as Level 2. | |||||||||||||||||||||||||
Fair Value Option | |||||||||||||||||||||||||
The Company has elected the fair value option for the financial assets and liabilities of the consolidated CDOs. Management believes that the use of the fair value option better matches the changes in fair value of assets and liabilities related to the CDOs. | |||||||||||||||||||||||||
The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Syndicated loans | |||||||||||||||||||||||||
Unpaid principal balance | $ | 4,628 | $ | 4,023 | |||||||||||||||||||||
Excess unpaid principal over fair value | (56 | ) | (101 | ) | |||||||||||||||||||||
Fair value | $ | 4,572 | $ | 3,922 | |||||||||||||||||||||
Fair value of loans more than 90 days past due | $ | 23 | $ | 34 | |||||||||||||||||||||
Fair value of loans in nonaccrual status | 23 | 34 | |||||||||||||||||||||||
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both | 33 | 38 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||||
Unpaid principal balance | $ | 5,032 | $ | 4,757 | |||||||||||||||||||||
Excess unpaid principal over fair value | (228 | ) | (307 | ) | |||||||||||||||||||||
Fair value | $ | 4,804 | $ | 4,450 | |||||||||||||||||||||
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 and gains and losses on sales of investments are also recorded in net investment income. Interest expense on debt is recorded in interest and debt expense with gains and losses related to changes in the fair value of debt recorded in net investment income. | |||||||||||||||||||||||||
Total net gains (losses) recognized in net investment income related to changes in the fair value of financial assets and liabilities for which the fair value option was elected were $28 million, $(85) million and $(122) million for the years ended December 31, 2013, 2012 and 2011, respectively. The majority of the syndicated loans and debt have floating rates; as such, changes in their fair values are primarily attributable to changes in credit spreads. | |||||||||||||||||||||||||
Debt of the consolidated investment entities and the stated interest rates were as follows: | |||||||||||||||||||||||||
Carrying Value | Weighted Average Interest Rate | ||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Debt of consolidated CDOs due 2016-2025 | $ | 4,804 | $ | 4,450 | 1 | % | 0.9 | % | |||||||||||||||||
Floating rate revolving credit borrowings due 2014 | 305 | 309 | 2.6 | 2.6 | |||||||||||||||||||||
Floating rate revolving credit borrowings due 2015 | 97 | 104 | 2.4 | 2.4 | |||||||||||||||||||||
Floating rate revolving credit borrowings due 2017 | 120 | 118 | 4.5 | 4.5 | |||||||||||||||||||||
Floating rate revolving credit borrowings due 2018 | 377 | — | 3.5 | — | |||||||||||||||||||||
Floating rate revolving credit borrowings due 2019 | 33 | — | 3 | — | |||||||||||||||||||||
Total | $ | 5,736 | $ | 4,981 | |||||||||||||||||||||
The debt of the consolidated CDOs has both fixed and floating interest rates, which range from 0% to 9.2%. The interest rates on the debt of CDOs are weighted average rates based on the outstanding principal and contractual interest rates. The carrying value of the debt of the consolidated CDOs represents the fair value of the aggregate debt. The carrying value of the floating rate revolving credit borrowings represents the outstanding principal amount of debt of certain consolidated pooled investment vehicles managed by Threadneedle. The fair value of this debt was $932 million and $531 million as of December 31, 2013 and 2012, respectively. The consolidated pooled investment vehicles have entered into interest rate swaps and collars to manage the interest rate exposure on the floating rate revolving credit borrowings. The fair value of these derivative instruments is recorded gross and was a liability of $5 million and $17 million at December 31, 2013 and 2012, respectively. The overall effective interest rate reflecting the impact of the derivative contracts was 4.2% and 4.8% as of December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
At December 31, 2013, future maturities of debt were as follows: | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
2014 | $ | 305 | |||||||||||||||||||||||
2015 | 97 | ||||||||||||||||||||||||
2016 | 20 | ||||||||||||||||||||||||
2017 | 708 | ||||||||||||||||||||||||
2018 | 377 | ||||||||||||||||||||||||
Thereafter | 4,457 | ||||||||||||||||||||||||
Total future maturities | $ | 5,964 | |||||||||||||||||||||||
Investments
Investments | 12 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||||||||
Investments | ' | |||||||||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||||||||
The following is a summary of Ameriprise Financial investments: | ||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Available-for-Sale securities, at fair value | $ | 30,310 | $ | 31,472 | ||||||||||||||||||||||||||||||
Mortgage loans, net | 3,510 | 3,609 | ||||||||||||||||||||||||||||||||
Policy and certificate loans | 774 | 754 | ||||||||||||||||||||||||||||||||
Other investments | 1,141 | 1,042 | ||||||||||||||||||||||||||||||||
Total | $ | 35,735 | $ | 36,877 | ||||||||||||||||||||||||||||||
The following is a summary of net investment income: | ||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Investment income on fixed maturities | $ | 1,575 | $ | 1,768 | $ | 1,917 | ||||||||||||||||||||||||||||
Net realized gains | 7 | 7 | 6 | |||||||||||||||||||||||||||||||
Affordable housing partnerships | (12 | ) | (25 | ) | (32 | ) | ||||||||||||||||||||||||||||
Other | 99 | 73 | 64 | |||||||||||||||||||||||||||||||
Consolidated investment entities | 220 | 110 | 91 | |||||||||||||||||||||||||||||||
Total net investment income | $ | 1,889 | $ | 1,933 | $ | 2,046 | ||||||||||||||||||||||||||||
Available-for-Sale securities distributed by type were as follows: | ||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||
Description of Securities | Amortized | Gross | Gross | Fair Value | Noncredit | |||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | OTTI (1) | |||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 16,233 | $ | 1,330 | $ | (97 | ) | $ | 17,466 | $ | 3 | |||||||||||||||||||||||
Residential mortgage backed securities | 6,114 | 147 | (137 | ) | 6,124 | (33 | ) | |||||||||||||||||||||||||||
Commercial mortgage backed securities | 2,612 | 141 | (12 | ) | 2,741 | — | ||||||||||||||||||||||||||||
Asset backed securities | 1,459 | 53 | (8 | ) | 1,504 | — | ||||||||||||||||||||||||||||
State and municipal obligations | 2,132 | 106 | (78 | ) | 2,160 | — | ||||||||||||||||||||||||||||
U.S. government and agencies obligations | 47 | 5 | — | 52 | — | |||||||||||||||||||||||||||||
Foreign government bonds and obligations | 235 | 18 | (8 | ) | 245 | — | ||||||||||||||||||||||||||||
Common stocks | 7 | 11 | — | 18 | 4 | |||||||||||||||||||||||||||||
Total | $ | 28,839 | $ | 1,811 | $ | (340 | ) | $ | 30,310 | $ | (26 | ) | ||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||||
Description of Securities | Amortized | Gross | Gross | Fair Value | Noncredit | |||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | OTTI (1) | |||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 16,628 | $ | 2,196 | $ | (9 | ) | $ | 18,815 | $ | — | |||||||||||||||||||||||
Residential mortgage backed securities | 5,280 | 261 | (112 | ) | 5,429 | (58 | ) | |||||||||||||||||||||||||||
Commercial mortgage backed securities | 3,120 | 299 | — | 3,419 | — | |||||||||||||||||||||||||||||
Asset backed securities | 1,204 | 75 | (4 | ) | 1,275 | — | ||||||||||||||||||||||||||||
State and municipal obligations | 2,034 | 241 | (36 | ) | 2,239 | — | ||||||||||||||||||||||||||||
U.S. government and agencies obligations | 49 | 9 | — | 58 | — | |||||||||||||||||||||||||||||
Foreign government bonds and obligations | 188 | 36 | — | 224 | — | |||||||||||||||||||||||||||||
Common stocks | 7 | 6 | — | 13 | 2 | |||||||||||||||||||||||||||||
Total | $ | 28,510 | $ | 3,123 | $ | (161 | ) | $ | 31,472 | $ | (56 | ) | ||||||||||||||||||||||
(1) Represents the amount of other-than-temporary impairment (“OTTI”) losses in accumulated other comprehensive income. Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period. | ||||||||||||||||||||||||||||||||||
As of December 31, 2013 and 2012, investment securities with a fair value of $2.3 billion and $1.3 billion, respectively, were pledged to meet contractual obligations under derivative contracts and repurchase agreements. | ||||||||||||||||||||||||||||||||||
At December 31, 2013 and 2012, fixed maturity securities comprised approximately 85% of Ameriprise Financial 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. At December 31, 2013 and 2012, the Company’s internal analysts rated $1.4 billion and $1.7 billion, respectively, of securities using criteria similar to those used by NRSROs. | ||||||||||||||||||||||||||||||||||
A summary of fixed maturity securities by rating was as follows: | ||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||||
Ratings | Amortized | Fair Value | Percent of | Amortized | Fair Value | Percent of | ||||||||||||||||||||||||||||
Cost | Total Fair | Cost | Total Fair | |||||||||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||||||||||||||
AAA | $ | 7,562 | $ | 7,746 | 25 | % | $ | 7,462 | $ | 8,021 | 26 | % | ||||||||||||||||||||||
AA | 1,587 | 1,707 | 6 | 1,620 | 1,827 | 6 | ||||||||||||||||||||||||||||
A | 6,381 | 6,738 | 22 | 5,456 | 6,069 | 19 | ||||||||||||||||||||||||||||
BBB | 11,427 | 12,272 | 41 | 11,939 | 13,575 | 43 | ||||||||||||||||||||||||||||
Below investment grade | 1,875 | 1,829 | 6 | 2,026 | 1,967 | 6 | ||||||||||||||||||||||||||||
Total fixed maturities | $ | 28,832 | $ | 30,292 | 100 | % | $ | 28,503 | $ | 31,459 | 100 | % | ||||||||||||||||||||||
At December 31, 2013 and 2012, approximately 45% and 35%, respectively, of the securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any other issuer were greater than 10% of total equity. | ||||||||||||||||||||||||||||||||||
The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position: | ||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||||||||
Description of Securities | Number of | Fair | Unrealized | Number of | Fair | Unrealized | Number of | Fair | Unrealized | |||||||||||||||||||||||||
Securities | Value | Losses | Securities | Value | Losses | Securities | Value | Losses | ||||||||||||||||||||||||||
(in millions, except number of securities) | ||||||||||||||||||||||||||||||||||
Corporate debt securities | 181 | $ | 2,817 | $ | (83 | ) | 12 | $ | 181 | $ | (14 | ) | 193 | $ | 2,998 | $ | (97 | ) | ||||||||||||||||
Residential mortgage backed securities | 128 | 2,393 | (66 | ) | 113 | 663 | (71 | ) | 241 | 3,056 | (137 | ) | ||||||||||||||||||||||
Commercial mortgage backed securities | 35 | 426 | (10 | ) | 4 | 22 | (2 | ) | 39 | 448 | (12 | ) | ||||||||||||||||||||||
Asset backed securities | 40 | 531 | (7 | ) | 4 | 32 | (1 | ) | 44 | 563 | (8 | ) | ||||||||||||||||||||||
State and municipal obligations | 169 | 468 | (36 | ) | 14 | 117 | (42 | ) | 183 | 585 | (78 | ) | ||||||||||||||||||||||
Foreign government bonds and obligations | 23 | 77 | (8 | ) | — | — | — | 23 | 77 | (8 | ) | |||||||||||||||||||||||
Total | 576 | $ | 6,712 | $ | (210 | ) | 147 | $ | 1,015 | $ | (130 | ) | 723 | $ | 7,727 | $ | (340 | ) | ||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||||||||
Description of Securities | Number of | Fair | Unrealized | Number of | Fair | Unrealized | Number of | Fair | Unrealized | |||||||||||||||||||||||||
Securities | Value | Losses | Securities | Value | Losses | Securities | Value | Losses | ||||||||||||||||||||||||||
(in millions, except number of securities) | ||||||||||||||||||||||||||||||||||
Corporate debt securities | 76 | $ | 801 | $ | (6 | ) | 6 | $ | 70 | $ | (3 | ) | 82 | $ | 871 | $ | (9 | ) | ||||||||||||||||
Residential mortgage backed securities | 22 | 408 | (5 | ) | 134 | 658 | (107 | ) | 156 | 1,066 | (112 | ) | ||||||||||||||||||||||
Asset backed securities | 9 | 108 | (1 | ) | 5 | 86 | (3 | ) | 14 | 194 | (4 | ) | ||||||||||||||||||||||
State and municipal obligations | 13 | 34 | (1 | ) | 8 | 113 | (35 | ) | 21 | 147 | (36 | ) | ||||||||||||||||||||||
Total | 120 | $ | 1,351 | $ | (13 | ) | 153 | $ | 927 | $ | (148 | ) | 273 | $ | 2,278 | $ | (161 | ) | ||||||||||||||||
As part of Ameriprise Financial’s ongoing monitoring process, management determined that a majority of the change in gross unrealized losses on its Available-for-Sale securities is attributable to movement in interest rates. | ||||||||||||||||||||||||||||||||||
The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Operations for other-than-temporary impairments related to credit losses on securities for which a portion of the securities’ total other-than-temporary impairments was recognized in other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Beginning balance | $ | 176 | $ | 303 | $ | 297 | ||||||||||||||||||||||||||||
Credit losses for which an other-than-temporary impairment was not previously recognized | 2 | 2 | 15 | |||||||||||||||||||||||||||||||
Credit losses for which an other-than-temporary impairment was previously recognized | 7 | 32 | 19 | |||||||||||||||||||||||||||||||
Reductions for securities sold during the period (realized) | (38 | ) | (161 | ) | (28 | ) | ||||||||||||||||||||||||||||
Ending balance | $ | 147 | $ | 176 | $ | 303 | ||||||||||||||||||||||||||||
The change in net unrealized securities gains (losses) in other comprehensive income (loss) includes three components, net of tax: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit other-than-temporary impairment losses to credit losses; and (iii) other items primarily consisting of adjustments in asset and liability balances, such as DAC, DSIC, 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 a rollforward of the net unrealized securities gains on Available-for-Sale securities included in accumulated other comprehensive income: | ||||||||||||||||||||||||||||||||||
Net Unrealized | Deferred | Accumulated Other | ||||||||||||||||||||||||||||||||
Securities | Income Tax | Comprehensive | ||||||||||||||||||||||||||||||||
Gains | Income Related | |||||||||||||||||||||||||||||||||
to Net Unrealized | ||||||||||||||||||||||||||||||||||
Securities Gains | ||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Balance at January 1, 2011 | $ | 1,077 | $ | (377 | ) | $ | 700 | |||||||||||||||||||||||||||
Net unrealized securities gains arising during the period (1) | 572 | (196 | ) | 376 | ||||||||||||||||||||||||||||||
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables | (299 | ) | 106 | (193 | ) | |||||||||||||||||||||||||||||
Balance at December 31, 2011 | 1,350 | (467 | ) | 883 | (2) | |||||||||||||||||||||||||||||
Net unrealized securities gains arising during the period (1) | 911 | (323 | ) | 588 | ||||||||||||||||||||||||||||||
Reclassification of net securities gains included in net income | (7 | ) | 2 | (5 | ) | |||||||||||||||||||||||||||||
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables | (237 | ) | 83 | (154 | ) | |||||||||||||||||||||||||||||
Balance at December 31, 2012 | 2,017 | (705 | ) | 1,312 | (2) | |||||||||||||||||||||||||||||
Net unrealized securities losses arising during the period (1) | (1,484 | ) | 513 | (971 | ) | |||||||||||||||||||||||||||||
Reclassification of net securities gains included in net income | (7 | ) | 2 | (5 | ) | |||||||||||||||||||||||||||||
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables | 490 | (171 | ) | 319 | ||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 1,016 | $ | (361 | ) | $ | 655 | (2) | ||||||||||||||||||||||||||
(1) Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period. | ||||||||||||||||||||||||||||||||||
(2) Includes $4 million, $18 million and $75 million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||||||||||||
Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in earnings were as follows: | ||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Gross realized gains | $ | 17 | $ | 109 | $ | 52 | ||||||||||||||||||||||||||||
Gross realized losses | (1 | ) | (65 | ) | (18 | ) | ||||||||||||||||||||||||||||
Other-than-temporary impairments | (9 | ) | (37 | ) | (34 | ) | ||||||||||||||||||||||||||||
Total | $ | 7 | $ | 7 | $ | — | ||||||||||||||||||||||||||||
Other-than-temporary impairments for the years ended December 31, 2013, 2012 and 2011 primarily related to credit losses on non-agency residential mortgage backed securities. | ||||||||||||||||||||||||||||||||||
Available-for-Sale securities by contractual maturity at December 31, 2013, were as follows: | ||||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Due within one year | $ | 1,448 | $ | 1,470 | ||||||||||||||||||||||||||||||
Due after one year through five years | 5,918 | 6,317 | ||||||||||||||||||||||||||||||||
Due after five years through 10 years | 6,591 | 6,963 | ||||||||||||||||||||||||||||||||
Due after 10 years | 4,690 | 5,173 | ||||||||||||||||||||||||||||||||
18,647 | 19,923 | |||||||||||||||||||||||||||||||||
Residential mortgage backed securities | 6,114 | 6,124 | ||||||||||||||||||||||||||||||||
Commercial mortgage backed securities | 2,612 | 2,741 | ||||||||||||||||||||||||||||||||
Asset backed securities | 1,459 | 1,504 | ||||||||||||||||||||||||||||||||
Common stocks | 7 | 18 | ||||||||||||||||||||||||||||||||
Total | $ | 28,839 | $ | 30,310 | ||||||||||||||||||||||||||||||
Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities, commercial mortgage backed securities and asset backed securities are not due at a single maturity date. As such, these securities, as well as common stocks, were not included in the maturities distribution. |
Financing_Receivables
Financing Receivables | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||
Financing Receivables | ' | |||||||||||||||
Financing Receivables | ||||||||||||||||
The Company’s financing receivables include commercial mortgage loans, syndicated loans, consumer loans, policy loans, certificate loans and margin loans. See Note 2 for information regarding the Company’s accounting policies related to loans and the allowance for loan losses. | ||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||
The following tables present a rollforward of the allowance for loan losses for the years ended and the ending balance of the allowance for loan losses by impairment method and type of loan: | ||||||||||||||||
31-Dec-13 | ||||||||||||||||
Commercial Mortgage Loans | Syndicated Loans | Consumer Loans | Total | |||||||||||||
(in millions) | ||||||||||||||||
Beginning balance | $ | 29 | $ | 7 | $ | 8 | $ | 44 | ||||||||
Charge-offs | (3 | ) | (1 | ) | (3 | ) | (7 | ) | ||||||||
Recoveries | — | — | 1 | 1 | ||||||||||||
Provisions | — | — | (1 | ) | (1 | ) | ||||||||||
Ending balance | $ | 26 | $ | 6 | $ | 5 | $ | 37 | ||||||||
Individually evaluated for impairment | $ | 8 | $ | — | $ | 1 | $ | 9 | ||||||||
Collectively evaluated for impairment | 18 | 6 | 4 | 28 | ||||||||||||
31-Dec-12 | ||||||||||||||||
Commercial Mortgage Loans | Syndicated Loans | Consumer Loans | Total | |||||||||||||
(in millions) | ||||||||||||||||
Beginning balance | $ | 35 | $ | 9 | $ | 16 | $ | 60 | ||||||||
Charge-offs | (6 | ) | (2 | ) | (14 | ) | (22 | ) | ||||||||
Recoveries | — | — | 1 | 1 | ||||||||||||
Provisions | — | — | 5 | 5 | ||||||||||||
Ending balance | $ | 29 | $ | 7 | $ | 8 | $ | 44 | ||||||||
Individually evaluated for impairment | $ | 6 | $ | — | $ | 1 | $ | 7 | ||||||||
Collectively evaluated for impairment | 23 | 7 | 7 | 37 | ||||||||||||
31-Dec-11 | ||||||||||||||||
Commercial Mortgage Loans | Syndicated Loans | Consumer Loans | Total | |||||||||||||
(in millions) | ||||||||||||||||
Beginning balance | $ | 38 | $ | 10 | $ | 16 | $ | 64 | ||||||||
Charge-offs | (2 | ) | — | (12 | ) | (14 | ) | |||||||||
Recoveries | — | — | 1 | 1 | ||||||||||||
Provisions | (1 | ) | (1 | ) | 11 | 9 | ||||||||||
Ending balance | $ | 35 | $ | 9 | $ | 16 | $ | 60 | ||||||||
Individually evaluated for impairment | $ | 10 | $ | 1 | $ | 1 | $ | 12 | ||||||||
Collectively evaluated for impairment | 25 | 8 | 15 | 48 | ||||||||||||
The recorded investment in financing receivables by impairment method and type of loan was as follows: | ||||||||||||||||
31-Dec-13 | ||||||||||||||||
Commercial Mortgage Loans | Syndicated Loans | Consumer Loans | Total | |||||||||||||
(in millions) | ||||||||||||||||
Individually evaluated for impairment | $ | 42 | $ | 9 | $ | 7 | $ | 58 | ||||||||
Collectively evaluated for impairment | 2,640 | 370 | 873 | 3,883 | ||||||||||||
Total | $ | 2,682 | $ | 379 | $ | 880 | $ | 3,941 | ||||||||
31-Dec-12 | ||||||||||||||||
Commercial Mortgage Loans | Syndicated Loans | Consumer Loans | Total | |||||||||||||
(in millions) | ||||||||||||||||
Individually evaluated for impairment | $ | 44 | $ | 2 | $ | 8 | $ | 54 | ||||||||
Collectively evaluated for impairment | 2,562 | 335 | 1,061 | 3,958 | ||||||||||||
Total | $ | 2,606 | $ | 337 | $ | 1,069 | $ | 4,012 | ||||||||
As of December 31, 2013 and 2012, the Company’s recorded investment in financing receivables individually evaluated for impairment for which there was no related allowance for loan losses was $21 million and $17 million, respectively. Unearned income, unamortized premiums and discounts, and net unamortized deferred fees and costs are not material to the Company’s total loan balance. | ||||||||||||||||
Purchases and sales of loans were as follows: | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
(in millions) | ||||||||||||||||
Purchases | ||||||||||||||||
Consumer loans | $ | — | $ | 51 | $ | 373 | ||||||||||
Syndicated loans | 158 | 111 | 194 | |||||||||||||
Total loans purchased | $ | 158 | $ | 162 | $ | 567 | ||||||||||
Sales | ||||||||||||||||
Consumer loans | $ | — | $ | 452 | $ | 209 | ||||||||||
Syndicated loans | 3 | 12 | 2 | |||||||||||||
Total loans sold | $ | 3 | $ | 464 | $ | 211 | ||||||||||
The Company has not acquired any loans with deteriorated credit quality as of the acquisition date. | ||||||||||||||||
Credit Quality Information | ||||||||||||||||
Nonperforming loans, which are generally loans 90 days or more past due, were $22 million and $7 million as of December 31, 2013 and 2012, respectively. All other loans were considered to be performing. | ||||||||||||||||
Commercial Mortgage Loans | ||||||||||||||||
The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates as necessary. Commercial mortgage loans which management has assigned its highest risk rating were 2% of total commercial mortgage loans at both December 31, 2013 and 2012. Loans with the highest risk rating represent distressed loans which the Company has identified as impaired or expects to become delinquent or enter into foreclosure within the next six months. In addition, the Company reviews the concentrations of credit risk by region and property type. | ||||||||||||||||
Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows: | ||||||||||||||||
Loans | Percentage | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in millions) | ||||||||||||||||
East North Central | $ | 251 | $ | 260 | 9 | % | 10 | % | ||||||||
East South Central | 71 | 66 | 3 | 3 | ||||||||||||
Middle Atlantic | 211 | 207 | 8 | 8 | ||||||||||||
Mountain | 257 | 272 | 10 | 10 | ||||||||||||
New England | 149 | 146 | 5 | 6 | ||||||||||||
Pacific | 661 | 597 | 25 | 23 | ||||||||||||
South Atlantic | 713 | 661 | 26 | 25 | ||||||||||||
West North Central | 207 | 232 | 8 | 9 | ||||||||||||
West South Central | 162 | 165 | 6 | 6 | ||||||||||||
2,682 | 2,606 | 100 | % | 100 | % | |||||||||||
Less: allowance for loan losses | 26 | 29 | ||||||||||||||
Total | $ | 2,656 | $ | 2,577 | ||||||||||||
Concentrations of credit risk of commercial mortgage loans by property type were as follows: | ||||||||||||||||
Loans | Percentage | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in millions) | ||||||||||||||||
Apartments | $ | 488 | $ | 450 | 18 | % | 17 | % | ||||||||
Hotel | 33 | 36 | 1 | 1 | ||||||||||||
Industrial | 454 | 474 | 17 | 18 | ||||||||||||
Mixed use | 36 | 42 | 1 | 2 | ||||||||||||
Office | 559 | 610 | 21 | 24 | ||||||||||||
Retail | 951 | 858 | 36 | 33 | ||||||||||||
Other | 161 | 136 | 6 | 5 | ||||||||||||
2,682 | 2,606 | 100 | % | 100 | % | |||||||||||
Less: allowance for loan losses | 26 | 29 | ||||||||||||||
Total | $ | 2,656 | $ | 2,577 | ||||||||||||
Syndicated Loans | ||||||||||||||||
The Company’s syndicated loan portfolio is diversified across industries and issuers. The primary credit indicator for syndicated loans is whether the loans are performing in accordance with the contractual terms of the syndication. Total nonperforming syndicated loans at December 31, 2013 and 2012 were $4 million and $3 million, respectively. | ||||||||||||||||
Consumer Loans | ||||||||||||||||
The Company considers the credit worthiness of borrowers (FICO score), collateral characteristic such as LTV and geographic concentration in determining the allowance for loan losses for consumer loans. At a minimum, management updates FICO scores and LTV ratios semiannually. | ||||||||||||||||
As of both December 31, 2013 and 2012, approximately 5% of consumer loans had FICO scores below 640. At December 31, 2013 and 2012, approximately 2% and 8%, respectively, of the Company’s residential mortgage loans had LTV ratios greater than 90%. The Company’s most significant geographic concentration for consumer loans is in California representing 38% of the portfolio as of both December 31, 2013 and 2012. No other state represents more than 10% of the total consumer loan portfolio. | ||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||
The following table presents the number of loans restructured by the Company during the period and their recorded investment at the end of the period: | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | |||||||||||||
(in millions, except number of loans) | ||||||||||||||||
Commercial mortgage loans | 8 | $ | 24 | 4 | $ | 13 | ||||||||||
Syndicated loans | 1 | — | 5 | 2 | ||||||||||||
Consumer bank loans | 15 | — | 23 | — | ||||||||||||
Total | 24 | $ | 24 | 32 | $ | 15 | ||||||||||
The troubled debt restructurings did not have a material impact to the Company’s allowance for loan losses or income recognized for the years ended December 31, 2013, 2012 and 2011. There are no commitments to lend additional funds to borrowers whose loans have been restructured. |
Reinsurance
Reinsurance | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Reinsurance Disclosures [Abstract] | ' | |||||||||||
Reinsurance | ' | |||||||||||
Reinsurance | ||||||||||||
For most new life insurance policies, the Company reinsures 90% of the death benefit liability. The Company began reinsuring risks at this level in 2001 for term life insurance and 2002 for individual fixed and variable universal life insurance. Policies issued prior to these dates are not subject to these same reinsurance levels. | ||||||||||||
However, for IUL policies issued after September 1, 2013, the Company generally reinsures 50% of the death benefit liability. Similarly, the Company reinsures 50% of the death benefit and morbidity liabilities related to the RiverSource TrioSourceSM universal life product launched in 2013. | ||||||||||||
Generally, the maximum amount of life insurance risk retained by the Company is $1.5 million on a single life and $1.5 million on any flexible premium survivorship life policy. Risk on fixed and variable universal life policies is reinsured on a yearly renewable term basis. Risk on most term life policies starting in 2001 is reinsured on a coinsurance basis, a type of reinsurance in which the reinsurer participates proportionally in all material risks and premiums associated with a policy. | ||||||||||||
For existing LTC policies, the Company ceded 50% of the risk on a coinsurance basis to subsidiaries of Genworth Financial, Inc. (“Genworth”) and retained the remaining risk. For RiverSource Life of NY, this reinsurance arrangement applies for 1996 and later issues only. | ||||||||||||
Generally, the Company retains at most $5,000 per month of risk per life on DI policies sold on policy forms introduced in most states in 2007 and reinsures the remainder of the risk on a coinsurance basis with unaffiliated reinsurance companies. The Company retains all risk for new claims on DI contracts sold on other policy forms. The Company also retains all risk on accidental death benefit claims and substantially all risk associated with waiver of premium provisions. | ||||||||||||
At December 31, 2013 and 2012, traditional life and UL insurance in force aggregated $194.1 billion and $191.4 billion, respectively, of which $142.1 billion and $138.6 billion were reinsured at the respective year ends. Life insurance in force is reported on a statutory basis. | ||||||||||||
The effect of reinsurance on premiums for the Company’s long-duration contracts was as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Direct premiums | $ | 650 | $ | 661 | $ | 707 | ||||||
Reinsurance ceded | (220 | ) | (219 | ) | (214 | ) | ||||||
Net premiums | $ | 430 | $ | 442 | $ | 493 | ||||||
The Company also reinsures a portion of the risks associated with its personal auto, home and umbrella insurance products through three types of reinsurance agreements with unaffiliated reinsurance companies. The Company purchases reinsurance with a limit of $5 million per loss and the Company retains $750,000 per loss. The Company purchases catastrophe reinsurance that, for 2012, had a limit of $110 million per event and the Company retained $20 million per event. For 2013, the Company’s catastrophe reinsurance had a limit of $125 million per event and the Company retained $20 million per event. The Company also cedes 80% of every personal umbrella loss with a limit of $5 million per loss. | ||||||||||||
The effect of reinsurance on premiums for the Company’s short-duration contracts was as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Written premiums | ||||||||||||
Direct | $ | 900 | $ | 814 | $ | 756 | ||||||
Ceded | (16 | ) | (13 | ) | (14 | ) | ||||||
Total net written premiums | $ | 884 | $ | 801 | $ | 742 | ||||||
Earned premiums | ||||||||||||
Direct | $ | 868 | $ | 795 | $ | 741 | ||||||
Ceded | (16 | ) | (14 | ) | (14 | ) | ||||||
Total net earned premiums | $ | 852 | $ | 781 | $ | 727 | ||||||
Cost of insurance and administrative charges on UL, VUL and IUL insurance are reflected in other revenues and were net of reinsurance ceded of $87 million, $79 million and $71 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
Reinsurance recovered from reinsurers was $229 million, $201 million and $201 million for the years ended December 31, 2013, 2012 and 2011, respectively. Reinsurance contracts do not relieve the Company from its primary obligation to policyholders. | ||||||||||||
Receivables included $2.2 billion and $2.1 billion of reinsurance recoverables as of December 31, 2013 and 2012, respectively, including $1.7 billion and $1.6 billion related to LTC risk ceded to Genworth, respectively. Included in policyholder account balances, future policy benefits and claims were $597 million and $615 million related to assumed reinsurance arrangements as of December 31, 2013 and 2012, respectively. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||||||||||
Goodwill and Other Intangible Assets | ||||||||||||||||||||||||
Goodwill and intangible assets deemed to have indefinite lives are not amortized but are instead subject to impairment tests. There were no impairments for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||
The changes in the carrying amount of goodwill reported in the Company’s main operating segments were as follows: | ||||||||||||||||||||||||
Advice & Wealth | Asset | Annuities | Protection | Consolidated | ||||||||||||||||||||
Management | Management | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Balance at January 1, 2012 | $ | 255 | $ | 818 | $ | 46 | $ | 45 | $ | 1,164 | ||||||||||||||
Foreign currency translation | — | 14 | — | — | 14 | |||||||||||||||||||
Purchase price adjustments | (2 | ) | (2 | ) | — | — | (4 | ) | ||||||||||||||||
Balance at December 31, 2012 | 253 | 830 | 46 | 45 | 1,174 | |||||||||||||||||||
Foreign currency translation | — | 5 | — | — | 5 | |||||||||||||||||||
Purchase price adjustments | (1 | ) | (14 | ) | — | — | (15 | ) | ||||||||||||||||
Balance at December 31, 2013 | $ | 252 | $ | 821 | $ | 46 | $ | 45 | $ | 1,164 | ||||||||||||||
As of December 31, 2013 and 2012, the carrying amount of indefinite-lived intangible assets included $631 million and $630 million, respectively of investment management contracts. As of both December 31, 2013 and 2012, the carrying amount of indefinite-lived intangible assets included $67 million of trade names. | ||||||||||||||||||||||||
Definite-lived intangible assets consisted of the following: | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Customer relationships | $ | 152 | $ | (87 | ) | $ | 65 | $ | 152 | $ | (72 | ) | $ | 80 | ||||||||||
Contracts | 240 | (167 | ) | 73 | 238 | (146 | ) | 92 | ||||||||||||||||
Other | 155 | (94 | ) | 61 | 151 | (82 | ) | 69 | ||||||||||||||||
Total | $ | 547 | $ | (348 | ) | $ | 199 | $ | 541 | $ | (300 | ) | $ | 241 | ||||||||||
Definite-lived intangible assets acquired during the year ended December 31, 2013 were $2 million with a weighted average amortization period of 5 years. The increase to the net carrying amount of definite-lived intangible assets due to changes in foreign currency exchange rates was $1 million, $4 million and nil for the years ended December 31, 2013, 2012 and 2011, respectively. The aggregate amortization expense for definite-lived intangible assets during the years ended December 31, 2013, 2012 and 2011 was $45 million, $47 million and $45 million, respectively. In 2013, 2012 and 2011, the Company did not record any impairment charges on definite-lived intangible assets. | ||||||||||||||||||||||||
Estimated intangible amortization expense as of December 31, 2013 for the next five years is as follows: | ||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
2014 | $ | 39 | ||||||||||||||||||||||
2015 | 31 | |||||||||||||||||||||||
2016 | 25 | |||||||||||||||||||||||
2017 | 21 | |||||||||||||||||||||||
2018 | 19 | |||||||||||||||||||||||
Deferred_Acquisition_Costs_and
Deferred Acquisition Costs and Deferred Sales Inducement Costs | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Deferred Acquisition Costs and Deferred Sales Inducement Costs | ' | |||||||||||
Deferred Acquisition Costs and Deferred Sales Inducement Costs | ' | |||||||||||
Deferred Acquisition Costs and Deferred Sales Inducement Costs | ||||||||||||
In the third quarter of the year, management conducts its annual review of insurance and annuity valuation assumptions relative to current experience and management expectations. To the extent that expectations change as a result of this review, management updates valuation assumptions. The impact in the third quarter of 2013 primarily reflected expected higher interest rates and changes in assumed policyholder behavior. The impact in the third quarter of 2012 and 2011 primarily reflected the low interest rate environment and for 2012, the assumption of continued low interest rates over the near-term. | ||||||||||||
The balances of and changes in DAC were as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Balance at January 1 | $ | 2,399 | $ | 2,440 | $ | 2,556 | ||||||
Capitalization of acquisition costs | 339 | 313 | 335 | |||||||||
Amortization, excluding the impact of valuation assumptions review | (285 | ) | (275 | ) | (366 | ) | ||||||
Amortization impact of valuation assumptions review | 78 | (11 | ) | (31 | ) | |||||||
Impact of change in net unrealized securities losses (gains) | 132 | (68 | ) | (54 | ) | |||||||
Balance at December 31 | $ | 2,663 | $ | 2,399 | $ | 2,440 | ||||||
The balances of and changes in DSIC, which is included in other assets, were as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Balance at January 1 | $ | 404 | $ | 464 | $ | 545 | ||||||
Capitalization of sales inducement costs | 5 | 7 | 9 | |||||||||
Amortization, excluding the impact of valuation assumptions review | (48 | ) | (45 | ) | (70 | ) | ||||||
Amortization impact of valuation assumptions review | 25 | (13 | ) | (11 | ) | |||||||
Impact of change in net unrealized securities losses (gains) | 23 | (9 | ) | (9 | ) | |||||||
Balance at December 31 | $ | 409 | $ | 404 | $ | 464 | ||||||
Policyholder_Account_Balances_
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
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 and Separate Account Liabilities | ||||||||
Policyholder account balances, future policy benefits and claims consisted of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Policyholder account balances | ||||||||
Fixed annuities | $ | 13,826 | $ | 14,420 | ||||
Variable annuity fixed sub-accounts | 4,926 | 4,833 | ||||||
VUL/UL insurance | 2,790 | 2,725 | ||||||
IUL insurance | 315 | 137 | ||||||
Other life insurance | 878 | 909 | ||||||
Total policyholder account balances | 22,735 | 23,024 | ||||||
Future policy benefits | ||||||||
Variable annuity GMWB | (383 | ) | (1) | 799 | ||||
Variable annuity GMAB | (62 | ) | (1) | 103 | ||||
Other annuity liabilities | 76 | 158 | ||||||
Fixed annuities life contingent liabilities | 1,523 | 1,520 | ||||||
EIA | 29 | 33 | ||||||
Life, DI and LTC insurance | 4,739 | 4,703 | ||||||
VUL/UL and other life insurance additional liabilities | 336 | 330 | ||||||
Total future policy benefits | 6,258 | 7,646 | ||||||
Policy claims and other policyholders’ funds | 627 | 547 | ||||||
Total policyholder account balances, future policy benefits and claims | $ | 29,620 | $ | 31,217 | ||||
(1) | Includes the value of GMWB and GMAB embedded derivatives which was a net asset at December 31, 2013 and the amount is reported as a contra liability. | |||||||
Separate account liabilities consisted of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Variable annuity | $ | 70,687 | $ | 63,302 | ||||
VUL insurance | 6,885 | 6,051 | ||||||
Other insurance | 44 | 42 | ||||||
Threadneedle investment liabilities | 3,607 | 3,002 | ||||||
Total | $ | 81,223 | $ | 72,397 | ||||
Fixed Annuities | ||||||||
Fixed annuities include both deferred and payout contracts. Deferred contracts offer a guaranteed minimum rate of interest and security of the principal invested. Payout contracts guarantee a fixed income payment for life or the term of the contract. The Company generally invests the proceeds from the annuity payments in fixed rate securities. | ||||||||
The Index 500 Annuity, the Company’s EIA product, is a single premium deferred fixed annuity. The contract is issued with an initial term of seven years and interest earnings are linked to the performance of the S&P 500 Index®. This annuity has a minimum interest rate guarantee of 3% on 90% of the initial premium, adjusted for any surrenders. The Company generally invests the proceeds from the annuity deposits in fixed rate securities and hedges the equity risk with derivative instruments. See Note 16 for additional information regarding the Company’s derivative instruments. In 2007, the Company discontinued new sales of EIAs. | ||||||||
Variable Annuities | ||||||||
Purchasers of variable annuities can select from a variety of investment options and can elect to allocate a portion to a fixed account. A vast majority of the premiums received for variable annuity contracts are held in separate accounts where the assets are held for the exclusive benefit of those contractholders. | ||||||||
Most of the variable annuity contracts currently issued by the Company contain one or more guaranteed benefits, including GMWB, GMAB, GMDB and GGU provisions. The Company previously offered contracts with GMIB provisions. See Note 2 and Note 11 for additional information regarding the Company’s variable annuity guarantees. The Company does not currently hedge its risk under the GGU and GMIB provisions. See Note 16 for additional information regarding derivative instruments used to hedge risks related to GMWB, GMAB and GMDB provisions. | ||||||||
Insurance Liabilities | ||||||||
VUL/UL is the largest group of insurance policies written by the Company. Purchasers of VUL can select from a variety of investment options and can elect to allocate a portion to a fixed account or a separate account. A vast majority of the premiums received for VUL policies are held in separate accounts where the assets are held for the exclusive benefit of those policyholders. | ||||||||
IUL insurance is similar to UL in many regards, although the rate of credited interest above the minimum guarantee for funds allocated to the indexed account is linked to the performance of the S&P 500 Index (subject to a cap and floor). The policyholder may allocate all or a portion of the policy value to a fixed or indexed account. | ||||||||
The Company also offers term life insurance as well as disability products. The Company no longer offers standalone LTC products and whole life insurance but has in force policies from prior years. Insurance liabilities include accumulation values, unpaid reported claims, incurred but not reported claims and obligations for anticipated future claims. | ||||||||
Portions of the Company’s fixed and variable universal life policies have product features that result in profits followed by losses from the insurance component of the policy. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the policy. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. | ||||||||
Threadneedle Investment Liabilities | ||||||||
Threadneedle provides a range of unitized pooled pension funds, which invest in property, stocks, bonds and cash. The investments are selected by the clients and are based on the level of risk they are willing to assume. All investment performance, net of fees, is passed through to the investors. The value of the liabilities represents the value of the units in issue of the pooled pension funds. |
Variable_Annuity_and_Insurance
Variable Annuity and Insurance Guarantees | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Insurance [Abstract] | ' | ||||||||||||||||||||||||||||
Variable Annuity and Insurance Guarantees | ' | ||||||||||||||||||||||||||||
Variable Annuity and Insurance Guarantees | |||||||||||||||||||||||||||||
The majority of the variable annuity contracts offered by the Company contain GMDB provisions. The Company also offers variable annuities with GGU, GMWB and GMAB provisions. The Company previously offered contracts containing GMIB provisions. See Note 2 and Note 10 for additional information regarding the Company’s variable annuity guarantees. | |||||||||||||||||||||||||||||
The GMDB provisions provide a specified minimum return upon death of the contractholder. The death benefit payable is the greater of (i) the contract value less any purchase payment credits subject to recapture and less a pro-rata portion of any rider fees, or (ii) the GMDB provisions specified in the contract. The Company has three primary GMDB provisions: | |||||||||||||||||||||||||||||
• | Return of premium — provides purchase payments minus adjusted partial surrenders. | ||||||||||||||||||||||||||||
• | Reset — provides that the value resets to the account value every sixth contract anniversary minus adjusted partial surrenders. This provision was often provided in combination with the return of premium provision and is no longer offered. | ||||||||||||||||||||||||||||
• | Ratchet — provides that the value ratchets up to the maximum account value at specified anniversary intervals, plus subsequent purchase payments less adjusted partial surrenders. | ||||||||||||||||||||||||||||
The variable annuity contracts with GMWB riders typically have account values that are based on an underlying portfolio of mutual funds, the values of which fluctuate based on fund performance. At issue, the guaranteed amount is equal to the amount deposited but the guarantee may be increased annually to the account value (a “step-up”) in the case of favorable market performance. | |||||||||||||||||||||||||||||
The Company has GMWB riders in force, which contain one or more of the following provisions: | |||||||||||||||||||||||||||||
• | Withdrawals at a specified rate per year until the amount withdrawn is equal to the guaranteed amount. | ||||||||||||||||||||||||||||
• | Withdrawals at a specified rate per year for the life of the contractholder (“GMWB for life”). | ||||||||||||||||||||||||||||
• | Withdrawals at a specified rate per year for joint contractholders while either is alive. | ||||||||||||||||||||||||||||
• | Withdrawals based on performance of the contract. | ||||||||||||||||||||||||||||
• | Withdrawals based on the age withdrawals begin. | ||||||||||||||||||||||||||||
• | Once withdrawals begin, the contractholder’s funds are moved to one of the three least aggressive asset allocation models. | ||||||||||||||||||||||||||||
• | Credits are applied annually for a specified number of years to increase the guaranteed amount as long as withdrawals have not been taken. | ||||||||||||||||||||||||||||
Variable annuity contractholders age 79 or younger at contract issue can also obtain a principal-back guarantee by purchasing the optional GMAB rider for an additional charge. The GMAB rider guarantees that, regardless of market performance at the end of the 10-year waiting period, the contract value will be no less than the original investment or 80% of the highest anniversary value, adjusted for withdrawals. If the contract value is less than the guarantee at the end of the 10 -year period, a lump sum will be added to the contract value to make the contract value equal to the guarantee value. As of April 2012, clients who purchase a GMWB or GMAB rider are invested in one or more of four Portfolio Stabilizer managed volatility funds designed to pursue total return while seeking to mitigate exposure to market volatility. | |||||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||
Variable Annuity Guarantees by | 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 | |||||||||||||||||||||
Benefit Type(1) | |||||||||||||||||||||||||||||
(in millions, except age) | |||||||||||||||||||||||||||||
GMDB: | |||||||||||||||||||||||||||||
Return of premium | $ | 52,616 | $ | 50,790 | $ | 28 | 64 | $ | 45,697 | $ | 43,942 | $ | 61 | 63 | |||||||||||||||
Five/six-year reset | 11,220 | 8,663 | 42 | 64 | 11,233 | 8,722 | 115 | 63 | |||||||||||||||||||||
One-year ratchet | 7,676 | 7,261 | 38 | 65 | 7,367 | 6,933 | 106 | 65 | |||||||||||||||||||||
Five-year ratchet | 1,781 | 1,725 | 1 | 62 | 1,616 | 1,563 | 3 | 61 | |||||||||||||||||||||
Other | 1,015 | 996 | 36 | 69 | 912 | 885 | 62 | 68 | |||||||||||||||||||||
Total — GMDB | $ | 74,308 | $ | 69,435 | $ | 145 | 64 | $ | 66,825 | $ | 62,045 | $ | 347 | 63 | |||||||||||||||
GGU death benefit | $ | 1,052 | $ | 998 | $ | 121 | 64 | $ | 958 | $ | 907 | $ | 93 | 63 | |||||||||||||||
GMIB | $ | 413 | $ | 389 | $ | 8 | 66 | $ | 425 | $ | 399 | $ | 15 | 66 | |||||||||||||||
GMWB: | |||||||||||||||||||||||||||||
GMWB | $ | 3,936 | $ | 3,921 | $ | 1 | 67 | $ | 3,898 | $ | 3,880 | $ | 3 | 66 | |||||||||||||||
GMWB for life | 34,069 | 33,930 | 77 | 64 | 28,588 | 28,462 | 104 | 64 | |||||||||||||||||||||
Total — GMWB | $ | 38,005 | $ | 37,851 | $ | 78 | 64 | $ | 32,486 | $ | 32,342 | $ | 107 | 64 | |||||||||||||||
GMAB | $ | 4,194 | $ | 4,181 | $ | 2 | 58 | $ | 3,773 | $ | 3,762 | $ | 5 | 57 | |||||||||||||||
(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 guarantees is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB and GMWB guarantees is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero. The present value is calculated using a discount rate that is consistent with assumptions embedded in the Company’s annuity pricing models. The Company previously defined the net amount at risk for GMIB and GMWB guarantees as the guaranteed benefit amount in excess of the contract value. The previously disclosed net amount at risk for GMIB and GMWB guarantees was $72 million and $297 million, respectively, as of December 31, 2012. The Company believes the revised definition of net amount at risk for GMIB and GMWB guarantees is more representative of the potential economic exposure of the guarantees. | |||||||||||||||||||||||||||||
The following table provides information related to insurance guarantees for which the Company has established additional liabilities: | |||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||
Net Amount at Risk | Weighted Average Attained Age | Net Amount at Risk | Weighted Average Attained Age | ||||||||||||||||||||||||||
(in millions, except age) | |||||||||||||||||||||||||||||
UL secondary guarantees | $ | 5,674 | 62 | $ | 5,060 | 61 | |||||||||||||||||||||||
The net amount at risk for UL secondary guarantees is defined as the current guaranteed death benefit amount in excess of the current policyholder value. | |||||||||||||||||||||||||||||
Changes in variable annuity and insurance guarantees were as follows: | |||||||||||||||||||||||||||||
GMDB & GGU | GMIB | GMWB(1) | GMAB(1) | UL | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance at January 1, 2011 | $ | 5 | $ | 8 | $ | 337 | $ | 104 | $ | 68 | |||||||||||||||||||
Incurred claims | 10 | 2 | 1,040 | 133 | 53 | ||||||||||||||||||||||||
Paid claims | (10 | ) | (1 | ) | — | — | (10 | ) | |||||||||||||||||||||
Balance at December 31, 2011 | 5 | 9 | 1,377 | 237 | 111 | ||||||||||||||||||||||||
Incurred claims | 6 | 1 | (578 | ) | (134 | ) | 57 | ||||||||||||||||||||||
Paid claims | (7 | ) | (1 | ) | — | — | (13 | ) | |||||||||||||||||||||
Balance at December 31, 2012 | 4 | 9 | 799 | 103 | 155 | ||||||||||||||||||||||||
Incurred claims | 4 | (2 | ) | (1,182 | ) | (165 | ) | 67 | |||||||||||||||||||||
Paid claims | (4 | ) | (1 | ) | — | — | (16 | ) | |||||||||||||||||||||
Balance at December 31, 2013 | $ | 4 | $ | 6 | $ | (383 | ) | $ | (62 | ) | $ | 206 | |||||||||||||||||
(1) The incurred claims for GMWB and GMAB represent the total change in the liabilities. | |||||||||||||||||||||||||||||
The liabilities for guaranteed benefits are supported by general account assets. | |||||||||||||||||||||||||||||
The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Mutual funds: | |||||||||||||||||||||||||||||
Equity | $ | 39,195 | $ | 33,037 | |||||||||||||||||||||||||
Bond | 26,519 | 26,849 | |||||||||||||||||||||||||||
Other | 3,764 | 2,324 | |||||||||||||||||||||||||||
Total mutual funds | $ | 69,478 | $ | 62,210 | |||||||||||||||||||||||||
No gains or losses were recognized on assets transferred to separate accounts for the years ended December 31, 2013, 2012 and 2011. |
Customer_Deposits
Customer Deposits | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Banking and Thrift [Abstract] | ' | |||||||
Customer Deposits | ' | |||||||
Customer Deposits | ||||||||
Customer deposits consisted of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Fixed rate certificates | $ | 3,338 | $ | 2,807 | ||||
Stock market certificates | 611 | 666 | ||||||
Stock market embedded derivative reserve | 7 | 8 | ||||||
Other | 28 | 31 | ||||||
Less: accrued interest classified in other liabilities | (10 | ) | (10 | ) | ||||
Total investment certificate reserves | 3,974 | 3,502 | ||||||
Brokerage deposits | 3,088 | 3,024 | ||||||
Total | $ | 7,062 | $ | 6,526 | ||||
Investment Certificates | ||||||||
The Company offers fixed rate investment certificates primarily in amounts ranging from $1,000 to $2 million with interest crediting rate terms ranging from 3 to 36 months. Investment certificates may be purchased either with a lump sum payment or installment payments. Certificate owners are entitled to receive, at maturity, a definite sum of money. Payments from certificate owners are credited to investment certificate reserves. Investment certificate reserves generally accumulate interest at specified percentage rates. Reserves are maintained for advance payments made by certificate owners, accrued interest thereon and for additional credits in excess of minimum guaranteed rates and accrued interest thereon. On certificates allowing for the deduction of a surrender charge, the cash surrender values may be less than accumulated investment certificate reserves prior to maturity dates. Cash surrender values on certificates allowing for no surrender charge are equal to certificate reserves. The Company generally invests the proceeds from investment certificates in fixed and variable rate securities. | ||||||||
Certain investment certificate products have returns tied to the performance of equity markets. The Company guarantees the principal for purchasers who hold the certificate for the full 52-week term and purchasers may participate in increases in the stock market based on the S&P 500 Index, up to a maximum return. Purchasers can choose 100% participation in the market index up to the cap or 25% participation plus fixed interest with a combined total up to the cap. Current first term certificates have maximum returns of 1.0% to 2.0%. The equity component of these certificates is considered an embedded derivative and is accounted for separately. See Note 16 for additional information about derivative instruments used to economically hedge the equity price risk related to the Company’s stock market certificates. | ||||||||
Brokerage Deposits | ||||||||
Brokerage deposits are amounts payable to brokerage customers related to free credit balances, funds deposited by customers and funds accruing to customers as a result of trades or contracts. The Company pays interest on certain customer credit balances and the interest is included in banking and deposit interest expense. |
Debt
Debt | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||
Debt | ' | |||||||||||||
Debt | ||||||||||||||
The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows: | ||||||||||||||
Outstanding Balance | Stated Interest Rate | |||||||||||||
December 31, | December 31, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in millions) | ||||||||||||||
Long-term debt: | ||||||||||||||
Senior notes due 2015 | $ | 366 | (1) | $ | 750 | (1) | 5.7 | % | 5.7 | % | ||||
Senior notes due 2019 | 327 | (1) | 347 | (1) | 7.3 | 7.3 | ||||||||
Senior notes due 2020 | 783 | (1) | 812 | (1) | 5.3 | 5.3 | ||||||||
Senior notes due 2023 | 750 | — | 4 | — | ||||||||||
Senior notes due 2039 | 200 | 200 | 7.8 | 7.8 | ||||||||||
Junior subordinated notes due 2066 | 294 | 294 | 7.5 | 7.5 | ||||||||||
Total long-term debt | 2,720 | 2,403 | ||||||||||||
Short-term borrowings: | ||||||||||||||
Federal Home Loan Bank (“FHLB”) advances | 450 | — | 0.3 | — | ||||||||||
Repurchase agreements | 50 | 501 | 0.3 | 0.4 | ||||||||||
Total short-term borrowings | 500 | 501 | ||||||||||||
Total | $ | 3,220 | $ | 2,904 | ||||||||||
(1) Amounts include adjustments for fair value hedges on the Company’s long-term debt. See Note 16 for information on the Company’s fair value hedges. | ||||||||||||||
Long-Term Debt | ||||||||||||||
The amounts included in the table above are net of any unamortized discount and premium associated with issuing these notes. | ||||||||||||||
On November 13, 2013, the Company issued $150 million of unsecured senior notes due October 15, 2023, and incurred debt issuance costs of $1 million. These notes form part of the series of senior notes due 2023 along with other notes of this series issued on September 6, 2013. Interest payments are due semi-annually in arrears on April 15 and October 15, commencing April 15, 2014. | ||||||||||||||
In October 2013, the Company issued a notice of redemption for $350 million of its senior notes due November 2015. The notes were redeemed pursuant to the terms of the indenture at the principal value plus an aggregate premium and accrued interest to the redemption date. The redemption date of the notes was November 4, 2013. The Company recorded a net pretax loss of $19 million on the redemption of the notes in the fourth quarter of 2013. | ||||||||||||||
On September 6, 2013, the Company issued $600 million of unsecured senior notes due October 15, 2023, and incurred debt issuance costs of $5 million. Interest payments are due semi-annually in arrears on April 15 and October 15, commencing April 15, 2014. | ||||||||||||||
On March 11, 2010, the Company issued $750 million of unsecured senior notes which mature March 15, 2020, and incurred debt issuance costs of $6 million. Interest payments are due semi-annually in arrears on March 15 and September 15. | ||||||||||||||
On June 8, 2009, the Company issued $300 million of unsecured senior notes which mature June 28, 2019, and incurred debt issuance costs of $3 million. Interest payments are due semi-annually in arrears on June 28 and December 28. | ||||||||||||||
On June 3, 2009, the Company issued $200 million of unsecured senior notes which mature June 15, 2039, and incurred debt issuance costs of $6 million. Interest payments are due quarterly in arrears on March 15, June 15, September 15 and December 15. | ||||||||||||||
On May 26, 2006, the Company issued $500 million of unsecured junior subordinated notes, which mature June 1, 2066, and incurred debt issuance costs of $6 million. For the initial 10-year period, the junior notes carry a fixed interest rate of 7.5% payable semi-annually in arrears on June 1 and December 1. From June 1, 2016 until the maturity date, interest on the junior notes will accrue at an annual rate equal to the three-month LIBOR plus a margin equal to 290.5 basis points, payable quarterly in arrears. The Company has the option to defer interest payments, subject to certain limitations. In addition, interest payments are mandatorily deferred if the Company does not meet specified capital adequacy, net income or shareholders’ equity levels. As of December 31, 2013 and 2012, the Company had met the specified levels. | ||||||||||||||
On November 23, 2005, the Company issued $1.5 billion of unsecured senior notes including $800 million of five-year notes which matured November 15, 2010 and 10-year notes which mature November 15, 2015, and incurred debt issuance costs of $7 million. Interest payments are due semi-annually on May 15 and November 15. | ||||||||||||||
The Company’s senior notes due 2015, 2019, 2020 and 2023 may be redeemed, in whole or in part, at any time prior to maturity at a price equal to the greater of the principal amount and the present value of remaining scheduled payments, discounted to the redemption date, plus accrued and unpaid interest. The Company’s senior notes due 2039 may be redeemed, in whole or in part, on or after June 15, 2014 at a price equal to the principal amount, plus accrued and unpaid interest to the redemption date. | ||||||||||||||
The Company’s junior subordinated notes due 2066 may be redeemed, in whole or in part, on or after June 1, 2016 at a price equal to the principal amount plus accrued and compounded interest, provided that if the notes are not redeemed in whole, at least $50 million aggregate principal amount of notes (excluding notes held by the Company) remain outstanding after the redemption. Otherwise, the Company’s junior subordinated notes due 2066 are redeemable in whole at any time, subject to make whole provisions, which are equal to the principal amount plus the present value of interest payments based on the terms of the note. | ||||||||||||||
The Company’s junior subordinated notes due 2066 and credit facility contain various administrative, reporting, legal and financial covenants. The Company was in compliance with all such covenants at both December 31, 2013 and 2012. | ||||||||||||||
At December 31, 2013, future maturities of Ameriprise Financial long-term debt were as follows: | ||||||||||||||
(in millions) | ||||||||||||||
2014 | $ | — | ||||||||||||
2015 | 350 | |||||||||||||
2016 | — | |||||||||||||
2017 | — | |||||||||||||
2018 | — | |||||||||||||
Thereafter | 2,294 | |||||||||||||
Total future maturities | $ | 2,644 | ||||||||||||
Short-term Borrowings | ||||||||||||||
The Company enters into repurchase agreements in exchange for cash, which it accounts for as secured borrowings. The Company has pledged Available-for-Sale securities consisting of agency residential mortgage backed securities and commercial mortgage backed securities to collateralize its obligation under the repurchase agreements. The fair value of the securities pledged is recorded in investments and was $52 million and $518 million at December 31, 2013 and 2012, respectively. The stated interest rate of the repurchase agreements is a weighted average annualized interest rate on repurchase agreements held as of the balance sheet date. | ||||||||||||||
The Company’s insurance subsidiary is a member of the FHLB of Des Moines which provides access to collateralized borrowings. In 2013, the Company began to borrow short-term funds under these FHLB advances. 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 $574 million at December 31, 2013. The stated interest rate of the FHLB advances is a weighted average annualized interest rate on the outstanding borrowings as of the balance sheet date. | ||||||||||||||
On September 30, 2013, the Company entered into a restated credit agreement for $500 million expiring on September 28, 2018. Under the terms of the agreement, the Company may increase the amount of this facility to $750 million upon satisfaction of certain approval requirements. Available borrowings under the agreement are reduced by any outstanding letters of credit. The Company had no borrowings outstanding under this facility and outstanding letters of credit issued against this facility were $2 million as of December 31, 2013. |
Fair_Values_of_Assets_and_Liab
Fair Values of Assets and Liabilities | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||
Fair Values of Assets and Liabilities | ' | ||||||||||||||||||||||||||||||||||||||||
Fair Values of Assets and Liabilities | |||||||||||||||||||||||||||||||||||||||||
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability is not exchanged subject to a forced liquidation or distressed sale. | |||||||||||||||||||||||||||||||||||||||||
Valuation Hierarchy | |||||||||||||||||||||||||||||||||||||||||
The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows: | |||||||||||||||||||||||||||||||||||||||||
Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. | |||||||||||||||||||||||||||||||||||||||||
Level 2 | Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities. | ||||||||||||||||||||||||||||||||||||||||
Level 3 | Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. | ||||||||||||||||||||||||||||||||||||||||
The following tables present the balances of assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis: | |||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Cash equivalents | $ | 12 | $ | 1,841 | $ | — | $ | 1,853 | |||||||||||||||||||||||||||||||||
Available-for-Sale securities: | |||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | — | 15,826 | 1,640 | 17,466 | |||||||||||||||||||||||||||||||||||||
Residential mortgage backed securities | — | 5,937 | 187 | 6,124 | |||||||||||||||||||||||||||||||||||||
Commercial mortgage backed securities | — | 2,711 | 30 | 2,741 | |||||||||||||||||||||||||||||||||||||
Asset backed securities | — | 1,244 | 260 | 1,504 | |||||||||||||||||||||||||||||||||||||
State and municipal obligations | — | 2,160 | — | 2,160 | |||||||||||||||||||||||||||||||||||||
U.S. government and agencies obligations | 17 | 35 | — | 52 | |||||||||||||||||||||||||||||||||||||
Foreign government bonds and obligations | — | 245 | — | 245 | |||||||||||||||||||||||||||||||||||||
Common stocks | 5 | 7 | 6 | 18 | |||||||||||||||||||||||||||||||||||||
Total Available-for-Sale securities | 22 | 28,165 | 2,123 | 30,310 | |||||||||||||||||||||||||||||||||||||
Trading securities | 3 | 32 | 2 | 37 | |||||||||||||||||||||||||||||||||||||
Separate account assets | — | 81,223 | — | 81,223 | |||||||||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||||||||
Interest rate derivative contracts | — | 1,570 | — | 1,570 | |||||||||||||||||||||||||||||||||||||
Equity derivative contracts | 265 | 1,576 | — | 1,841 | |||||||||||||||||||||||||||||||||||||
Credit derivative contracts | — | 3 | — | 3 | |||||||||||||||||||||||||||||||||||||
Foreign currency derivative contracts | 2 | 2 | — | 4 | |||||||||||||||||||||||||||||||||||||
Total other assets | 267 | 3,151 | — | 3,418 | |||||||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 304 | $ | 114,412 | $ | 2,125 | $ | 116,841 | |||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||
Policyholder account balances, future policy benefits and claims: | |||||||||||||||||||||||||||||||||||||||||
EIA embedded derivatives | $ | — | $ | 5 | $ | — | $ | 5 | |||||||||||||||||||||||||||||||||
IUL embedded derivatives | — | — | 125 | 125 | |||||||||||||||||||||||||||||||||||||
GMWB and GMAB embedded derivatives | — | — | (575 | ) | (575 | ) | (2) | ||||||||||||||||||||||||||||||||||
Total policyholder account balances, future policy benefits and claims | — | 5 | (450 | ) | (445 | ) | (1) | ||||||||||||||||||||||||||||||||||
Customer deposits | — | 7 | — | 7 | |||||||||||||||||||||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||||||||||||||||||||
Interest rate derivative contracts | — | 1,693 | — | 1,693 | |||||||||||||||||||||||||||||||||||||
Equity derivative contracts | 550 | 2,565 | — | 3,115 | |||||||||||||||||||||||||||||||||||||
Other | — | 12 | — | 12 | |||||||||||||||||||||||||||||||||||||
Total other liabilities | 550 | 4,270 | — | 4,820 | |||||||||||||||||||||||||||||||||||||
Total liabilities at fair value | $ | 550 | $ | 4,282 | $ | (450 | ) | $ | 4,382 | ||||||||||||||||||||||||||||||||
(1) The Company’s adjustment for nonperformance risk resulted in a $150 million cumulative decrease to the embedded derivatives. | |||||||||||||||||||||||||||||||||||||||||
(2) The fair value of the GMWB and GMAB embedded derivatives was a net asset at December 31, 2013 and the amount is reported as a contra liability. | |||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Cash equivalents | $ | 18 | $ | 1,539 | $ | — | $ | 1,557 | |||||||||||||||||||||||||||||||||
Available-for-Sale securities: | |||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | — | 17,051 | 1,764 | 18,815 | |||||||||||||||||||||||||||||||||||||
Residential mortgage backed securities | — | 5,145 | 284 | 5,429 | |||||||||||||||||||||||||||||||||||||
Commercial mortgage backed securities | — | 3,213 | 206 | 3,419 | |||||||||||||||||||||||||||||||||||||
Asset backed securities | — | 1,097 | 178 | 1,275 | |||||||||||||||||||||||||||||||||||||
State and municipal obligations | — | 2,239 | — | 2,239 | |||||||||||||||||||||||||||||||||||||
U.S. government and agencies obligations | 19 | 39 | — | 58 | |||||||||||||||||||||||||||||||||||||
Foreign government bonds and obligations | — | 224 | — | 224 | |||||||||||||||||||||||||||||||||||||
Common stocks | 3 | 4 | 6 | 13 | |||||||||||||||||||||||||||||||||||||
Other debt obligations | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Total Available-for-Sale securities | 22 | 29,012 | 2,438 | 31,472 | |||||||||||||||||||||||||||||||||||||
Trading securities | 1 | 24 | — | 25 | |||||||||||||||||||||||||||||||||||||
Separate account assets | — | 72,397 | — | 72,397 | |||||||||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||||||||
Interest rate derivative contracts | — | 2,358 | — | 2,358 | |||||||||||||||||||||||||||||||||||||
Equity derivative contracts | 285 | 973 | — | 1,258 | |||||||||||||||||||||||||||||||||||||
Credit derivative contracts | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Foreign currency derivative contracts | — | 6 | — | 6 | |||||||||||||||||||||||||||||||||||||
Commodity derivative contracts | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||
Total other assets | 285 | 3,338 | — | 3,623 | |||||||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 326 | $ | 106,310 | $ | 2,438 | $ | 109,074 | |||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||
Policyholder account balances, future policy benefits and claims: | |||||||||||||||||||||||||||||||||||||||||
EIA embedded derivatives | $ | — | $ | 2 | $ | — | $ | 2 | |||||||||||||||||||||||||||||||||
IUL embedded derivatives | — | — | 45 | 45 | |||||||||||||||||||||||||||||||||||||
GMWB and GMAB embedded derivatives | — | — | 833 | 833 | |||||||||||||||||||||||||||||||||||||
Total policyholder account balances, future policy benefits and claims | — | 2 | 878 | 880 | (1) | ||||||||||||||||||||||||||||||||||||
Customer deposits | — | 8 | — | 8 | |||||||||||||||||||||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||||||||||||||||||||
Interest rate derivative contracts | — | 1,486 | — | 1,486 | |||||||||||||||||||||||||||||||||||||
Equity derivative contracts | 258 | 1,565 | — | 1,823 | |||||||||||||||||||||||||||||||||||||
Foreign currency derivative contracts | 1 | — | — | 1 | |||||||||||||||||||||||||||||||||||||
Other | 1 | 3 | — | 4 | |||||||||||||||||||||||||||||||||||||
Total other liabilities | 260 | 3,054 | — | 3,314 | |||||||||||||||||||||||||||||||||||||
Total liabilities at fair value | $ | 260 | $ | 3,064 | $ | 878 | $ | 4,202 | |||||||||||||||||||||||||||||||||
(1) The Company’s adjustment for nonperformance risk resulted in a $398 million cumulative decrease to the embedded derivatives. | |||||||||||||||||||||||||||||||||||||||||
The following tables provide a summary of changes in Level 3 assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis: | |||||||||||||||||||||||||||||||||||||||||
Available-for-Sale Securities | Policyholder Account Balances, | ||||||||||||||||||||||||||||||||||||||||
Future Policy Benefits and Claims | |||||||||||||||||||||||||||||||||||||||||
Corporate Debt Securities | Residential Mortgage Backed Securities | Commercial Mortgage Backed Securities | Asset Backed Securities | Common Stocks | Total | Trading Securities | IUL Embedded Derivatives | GMWB and GMAB Embedded Derivatives | Total | ||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2013 | $ | 1,764 | $ | 284 | $ | 206 | $ | 178 | $ | 6 | $ | 2,438 | $ | — | $ | (45 | ) | $ | (833 | ) | $ | (878 | ) | ||||||||||||||||||
Total gains (losses) included in: | |||||||||||||||||||||||||||||||||||||||||
Net income | (3 | ) | — | — | 2 | — | (1 | ) | (1) | — | (19 | ) | (2) | 1,617 | (3) | 1,598 | |||||||||||||||||||||||||
Other comprehensive | (41 | ) | — | (6 | ) | 9 | 1 | (37 | ) | — | — | — | — | ||||||||||||||||||||||||||||
income | |||||||||||||||||||||||||||||||||||||||||
Purchases | 135 | 335 | 25 | 259 | — | 754 | 2 | — | — | — | |||||||||||||||||||||||||||||||
Sales | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Issues | — | — | — | — | — | — | — | (62 | ) | (228 | ) | (290 | ) | ||||||||||||||||||||||||||||
Settlements | (215 | ) | (18 | ) | (36 | ) | (5 | ) | — | (274 | ) | — | 1 | 19 | 20 | ||||||||||||||||||||||||||
Transfers into Level 3 | — | — | — | 8 | — | 8 | — | — | — | — | |||||||||||||||||||||||||||||||
Transfers out of Level 3 | — | (414 | ) | (159 | ) | (191 | ) | (1 | ) | (765 | ) | — | — | — | — | ||||||||||||||||||||||||||
Balance, December 31, 2013 | $ | 1,640 | $ | 187 | $ | 30 | $ | 260 | $ | 6 | $ | 2,123 | $ | 2 | $ | (125 | ) | $ | 575 | $ | 450 | ||||||||||||||||||||
Changes in unrealized gains (losses) relating to assets and liabilities held at December 31, 2013 included in: | |||||||||||||||||||||||||||||||||||||||||
Net investment income | $ | (3 | ) | $ | — | $ | — | $ | 2 | $ | — | $ | (1 | ) | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Interest credited to fixed accounts | — | — | — | — | — | — | — | (19 | ) | — | (19 | ) | |||||||||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | — | — | — | — | — | — | — | — | 1,598 | 1,598 | |||||||||||||||||||||||||||||||
(1) Included in net investment income in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||
(2) Included in interest credited to fixed accounts in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||
(3) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||
Available-for-Sale Securities | Policyholder Account Balances, | ||||||||||||||||||||||||||||||||||||||||
Future Policy Benefits and Claims | |||||||||||||||||||||||||||||||||||||||||
Corporate Debt Securities | Residential Mortgage Backed Securities | Commercial Mortgage Backed Securities | Asset Backed Securities | Common Stocks | Total | IUL Embedded Derivatives | GMWB and GMAB Embedded Derivatives | Total | |||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2012 | $ | 1,355 | $ | 215 | $ | 50 | $ | 189 | $ | 5 | $ | 1,814 | $ | — | $ | (1,585 | ) | $ | (1,585 | ) | |||||||||||||||||||||
Total gains (losses) included in: | |||||||||||||||||||||||||||||||||||||||||
Net income | (1 | ) | (45 | ) | 1 | 3 | — | (42 | ) | (1) | 8 | (2) | 948 | (3) | 956 | ||||||||||||||||||||||||||
Other comprehensive income | 12 | 68 | 8 | 1 | — | 89 | — | — | — | ||||||||||||||||||||||||||||||||
Purchases | 543 | 309 | 20 | — | 2 | 874 | — | — | — | ||||||||||||||||||||||||||||||||
Sales | — | (75 | ) | (19 | ) | (18 | ) | — | (112 | ) | — | — | — | ||||||||||||||||||||||||||||
Issues | — | — | — | — | — | — | (31 | ) | (188 | ) | (219 | ) | |||||||||||||||||||||||||||||
Settlements | (155 | ) | (56 | ) | (3 | ) | (19 | ) | — | (233 | ) | — | (8 | ) | (8 | ) | |||||||||||||||||||||||||
Transfers into Level 3 | 10 | 42 | 183 | 22 | — | 257 | (22 | ) | — | (22 | ) | ||||||||||||||||||||||||||||||
Transfers out of Level 3 | — | (174 | ) | (34 | ) | — | (1 | ) | (209 | ) | — | — | — | ||||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 1,764 | $ | 284 | $ | 206 | $ | 178 | $ | 6 | $ | 2,438 | $ | (45 | ) | $ | (833 | ) | $ | (878 | ) | ||||||||||||||||||||
Changes in unrealized gains (losses) relating to assets and liabilities held at December 31, 2012 included in: | |||||||||||||||||||||||||||||||||||||||||
Net investment income | $ | (1 | ) | $ | — | $ | 1 | $ | 2 | $ | — | $ | 2 | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Interest credited to fixed accounts | — | — | — | — | — | — | 8 | — | 8 | ||||||||||||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | — | — | — | — | — | — | — | 908 | 908 | ||||||||||||||||||||||||||||||||
(1) Included in net investment income in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||
(2) Included in interest credited to fixed accounts in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||
(3) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||
Available-for-Sale Securities | Policyholder | ||||||||||||||||||||||||||||||||||||||||
Account Balances, | |||||||||||||||||||||||||||||||||||||||||
Future Policy Benefits | |||||||||||||||||||||||||||||||||||||||||
and Claims | |||||||||||||||||||||||||||||||||||||||||
Corporate Debt Securities | Residential Mortgage Backed Securities | Commercial Mortgage Backed Securities | Asset Backed Securities | Common Stocks | Total | GMWB | |||||||||||||||||||||||||||||||||||
and GMAB | |||||||||||||||||||||||||||||||||||||||||
Embedded | |||||||||||||||||||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2011 | $ | 1,325 | $ | 4,532 | $ | 51 | $ | 191 | $ | 5 | $ | 6,104 | $ | (421 | ) | ||||||||||||||||||||||||||
Total gains (losses) included in: | |||||||||||||||||||||||||||||||||||||||||
Net income | 7 | 53 | — | 3 | — | 63 | (1) | (1,007 | ) | (2) | |||||||||||||||||||||||||||||||
Other comprehensive income | 11 | (118 | ) | — | (10 | ) | — | (117 | ) | — | |||||||||||||||||||||||||||||||
Purchases | 189 | 556 | 104 | 118 | — | 967 | — | ||||||||||||||||||||||||||||||||||
Sales | (51 | ) | (2 | ) | — | — | — | (53 | ) | — | |||||||||||||||||||||||||||||||
Issues | — | — | — | — | — | — | (149 | ) | |||||||||||||||||||||||||||||||||
Settlements | (122 | ) | (943 | ) | (4 | ) | (29 | ) | — | (1,098 | ) | (8 | ) | ||||||||||||||||||||||||||||
Transfers into Level 3 | 7 | — | 1 | 14 | — | 22 | — | ||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | (11 | ) | (3,863 | ) | (102 | ) | (98 | ) | — | (4,074 | ) | — | |||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 1,355 | $ | 215 | $ | 50 | $ | 189 | $ | 5 | $ | 1,814 | $ | (1,585 | ) | ||||||||||||||||||||||||||
Changes in unrealized gains (losses) relating to assets and liabilities held at December 31, 2011 included in: | |||||||||||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | (33 | ) | $ | — | $ | 2 | $ | — | $ | (31 | ) | $ | — | |||||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | — | — | — | — | — | — | (1,035 | ) | |||||||||||||||||||||||||||||||||
(1) Included in net investment income in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||
(2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||
The impact to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $(168) million, $(71) million and $216 million, net of DAC, DSIC and unearned revenue amortization and the reinsurance accrual, for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||||||||||||||
During the years ended December 31, 2012 and 2011, transfers from Level 3 included certain non-agency residential mortgage backed securities with a fair value of approximately $146 million and $3.9 billion, respectively. The transfers reflect improved pricing transparency of these securities, a continuing trend of increased activity in the non-agency residential mortgage backed securities market and observability of significant inputs to the valuation methodology. All other securities transferred from Level 3 represent securities with fair values that are now obtained from a third party pricing service with observable inputs. Securities transferred to Level 3 represent securities with fair values that are now based on a single non-binding broker quote. The transfer of the IUL embedded derivatives to Level 3 is due to the impact of the unobservable inputs to the valuation becoming more significant during 2012. The Company recognizes transfers between levels of the fair value hierarchy as of the beginning of the quarter in which each transfer occurred. For assets and liabilities held at the end of the reporting periods that are measured at fair value on a recurring basis, there were no transfers between Level 1 and Level 2. | |||||||||||||||||||||||||||||||||||||||||
The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities: | |||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range | Weighted Average | |||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Corporate debt securities (private placements) | $ | 1,589 | Discounted cash flow | Yield/spread to U.S. Treasuries | 0.9 | % | – | 5.30% | 1.50% | ||||||||||||||||||||||||||||||||
IUL embedded derivatives | $ | 125 | Discounted cash flow | Nonperformance risk (3) | 74 | bps | |||||||||||||||||||||||||||||||||||
GMWB and GMAB embedded derivatives | $ | (575 | ) | Discounted cash flow | Utilization of guaranteed withdrawals (1) | 0 | % | – | 51.10% | ||||||||||||||||||||||||||||||||
Surrender rate | 0.1 | % | – | 57.90% | |||||||||||||||||||||||||||||||||||||
Market volatility (2) | 4.9 | % | – | 18.80% | |||||||||||||||||||||||||||||||||||||
Nonperformance risk (3) | 74 | bps | |||||||||||||||||||||||||||||||||||||||
Elective contractholder strategy allocations (4) | 0 | % | – | 50.00% | |||||||||||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range | Weighted Average | |||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Corporate debt securities (private placements) | $ | 1,712 | Discounted cash flow | Yield/spread to U.S. Treasuries | 1.1 | % | – | 8.50% | 2.10% | ||||||||||||||||||||||||||||||||
IUL embedded derivatives | $ | 45 | Discounted cash flow | Nonperformance risk (3) | 97 | bps | |||||||||||||||||||||||||||||||||||
GMWB and GMAB embedded derivatives | $ | 833 | Discounted cash flow | Utilization of guaranteed withdrawals (1) | 0 | % | – | 56.40% | |||||||||||||||||||||||||||||||||
Surrender rate | 0 | % | – | 56.30% | |||||||||||||||||||||||||||||||||||||
Market volatility (2) | 5.6 | % | – | 21.20% | |||||||||||||||||||||||||||||||||||||
Nonperformance risk (3) | 97 | bps | |||||||||||||||||||||||||||||||||||||||
(1) The utilization of guaranteed withdrawals represents the percentage of policyholders that will begin withdrawing in any given year. | |||||||||||||||||||||||||||||||||||||||||
(2) Market volatility is implied volatility of fund of funds and managed volatility funds. | |||||||||||||||||||||||||||||||||||||||||
(3) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. | |||||||||||||||||||||||||||||||||||||||||
(4) The elective allocation represents the percentage of contractholders that are assumed to electively switch their investment allocation to a different allocation model. | |||||||||||||||||||||||||||||||||||||||||
Level 3 measurements not included in the table above are obtained from non-binding broker quotes where unobservable inputs are not reasonably available to the Company. | |||||||||||||||||||||||||||||||||||||||||
Sensitivity of Fair Value Measurements to Changes in Unobservable Inputs | |||||||||||||||||||||||||||||||||||||||||
Significant increases (decreases) in the yield/spread to U.S. Treasuries used in the fair value measurement of Level 3 corporate debt securities in isolation would result in a significantly lower (higher) fair value measurement. | |||||||||||||||||||||||||||||||||||||||||
Significant increases (decreases) in nonperformance risk used in the fair value measurement of the IUL embedded derivatives in isolation would result in a significantly lower (higher) fair value measurement. | |||||||||||||||||||||||||||||||||||||||||
Significant increases (decreases) in utilization, surrender rate and volatility used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly lower (higher) asset value, possibly creating a liability. Significant increases (decreases) in nonperformance risk and elective investment allocation model used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly higher (lower) asset 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 system and whether the value of the guaranteed benefit exceeds the contract accumulation value. | |||||||||||||||||||||||||||||||||||||||||
Determination of Fair Value | |||||||||||||||||||||||||||||||||||||||||
The Company uses valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The Company’s market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company’s income approach uses valuation techniques to convert future projected cash flows to a single discounted present value amount. When applying either approach, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. | |||||||||||||||||||||||||||||||||||||||||
The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy. | |||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Cash Equivalents | |||||||||||||||||||||||||||||||||||||||||
Cash equivalents include highly liquid investments with original maturities of 90 days or less. Actively traded money market funds are measured at their net asset value (“NAV”) and 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. | |||||||||||||||||||||||||||||||||||||||||
Investments (Available-for-Sale Securities and Trading 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, asset backed securities, municipal bonds and U.S. agency and foreign government securities. The fair value of these Level 2 securities is based on a market approach with prices obtained from third party pricing services. Observable inputs used to value these securities can include, but are not limited to, reported trades, benchmark yields, issuer spreads and non-binding broker quotes. Level 3 securities primarily include certain corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and asset backed securities. The fair value of corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and certain asset backed securities classified as Level 3 is typically based on a single non-binding broker quote. The underlying inputs used for some of the non-binding broker quotes are not readily available to the Company. The Company’s privately placed corporate bonds are typically based on a single non-binding broker quote. In addition to the general pricing controls, the Company reviews the broker prices to ensure that the broker quotes are reasonable and, when available, compares prices of privately issued securities to public issues from the same issuer to ensure that the implicit illiquidity premium applied to the privately placed investment is reasonable considering investment characteristics, maturity, and average life of the investment. | |||||||||||||||||||||||||||||||||||||||||
In consideration of the above, management is responsible for the fair values recorded on the financial statements. Prices received from third party pricing services are subjected to exception reporting that identifies investments with significant daily price movements as well as no movements. The Company reviews the exception reporting and resolves the exceptions through reaffirmation of the price or recording an appropriate fair value estimate. The Company also performs subsequent transaction testing. The Company performs annual due diligence of third party pricing services. The Company’s due diligence procedures include assessing the vendor’s valuation qualifications, control environment, analysis of asset-class specific valuation methodologies, and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. The Company also considers the results of its exception reporting controls and any resulting price challenges that arise. | |||||||||||||||||||||||||||||||||||||||||
Separate Account Assets | |||||||||||||||||||||||||||||||||||||||||
The fair value of assets held by separate accounts is determined by the NAV of the funds in which those separate accounts are invested. The NAV represents the exit price for the separate account. Separate account assets are classified as Level 2 as they are traded in principal-to-principal markets with little publicly released pricing information. | |||||||||||||||||||||||||||||||||||||||||
Other Assets | |||||||||||||||||||||||||||||||||||||||||
Derivatives that are measured using quoted prices in active markets, such as foreign currency forwards, or derivatives that are exchange-traded are classified as Level 1 measurements. The fair value of derivatives that are traded in less active over-the-counter (“OTC”) markets are 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 at December 31, 2013 and 2012. See Note 15 and Note 16 for further information on the credit risk of derivative instruments and related collateral. | |||||||||||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||
Policyholder Account Balances, Future Policy Benefits and Claims | |||||||||||||||||||||||||||||||||||||||||
The Company values the embedded derivatives attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculate fair value by discounting expected cash flows from benefits plus margins for profit, risk and expenses less embedded derivative fees. The projected cash flows used by these models include observable capital market assumptions and incorporate significant unobservable inputs related to contractholder behavior assumptions, implied volatility, and margins for risk, profit and expenses that the Company believes an exit market participant would expect. The fair value also reflects a current estimate of the Company’s nonperformance risk specific to these embedded derivatives. Given the significant unobservable inputs to this valuation, these measurements are classified as Level 3. The embedded derivatives attributable to these provisions are recorded in policyholder account balances, future policy benefits and claims. | |||||||||||||||||||||||||||||||||||||||||
The Company uses various Black-Scholes calculations to determine the fair value of the embedded derivatives associated with the provisions of its EIA and IUL products. Significant inputs to the EIA calculation include observable interest rates, volatilities and equity index levels and, therefore, are classified as Level 2. The fair value of the IUL embedded derivatives includes significant observable interest rates, volatilities and equity index levels and the significant unobservable estimate of the Company’s nonperformance risk. Given the significance of the nonperformance risk assumption to the fair value, the IUL embedded derivatives are classified as Level 3. The embedded derivatives attributable to these provisions are recorded in policyholder account balances, future policy benefits and claims. | |||||||||||||||||||||||||||||||||||||||||
The Company’s Corporate Actuarial Department calculates the fair value of the embedded derivatives on a monthly basis. During this process, control checks are performed to validate the completeness of the data. Actuarial management approves various components of the valuation along with the final results. The change in the fair value of the embedded derivatives is reviewed monthly with senior management. The Level 3 inputs into the valuation are consistent with the pricing assumptions and updated as experience develops. Significant unobservable inputs that reflect policyholder behavior are reviewed quarterly along with other valuation assumptions. | |||||||||||||||||||||||||||||||||||||||||
Customer Deposits | |||||||||||||||||||||||||||||||||||||||||
The Company uses various Black-Scholes calculations to determine the fair value of the embedded derivative liability associated with the provisions of its stock market certificates. The inputs to these calculations are primarily market observable and include interest rates, volatilities and equity index levels. As a result, these measurements are classified as Level 2. | |||||||||||||||||||||||||||||||||||||||||
Other Liabilities | |||||||||||||||||||||||||||||||||||||||||
Derivatives that are measured using quoted prices in active markets, such as foreign currency forwards, or derivatives that are exchange-traded, are classified as Level 1 measurements. The fair value of derivatives that are traded in less active OTC markets are 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 at December 31, 2013 and 2012. See Note 15 and Note 16 for further information on the credit risk of derivative instruments and related collateral. | |||||||||||||||||||||||||||||||||||||||||
Securities sold but not yet purchased include highly liquid investments which are short-term in nature. Securities sold but not yet purchased are measured using 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 and are classified as Level 2. | |||||||||||||||||||||||||||||||||||||||||
During the reporting periods, there were no material assets or liabilities measured at fair value on a nonrecurring basis. | |||||||||||||||||||||||||||||||||||||||||
The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value. All other financial instruments that are reported at fair value have been included above in the table with balances of assets and liabilities Ameriprise Financial measured at fair value on a recurring basis. | |||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Carrying Value | Fair Value | ||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||||||||||||||||||
Mortgage loans, net | $ | 3,510 | $ | — | $ | — | $ | 3,490 | $ | 3,490 | |||||||||||||||||||||||||||||||
Policy and certificate loans | 774 | — | 1 | 765 | 766 | ||||||||||||||||||||||||||||||||||||
Receivables | 1,141 | 107 | 1,026 | 8 | 1,141 | ||||||||||||||||||||||||||||||||||||
Restricted and segregated cash | 2,360 | 2,360 | — | — | 2,360 | ||||||||||||||||||||||||||||||||||||
Other investments and assets | 440 | — | 368 | 73 | 441 | ||||||||||||||||||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||||||||||||||
Policyholder account balances, future policy benefits and claims | $ | 14,106 | $ | — | $ | — | $ | 14,724 | $ | 14,724 | |||||||||||||||||||||||||||||||
Investment certificate reserves | 3,977 | — | — | 3,982 | 3,982 | ||||||||||||||||||||||||||||||||||||
Brokerage customer deposits | 3,088 | 3,088 | — | — | 3,088 | ||||||||||||||||||||||||||||||||||||
Separate account liabilities | 4,007 | — | 4,007 | — | 4,007 | ||||||||||||||||||||||||||||||||||||
Debt and other liabilities | 3,416 | 137 | 3,372 | 134 | 3,643 | ||||||||||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||
Carrying Value | Fair Value | ||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||||||||||||||||||
Mortgage loans, net | $ | 3,609 | $ | — | $ | — | $ | 3,694 | $ | 3,694 | |||||||||||||||||||||||||||||||
Policy and certificate loans | 754 | — | 2 | 725 | 727 | ||||||||||||||||||||||||||||||||||||
Receivables | 1,067 | 135 | 926 | 12 | 1,073 | ||||||||||||||||||||||||||||||||||||
Restricted and segregated cash | 2,538 | 2,538 | — | — | 2,538 | ||||||||||||||||||||||||||||||||||||
Other investments and assets | 390 | — | 333 | 60 | 393 | ||||||||||||||||||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||||||||||||||
Policyholder account balances, future policy benefits and claims | $ | 14,701 | $ | — | $ | — | $ | 15,982 | $ | 15,982 | |||||||||||||||||||||||||||||||
Investment certificate reserves | 3,504 | — | — | 3,494 | 3,494 | ||||||||||||||||||||||||||||||||||||
Brokerage customer deposits | 3,024 | 3,024 | — | — | 3,024 | ||||||||||||||||||||||||||||||||||||
Separate account liabilities | 3,362 | — | 3,362 | — | 3,362 | ||||||||||||||||||||||||||||||||||||
Debt and other liabilities | 3,033 | 145 | 3,109 | 142 | 3,396 | ||||||||||||||||||||||||||||||||||||
Mortgage Loans, Net | |||||||||||||||||||||||||||||||||||||||||
The fair value of commercial mortgage loans, except those with significant credit deterioration, is determined by discounting contractual cash flows using discount rates that reflect current pricing for loans with similar remaining maturities, liquidity and characteristics including loan-to-value ratio, occupancy rate, refinance risk, debt-service coverage, location, and property condition. For commercial mortgage loans with significant credit deterioration, fair value is determined using the same adjustments as above with an additional adjustment for the Company’s estimate of the amount recoverable on the loan. Given the significant unobservable inputs to the valuation of commercial mortgage loans, these measurements are classified as Level 3. | |||||||||||||||||||||||||||||||||||||||||
The fair value of consumer loans is determined by discounting estimated cash flows and incorporating adjustments for prepayment, administration expenses, loss severity, liquidity and credit loss estimates, with discount rates based on the Company’s estimate of current market conditions. The fair value of consumer loans is classified as Level 3 as the valuation includes significant unobservable inputs. | |||||||||||||||||||||||||||||||||||||||||
Policy and Certificate Loans | |||||||||||||||||||||||||||||||||||||||||
Policy loans represent loans made against the cash surrender value of the underlying life insurance or annuity product. These loans and the related interest are usually realized at death of the policyholder or contractholder or at surrender of the contract and are not transferable without the underlying insurance or annuity contract. The fair value of policy loans is determined by estimating expected cash flows discounted at rates based on the U.S. Treasury curve. Policy loans are classified as Level 3 as the discount rate used may be adjusted for the underlying performance of individual policies. | |||||||||||||||||||||||||||||||||||||||||
Certificate loans represent loans made against and collateralized by the underlying certificate balance. These loans do not transfer to third parties separate from the underlying certificate. The outstanding balance of these loans is considered a reasonable estimate of fair value and is classified as Level 2. | |||||||||||||||||||||||||||||||||||||||||
Receivables | |||||||||||||||||||||||||||||||||||||||||
Brokerage margin loans are measured at outstanding balances, which are a reasonable estimate of fair value because of the sufficiency of the collateral and short term nature of these loans. Margin loans that are sufficiently collateralized are classified as Level 2. Margin loans that are not sufficiently collateralized are classified as Level 3. | |||||||||||||||||||||||||||||||||||||||||
Securities borrowed require the Company to deposit cash or collateral with the lender. As the market value of the securities borrowed is monitored daily, the carrying value is a reasonable estimate of fair value. The fair value of securities borrowed is classified as Level 1 as the value of the underlying securities is based on unadjusted prices for identical assets. | |||||||||||||||||||||||||||||||||||||||||
Restricted and Segregated Cash | |||||||||||||||||||||||||||||||||||||||||
Restricted and segregated cash is generally set aside for specific business transactions and restrictions are specific to the Company and do not transfer to third party market participants; therefore, the carrying amount is a reasonable estimate of fair value. | |||||||||||||||||||||||||||||||||||||||||
Amounts segregated under federal and other regulations may also reflect resale agreements and are measured at the cost at which the securities will be sold. This measurement is a reasonable estimate of fair value because of the short time between entering into the transaction and its expected realization and the reduced risk of credit loss due to pledging U.S. government-backed securities as collateral. | |||||||||||||||||||||||||||||||||||||||||
The fair value of restricted and segregated cash is classified as Level 1. | |||||||||||||||||||||||||||||||||||||||||
Other Investments and Assets | |||||||||||||||||||||||||||||||||||||||||
Other investments and assets primarily consist of syndicated loans. The fair value of syndicated loans is obtained from a third party pricing service or non-binding broker quotes. Syndicated loans that are priced by multiple non-binding broker quotes are classified as Level 2 and loans priced using a single non-binding broker quote are classified as Level 3. | |||||||||||||||||||||||||||||||||||||||||
Other investments and assets also include the Company’s membership in the Federal Home Loan Bank of Des Moines and investments related to the Community Reinvestment Act. The fair value of these assets is approximated by the carrying value and classified as Level 3 due to restrictions on transfer and lack of liquidity in the primary market for these assets. | |||||||||||||||||||||||||||||||||||||||||
Policyholder Account Balances, Future Policy Benefits and Claims | |||||||||||||||||||||||||||||||||||||||||
The fair value of fixed annuities, in deferral status, is determined by discounting cash flows using a risk neutral discount rate with adjustments for profit margin, expense margin, early policy surrender behavior, a provision for adverse deviation from estimated early policy surrender behavior and the Company’s nonperformance risk specific to these liabilities. The fair value of other liabilities including non-life contingent fixed annuities in payout status, equity indexed annuity host contracts and the fixed portion of a small number of variable annuity contracts classified as investment contracts is determined in a similar manner. Given the use of significant unobservable inputs to these valuations, the measurements are classified as Level 3. | |||||||||||||||||||||||||||||||||||||||||
Investment Certificate Reserves | |||||||||||||||||||||||||||||||||||||||||
The fair value of investment certificate reserves is determined by discounting cash flows using discount rates that reflect current pricing for assets with similar terms and characteristics, with adjustments for early withdrawal behavior, penalty fees, expense margin and the Company’s nonperformance risk specific to these liabilities. Given the use of significant unobservable inputs to this valuation, the measurement is classified as Level 3. | |||||||||||||||||||||||||||||||||||||||||
Brokerage Customer Deposits | |||||||||||||||||||||||||||||||||||||||||
Brokerage customer deposits are liabilities with no defined maturities and fair value is the amount payable on demand at the reporting date. The fair value of these deposits is classified as Level 1. | |||||||||||||||||||||||||||||||||||||||||
Separate Account Liabilities | |||||||||||||||||||||||||||||||||||||||||
Certain separate account liabilities are classified as investment contracts and are carried at an amount equal to the related separate account assets. The NAV of the related separate account assets represents the exit price for the separate account liabilities. Separate account liabilities are classified as Level 2 as they are traded in principal-to-principal markets with little publicly released pricing information. A nonperformance adjustment is not included as the related separate account assets act as collateral for these liabilities and minimize nonperformance risk. | |||||||||||||||||||||||||||||||||||||||||
Debt and Other Liabilities | |||||||||||||||||||||||||||||||||||||||||
The fair value of long-term debt is based on quoted prices in active markets, when available. If quoted prices are not available, fair values are obtained from third party pricing services, broker quotes, or other model-based valuation techniques such as present value of cash flows. The fair value of long-term debt is classified as Level 2. | |||||||||||||||||||||||||||||||||||||||||
The fair value of short-term borrowings is obtained from a third party pricing service. A nonperformance adjustment is not included as collateral requirements for these borrowings minimize the nonperformance risk. The fair value of short-term borrowings is classified as Level 2. | |||||||||||||||||||||||||||||||||||||||||
The fair value of future funding commitments to affordable housing partnerships is determined by discounting cash flows. The fair value of these commitments includes an adjustment for the Company’s nonperformance risk and is classified as Level 3 due to the use of the significant unobservable input. | |||||||||||||||||||||||||||||||||||||||||
Securities loaned require the borrower to deposit cash or collateral with the Company. As the market value of the securities loaned is monitored daily, the carrying value is a reasonable estimate of fair value. Securities loaned are classified as Level 1 as the fair value of the underlying securities is based on unadjusted prices for identical assets. |
Offsetting_Assets_and_Liabilit
Offsetting Assets and Liabilities | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
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, repurchase agreements and securities borrowing and lending agreements are subject to master netting arrangements and collateral arrangements and qualify for offset. A master netting arrangement with a counterparty creates a right of offset for amounts due to and from that same counterparty that is enforceable in the event of a default or bankruptcy. Securities borrowed and loaned result from transactions between the Company’s broker dealer subsidiary and other financial institutions and are recorded at the amount of cash collateral advanced or received. 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: | ||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Amounts of Assets Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | |||||||||||||||||||||||||
Financial Instruments (1) | Cash Collateral | Securities Collateral | Net Amount | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||
OTC | $ | 3,337 | $ | — | $ | 3,337 | $ | (3,227 | ) | $ | (75 | ) | $ | (15 | ) | $ | 20 | |||||||||||
OTC cleared | 21 | — | 21 | (20 | ) | (1 | ) | — | — | |||||||||||||||||||
Exchange-traded | 60 | — | 60 | — | — | — | 60 | |||||||||||||||||||||
Total derivatives | 3,418 | — | 3,418 | (3,247 | ) | (76 | ) | (15 | ) | 80 | ||||||||||||||||||
Securities borrowed | 107 | — | 107 | (15 | ) | — | (90 | ) | 2 | |||||||||||||||||||
Total | $ | 3,525 | $ | — | $ | 3,525 | $ | (3,262 | ) | $ | (76 | ) | $ | (105 | ) | $ | 82 | |||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Amounts of Assets Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | |||||||||||||||||||||||||
Financial Instruments (1) | Cash Collateral | Securities Collateral | Net Amount | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||
OTC | $ | 3,527 | $ | — | $ | 3,527 | $ | (2,706 | ) | $ | (428 | ) | $ | (355 | ) | $ | 38 | |||||||||||
Exchange-traded | 96 | — | 96 | — | — | — | 96 | |||||||||||||||||||||
Total derivatives | 3,623 | — | 3,623 | (2,706 | ) | (428 | ) | (355 | ) | 134 | ||||||||||||||||||
Securities borrowed | 135 | — | 135 | (66 | ) | — | (68 | ) | 1 | |||||||||||||||||||
Total | $ | 3,758 | $ | — | $ | 3,758 | $ | (2,772 | ) | $ | (428 | ) | $ | (423 | ) | $ | 135 | |||||||||||
(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: | ||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Amounts of Liabilities Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | |||||||||||||||||||||||||
Financial Instruments (1) | Cash Collateral | Securities Collateral | Net Amount | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||
OTC | $ | 4,786 | $ | — | $ | 4,786 | $ | (3,227 | ) | $ | — | $ | (1,498 | ) | $ | 61 | ||||||||||||
OTC cleared | 22 | — | 22 | (20 | ) | (2 | ) | — | — | |||||||||||||||||||
Total derivatives | 4,808 | — | 4,808 | (3,247 | ) | (2 | ) | (1,498 | ) | 61 | ||||||||||||||||||
Securities loaned | 136 | — | 136 | (15 | ) | — | (117 | ) | 4 | |||||||||||||||||||
Repurchase agreements | 50 | — | 50 | — | — | (50 | ) | — | ||||||||||||||||||||
Total | $ | 4,994 | $ | — | $ | 4,994 | $ | (3,262 | ) | $ | (2 | ) | $ | (1,665 | ) | $ | 65 | |||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Amounts of Liabilities Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | |||||||||||||||||||||||||
Financial Instruments (1) | Cash Collateral | Securities Collateral | Net Amount | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
OTC derivatives | $ | 3,310 | $ | — | $ | 3,310 | $ | (2,706 | ) | $ | (67 | ) | $ | (531 | ) | $ | 6 | |||||||||||
Securities loaned | 145 | — | 145 | (66 | ) | — | (77 | ) | 2 | |||||||||||||||||||
Repurchase agreements | 501 | — | 501 | — | — | (501 | ) | — | ||||||||||||||||||||
Total | $ | 3,956 | $ | — | $ | 3,956 | $ | (2,772 | ) | $ | (67 | ) | $ | (1,109 | ) | $ | 8 | |||||||||||
(1) Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. | ||||||||||||||||||||||||||||
In the tables above, the amounts of assets or liabilities presented in the Consolidated Balance Sheets 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 amounts of collateral may be greater than amounts presented in the tables. | ||||||||||||||||||||||||||||
The Company’s freestanding derivative instruments are reflected in other assets and other liabilities. Repurchase agreements are reflected in short-term borrowings. Securities borrowing and lending agreements are reflected in receivables and other liabilities, respectively. See Note 16 for additional disclosures related to the Company’s derivative instruments, Note 13 for additional disclosures related to the Company’s repurchase agreements and Note 4 for information related to derivatives held by consolidated investment entities. |
Derivatives_and_Hedging_Activi
Derivatives and Hedging Activities | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
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, foreign exchange and interest rate indices or prices. The Company primarily enters into derivative agreements for risk management purposes related to the Company’s products and operations. | |||||||||||||||||||||
The Company’s freestanding derivatives are recorded at fair value and are reflected in other assets or other liabilities. The Company’s freestanding derivative instruments are all subject to master netting arrangements. The Company’s policy on the recognition of derivatives on the Consolidated Balance Sheets is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. See Note 15 for additional information regarding the estimated fair value of the Company’s freestanding derivatives after considering the effect of master netting arrangements and collateral. | |||||||||||||||||||||
The Company uses derivatives as economic hedges and accounting hedges. The following table presents the balance sheet location and the gross fair value of derivative instruments, including embedded derivatives: | |||||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||
Balance Sheet | December 31, | Balance Sheet | December 31, | ||||||||||||||||||
Location | 2013 | 2012 | Location | 2013 | 2012 | ||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||
Fair value hedges | |||||||||||||||||||||
Fixed rate debt | Other assets | $ | 82 | $ | 167 | Other liabilities | $ | — | $ | — | |||||||||||
Total qualifying hedges | 82 | 167 | — | — | |||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||
GMWB and GMAB | |||||||||||||||||||||
Interest rate contracts | Other assets | 1,484 | 2,191 | Other liabilities | 1,672 | 1,486 | |||||||||||||||
Equity contracts | Other assets | 1,741 | 1,215 | Other liabilities | 3,028 | 1,792 | |||||||||||||||
Credit contracts | Other assets | 3 | — | Other liabilities | — | — | |||||||||||||||
Foreign currency contracts | Other assets | 2 | 6 | Other liabilities | — | — | |||||||||||||||
Embedded derivatives (1) | N/A | — | — | Policyholder account balances, | (575 | ) | (2) | 833 | |||||||||||||
future policy benefits and claims | |||||||||||||||||||||
Total GMWB and GMAB | 3,230 | 3,412 | 4,125 | 4,111 | |||||||||||||||||
Other derivatives: | |||||||||||||||||||||
Interest rate | |||||||||||||||||||||
Macro hedge program | Other assets | 4 | — | Other liabilities | 21 | — | |||||||||||||||
Equity | |||||||||||||||||||||
Macro hedge program | Other assets | — | — | Other liabilities | 8 | — | |||||||||||||||
EIA embedded derivatives | N/A | — | — | Policyholder account balances, | 5 | 2 | |||||||||||||||
future policy benefits and claims | |||||||||||||||||||||
IUL | Other assets | 27 | 6 | Other liabilities | 13 | 1 | |||||||||||||||
IUL embedded derivatives | N/A | — | — | Policyholder account balances, | 125 | 45 | |||||||||||||||
future policy benefits and claims | |||||||||||||||||||||
Stock market certificates | Other assets | 73 | 37 | Other liabilities | 66 | 30 | |||||||||||||||
Stock market certificates embedded derivatives | N/A | — | — | Customer deposits | 7 | 8 | |||||||||||||||
Foreign exchange | |||||||||||||||||||||
Foreign currency | Other assets | 2 | — | Other liabilities | — | 1 | |||||||||||||||
Commodity | |||||||||||||||||||||
Seed money | Other assets | — | 1 | Other liabilities | — | — | |||||||||||||||
Total other | 106 | 44 | 245 | 87 | |||||||||||||||||
Total non-designated hedges | 3,336 | 3,456 | 4,370 | 4,198 | |||||||||||||||||
Total derivatives | $ | 3,418 | $ | 3,623 | $ | 4,370 | $ | 4,198 | |||||||||||||
N/A Not applicable. | |||||||||||||||||||||
(1) | The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets. | ||||||||||||||||||||
(2) | The fair value of the GMWB and GMAB embedded derivatives was a net asset at December 31, 2013 and the amount is reported as a contra liability. | ||||||||||||||||||||
See Note 14 for additional information regarding the Company’s fair value measurement of derivative instruments. | |||||||||||||||||||||
Derivatives Not Designated as Hedges | |||||||||||||||||||||
The following table presents a summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations: | |||||||||||||||||||||
Derivatives not designated as | Location of Gain (Loss) on | Amount of Gain (Loss) on | |||||||||||||||||||
hedging instruments | Derivatives Recognized in Income | Derivatives Recognized in Income | |||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in millions) | |||||||||||||||||||||
GMWB and GMAB | |||||||||||||||||||||
Interest rate contracts | Benefits, claims, losses and settlement expenses | $ | (742 | ) | $ | 17 | $ | 709 | |||||||||||||
Equity contracts | Benefits, claims, losses and settlement expenses | (1,103 | ) | (1,218 | ) | 326 | |||||||||||||||
Credit contracts | Benefits, claims, losses and settlement expenses | 6 | (2 | ) | (12 | ) | |||||||||||||||
Foreign currency contracts | Benefits, claims, losses and settlement expenses | 26 | (1 | ) | (2 | ) | |||||||||||||||
Embedded derivatives (1) | Benefits, claims, losses and settlement expenses | 1,408 | 752 | (1,165 | ) | ||||||||||||||||
Total GMWB and GMAB | (405 | ) | (452 | ) | (144 | ) | |||||||||||||||
Other derivatives: | |||||||||||||||||||||
Interest rate | |||||||||||||||||||||
Macro hedge program | Benefits, claims, losses and settlement expenses | (15 | ) | — | — | ||||||||||||||||
Bank assets | Net investment income | — | (7 | ) | — | ||||||||||||||||
Tax hedge | Net investment income | — | 1 | — | |||||||||||||||||
Interest rate lock commitments | Other revenues | — | — | (1 | ) | ||||||||||||||||
Seed money | Net investment income | 2 | — | — | |||||||||||||||||
Equity | |||||||||||||||||||||
Macro hedge program | Benefits, claims, losses and settlement expenses | (8 | ) | — | — | ||||||||||||||||
IUL | Interest credited to fixed accounts | 11 | 1 | 1 | |||||||||||||||||
IUL embedded derivatives | Interest credited to fixed accounts | 16 | (4 | ) | (3 | ) | |||||||||||||||
EIA | Interest credited to fixed accounts | 3 | 1 | (1 | ) | ||||||||||||||||
EIA embedded derivatives | Interest credited to fixed accounts | (3 | ) | 1 | 1 | ||||||||||||||||
Stock market certificates | Banking and deposit interest expense | 7 | 6 | 1 | |||||||||||||||||
Stock market certificates embedded derivatives | Banking and deposit interest expense | (6 | ) | (5 | ) | — | |||||||||||||||
Seed money | Net investment income | (17 | ) | (6 | ) | 4 | |||||||||||||||
Ameriprise Financial Franchise Advisor Deferred Compensation Plan | Distribution expenses | — | 5 | (4 | ) | ||||||||||||||||
Deferred compensation | Distribution expenses | 9 | — | — | |||||||||||||||||
Deferred compensation | General and administrative expense | 5 | — | — | |||||||||||||||||
Foreign exchange | |||||||||||||||||||||
Seed money | General and administrative expense | — | — | (1 | ) | ||||||||||||||||
Foreign currency | Net investment income | (2 | ) | — | (3 | ) | |||||||||||||||
Commodity | |||||||||||||||||||||
Seed money | Net investment income | 1 | — | 1 | |||||||||||||||||
Total other | 3 | (7 | ) | (5 | ) | ||||||||||||||||
Total derivatives | $ | (402 | ) | $ | (459 | ) | $ | (149 | ) | ||||||||||||
(1) | The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets. | ||||||||||||||||||||
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 Company economically hedges the exposure related to non-life contingent GMWB and GMAB provisions primarily using various futures, options, interest rate swaptions, interest rate swaps, total return swaps, variance swaps and credit default swaps. At December 31, 2013 and 2012, the gross notional amount of derivative contracts for the Company’s GMWB and GMAB provisions was $144.5 billion and $142.1 billion, respectively. | |||||||||||||||||||||
The deferred premium associated with certain of the above options is paid or received semi-annually over the life of the option contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options: | |||||||||||||||||||||
Premiums Payable | Premiums Receivable | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||
2014 | $ | 378 | $ | 86 | |||||||||||||||||
2015 | 349 | 67 | |||||||||||||||||||
2016 | 305 | 51 | |||||||||||||||||||
2017 | 240 | 45 | |||||||||||||||||||
2018 | 196 | 56 | |||||||||||||||||||
2019-2027 | 601 | 79 | |||||||||||||||||||
Total | $ | 2,069 | $ | 384 | |||||||||||||||||
Actual timing and payment amounts may differ due to future contract settlements, modifications or exercises of options prior to the full premium being paid or received. | |||||||||||||||||||||
Beginning in the fourth quarter of 2013, the Company established a macro hedge program which uses a combination of options and/or swaps to provide protection against the statutory tail scenario risk arising from variable annuity reserves on our statutory surplus. The program also covers some of the residual risks not covered by other hedging activities. The gross notional amount of these derivative contracts was $710 million at December 31, 2013. | |||||||||||||||||||||
EIA, IUL and stock market certificate 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 EIA, IUL and stock market certificate products will positively or negatively impact earnings over the life of these products. As a means of economically hedging its obligations under the provisions of these products, the Company enters into index options and futures contracts. The gross notional amount of these derivative contracts was $1.5 billion and $1.3 billion at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||
The Company enters into futures and commodity swaps to manage its exposure to price risk arising from seed money investments in proprietary investment products. The gross notional amount of these contracts was $111 million and $146 million at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||
The Company enters into foreign currency forward contracts to economically hedge its exposure to certain receivables and obligations denominated in non-functional currencies. The gross notional amount of these contracts was $30 million and $14 million at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||
The Company enters into futures contracts to economically hedge its exposure related to compensation plans. The gross notional amount of these contracts was $224 million and $5 million at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||
Embedded Derivatives | |||||||||||||||||||||
Certain annuities contain GMAB and non-life contingent GMWB provisions, which are considered embedded derivatives. In addition, the equity component of the EIA, IUL and stock market certificate product obligations are also considered embedded derivatives. These embedded derivatives 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 discussed above, the Company uses derivatives to mitigate the financial statement impact of these embedded derivatives. | |||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||
The Company has designated and accounts for the following as cash flow hedges: (i) interest rate swaps to hedge interest rate exposure on debt, (ii) interest rate lock agreements to hedge interest rate exposure on debt issuances and (iii) swaptions used to hedge the risk of increasing interest rates on forecasted fixed premium product sales. | |||||||||||||||||||||
During the year ended December 31, 2012, the Company reclassified from accumulated other comprehensive income into earnings a $3 million gain on an interest rate hedge put in place in anticipation of issuing debt. The gain was reclassified due to the forecasted transaction not occurring according to the original hedge strategy. For the years ended December 31, 2013, 2012 and 2011, amounts recognized in earnings related to cash flow hedges due to ineffectiveness were $1 million, $1 million, and nil, respectively. The estimated net amount of existing pretax losses as of December 31, 2013 that the Company expects to reclassify to earnings within the next twelve months is $1 million, which consists of $5 million of pretax gains to be recorded as a reduction to interest and debt expense and $6 million of pretax losses to be recorded in net investment income. The following tables present the impact of the effective portion of the Company’s cash flow hedges on the Consolidated Statements of Operations and the Consolidated Statements of Equity: | |||||||||||||||||||||
Amount of Gain (Loss) Recognized in Other | |||||||||||||||||||||
Comprehensive Income (Loss) on Derivatives | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
Derivatives designated as hedging instruments | 2013 | 2012 | 2011 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||
Interest on debt | $ | — | $ | 14 | $ | (11 | ) | ||||||||||||||
Asset-based distribution fees | — | — | 1 | ||||||||||||||||||
Total | $ | — | $ | 14 | $ | (10 | ) | ||||||||||||||
Amount of Gain (Loss) Reclassified from Accumulated | |||||||||||||||||||||
Other Comprehensive Income into Income | |||||||||||||||||||||
Location of Gain (Loss) Reclassified from Accumulated | December 31, | ||||||||||||||||||||
Other Comprehensive Income into Income | 2013 | 2012 | 2011 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||
Other revenues | $ | — | $ | 3 | $ | 27 | |||||||||||||||
Interest and debt expense | 4 | 4 | 4 | ||||||||||||||||||
Distribution fees | — | — | 9 | ||||||||||||||||||
Net investment income | (5 | ) | (6 | ) | (6 | ) | |||||||||||||||
Total | $ | (1 | ) | $ | 1 | $ | 34 | ||||||||||||||
The following is a summary of unrealized derivatives gains (losses) included in accumulated other comprehensive income related to cash flow hedges: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in millions) | |||||||||||||||||||||
Net unrealized derivatives gains (losses) at January 1 | $ | (2 | ) | $ | (11 | ) | $ | 18 | |||||||||||||
Holding gains (losses) | — | 14 | (10 | ) | |||||||||||||||||
Reclassification of realized (gains) losses | 1 | (1 | ) | (34 | ) | ||||||||||||||||
Income tax benefit (provision) | — | (4 | ) | 15 | |||||||||||||||||
Net unrealized derivatives losses at December 31 | $ | (1 | ) | $ | (2 | ) | $ | (11 | ) | ||||||||||||
Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is 22 years and relates to forecasted debt interest payments. | |||||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||
In 2010, the Company entered into and designated as fair value hedges three interest rate swaps to convert senior notes due 2015, 2019 and 2020 from fixed rate debt to floating rate debt. The swaps have identical terms as the underlying debt being hedged so no ineffectiveness is expected to be realized. The Company recognizes gains and losses on the derivatives and the related hedged items within interest and debt expense. The following table presents the amounts recognized in income related to fair value hedges: | |||||||||||||||||||||
Derivatives designated as hedging instruments | Location of Gain | Amount of Gain Recognized in Income on Derivatives | |||||||||||||||||||
Recorded into Income | December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in millions) | |||||||||||||||||||||
Fixed rate debt | Interest and debt expense | $ | 57 | $ | 37 | $ | 41 | ||||||||||||||
Included in the table above is an $18 million gain from the partial settlement of the fair value hedge on the Company’s senior notes due November 2015, as a result of redeeming $350 million of the notes in the fourth quarter of 2013. | |||||||||||||||||||||
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 arrangements and collateral arrangements whenever practical. See Note 15 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 debt rating (or based on the financial strength of the Company’s life insurance subsidiaries for contracts in which those subsidiaries are the counterparty). Additionally, certain of the Company’s derivative contracts contain provisions that allow the counterparty to terminate the contract if the Company’s debt does not maintain a specific credit rating (generally an investment grade rating) or the Company’s life insurance subsidiary does not maintain a specific financial strength rating. If these termination provisions were to be triggered, the Company’s counterparty could require immediate settlement of any net liability position. At December 31, 2013 and 2012, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $1.0 billion and $364 million, respectively. The aggregate fair value of assets posted as collateral for such instruments as of December 31, 2013 and 2012 was $959 million and $360 million, respectively. If the credit contingent provisions of derivative contracts in a net liability position at December 31, 2013 and 2012 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 $56 million and $4 million, respectively. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Share-Based Compensation | ' | |||||||||||||
Share-Based Compensation | ||||||||||||||
The Company’s share-based compensation plans consist of the Amended and Restated Ameriprise Financial 2005 Incentive Compensation Plan (the “2005 ICP”), the Ameriprise Financial 2008 Employment Incentive Equity Award Plan (the “2008 Plan”), the Ameriprise Financial Franchise Advisor Deferred Compensation Plan (“Franchise Advisor Deferral Plan”), the Ameriprise Advisor Group Deferred Compensation Plan (“Advisor Group Deferral Plan”) and the Threadneedle Equity Incentive Plan (“EIP”). | ||||||||||||||
The components of the Company’s share-based compensation expense, net of forfeitures, were as follows: | ||||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
(in millions) | ||||||||||||||
Stock option | $ | 36 | $ | 40 | $ | 43 | ||||||||
Restricted stock(1) | 46 | 40 | 50 | |||||||||||
Restricted stock units | 61 | 54 | 52 | |||||||||||
Liability awards | 31 | 14 | 13 | |||||||||||
Total | $ | 174 | $ | 148 | $ | 158 | ||||||||
(1) Includes $10 million, $11 million and $19 million of expense related to EIP for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||
For the years ended December 31, 2013, 2012 and 2011, total income tax benefit recognized by the Company related to share-based compensation expense was $60 million, $51 million and $53 million, respectively. | ||||||||||||||
As of December 31, 2013, there was $84 million of total unrecognized compensation cost related to non-vested awards under the Company’s share-based compensation plans, which is expected to be recognized over a weighted-average period of 2.1 years. | ||||||||||||||
Amended and Restated Ameriprise Financial 2005 Incentive Compensation Plan | ||||||||||||||
The 2005 ICP, which was amended and approved by shareholders on April 28, 2010, provides for the grant of cash and equity incentive awards to directors, employees and independent contractors, including stock options, restricted stock awards, restricted stock units, stock appreciation rights, performance shares and similar awards designed to comply with the applicable federal regulations and laws of jurisdiction. Under the 2005 ICP, a maximum of 37.9 million shares may be issued. Of this total, no more than 6.0 million shares may be issued after April 28, 2010 for full value awards, which are awards other than stock options and stock appreciation rights. Shares issued under the 2005 ICP may be authorized and unissued shares or treasury shares. | ||||||||||||||
Ameriprise Financial 2008 Employment Incentive Equity Award Plan | ||||||||||||||
The 2008 Plan is designed to align employees’ interests with those of the shareholders of the Company and attract and retain new employees. The 2008 Plan provides for the grant of equity incentive awards to new employees, primarily those, who became employees in connection with a merger or acquisition, including stock options, restricted stock awards, restricted stock units, and other equity-based awards designed to comply with the applicable federal and foreign regulations and laws of jurisdiction. Under the 2008 Plan, a maximum of 6.0 million shares may be issued. | ||||||||||||||
Stock Options | ||||||||||||||
Stock options granted under the 2005 ICP and the 2008 Plan have an exercise price not less than 100% of the current fair market value of a share of the Company’s common stock on the grant date and a maximum term of 10 years. Stock options granted generally vest ratably over three to four years. Vesting of option awards may be accelerated based on age and length of service. Stock options granted are expensed on a straight-line basis over the option vesting period based on the estimated fair value of the awards on the date of grant using a Black-Scholes option-pricing model. | ||||||||||||||
The following weighted average assumptions were used for stock option grants: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Dividend yield | 3 | % | 2 | % | 1.3 | % | ||||||||
Expected volatility | 41 | % | 45 | % | 44 | % | ||||||||
Risk-free interest rate | 0.9 | % | 0.8 | % | 2.3 | % | ||||||||
Expected life of stock option (years) | 5 | 5 | 5 | |||||||||||
The dividend yield assumption represents the Company’s expected dividend yield based on its historical dividend payouts and management’s expectations. The expected volatility is based on the Company’s historical and implied volatilities. The risk-free interest rate for periods within the expected option life is based on the U.S. Treasury yield curve at the grant date. The expected life of the option is based on the Company’s past experience and other considerations. | ||||||||||||||
The weighted average grant date fair value for options granted during 2013, 2012 and 2011 was $18.16, $18.15 and $21.38, respectively. | ||||||||||||||
A summary of the Company’s stock option activity for 2013 is presented below (shares and intrinsic value in millions): | ||||||||||||||
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | |||||||||||
Outstanding at January 1 | 15 | $ | 43.91 | 5.9 | $ | 281 | ||||||||
Granted | 1.6 | 65.64 | ||||||||||||
Exercised | (7.1 | ) | 36.64 | |||||||||||
Forfeited | (0.1 | ) | 58.52 | |||||||||||
Outstanding at December 31 | 9.4 | 53.03 | 5.2 | 583 | ||||||||||
Exercisable at December 31 | 6 | 48.96 | 5 | 394 | ||||||||||
The intrinsic value of a stock option is the amount by which the fair value of the underlying stock exceeds the exercise price of the option. The total intrinsic value of options exercised was $299 million, $153 million and $58 million during the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||
Restricted Stock Awards | ||||||||||||||
Restricted stock awards granted under the 2005 ICP and 2008 Plan generally vest ratably over three to four years or at the end of five years. Vesting of restricted stock awards may be accelerated based on age and length of service. Compensation expense for restricted stock awards is based on the market price of Ameriprise Financial common stock on the date of grant and is amortized on a straight-line basis over the vesting period. Quarterly dividends are paid on restricted stock, as declared by the Company’s Board of Directors, during the vesting period and are not subject to forfeiture. | ||||||||||||||
Restricted Stock Units and Deferred Share Units | ||||||||||||||
The 2005 ICP provides for the grant of deferred share units to non-employee directors of the Company and the 2005 ICP and 2008 Plan provide for the grant of restricted stock units to employees. The director awards are fully vested upon issuance and are settled for Ameriprise Financial common stock upon the director’s termination of service. The employee awards generally vest ratably over three to four years. Compensation expense for deferred share units and restricted stock units is based on the market price of Ameriprise Financial stock on the date of grant. Restricted stock units granted to employees are expensed on a straight-line basis over the vesting period or on an accelerated basis if certain age and length of service requirements are met. Deferred share units granted to non-employee directors are expensed immediately. Dividends are paid on restricted stock units, as declared by the Company’s Board of Directors, during the vesting period and are not subject to forfeiture. Dividend equivalents are issued on deferred share units, as dividends are declared by the Company's Board of Directors, until distribution and are not subject to forfeiture. | ||||||||||||||
Ameriprise Financial Deferred Compensation Plan | ||||||||||||||
The Ameriprise Financial Deferred Compensation Plan (“DCP”) under the 2005 ICP gives certain employees the choice to defer a portion of their eligible compensation, which can be invested in investment options as provided by the DCP, including the Ameriprise Financial Stock Fund. The DCP is an unfunded non-qualified deferred compensation plan under section 409A of the Internal Revenue Code. The Company provides a match on certain deferrals of restricted stock units. Participant deferrals vest immediately and the Company match vests after three years. Distributions are made in shares of the Company’s common stock for the portion of the deferral invested in the Ameriprise Financial Stock Fund and the Company match, for which the Company has recorded in equity. The DCP does allow for accelerated vesting of the share-based awards in cases of death, disability and qualified retirement. Compensation expense related to the Company match is recognized on a straight-line basis over the vesting period. Dividend equivalents are issued on deferrals into the Ameriprise Financial Stock Fund and the Company match. Dividend equivalents related to deferrals are not subject to forfeiture, whereas dividend equivalents related to the Company match are subject to forfeiture until fully vested. | ||||||||||||||
Ameriprise Financial Franchise Advisor Deferral Plan | ||||||||||||||
The Franchise Advisor Deferral Plan, which was amended in January 2011, gives certain advisors the choice to defer a portion of their commissions into share-based awards or other investment options. The Franchise Advisor Deferral Plan is an unfunded non-qualified deferred compensation plan under section 409A of the Internal Revenue Code. Prior to 2011, all deferrals were in the form of share-based awards and the Company provided a match on the advisor deferrals, which participants could elect to receive in cash or shares of common stock. | ||||||||||||||
The Franchise Advisor Deferral Plan allows for the grant of share-based awards of up to 10.5 million shares of common stock. The number of units awarded is based on the performance measures, deferral percentage and the market value of Ameriprise Financial common stock on the deferral date as defined by the plan. Share-based awards made during 2011 and later are fully vested and are not subject to forfeitures. Share-based awards made prior to 2011 generally vest ratably over four years, beginning on January 1 of the year following the plan year in which the award was made. In addition to the voluntary deferral, certain advisors are eligible for the Franchise Advisor Top Performer Stock Award or the Franchise Consultant Growth Bonus. The Franchise Advisor Top Performer Stock Award allows eligible advisors to earn additional deferred stock awards on commissions over a specified threshold. The awards vest ratably over four years. The Franchise Consultant Growth Bonus allows eligible advisors who coach other advisors the ability to earn a bonus based on the success of the advisors they coach, which can be deferred into the plan. The awards vest ratably over three years. The Franchise Advisor Deferral Plan allows for accelerated vesting of the share-based awards based on age and years as an advisor. Commission expense is recognized on a straight-line basis over the vesting period. However, as franchise advisors are not employees of the Company, the expense is adjusted each period based on the stock price of the Company’s common stock up to the vesting date. Share units receive dividend equivalents, as dividends are declared by the Company’s Board of Directors, until distribution and are subject to forfeiture until vested. | ||||||||||||||
Ameriprise Advisor Group Deferred Compensation Plan | ||||||||||||||
The Advisor Group Deferral Plan, which was created in April 2009, allows for employee advisors to receive share-based bonus awards which are subject to future service requirements and forfeitures. The Advisor Group Deferral Plan is an unfunded non-qualified deferred compensation plan under section 409A of the Internal Revenue Code. The Advisor Group Deferral Plan also gives qualifying employee advisors the choice to defer a portion of their base salary or commissions. This deferral can be in the form of share-based awards or other investment options. Deferrals are not subject to future service requirements or forfeitures. Under the Advisor Group Deferral Plan, a maximum of 3.0 million shares may be issued. Awards granted under the Advisor Group Deferral Plan may be settled in cash and/or shares of the Company’s common stock according to the award’s terms. Share units receive dividend equivalents, as dividends are declared by the Company’s Board of Directors, until distribution and are subject to forfeiture until vested. | ||||||||||||||
Full Value Share Award Activity | ||||||||||||||
A summary of activity for the Company’s restricted stock awards, restricted stock units granted to employees (including advisors), compensation deferrals into stock and deferred share units for 2013 is presented below (shares in millions): | ||||||||||||||
Shares | Weighted Average Grant-date Fair Value | |||||||||||||
Non-vested shares at January 1 | 3.1 | $ | 38.42 | |||||||||||
Granted | 0.9 | 69.61 | ||||||||||||
Deferred | 0.3 | 82.51 | ||||||||||||
Vested | (1.4 | ) | 56.7 | |||||||||||
Forfeited | (0.1 | ) | 55.39 | |||||||||||
Non-vested shares at December 31 | 2.8 | 43.87 | ||||||||||||
The deferred shares in the table above primarily relate to franchise advisor voluntary deferrals of their commissions into share-based awards under the Franchise Advisor Deferral Plan that are fully vested at the deferral date. | ||||||||||||||
The fair value of full value share awards vested during the years ended December 31, 2013, 2012 and 2011 was $110 million, $103 million and $116 million, respectively. | ||||||||||||||
The weighted average grant date fair value for restricted shares, restricted stock units and deferred share units during 2013, 2012 and 2011 was $68.90, $54.32 and $59.01, respectively. The weighted average grant date fair value for franchise advisor and advisor group deferrals during 2013, 2012 and 2011 was $80.77, $54.98 and $52.72, respectively. | ||||||||||||||
Performance Share Units | ||||||||||||||
Under the 2005 ICP, the Company’s Executive Leadership Team may be awarded a target number of performance share units ("PSUs"). PSUs will be earned only to the extent that the Company attains certain goals relating to the Company’s performance and relative total shareholder returns against peers over a three-year period. The awards also have a three-year service condition with cliff vesting with an accelerated service condition based on age and length of service. The actual number of PSUs ultimately earned could vary from zero, if performance goals are not met, to as much as 200% of the target, if performance goals are significantly exceeded. The value of each target PSU is equal to the value of one share of Ameriprise common stock. The total amount of target PSUs outstanding at the end of December 31, 2013, 2012, and 2011 was 0.3 million, 0.2 million, 0.1 million, respectively. The PSUs are liability awards and there were no payments made for these awards for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||
Threadneedle Equity Incentive Plan | ||||||||||||||
Prior to 2012, certain key Threadneedle employees were eligible for awards under the EIP based on a formula tied to Threadneedle’s financial performance. Awards under the EIP were first made in April 2009; prior awards were made under the equity participation plan (“EPP”). In 2011, Threadneedle’s articles of incorporation were amended to create a new class of Threadneedle corporate units to be granted under a modified EIP plan. Employees who held EIP units granted prior to 2011 were given the choice to exchange their existing units at the exchange date. EIP awards may be settled in cash or Threadneedle corporate units according to the award’s terms. For awards granted prior to 2011, the EIP provides for 100% vesting after three years, with a mandatory call after six years. For converted units and awards granted after February 2011, the EIP provides for 100% vesting after two and a half years, with no mandatory call date. Converted units and units granted after February 2011 have dividend rights once fully vested. The EPP provides for 50% vesting after three years and 50% vesting after four years, with required cash-out after five years. EIP and EPP awards are subject to forfeitures based on future service requirements. The EIP awards were no longer awarded after 2012 and instead Threadneedle employees received awards under the 2005 ICP. | ||||||||||||||
The value of the EPP and EIP awards is recognized as compensation expense evenly over the vesting periods. Generally, the expense is based on the grant date fair value of the awards as determined by an annual independent valuation of Threadneedle’s fair market value; however, for awards accounted for as a liability the expense is adjusted to reflect Threadneedle’s current calculated value (the change in the value of the awards is recognized immediately for vested awards and over the remaining vesting period for unvested awards). During the years ended December 31, 2013, 2012 and 2011, cash settlements of EPP and EIP awards were $23 million, $31 million and $14 million, respectively. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||
Shareholders' Equity | ' | ||||||||
Shareholders’ Equity | |||||||||
The following table presents the components of accumulated other comprehensive income, net of tax: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(in millions) | |||||||||
Net unrealized securities gains | $ | 655 | $ | 1,312 | |||||
Net unrealized derivatives losses | (1 | ) | (2 | ) | |||||
Foreign currency translation | (13 | ) | (25 | ) | |||||
Defined benefit plans | (46 | ) | (91 | ) | |||||
Total | $ | 595 | $ | 1,194 | |||||
See Note 5, Note 16 and Note 22 for additional disclosures related to net unrealized securities gains, net unrealized derivatives losses and net unrealized actuarial losses on defined benefit plans, respectively. | |||||||||
The following table provides information related to amounts reclassified from AOCI for the year ended: | |||||||||
AOCI Reclassification | Location of Loss (Gain) Recognized in Income | 31-Dec-13 | |||||||
(in millions) | |||||||||
Net unrealized gains on Available-for-Sale securities | Net investment income | $ | (7 | ) | |||||
Tax expense | Income tax provision | 2 | |||||||
Net of tax | $ | (5 | ) | ||||||
Losses (gains) on cash flow hedges: | |||||||||
Interest rate contracts | Other revenues | $ | — | ||||||
Interest rate contracts | Interest and debt expense | (4 | ) | ||||||
Interest rate contracts | Distribution fees | — | |||||||
Swaptions | Net investment income | 5 | |||||||
Total before tax | 1 | ||||||||
Tax expense | Income tax provision | — | |||||||
Net of tax | $ | 1 | |||||||
The Company made adjustments to AOCI for the impact to DAC, DSIC, benefit reserves and reinsurance recoverable on net unrealized securities gains of $319 million, net of tax, for the year ended December 31, 2013. See Note 5 for additional information related to the impact of DAC, DSIC, benefit reserves and reinsurance recoverable on net unrealized securities gains/losses included in AOCI. See Note 16 for additional information regarding the Company’s cash flow hedges. | |||||||||
For the years ended December 31, 2013, 2012 and 2011, the Company repurchased a total of 17.8 million shares, 24.6 million shares and 27.9 million shares, respectively, of its common stock for an aggregate cost of $1.5 billion, $1.3 billion and $1.5 billion, respectively. On October 24, 2012, the Company’s Board of Directors authorized an expenditure of up to $2.0 billion for the repurchase of the Company’s common stock through 2014. As of December 31, 2013, the Company had $649 million remaining under its share repurchase authorization. | |||||||||
The Company may also reacquire shares of its common stock under its share-based compensation plans related to restricted stock awards and certain option exercises. The holders of restricted shares may elect to surrender a portion of their shares on the vesting date to cover their income tax obligation. These vested restricted shares are reacquired by the Company and the Company’s payment of the holders’ income tax obligations are recorded as a treasury share purchase. For the years ended December 31, 2013, 2012 and 2011, the Company reacquired 0.4 million shares, 0.3 million shares and 0.5 million shares, respectively, of its common stock through the surrender of shares upon vesting and paid in the aggregate $26 million, $18 million and $25 million, respectively, related to the holders’ income tax obligations on the vesting date. Beginning in 2013, option holders may elect to net settle their vested awards resulting in the surrender of the number of shares required to cover the strike price and tax obligation of the options exercised. These shares are reacquired by the Company and recorded as treasury shares. For the year ended December 31, 2013, the Company reacquired 2.9 million shares of its common stock through the net settlement of options for an aggregate value of $227 million, of which $145 million related to the strike price and $82 million related to the holders’ income tax obligation. | |||||||||
For the years ended December 31, 2013, 2012 and 2011, respectively, the Company reissued 1.9 million, 1.8 million and 1.7 million treasury shares, respectively, for restricted stock award grants and issuance of shares vested under the Ameriprise Financial Franchise Advisor Deferred Compensation Plan. For the years ended December 31, 2012 and 2011, the Company reacquired 0.3 million and 0.3 million shares, respectively, of its common stock with an aggregate value of $21 million and $13 million, respectively, from a total return swap used to economically hedge its Franchise Advisor Deferral Plan, which was settled in December 2012. |
Earnings_per_Share_Attributabl
Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders | ' | ||||||||||||
Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders | |||||||||||||
The computations of basic and diluted earnings per share attributable to Ameriprise Financial, Inc. common shareholders are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in millions, except per share amounts) | |||||||||||||
Numerator: | |||||||||||||
Income from continuing operations | $ | 1,478 | $ | 903 | $ | 1,070 | |||||||
Less: Net income (loss) attributable to noncontrolling interests | 141 | (128 | ) | (106 | ) | ||||||||
Income from continuing operations attributable to Ameriprise Financial | 1,337 | 1,031 | 1,176 | ||||||||||
Loss from discontinued operations, net of tax | (3 | ) | (2 | ) | (60 | ) | |||||||
Net income attributable to Ameriprise Financial | $ | 1,334 | $ | 1,029 | $ | 1,116 | |||||||
Denominator: | |||||||||||||
Basic: Weighted-average common shares outstanding | 203.2 | 218.7 | 241.4 | ||||||||||
Effect of potentially dilutive nonqualified stock options and other share-based awards | 3.9 | 4.1 | 4.9 | ||||||||||
Diluted: Weighted-average common shares outstanding | 207.1 | 222.8 | 246.3 | ||||||||||
Earnings per share attributable to Ameriprise Financial, Inc. common shareholders: | |||||||||||||
Basic: | |||||||||||||
Income from continuing operations | $ | 6.58 | $ | 4.71 | $ | 4.87 | |||||||
Loss from discontinued operations | (0.02 | ) | (0.01 | ) | (0.25 | ) | |||||||
Net income | $ | 6.56 | $ | 4.7 | $ | 4.62 | |||||||
Diluted: | |||||||||||||
Income from continuing operations | $ | 6.46 | $ | 4.63 | $ | 4.77 | |||||||
Loss from discontinued operations | (0.02 | ) | (0.01 | ) | (0.24 | ) | |||||||
Net income | $ | 6.44 | $ | 4.62 | $ | 4.53 | |||||||
For the years ended December 31, 2013, 2012 and 2011, the dilutive effect of nonqualified stock options and other share based-awards excludes nil, nil and 6.1 million options, respectively, from the computation of earnings per share attributable to Ameriprise Financial, Inc. common shareholders. The inclusion of the options would have been anti-dilutive. |
Regulatory_Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2013 | |
Regulatory Requirements | ' |
Regulatory Requirements | ' |
Regulatory Requirements | |
Restrictions on the transfer of funds exist under regulatory requirements applicable to certain of the Company’s subsidiaries. At December 31, 2013, the aggregate amount of unrestricted net assets was approximately $1.9 billion. | |
The National Association of Insurance Commissioners (“NAIC”) defines Risk-Based Capital (“RBC”) requirements for insurance companies. The RBC requirements are used by the NAIC and state insurance regulators to identify companies that merit regulatory actions designed to protect policyholders. These requirements apply to both the Company’s life and property casualty insurance companies. In addition, IDS Property Casualty is subject to the statutory surplus requirements of the State of Wisconsin. The Company’s life and property casualty companies each met their respective minimum RBC requirements. Statutory capital and surplus for IDS Property Casualty was $531 million, $462 million and $431 million for the years ended December 31, 2013, 2012 and 2011, respectively. Statutory net income for IDS Property Casualty was $11 million, $27 million and $23 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |
State insurance statutes also contain limitations as to the amount of dividends and distributions that insurers may make without providing prior notification to state regulators. For RiverSource Life, dividends or distributions in excess of statutory unassigned surplus, as determined in accordance with accounting practices prescribed by the State of Minnesota, require advance notice to the Minnesota Department of Commerce, RiverSource Life’s primary regulator, and are subject to potential disapproval. In addition, dividends whose fair market value, together with that of other dividends or distributions made within the preceding 12 months, exceeds the greater of (i) the previous year’s statutory net gain from operations or (ii) 10% of the previous year-end statutory capital and surplus are referred to as “extraordinary dividends.” Extraordinary dividends also require advance notice to the Minnesota Department of Commerce, and are subject to potential disapproval. Government debt securities of $6 million and $7 million at December 31, 2013 and 2012, respectively, held by the Company’s life insurance subsidiaries were on deposit with various states as required by law. Statutory capital and surplus for RiverSource Life was $2.7 billion, $3.1 billion and $2.7 billion for the years ended December 31, 2013, 2012 and 2011, respectively. Statutory net income (loss) for RiverSource Life was $1.3 billion, $2.0 billion and $(599) million for the years ended December 31, 2013, 2012 and 2011, respectively. | |
Ameriprise Certificate Company (“ACC”) is registered as an investment company under the Investment Company Act of 1940 (the “1940 Act”). ACC markets and sells investment certificates to clients. ACC is subject to various capital requirements under the 1940 Act, laws of the State of Minnesota and understandings with the Securities and Exchange Commission (“SEC”) and the Minnesota Department of Commerce. The terms of the investment certificates issued by ACC and the provisions of the 1940 Act also require the maintenance by ACC of qualified assets. Under the provisions of its certificates and the 1940 Act, ACC was required to have qualified assets (as that term is defined in Section 28(b) of the 1940 Act) in the amount of $4.0 billion and $3.5 billion at December 31, 2013 and 2012, respectively. ACC had qualified assets of $4.2 billion and $3.7 billion at December 31, 2013 and 2012, respectively. Ameriprise Financial and ACC entered into a Capital Support Agreement on March 2, 2009, pursuant to which Ameriprise Financial agrees to commit such capital to ACC as is necessary to satisfy applicable minimum capital requirements, up to a maximum commitment of $115 million. For the years ended December 31, 2013 and 2012, ACC did not draw upon the Capital Support Agreement and had met all applicable capital requirements. | |
Threadneedle’s required capital is predominantly based on the requirements specified by its regulator, the Financial Services Authority (“FSA”), under its Capital Adequacy Requirements for asset managers. | |
The Company has four broker-dealer subsidiaries, American Enterprise Investment Services Inc., Ameriprise Financial Services, Inc., RiverSource Distributors, Inc. and Columbia Management Investment Distributors, Inc. The broker-dealers are subject to the net capital requirements of the Financial Industry Regulatory Authority (“FINRA”) and the Uniform Net Capital requirements of the SEC under Rule 15c3-1 of the Securities Exchange Act of 1934. | |
Ameriprise Trust Company is subject to capital adequacy requirements under the laws of the State of Minnesota as enforced by the Minnesota Department of Commerce. | |
In 2012, Ameriprise Bank requested regulatory approval to convert from a federal savings bank to a limited powers national trust bank. Conditional approval for this conversion was received in December 2012, and the conversion to a limited powers national trust bank, as well as the renaming of the entity as Ameriprise National Trust Bank, was completed in January 2013. Prior to this conversion, Ameriprise Bank, FSB was subject to regulation by both the Comptroller of Currency (“OCC”), as a federal savings bank, and by the Federal Deposit Insurance Corporation (“FDIC”) in its role as insurer of its deposits. Following the conversion, Ameriprise National Trust Bank remains subject to regulation by the OCC and, to a limited extent, by the FDIC. As a limited powers national association, Ameriprise National Trust Bank remains subject to supervision under various laws and regulations enforced by the OCC, including those related to capital adequacy, liquidity and conflicts of interest. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
The components of income tax provision attributable to continuing operations were as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Current income tax | ||||||||||||
Federal | $ | 549 | $ | 229 | $ | 250 | ||||||
State and local | 24 | 25 | 21 | |||||||||
Foreign | 37 | 31 | 23 | |||||||||
Total current income tax | 610 | 285 | 294 | |||||||||
Deferred income tax | ||||||||||||
Federal | (102 | ) | 37 | 90 | ||||||||
State and local | (10 | ) | 15 | 1 | ||||||||
Foreign | (6 | ) | (2 | ) | (8 | ) | ||||||
Total deferred income tax | (118 | ) | 50 | 83 | ||||||||
Total income tax provision | $ | 492 | $ | 335 | $ | 377 | ||||||
The geographic sources of pretax income from continuing operations were as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
United States | $ | 1,640 | $ | 1,161 | $ | 1,350 | ||||||
Foreign | 330 | 77 | 97 | |||||||||
Total | $ | 1,970 | $ | 1,238 | $ | 1,447 | ||||||
The principal reasons that the aggregate income tax provision attributable to continuing operations is different from that computed by using the U.S. statutory rate of 35% were as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Tax at U.S. statutory rate | 35 | % | 35 | % | 35 | % | ||||||
Changes in taxes resulting from: | ||||||||||||
Dividend exclusion | (5.1 | ) | (5.9 | ) | (8.5 | ) | ||||||
Low income housing tax credits | (2.7 | ) | (3.0 | ) | (1.1 | ) | ||||||
Net income (loss) attributable to noncontrolling interests | (2.5 | ) | 3.6 | 2.6 | ||||||||
Foreign tax credits, net of addback | (0.9 | ) | (3.2 | ) | (2.2 | ) | ||||||
Tax-exempt interest income | (0.9 | ) | (1.7 | ) | (1.3 | ) | ||||||
State taxes, net of federal benefit | 0.5 | 2.5 | 1 | |||||||||
Taxes applicable to prior years | — | (2.5 | ) | 0.2 | ||||||||
Other, net | 1.6 | 2.3 | 0.4 | |||||||||
Income tax provision | 25 | % | 27.1 | % | 26.1 | % | ||||||
The decrease in the Company’s effective tax rate in 2013 compared to 2012 is primarily the result of lower state taxes and the two prior period corrections described in Note 1. The increase in the Company’s effective tax rate in 2012 compared to 2011 primarily reflects higher state taxes and the impact of the two prior period corrections described in Note 1. | ||||||||||||
Accumulated earnings of certain foreign subsidiaries, which totaled $120 million at December 31, 2013, are intended to be permanently reinvested outside the United States. Accordingly, U.S. federal taxes, which would have aggregated $17 million, have not been provided on those earnings. | ||||||||||||
Deferred income tax assets and liabilities result from temporary differences between the assets and liabilities measured for GAAP reporting versus income tax return purposes. The significant components of the Company’s deferred income tax assets and liabilities, which are included net within other assets or other liabilities on the Consolidated Balance Sheets, were as follows: | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(in millions) | ||||||||||||
Deferred income tax assets | ||||||||||||
Liabilities for future policy benefits and claims | $ | 918 | $ | 1,320 | ||||||||
Investment related | 627 | 104 | ||||||||||
Deferred compensation | 335 | 310 | ||||||||||
Investment impairments and write-downs | 97 | 105 | ||||||||||
Loss carryovers and tax credit carryforwards | 39 | 39 | ||||||||||
Other | 61 | 54 | ||||||||||
Gross deferred income tax assets | 2,077 | 1,932 | ||||||||||
Less: valuation allowance | (19 | ) | (16 | ) | ||||||||
Total deferred income tax assets | 2,058 | 1,916 | ||||||||||
Deferred income tax liabilities | ||||||||||||
Deferred acquisition costs | 749 | 701 | ||||||||||
Net unrealized gains on Available-for-Sale securities | 352 | 708 | ||||||||||
Deferred sales inducement costs | 145 | 142 | ||||||||||
Depreciation expense | 138 | 164 | ||||||||||
Intangible assets | 84 | 74 | ||||||||||
Other | 113 | 82 | ||||||||||
Gross deferred income tax liabilities | 1,581 | 1,871 | ||||||||||
Net deferred income tax assets | $ | 477 | $ | 45 | ||||||||
Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $39 million, net of federal benefit, which will expire beginning December 31, 2014. | ||||||||||||
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits were as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Balance at January 1 | $ | 116 | $ | 184 | $ | 75 | ||||||
Additions based on tax positions related to the current year | 22 | 2 | 1 | |||||||||
Additions for tax positions of prior years | 74 | 25 | 95 | |||||||||
Reductions for tax positions of prior years | (3 | ) | (83 | ) | (8 | ) | ||||||
Settlements | — | (12 | ) | 21 | ||||||||
Balance at December 31 | $ | 209 | $ | 116 | $ | 184 | ||||||
If recognized, approximately $62 million, $38 million and $38 million, net of federal tax benefits, of unrecognized tax benefits as of December 31, 2013, 2012, and 2011, respectively, would affect the effective tax rate. | ||||||||||||
It is reasonably possible that the total amounts of unrecognized tax benefits will change in the next 12 months. The Company estimates that the total amount of gross unrecognized tax benefits may decrease by $150 million to $160 million in the next 12 months due to resolution of Internal Revenue Service (“IRS”) examinations. | ||||||||||||
The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized a net increase of $6 million, a net reduction of $1 million, and a net increase of $66 million in interest and penalties for the years ended December 31, 2013, 2012, and 2011, respectively. At December 31, 2013 and 2012, the Company had a payable of $42 million and $36 million, respectively, related to accrued interest and penalties. | ||||||||||||
The Company or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The IRS has completed its field examination of the 1997 through 2007 tax returns. However, for federal income tax purposes, these years, except for 2007, continue to remain open as a consequence of certain unagreed-upon issues. The IRS is in the process of completing its audits of the Company’s U.S. Income Tax Returns for 2008 through 2011. These audits are expected to be completed in 2014. The Company’s or certain of its subsidiaries’ state income tax returns are currently under examination by various jurisdictions for years ranging from 1997 through 2011 and remain open for all years after 2011. The Company filed its 2012 tax return in the third quarter of 2013, but the IRS has not yet begun its examination of 2012. | ||||||||||||
The items comprising other comprehensive income (loss) are presented net of the following income tax provision (benefit) amounts: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Net unrealized securities gains (losses) | $ | (344 | ) | $ | 238 | $ | 90 | |||||
Net unrealized derivatives gains (losses) | — | 4 | (15 | ) | ||||||||
Defined benefit plans | 24 | (9 | ) | (28 | ) | |||||||
Foreign currency translation | 3 | 7 | (1 | ) | ||||||||
Net income tax provision (benefit) | $ | (317 | ) | $ | 240 | $ | 46 | |||||
Retirement_Plans_and_Profit_Sh
Retirement Plans and Profit Sharing Arrangements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Retirement Plans and Profit Sharing Arrangements | ' | ||||||||||||||||
Retirement Plans and Profit Sharing Arrangements | |||||||||||||||||
Defined Benefit Plans | |||||||||||||||||
Pension Plans | |||||||||||||||||
The Company’s U.S. non-advisor employees are generally eligible for the Ameriprise Financial Retirement Plan (the “Retirement Plan”), a noncontributory defined benefit plan which is a qualified plan under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). Funding of costs for the Retirement Plan complies with the applicable minimum funding requirements specified by ERISA and is held in a trust. The Retirement Plan is a cash balance plan by which the employees’ accrued benefits are based on notional account balances, which are maintained for each individual. Each pay period these balances are credited with an amount equal to a percentage of eligible compensation as defined by the Retirement Plan (which includes, but is not limited to, base pay, performance based incentive pay, commissions, shift differential and overtime). Prior to March 1, 2010, the percentage ranged from 2.5% to 10% based on employees’ age plus years of service. Effective March 1, 2010, the percentage ranges from 2.5% to 5% based on employees’ years of service. Employees eligible for the plan at the time of the change will continue to receive the same percentage they were receiving until the new schedule becomes more favorable. Employees’ balances are also credited with a fixed rate of interest that is updated each January 1 and is based on the average of the daily five-year U.S. Treasury Note yields for the previous October 1 through November 30, with a minimum crediting rate of 5%. Employees are fully vested after three years of service or upon retirement at or after age 65, disability or death while employed. Employees have the option to receive annuity payments or a lump sum payout at vested termination, retirement, death or disability. The Retirement Plan’s year-end is September 30. | |||||||||||||||||
In addition, the Company sponsors the Ameriprise Financial Supplemental Retirement Plan (the “SRP”), an unfunded non-qualified deferred compensation plan subject to Section 409A of the Internal Revenue Code. This plan is for certain highly compensated employees to replace the benefit that cannot be provided by the Retirement Plan due to IRS limits. The SRP generally parallels the Retirement Plan but offers different payment options. | |||||||||||||||||
Most employees outside the United States are covered by local retirement plans, some of which are funded, while other employees receive payments at the time of retirement or termination under applicable labor laws or agreements. | |||||||||||||||||
The components of the net periodic benefit cost for all pension plans were as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(in millions) | |||||||||||||||||
Service cost | $ | 46 | $ | 41 | $ | 38 | |||||||||||
Interest cost | 23 | 24 | 23 | ||||||||||||||
Expected return on plan assets | (33 | ) | (30 | ) | (26 | ) | |||||||||||
Amortization of prior service costs | (1 | ) | (1 | ) | (1 | ) | |||||||||||
Amortization of net loss | 11 | 7 | 1 | ||||||||||||||
Other | 2 | 4 | 4 | ||||||||||||||
Net periodic benefit cost | $ | 48 | $ | 45 | $ | 39 | |||||||||||
The prior service costs are amortized on a straight-line basis over the average remaining service period of active participants. Actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation or the market-related value of assets are amortized on a straight-line basis over the expected average remaining service period of active participants. | |||||||||||||||||
The following tables provide a reconciliation of the changes in the benefit obligation and fair value of assets for the pension plans: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in millions) | |||||||||||||||||
Benefit obligation, January 1 | $ | 643 | $ | 546 | |||||||||||||
Service cost | 46 | 41 | |||||||||||||||
Interest cost | 23 | 24 | |||||||||||||||
Benefits paid | (7 | ) | (7 | ) | |||||||||||||
Actuarial (gain) loss | (8 | ) | 51 | ||||||||||||||
Settlements | (23 | ) | (15 | ) | |||||||||||||
Foreign currency rate changes | 2 | 3 | |||||||||||||||
Benefit obligation, December 31 | $ | 676 | $ | 643 | |||||||||||||
2013 | 2012 | ||||||||||||||||
(in millions) | |||||||||||||||||
Fair value of plan assets, January 1 | $ | 437 | $ | 362 | |||||||||||||
Actual return on plan assets | 85 | 49 | |||||||||||||||
Employer contributions | 50 | 45 | |||||||||||||||
Benefits paid | (7 | ) | (7 | ) | |||||||||||||
Settlements | (23 | ) | (15 | ) | |||||||||||||
Foreign currency rate changes | 2 | 3 | |||||||||||||||
Fair value of plan assets, December 31 | $ | 544 | $ | 437 | |||||||||||||
The following table provides the amounts recognized in the Consolidated Balance Sheets, which equal the funded status of the Company’s pension plans: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in millions) | |||||||||||||||||
Benefit liability | $ | (136 | ) | $ | (214 | ) | |||||||||||
Benefit asset | 4 | 8 | |||||||||||||||
Net amount recognized | $ | (132 | ) | $ | (206 | ) | |||||||||||
The Company complies with the minimum funding requirements in all countries. | |||||||||||||||||
The amounts recognized in accumulated other comprehensive income, net of tax, as of December 31, 2013 but not recognized as components of net periodic benefit cost included an unrecognized actuarial loss of $55 million and an unrecognized prior service credit of $3 million. The estimated amounts that will be amortized from accumulated other comprehensive income, net of tax, into net periodic benefit cost in 2014 include a prior service credit of $1 million. | |||||||||||||||||
The accumulated benefit obligation for all pension plans as of December 31, 2013 and 2012 was $605 million and $576 million, respectively. The accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations that exceeded the fair value of plan assets were as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in millions) | |||||||||||||||||
Accumulated benefit obligation | $ | 514 | $ | 503 | |||||||||||||
Fair value of plan assets | 418 | 333 | |||||||||||||||
The projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations that exceeded the fair value of plan assets were as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in millions) | |||||||||||||||||
Projected benefit obligation | $ | 554 | $ | 547 | |||||||||||||
Fair value of plan assets | 418 | 333 | |||||||||||||||
The weighted average assumptions used to determine benefit obligations for pension plans were as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Discount rates | 4.06 | % | 3.45 | % | |||||||||||||
Rates of increase in compensation levels | 4.38 | 4.36 | |||||||||||||||
The weighted average assumptions used to determine net periodic benefit cost for pension plans were as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Discount rates | 3.45 | % | 4.15 | % | 4.75 | % | |||||||||||
Rates of increase in compensation levels | 4.36 | 4.27 | 4.25 | ||||||||||||||
Expected long-term rates of return on assets | 7.62 | 7.69 | 8 | ||||||||||||||
In developing the expected long-term rate of return on assets, management evaluated input from an external consulting firm, including their projection of asset class return expectations and long-term inflation assumptions. The Company also considered historical returns on the plans’ assets. Discount rates are based on yields available on high-quality corporate bonds that would generate cash flows necessary to pay the benefits when due. | |||||||||||||||||
The Company’s pension plans’ assets are invested in an aggregate diversified portfolio to minimize the impact of any adverse or unexpected results from a security class on the entire portfolio. Diversification is interpreted to include diversification by asset type, performance and risk characteristics and number of investments. When appropriate and consistent with the objectives of the plans, derivative instruments may be used to mitigate risk or provide further diversification, subject to the investment policies of the plans. Asset classes and ranges considered appropriate for investment of the plans’ assets are determined by each plan’s investment committee. The target allocations are 70% equity securities, 20% debt securities and 10% all other types of investments, except for the assets in pooled pension funds which are 55% equity securities and 45% debt securities. Actual allocations will generally be within 5% of these targets. At December 31, 2013, there were no significant holdings of any single issuer and the exposure to derivative instruments was not significant. | |||||||||||||||||
The following tables present the Company’s pension plan assets measured at fair value on a recurring basis: | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in millions) | |||||||||||||||||
Equity securities: | |||||||||||||||||
U.S. large cap stocks | $ | 97 | $ | 43 | $ | — | $ | 140 | |||||||||
U.S. small cap stocks | 55 | 1 | — | 56 | |||||||||||||
Non-U.S. large cap stocks | 21 | 35 | — | 56 | |||||||||||||
Non-U.S. small cap stocks | 21 | — | — | 21 | |||||||||||||
Emerging markets | 14 | 23 | — | 37 | |||||||||||||
Debt securities: | |||||||||||||||||
U.S. investment grade bonds | 17 | 14 | — | 31 | |||||||||||||
U.S. high yield bonds | — | 21 | — | 21 | |||||||||||||
Non-U.S. investment grade bonds | — | 14 | — | 14 | |||||||||||||
Real estate investment trusts | — | — | 2 | 2 | |||||||||||||
Hedge funds | — | — | 20 | 20 | |||||||||||||
Pooled pension funds | — | 126 | — | 126 | |||||||||||||
Cash equivalents | 20 | — | — | 20 | |||||||||||||
Total | $ | 245 | $ | 277 | $ | 22 | $ | 544 | |||||||||
December 31, 2012 | |||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in millions) | |||||||||||||||||
Equity securities: | |||||||||||||||||
U.S. large cap stocks | $ | 89 | $ | 14 | $ | — | $ | 103 | |||||||||
U.S. small cap stocks | 43 | 1 | — | 44 | |||||||||||||
Non-U.S. large cap stocks | 17 | 30 | — | 47 | |||||||||||||
Emerging markets | 13 | 20 | — | 33 | |||||||||||||
Debt securities: | |||||||||||||||||
U.S. investment grade bonds | 20 | 12 | — | 32 | |||||||||||||
U.S. high yield bonds | — | 20 | — | 20 | |||||||||||||
Non-U.S. investment grade bonds | — | 15 | — | 15 | |||||||||||||
Real estate investment trusts | — | — | 12 | 12 | |||||||||||||
Hedge funds | — | — | 18 | 18 | |||||||||||||
Pooled pension funds | — | 104 | — | 104 | |||||||||||||
Cash equivalents | 9 | — | — | 9 | |||||||||||||
Total | $ | 191 | $ | 216 | $ | 30 | $ | 437 | |||||||||
Equity securities are managed to track the performance of common market indices for both U.S. and non-U.S. securities, primarily across large cap, small cap and emerging market asset classes. Debt securities are managed to track the performance of common market indices for both U.S. and non-U.S. investment grade bonds as well as a pool of U.S. high yield bonds. Real estate investment trusts are managed to track the performance of a broad population of investment grade non-agricultural income producing properties. The Company’s investments in hedge funds include investments in a multi-strategy fund and an off-shore fund managed to track the performance of broad fund of fund indices. Pooled pension funds are managed to return 1.5% in excess of a common index of similar pooled pension funds on a rolling three year basis. Cash equivalents consist of holdings in a money market fund that seeks to equal the return of the three month U.S. Treasury bill. | |||||||||||||||||
The fair value of real estate investment trusts is based primarily on the underlying cash flows of the properties within the trusts which are significant unobservable inputs and classified as Level 3. The fair value of the hedge funds is based on the proportionate share of the underlying net assets of the funds, which are significant unobservable inputs and classified as Level 3. The fair value of pooled pension funds and equity securities held in collective trust funds is based on the fund’s NAV and classified as Level 2 as they trade in principal-to-principal markets. Equity securities and mutual funds traded in active markets are classified as Level 1. For debt securities and cash equivalents, the valuation techniques and classifications are consistent with those used for the Company’s own investments as described in Note 14. | |||||||||||||||||
The following table provides a summary of changes in Level 3 assets measured at fair value on a recurring basis: | |||||||||||||||||
Asset Category | Real Estate Investment Trusts | Hedge Funds | |||||||||||||||
(in millions) | |||||||||||||||||
Balance at January 1, 2011 | $ | 8 | $ | 9 | |||||||||||||
Actual return on plan assets: | |||||||||||||||||
Relating to assets still held at the reporting date | 1 | — | |||||||||||||||
Purchases | 2 | 11 | |||||||||||||||
Sales | — | (8 | ) | ||||||||||||||
Balance at December 31, 2011 | 11 | 12 | |||||||||||||||
Actual return on plan assets: | |||||||||||||||||
Relating to assets still held at the reporting date | — | 1 | |||||||||||||||
Purchases | 1 | 5 | |||||||||||||||
Balance at December 31, 2012 | 12 | 18 | |||||||||||||||
Actual return on plan assets: | |||||||||||||||||
Relating to assets still held at the reporting date | — | 2 | |||||||||||||||
Purchases | 2 | — | |||||||||||||||
Sales | (12 | ) | — | ||||||||||||||
Balance at December 31, 2013 | $ | 2 | $ | 20 | |||||||||||||
The Company’s pension plans expect to make benefit payments to retirees as follows: | |||||||||||||||||
(in millions) | |||||||||||||||||
2014 | $ | 60 | |||||||||||||||
2015 | 64 | ||||||||||||||||
2016 | 61 | ||||||||||||||||
2017 | 66 | ||||||||||||||||
2018 | 69 | ||||||||||||||||
2019-2023 | 289 | ||||||||||||||||
The Company expects to contribute $47 million to its pension plans in 2014. | |||||||||||||||||
Other Postretirement Benefits | |||||||||||||||||
The Company sponsors defined benefit postretirement plans that provide health care and life insurance to retired U.S. employees. Net periodic postretirement benefit costs were nil, $(1) million and nil in 2013, 2012 and 2011, respectively. | |||||||||||||||||
The following table provides a reconciliation of the changes in the defined benefit postretirement plan obligation: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in millions) | |||||||||||||||||
Benefit obligation, January 1 | $ | 20 | $ | 19 | |||||||||||||
Interest cost | 1 | 1 | |||||||||||||||
Benefits paid | (4 | ) | (4 | ) | |||||||||||||
Participant contributions | 2 | 3 | |||||||||||||||
Actuarial (gain) loss | (1 | ) | 1 | ||||||||||||||
Benefit obligation, December 31 | $ | 18 | $ | 20 | |||||||||||||
The recognized liabilities for the Company’s defined benefit postretirement plans are unfunded. At December 31, 2013 and 2012, the recognized liabilities were $18 million and $20 million, respectively, which was equal to the funded status of the Company’s postretirement benefit plans. | |||||||||||||||||
The amounts recognized in accumulated other comprehensive income, net of tax, as of December 31, 2013 but not recognized as components of net periodic benefit cost included an unrecognized actuarial gain of $5 million and an unrecognized prior service credit of $1 million. The estimated amount that will be amortized from accumulated other comprehensive income, net of tax, into net periodic benefit cost in 2014 is approximately $1 million. | |||||||||||||||||
The weighted average assumptions used to determine benefit obligations for other postretirement benefits were as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in millions) | |||||||||||||||||
Discount rates | 4.25 | % | 3.4 | % | |||||||||||||
Healthcare cost increase rates: | |||||||||||||||||
Following year | 6 | 6.5 | |||||||||||||||
Decreasing to the year 2016 | 5 | 5 | |||||||||||||||
Discount rates are based on yields available on high-quality corporate bonds that would generate cash flows necessary to pay the benefits when due. A one percentage-point change in the assumed healthcare cost trend rates would not have a material effect on the postretirement benefit obligation or net periodic postretirement benefit costs. | |||||||||||||||||
The Company’s defined benefit postretirement plans expect to make benefit payments to retirees as follows: | |||||||||||||||||
(in millions) | |||||||||||||||||
2014 | $ | 2 | |||||||||||||||
2015 | 2 | ||||||||||||||||
2016 | 2 | ||||||||||||||||
2017 | 2 | ||||||||||||||||
2018 | 1 | ||||||||||||||||
2019-2023 | 7 | ||||||||||||||||
The Company expects to contribute $2 million to its defined benefit postretirement plans in 2014. | |||||||||||||||||
The following is a summary of unrealized losses included in other comprehensive income (loss) related to the Company’s defined benefit plans: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(in millions) | |||||||||||||||||
Net unrealized defined benefit losses at January 1 | $ | (91 | ) | $ | (75 | ) | $ | (24 | ) | ||||||||
Net gains (losses) | 71 | (23 | ) | (77 | ) | ||||||||||||
Prior service credit | (2 | ) | (2 | ) | (2 | ) | |||||||||||
Income tax (provision) benefit | (24 | ) | 9 | 28 | |||||||||||||
Net unrealized defined benefit losses at December 31 | $ | (46 | ) | $ | (91 | ) | $ | (75 | ) | ||||||||
Defined Contribution Plan | |||||||||||||||||
In addition to the plans described previously, the Company’s employees are generally eligible to participate in the Ameriprise Financial 401(k) Plan (the “401(k) Plan”). The 401(k) Plan allows eligible employees to make contributions through payroll deductions up to IRS limits and invest their contributions in one or more of the 401(k) Plan investment options, which include the Ameriprise Financial Stock Fund. The Company provides a dollar for dollar match up to the first 5% of eligible compensation an employee contributes on a pretax and/or Roth 401(k) basis for each annual period. | |||||||||||||||||
Under the 401(k) Plan, employees become eligible for contributions under the plan during the pay period they reach 60 days of service. Match contributions are fully vested after five years of service, vesting ratably over the first five years of service, or upon retirement at or after age 65, disability or death while employed. The Company’s defined contribution plan expense was $35 million, $36 million and $33 million in 2013, 2012 and 2011, respectively. | |||||||||||||||||
Threadneedle Profit Sharing Plan | |||||||||||||||||
On an annual basis, Threadneedle employees are eligible for a profit sharing arrangement. Through the end of 2012, the employee profit sharing plan provided for profit sharing of 30% based on an internally defined recurring pretax operating income measure for Threadneedle, which primarily included pretax income related to investment management services and investment portfolio income excluding gains and losses on asset disposals, certain reorganization expenses, EPP and EIP expenses and other non-recurring expenses. Beginning in 2013, the profit sharing percentage is variable and linked to certain performance criteria. Compensation expense related to the employee profit sharing plan was $69 million, $67 million and $54 million in 2013, 2012 and 2011, respectively. |
Commitments_Guarantees_and_Con
Commitments, Guarantees and Contingencies | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Commitments, Guarantees and Contingencies | ' | |||||||
Commitments, Guarantees and Contingencies | ||||||||
Commitments | ||||||||
The Company is committed to pay aggregate minimum rentals under noncancelable operating leases for office facilities and equipment in future years as follows: | ||||||||
(in millions) | ||||||||
2014 | $ | 84 | ||||||
2015 | 77 | |||||||
2016 | 64 | |||||||
2017 | 61 | |||||||
2018 | 51 | |||||||
Thereafter | 88 | |||||||
Total (1) | $ | 425 | ||||||
(1) Minimum payments have not been reduced by minimum sublease rentals due in the future under noncancelable subleases. | ||||||||
For the years ended December 31, 2013, 2012 and 2011, operating lease expense was $85 million, $84 million and $91 million, respectively. | ||||||||
The following table presents the Company’s funding commitments as of December 31: | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Commercial mortgage loan commitments | $ | 71 | $ | 76 | ||||
Consumer mortgage loan commitments | 542 | 627 | ||||||
Consumer lines of credit | 4 | 5 | ||||||
Affordable housing partnerships | 137 | 144 | ||||||
Total funding commitments | $ | 754 | $ | 852 | ||||
Guarantees | ||||||||
The Company’s life and annuity products all have minimum interest rate guarantees in their fixed accounts. As of December 31, 2013, these guarantees range up to 5%. | ||||||||
The Company is required by law to be a member of the guaranty fund association in every state where it is 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. Uncertainty and volatility in the U.S. economy and financial markets in recent years have weakened the financial condition of numerous insurers, including insurers currently in receiverships, increasing the risk of triggering guaranty fund assessments. | ||||||||
The Company projects its cost of future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and Health Insurance Guaranty Associations (“NOLHGA”) and the amount of its premiums written relative to the industry-wide premium in each state. The Company accrues the estimated cost of future guaranty fund assessments when it is considered probable that an assessment will be imposed, the event obligating the Company to pay the assessment has occurred and the amount of the assessment can be reasonably estimated. | ||||||||
Executive Life Insurance Company of New York (“ELNY”) was placed into rehabilitation by a New York state court in 1991. On April 16, 2012, the court issued an order converting the rehabilitation into a liquidation proceeding under a plan submitted by the New York insurance regulator with support from NOLHGA and the industry. Closing under the liquidation plan took place in August 2013. | ||||||||
During the second quarter of 2012, the Company established a liability for estimated guaranty fund assessments and a related premium tax asset, primarily associated with ELNY. At December 31, 2013 and 2012, the estimated liability was $14 million and $26 million, respectively, and the related premium tax asset was $11 million and $19 million, respectively. The Company has recently paid assessments related to ELNY from some of the state guaranty fund associations, however the expected period over which all of the assessments will be made and the related tax credits recovered is not known. | ||||||||
Contingencies | ||||||||
The Company and its subsidiaries are involved in the normal course of business in legal, regulatory and arbitration proceedings, including class actions, concerning matters arising in connection with the conduct of its activities as a diversified financial services firm. 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 litigation arising out of its general business activities, such as its investments, contracts, leases 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 financial services industry generally. | ||||||||
As with other financial services firms, the level of regulatory activity and inquiry concerning the Company’s businesses remains elevated. From time to time, the Company receives requests for information from, and/or has been subject to examination or claims by, the SEC, the Financial Industry Regulatory Authority, the Office of the Comptroller of the Currency, the UK Financial Conduct Authority, state insurance and securities regulators, state attorneys general and various other domestic or foreign governmental and quasi-governmental authorities on behalf of themselves or clients concerning the Company’s business activities and practices, and the practices of the Company’s financial advisors. During recent periods, the Company has received information requests, exams or inquiries regarding certain matters, including: sales and distribution of mutual funds, annuities, equity and fixed income securities, real estate investment trusts, insurance products, and financial advice offerings; supervision of the Company’s financial advisors; administration of insurance claims; security of client information and front office systems and controls at the Company’s UK subsidiary. The Company is also responding to regulatory audits, market conduct examinations and other state inquiries relating to an industry-wide investigation of unclaimed property and escheatment practices and procedures. The number of reviews and investigations has increased in recent years with regard to many firms in the financial services industry, including Ameriprise Financial. The Company has cooperated and will continue to cooperate with the applicable regulators regarding their inquiries. | ||||||||
These legal and regulatory proceedings and disputes are subject to uncertainties and, as such, it is inherently difficult to determine whether any loss is probable or even 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 or what the eventual settlement, fine, penalty or other relief, if any, may be, particularly for proceedings that are in their early stages of development or where plaintiffs seek indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing unsettled legal questions relevant to the proceedings in question, before a loss or range of loss can be reasonably estimated for any proceeding. An adverse outcome in one or more proceeding 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 or results of operations. | ||||||||
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. 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 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. | ||||||||
Certain legal and regulatory proceedings are described below. | ||||||||
In October 2011, a putative class action lawsuit entitled Roger Krueger, et al. vs. Ameriprise Financial, et al. was filed in the United States District Court for the District of Minnesota against the Company, certain of its present or former employees and directors, as well as certain fiduciary committees on behalf of participants and beneficiaries of the Ameriprise Financial 401(k) Plan. The alleged class period is from October 1, 2005 to the present. The action alleges that Ameriprise breached fiduciary duties under ERISA, by selecting and retaining primarily proprietary mutual funds with allegedly poor performance histories, higher expenses relative to other investment options and improper fees paid to Ameriprise Financial or its subsidiaries. The action also alleges that the Company breached fiduciary duties under ERISA because it used its affiliate Ameriprise Trust Company as the Plan trustee and record-keeper and improperly reaped profits from the sale of the record-keeping business to Wachovia Bank, N.A. Plaintiffs allege over $20 million in damages. Plaintiffs filed an amended complaint on February 7, 2012. On April 11, 2012, the Company filed its motion to dismiss the Amended Complaint, which was denied on November 20, 2012. The parties are engaged in discovery. On July 3, 2013, the Company moved for summary judgment on statute of limitations grounds. The hearing on the motion was heard on August 14, 2013, and the parties are awaiting a decision by the Court. A hearing on class certification was held on December 10, 2013, and the parties are awaiting a decision. The trial is currently scheduled for March 1, 2015. The Company cannot reasonably estimate the range of loss, if any, that may result from this matter due to the early procedural status of the case, the absence of class certification, the lack of a formal demand on the Company by the plaintiffs and plaintiffs’ failure to allege any specific, evidence-based damages. | ||||||||
In October 2012, a putative class action lawsuit entitled Jeffers vs. Ameriprise Financial Services, et al. was filed against the Company in the United States District Court for the Northern District of Illinois relating to its sales of the Inland Western (now known as Retail Properties of America, Inc. (“RPAI”)) REIT. The action also names as defendants RPAI, several of RPAI’s executives, and several members of RPAI’s board. The action alleges that the Company failed to perform required due diligence and misrepresented various aspects of the REIT including fees charged to clients, risks associated with the product, and valuation of the shares on client account statements. Plaintiffs seek unspecified damages. The Company was served in December 2012, and, on April 19, 2013, moved to dismiss the complaint. The motion has been fully briefed and submitted to the Court for review and decision. The Company cannot reasonably estimate the range of loss, if any, that may result from this matter due to the early procedural status of the case, the absence of class certification, the lack of a formal demand on the Company by the plaintiffs and plaintiffs’ failure to allege any specific, evidence-based damages. | ||||||||
In November 2012, a lawsuit entitled Versata Software, Inc., f/k/a Trilogy Software, Inc., et al. (“Versata”) v. Ameriprise Financial, Inc., Ameriprise Financial Services, Inc. & American Enterprise Investment Services, Inc. was filed in the District Court of Travis County, Texas relating to the Company’s licensing and use of software owned by Versata that the Company uses to manage registration, licensing and compensation, among other things. The lawsuit alleges the Company violated the terms of the license agreement by allowing an impermissible third-party contractor to decompile Versata’s software code, and failing to have the third-party contractor execute individual non-disclosure agreements. The Company has alleged counterclaims for wrongful termination and breaches of warranties, among other causes of action. Both sides have asserted defenses to the claims and counterclaims. The relief requested by Versata is for the Company to return the software and for other, unspecified, legal and equitable relief. The relief requested by the Company against Versata is delivery and free use by the Company of the Versata source code. Ameriprise removed the dispute to federal court. That removal is currently subject to a motion to return the case to state court. The matter is still in the discovery stage, and no trial date has been set. The Company cannot reasonably estimate the range of loss, if any, that may result from this matter due to the procedural status of the case. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
The Company may engage in transactions in the ordinary course of business with significant shareholders or their subsidiaries, between the Company and its directors and officers or with other companies whose directors or officers may also serve as directors or officers for the Company or its subsidiaries. The Company carries out these transactions on customary terms. The transactions have not had a material impact on the Company’s consolidated results of operations or financial condition. | |
The Company’s executive officers and directors may have transactions with the Company or its subsidiaries involving financial products and insurance services. All obligations arising from these transactions are in the ordinary course of the Company’s business and are on the same terms in effect for comparable transactions with the general public. Such obligations involve normal risks of collection and do not have features or terms that are unfavorable to the Company’s subsidiaries. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||
Discontinued Operations | ' | |||||||||||
Discontinued Operations | ||||||||||||
During the fourth quarter of 2011, the Company sold Securities America to Ladenburg Thalmann Financial Services, Inc. | ||||||||||||
The components of loss from discontinued operations, net of tax, were as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Total net revenues | $ | — | $ | — | $ | 382 | ||||||
Income (loss) from discontinued operations | $ | (4 | ) | $ | 2 | $ | (124 | ) | ||||
Gain on sale | (1 | ) | (7 | ) | 26 | |||||||
Income tax benefit | (2 | ) | (3 | ) | (38 | ) | ||||||
Loss from discontinued operations, net of tax | $ | (3 | ) | $ | (2 | ) | $ | (60 | ) |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment Information | ' | ||||||||||||
Segment Information | |||||||||||||
The Company’s segments are Advice & Wealth Management, Asset Management, Annuities, Protection and Corporate & Other. | |||||||||||||
The largest source of intersegment revenues and expenses is retail distribution services, where segments are charged transfer pricing rates that approximate arm’s length market prices for distribution through the Advice & Wealth Management segment. The Advice & Wealth Management segment provides distribution services for affiliated and non-affiliated products and services. The Asset Management segment provides investment management services for the Company’s owned assets and client assets, and accordingly charges investment and advisory management fees to the other segments. | |||||||||||||
All costs related to shared services are allocated to the segments based on a rate times volume or fixed basis. | |||||||||||||
The Advice & Wealth Management segment provides financial planning and advice, as well as full-service brokerage services, primarily to retail clients through the Company’s advisors. These services are centered on long-term, personal relationships between the Company’s advisors and its clients and focus on helping clients confidently achieve their financial goals. The Company’s advisors provide a distinctive approach to financial planning and have access to a broad selection of both affiliated and non-affiliated products to help clients meet their financial needs. A significant portion of revenues in this segment is fee-based, driven by the level of client assets, which is impacted by both market movements and net asset flows. The Company also earns net investment income on invested assets primarily from certificate products. This segment earns revenues (distribution fees) for distributing non-affiliated products and intersegment revenues (distribution fees) for distributing the Company’s affiliated products and services provided to its retail clients. Intersegment expenses for this segment include expenses for investment management services provided by the Asset Management segment. In January 2013, the Company completed the conversion of Ameriprise Bank to Ameriprise National Trust Bank. As a result of the conversion, Ameriprise National Trust Bank is no longer engaged in deposit-taking and credit-originating activities. In 2012, the Company liquidated banking deposits and returned all funds to its clients. The Company also sold Ameriprise Bank’s consumer loan portfolio to affiliates of Ameriprise Bank and Ameriprise Bank’s credit card account portfolio to Barclays. | |||||||||||||
The Asset Management segment provides investment advice and investment products to retail, high net worth and institutional clients on a global scale through Columbia Management Investment Advisers, LLC (“Columbia” or “Columbia Management”) and Threadneedle. Columbia Management primarily provides products and services in the U.S. and Threadneedle primarily provides products and services internationally. Columbia provides clients with U.S. domestic individual products through unaffiliated third party financial institutions and through the Advice & Wealth Management segment. Threadneedle provides institutional products and services through the Company’s institutional sales force. International retail products are primarily distributed through third-party institutions. Individual products include U.S. mutual funds and their non-U.S. equivalents, exchange-traded funds and variable product funds underlying insurance and annuity separate accounts. Institutional asset management services are designed to meet specific client objectives and may involve a range of products, including those that focus on traditional asset classes, separately managed accounts, individually managed accounts, collateralized loan obligations, hedge funds, collective funds and property funds. Collateralized loan obligations, hedge funds and certain private funds are often classified as alternative assets. Revenues in this segment are primarily earned as fees based on managed asset balances, which are impacted by market movements, net asset flows, asset allocation and product mix. The Company may also earn performance fees from certain accounts where investment performance meets or exceeds certain pre-identified targets. The Asset Management segment also provides intercompany asset management services for Ameriprise Financial subsidiaries. The fees for all such services are reflected within the Asset Management segment results through intersegment transfer pricing. Intersegment expenses for this segment include distribution expenses for services provided by the Advice & Wealth Management, Annuities and Protection segments. | |||||||||||||
The Annuities segment provides variable and fixed annuity products of RiverSource Life companies to individual clients. The Company provides variable annuity products through its advisors and its fixed annuity products are distributed through both affiliated and unaffiliated advisors and financial institutions. Revenues for the Company’s variable annuity products are primarily earned as fees based on underlying account balances, which are impacted by both market movements and net asset flows. Revenues for the Company’s fixed annuity products are primarily earned as net investment income on assets supporting fixed account balances, with profitability significantly impacted by the spread between net investment income earned and interest credited on the fixed account balances. The Company also earns net investment income on owned assets supporting reserves for immediate annuities and for certain guaranteed benefits offered with variable annuities and on capital supporting the business. Intersegment revenues for this segment reflect fees paid by the Asset Management segment for marketing support and other services provided in connection with the availability of variable insurance trust funds (“VIT Funds”) under the variable annuity contracts. Intersegment expenses for this segment include distribution expenses for services provided by the Advice & Wealth Management segment, as well as expenses for investment management services provided by the Asset Management segment. | |||||||||||||
The Protection segment offers a variety of products to address the protection and risk management needs of the Company’s retail clients including life, DI and property-casualty insurance. Life and DI products are primarily provided through the Company’s advisors. The Company’s property-casualty products are sold through affinity relationships. The Company issues insurance policies through its life insurance subsidiaries and the Property Casualty companies. The primary sources of revenues for this segment are premiums, fees, and charges that the Company receives to assume insurance-related risk. The Company earns net investment income on owned assets supporting insurance reserves and capital supporting the business. The Company also receives fees based on the level of assets supporting VUL separate account balances. This segment earns intersegment revenues from fees paid by the Asset Management segment for marketing support and other services provided in connection with the availability of VIT Funds under the VUL contracts. Intersegment expenses for this segment include distribution expenses for services provided by the Advice & Wealth Management segment, as well as expenses for investment management services provided by the Asset Management segment. | |||||||||||||
The Corporate & Other segment consists of net investment income or loss on corporate level assets, including excess capital held in the Company’s subsidiaries and other unallocated equity and other revenues as well as unallocated corporate expenses. The Corporate & Other segment also includes revenues and expenses of consolidated investment entities, which are excluded on an operating basis. | |||||||||||||
Management uses segment operating measures in goal setting, as a basis for determining employee compensation and in evaluating performance on a basis comparable to that used by some securities analysts and investors. Consistent with GAAP accounting guidance for segment reporting, operating earnings is the Company’s measure of segment performance. Operating earnings should not be viewed as a substitute for GAAP income from continuing operations before income tax provision. The Company believes the presentation of segment operating earnings, as the Company measures it for management purposes, enhances the understanding of its business by reflecting the underlying performance of its core operations and facilitating a more meaningful trend analysis. | |||||||||||||
The accounting policies of the segments are the same as those of the Company, except for operating adjustments defined below, the method of capital allocation, the accounting for gains (losses) from intercompany revenues and expenses and not providing for income taxes on a segment basis. | |||||||||||||
Operating earnings is defined as operating net revenues less operating expenses. Operating net revenues and operating expenses exclude the results of discontinued operations, the market impact on IUL benefits (net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual), integration and restructuring charges and the impact of consolidating investment entities. Operating net revenues also exclude net realized gains or losses. Operating expenses also exclude the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC and DAC amortization). The market impact on variable annuity guaranteed benefits and IUL benefits includes changes in embedded derivative values caused by changes in financial market conditions, net of changes in economic hedge values and unhedged items including the difference between assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and certain policyholder contract elections, net of related impacts on DAC and DSIC amortization. The market impact also includes certain valuation adjustments made in accordance with FASB Accounting Standards Codification 820, Fair Value Measurements and Disclosures, including the impact on embedded derivative values of discounting projected benefits to reflect a current estimate of the Company’s life insurance subsidiary’s nonperformance spread. Integration and restructuring charges primarily relate to the Company’s acquisition of the long-term asset management business of Columbia Management Group on April 30, 2010. The costs include system integration costs, proxy and other regulatory filing costs, employee reduction and retention costs and investment banking, legal and other acquisition costs. Beginning in the second quarter of 2012, integration and restructuring charges also include expenses related to the Company’s transition of its federal savings bank subsidiary, Ameriprise Bank, FSB, to a limited powers national trust bank. | |||||||||||||
The following tables summarize selected financial information by segment and reconcile segment totals to those reported on the consolidated financial statements: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(in millions) | |||||||||||||
Advice & Wealth Management | $ | 9,571 | $ | 8,962 | |||||||||
Asset Management | 7,223 | 6,267 | |||||||||||
Annuities | 98,354 | 91,587 | |||||||||||
Protection | 19,605 | 19,065 | |||||||||||
Corporate & Other | 9,823 | 8,848 | |||||||||||
Total assets | $ | 144,576 | $ | 134,729 | |||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in millions) | |||||||||||||
Operating net revenues: | |||||||||||||
Advice & Wealth Management | $ | 4,295 | $ | 3,873 | $ | 3,713 | |||||||
Asset Management | 3,169 | 2,891 | 2,897 | ||||||||||
Annuities | 2,583 | 2,524 | 2,630 | ||||||||||
Protection | 2,190 | 2,088 | 2,069 | ||||||||||
Corporate & Other | (11 | ) | 20 | 3 | |||||||||
Eliminations(1) | (1,369 | ) | (1,253 | ) | (1,262 | ) | |||||||
Total segment operating revenues | 10,857 | 10,143 | 10,050 | ||||||||||
Net realized gains | 7 | 7 | 6 | ||||||||||
Revenue attributable to CIEs | 345 | 71 | 136 | ||||||||||
Market impact on IUL benefits, net | (10 | ) | — | — | |||||||||
Integration and restructuring charges | — | (4 | ) | — | |||||||||
Total net revenues per consolidated statements of operations | $ | 11,199 | $ | 10,217 | $ | 10,192 | |||||||
(1) Represents the elimination of intersegment revenues recognized for the years ended December 31, 2013, 2012 and 2011 in each segment as follows: Advice and Wealth Management ($980, $901 and $930, respectively); Asset Management ($39, $43 and $42, respectively); Annuities ($307, $271 and $251, respectively); Protection ($40, $37 and $37, respectively); and Corporate & Other ($3, $1 and $2, respectively). | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in millions) | |||||||||||||
Operating earnings: | |||||||||||||
Advice & Wealth Management | $ | 598 | $ | 443 | $ | 406 | |||||||
Asset Management | 715 | 557 | 528 | ||||||||||
Annuities | 686 | 567 | 625 | ||||||||||
Protection | 365 | 398 | 386 | ||||||||||
Corporate & Other | (345 | ) | (270 | ) | (241 | ) | |||||||
Total segment operating earnings | 2,019 | 1,695 | 1,704 | ||||||||||
Net realized gains | 7 | 7 | 6 | ||||||||||
Net income (loss) attributable to noncontrolling interests | 141 | (128 | ) | (106 | ) | ||||||||
Market impact on variable annuity guaranteed benefits, net | (170 | ) | (265 | ) | (62 | ) | |||||||
Market impact on IUL benefits, net | (13 | ) | — | — | |||||||||
Integration and restructuring charges | (14 | ) | (71 | ) | (95 | ) | |||||||
Income from continuing operations before income tax provision per consolidated statements of operations | $ | 1,970 | $ | 1,238 | $ | 1,447 | |||||||
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||||||||||||||||||
Quarterly Financial Data (Unaudited) | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
31-Dec | 30-Sep | 30-Jun | 31-Mar | 31-Dec | 30-Sep | 30-Jun | 31-Mar | ||||||||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||||||||||||
Net revenues | $ | 2,946 | $ | 2,813 | $ | 2,749 | $ | 2,691 | $ | 2,674 | $ | 2,468 | $ | 2,514 | $ | 2,561 | |||||||||||||||||
Income from continuing operations before income tax provision | 479 | 602 | 402 | 487 | 418 | 199 | 299 | 322 | |||||||||||||||||||||||||
Income from continuing operations | 382 | 448 | 282 | 366 | 331 | 152 | 171 | 249 | |||||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | (2 | ) | 1 | (1 | ) | (1 | ) | 1 | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||||
Net income | 380 | 449 | 281 | 365 | 332 | 151 | 170 | 248 | |||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 84 | 67 | (40 | ) | 30 | (57 | ) | (22 | ) | (53 | ) | 4 | |||||||||||||||||||||
Net income attributable to Ameriprise Financial | $ | 296 | $ | 382 | $ | 321 | $ | 335 | $ | 389 | $ | 173 | $ | 223 | $ | 244 | |||||||||||||||||
Earnings per share attributable to Ameriprise Financial, Inc. common shareholders: | |||||||||||||||||||||||||||||||||
Basic | |||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 1.5 | $ | 1.9 | $ | 1.57 | $ | 1.61 | $ | 1.84 | $ | 0.81 | $ | 1.01 | $ | 1.08 | |||||||||||||||||
Income (loss) from discontinued operations | (0.01 | ) | — | — | — | 0.01 | (0.01 | ) | — | (0.01 | ) | ||||||||||||||||||||||
Net income | $ | 1.49 | $ | 1.9 | $ | 1.57 | $ | 1.61 | $ | 1.85 | $ | 0.8 | $ | 1.01 | $ | 1.07 | |||||||||||||||||
Diluted | |||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 1.47 | $ | 1.86 | $ | 1.54 | $ | 1.58 | $ | 1.8 | $ | 0.79 | $ | 0.99 | $ | 1.06 | |||||||||||||||||
Income (loss) from discontinued operations | (0.01 | ) | — | — | — | 0.01 | — | — | (0.01 | ) | |||||||||||||||||||||||
Net income | $ | 1.46 | $ | 1.86 | $ | 1.54 | $ | 1.58 | $ | 1.81 | $ | 0.79 | $ | 0.99 | $ | 1.05 | |||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||||||||||||
Basic | 198.3 | 201.3 | 204.9 | 208.4 | 210.8 | 215 | 221.7 | 227.3 | |||||||||||||||||||||||||
Diluted | 202.3 | 205.1 | 208.6 | 212.3 | 215.1 | 219.1 | 225.6 | 231.7 | |||||||||||||||||||||||||
Cash dividends declared per common share | $ | 0.52 | $ | 0.52 | $ | 0.52 | $ | 0.45 | $ | 0.45 | $ | 0.35 | $ | 0.35 | $ | — | |||||||||||||||||
Common share price: | |||||||||||||||||||||||||||||||||
High | 115.36 | 94.45 | 84.29 | 75.14 | 63.75 | 60.47 | 57.94 | 58.68 | |||||||||||||||||||||||||
Low | 89.37 | 80.49 | 69.35 | 63.59 | 55.66 | 47.84 | 45.17 | 49.14 | |||||||||||||||||||||||||
SCHEDULE_I_CONDENSED_FINANCIAL
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Parent Company Only) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Parent Company Only) | ' | |||||||||||
Schedule I — Condensed Financial Information of Registrant | ||||||||||||
Condensed Statements of Operations | ||||||||||||
(Parent Company Only) | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Revenues | (in millions) | |||||||||||
Management and financial advice fees | $ | 4 | $ | 1 | $ | — | ||||||
Distribution fees | 1 | — | 9 | |||||||||
Net investment income | 33 | 29 | 18 | |||||||||
Other revenues | 7 | 9 | 30 | |||||||||
Total revenues | 45 | 39 | 57 | |||||||||
Banking and deposit interest expense | — | 3 | — | |||||||||
Total net revenues | 45 | 36 | 57 | |||||||||
Expenses | ||||||||||||
Benefits, claims, losses and settlement expenses | 19 | — | — | |||||||||
Distribution expenses | — | (5 | ) | 5 | ||||||||
Interest and debt expense | 123 | 94 | 95 | |||||||||
General and administrative expense | 221 | 255 | 223 | |||||||||
Total expenses | 363 | 344 | 323 | |||||||||
Pretax loss before equity in earnings of subsidiaries | (318 | ) | (308 | ) | (266 | ) | ||||||
Income tax benefit | (85 | ) | (104 | ) | (102 | ) | ||||||
Loss before equity in earnings of subsidiaries | (233 | ) | (204 | ) | (164 | ) | ||||||
Equity in earnings of subsidiaries excluding discontinued operations | 1,570 | 1,235 | 1,340 | |||||||||
Net income from continuing operations | 1,337 | 1,031 | 1,176 | |||||||||
Loss from discontinued operations, net of tax | (3 | ) | (2 | ) | (60 | ) | ||||||
Net income | $ | 1,334 | $ | 1,029 | $ | 1,116 | ||||||
See Notes to Condensed Financial Information of Registrant. | ||||||||||||
Schedule I — Condensed Financial Information of Registrant | ||||||||||||
Condensed Statements of Comprehensive Income | ||||||||||||
(Parent Company Only) | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Net income | $ | 1,334 | $ | 1,029 | $ | 1,116 | ||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Foreign currency translation adjustment | 12 | 21 | (2 | ) | ||||||||
Net unrealized gains (losses) on securities: | ||||||||||||
Net unrealized securities gains (losses) arising during the period | (971 | ) | 588 | 376 | ||||||||
Reclassification of net securities gains included in net income | (5 | ) | (5 | ) | — | |||||||
Impact on deferred acquisition costs, deferred sales inducement costs, benefit reserves and reinsurance recoverables | 319 | (154 | ) | (193 | ) | |||||||
Total net unrealized gains (losses) on securities | (657 | ) | 429 | 183 | ||||||||
Net unrealized gains (losses) on derivatives: | ||||||||||||
Net unrealized derivative gains (losses) arising during the period | — | 10 | (7 | ) | ||||||||
Reclassification of net derivative losses (gains) included in net income | 1 | (1 | ) | (22 | ) | |||||||
Total net unrealized gains (losses) on derivatives | 1 | 9 | (29 | ) | ||||||||
Defined benefit plans: | ||||||||||||
Prior service credit | (1 | ) | (1 | ) | (1 | ) | ||||||
Net income (loss) arising during the period | 46 | (15 | ) | (50 | ) | |||||||
Total defined benefit plans | 45 | (16 | ) | (51 | ) | |||||||
Total other comprehensive income (loss), net of tax | (599 | ) | 443 | 101 | ||||||||
Total comprehensive income | $ | 735 | $ | 1,472 | $ | 1,217 | ||||||
See Notes to Condensed Financial Information of Registrant. | ||||||||||||
Schedule I — Condensed Financial Information of Registrant | ||||||||||||
Condensed Balance Sheet | ||||||||||||
(Parent Company Only) | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(in millions, except share amounts) | ||||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 925 | $ | 900 | ||||||||
Investments | 743 | 894 | ||||||||||
Loans to subsidiaries | 457 | 467 | ||||||||||
Due from subsidiaries | 416 | 225 | ||||||||||
Receivables | 64 | 12 | ||||||||||
Land, buildings, equipment, and software, net of accumulated depreciation of $805 and $756, respectively | 250 | 251 | ||||||||||
Investments in subsidiaries | 7,652 | 8,200 | ||||||||||
Other assets | 1,224 | 1,350 | ||||||||||
Total assets | $ | 11,731 | $ | 12,299 | ||||||||
Liabilities and Shareholders’ Equity | ||||||||||||
Liabilities: | ||||||||||||
Accounts payable and accrued expenses | $ | 191 | $ | 198 | ||||||||
Due to subsidiaries | 405 | 330 | ||||||||||
Debt | 2,720 | 2,403 | ||||||||||
Other liabilities | 560 | 612 | ||||||||||
Total liabilities | 3,876 | 3,543 | ||||||||||
Shareholders’ Equity: | ||||||||||||
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 316,816,851 and 309,399,529, respectively) | 3 | 3 | ||||||||||
Additional paid-in capital | 6,929 | 6,503 | ||||||||||
Retained earnings | 7,289 | 6,381 | ||||||||||
Treasury shares, at cost (124,698,544 and 105,456,535 shares, respectively) | (6,961 | ) | (5,325 | ) | ||||||||
Accumulated other comprehensive income, net of tax, including amounts applicable to equity investments in subsidiaries | 595 | 1,194 | ||||||||||
Total shareholders’ equity | 7,855 | 8,756 | ||||||||||
Total liabilities and equity | $ | 11,731 | $ | 12,299 | ||||||||
See Notes to Condensed Financial Information of Registrant. | ||||||||||||
Schedule I — Condensed Financial Information of Registrant | ||||||||||||
Condensed Statements of Cash Flows | ||||||||||||
(Parent Company Only) | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Cash Flows from Operating Activities | ||||||||||||
Net income | $ | 1,334 | $ | 1,029 | $ | 1,116 | ||||||
Equity in earnings of subsidiaries excluding discontinued operations | (1,570 | ) | (1,235 | ) | (1,340 | ) | ||||||
Loss from discontinued operations, net of tax | 3 | 2 | 60 | |||||||||
Dividends received from subsidiaries | 1,163 | 1,366 | 1,210 | |||||||||
Other operating activities, primarily with subsidiaries | (34 | ) | 197 | (231 | ) | |||||||
Net cash provided by operating activities | 896 | 1,359 | 815 | |||||||||
Cash Flows from Investing Activities | ||||||||||||
Available-for-Sale securities: | ||||||||||||
Proceeds from sales | 2 | — | — | |||||||||
Maturities, sinking fund payments and calls | 191 | 30 | 239 | |||||||||
Purchases | (109 | ) | — | (22 | ) | |||||||
Proceeds from sale of other investments | 43 | 1 | — | |||||||||
Purchase of other investments | (1 | ) | (55 | ) | — | |||||||
Purchase of land, buildings, equipment and software | (54 | ) | (38 | ) | (56 | ) | ||||||
Contributions to subsidiaries | (106 | ) | (131 | ) | (128 | ) | ||||||
Return of capital from subsidiaries | 470 | 347 | 22 | |||||||||
Proceeds from sale of business | — | — | 150 | |||||||||
Repayment of loans from subsidiaries | 1,420 | 1,150 | 1,252 | |||||||||
Issuance of loans to subsidiaries | (1,412 | ) | (994 | ) | (1,312 | ) | ||||||
Other, net | 20 | (16 | ) | 2 | ||||||||
Net cash provided by investing activities | 464 | 294 | 147 | |||||||||
Cash Flows from Financing Activities | ||||||||||||
Dividends paid to shareholders | (401 | ) | (305 | ) | (212 | ) | ||||||
Repurchase of common shares | (1,583 | ) | (1,381 | ) | (1,495 | ) | ||||||
Cash paid for purchased options with deferred premiums | (4 | ) | — | — | ||||||||
Cash received for purchased options with deferred premiums | 23 | — | — | |||||||||
Issuances of debt, net of issuance costs | 744 | — | — | |||||||||
Repayments of debt | (350 | ) | — | (14 | ) | |||||||
Exercise of stock options | 118 | 160 | 66 | |||||||||
Excess tax benefits from share-based compensation | 120 | 64 | 90 | |||||||||
Other, net | (2 | ) | (3 | ) | (1 | ) | ||||||
Net cash used in financing activities | (1,335 | ) | (1,465 | ) | (1,566 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | 25 | 188 | (604 | ) | ||||||||
Cash and cash equivalents at beginning of year | 900 | 712 | 1,316 | |||||||||
Cash and cash equivalents at end of year | $ | 925 | $ | 900 | $ | 712 | ||||||
Supplemental Disclosures: | ||||||||||||
Interest paid on debt | $ | 129 | $ | 139 | $ | 139 | ||||||
Income taxes paid, net | 354 | 170 | 334 | |||||||||
Non-cash capital transactions from subsidiaries | — | — | (850 | ) | ||||||||
Non-cash financing activity: | ||||||||||||
Dividends declared but not paid | — | — | 62 | |||||||||
See Notes to Condensed Financial Information of Registrant. | ||||||||||||
Schedule I — Condensed Financial Information of Registrant | ||||||||||||
Notes to Condensed Financial Information of Registrant | ||||||||||||
(Parent Company Only) | ||||||||||||
1. Basis of Presentation | ||||||||||||
The accompanying Condensed Financial Statements include the accounts of Ameriprise Financial, Inc. (the “Registrant,” “Ameriprise Financial” or “Parent Company”) and, on an equity basis, its subsidiaries and affiliates. The appropriated retained earnings of consolidated investment entities are not included on the Parent Company Only Condensed Financial Statements. The financial statements have been prepared in accordance with U.S. generally accepted accounting principles. The financial information of the Parent Company should be read in conjunction with the Consolidated Financial Statements and Notes of Ameriprise Financial. Parent Company revenues and expenses, other than compensation and benefits and debt and interest expense, are primarily related to intercompany transactions with subsidiaries and affiliates. | ||||||||||||
The change in the fair value of derivative instruments used as hedges is reflected in the Parent Company Only Condensed Statements of Operations. For certain of these derivatives, the change in the hedged item is reflected in the subsidiaries’ Statements of Operations. The change in fair value of derivatives used to hedge asset-based distribution fees is included in distribution fees, while the underlying distribution fee revenue is reflected in equity in earnings of subsidiaries. The change in fair value of derivatives used to economically hedge exposure to equity price risk of Ameriprise Financial, Inc. common stock granted as part of the Ameriprise Financial Franchise Advisor Deferred Compensation Plan is included in distribution expenses, while the underlying distribution expenses are reflected in equity in earnings of subsidiaries. The change in fair value of certain derivatives used to economically hedge risk related to GMWB provisions is included in benefits, claims, losses and settlement expenses, while the underlying benefits, claims, losses and settlement expenses are reflected in equity in earnings of subsidiaries. | ||||||||||||
2. Discontinued Operations | ||||||||||||
In the fourth quarter of 2011, Ameriprise Financial sold Securities America for $150 million. The results of Securities America have been presented as loss from discontinued operations, net of tax for all periods presented. | ||||||||||||
3. Debt | ||||||||||||
All of the debt of Ameriprise Financial is borrowings of the Parent Company, except as indicated below. | ||||||||||||
• | At December 31, 2013 and 2012, the debt of Ameriprise Financial included $50 million and $501 million of repurchase agreements, respectively, which are accounted for as secured borrowings. | |||||||||||
• | As of December 31, 2013, Ameriprise Financial had $450 million of borrowings from the Federal Home Loan Bank of Des Moines (“FHLB”), which is collateralized with commercial mortgage backed securities. We had no borrowings from the FHLB as of December 31, 2012. | |||||||||||
4. Guarantees, Commitments and Contingencies | ||||||||||||
The Parent Company is the guarantor for operating leases of IDS Property Casualty Insurance Company and certain other subsidiaries. | ||||||||||||
All consolidated legal, regulatory and arbitration proceedings, including class actions of Ameriprise Financial, Inc. and its consolidated subsidiaries are potential or current obligations of the Parent Company. | ||||||||||||
The Parent Company and Ameriprise Certificate Company (“ACC”) entered into a Capital Support Agreement on March 2, 2009, pursuant to which the Parent Company agrees to commit such capital to ACC as is necessary to satisfy applicable minimum capital requirements, up to a maximum commitment of $115 million. For the years ended December 31, 2013, 2012 and 2011, ACC did not draw upon the Capital Support Agreement and had met all applicable capital requirements. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Principles of Consolidation | ' | |
Principles of Consolidation | ||
The Company consolidates entities in which it holds a greater than 50% voting interest, or when certain conditions are met for VIEs and limited partnerships. Entities in which the Company exercises significant influence or holds a greater than 20% but less than 50% voting interest are accounted for under the equity method. All other investments that are not reported at fair value as trading or Available-for-Sale securities are accounted for under the cost method where the Company owns less than a 20% voting interest and does not exercise significant influence. | ||
A VIE is an entity that either has equity investors that lack certain essential characteristics of a controlling financial interest (including substantive voting rights, the obligation to absorb the entity’s losses, or the rights to receive the entity’s returns) or has equity investors that do not provide sufficient financial resources for the entity to support its activities. A VIE is required to be assessed for consolidation under two models: | ||
• | If the VIE is a money market fund or is an investment company, or has the financial characteristics of an investment company, and the following is true: | |
(i) | the entity does not have an explicit or implicit obligation to fund the investment company’s losses; and | |
(ii) | the investment company is not a securitization entity, asset backed financing entity, or an entity previously considered a qualifying special purpose entity, | |
then, the VIE will be consolidated by the entity that determines it stands to absorb a majority of the VIE’s expected losses or to receive a majority of the VIE’s expected residual returns. Examples of entities that are likely to be assessed for consolidation under this framework include hedge funds, property funds, private equity funds and venture capital funds. | ||
• | If the VIE does not meet the criteria above, the VIE will be consolidated by the entity that determines it has both: | |
(i) | the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and | |
(ii) | the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. | |
When determining whether the Company stands to absorb the majority of a VIE’s expected losses or receive a majority of a VIE’s expected returns, it analyzes the design of the VIE to identify the variable interests it holds. Then the Company quantitatively determines whether its variable interests will absorb a majority of the VIE’s variability. If the Company determines it has control over the activities that most significantly impact the economic performance of the VIE and it will absorb a majority of the VIE’s expected variability, the Company consolidates the VIE. The calculation of variability is based on an analysis of projected probability-weighted cash flows based on the design of the particular VIE. When determining whether the Company has the power and the obligation to absorb losses or rights to receive benefits from the VIE that could potentially be significant, the Company qualitatively determines if its variable interests meet these criteria. If the Company consolidates a VIE under either scenario, it is referred to as the VIE’s primary beneficiary. | ||
The Company consolidates certain limited partnerships that are not VIEs, for which the Company is the general partner and is determined to control the limited partnership. As a general partner, the Company is presumed to control the limited partnership unless the limited partners have the ability to dissolve the partnership or have substantive participating rights. | ||
Foreign Currency Translation | ' | |
Foreign Currency Translation | ||
Net assets of foreign subsidiaries, whose functional currency is other than the U.S. dollar, are translated into U.S. dollars based upon exchange rates prevailing at the end of each period. The resulting translation adjustment, along with any related hedge and tax effects, are included in accumulated other comprehensive income. Revenues and expenses are translated at average exchange rates during the period. | ||
Amounts Based on Estimates and Assumptions | ' | |
Amounts Based on Estimates and Assumptions | ||
Accounting estimates are an integral part of the Consolidated Financial Statements. In part, they are based upon assumptions concerning future events. Among the more significant are those that relate to investment securities valuation and recognition of other-than-temporary impairments, DAC and the corresponding recognition of DAC amortization, derivative instruments and hedging activities, litigation and claims reserves and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ. | ||
Cash and Cash Equivalents | ' | |
Cash and Cash Equivalents | ||
Cash equivalents include time deposits and other highly liquid investments with original maturities of 90 days or less. | ||
Investments | ' | |
Investments | ||
Available-for-Sale Securities | ||
Available-for-Sale securities are carried at fair value with unrealized gains (losses) recorded in accumulated other comprehensive income, net of impacts to DAC, DSIC, certain benefit reserves, reinsurance recoverables and income taxes. Gains and losses are recognized on a trade date basis in the Consolidated Statements of Operations upon disposition of the securities. | ||
When the fair value of an investment is less than its amortized cost, the Company assesses whether or not: (i) it has the intent to sell the security (made a decision to sell) or (ii) it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If either of these conditions is met, an other-than-temporary impairment is considered to have occurred and the Company must recognize an other-than-temporary impairment for the difference between the investment’s amortized cost basis and its fair value through earnings. For securities that do not meet the above criteria and the Company does not expect to recover a security’s amortized cost basis, the security is also considered other-than-temporarily impaired. For these securities, the Company separates the total impairment into the credit loss component and the amount of the loss related to other factors. The amount of the total other-than-temporary impairment related to credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to other factors is recognized in other comprehensive income, net of impacts to DAC, DSIC, certain benefit reserves, reinsurance recoverables and income taxes. For Available-for-Sale securities that have recognized an other-than-temporary impairment through earnings, the difference between the amortized cost basis and the cash flows expected to be collected is accreted as interest income, if through subsequent evaluation there is a sustained increase in the cash flow expected. Subsequent increases and decreases in the fair value of Available-for-Sale securities are included in other comprehensive income. | ||
The Company provides a supplemental disclosure on the face of its Consolidated Statements of Operations that presents: (i) total other-than-temporary impairment losses recognized during the period and (ii) the portion of other-than-temporary impairment losses recognized in other comprehensive income. The sum of these amounts represents the credit-related portion of other-than-temporary impairments that were recognized in earnings during the period. The portion of other-than-temporary losses recognized in other comprehensive income includes: (i) the portion of other-than-temporary impairment losses related to factors other than credit recognized during the period and (ii) reclassifications of other-than-temporary impairment losses previously determined to be related to factors other than credit that are determined to be credit-related in the current period. The amount presented on the Consolidated Statements of Operations as the portion of other-than-temporary losses recognized in other comprehensive income excludes subsequent increases and decreases in the fair value of these securities. | ||
For all securities that are considered temporarily impaired, the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. The Company believes that it will collect all principal and interest due on all investments that have amortized cost in excess of fair value that are considered only temporarily impaired. | ||
Factors the Company considers in determining whether declines in the fair value of fixed maturity securities are other-than-temporary include: (i) the extent to which the market value is below amortized cost; (ii) the duration of time in which there has been a significant decline in value; (iii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iv) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors. In order to determine the amount of the credit loss component for corporate debt securities considered other-than-temporarily impaired, a best estimate of the present value of cash flows expected to be collected discounted at the security’s effective interest rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and the Company’s position in the debtor’s overall capital structure. | ||
For structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities and asset backed securities), the Company also considers factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections in assessing potential other-than-temporary impairments of these investments. Based upon these factors, securities that have indicators of potential other-than-temporary impairment are subject to detailed review by management. Securities for which declines are considered temporary continue to be carefully monitored by management. | ||
Mortgage Loans, Net | ||
Mortgage loans, net reflect the Company’s interest in commercial mortgage loans and consumer loans secured by residential properties, less the related allowance for loan losses. | ||
Policy and Certificate Loans | ||
Policy and certificate loans include life insurance policy, annuity and investment certificate loans and are reflected within investments at the unpaid principal balance, plus accrued interest. | ||
Other Investments | ||
Other investments primarily reflect the Company’s interests in affordable housing partnerships, trading securities, seed money investments and syndicated loans. Affordable housing partnerships and seed money investments are accounted for under the equity method. Trading securities primarily include common stocks and trading bonds. Trading securities are carried at fair value with unrealized and realized gains (losses) recorded within net investment income. | ||
Financing Receivables | ' | |
Financing Receivables | ||
Commercial Mortgage Loans, Syndicated Loans, and Consumer Loans | ||
Commercial mortgage loans, syndicated loans and consumer loans are reflected within investments at amortized cost less the allowance for loan losses. Syndicated loans represent the Company’s investment in below investment grade loan syndications and are carried at amortized cost less the related allowance for loan losses. Interest income is accrued on the unpaid principal balances of the loans as earned. | ||
In January 2013, the Company completed the conversion of its federal savings bank subsidiary, Ameriprise Bank, FSB (“Ameriprise Bank”), to a limited powers national trust bank now known as Ameriprise National Trust Bank. As a result of the conversion, Ameriprise National Trust Bank is no longer engaged in credit-origination activities. In 2012, the Company sold Ameriprise Bank’s consumer loan portfolio, including first mortgages, home equity loans, home equity lines of credit and unsecured loans to affiliates of Ameriprise Bank and it sold Ameriprise Bank’s credit card account portfolio to Barclays Bank Delaware (“Barclays”). | ||
Other Loans | ||
Other loans consist of policy and certificate loans and brokerage margin loans. When originated, policy and certificate loan balances do not exceed the cash surrender value of the underlying products. As there is minimal risk of loss related to policy and certificate loans, the Company does not record an allowance for loan losses. The Company’s broker dealer subsidiaries enter into lending arrangements with clients through the normal course of business, which are primarily based on customer margin levels. Margin loans are reported at the unpaid principal balance within receivables. The Company monitors the market value of collateral supporting the margin loans and requests additional collateral when necessary in order to mitigate the risk of loss. As there is minimal risk of loss related to margin loans, the allowance for loan losses is immaterial. | ||
Nonaccrual Loans | ||
Generally, loans are evaluated for or placed on nonaccrual status when either the collection of interest or principal has become 90 days past due or is otherwise considered doubtful of collection. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Interest payments received on loans on nonaccrual status are generally applied to principal or in accordance with the loan agreement unless the remaining principal balance has been determined to be fully collectible. | ||
Revolving unsecured consumer lines are charged off at 180 days past due. Closed-end consumer loans, other than loans secured by one to four family properties, are charged off at 120 days past due and are generally not placed on nonaccrual status. Loans secured by one to four family properties are charged off when management determines the assets are uncollectible and commences foreclosure proceedings on the property, at which time the property is written down to fair value less selling costs and recorded as real estate owned in other assets. Commercial mortgage loans are evaluated for impairment when the loan is considered for nonaccrual status, restructured or foreclosure proceedings are initiated on the property. If it is determined that the fair value is less than the current loan balance, it is written down to fair value less selling costs. Foreclosed property is recorded as real estate owned in other assets. Syndicated loans are placed on nonaccrual status when management determines it will not collect all contractual principal and interest on the loan. | ||
Allowance for Loan Losses | ||
Management determines the adequacy of the allowance for loan losses by portfolio based on the overall loan portfolio composition, recent and historical loss experience, and other pertinent factors, including when applicable, internal risk ratings, loan-to-value (“LTV”) ratios, FICO scores of the borrower, debt service coverage and occupancy rates, along with economic and market conditions. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change. | ||
The Company determines the amount of the allowance required for certain sectors based on management’s assessment of relative risk characteristics of the loan portfolio. The allowance is recorded for homogeneous loan categories on a pool basis, based on an analysis of product mix and risk characteristics of the portfolio, including geographic concentration, bankruptcy experiences, and historical losses, adjusted for current trends and market conditions. | ||
While the Company attributes portions of the allowance to specific loan pools as part of the allowance estimation process, the entire allowance is available to absorb losses inherent in the total loan portfolio. The allowance is increased through provisions charged to net investment income and reduced/increased by net charge-offs/recoveries. | ||
Impaired Loans | ||
The Company considers a loan to be impaired when, based on current information and events, it is probable the Company will not be able to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. Impaired loans may also include loans that have been modified in troubled debt restructurings as a concession to borrowers experiencing financial difficulties. Management evaluates for impairment all restructured loans and loans with higher impairment risk factors. Factors used by the Company to determine whether all amounts due on commercial mortgage loans will be collected, include but are not limited to, the financial condition of the borrower, performance of the underlying properties, collateral and/or guarantees on the loan, and the borrower’s estimated future ability to pay based on property type and geographic location. The evaluation of impairment on consumer loans is primarily driven by delinquency status of individual loans. The impairment recognized is measured as the excess of the loan’s recorded investment over: (i) the present value of its expected principal and interest payments discounted at the loan’s effective interest rate, (ii) the fair value of collateral or (iii) the loan’s observable market price. | ||
Restructured Loans | ||
A loan is classified as a restructured loan when the Company makes certain concessionary modifications to contractual terms for borrowers experiencing financial difficulties. When the interest rate, minimum payments, and/or due dates have been modified in an attempt to make the loan more affordable to a borrower experiencing financial difficulties, the modification is considered a troubled debt restructuring. Generally, performance prior to the restructuring or significant events that coincide with the restructuring are considered in assessing whether the borrower can meet the new terms which may result in the loan being returned to accrual status at the time of the restructuring or after a performance period. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status. | ||
Separate Account Assets and Liabilities | ' | |
Separate Account Assets and Liabilities | ||
Separate account assets and liabilities are primarily funds held for the exclusive benefit of variable annuity contractholders and variable life insurance policyholders, who assume the related investment risk. Income and losses on separate account assets accrue directly to the contractholder or policyholder and are not reported in the Company’s Consolidated Statements of Operations. Separate account assets are recorded at fair value. Changes in the fair value of separate account assets are offset by changes in the related separate account liabilities. The Company receives investment management fees, mortality and expense risk fees, guarantee fees and cost of insurance charges from the related accounts. | ||
Included in separate account assets and liabilities is the value of the units in issue of the pooled pension funds that are offered by Threadneedle’s subsidiary, Threadneedle Pensions Limited. | ||
Restricted and Segregated Cash and Investments | ' | |
Restricted and Segregated Cash and Investments | ||
Total restricted cash at December 31, 2013 and 2012 was $27 million and $107 million, respectively, which cannot be utilized for operations. The Company’s restricted cash at December 31, 2013 and 2012 was primarily cash held by Threadneedle for regulatory purposes and cash that has been pledged to counterparties. At December 31, 2013 and 2012, amounts segregated under federal and other regulations were $2.3 billion and $2.4 billion, respectively, segregated in special reserve bank accounts for the exclusive benefit of the Company’s brokerage customers. | ||
Land, Buildings, Equipment and Software | ' | |
Land, Buildings, Equipment and Software | ||
Land, buildings, equipment and internally developed or purchased software are carried at cost less accumulated depreciation or amortization and are reflected within other assets. The Company generally uses the straight-line method of depreciation and amortization over periods ranging from three to 39 years. At December 31, 2013 and 2012, land, buildings, equipment and software were $705 million and $753 million, respectively, net of accumulated depreciation of $1.3 billion and $1.2 billion, respectively. Depreciation and amortization expense for the years ended December 31, 2013, 2012 and 2011 was $144 million, $152 million and $143 million, respectively. | ||
Goodwill and Other Intangible Assets | ' | |
Goodwill and Other Intangible Assets | ||
Goodwill represents the amount of an acquired company’s acquisition cost in excess of the fair value of assets acquired and liabilities assumed. The Company evaluates goodwill for impairment annually on the measurement date of July 1 and whenever events and circumstances indicate that an impairment may have occurred, such as a significant adverse change in the business climate or a decision to sell or dispose of a reporting unit. The Company assesses various qualitative factors to determine whether impairment is likely to have occurred. If impairment were to occur, the Company would use the discounted cash flow method, a variation of the income approach. | ||
Intangible assets are amortized over their estimated useful lives unless they are deemed to have indefinite useful lives. The Company evaluates the definite lived intangible assets remaining useful lives annually and tests for impairment whenever events and circumstances indicate that an impairment may have occurred, such as a significant adverse change in the business climate. For definite lived intangible assets, impairment to fair value is recognized if the carrying amount is not recoverable. Indefinite lived intangibles are also tested for impairment annually or whenever circumstances indicate an impairment may have occurred. | ||
Impairment is the amount carrying value exceeds fair value. | ||
Goodwill and other intangible assets are reflected in other assets. | ||
Derivative Instruments and Hedging Activities | ' | |
Derivative Instruments and Hedging Activities | ||
Freestanding derivative instruments are recorded at fair value and are reflected in other assets or other liabilities. The Company’s policy is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. The Company primarily uses derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. The Company occasionally designates derivatives as (i) hedges of changes in the fair value of assets, liabilities, or firm commitments (“fair value hedges”), (ii) hedges of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedges”), or (iii) hedges of foreign currency exposures of net investments in foreign operations (“net investment hedges in foreign operations”). | ||
Derivative instruments that are entered into for hedging purposes are designated as such at the time the Company enters into the contract. For all derivative instruments that are designated for hedging activities, the Company formally documents all of the hedging relationships between the hedge instruments and the hedged items at the inception of the relationships. Management also formally documents its risk management objectives and strategies for entering into the hedge transactions. The Company formally assesses, at inception and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of hedged items. If it is determined that a derivative is no longer highly effective as a hedge, the Company will discontinue the application of hedge accounting. | ||
For derivative instruments that do not qualify for hedge accounting or are not designated as accounting hedges, changes in fair value are recognized in current period earnings. Changes in fair value of derivatives are presented in the Consolidated Statements of Operations based on the nature and use of the instrument. Changes in fair value of derivatives used as economic hedges are presented in the Consolidated Statements of Operations with the corresponding change in the hedged asset or liability. | ||
For derivative instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as changes in the fair value of the hedged assets, liabilities or firm commitments, are recognized on a net basis in current period earnings. The carrying value of the hedged item is adjusted for the change in fair value from the designated hedged risk. If a fair value hedge designation is removed or the hedge is terminated prior to maturity, previous adjustments to the carrying value of the hedged item are recognized into earnings over the remaining life of the hedged item. | ||
For derivative instruments that qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is reported in accumulated other comprehensive income and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Operations with the hedged instrument or transaction impact. Any ineffective portion of the gain or loss is reported in current period earnings as a component of net investment income. If a hedge designation is removed or a hedge is terminated prior to maturity, the amount previously recorded in accumulated other comprehensive income is reclassified to earnings over the period that the hedged item impacts earnings. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in accumulated other comprehensive income are recognized in earnings immediately. | ||
For derivative instruments that qualify as net investment hedges in foreign operations, the effective portion of the change in fair value of the derivatives is recorded in accumulated other comprehensive income as part of the foreign currency translation adjustment. Any ineffective portion of the net investment hedges in foreign operations is recognized in net investment income during the period of change. | ||
The equity component of equity indexed annuity (“EIA”), indexed universal life (“IUL”) and stock market certificate obligations are considered embedded derivatives. Additionally, certain annuities contain GMAB and GMWB provisions. The GMAB and the non-life contingent benefits associated with GMWB provisions are also considered embedded derivatives. | ||
See Note 14 for information regarding the Company’s fair value measurement of derivative instruments and Note 16 for the impact of derivatives on the Consolidated Statements of Operations. | ||
Deferred Acquisition Costs | ' | |
Deferred Acquisition Costs | ||
The Company incurs costs in connection with acquiring new and renewal insurance and annuity businesses. The portion of these costs which are incremental and direct to the acquisition of a new or renewal insurance policy or annuity contract are deferred. Significant costs capitalized by the Company include sales based compensation related to the acquisition of new and renewal insurance policies and annuity contracts, medical inspection costs for successful sales, and a portion of employee compensation and benefit costs based upon the amount of time spent on successful sales. Sales based compensation paid to advisors and employees and third-party distributors is capitalized. Employee compensation and benefits costs which are capitalized relate primarily to sales efforts, underwriting and processing. All other costs which are not incremental direct costs of acquiring an insurance policy or annuity contract are expensed as incurred. The DAC associated with insurance policies or annuity contracts that are significantly modified or internally replaced with another contract are accounted for as contract terminations. These transactions are anticipated in establishing amortization periods and other valuation assumptions. | ||
Costs deferred as DAC are amortized over time. For annuity and universal life (“UL”) contracts, DAC are amortized based on projections of estimated gross profits over amortization periods equal to the approximate life of the business. For other insurance products, DAC are generally amortized as a percentage of premiums over amortization periods equal to the premium-paying period. For certain mutual fund products, DAC are generally amortized over fixed periods on a straight-line basis adjusted for redemptions. | ||
For annuity and UL insurance products, the assumptions made in projecting future results and calculating the DAC balance and DAC amortization expense are management’s best estimates. Management is required to update these assumptions whenever it appears that, based on actual experience or other evidence, earlier estimates should be revised. When assumptions are changed, the percentage of estimated gross profits used to amortize DAC might also change. A change in the required amortization percentage is applied retrospectively; an increase in amortization percentage will result in a decrease in the DAC balance and an increase in DAC amortization expense, while a decrease in amortization percentage will result in an increase in the DAC balance and a decrease in DAC amortization expense. The impact on results of operations of changing assumptions can be either positive or negative in any particular period and is reflected in the period in which such changes are made. | ||
For other life and health insurance products, the assumptions made in calculating the DAC balance and DAC amortization expense are consistent with those used in determining the liabilities and, therefore, are intended to provide for adverse deviations in experience and are revised only if management concludes experience will be so adverse that DAC are not recoverable. If management concludes that DAC are not recoverable, DAC are reduced to the amount that is recoverable based on best estimate assumptions and there is a corresponding expense recorded in the Consolidated Statements of Operations. | ||
For annuity, life and health insurance products, key assumptions underlying those long-term projections include interest rates (both earning rates on invested assets and rates credited to contractholder and policyholder accounts), equity market performance, mortality and morbidity rates and the rates at which contractholders and policyholders are expected to surrender their contracts, make withdrawals from their contracts and make additional deposits to their contracts. Assumptions about earned and credited interest rates are the primary factors used to project interest margins, while assumptions about equity and bond market performance are the primary factors used to project client asset value growth rates, and assumptions about surrenders, withdrawals and deposits comprise projected persistency rates. Management must also make assumptions to project maintenance expenses associated with servicing the Company’s annuity and insurance businesses during the DAC amortization period. | ||
The client asset value growth rates are the rates at which variable annuity and variable universal life (“VUL”) insurance contract values invested in separate accounts are assumed to appreciate in the future. The rates used vary by equity and fixed income investments. Management reviews and, where appropriate, adjusts its assumptions with respect to client asset value growth rates on a regular basis. The Company typically uses a five-year mean reversion process as a guideline in setting near-term equity fund growth rates based on a long-term view of financial market performance as well as recent actual performance. The suggested near-term equity fund growth rate is reviewed quarterly to ensure consistency with management’s assessment of anticipated equity market performance. DAC amortization expense recorded in a period when client asset value growth rates exceed management’s near-term estimate will typically be less than in a period when growth rates fall short of management’s near-term estimate. | ||
The Company monitors other principal DAC amortization assumptions, such as persistency, mortality, morbidity, interest margin and maintenance expense levels each quarter and, when assessed independently, each could impact the Company’s DAC balances. | ||
The analysis of DAC balances and the corresponding amortization is a dynamic process that considers all relevant factors and assumptions described previously. Unless the Company’s management identifies a significant deviation over the course of the quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year. | ||
Deferred Sales Inducement Costs | ' | |
Deferred Sales Inducement Costs | ||
Sales inducement costs consist of bonus interest credits and premium credits added to certain annuity contract and insurance policy values. These benefits are capitalized to the extent they are incremental to amounts that would be credited on similar contracts without the applicable feature. The amounts capitalized are amortized using the same methodology and assumptions used to amortize DAC. DSIC is recorded in other assets, and amortization of DSIC is recorded in benefits, claims, losses and settlement expenses. | ||
Reinsurance | ' | |
Reinsurance | ||
The Company cedes significant amounts of insurance risk to other insurers under reinsurance agreements. Reinsurance premiums paid and benefits received are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Reinsurance premiums for traditional life, long term care (“LTC”), disability income (“DI”) and auto and home, net of the change in any prepaid reinsurance asset, are reported as a reduction of premiums. Fixed and variable universal life reinsurance premiums are reported as a reduction of other revenues. In addition, for fixed and variable universal life insurance policies, the net cost of reinsurance ceded, which represents the discounted amount of the expected cash flows between the reinsurer and the Company, is recognized as an asset and amortized over the term of the reinsurance contract, in proportion to the estimated gross profits and is subject to retrospective adjustment in a manner similar to retrospective adjustment of DAC. The assumptions used to project the expected cash flows are consistent with those used for DAC valuation for the same contracts. Changes in the net cost of reinsurance are reflected as a component of other revenues. Reinsurance recoveries are reported as components of benefits, claims, losses and settlement expenses. | ||
Insurance liabilities are reported before the effects of reinsurance. Policyholder account balances, future policy benefits and claims recoverable under reinsurance contracts are recorded within receivables. | ||
The Company also assumes life insurance and fixed annuity risk from other insurers in limited circumstances. Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Liabilities for assumed business are recorded within policyholder account balances, future policy benefits and claims. | ||
See Note 7 for additional information on reinsurance. | ||
Policyholder Account Balances, Future Policy Benefits and Claims | ' | |
Policyholder Account Balances, Future Policy Benefits and Claims | ||
Fixed Annuities and Variable Annuity Guarantees | ||
Fixed annuities and variable annuity guarantees include amounts for fixed account values on fixed and variable deferred annuities, guaranteed benefits associated with variable annuities, equity indexed annuities and fixed annuities in a payout status. | ||
Liabilities for fixed account values on fixed and variable deferred annuities are equal to accumulation values, which are the cumulative gross deposits and credited interest less withdrawals and various charges. | ||
The majority of the variable annuity contracts offered by the Company contain guaranteed minimum death benefit (“GMDB”) provisions. When market values of the customer’s accounts decline, the death benefit payable on a contract with a GMDB may exceed the contract accumulation value. The Company also offers variable annuities with 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. In addition, the Company offers contracts containing GMWB and GMAB provisions, and until May 2007, the Company offered contracts containing guaranteed minimum income benefit (“GMIB”) provisions. | ||
In determining the liabilities for GMDB, GMIB and the life contingent benefits associated with GMWB, the Company projects these benefits and contract assessments using actuarial models to simulate various equity market scenarios. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency and investment margins and are consistent with those used for DAC valuation for the same contracts. As with DAC, management reviews and, where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year. | ||
The GMDB liability is determined by estimating the expected value of death benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated meaningful life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees). | ||
If elected by the contract owner and after a stipulated waiting period from contract issuance, a GMIB guarantees a minimum lifetime annuity based on a specified rate of contract accumulation value growth and predetermined annuity purchase rates. The GMIB liability is determined each period by estimating the expected value of annuitization benefits in excess of the projected contract accumulation value at the date of annuitization and recognizing the excess over the estimated meaningful life based on expected assessments. | ||
The fair value of embedded derivatives related to GMAB and the non-life contingent benefits associated with GMWB provisions fluctuates based on equity, interest rate and credit markets which can cause these embedded derivatives to be either an asset or a liability. These embedded derivatives are recorded in policyholder account balances, future policy benefits and claims. See Note 14 for information regarding the fair value measurement of embedded derivatives. The liability for the life contingent benefits associated with GMWB provisions is determined in the same way as the GMDB liability. Significant assumptions made in projecting future benefits and fees relate to persistency and benefit utilization. Management reviews, and where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year. The changes in both the fair values of the GMWB and GMAB embedded derivatives and the liability for life contingent benefits are reflected in benefits, claims, losses and settlement expenses. | ||
Liabilities for equity indexed annuities are equal to the host contract values covering guaranteed benefits and the fair value of embedded equity options. | ||
Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates. | ||
Life and Health Insurance | ||
Life and health insurance includes liabilities for fixed account values on fixed and variable universal life policies, liabilities for indexed accounts of IUL products, liabilities for unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that will become payable on term life, whole life and health insurance policies as claims are incurred in the future. | ||
Liabilities for fixed account values on fixed and variable universal life insurance are equal to accumulation values. Accumulation values are the cumulative gross deposits and credited interest less various contractual expense and mortality charges and less amounts withdrawn by policyholders. | ||
Liabilities for indexed accounts of IUL products are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options. | ||
A portion of the Company’s fixed and variable universal life policies have product features that result in profits followed by losses from the insurance component of the contract. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the contract. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. | ||
In determining the liability for contracts with profits followed by losses, the Company projects benefits and contract assessments using actuarial models. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency and investment margins and are consistent with those used for DAC valuation for the same contracts. As with DAC, management reviews, and where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year. | ||
The liability for these future losses is determined by estimating the death benefits in excess of account value and recognizing the excess over the estimated meaningful life based on expected assessments (e.g. cost of insurance charges, contractual administrative charges, similar fees and investment margin). See Note 10 for information regarding the liability for contracts with secondary guarantees. | ||
Liabilities for unpaid amounts on reported life insurance claims are equal to the death benefits payable under the policies. Liabilities for unpaid amounts on reported health insurance claims include any periodic or other benefit amounts due and accrued, along with estimates of the present value of obligations for continuing benefit payments. These amounts are calculated based on claim continuance tables which estimate the likelihood an individual will continue to be eligible for benefits. Present values are calculated at interest rates established when claims are incurred. Anticipated claim continuance rates are based on established industry tables, adjusted as appropriate for the Company’s experience. | ||
Liabilities for estimated benefits payable on claims that have been incurred but not yet reported are based on periodic analysis of the actual time lag between when a claim occurs and when it is reported. | ||
Liabilities for estimates of benefits that will become payable on future claims on term life, whole life and health insurance policies are based on the net level premium method, using anticipated premium payments, mortality and morbidity rates, policy persistency and interest rates earned on assets supporting the liability. Anticipated mortality and morbidity rates are based on established industry mortality and morbidity tables, with modifications based on the Company’s experience. Anticipated premium payments and persistency rates vary by policy form, issue age, policy duration and certain other pricing factors. | ||
Changes in policyholder account balances, future policy benefits and claims are reflected in earnings in the period adjustments are made. | ||
Where applicable, benefit amounts expected to be recoverable from reinsurance companies who share in the risk are separately recorded as reinsurance recoverable within receivables. | ||
Auto and Home Reserves | ||
Auto and home reserves include amounts determined from loss reports on individual claims, as well as amounts based on historical loss experience for losses incurred but not yet reported. Such liabilities are based on estimates and, while management believes that the reserve amounts were adequate at December 31, 2013 and 2012, the ultimate liability may be in excess of or less than the amounts provided. The Company’s methods for making such estimates and for establishing the resulting liabilities are continually reviewed, and any adjustments are reflected in earnings in the period such adjustments are made. | ||
Share-Based Compensation | ' | |
Share-Based Compensation | ||
The Company measures and recognizes the cost of share-based awards granted to employees and directors based on the grant-date fair value of the award and recognizes the expense on a straight-line basis over the vesting period. The fair value of each option is estimated on the grant date using a Black-Scholes option-pricing model. The Company recognizes the cost of share-based awards granted to independent contractors on a fair value basis until the award is fully vested. | ||
Income Taxes | ' | |
Income Taxes | ||
The Company’s provision for income taxes represents the net amount of income taxes that the Company expects to pay or to receive from various taxing jurisdictions in connection with its operations. The Company provides for income taxes based on amounts that the Company believes it will ultimately owe taking into account the recognition and measurement for uncertain tax positions. Inherent in the provision for income taxes are estimates and judgments regarding the tax treatment of certain items. | ||
In connection with the provision for income taxes, the Consolidated Financial Statements reflect certain amounts related to deferred tax assets and liabilities, which result from temporary differences between the assets and liabilities measured for financial statement purposes versus the assets and liabilities measured for tax return purposes. | ||
The Company is required to establish a valuation allowance for any portion of its deferred tax assets that management believes will not be realized. Significant judgment is required in determining if a valuation allowance should be established and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business including the ability to generate capital gains. Consideration is given to, among other things in making this determination: (i) future taxable income exclusive of reversing temporary differences and carryforwards; (ii) future reversals of existing taxable temporary differences; (iii) taxable income in prior carryback years; and (iv) tax planning strategies. Management may need to identify and implement appropriate planning strategies to ensure its ability to realize deferred tax assets and avoid the establishment of a valuation allowance with respect to such assets. In the opinion of management, it is currently more likely than not that the Company will not realize the full benefit of certain state deferred tax assets, primarily state net operating losses, and therefore a valuation allowance of $19 million has been established at December 31, 2013. | ||
Sources of Revenue | ' | |
Sources of Revenue | ||
The Company generates revenue from a wide range of investment and insurance products. Principal sources of revenue include management and financial advice fees, distribution fees, net investment income and premiums. | ||
Management and Financial Advice Fees | ||
Management and financial advice fees relate primarily to fees earned from managing mutual funds, separate account and wrap account assets and institutional investments, as well as fees earned from providing financial advice and administrative services (including transfer agent, administration and custodial fees earned from providing services to retail mutual funds). Management and financial advice fees also include mortality and expense risk fees earned on separate account assets. | ||
The Company’s management fees are generally accrued daily and collected monthly. A significant portion of the Company’s management fees are calculated as a percentage of the fair value of its managed assets. A large majority of the Company’s managed assets are valued by third party pricing services vendors based upon observable market data. The selection of the Company’s third party pricing services vendors and the reliability of their prices are subject to certain governance procedures, such as exception reporting, subsequent transaction testing, and annual due diligence of the Company’s vendors, which includes assessing the vendor’s valuation qualifications, control environment, analysis of asset-class specific valuation methodologies and understanding of sources of market observable assumptions. | ||
The Company may receive performance-based incentive fees from hedge funds, Threadneedle Open Ended Investment Companies or other structured investments that it manages. The annual performance fees for structured investments are recognized as revenue at the time the performance fee is finalized or no longer subject to adjustment. All other performance fees are based on a full contract year and are final at the end of the contract year. Any performance fees received are not subject to repayment or any other clawback provisions. | ||
Employee benefit plan and institutional investment management and administration services fees are negotiated and are also generally based on underlying asset values. Fees from financial planning and advice services are recognized when the financial plan is delivered. | ||
Distribution Fees | ||
Distribution fees primarily include point-of-sale fees (such as mutual fund front-end sales loads) and asset-based fees (such as 12b-1 distribution and shareholder service fees) that are generally based on a contractual percentage of assets and recognized when earned. Distribution fees also include amounts received under marketing support arrangements for sales of mutual funds and other companies’ products, such as through the Company’s wrap accounts, as well as surrender charges on fixed and variable universal life insurance and annuities, which are recognized when assessed. | ||
Net Investment Income | ||
Net investment income primarily includes interest income on fixed maturity securities classified as Available-for-Sale, mortgage loans, policy and certificate loans, other investments, cash and cash equivalents and investments of consolidated investment entities; the changes in fair value of trading securities, certain derivatives and certain assets and liabilities of consolidated investment entities; the pro rata share of net income or loss on equity method investments; and realized gains and losses on the sale of securities and charges for other-than-temporary impairments of investments related to credit losses. Interest income is accrued as earned using the effective interest method, which makes an adjustment of the yield for security premiums and discounts on all performing fixed maturity securities classified as Available-for-Sale so that the related security or loan recognizes a constant rate of return on the outstanding balance throughout its term. Realized gains and losses on securities, other than trading securities and equity method investments, are recognized using the specific identification method on a trade date basis. | ||
Premiums | ||
Premiums include premiums on auto and home insurance, traditional life and health (DI and LTC) insurance and immediate annuities with a life contingent feature. Premiums on auto and home insurance are net of reinsurance premiums and are recognized ratably over the coverage period. Premiums on traditional life, health insurance and immediate annuities with a life contingent feature are net of reinsurance ceded and are recognized as revenue when due. |
Consolidated_Investment_Entiti1
Consolidated Investment Entities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Consolidated Investment Entities. | ' | ||||||||||||||||||||||||
Schedule of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis | ' | ||||||||||||||||||||||||
The following tables present the balances of assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis: | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash equivalents | $ | 12 | $ | 1,841 | $ | — | $ | 1,853 | |||||||||||||||||
Available-for-Sale securities: | |||||||||||||||||||||||||
Corporate debt securities | — | 15,826 | 1,640 | 17,466 | |||||||||||||||||||||
Residential mortgage backed securities | — | 5,937 | 187 | 6,124 | |||||||||||||||||||||
Commercial mortgage backed securities | — | 2,711 | 30 | 2,741 | |||||||||||||||||||||
Asset backed securities | — | 1,244 | 260 | 1,504 | |||||||||||||||||||||
State and municipal obligations | — | 2,160 | — | 2,160 | |||||||||||||||||||||
U.S. government and agencies obligations | 17 | 35 | — | 52 | |||||||||||||||||||||
Foreign government bonds and obligations | — | 245 | — | 245 | |||||||||||||||||||||
Common stocks | 5 | 7 | 6 | 18 | |||||||||||||||||||||
Total Available-for-Sale securities | 22 | 28,165 | 2,123 | 30,310 | |||||||||||||||||||||
Trading securities | 3 | 32 | 2 | 37 | |||||||||||||||||||||
Separate account assets | — | 81,223 | — | 81,223 | |||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||
Interest rate derivative contracts | — | 1,570 | — | 1,570 | |||||||||||||||||||||
Equity derivative contracts | 265 | 1,576 | — | 1,841 | |||||||||||||||||||||
Credit derivative contracts | — | 3 | — | 3 | |||||||||||||||||||||
Foreign currency derivative contracts | 2 | 2 | — | 4 | |||||||||||||||||||||
Total other assets | 267 | 3,151 | — | 3,418 | |||||||||||||||||||||
Total assets at fair value | $ | 304 | $ | 114,412 | $ | 2,125 | $ | 116,841 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Policyholder account balances, future policy benefits and claims: | |||||||||||||||||||||||||
EIA embedded derivatives | $ | — | $ | 5 | $ | — | $ | 5 | |||||||||||||||||
IUL embedded derivatives | — | — | 125 | 125 | |||||||||||||||||||||
GMWB and GMAB embedded derivatives | — | — | (575 | ) | (575 | ) | (2) | ||||||||||||||||||
Total policyholder account balances, future policy benefits and claims | — | 5 | (450 | ) | (445 | ) | (1) | ||||||||||||||||||
Customer deposits | — | 7 | — | 7 | |||||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||||
Interest rate derivative contracts | — | 1,693 | — | 1,693 | |||||||||||||||||||||
Equity derivative contracts | 550 | 2,565 | — | 3,115 | |||||||||||||||||||||
Other | — | 12 | — | 12 | |||||||||||||||||||||
Total other liabilities | 550 | 4,270 | — | 4,820 | |||||||||||||||||||||
Total liabilities at fair value | $ | 550 | $ | 4,282 | $ | (450 | ) | $ | 4,382 | ||||||||||||||||
(1) The Company’s adjustment for nonperformance risk resulted in a $150 million cumulative decrease to the embedded derivatives. | |||||||||||||||||||||||||
(2) The fair value of the GMWB and GMAB embedded derivatives was a net asset at December 31, 2013 and the amount is reported as a contra liability. | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash equivalents | $ | 18 | $ | 1,539 | $ | — | $ | 1,557 | |||||||||||||||||
Available-for-Sale securities: | |||||||||||||||||||||||||
Corporate debt securities | — | 17,051 | 1,764 | 18,815 | |||||||||||||||||||||
Residential mortgage backed securities | — | 5,145 | 284 | 5,429 | |||||||||||||||||||||
Commercial mortgage backed securities | — | 3,213 | 206 | 3,419 | |||||||||||||||||||||
Asset backed securities | — | 1,097 | 178 | 1,275 | |||||||||||||||||||||
State and municipal obligations | — | 2,239 | — | 2,239 | |||||||||||||||||||||
U.S. government and agencies obligations | 19 | 39 | — | 58 | |||||||||||||||||||||
Foreign government bonds and obligations | — | 224 | — | 224 | |||||||||||||||||||||
Common stocks | 3 | 4 | 6 | 13 | |||||||||||||||||||||
Other debt obligations | — | — | — | — | |||||||||||||||||||||
Total Available-for-Sale securities | 22 | 29,012 | 2,438 | 31,472 | |||||||||||||||||||||
Trading securities | 1 | 24 | — | 25 | |||||||||||||||||||||
Separate account assets | — | 72,397 | — | 72,397 | |||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||
Interest rate derivative contracts | — | 2,358 | — | 2,358 | |||||||||||||||||||||
Equity derivative contracts | 285 | 973 | — | 1,258 | |||||||||||||||||||||
Credit derivative contracts | — | — | — | — | |||||||||||||||||||||
Foreign currency derivative contracts | — | 6 | — | 6 | |||||||||||||||||||||
Commodity derivative contracts | — | 1 | — | 1 | |||||||||||||||||||||
Total other assets | 285 | 3,338 | — | 3,623 | |||||||||||||||||||||
Total assets at fair value | $ | 326 | $ | 106,310 | $ | 2,438 | $ | 109,074 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Policyholder account balances, future policy benefits and claims: | |||||||||||||||||||||||||
EIA embedded derivatives | $ | — | $ | 2 | $ | — | $ | 2 | |||||||||||||||||
IUL embedded derivatives | — | — | 45 | 45 | |||||||||||||||||||||
GMWB and GMAB embedded derivatives | — | — | 833 | 833 | |||||||||||||||||||||
Total policyholder account balances, future policy benefits and claims | — | 2 | 878 | 880 | (1) | ||||||||||||||||||||
Customer deposits | — | 8 | — | 8 | |||||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||||
Interest rate derivative contracts | — | 1,486 | — | 1,486 | |||||||||||||||||||||
Equity derivative contracts | 258 | 1,565 | — | 1,823 | |||||||||||||||||||||
Foreign currency derivative contracts | 1 | — | — | 1 | |||||||||||||||||||||
Other | 1 | 3 | — | 4 | |||||||||||||||||||||
Total other liabilities | 260 | 3,054 | — | 3,314 | |||||||||||||||||||||
Total liabilities at fair value | $ | 260 | $ | 3,064 | $ | 878 | $ | 4,202 | |||||||||||||||||
(1) The Company’s adjustment for nonperformance risk resulted in a $398 million cumulative decrease to the embedded derivatives. | |||||||||||||||||||||||||
Schedule of debt of the consolidated investment entities and the stated interest rates | ' | ||||||||||||||||||||||||
The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows: | |||||||||||||||||||||||||
Outstanding Balance | Stated Interest Rate | ||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Long-term debt: | |||||||||||||||||||||||||
Senior notes due 2015 | $ | 366 | (1) | $ | 750 | (1) | 5.7 | % | 5.7 | % | |||||||||||||||
Senior notes due 2019 | 327 | (1) | 347 | (1) | 7.3 | 7.3 | |||||||||||||||||||
Senior notes due 2020 | 783 | (1) | 812 | (1) | 5.3 | 5.3 | |||||||||||||||||||
Senior notes due 2023 | 750 | — | 4 | — | |||||||||||||||||||||
Senior notes due 2039 | 200 | 200 | 7.8 | 7.8 | |||||||||||||||||||||
Junior subordinated notes due 2066 | 294 | 294 | 7.5 | 7.5 | |||||||||||||||||||||
Total long-term debt | 2,720 | 2,403 | |||||||||||||||||||||||
Short-term borrowings: | |||||||||||||||||||||||||
Federal Home Loan Bank (“FHLB”) advances | 450 | — | 0.3 | — | |||||||||||||||||||||
Repurchase agreements | 50 | 501 | 0.3 | 0.4 | |||||||||||||||||||||
Total short-term borrowings | 500 | 501 | |||||||||||||||||||||||
Total | $ | 3,220 | $ | 2,904 | |||||||||||||||||||||
(1) Amounts include adjustments for fair value hedges on the Company’s long-term debt. See Note 16 for information on the Company’s fair value hedges. | |||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | ' | ||||||||||||||||||||||||
At December 31, 2013, future maturities of Ameriprise Financial long-term debt were as follows: | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
2014 | $ | — | |||||||||||||||||||||||
2015 | 350 | ||||||||||||||||||||||||
2016 | — | ||||||||||||||||||||||||
2017 | — | ||||||||||||||||||||||||
2018 | — | ||||||||||||||||||||||||
Thereafter | 2,294 | ||||||||||||||||||||||||
Total future maturities | $ | 2,644 | |||||||||||||||||||||||
Consolidated Investment Entities | ' | ||||||||||||||||||||||||
Consolidated Investment Entities. | ' | ||||||||||||||||||||||||
Schedule of assets and liabilities held by consolidated investment entities 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: | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||
Corporate debt securities | $ | — | $ | 200 | $ | 2 | $ | 202 | |||||||||||||||||
Common stocks | 147 | 31 | 14 | 192 | |||||||||||||||||||||
Other investments | 3 | 33 | — | 36 | |||||||||||||||||||||
Syndicated loans | — | 4,204 | 368 | 4,572 | |||||||||||||||||||||
Total investments | 150 | 4,468 | 384 | 5,002 | |||||||||||||||||||||
Receivables | — | 32 | — | 32 | |||||||||||||||||||||
Other assets | — | 13 | 1,936 | 1,949 | |||||||||||||||||||||
Total assets at fair value | $ | 150 | $ | 4,513 | $ | 2,320 | $ | 6,983 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Debt | $ | — | $ | — | $ | 4,804 | $ | 4,804 | |||||||||||||||||
Other liabilities | — | 193 | — | 193 | |||||||||||||||||||||
Total liabilities at fair value | $ | — | $ | 193 | $ | 4,804 | $ | 4,997 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||
Corporate debt securities | $ | — | $ | 251 | $ | 3 | $ | 254 | |||||||||||||||||
Common stocks | 91 | 32 | 14 | 137 | |||||||||||||||||||||
Other investments | — | 57 | — | 57 | |||||||||||||||||||||
Syndicated loans | — | 3,720 | 202 | 3,922 | |||||||||||||||||||||
Total investments | 91 | 4,060 | 219 | 4,370 | |||||||||||||||||||||
Receivables | — | 77 | — | 77 | |||||||||||||||||||||
Other assets | — | 2 | 1,214 | 1,216 | |||||||||||||||||||||
Total assets at fair value | $ | 91 | $ | 4,139 | $ | 1,433 | $ | 5,663 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Debt | $ | — | $ | — | $ | 4,450 | $ | 4,450 | |||||||||||||||||
Other liabilities | — | 166 | — | 166 | |||||||||||||||||||||
Total liabilities at fair value | $ | — | $ | 166 | $ | 4,450 | $ | 4,616 | |||||||||||||||||
Schedule of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis | ' | ||||||||||||||||||||||||
The following tables provide a summary of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis: | |||||||||||||||||||||||||
Corporate Debt Securities | Common Stocks | Syndicated Loans | Other Assets | Debt | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Balance, January 1, 2013 | $ | 3 | $ | 14 | $ | 202 | $ | 1,214 | $ | (4,450 | ) | ||||||||||||||
Total gains (losses) included in: | |||||||||||||||||||||||||
Net income | — | 1 | (1) | (1 | ) | (1) | 81 | (2) | (53 | ) | (1) | ||||||||||||||
Other comprehensive income (loss) | — | — | — | 39 | — | ||||||||||||||||||||
Purchases | 1 | — | 417 | 689 | — | ||||||||||||||||||||
Sales | (1 | ) | (3 | ) | (63 | ) | (86 | ) | — | ||||||||||||||||
Issues | — | — | — | — | (1,330 | ) | |||||||||||||||||||
Settlements | (1 | ) | — | (51 | ) | — | 1,029 | ||||||||||||||||||
Transfers into Level 3 | — | 21 | 320 | 8 | — | ||||||||||||||||||||
Transfers out of Level 3 | — | (19 | ) | (456 | ) | (9 | ) | — | |||||||||||||||||
Balance, December 31, 2013 | $ | 2 | $ | 14 | $ | 368 | $ | 1,936 | $ | (4,804 | ) | ||||||||||||||
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at December 31, 2013 | $ | — | $ | (2 | ) | (1) | $ | (2 | ) | (1) | $ | 67 | (2) | $ | (25 | ) | (1) | ||||||||
(1) Included in net investment income in the Consolidated Statements of Operations. | |||||||||||||||||||||||||
(2) Included in other revenues in the Consolidated Statements of Operations. | |||||||||||||||||||||||||
Corporate Debt Securities | Common Stocks | Syndicated Loans | Other Assets | Debt | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Balance, January 1, 2012 | $ | 4 | $ | 13 | $ | 342 | $ | 1,108 | $ | (4,712 | ) | ||||||||||||||
Total gains (losses) included in: | |||||||||||||||||||||||||
Net income | — | (1 | ) | (1) | 11 | (1) | (78 | ) | (2) | (316 | ) | (1) | |||||||||||||
Other comprehensive income (loss) | — | — | — | 28 | — | ||||||||||||||||||||
Purchases | — | 7 | 91 | 328 | — | ||||||||||||||||||||
Sales | — | (5 | ) | (14 | ) | (172 | ) | — | |||||||||||||||||
Issues | — | — | — | — | — | ||||||||||||||||||||
Settlements | (1 | ) | — | (87 | ) | — | 578 | ||||||||||||||||||
Transfers into Level 3 | — | 15 | 255 | — | — | ||||||||||||||||||||
Transfers out of Level 3 | — | (15 | ) | (396 | ) | — | — | ||||||||||||||||||
Balance, December 31, 2012 | $ | 3 | $ | 14 | $ | 202 | $ | 1,214 | $ | (4,450 | ) | ||||||||||||||
Changes in unrealized losses included in income relating to assets and liabilities held at December 31, 2012 | $ | — | $ | — | $ | — | $ | (98 | ) | (2) | $ | (315 | ) | (1) | |||||||||||
(1) Included in net investment income in the Consolidated Statements of Operations. | |||||||||||||||||||||||||
(2) Included in other revenues in the Consolidated Statements of Operations. | |||||||||||||||||||||||||
Corporate Debt Securities | Common Stocks | Other Investments | Syndicated Loans | Other Assets | Debt | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Balance, January 1, 2011 | $ | 6 | $ | 11 | $ | 22 | $ | — | $ | 887 | $ | (5,171 | ) | ||||||||||||
Total gains (losses) included in: | |||||||||||||||||||||||||
Net income | — | 6 | (1) | (1 | ) | (1) | (12 | ) | (1) | 13 | (2) | (89 | ) | (1) | |||||||||||
Other comprehensive income (loss) | — | — | — | — | (10 | ) | — | ||||||||||||||||||
Purchases | 3 | — | 3 | 208 | 299 | — | |||||||||||||||||||
Sales | (2 | ) | (4 | ) | — | (40 | ) | (81 | ) | — | |||||||||||||||
Issues | — | — | — | — | — | (27 | ) | ||||||||||||||||||
Settlements | (1 | ) | — | — | (137 | ) | 1 | 575 | |||||||||||||||||
Transfers into Level 3 | — | 29 | — | 615 | 7 | — | |||||||||||||||||||
Transfers out of Level 3 | (2 | ) | (29 | ) | (24 | ) | (292 | ) | (8 | ) | — | ||||||||||||||
Balance, December 31, 2011 | $ | 4 | $ | 13 | $ | — | $ | 342 | $ | 1,108 | $ | (4,712 | ) | ||||||||||||
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at December 31, 2011 | $ | — | $ | 3 | (1) | $ | — | $ | (5 | ) | (1) | $ | 19 | (3) | $ | (64 | ) | (1) | |||||||
Significant unobservable inputs used in the fair value measurements of assets and liabilities held by consolidated investment entities | ' | ||||||||||||||||||||||||
he 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 held by consolidated investment entities: | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range | Weighted Average | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Other assets | $ | 1,936 | Discounted cash flow/ market comparables | Equivalent yield | 4.4 | % | – | 12.40% | 7.4 | % | |||||||||||||||
Expected rental value (per square foot) | $5 | – | $373 | $33 | |||||||||||||||||||||
Debt | $ | 4,804 | Discounted cash flow | Annual default rate | 2.5 | % | – | 2.50% | 2.5 | % | |||||||||||||||
Discount rate | 1.5 | % | – | 8.30% | 2.7 | % | |||||||||||||||||||
Constant prepayment rate | 5 | % | – | 10.00% | 9.8 | % | |||||||||||||||||||
Loss recovery | 36.4 | % | – | 63.60% | 62.3 | % | |||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range | Weighted Average | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Other assets | $ | 1,214 | Discounted cash flow/ market comparables | Equivalent yield | 4.1 | % | – | 12.90% | 7.2 | % | |||||||||||||||
Expected rental value (per square foot) | $4 | – | $309 | $32 | |||||||||||||||||||||
Debt | $ | 4,450 | Discounted cash flow | Annual default rate | 2.5 | % | – | 4.50% | 2.5 | % | |||||||||||||||
Discount rate | 1.6 | % | – | 30.00% | 2.9 | % | |||||||||||||||||||
Constant prepayment rate | 5 | % | – | 10.00% | 9.6 | % | |||||||||||||||||||
Loss recovery | 36.4 | % | – | 63.60% | 62 | % | |||||||||||||||||||
Schedule of fair value and unpaid principal balance of assets and liabilities carried at fair value under the fair value option | ' | ||||||||||||||||||||||||
The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Syndicated loans | |||||||||||||||||||||||||
Unpaid principal balance | $ | 4,628 | $ | 4,023 | |||||||||||||||||||||
Excess unpaid principal over fair value | (56 | ) | (101 | ) | |||||||||||||||||||||
Fair value | $ | 4,572 | $ | 3,922 | |||||||||||||||||||||
Fair value of loans more than 90 days past due | $ | 23 | $ | 34 | |||||||||||||||||||||
Fair value of loans in nonaccrual status | 23 | 34 | |||||||||||||||||||||||
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both | 33 | 38 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||||
Unpaid principal balance | $ | 5,032 | $ | 4,757 | |||||||||||||||||||||
Excess unpaid principal over fair value | (228 | ) | (307 | ) | |||||||||||||||||||||
Fair value | $ | 4,804 | $ | 4,450 | |||||||||||||||||||||
Schedule of debt of the consolidated investment entities and the stated interest rates | ' | ||||||||||||||||||||||||
Debt of the consolidated investment entities and the stated interest rates were as follows: | |||||||||||||||||||||||||
Carrying Value | Weighted Average Interest Rate | ||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Debt of consolidated CDOs due 2016-2025 | $ | 4,804 | $ | 4,450 | 1 | % | 0.9 | % | |||||||||||||||||
Floating rate revolving credit borrowings due 2014 | 305 | 309 | 2.6 | 2.6 | |||||||||||||||||||||
Floating rate revolving credit borrowings due 2015 | 97 | 104 | 2.4 | 2.4 | |||||||||||||||||||||
Floating rate revolving credit borrowings due 2017 | 120 | 118 | 4.5 | 4.5 | |||||||||||||||||||||
Floating rate revolving credit borrowings due 2018 | 377 | — | 3.5 | — | |||||||||||||||||||||
Floating rate revolving credit borrowings due 2019 | 33 | — | 3 | — | |||||||||||||||||||||
Total | $ | 5,736 | $ | 4,981 | |||||||||||||||||||||
Schedule of Maturities of Long-term Debt | ' | ||||||||||||||||||||||||
At December 31, 2013, future maturities of debt were as follows: | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
2014 | $ | 305 | |||||||||||||||||||||||
2015 | 97 | ||||||||||||||||||||||||
2016 | 20 | ||||||||||||||||||||||||
2017 | 708 | ||||||||||||||||||||||||
2018 | 377 | ||||||||||||||||||||||||
Thereafter | 4,457 | ||||||||||||||||||||||||
Total future maturities | $ | 5,964 | |||||||||||||||||||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||||||||
Summary of Investments | ' | |||||||||||||||||||||||||||||||||
The following is a summary of Ameriprise Financial investments: | ||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Available-for-Sale securities, at fair value | $ | 30,310 | $ | 31,472 | ||||||||||||||||||||||||||||||
Mortgage loans, net | 3,510 | 3,609 | ||||||||||||||||||||||||||||||||
Policy and certificate loans | 774 | 754 | ||||||||||||||||||||||||||||||||
Other investments | 1,141 | 1,042 | ||||||||||||||||||||||||||||||||
Total | $ | 35,735 | $ | 36,877 | ||||||||||||||||||||||||||||||
Summary of net investment income | ' | |||||||||||||||||||||||||||||||||
The following is a summary of net investment income: | ||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Investment income on fixed maturities | $ | 1,575 | $ | 1,768 | $ | 1,917 | ||||||||||||||||||||||||||||
Net realized gains | 7 | 7 | 6 | |||||||||||||||||||||||||||||||
Affordable housing partnerships | (12 | ) | (25 | ) | (32 | ) | ||||||||||||||||||||||||||||
Other | 99 | 73 | 64 | |||||||||||||||||||||||||||||||
Consolidated investment entities | 220 | 110 | 91 | |||||||||||||||||||||||||||||||
Total net investment income | $ | 1,889 | $ | 1,933 | $ | 2,046 | ||||||||||||||||||||||||||||
Available-for-Sale Securities Disclosure | ' | |||||||||||||||||||||||||||||||||
Available-for-Sale securities distributed by type were as follows: | ||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||
Description of Securities | Amortized | Gross | Gross | Fair Value | Noncredit | |||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | OTTI (1) | |||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 16,233 | $ | 1,330 | $ | (97 | ) | $ | 17,466 | $ | 3 | |||||||||||||||||||||||
Residential mortgage backed securities | 6,114 | 147 | (137 | ) | 6,124 | (33 | ) | |||||||||||||||||||||||||||
Commercial mortgage backed securities | 2,612 | 141 | (12 | ) | 2,741 | — | ||||||||||||||||||||||||||||
Asset backed securities | 1,459 | 53 | (8 | ) | 1,504 | — | ||||||||||||||||||||||||||||
State and municipal obligations | 2,132 | 106 | (78 | ) | 2,160 | — | ||||||||||||||||||||||||||||
U.S. government and agencies obligations | 47 | 5 | — | 52 | — | |||||||||||||||||||||||||||||
Foreign government bonds and obligations | 235 | 18 | (8 | ) | 245 | — | ||||||||||||||||||||||||||||
Common stocks | 7 | 11 | — | 18 | 4 | |||||||||||||||||||||||||||||
Total | $ | 28,839 | $ | 1,811 | $ | (340 | ) | $ | 30,310 | $ | (26 | ) | ||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||||
Description of Securities | Amortized | Gross | Gross | Fair Value | Noncredit | |||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | OTTI (1) | |||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 16,628 | $ | 2,196 | $ | (9 | ) | $ | 18,815 | $ | — | |||||||||||||||||||||||
Residential mortgage backed securities | 5,280 | 261 | (112 | ) | 5,429 | (58 | ) | |||||||||||||||||||||||||||
Commercial mortgage backed securities | 3,120 | 299 | — | 3,419 | — | |||||||||||||||||||||||||||||
Asset backed securities | 1,204 | 75 | (4 | ) | 1,275 | — | ||||||||||||||||||||||||||||
State and municipal obligations | 2,034 | 241 | (36 | ) | 2,239 | — | ||||||||||||||||||||||||||||
U.S. government and agencies obligations | 49 | 9 | — | 58 | — | |||||||||||||||||||||||||||||
Foreign government bonds and obligations | 188 | 36 | — | 224 | — | |||||||||||||||||||||||||||||
Common stocks | 7 | 6 | — | 13 | 2 | |||||||||||||||||||||||||||||
Total | $ | 28,510 | $ | 3,123 | $ | (161 | ) | $ | 31,472 | $ | (56 | ) | ||||||||||||||||||||||
(1) Represents the amount of other-than-temporary impairment (“OTTI”) losses in accumulated other comprehensive income. Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period. | ||||||||||||||||||||||||||||||||||
Investments with Fixed Maturities Disclosure | ' | |||||||||||||||||||||||||||||||||
A summary of fixed maturity securities by rating was as follows: | ||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||||
Ratings | Amortized | Fair Value | Percent of | Amortized | Fair Value | Percent of | ||||||||||||||||||||||||||||
Cost | Total Fair | Cost | Total Fair | |||||||||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||||||||||||||
AAA | $ | 7,562 | $ | 7,746 | 25 | % | $ | 7,462 | $ | 8,021 | 26 | % | ||||||||||||||||||||||
AA | 1,587 | 1,707 | 6 | 1,620 | 1,827 | 6 | ||||||||||||||||||||||||||||
A | 6,381 | 6,738 | 22 | 5,456 | 6,069 | 19 | ||||||||||||||||||||||||||||
BBB | 11,427 | 12,272 | 41 | 11,939 | 13,575 | 43 | ||||||||||||||||||||||||||||
Below investment grade | 1,875 | 1,829 | 6 | 2,026 | 1,967 | 6 | ||||||||||||||||||||||||||||
Total fixed maturities | $ | 28,832 | $ | 30,292 | 100 | % | $ | 28,503 | $ | 31,459 | 100 | % | ||||||||||||||||||||||
Available-for-Sale Securities Continuous Unrealized Loss Disclosure | ' | |||||||||||||||||||||||||||||||||
The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position: | ||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||||||||
Description of Securities | Number of | Fair | Unrealized | Number of | Fair | Unrealized | Number of | Fair | Unrealized | |||||||||||||||||||||||||
Securities | Value | Losses | Securities | Value | Losses | Securities | Value | Losses | ||||||||||||||||||||||||||
(in millions, except number of securities) | ||||||||||||||||||||||||||||||||||
Corporate debt securities | 181 | $ | 2,817 | $ | (83 | ) | 12 | $ | 181 | $ | (14 | ) | 193 | $ | 2,998 | $ | (97 | ) | ||||||||||||||||
Residential mortgage backed securities | 128 | 2,393 | (66 | ) | 113 | 663 | (71 | ) | 241 | 3,056 | (137 | ) | ||||||||||||||||||||||
Commercial mortgage backed securities | 35 | 426 | (10 | ) | 4 | 22 | (2 | ) | 39 | 448 | (12 | ) | ||||||||||||||||||||||
Asset backed securities | 40 | 531 | (7 | ) | 4 | 32 | (1 | ) | 44 | 563 | (8 | ) | ||||||||||||||||||||||
State and municipal obligations | 169 | 468 | (36 | ) | 14 | 117 | (42 | ) | 183 | 585 | (78 | ) | ||||||||||||||||||||||
Foreign government bonds and obligations | 23 | 77 | (8 | ) | — | — | — | 23 | 77 | (8 | ) | |||||||||||||||||||||||
Total | 576 | $ | 6,712 | $ | (210 | ) | 147 | $ | 1,015 | $ | (130 | ) | 723 | $ | 7,727 | $ | (340 | ) | ||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||||||||
Description of Securities | Number of | Fair | Unrealized | Number of | Fair | Unrealized | Number of | Fair | Unrealized | |||||||||||||||||||||||||
Securities | Value | Losses | Securities | Value | Losses | Securities | Value | Losses | ||||||||||||||||||||||||||
(in millions, except number of securities) | ||||||||||||||||||||||||||||||||||
Corporate debt securities | 76 | $ | 801 | $ | (6 | ) | 6 | $ | 70 | $ | (3 | ) | 82 | $ | 871 | $ | (9 | ) | ||||||||||||||||
Residential mortgage backed securities | 22 | 408 | (5 | ) | 134 | 658 | (107 | ) | 156 | 1,066 | (112 | ) | ||||||||||||||||||||||
Asset backed securities | 9 | 108 | (1 | ) | 5 | 86 | (3 | ) | 14 | 194 | (4 | ) | ||||||||||||||||||||||
State and municipal obligations | 13 | 34 | (1 | ) | 8 | 113 | (35 | ) | 21 | 147 | (36 | ) | ||||||||||||||||||||||
Total | 120 | $ | 1,351 | $ | (13 | ) | 153 | $ | 927 | $ | (148 | ) | 273 | $ | 2,278 | $ | (161 | ) | ||||||||||||||||
Credit Losses on Available-for-Sale Securities Disclosure | ' | |||||||||||||||||||||||||||||||||
The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Operations for other-than-temporary impairments related to credit losses on securities for which a portion of the securities’ total other-than-temporary impairments was recognized in other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Beginning balance | $ | 176 | $ | 303 | $ | 297 | ||||||||||||||||||||||||||||
Credit losses for which an other-than-temporary impairment was not previously recognized | 2 | 2 | 15 | |||||||||||||||||||||||||||||||
Credit losses for which an other-than-temporary impairment was previously recognized | 7 | 32 | 19 | |||||||||||||||||||||||||||||||
Reductions for securities sold during the period (realized) | (38 | ) | (161 | ) | (28 | ) | ||||||||||||||||||||||||||||
Ending balance | $ | 147 | $ | 176 | $ | 303 | ||||||||||||||||||||||||||||
Other Comprehensive Income Available-for-Sale Securities Disclosure | ' | |||||||||||||||||||||||||||||||||
The following table presents a rollforward of the net unrealized securities gains on Available-for-Sale securities included in accumulated other comprehensive income: | ||||||||||||||||||||||||||||||||||
Net Unrealized | Deferred | Accumulated Other | ||||||||||||||||||||||||||||||||
Securities | Income Tax | Comprehensive | ||||||||||||||||||||||||||||||||
Gains | Income Related | |||||||||||||||||||||||||||||||||
to Net Unrealized | ||||||||||||||||||||||||||||||||||
Securities Gains | ||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Balance at January 1, 2011 | $ | 1,077 | $ | (377 | ) | $ | 700 | |||||||||||||||||||||||||||
Net unrealized securities gains arising during the period (1) | 572 | (196 | ) | 376 | ||||||||||||||||||||||||||||||
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables | (299 | ) | 106 | (193 | ) | |||||||||||||||||||||||||||||
Balance at December 31, 2011 | 1,350 | (467 | ) | 883 | (2) | |||||||||||||||||||||||||||||
Net unrealized securities gains arising during the period (1) | 911 | (323 | ) | 588 | ||||||||||||||||||||||||||||||
Reclassification of net securities gains included in net income | (7 | ) | 2 | (5 | ) | |||||||||||||||||||||||||||||
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables | (237 | ) | 83 | (154 | ) | |||||||||||||||||||||||||||||
Balance at December 31, 2012 | 2,017 | (705 | ) | 1,312 | (2) | |||||||||||||||||||||||||||||
Net unrealized securities losses arising during the period (1) | (1,484 | ) | 513 | (971 | ) | |||||||||||||||||||||||||||||
Reclassification of net securities gains included in net income | (7 | ) | 2 | (5 | ) | |||||||||||||||||||||||||||||
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables | 490 | (171 | ) | 319 | ||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 1,016 | $ | (361 | ) | $ | 655 | (2) | ||||||||||||||||||||||||||
(1) Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period. | ||||||||||||||||||||||||||||||||||
(2) Includes $4 million, $18 million and $75 million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||||||||||||
Available-for-Sale Securities Recognized in Earnings Disclosure | ' | |||||||||||||||||||||||||||||||||
Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in earnings were as follows: | ||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Gross realized gains | $ | 17 | $ | 109 | $ | 52 | ||||||||||||||||||||||||||||
Gross realized losses | (1 | ) | (65 | ) | (18 | ) | ||||||||||||||||||||||||||||
Other-than-temporary impairments | (9 | ) | (37 | ) | (34 | ) | ||||||||||||||||||||||||||||
Total | $ | 7 | $ | 7 | $ | — | ||||||||||||||||||||||||||||
Available-for-Sale Securities Contractual Maturity Disclosure | ' | |||||||||||||||||||||||||||||||||
Available-for-Sale securities by contractual maturity at December 31, 2013, were as follows: | ||||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Due within one year | $ | 1,448 | $ | 1,470 | ||||||||||||||||||||||||||||||
Due after one year through five years | 5,918 | 6,317 | ||||||||||||||||||||||||||||||||
Due after five years through 10 years | 6,591 | 6,963 | ||||||||||||||||||||||||||||||||
Due after 10 years | 4,690 | 5,173 | ||||||||||||||||||||||||||||||||
18,647 | 19,923 | |||||||||||||||||||||||||||||||||
Residential mortgage backed securities | 6,114 | 6,124 | ||||||||||||||||||||||||||||||||
Commercial mortgage backed securities | 2,612 | 2,741 | ||||||||||||||||||||||||||||||||
Asset backed securities | 1,459 | 1,504 | ||||||||||||||||||||||||||||||||
Common stocks | 7 | 18 | ||||||||||||||||||||||||||||||||
Total | $ | 28,839 | $ | 30,310 | ||||||||||||||||||||||||||||||
Financing_Receivables_Tables
Financing Receivables (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||
Rollforward of the allowance for loan losses | ' | |||||||||||||||
The following tables present a rollforward of the allowance for loan losses for the years ended and the ending balance of the allowance for loan losses by impairment method and type of loan: | ||||||||||||||||
31-Dec-13 | ||||||||||||||||
Commercial Mortgage Loans | Syndicated Loans | Consumer Loans | Total | |||||||||||||
(in millions) | ||||||||||||||||
Beginning balance | $ | 29 | $ | 7 | $ | 8 | $ | 44 | ||||||||
Charge-offs | (3 | ) | (1 | ) | (3 | ) | (7 | ) | ||||||||
Recoveries | — | — | 1 | 1 | ||||||||||||
Provisions | — | — | (1 | ) | (1 | ) | ||||||||||
Ending balance | $ | 26 | $ | 6 | $ | 5 | $ | 37 | ||||||||
Individually evaluated for impairment | $ | 8 | $ | — | $ | 1 | $ | 9 | ||||||||
Collectively evaluated for impairment | 18 | 6 | 4 | 28 | ||||||||||||
31-Dec-12 | ||||||||||||||||
Commercial Mortgage Loans | Syndicated Loans | Consumer Loans | Total | |||||||||||||
(in millions) | ||||||||||||||||
Beginning balance | $ | 35 | $ | 9 | $ | 16 | $ | 60 | ||||||||
Charge-offs | (6 | ) | (2 | ) | (14 | ) | (22 | ) | ||||||||
Recoveries | — | — | 1 | 1 | ||||||||||||
Provisions | — | — | 5 | 5 | ||||||||||||
Ending balance | $ | 29 | $ | 7 | $ | 8 | $ | 44 | ||||||||
Individually evaluated for impairment | $ | 6 | $ | — | $ | 1 | $ | 7 | ||||||||
Collectively evaluated for impairment | 23 | 7 | 7 | 37 | ||||||||||||
31-Dec-11 | ||||||||||||||||
Commercial Mortgage Loans | Syndicated Loans | Consumer Loans | Total | |||||||||||||
(in millions) | ||||||||||||||||
Beginning balance | $ | 38 | $ | 10 | $ | 16 | $ | 64 | ||||||||
Charge-offs | (2 | ) | — | (12 | ) | (14 | ) | |||||||||
Recoveries | — | — | 1 | 1 | ||||||||||||
Provisions | (1 | ) | (1 | ) | 11 | 9 | ||||||||||
Ending balance | $ | 35 | $ | 9 | $ | 16 | $ | 60 | ||||||||
Individually evaluated for impairment | $ | 10 | $ | 1 | $ | 1 | $ | 12 | ||||||||
Collectively evaluated for impairment | 25 | 8 | 15 | 48 | ||||||||||||
Financing receivables by impairment method and type of loan | ' | |||||||||||||||
The recorded investment in financing receivables by impairment method and type of loan was as follows: | ||||||||||||||||
31-Dec-13 | ||||||||||||||||
Commercial Mortgage Loans | Syndicated Loans | Consumer Loans | Total | |||||||||||||
(in millions) | ||||||||||||||||
Individually evaluated for impairment | $ | 42 | $ | 9 | $ | 7 | $ | 58 | ||||||||
Collectively evaluated for impairment | 2,640 | 370 | 873 | 3,883 | ||||||||||||
Total | $ | 2,682 | $ | 379 | $ | 880 | $ | 3,941 | ||||||||
31-Dec-12 | ||||||||||||||||
Commercial Mortgage Loans | Syndicated Loans | Consumer Loans | Total | |||||||||||||
(in millions) | ||||||||||||||||
Individually evaluated for impairment | $ | 44 | $ | 2 | $ | 8 | $ | 54 | ||||||||
Collectively evaluated for impairment | 2,562 | 335 | 1,061 | 3,958 | ||||||||||||
Total | $ | 2,606 | $ | 337 | $ | 1,069 | $ | 4,012 | ||||||||
Purchases and sales of loans under financing receivables | ' | |||||||||||||||
Purchases and sales of loans were as follows: | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
(in millions) | ||||||||||||||||
Purchases | ||||||||||||||||
Consumer loans | $ | — | $ | 51 | $ | 373 | ||||||||||
Syndicated loans | 158 | 111 | 194 | |||||||||||||
Total loans purchased | $ | 158 | $ | 162 | $ | 567 | ||||||||||
Sales | ||||||||||||||||
Consumer loans | $ | — | $ | 452 | $ | 209 | ||||||||||
Syndicated loans | 3 | 12 | 2 | |||||||||||||
Total loans sold | $ | 3 | $ | 464 | $ | 211 | ||||||||||
Schedule of commercial mortgage loans by geographic region and specific collateral property type | ' | |||||||||||||||
Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows: | ||||||||||||||||
Loans | Percentage | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in millions) | ||||||||||||||||
East North Central | $ | 251 | $ | 260 | 9 | % | 10 | % | ||||||||
East South Central | 71 | 66 | 3 | 3 | ||||||||||||
Middle Atlantic | 211 | 207 | 8 | 8 | ||||||||||||
Mountain | 257 | 272 | 10 | 10 | ||||||||||||
New England | 149 | 146 | 5 | 6 | ||||||||||||
Pacific | 661 | 597 | 25 | 23 | ||||||||||||
South Atlantic | 713 | 661 | 26 | 25 | ||||||||||||
West North Central | 207 | 232 | 8 | 9 | ||||||||||||
West South Central | 162 | 165 | 6 | 6 | ||||||||||||
2,682 | 2,606 | 100 | % | 100 | % | |||||||||||
Less: allowance for loan losses | 26 | 29 | ||||||||||||||
Total | $ | 2,656 | $ | 2,577 | ||||||||||||
Schedule of concentrations of credit risk of commercial mortgage loans by property type | ' | |||||||||||||||
Concentrations of credit risk of commercial mortgage loans by property type were as follows: | ||||||||||||||||
Loans | Percentage | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in millions) | ||||||||||||||||
Apartments | $ | 488 | $ | 450 | 18 | % | 17 | % | ||||||||
Hotel | 33 | 36 | 1 | 1 | ||||||||||||
Industrial | 454 | 474 | 17 | 18 | ||||||||||||
Mixed use | 36 | 42 | 1 | 2 | ||||||||||||
Office | 559 | 610 | 21 | 24 | ||||||||||||
Retail | 951 | 858 | 36 | 33 | ||||||||||||
Other | 161 | 136 | 6 | 5 | ||||||||||||
2,682 | 2,606 | 100 | % | 100 | % | |||||||||||
Less: allowance for loan losses | 26 | 29 | ||||||||||||||
Total | $ | 2,656 | $ | 2,577 | ||||||||||||
Schedule of troubled debt restructurings | ' | |||||||||||||||
The following table presents the number of loans restructured by the Company during the period and their recorded investment at the end of the period: | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | |||||||||||||
(in millions, except number of loans) | ||||||||||||||||
Commercial mortgage loans | 8 | $ | 24 | 4 | $ | 13 | ||||||||||
Syndicated loans | 1 | — | 5 | 2 | ||||||||||||
Consumer bank loans | 15 | — | 23 | — | ||||||||||||
Total | 24 | $ | 24 | 32 | $ | 15 | ||||||||||
Reinsurance_Reinsurance_Tables
Reinsurance Reinsurance (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
effect of reinsurance on property and casualty premiums written and earned [Line Items] | ' | |||||||||||
Effects of Reinsurance | ' | |||||||||||
The effect of reinsurance on premiums for the Company’s long-duration contracts was as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Direct premiums | $ | 650 | $ | 661 | $ | 707 | ||||||
Reinsurance ceded | (220 | ) | (219 | ) | (214 | ) | ||||||
Net premiums | $ | 430 | $ | 442 | $ | 493 | ||||||
Property and Casualty Personal Insurance | ' | |||||||||||
effect of reinsurance on property and casualty premiums written and earned [Line Items] | ' | |||||||||||
effect of reinsurance on property and casualty premiums written and earned [Table Text Block] | ' | |||||||||||
The effect of reinsurance on premiums for the Company’s short-duration contracts was as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Written premiums | ||||||||||||
Direct | $ | 900 | $ | 814 | $ | 756 | ||||||
Ceded | (16 | ) | (13 | ) | (14 | ) | ||||||
Total net written premiums | $ | 884 | $ | 801 | $ | 742 | ||||||
Earned premiums | ||||||||||||
Direct | $ | 868 | $ | 795 | $ | 741 | ||||||
Ceded | (16 | ) | (14 | ) | (14 | ) | ||||||
Total net earned premiums | $ | 852 | $ | 781 | $ | 727 | ||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Changes in the carrying amount of goodwill reported in operating segments | ' | |||||||||||||||||||||||
The changes in the carrying amount of goodwill reported in the Company’s main operating segments were as follows: | ||||||||||||||||||||||||
Advice & Wealth | Asset | Annuities | Protection | Consolidated | ||||||||||||||||||||
Management | Management | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Balance at January 1, 2012 | $ | 255 | $ | 818 | $ | 46 | $ | 45 | $ | 1,164 | ||||||||||||||
Foreign currency translation | — | 14 | — | — | 14 | |||||||||||||||||||
Purchase price adjustments | (2 | ) | (2 | ) | — | — | (4 | ) | ||||||||||||||||
Balance at December 31, 2012 | 253 | 830 | 46 | 45 | 1,174 | |||||||||||||||||||
Foreign currency translation | — | 5 | — | — | 5 | |||||||||||||||||||
Purchase price adjustments | (1 | ) | (14 | ) | — | — | (15 | ) | ||||||||||||||||
Balance at December 31, 2013 | $ | 252 | $ | 821 | $ | 46 | $ | 45 | $ | 1,164 | ||||||||||||||
Definite-lived intangible assets | ' | |||||||||||||||||||||||
Definite-lived intangible assets consisted of the following: | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Customer relationships | $ | 152 | $ | (87 | ) | $ | 65 | $ | 152 | $ | (72 | ) | $ | 80 | ||||||||||
Contracts | 240 | (167 | ) | 73 | 238 | (146 | ) | 92 | ||||||||||||||||
Other | 155 | (94 | ) | 61 | 151 | (82 | ) | 69 | ||||||||||||||||
Total | $ | 547 | $ | (348 | ) | $ | 199 | $ | 541 | $ | (300 | ) | $ | 241 | ||||||||||
Estimated intangible amortization expenses | ' | |||||||||||||||||||||||
Estimated intangible amortization expense as of December 31, 2013 for the next five years is as follows: | ||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
2014 | $ | 39 | ||||||||||||||||||||||
2015 | 31 | |||||||||||||||||||||||
2016 | 25 | |||||||||||||||||||||||
2017 | 21 | |||||||||||||||||||||||
2018 | 19 | |||||||||||||||||||||||
Deferred_Acquisition_Costs_and1
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Deferred Acquisition Costs and Deferred Sales Inducement Costs | ' | |||||||||||
Schedule of balances of and changes in DAC | ' | |||||||||||
The balances of and changes in DAC were as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Balance at January 1 | $ | 2,399 | $ | 2,440 | $ | 2,556 | ||||||
Capitalization of acquisition costs | 339 | 313 | 335 | |||||||||
Amortization, excluding the impact of valuation assumptions review | (285 | ) | (275 | ) | (366 | ) | ||||||
Amortization impact of valuation assumptions review | 78 | (11 | ) | (31 | ) | |||||||
Impact of change in net unrealized securities losses (gains) | 132 | (68 | ) | (54 | ) | |||||||
Balance at December 31 | $ | 2,663 | $ | 2,399 | $ | 2,440 | ||||||
Schedule of balances of and changes in DSIC, included in other assets on the Consolidated Balance Sheets | ' | |||||||||||
The balances of and changes in DSIC, which is included in other assets, were as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Balance at January 1 | $ | 404 | $ | 464 | $ | 545 | ||||||
Capitalization of sales inducement costs | 5 | 7 | 9 | |||||||||
Amortization, excluding the impact of valuation assumptions review | (48 | ) | (45 | ) | (70 | ) | ||||||
Amortization impact of valuation assumptions review | 25 | (13 | ) | (11 | ) | |||||||
Impact of change in net unrealized securities losses (gains) | 23 | (9 | ) | (9 | ) | |||||||
Balance at December 31 | $ | 409 | $ | 404 | $ | 464 | ||||||
Policyholder_Account_Balances_1
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | ' | |||||||
Policyholder Account Balances, Future Policy Benefits and Unpaid Claims Disclosure | ' | |||||||
Policyholder account balances, future policy benefits and claims consisted of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Policyholder account balances | ||||||||
Fixed annuities | $ | 13,826 | $ | 14,420 | ||||
Variable annuity fixed sub-accounts | 4,926 | 4,833 | ||||||
VUL/UL insurance | 2,790 | 2,725 | ||||||
IUL insurance | 315 | 137 | ||||||
Other life insurance | 878 | 909 | ||||||
Total policyholder account balances | 22,735 | 23,024 | ||||||
Future policy benefits | ||||||||
Variable annuity GMWB | (383 | ) | (1) | 799 | ||||
Variable annuity GMAB | (62 | ) | (1) | 103 | ||||
Other annuity liabilities | 76 | 158 | ||||||
Fixed annuities life contingent liabilities | 1,523 | 1,520 | ||||||
EIA | 29 | 33 | ||||||
Life, DI and LTC insurance | 4,739 | 4,703 | ||||||
VUL/UL and other life insurance additional liabilities | 336 | 330 | ||||||
Total future policy benefits | 6,258 | 7,646 | ||||||
Policy claims and other policyholders’ funds | 627 | 547 | ||||||
Total policyholder account balances, future policy benefits and claims | $ | 29,620 | $ | 31,217 | ||||
(1) | Includes the value of GMWB and GMAB embedded derivatives which was a net asset at December 31, 2013 and the amount is reported as a contra liability. | |||||||
Schedule of Separate Account Liabilities by Policy Type | ' | |||||||
Separate account liabilities consisted of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Variable annuity | $ | 70,687 | $ | 63,302 | ||||
VUL insurance | 6,885 | 6,051 | ||||||
Other insurance | 44 | 42 | ||||||
Threadneedle investment liabilities | 3,607 | 3,002 | ||||||
Total | $ | 81,223 | $ | 72,397 | ||||
Variable_Annuity_and_Insurance1
Variable Annuity and Insurance Guarantees (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Insurance [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule Of Net Amount Of Risk UL Secondary Guarantees [Table Text Block] | ' | ||||||||||||||||||||||||||||
The following table provides information related to insurance guarantees for which the Company has established additional liabilities: | |||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||
Net Amount at Risk | Weighted Average Attained Age | Net Amount at Risk | Weighted Average Attained Age | ||||||||||||||||||||||||||
(in millions, except age) | |||||||||||||||||||||||||||||
UL secondary guarantees | $ | 5,674 | 62 | $ | 5,060 | 61 | |||||||||||||||||||||||
Schedule of variable annuity guarantees | ' | ||||||||||||||||||||||||||||
The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities: | |||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||
Variable Annuity Guarantees by | 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 | |||||||||||||||||||||
Benefit Type(1) | |||||||||||||||||||||||||||||
(in millions, except age) | |||||||||||||||||||||||||||||
GMDB: | |||||||||||||||||||||||||||||
Return of premium | $ | 52,616 | $ | 50,790 | $ | 28 | 64 | $ | 45,697 | $ | 43,942 | $ | 61 | 63 | |||||||||||||||
Five/six-year reset | 11,220 | 8,663 | 42 | 64 | 11,233 | 8,722 | 115 | 63 | |||||||||||||||||||||
One-year ratchet | 7,676 | 7,261 | 38 | 65 | 7,367 | 6,933 | 106 | 65 | |||||||||||||||||||||
Five-year ratchet | 1,781 | 1,725 | 1 | 62 | 1,616 | 1,563 | 3 | 61 | |||||||||||||||||||||
Other | 1,015 | 996 | 36 | 69 | 912 | 885 | 62 | 68 | |||||||||||||||||||||
Total — GMDB | $ | 74,308 | $ | 69,435 | $ | 145 | 64 | $ | 66,825 | $ | 62,045 | $ | 347 | 63 | |||||||||||||||
GGU death benefit | $ | 1,052 | $ | 998 | $ | 121 | 64 | $ | 958 | $ | 907 | $ | 93 | 63 | |||||||||||||||
GMIB | $ | 413 | $ | 389 | $ | 8 | 66 | $ | 425 | $ | 399 | $ | 15 | 66 | |||||||||||||||
GMWB: | |||||||||||||||||||||||||||||
GMWB | $ | 3,936 | $ | 3,921 | $ | 1 | 67 | $ | 3,898 | $ | 3,880 | $ | 3 | 66 | |||||||||||||||
GMWB for life | 34,069 | 33,930 | 77 | 64 | 28,588 | 28,462 | 104 | 64 | |||||||||||||||||||||
Total — GMWB | $ | 38,005 | $ | 37,851 | $ | 78 | 64 | $ | 32,486 | $ | 32,342 | $ | 107 | 64 | |||||||||||||||
GMAB | $ | 4,194 | $ | 4,181 | $ | 2 | 58 | $ | 3,773 | $ | 3,762 | $ | 5 | 57 | |||||||||||||||
(1) Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table. | |||||||||||||||||||||||||||||
Schedule of changes in additional liabilities for variable annuity and insurance guarantees | ' | ||||||||||||||||||||||||||||
Changes in variable annuity and insurance guarantees were as follows: | |||||||||||||||||||||||||||||
GMDB & GGU | GMIB | GMWB(1) | GMAB(1) | UL | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance at January 1, 2011 | $ | 5 | $ | 8 | $ | 337 | $ | 104 | $ | 68 | |||||||||||||||||||
Incurred claims | 10 | 2 | 1,040 | 133 | 53 | ||||||||||||||||||||||||
Paid claims | (10 | ) | (1 | ) | — | — | (10 | ) | |||||||||||||||||||||
Balance at December 31, 2011 | 5 | 9 | 1,377 | 237 | 111 | ||||||||||||||||||||||||
Incurred claims | 6 | 1 | (578 | ) | (134 | ) | 57 | ||||||||||||||||||||||
Paid claims | (7 | ) | (1 | ) | — | — | (13 | ) | |||||||||||||||||||||
Balance at December 31, 2012 | 4 | 9 | 799 | 103 | 155 | ||||||||||||||||||||||||
Incurred claims | 4 | (2 | ) | (1,182 | ) | (165 | ) | 67 | |||||||||||||||||||||
Paid claims | (4 | ) | (1 | ) | — | — | (16 | ) | |||||||||||||||||||||
Balance at December 31, 2013 | $ | 4 | $ | 6 | $ | (383 | ) | $ | (62 | ) | $ | 206 | |||||||||||||||||
Schedule 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: | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Mutual funds: | |||||||||||||||||||||||||||||
Equity | $ | 39,195 | $ | 33,037 | |||||||||||||||||||||||||
Bond | 26,519 | 26,849 | |||||||||||||||||||||||||||
Other | 3,764 | 2,324 | |||||||||||||||||||||||||||
Total mutual funds | $ | 69,478 | $ | 62,210 | |||||||||||||||||||||||||
Customer_Deposits_Tables
Customer Deposits (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Banking and Thrift [Abstract] | ' | |||||||
Schedule of Customer Deposits | ' | |||||||
Customer deposits consisted of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Fixed rate certificates | $ | 3,338 | $ | 2,807 | ||||
Stock market certificates | 611 | 666 | ||||||
Stock market embedded derivative reserve | 7 | 8 | ||||||
Other | 28 | 31 | ||||||
Less: accrued interest classified in other liabilities | (10 | ) | (10 | ) | ||||
Total investment certificate reserves | 3,974 | 3,502 | ||||||
Brokerage deposits | 3,088 | 3,024 | ||||||
Total | $ | 7,062 | $ | 6,526 | ||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||
Schedule of Debt Instruments | ' | |||||||||||||
The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows: | ||||||||||||||
Outstanding Balance | Stated Interest Rate | |||||||||||||
December 31, | December 31, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in millions) | ||||||||||||||
Long-term debt: | ||||||||||||||
Senior notes due 2015 | $ | 366 | (1) | $ | 750 | (1) | 5.7 | % | 5.7 | % | ||||
Senior notes due 2019 | 327 | (1) | 347 | (1) | 7.3 | 7.3 | ||||||||
Senior notes due 2020 | 783 | (1) | 812 | (1) | 5.3 | 5.3 | ||||||||
Senior notes due 2023 | 750 | — | 4 | — | ||||||||||
Senior notes due 2039 | 200 | 200 | 7.8 | 7.8 | ||||||||||
Junior subordinated notes due 2066 | 294 | 294 | 7.5 | 7.5 | ||||||||||
Total long-term debt | 2,720 | 2,403 | ||||||||||||
Short-term borrowings: | ||||||||||||||
Federal Home Loan Bank (“FHLB”) advances | 450 | — | 0.3 | — | ||||||||||
Repurchase agreements | 50 | 501 | 0.3 | 0.4 | ||||||||||
Total short-term borrowings | 500 | 501 | ||||||||||||
Total | $ | 3,220 | $ | 2,904 | ||||||||||
(1) Amounts include adjustments for fair value hedges on the Company’s long-term debt. See Note 16 for information on the Company’s fair value hedges. | ||||||||||||||
Schedule of Maturities of Long-term Debt | ' | |||||||||||||
At December 31, 2013, future maturities of Ameriprise Financial long-term debt were as follows: | ||||||||||||||
(in millions) | ||||||||||||||
2014 | $ | — | ||||||||||||
2015 | 350 | |||||||||||||
2016 | — | |||||||||||||
2017 | — | |||||||||||||
2018 | — | |||||||||||||
Thereafter | 2,294 | |||||||||||||
Total future maturities | $ | 2,644 | ||||||||||||
Fair_Values_of_Assets_and_Liab1
Fair Values of Assets and Liabilities (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||||||||||||||||||||||||||
The following tables present the balances of assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis: | |||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Cash equivalents | $ | 12 | $ | 1,841 | $ | — | $ | 1,853 | |||||||||||||||||||||||||||||||||
Available-for-Sale securities: | |||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | — | 15,826 | 1,640 | 17,466 | |||||||||||||||||||||||||||||||||||||
Residential mortgage backed securities | — | 5,937 | 187 | 6,124 | |||||||||||||||||||||||||||||||||||||
Commercial mortgage backed securities | — | 2,711 | 30 | 2,741 | |||||||||||||||||||||||||||||||||||||
Asset backed securities | — | 1,244 | 260 | 1,504 | |||||||||||||||||||||||||||||||||||||
State and municipal obligations | — | 2,160 | — | 2,160 | |||||||||||||||||||||||||||||||||||||
U.S. government and agencies obligations | 17 | 35 | — | 52 | |||||||||||||||||||||||||||||||||||||
Foreign government bonds and obligations | — | 245 | — | 245 | |||||||||||||||||||||||||||||||||||||
Common stocks | 5 | 7 | 6 | 18 | |||||||||||||||||||||||||||||||||||||
Total Available-for-Sale securities | 22 | 28,165 | 2,123 | 30,310 | |||||||||||||||||||||||||||||||||||||
Trading securities | 3 | 32 | 2 | 37 | |||||||||||||||||||||||||||||||||||||
Separate account assets | — | 81,223 | — | 81,223 | |||||||||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||||||||
Interest rate derivative contracts | — | 1,570 | — | 1,570 | |||||||||||||||||||||||||||||||||||||
Equity derivative contracts | 265 | 1,576 | — | 1,841 | |||||||||||||||||||||||||||||||||||||
Credit derivative contracts | — | 3 | — | 3 | |||||||||||||||||||||||||||||||||||||
Foreign currency derivative contracts | 2 | 2 | — | 4 | |||||||||||||||||||||||||||||||||||||
Total other assets | 267 | 3,151 | — | 3,418 | |||||||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 304 | $ | 114,412 | $ | 2,125 | $ | 116,841 | |||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||
Policyholder account balances, future policy benefits and claims: | |||||||||||||||||||||||||||||||||||||||||
EIA embedded derivatives | $ | — | $ | 5 | $ | — | $ | 5 | |||||||||||||||||||||||||||||||||
IUL embedded derivatives | — | — | 125 | 125 | |||||||||||||||||||||||||||||||||||||
GMWB and GMAB embedded derivatives | — | — | (575 | ) | (575 | ) | (2) | ||||||||||||||||||||||||||||||||||
Total policyholder account balances, future policy benefits and claims | — | 5 | (450 | ) | (445 | ) | (1) | ||||||||||||||||||||||||||||||||||
Customer deposits | — | 7 | — | 7 | |||||||||||||||||||||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||||||||||||||||||||
Interest rate derivative contracts | — | 1,693 | — | 1,693 | |||||||||||||||||||||||||||||||||||||
Equity derivative contracts | 550 | 2,565 | — | 3,115 | |||||||||||||||||||||||||||||||||||||
Other | — | 12 | — | 12 | |||||||||||||||||||||||||||||||||||||
Total other liabilities | 550 | 4,270 | — | 4,820 | |||||||||||||||||||||||||||||||||||||
Total liabilities at fair value | $ | 550 | $ | 4,282 | $ | (450 | ) | $ | 4,382 | ||||||||||||||||||||||||||||||||
(1) The Company’s adjustment for nonperformance risk resulted in a $150 million cumulative decrease to the embedded derivatives. | |||||||||||||||||||||||||||||||||||||||||
(2) The fair value of the GMWB and GMAB embedded derivatives was a net asset at December 31, 2013 and the amount is reported as a contra liability. | |||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Cash equivalents | $ | 18 | $ | 1,539 | $ | — | $ | 1,557 | |||||||||||||||||||||||||||||||||
Available-for-Sale securities: | |||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | — | 17,051 | 1,764 | 18,815 | |||||||||||||||||||||||||||||||||||||
Residential mortgage backed securities | — | 5,145 | 284 | 5,429 | |||||||||||||||||||||||||||||||||||||
Commercial mortgage backed securities | — | 3,213 | 206 | 3,419 | |||||||||||||||||||||||||||||||||||||
Asset backed securities | — | 1,097 | 178 | 1,275 | |||||||||||||||||||||||||||||||||||||
State and municipal obligations | — | 2,239 | — | 2,239 | |||||||||||||||||||||||||||||||||||||
U.S. government and agencies obligations | 19 | 39 | — | 58 | |||||||||||||||||||||||||||||||||||||
Foreign government bonds and obligations | — | 224 | — | 224 | |||||||||||||||||||||||||||||||||||||
Common stocks | 3 | 4 | 6 | 13 | |||||||||||||||||||||||||||||||||||||
Other debt obligations | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Total Available-for-Sale securities | 22 | 29,012 | 2,438 | 31,472 | |||||||||||||||||||||||||||||||||||||
Trading securities | 1 | 24 | — | 25 | |||||||||||||||||||||||||||||||||||||
Separate account assets | — | 72,397 | — | 72,397 | |||||||||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||||||||
Interest rate derivative contracts | — | 2,358 | — | 2,358 | |||||||||||||||||||||||||||||||||||||
Equity derivative contracts | 285 | 973 | — | 1,258 | |||||||||||||||||||||||||||||||||||||
Credit derivative contracts | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Foreign currency derivative contracts | — | 6 | — | 6 | |||||||||||||||||||||||||||||||||||||
Commodity derivative contracts | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||
Total other assets | 285 | 3,338 | — | 3,623 | |||||||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 326 | $ | 106,310 | $ | 2,438 | $ | 109,074 | |||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||
Policyholder account balances, future policy benefits and claims: | |||||||||||||||||||||||||||||||||||||||||
EIA embedded derivatives | $ | — | $ | 2 | $ | — | $ | 2 | |||||||||||||||||||||||||||||||||
IUL embedded derivatives | — | — | 45 | 45 | |||||||||||||||||||||||||||||||||||||
GMWB and GMAB embedded derivatives | — | — | 833 | 833 | |||||||||||||||||||||||||||||||||||||
Total policyholder account balances, future policy benefits and claims | — | 2 | 878 | 880 | (1) | ||||||||||||||||||||||||||||||||||||
Customer deposits | — | 8 | — | 8 | |||||||||||||||||||||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||||||||||||||||||||
Interest rate derivative contracts | — | 1,486 | — | 1,486 | |||||||||||||||||||||||||||||||||||||
Equity derivative contracts | 258 | 1,565 | — | 1,823 | |||||||||||||||||||||||||||||||||||||
Foreign currency derivative contracts | 1 | — | — | 1 | |||||||||||||||||||||||||||||||||||||
Other | 1 | 3 | — | 4 | |||||||||||||||||||||||||||||||||||||
Total other liabilities | 260 | 3,054 | — | 3,314 | |||||||||||||||||||||||||||||||||||||
Total liabilities at fair value | $ | 260 | $ | 3,064 | $ | 878 | $ | 4,202 | |||||||||||||||||||||||||||||||||
(1) The Company’s adjustment for nonperformance risk resulted in a $398 million cumulative decrease to the embedded derivatives. | |||||||||||||||||||||||||||||||||||||||||
Schedule of changes in level 3 assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||||||||||||||||||||||||||
The following tables provide a summary of changes in Level 3 assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis: | |||||||||||||||||||||||||||||||||||||||||
Available-for-Sale Securities | Policyholder Account Balances, | ||||||||||||||||||||||||||||||||||||||||
Future Policy Benefits and Claims | |||||||||||||||||||||||||||||||||||||||||
Corporate Debt Securities | Residential Mortgage Backed Securities | Commercial Mortgage Backed Securities | Asset Backed Securities | Common Stocks | Total | Trading Securities | IUL Embedded Derivatives | GMWB and GMAB Embedded Derivatives | Total | ||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2013 | $ | 1,764 | $ | 284 | $ | 206 | $ | 178 | $ | 6 | $ | 2,438 | $ | — | $ | (45 | ) | $ | (833 | ) | $ | (878 | ) | ||||||||||||||||||
Total gains (losses) included in: | |||||||||||||||||||||||||||||||||||||||||
Net income | (3 | ) | — | — | 2 | — | (1 | ) | (1) | — | (19 | ) | (2) | 1,617 | (3) | 1,598 | |||||||||||||||||||||||||
Other comprehensive | (41 | ) | — | (6 | ) | 9 | 1 | (37 | ) | — | — | — | — | ||||||||||||||||||||||||||||
income | |||||||||||||||||||||||||||||||||||||||||
Purchases | 135 | 335 | 25 | 259 | — | 754 | 2 | — | — | — | |||||||||||||||||||||||||||||||
Sales | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Issues | — | — | — | — | — | — | — | (62 | ) | (228 | ) | (290 | ) | ||||||||||||||||||||||||||||
Settlements | (215 | ) | (18 | ) | (36 | ) | (5 | ) | — | (274 | ) | — | 1 | 19 | 20 | ||||||||||||||||||||||||||
Transfers into Level 3 | — | — | — | 8 | — | 8 | — | — | — | — | |||||||||||||||||||||||||||||||
Transfers out of Level 3 | — | (414 | ) | (159 | ) | (191 | ) | (1 | ) | (765 | ) | — | — | — | — | ||||||||||||||||||||||||||
Balance, December 31, 2013 | $ | 1,640 | $ | 187 | $ | 30 | $ | 260 | $ | 6 | $ | 2,123 | $ | 2 | $ | (125 | ) | $ | 575 | $ | 450 | ||||||||||||||||||||
Changes in unrealized gains (losses) relating to assets and liabilities held at December 31, 2013 included in: | |||||||||||||||||||||||||||||||||||||||||
Net investment income | $ | (3 | ) | $ | — | $ | — | $ | 2 | $ | — | $ | (1 | ) | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Interest credited to fixed accounts | — | — | — | — | — | — | — | (19 | ) | — | (19 | ) | |||||||||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | — | — | — | — | — | — | — | — | 1,598 | 1,598 | |||||||||||||||||||||||||||||||
(1) Included in net investment income in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||
(2) Included in interest credited to fixed accounts in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||
(3) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||
Available-for-Sale Securities | Policyholder Account Balances, | ||||||||||||||||||||||||||||||||||||||||
Future Policy Benefits and Claims | |||||||||||||||||||||||||||||||||||||||||
Corporate Debt Securities | Residential Mortgage Backed Securities | Commercial Mortgage Backed Securities | Asset Backed Securities | Common Stocks | Total | IUL Embedded Derivatives | GMWB and GMAB Embedded Derivatives | Total | |||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2012 | $ | 1,355 | $ | 215 | $ | 50 | $ | 189 | $ | 5 | $ | 1,814 | $ | — | $ | (1,585 | ) | $ | (1,585 | ) | |||||||||||||||||||||
Total gains (losses) included in: | |||||||||||||||||||||||||||||||||||||||||
Net income | (1 | ) | (45 | ) | 1 | 3 | — | (42 | ) | (1) | 8 | (2) | 948 | (3) | 956 | ||||||||||||||||||||||||||
Other comprehensive income | 12 | 68 | 8 | 1 | — | 89 | — | — | — | ||||||||||||||||||||||||||||||||
Purchases | 543 | 309 | 20 | — | 2 | 874 | — | — | — | ||||||||||||||||||||||||||||||||
Sales | — | (75 | ) | (19 | ) | (18 | ) | — | (112 | ) | — | — | — | ||||||||||||||||||||||||||||
Issues | — | — | — | — | — | — | (31 | ) | (188 | ) | (219 | ) | |||||||||||||||||||||||||||||
Settlements | (155 | ) | (56 | ) | (3 | ) | (19 | ) | — | (233 | ) | — | (8 | ) | (8 | ) | |||||||||||||||||||||||||
Transfers into Level 3 | 10 | 42 | 183 | 22 | — | 257 | (22 | ) | — | (22 | ) | ||||||||||||||||||||||||||||||
Transfers out of Level 3 | — | (174 | ) | (34 | ) | — | (1 | ) | (209 | ) | — | — | — | ||||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 1,764 | $ | 284 | $ | 206 | $ | 178 | $ | 6 | $ | 2,438 | $ | (45 | ) | $ | (833 | ) | $ | (878 | ) | ||||||||||||||||||||
Changes in unrealized gains (losses) relating to assets and liabilities held at December 31, 2012 included in: | |||||||||||||||||||||||||||||||||||||||||
Net investment income | $ | (1 | ) | $ | — | $ | 1 | $ | 2 | $ | — | $ | 2 | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Interest credited to fixed accounts | — | — | — | — | — | — | 8 | — | 8 | ||||||||||||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | — | — | — | — | — | — | — | 908 | 908 | ||||||||||||||||||||||||||||||||
(1) Included in net investment income in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||
(2) Included in interest credited to fixed accounts in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||
(3) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||
Available-for-Sale Securities | Policyholder | ||||||||||||||||||||||||||||||||||||||||
Account Balances, | |||||||||||||||||||||||||||||||||||||||||
Future Policy Benefits | |||||||||||||||||||||||||||||||||||||||||
and Claims | |||||||||||||||||||||||||||||||||||||||||
Corporate Debt Securities | Residential Mortgage Backed Securities | Commercial Mortgage Backed Securities | Asset Backed Securities | Common Stocks | Total | GMWB | |||||||||||||||||||||||||||||||||||
and GMAB | |||||||||||||||||||||||||||||||||||||||||
Embedded | |||||||||||||||||||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2011 | $ | 1,325 | $ | 4,532 | $ | 51 | $ | 191 | $ | 5 | $ | 6,104 | $ | (421 | ) | ||||||||||||||||||||||||||
Total gains (losses) included in: | |||||||||||||||||||||||||||||||||||||||||
Net income | 7 | 53 | — | 3 | — | 63 | (1) | (1,007 | ) | (2) | |||||||||||||||||||||||||||||||
Other comprehensive income | 11 | (118 | ) | — | (10 | ) | — | (117 | ) | — | |||||||||||||||||||||||||||||||
Purchases | 189 | 556 | 104 | 118 | — | 967 | — | ||||||||||||||||||||||||||||||||||
Sales | (51 | ) | (2 | ) | — | — | — | (53 | ) | — | |||||||||||||||||||||||||||||||
Issues | — | — | — | — | — | — | (149 | ) | |||||||||||||||||||||||||||||||||
Settlements | (122 | ) | (943 | ) | (4 | ) | (29 | ) | — | (1,098 | ) | (8 | ) | ||||||||||||||||||||||||||||
Transfers into Level 3 | 7 | — | 1 | 14 | — | 22 | — | ||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | (11 | ) | (3,863 | ) | (102 | ) | (98 | ) | — | (4,074 | ) | — | |||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 1,355 | $ | 215 | $ | 50 | $ | 189 | $ | 5 | $ | 1,814 | $ | (1,585 | ) | ||||||||||||||||||||||||||
Changes in unrealized gains (losses) relating to assets and liabilities held at December 31, 2011 included in: | |||||||||||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | (33 | ) | $ | — | $ | 2 | $ | — | $ | (31 | ) | $ | — | |||||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | — | — | — | — | — | — | (1,035 | ) | |||||||||||||||||||||||||||||||||
(1) Included in net investment income in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||
(2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||
Significant unobservable inputs used in the fair value measurements | ' | ||||||||||||||||||||||||||||||||||||||||
The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities: | |||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range | Weighted Average | |||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Corporate debt securities (private placements) | $ | 1,589 | Discounted cash flow | Yield/spread to U.S. Treasuries | 0.9 | % | – | 5.30% | 1.50% | ||||||||||||||||||||||||||||||||
IUL embedded derivatives | $ | 125 | Discounted cash flow | Nonperformance risk (3) | 74 | bps | |||||||||||||||||||||||||||||||||||
GMWB and GMAB embedded derivatives | $ | (575 | ) | Discounted cash flow | Utilization of guaranteed withdrawals (1) | 0 | % | – | 51.10% | ||||||||||||||||||||||||||||||||
Surrender rate | 0.1 | % | – | 57.90% | |||||||||||||||||||||||||||||||||||||
Market volatility (2) | 4.9 | % | – | 18.80% | |||||||||||||||||||||||||||||||||||||
Nonperformance risk (3) | 74 | bps | |||||||||||||||||||||||||||||||||||||||
Elective contractholder strategy allocations (4) | 0 | % | – | 50.00% | |||||||||||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range | Weighted Average | |||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Corporate debt securities (private placements) | $ | 1,712 | Discounted cash flow | Yield/spread to U.S. Treasuries | 1.1 | % | – | 8.50% | 2.10% | ||||||||||||||||||||||||||||||||
IUL embedded derivatives | $ | 45 | Discounted cash flow | Nonperformance risk (3) | 97 | bps | |||||||||||||||||||||||||||||||||||
GMWB and GMAB embedded derivatives | $ | 833 | Discounted cash flow | Utilization of guaranteed withdrawals (1) | 0 | % | – | 56.40% | |||||||||||||||||||||||||||||||||
Surrender rate | 0 | % | – | 56.30% | |||||||||||||||||||||||||||||||||||||
Market volatility (2) | 5.6 | % | – | 21.20% | |||||||||||||||||||||||||||||||||||||
Nonperformance risk (3) | 97 | bps | |||||||||||||||||||||||||||||||||||||||
(1) The utilization of guaranteed withdrawals represents the percentage of policyholders that will begin withdrawing in any given year. | |||||||||||||||||||||||||||||||||||||||||
(2) Market volatility is implied volatility of fund of funds and managed volatility funds. | |||||||||||||||||||||||||||||||||||||||||
(3) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. | |||||||||||||||||||||||||||||||||||||||||
(4) The elective allocation represents the percentage of contractholders that are assumed to electively switch their investment allocation to a different allocation model. | |||||||||||||||||||||||||||||||||||||||||
Schedule of carrying value and estimated fair value of financial instruments | ' | ||||||||||||||||||||||||||||||||||||||||
The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value. All other financial instruments that are reported at fair value have been included above in the table with balances of assets and liabilities Ameriprise Financial measured at fair value on a recurring basis. | |||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Carrying Value | Fair Value | ||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||||||||||||||||||
Mortgage loans, net | $ | 3,510 | $ | — | $ | — | $ | 3,490 | $ | 3,490 | |||||||||||||||||||||||||||||||
Policy and certificate loans | 774 | — | 1 | 765 | 766 | ||||||||||||||||||||||||||||||||||||
Receivables | 1,141 | 107 | 1,026 | 8 | 1,141 | ||||||||||||||||||||||||||||||||||||
Restricted and segregated cash | 2,360 | 2,360 | — | — | 2,360 | ||||||||||||||||||||||||||||||||||||
Other investments and assets | 440 | — | 368 | 73 | 441 | ||||||||||||||||||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||||||||||||||
Policyholder account balances, future policy benefits and claims | $ | 14,106 | $ | — | $ | — | $ | 14,724 | $ | 14,724 | |||||||||||||||||||||||||||||||
Investment certificate reserves | 3,977 | — | — | 3,982 | 3,982 | ||||||||||||||||||||||||||||||||||||
Brokerage customer deposits | 3,088 | 3,088 | — | — | 3,088 | ||||||||||||||||||||||||||||||||||||
Separate account liabilities | 4,007 | — | 4,007 | — | 4,007 | ||||||||||||||||||||||||||||||||||||
Debt and other liabilities | 3,416 | 137 | 3,372 | 134 | 3,643 | ||||||||||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||
Carrying Value | Fair Value | ||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||||||||||||||||||
Mortgage loans, net | $ | 3,609 | $ | — | $ | — | $ | 3,694 | $ | 3,694 | |||||||||||||||||||||||||||||||
Policy and certificate loans | 754 | — | 2 | 725 | 727 | ||||||||||||||||||||||||||||||||||||
Receivables | 1,067 | 135 | 926 | 12 | 1,073 | ||||||||||||||||||||||||||||||||||||
Restricted and segregated cash | 2,538 | 2,538 | — | — | 2,538 | ||||||||||||||||||||||||||||||||||||
Other investments and assets | 390 | — | 333 | 60 | 393 | ||||||||||||||||||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||||||||||||||
Policyholder account balances, future policy benefits and claims | $ | 14,701 | $ | — | $ | — | $ | 15,982 | $ | 15,982 | |||||||||||||||||||||||||||||||
Investment certificate reserves | 3,504 | — | — | 3,494 | 3,494 | ||||||||||||||||||||||||||||||||||||
Brokerage customer deposits | 3,024 | 3,024 | — | — | 3,024 | ||||||||||||||||||||||||||||||||||||
Separate account liabilities | 3,362 | — | 3,362 | — | 3,362 | ||||||||||||||||||||||||||||||||||||
Debt and other liabilities | 3,033 | 145 | 3,109 | 142 | 3,396 | ||||||||||||||||||||||||||||||||||||
Offsetting_Assets_and_Liabilit1
Offsetting Assets and Liabilities (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Offsetting [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of gross and net information about the Company's 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: | ||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Amounts of Assets Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | |||||||||||||||||||||||||
Financial Instruments (1) | Cash Collateral | Securities Collateral | Net Amount | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||
OTC | $ | 3,337 | $ | — | $ | 3,337 | $ | (3,227 | ) | $ | (75 | ) | $ | (15 | ) | $ | 20 | |||||||||||
OTC cleared | 21 | — | 21 | (20 | ) | (1 | ) | — | — | |||||||||||||||||||
Exchange-traded | 60 | — | 60 | — | — | — | 60 | |||||||||||||||||||||
Total derivatives | 3,418 | — | 3,418 | (3,247 | ) | (76 | ) | (15 | ) | 80 | ||||||||||||||||||
Securities borrowed | 107 | — | 107 | (15 | ) | — | (90 | ) | 2 | |||||||||||||||||||
Total | $ | 3,525 | $ | — | $ | 3,525 | $ | (3,262 | ) | $ | (76 | ) | $ | (105 | ) | $ | 82 | |||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Amounts of Assets Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | |||||||||||||||||||||||||
Financial Instruments (1) | Cash Collateral | Securities Collateral | Net Amount | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||
OTC | $ | 3,527 | $ | — | $ | 3,527 | $ | (2,706 | ) | $ | (428 | ) | $ | (355 | ) | $ | 38 | |||||||||||
Exchange-traded | 96 | — | 96 | — | — | — | 96 | |||||||||||||||||||||
Total derivatives | 3,623 | — | 3,623 | (2,706 | ) | (428 | ) | (355 | ) | 134 | ||||||||||||||||||
Securities borrowed | 135 | — | 135 | (66 | ) | — | (68 | ) | 1 | |||||||||||||||||||
Total | $ | 3,758 | $ | — | $ | 3,758 | $ | (2,772 | ) | $ | (428 | ) | $ | (423 | ) | $ | 135 | |||||||||||
(1) Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. | ||||||||||||||||||||||||||||
Schedule of gross and net information about the Company's liabilities subject to master netting arrangements | ' | |||||||||||||||||||||||||||
The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements: | ||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Amounts of Liabilities Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | |||||||||||||||||||||||||
Financial Instruments (1) | Cash Collateral | Securities Collateral | Net Amount | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||
OTC | $ | 4,786 | $ | — | $ | 4,786 | $ | (3,227 | ) | $ | — | $ | (1,498 | ) | $ | 61 | ||||||||||||
OTC cleared | 22 | — | 22 | (20 | ) | (2 | ) | — | — | |||||||||||||||||||
Total derivatives | 4,808 | — | 4,808 | (3,247 | ) | (2 | ) | (1,498 | ) | 61 | ||||||||||||||||||
Securities loaned | 136 | — | 136 | (15 | ) | — | (117 | ) | 4 | |||||||||||||||||||
Repurchase agreements | 50 | — | 50 | — | — | (50 | ) | — | ||||||||||||||||||||
Total | $ | 4,994 | $ | — | $ | 4,994 | $ | (3,262 | ) | $ | (2 | ) | $ | (1,665 | ) | $ | 65 | |||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Amounts of Liabilities Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | |||||||||||||||||||||||||
Financial Instruments (1) | Cash Collateral | Securities Collateral | Net Amount | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
OTC derivatives | $ | 3,310 | $ | — | $ | 3,310 | $ | (2,706 | ) | $ | (67 | ) | $ | (531 | ) | $ | 6 | |||||||||||
Securities loaned | 145 | — | 145 | (66 | ) | — | (77 | ) | 2 | |||||||||||||||||||
Repurchase agreements | 501 | — | 501 | — | — | (501 | ) | — | ||||||||||||||||||||
Total | $ | 3,956 | $ | — | $ | 3,956 | $ | (2,772 | ) | $ | (67 | ) | $ | (1,109 | ) | $ | 8 | |||||||||||
(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_Activi1
Derivatives and Hedging Activities (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Derivative instruments | ' | ||||||||||||||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||||||||||||
The following is a summary of unrealized derivatives gains (losses) included in accumulated other comprehensive income related to cash flow hedges: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in millions) | |||||||||||||||||||||
Net unrealized derivatives gains (losses) at January 1 | $ | (2 | ) | $ | (11 | ) | $ | 18 | |||||||||||||
Holding gains (losses) | — | 14 | (10 | ) | |||||||||||||||||
Reclassification of realized (gains) losses | 1 | (1 | ) | (34 | ) | ||||||||||||||||
Income tax benefit (provision) | — | (4 | ) | 15 | |||||||||||||||||
Net unrealized derivatives losses at December 31 | $ | (1 | ) | $ | (2 | ) | $ | (11 | ) | ||||||||||||
Schedule of gross fair value of derivative instruments, including embedded derivatives | ' | ||||||||||||||||||||
The following table presents the balance sheet location and the gross fair value of derivative instruments, including embedded derivatives: | |||||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||
Balance Sheet | December 31, | Balance Sheet | December 31, | ||||||||||||||||||
Location | 2013 | 2012 | Location | 2013 | 2012 | ||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||
Fair value hedges | |||||||||||||||||||||
Fixed rate debt | Other assets | $ | 82 | $ | 167 | Other liabilities | $ | — | $ | — | |||||||||||
Total qualifying hedges | 82 | 167 | — | — | |||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||
GMWB and GMAB | |||||||||||||||||||||
Interest rate contracts | Other assets | 1,484 | 2,191 | Other liabilities | 1,672 | 1,486 | |||||||||||||||
Equity contracts | Other assets | 1,741 | 1,215 | Other liabilities | 3,028 | 1,792 | |||||||||||||||
Credit contracts | Other assets | 3 | — | Other liabilities | — | — | |||||||||||||||
Foreign currency contracts | Other assets | 2 | 6 | Other liabilities | — | — | |||||||||||||||
Embedded derivatives (1) | N/A | — | — | Policyholder account balances, | (575 | ) | (2) | 833 | |||||||||||||
future policy benefits and claims | |||||||||||||||||||||
Total GMWB and GMAB | 3,230 | 3,412 | 4,125 | 4,111 | |||||||||||||||||
Other derivatives: | |||||||||||||||||||||
Interest rate | |||||||||||||||||||||
Macro hedge program | Other assets | 4 | — | Other liabilities | 21 | — | |||||||||||||||
Equity | |||||||||||||||||||||
Macro hedge program | Other assets | — | — | Other liabilities | 8 | — | |||||||||||||||
EIA embedded derivatives | N/A | — | — | Policyholder account balances, | 5 | 2 | |||||||||||||||
future policy benefits and claims | |||||||||||||||||||||
IUL | Other assets | 27 | 6 | Other liabilities | 13 | 1 | |||||||||||||||
IUL embedded derivatives | N/A | — | — | Policyholder account balances, | 125 | 45 | |||||||||||||||
future policy benefits and claims | |||||||||||||||||||||
Stock market certificates | Other assets | 73 | 37 | Other liabilities | 66 | 30 | |||||||||||||||
Stock market certificates embedded derivatives | N/A | — | — | Customer deposits | 7 | 8 | |||||||||||||||
Foreign exchange | |||||||||||||||||||||
Foreign currency | Other assets | 2 | — | Other liabilities | — | 1 | |||||||||||||||
Commodity | |||||||||||||||||||||
Seed money | Other assets | — | 1 | Other liabilities | — | — | |||||||||||||||
Total other | 106 | 44 | 245 | 87 | |||||||||||||||||
Total non-designated hedges | 3,336 | 3,456 | 4,370 | 4,198 | |||||||||||||||||
Total derivatives | $ | 3,418 | $ | 3,623 | $ | 4,370 | $ | 4,198 | |||||||||||||
Schedule of payments to make and receive for options | ' | ||||||||||||||||||||
The deferred premium associated with certain of the above options is paid or received semi-annually over the life of the option contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options: | |||||||||||||||||||||
Premiums Payable | Premiums Receivable | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||
2014 | $ | 378 | $ | 86 | |||||||||||||||||
2015 | 349 | 67 | |||||||||||||||||||
2016 | 305 | 51 | |||||||||||||||||||
2017 | 240 | 45 | |||||||||||||||||||
2018 | 196 | 56 | |||||||||||||||||||
2019-2027 | 601 | 79 | |||||||||||||||||||
Total | $ | 2,069 | $ | 384 | |||||||||||||||||
Not Designated as Hedges | ' | ||||||||||||||||||||
Derivative instruments | ' | ||||||||||||||||||||
Schedule of gain (loss) on derivative instruments | ' | ||||||||||||||||||||
The following table presents a summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations: | |||||||||||||||||||||
Derivatives not designated as | Location of Gain (Loss) on | Amount of Gain (Loss) on | |||||||||||||||||||
hedging instruments | Derivatives Recognized in Income | Derivatives Recognized in Income | |||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in millions) | |||||||||||||||||||||
GMWB and GMAB | |||||||||||||||||||||
Interest rate contracts | Benefits, claims, losses and settlement expenses | $ | (742 | ) | $ | 17 | $ | 709 | |||||||||||||
Equity contracts | Benefits, claims, losses and settlement expenses | (1,103 | ) | (1,218 | ) | 326 | |||||||||||||||
Credit contracts | Benefits, claims, losses and settlement expenses | 6 | (2 | ) | (12 | ) | |||||||||||||||
Foreign currency contracts | Benefits, claims, losses and settlement expenses | 26 | (1 | ) | (2 | ) | |||||||||||||||
Embedded derivatives (1) | Benefits, claims, losses and settlement expenses | 1,408 | 752 | (1,165 | ) | ||||||||||||||||
Total GMWB and GMAB | (405 | ) | (452 | ) | (144 | ) | |||||||||||||||
Other derivatives: | |||||||||||||||||||||
Interest rate | |||||||||||||||||||||
Macro hedge program | Benefits, claims, losses and settlement expenses | (15 | ) | — | — | ||||||||||||||||
Bank assets | Net investment income | — | (7 | ) | — | ||||||||||||||||
Tax hedge | Net investment income | — | 1 | — | |||||||||||||||||
Interest rate lock commitments | Other revenues | — | — | (1 | ) | ||||||||||||||||
Seed money | Net investment income | 2 | — | — | |||||||||||||||||
Equity | |||||||||||||||||||||
Macro hedge program | Benefits, claims, losses and settlement expenses | (8 | ) | — | — | ||||||||||||||||
IUL | Interest credited to fixed accounts | 11 | 1 | 1 | |||||||||||||||||
IUL embedded derivatives | Interest credited to fixed accounts | 16 | (4 | ) | (3 | ) | |||||||||||||||
EIA | Interest credited to fixed accounts | 3 | 1 | (1 | ) | ||||||||||||||||
EIA embedded derivatives | Interest credited to fixed accounts | (3 | ) | 1 | 1 | ||||||||||||||||
Stock market certificates | Banking and deposit interest expense | 7 | 6 | 1 | |||||||||||||||||
Stock market certificates embedded derivatives | Banking and deposit interest expense | (6 | ) | (5 | ) | — | |||||||||||||||
Seed money | Net investment income | (17 | ) | (6 | ) | 4 | |||||||||||||||
Ameriprise Financial Franchise Advisor Deferred Compensation Plan | Distribution expenses | — | 5 | (4 | ) | ||||||||||||||||
Deferred compensation | Distribution expenses | 9 | — | — | |||||||||||||||||
Deferred compensation | General and administrative expense | 5 | — | — | |||||||||||||||||
Foreign exchange | |||||||||||||||||||||
Seed money | General and administrative expense | — | — | (1 | ) | ||||||||||||||||
Foreign currency | Net investment income | (2 | ) | — | (3 | ) | |||||||||||||||
Commodity | |||||||||||||||||||||
Seed money | Net investment income | 1 | — | 1 | |||||||||||||||||
Total other | 3 | (7 | ) | (5 | ) | ||||||||||||||||
Total derivatives | $ | (402 | ) | $ | (459 | ) | $ | (149 | ) | ||||||||||||
Cash flow hedges | ' | ||||||||||||||||||||
Derivative instruments | ' | ||||||||||||||||||||
Schedule of gain (loss) on derivative instruments | ' | ||||||||||||||||||||
The following tables present the impact of the effective portion of the Company’s cash flow hedges on the Consolidated Statements of Operations and the Consolidated Statements of Equity: | |||||||||||||||||||||
Amount of Gain (Loss) Recognized in Other | |||||||||||||||||||||
Comprehensive Income (Loss) on Derivatives | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
Derivatives designated as hedging instruments | 2013 | 2012 | 2011 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||
Interest on debt | $ | — | $ | 14 | $ | (11 | ) | ||||||||||||||
Asset-based distribution fees | — | — | 1 | ||||||||||||||||||
Total | $ | — | $ | 14 | $ | (10 | ) | ||||||||||||||
Amount of Gain (Loss) Reclassified from Accumulated | |||||||||||||||||||||
Other Comprehensive Income into Income | |||||||||||||||||||||
Location of Gain (Loss) Reclassified from Accumulated | December 31, | ||||||||||||||||||||
Other Comprehensive Income into Income | 2013 | 2012 | 2011 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||
Other revenues | $ | — | $ | 3 | $ | 27 | |||||||||||||||
Interest and debt expense | 4 | 4 | 4 | ||||||||||||||||||
Distribution fees | — | — | 9 | ||||||||||||||||||
Net investment income | (5 | ) | (6 | ) | (6 | ) | |||||||||||||||
Total | $ | (1 | ) | $ | 1 | $ | 34 | ||||||||||||||
Fair value hedges | ' | ||||||||||||||||||||
Derivative instruments | ' | ||||||||||||||||||||
Schedule of gain (loss) on derivative instruments | ' | ||||||||||||||||||||
The following table presents the amounts recognized in income related to fair value hedges: | |||||||||||||||||||||
Derivatives designated as hedging instruments | Location of Gain | Amount of Gain Recognized in Income on Derivatives | |||||||||||||||||||
Recorded into Income | December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in millions) | |||||||||||||||||||||
Fixed rate debt | Interest and debt expense | $ | 57 | $ | 37 | $ | 41 | ||||||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Components of share-based compensation expense, net of forfeitures | ' | |||||||||||||
The components of the Company’s share-based compensation expense, net of forfeitures, were as follows: | ||||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
(in millions) | ||||||||||||||
Stock option | $ | 36 | $ | 40 | $ | 43 | ||||||||
Restricted stock(1) | 46 | 40 | 50 | |||||||||||
Restricted stock units | 61 | 54 | 52 | |||||||||||
Liability awards | 31 | 14 | 13 | |||||||||||
Total | $ | 174 | $ | 148 | $ | 158 | ||||||||
(1) Includes $10 million, $11 million and $19 million of expense related to EIP for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||
Weighted average assumptions used for stock option grants | ' | |||||||||||||
The following weighted average assumptions were used for stock option grants: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Dividend yield | 3 | % | 2 | % | 1.3 | % | ||||||||
Expected volatility | 41 | % | 45 | % | 44 | % | ||||||||
Risk-free interest rate | 0.9 | % | 0.8 | % | 2.3 | % | ||||||||
Expected life of stock option (years) | 5 | 5 | 5 | |||||||||||
Summary of stock option activity | ' | |||||||||||||
A summary of the Company’s stock option activity for 2013 is presented below (shares and intrinsic value in millions): | ||||||||||||||
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | |||||||||||
Outstanding at January 1 | 15 | $ | 43.91 | 5.9 | $ | 281 | ||||||||
Granted | 1.6 | 65.64 | ||||||||||||
Exercised | (7.1 | ) | 36.64 | |||||||||||
Forfeited | (0.1 | ) | 58.52 | |||||||||||
Outstanding at December 31 | 9.4 | 53.03 | 5.2 | 583 | ||||||||||
Exercisable at December 31 | 6 | 48.96 | 5 | 394 | ||||||||||
Summary of restricted stock award activity | ' | |||||||||||||
A summary of activity for the Company’s restricted stock awards, restricted stock units granted to employees (including advisors), compensation deferrals into stock and deferred share units for 2013 is presented below (shares in millions): | ||||||||||||||
Shares | Weighted Average Grant-date Fair Value | |||||||||||||
Non-vested shares at January 1 | 3.1 | $ | 38.42 | |||||||||||
Granted | 0.9 | 69.61 | ||||||||||||
Deferred | 0.3 | 82.51 | ||||||||||||
Vested | (1.4 | ) | 56.7 | |||||||||||
Forfeited | (0.1 | ) | 55.39 | |||||||||||
Non-vested shares at December 31 | 2.8 | 43.87 | ||||||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||
The following table presents the components of accumulated other comprehensive income, net of tax: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(in millions) | |||||||||
Net unrealized securities gains | $ | 655 | $ | 1,312 | |||||
Net unrealized derivatives losses | (1 | ) | (2 | ) | |||||
Foreign currency translation | (13 | ) | (25 | ) | |||||
Defined benefit plans | (46 | ) | (91 | ) | |||||
Total | $ | 595 | $ | 1,194 | |||||
Information related to amounts reclassified from AOCI | ' | ||||||||
The following table provides information related to amounts reclassified from AOCI for the year ended: | |||||||||
AOCI Reclassification | Location of Loss (Gain) Recognized in Income | 31-Dec-13 | |||||||
(in millions) | |||||||||
Net unrealized gains on Available-for-Sale securities | Net investment income | $ | (7 | ) | |||||
Tax expense | Income tax provision | 2 | |||||||
Net of tax | $ | (5 | ) | ||||||
Losses (gains) on cash flow hedges: | |||||||||
Interest rate contracts | Other revenues | $ | — | ||||||
Interest rate contracts | Interest and debt expense | (4 | ) | ||||||
Interest rate contracts | Distribution fees | — | |||||||
Swaptions | Net investment income | 5 | |||||||
Total before tax | 1 | ||||||||
Tax expense | Income tax provision | — | |||||||
Net of tax | $ | 1 | |||||||
Earnings_per_Share_Attributabl1
Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of Earnings per Common Share | ' | ||||||||||||
The computations of basic and diluted earnings per share attributable to Ameriprise Financial, Inc. common shareholders are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in millions, except per share amounts) | |||||||||||||
Numerator: | |||||||||||||
Income from continuing operations | $ | 1,478 | $ | 903 | $ | 1,070 | |||||||
Less: Net income (loss) attributable to noncontrolling interests | 141 | (128 | ) | (106 | ) | ||||||||
Income from continuing operations attributable to Ameriprise Financial | 1,337 | 1,031 | 1,176 | ||||||||||
Loss from discontinued operations, net of tax | (3 | ) | (2 | ) | (60 | ) | |||||||
Net income attributable to Ameriprise Financial | $ | 1,334 | $ | 1,029 | $ | 1,116 | |||||||
Denominator: | |||||||||||||
Basic: Weighted-average common shares outstanding | 203.2 | 218.7 | 241.4 | ||||||||||
Effect of potentially dilutive nonqualified stock options and other share-based awards | 3.9 | 4.1 | 4.9 | ||||||||||
Diluted: Weighted-average common shares outstanding | 207.1 | 222.8 | 246.3 | ||||||||||
Earnings per share attributable to Ameriprise Financial, Inc. common shareholders: | |||||||||||||
Basic: | |||||||||||||
Income from continuing operations | $ | 6.58 | $ | 4.71 | $ | 4.87 | |||||||
Loss from discontinued operations | (0.02 | ) | (0.01 | ) | (0.25 | ) | |||||||
Net income | $ | 6.56 | $ | 4.7 | $ | 4.62 | |||||||
Diluted: | |||||||||||||
Income from continuing operations | $ | 6.46 | $ | 4.63 | $ | 4.77 | |||||||
Loss from discontinued operations | (0.02 | ) | (0.01 | ) | (0.24 | ) | |||||||
Net income | $ | 6.44 | $ | 4.62 | $ | 4.53 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Components of income tax provision (benefit) | ' | |||||||||||
The components of income tax provision attributable to continuing operations were as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Current income tax | ||||||||||||
Federal | $ | 549 | $ | 229 | $ | 250 | ||||||
State and local | 24 | 25 | 21 | |||||||||
Foreign | 37 | 31 | 23 | |||||||||
Total current income tax | 610 | 285 | 294 | |||||||||
Deferred income tax | ||||||||||||
Federal | (102 | ) | 37 | 90 | ||||||||
State and local | (10 | ) | 15 | 1 | ||||||||
Foreign | (6 | ) | (2 | ) | (8 | ) | ||||||
Total deferred income tax | (118 | ) | 50 | 83 | ||||||||
Total income tax provision | $ | 492 | $ | 335 | $ | 377 | ||||||
Geographic sources of pretax income | ' | |||||||||||
The geographic sources of pretax income from continuing operations were as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
United States | $ | 1,640 | $ | 1,161 | $ | 1,350 | ||||||
Foreign | 330 | 77 | 97 | |||||||||
Total | $ | 1,970 | $ | 1,238 | $ | 1,447 | ||||||
Reconciliation of the income tax provision | ' | |||||||||||
The principal reasons that the aggregate income tax provision attributable to continuing operations is different from that computed by using the U.S. statutory rate of 35% were as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Tax at U.S. statutory rate | 35 | % | 35 | % | 35 | % | ||||||
Changes in taxes resulting from: | ||||||||||||
Dividend exclusion | (5.1 | ) | (5.9 | ) | (8.5 | ) | ||||||
Low income housing tax credits | (2.7 | ) | (3.0 | ) | (1.1 | ) | ||||||
Net income (loss) attributable to noncontrolling interests | (2.5 | ) | 3.6 | 2.6 | ||||||||
Foreign tax credits, net of addback | (0.9 | ) | (3.2 | ) | (2.2 | ) | ||||||
Tax-exempt interest income | (0.9 | ) | (1.7 | ) | (1.3 | ) | ||||||
State taxes, net of federal benefit | 0.5 | 2.5 | 1 | |||||||||
Taxes applicable to prior years | — | (2.5 | ) | 0.2 | ||||||||
Other, net | 1.6 | 2.3 | 0.4 | |||||||||
Income tax provision | 25 | % | 27.1 | % | 26.1 | % | ||||||
Components of Deferred income tax assets and liabilities | ' | |||||||||||
Deferred income tax assets and liabilities result from temporary differences between the assets and liabilities measured for GAAP reporting versus income tax return purposes. The significant components of the Company’s deferred income tax assets and liabilities, which are included net within other assets or other liabilities on the Consolidated Balance Sheets, were as follows: | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(in millions) | ||||||||||||
Deferred income tax assets | ||||||||||||
Liabilities for future policy benefits and claims | $ | 918 | $ | 1,320 | ||||||||
Investment related | 627 | 104 | ||||||||||
Deferred compensation | 335 | 310 | ||||||||||
Investment impairments and write-downs | 97 | 105 | ||||||||||
Loss carryovers and tax credit carryforwards | 39 | 39 | ||||||||||
Other | 61 | 54 | ||||||||||
Gross deferred income tax assets | 2,077 | 1,932 | ||||||||||
Less: valuation allowance | (19 | ) | (16 | ) | ||||||||
Total deferred income tax assets | 2,058 | 1,916 | ||||||||||
Deferred income tax liabilities | ||||||||||||
Deferred acquisition costs | 749 | 701 | ||||||||||
Net unrealized gains on Available-for-Sale securities | 352 | 708 | ||||||||||
Deferred sales inducement costs | 145 | 142 | ||||||||||
Depreciation expense | 138 | 164 | ||||||||||
Intangible assets | 84 | 74 | ||||||||||
Other | 113 | 82 | ||||||||||
Gross deferred income tax liabilities | 1,581 | 1,871 | ||||||||||
Net deferred income tax assets | $ | 477 | $ | 45 | ||||||||
Reconciliation of gross unrecognized tax benefits (expense) | ' | |||||||||||
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits were as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Balance at January 1 | $ | 116 | $ | 184 | $ | 75 | ||||||
Additions based on tax positions related to the current year | 22 | 2 | 1 | |||||||||
Additions for tax positions of prior years | 74 | 25 | 95 | |||||||||
Reductions for tax positions of prior years | (3 | ) | (83 | ) | (8 | ) | ||||||
Settlements | — | (12 | ) | 21 | ||||||||
Balance at December 31 | $ | 209 | $ | 116 | $ | 184 | ||||||
Income tax provision (benefit) amounts for items comprising other comprehensive income | ' | |||||||||||
The items comprising other comprehensive income (loss) are presented net of the following income tax provision (benefit) amounts: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Net unrealized securities gains (losses) | $ | (344 | ) | $ | 238 | $ | 90 | |||||
Net unrealized derivatives gains (losses) | — | 4 | (15 | ) | ||||||||
Defined benefit plans | 24 | (9 | ) | (28 | ) | |||||||
Foreign currency translation | 3 | 7 | (1 | ) | ||||||||
Net income tax provision (benefit) | $ | (317 | ) | $ | 240 | $ | 46 | |||||
Retirement_Plans_and_Profit_Sh1
Retirement Plans and Profit Sharing Arrangements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Defined Benefit Plans | ' | ||||||||||||||||
Components of Net Periodic Pension Cost | ' | ||||||||||||||||
The components of the net periodic benefit cost for all pension plans were as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(in millions) | |||||||||||||||||
Service cost | $ | 46 | $ | 41 | $ | 38 | |||||||||||
Interest cost | 23 | 24 | 23 | ||||||||||||||
Expected return on plan assets | (33 | ) | (30 | ) | (26 | ) | |||||||||||
Amortization of prior service costs | (1 | ) | (1 | ) | (1 | ) | |||||||||||
Amortization of net loss | 11 | 7 | 1 | ||||||||||||||
Other | 2 | 4 | 4 | ||||||||||||||
Net periodic benefit cost | $ | 48 | $ | 45 | $ | 39 | |||||||||||
Amounts recognized in the Consolidated Balance Sheets | ' | ||||||||||||||||
The following table provides the amounts recognized in the Consolidated Balance Sheets, which equal the funded status of the Company’s pension plans: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in millions) | |||||||||||||||||
Benefit liability | $ | (136 | ) | $ | (214 | ) | |||||||||||
Benefit asset | 4 | 8 | |||||||||||||||
Net amount recognized | $ | (132 | ) | $ | (206 | ) | |||||||||||
Accumulated benefit obligations that exceeded the fair value of plan assets | ' | ||||||||||||||||
The accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations that exceeded the fair value of plan assets were as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in millions) | |||||||||||||||||
Accumulated benefit obligation | $ | 514 | $ | 503 | |||||||||||||
Fair value of plan assets | 418 | 333 | |||||||||||||||
Projected benefit obligations that exceeded the fair value of plan assets | ' | ||||||||||||||||
The projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations that exceeded the fair value of plan assets were as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in millions) | |||||||||||||||||
Projected benefit obligation | $ | 554 | $ | 547 | |||||||||||||
Fair value of plan assets | 418 | 333 | |||||||||||||||
Weighted average assumptions used to determine benefit obligations | ' | ||||||||||||||||
The weighted average assumptions used to determine benefit obligations for pension plans were as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Discount rates | 4.06 | % | 3.45 | % | |||||||||||||
Rates of increase in compensation levels | 4.38 | 4.36 | |||||||||||||||
Assumptions used to calculate Net Periodic Benefit Cost | ' | ||||||||||||||||
The weighted average assumptions used to determine net periodic benefit cost for pension plans were as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Discount rates | 3.45 | % | 4.15 | % | 4.75 | % | |||||||||||
Rates of increase in compensation levels | 4.36 | 4.27 | 4.25 | ||||||||||||||
Expected long-term rates of return on assets | 7.62 | 7.69 | 8 | ||||||||||||||
Pension plan assets measured at fair value on a recurring basis | ' | ||||||||||||||||
The following tables present the Company’s pension plan assets measured at fair value on a recurring basis: | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in millions) | |||||||||||||||||
Equity securities: | |||||||||||||||||
U.S. large cap stocks | $ | 97 | $ | 43 | $ | — | $ | 140 | |||||||||
U.S. small cap stocks | 55 | 1 | — | 56 | |||||||||||||
Non-U.S. large cap stocks | 21 | 35 | — | 56 | |||||||||||||
Non-U.S. small cap stocks | 21 | — | — | 21 | |||||||||||||
Emerging markets | 14 | 23 | — | 37 | |||||||||||||
Debt securities: | |||||||||||||||||
U.S. investment grade bonds | 17 | 14 | — | 31 | |||||||||||||
U.S. high yield bonds | — | 21 | — | 21 | |||||||||||||
Non-U.S. investment grade bonds | — | 14 | — | 14 | |||||||||||||
Real estate investment trusts | — | — | 2 | 2 | |||||||||||||
Hedge funds | — | — | 20 | 20 | |||||||||||||
Pooled pension funds | — | 126 | — | 126 | |||||||||||||
Cash equivalents | 20 | — | — | 20 | |||||||||||||
Total | $ | 245 | $ | 277 | $ | 22 | $ | 544 | |||||||||
December 31, 2012 | |||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in millions) | |||||||||||||||||
Equity securities: | |||||||||||||||||
U.S. large cap stocks | $ | 89 | $ | 14 | $ | — | $ | 103 | |||||||||
U.S. small cap stocks | 43 | 1 | — | 44 | |||||||||||||
Non-U.S. large cap stocks | 17 | 30 | — | 47 | |||||||||||||
Emerging markets | 13 | 20 | — | 33 | |||||||||||||
Debt securities: | |||||||||||||||||
U.S. investment grade bonds | 20 | 12 | — | 32 | |||||||||||||
U.S. high yield bonds | — | 20 | — | 20 | |||||||||||||
Non-U.S. investment grade bonds | — | 15 | — | 15 | |||||||||||||
Real estate investment trusts | — | — | 12 | 12 | |||||||||||||
Hedge funds | — | — | 18 | 18 | |||||||||||||
Pooled pension funds | — | 104 | — | 104 | |||||||||||||
Cash equivalents | 9 | — | — | 9 | |||||||||||||
Total | $ | 191 | $ | 216 | $ | 30 | $ | 437 | |||||||||
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 measured at fair value on a recurring basis: | |||||||||||||||||
Asset Category | Real Estate Investment Trusts | Hedge Funds | |||||||||||||||
(in millions) | |||||||||||||||||
Balance at January 1, 2011 | $ | 8 | $ | 9 | |||||||||||||
Actual return on plan assets: | |||||||||||||||||
Relating to assets still held at the reporting date | 1 | — | |||||||||||||||
Purchases | 2 | 11 | |||||||||||||||
Sales | — | (8 | ) | ||||||||||||||
Balance at December 31, 2011 | 11 | 12 | |||||||||||||||
Actual return on plan assets: | |||||||||||||||||
Relating to assets still held at the reporting date | — | 1 | |||||||||||||||
Purchases | 1 | 5 | |||||||||||||||
Balance at December 31, 2012 | 12 | 18 | |||||||||||||||
Actual return on plan assets: | |||||||||||||||||
Relating to assets still held at the reporting date | — | 2 | |||||||||||||||
Purchases | 2 | — | |||||||||||||||
Sales | (12 | ) | — | ||||||||||||||
Balance at December 31, 2013 | $ | 2 | $ | 20 | |||||||||||||
Pension Plans | ' | ||||||||||||||||
Defined Benefit Plans | ' | ||||||||||||||||
Schedule of reconciliation of the changes in the defined postretirement benefit plan obligation | ' | ||||||||||||||||
The following tables provide a reconciliation of the changes in the benefit obligation and fair value of assets for the pension plans: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in millions) | |||||||||||||||||
Benefit obligation, January 1 | $ | 643 | $ | 546 | |||||||||||||
Service cost | 46 | 41 | |||||||||||||||
Interest cost | 23 | 24 | |||||||||||||||
Benefits paid | (7 | ) | (7 | ) | |||||||||||||
Actuarial (gain) loss | (8 | ) | 51 | ||||||||||||||
Settlements | (23 | ) | (15 | ) | |||||||||||||
Foreign currency rate changes | 2 | 3 | |||||||||||||||
Benefit obligation, December 31 | $ | 676 | $ | 643 | |||||||||||||
Reconciliation of the changes in the fair value of plan assets for the pension plans | ' | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in millions) | |||||||||||||||||
Fair value of plan assets, January 1 | $ | 437 | $ | 362 | |||||||||||||
Actual return on plan assets | 85 | 49 | |||||||||||||||
Employer contributions | 50 | 45 | |||||||||||||||
Benefits paid | (7 | ) | (7 | ) | |||||||||||||
Settlements | (23 | ) | (15 | ) | |||||||||||||
Foreign currency rate changes | 2 | 3 | |||||||||||||||
Fair value of plan assets, December 31 | $ | 544 | $ | 437 | |||||||||||||
Expected benefit payments to retirees under retirement plans | ' | ||||||||||||||||
The Company’s pension plans expect to make benefit payments to retirees as follows: | |||||||||||||||||
(in millions) | |||||||||||||||||
2014 | $ | 60 | |||||||||||||||
2015 | 64 | ||||||||||||||||
2016 | 61 | ||||||||||||||||
2017 | 66 | ||||||||||||||||
2018 | 69 | ||||||||||||||||
2019-2023 | 289 | ||||||||||||||||
Summary of unrealized losses included in other comprehensive income | ' | ||||||||||||||||
The following is a summary of unrealized losses included in other comprehensive income (loss) related to the Company’s defined benefit plans: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(in millions) | |||||||||||||||||
Net unrealized defined benefit losses at January 1 | $ | (91 | ) | $ | (75 | ) | $ | (24 | ) | ||||||||
Net gains (losses) | 71 | (23 | ) | (77 | ) | ||||||||||||
Prior service credit | (2 | ) | (2 | ) | (2 | ) | |||||||||||
Income tax (provision) benefit | (24 | ) | 9 | 28 | |||||||||||||
Net unrealized defined benefit losses at December 31 | $ | (46 | ) | $ | (91 | ) | $ | (75 | ) | ||||||||
Other Postretirement Benefits | ' | ||||||||||||||||
Defined Benefit Plans | ' | ||||||||||||||||
Schedule of reconciliation of the changes in the defined postretirement benefit plan obligation | ' | ||||||||||||||||
The following table provides a reconciliation of the changes in the defined benefit postretirement plan obligation: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in millions) | |||||||||||||||||
Benefit obligation, January 1 | $ | 20 | $ | 19 | |||||||||||||
Interest cost | 1 | 1 | |||||||||||||||
Benefits paid | (4 | ) | (4 | ) | |||||||||||||
Participant contributions | 2 | 3 | |||||||||||||||
Actuarial (gain) loss | (1 | ) | 1 | ||||||||||||||
Benefit obligation, December 31 | $ | 18 | $ | 20 | |||||||||||||
Weighted average assumptions used to determine benefit obligations | ' | ||||||||||||||||
The weighted average assumptions used to determine benefit obligations for other postretirement benefits were as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in millions) | |||||||||||||||||
Discount rates | 4.25 | % | 3.4 | % | |||||||||||||
Healthcare cost increase rates: | |||||||||||||||||
Following year | 6 | 6.5 | |||||||||||||||
Decreasing to the year 2016 | 5 | 5 | |||||||||||||||
Expected benefit payments to retirees under retirement plans | ' | ||||||||||||||||
The Company’s defined benefit postretirement plans expect to make benefit payments to retirees as follows: | |||||||||||||||||
(in millions) | |||||||||||||||||
2014 | $ | 2 | |||||||||||||||
2015 | 2 | ||||||||||||||||
2016 | 2 | ||||||||||||||||
2017 | 2 | ||||||||||||||||
2018 | 1 | ||||||||||||||||
2019-2023 | 7 | ||||||||||||||||
Commitments_Guarantees_and_Con1
Commitments, Guarantees and Contingencies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Aggregate minimum rentals under noncancelable operating leases | ' | |||||||
The Company is committed to pay aggregate minimum rentals under noncancelable operating leases for office facilities and equipment in future years as follows: | ||||||||
(in millions) | ||||||||
2014 | $ | 84 | ||||||
2015 | 77 | |||||||
2016 | 64 | |||||||
2017 | 61 | |||||||
2018 | 51 | |||||||
Thereafter | 88 | |||||||
Total (1) | $ | 425 | ||||||
Entities funding commitments | ' | |||||||
The following table presents the Company’s funding commitments as of December 31: | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Commercial mortgage loan commitments | $ | 71 | $ | 76 | ||||
Consumer mortgage loan commitments | 542 | 627 | ||||||
Consumer lines of credit | 4 | 5 | ||||||
Affordable housing partnerships | 137 | 144 | ||||||
Total funding commitments | $ | 754 | $ | 852 | ||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||
Components of income (loss) from discontinued operations | ' | |||||||||||
The components of loss from discontinued operations, net of tax, were as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Total net revenues | $ | — | $ | — | $ | 382 | ||||||
Income (loss) from discontinued operations | $ | (4 | ) | $ | 2 | $ | (124 | ) | ||||
Gain on sale | (1 | ) | (7 | ) | 26 | |||||||
Income tax benefit | (2 | ) | (3 | ) | (38 | ) | ||||||
Loss from discontinued operations, net of tax | $ | (3 | ) | $ | (2 | ) | $ | (60 | ) |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Schedule of segment reporting information | ' | ||||||||||||
The following tables summarize selected financial information by segment and reconcile segment totals to those reported on the consolidated financial statements: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(in millions) | |||||||||||||
Advice & Wealth Management | $ | 9,571 | $ | 8,962 | |||||||||
Asset Management | 7,223 | 6,267 | |||||||||||
Annuities | 98,354 | 91,587 | |||||||||||
Protection | 19,605 | 19,065 | |||||||||||
Corporate & Other | 9,823 | 8,848 | |||||||||||
Total assets | $ | 144,576 | $ | 134,729 | |||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in millions) | |||||||||||||
Operating net revenues: | |||||||||||||
Advice & Wealth Management | $ | 4,295 | $ | 3,873 | $ | 3,713 | |||||||
Asset Management | 3,169 | 2,891 | 2,897 | ||||||||||
Annuities | 2,583 | 2,524 | 2,630 | ||||||||||
Protection | 2,190 | 2,088 | 2,069 | ||||||||||
Corporate & Other | (11 | ) | 20 | 3 | |||||||||
Eliminations(1) | (1,369 | ) | (1,253 | ) | (1,262 | ) | |||||||
Total segment operating revenues | 10,857 | 10,143 | 10,050 | ||||||||||
Net realized gains | 7 | 7 | 6 | ||||||||||
Revenue attributable to CIEs | 345 | 71 | 136 | ||||||||||
Market impact on IUL benefits, net | (10 | ) | — | — | |||||||||
Integration and restructuring charges | — | (4 | ) | — | |||||||||
Total net revenues per consolidated statements of operations | $ | 11,199 | $ | 10,217 | $ | 10,192 | |||||||
(1) Represents the elimination of intersegment revenues recognized for the years ended December 31, 2013, 2012 and 2011 in each segment as follows: Advice and Wealth Management ($980, $901 and $930, respectively); Asset Management ($39, $43 and $42, respectively); Annuities ($307, $271 and $251, respectively); Protection ($40, $37 and $37, respectively); and Corporate & Other ($3, $1 and $2, respectively). | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in millions) | |||||||||||||
Operating earnings: | |||||||||||||
Advice & Wealth Management | $ | 598 | $ | 443 | $ | 406 | |||||||
Asset Management | 715 | 557 | 528 | ||||||||||
Annuities | 686 | 567 | 625 | ||||||||||
Protection | 365 | 398 | 386 | ||||||||||
Corporate & Other | (345 | ) | (270 | ) | (241 | ) | |||||||
Total segment operating earnings | 2,019 | 1,695 | 1,704 | ||||||||||
Net realized gains | 7 | 7 | 6 | ||||||||||
Net income (loss) attributable to noncontrolling interests | 141 | (128 | ) | (106 | ) | ||||||||
Market impact on variable annuity guaranteed benefits, net | (170 | ) | (265 | ) | (62 | ) | |||||||
Market impact on IUL benefits, net | (13 | ) | — | — | |||||||||
Integration and restructuring charges | (14 | ) | (71 | ) | (95 | ) | |||||||
Income from continuing operations before income tax provision per consolidated statements of operations | $ | 1,970 | $ | 1,238 | $ | 1,447 | |||||||
Quarterly_Financial_Data_Quart
Quarterly Financial Data Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | ' | ||||||||||||||||||||||||||||||||
Quarterly Financial Data (Unaudited) | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
31-Dec | 30-Sep | 30-Jun | 31-Mar | 31-Dec | 30-Sep | 30-Jun | 31-Mar | ||||||||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||||||||||||
Net revenues | $ | 2,946 | $ | 2,813 | $ | 2,749 | $ | 2,691 | $ | 2,674 | $ | 2,468 | $ | 2,514 | $ | 2,561 | |||||||||||||||||
Income from continuing operations before income tax provision | 479 | 602 | 402 | 487 | 418 | 199 | 299 | 322 | |||||||||||||||||||||||||
Income from continuing operations | 382 | 448 | 282 | 366 | 331 | 152 | 171 | 249 | |||||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | (2 | ) | 1 | (1 | ) | (1 | ) | 1 | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||||
Net income | 380 | 449 | 281 | 365 | 332 | 151 | 170 | 248 | |||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 84 | 67 | (40 | ) | 30 | (57 | ) | (22 | ) | (53 | ) | 4 | |||||||||||||||||||||
Net income attributable to Ameriprise Financial | $ | 296 | $ | 382 | $ | 321 | $ | 335 | $ | 389 | $ | 173 | $ | 223 | $ | 244 | |||||||||||||||||
Earnings per share attributable to Ameriprise Financial, Inc. common shareholders: | |||||||||||||||||||||||||||||||||
Basic | |||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 1.5 | $ | 1.9 | $ | 1.57 | $ | 1.61 | $ | 1.84 | $ | 0.81 | $ | 1.01 | $ | 1.08 | |||||||||||||||||
Income (loss) from discontinued operations | (0.01 | ) | — | — | — | 0.01 | (0.01 | ) | — | (0.01 | ) | ||||||||||||||||||||||
Net income | $ | 1.49 | $ | 1.9 | $ | 1.57 | $ | 1.61 | $ | 1.85 | $ | 0.8 | $ | 1.01 | $ | 1.07 | |||||||||||||||||
Diluted | |||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 1.47 | $ | 1.86 | $ | 1.54 | $ | 1.58 | $ | 1.8 | $ | 0.79 | $ | 0.99 | $ | 1.06 | |||||||||||||||||
Income (loss) from discontinued operations | (0.01 | ) | — | — | — | 0.01 | — | — | (0.01 | ) | |||||||||||||||||||||||
Net income | $ | 1.46 | $ | 1.86 | $ | 1.54 | $ | 1.58 | $ | 1.81 | $ | 0.79 | $ | 0.99 | $ | 1.05 | |||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||||||||||||
Basic | 198.3 | 201.3 | 204.9 | 208.4 | 210.8 | 215 | 221.7 | 227.3 | |||||||||||||||||||||||||
Diluted | 202.3 | 205.1 | 208.6 | 212.3 | 215.1 | 219.1 | 225.6 | 231.7 | |||||||||||||||||||||||||
Cash dividends declared per common share | $ | 0.52 | $ | 0.52 | $ | 0.52 | $ | 0.45 | $ | 0.45 | $ | 0.35 | $ | 0.35 | $ | — | |||||||||||||||||
Common share price: | |||||||||||||||||||||||||||||||||
High | 115.36 | 94.45 | 84.29 | 75.14 | 63.75 | 60.47 | 57.94 | 58.68 | |||||||||||||||||||||||||
Low | 89.37 | 80.49 | 69.35 | 63.59 | 55.66 | 47.84 | 45.17 | 49.14 | |||||||||||||||||||||||||
SCHEDULE_I_CONDENSED_FINANCIAL1
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ' | |||||||||||
Schedule I — Condensed Financial Information of Registrant | ||||||||||||
Condensed Statements of Operations | ||||||||||||
(Parent Company Only) | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Revenues | (in millions) | |||||||||||
Management and financial advice fees | $ | 4 | $ | 1 | $ | — | ||||||
Distribution fees | 1 | — | 9 | |||||||||
Net investment income | 33 | 29 | 18 | |||||||||
Other revenues | 7 | 9 | 30 | |||||||||
Total revenues | 45 | 39 | 57 | |||||||||
Banking and deposit interest expense | — | 3 | — | |||||||||
Total net revenues | 45 | 36 | 57 | |||||||||
Expenses | ||||||||||||
Benefits, claims, losses and settlement expenses | 19 | — | — | |||||||||
Distribution expenses | — | (5 | ) | 5 | ||||||||
Interest and debt expense | 123 | 94 | 95 | |||||||||
General and administrative expense | 221 | 255 | 223 | |||||||||
Total expenses | 363 | 344 | 323 | |||||||||
Pretax loss before equity in earnings of subsidiaries | (318 | ) | (308 | ) | (266 | ) | ||||||
Income tax benefit | (85 | ) | (104 | ) | (102 | ) | ||||||
Loss before equity in earnings of subsidiaries | (233 | ) | (204 | ) | (164 | ) | ||||||
Equity in earnings of subsidiaries excluding discontinued operations | 1,570 | 1,235 | 1,340 | |||||||||
Net income from continuing operations | 1,337 | 1,031 | 1,176 | |||||||||
Loss from discontinued operations, net of tax | (3 | ) | (2 | ) | (60 | ) | ||||||
Net income | $ | 1,334 | $ | 1,029 | $ | 1,116 | ||||||
See Notes to Condensed Financial Information of Registrant. | ||||||||||||
Schedule I — Condensed Financial Information of Registrant | ||||||||||||
Condensed Statements of Comprehensive Income | ||||||||||||
(Parent Company Only) | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Net income | $ | 1,334 | $ | 1,029 | $ | 1,116 | ||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Foreign currency translation adjustment | 12 | 21 | (2 | ) | ||||||||
Net unrealized gains (losses) on securities: | ||||||||||||
Net unrealized securities gains (losses) arising during the period | (971 | ) | 588 | 376 | ||||||||
Reclassification of net securities gains included in net income | (5 | ) | (5 | ) | — | |||||||
Impact on deferred acquisition costs, deferred sales inducement costs, benefit reserves and reinsurance recoverables | 319 | (154 | ) | (193 | ) | |||||||
Total net unrealized gains (losses) on securities | (657 | ) | 429 | 183 | ||||||||
Net unrealized gains (losses) on derivatives: | ||||||||||||
Net unrealized derivative gains (losses) arising during the period | — | 10 | (7 | ) | ||||||||
Reclassification of net derivative losses (gains) included in net income | 1 | (1 | ) | (22 | ) | |||||||
Total net unrealized gains (losses) on derivatives | 1 | 9 | (29 | ) | ||||||||
Defined benefit plans: | ||||||||||||
Prior service credit | (1 | ) | (1 | ) | (1 | ) | ||||||
Net income (loss) arising during the period | 46 | (15 | ) | (50 | ) | |||||||
Total defined benefit plans | 45 | (16 | ) | (51 | ) | |||||||
Total other comprehensive income (loss), net of tax | (599 | ) | 443 | 101 | ||||||||
Total comprehensive income | $ | 735 | $ | 1,472 | $ | 1,217 | ||||||
See Notes to Condensed Financial Information of Registrant. | ||||||||||||
Schedule I — Condensed Financial Information of Registrant | ||||||||||||
Condensed Balance Sheet | ||||||||||||
(Parent Company Only) | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(in millions, except share amounts) | ||||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 925 | $ | 900 | ||||||||
Investments | 743 | 894 | ||||||||||
Loans to subsidiaries | 457 | 467 | ||||||||||
Due from subsidiaries | 416 | 225 | ||||||||||
Receivables | 64 | 12 | ||||||||||
Land, buildings, equipment, and software, net of accumulated depreciation of $805 and $756, respectively | 250 | 251 | ||||||||||
Investments in subsidiaries | 7,652 | 8,200 | ||||||||||
Other assets | 1,224 | 1,350 | ||||||||||
Total assets | $ | 11,731 | $ | 12,299 | ||||||||
Liabilities and Shareholders’ Equity | ||||||||||||
Liabilities: | ||||||||||||
Accounts payable and accrued expenses | $ | 191 | $ | 198 | ||||||||
Due to subsidiaries | 405 | 330 | ||||||||||
Debt | 2,720 | 2,403 | ||||||||||
Other liabilities | 560 | 612 | ||||||||||
Total liabilities | 3,876 | 3,543 | ||||||||||
Shareholders’ Equity: | ||||||||||||
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 316,816,851 and 309,399,529, respectively) | 3 | 3 | ||||||||||
Additional paid-in capital | 6,929 | 6,503 | ||||||||||
Retained earnings | 7,289 | 6,381 | ||||||||||
Treasury shares, at cost (124,698,544 and 105,456,535 shares, respectively) | (6,961 | ) | (5,325 | ) | ||||||||
Accumulated other comprehensive income, net of tax, including amounts applicable to equity investments in subsidiaries | 595 | 1,194 | ||||||||||
Total shareholders’ equity | 7,855 | 8,756 | ||||||||||
Total liabilities and equity | $ | 11,731 | $ | 12,299 | ||||||||
See Notes to Condensed Financial Information of Registrant. | ||||||||||||
Schedule I — Condensed Financial Information of Registrant | ||||||||||||
Condensed Statements of Cash Flows | ||||||||||||
(Parent Company Only) | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Cash Flows from Operating Activities | ||||||||||||
Net income | $ | 1,334 | $ | 1,029 | $ | 1,116 | ||||||
Equity in earnings of subsidiaries excluding discontinued operations | (1,570 | ) | (1,235 | ) | (1,340 | ) | ||||||
Loss from discontinued operations, net of tax | 3 | 2 | 60 | |||||||||
Dividends received from subsidiaries | 1,163 | 1,366 | 1,210 | |||||||||
Other operating activities, primarily with subsidiaries | (34 | ) | 197 | (231 | ) | |||||||
Net cash provided by operating activities | 896 | 1,359 | 815 | |||||||||
Cash Flows from Investing Activities | ||||||||||||
Available-for-Sale securities: | ||||||||||||
Proceeds from sales | 2 | — | — | |||||||||
Maturities, sinking fund payments and calls | 191 | 30 | 239 | |||||||||
Purchases | (109 | ) | — | (22 | ) | |||||||
Proceeds from sale of other investments | 43 | 1 | — | |||||||||
Purchase of other investments | (1 | ) | (55 | ) | — | |||||||
Purchase of land, buildings, equipment and software | (54 | ) | (38 | ) | (56 | ) | ||||||
Contributions to subsidiaries | (106 | ) | (131 | ) | (128 | ) | ||||||
Return of capital from subsidiaries | 470 | 347 | 22 | |||||||||
Proceeds from sale of business | — | — | 150 | |||||||||
Repayment of loans from subsidiaries | 1,420 | 1,150 | 1,252 | |||||||||
Issuance of loans to subsidiaries | (1,412 | ) | (994 | ) | (1,312 | ) | ||||||
Other, net | 20 | (16 | ) | 2 | ||||||||
Net cash provided by investing activities | 464 | 294 | 147 | |||||||||
Cash Flows from Financing Activities | ||||||||||||
Dividends paid to shareholders | (401 | ) | (305 | ) | (212 | ) | ||||||
Repurchase of common shares | (1,583 | ) | (1,381 | ) | (1,495 | ) | ||||||
Cash paid for purchased options with deferred premiums | (4 | ) | — | — | ||||||||
Cash received for purchased options with deferred premiums | 23 | — | — | |||||||||
Issuances of debt, net of issuance costs | 744 | — | — | |||||||||
Repayments of debt | (350 | ) | — | (14 | ) | |||||||
Exercise of stock options | 118 | 160 | 66 | |||||||||
Excess tax benefits from share-based compensation | 120 | 64 | 90 | |||||||||
Other, net | (2 | ) | (3 | ) | (1 | ) | ||||||
Net cash used in financing activities | (1,335 | ) | (1,465 | ) | (1,566 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | 25 | 188 | (604 | ) | ||||||||
Cash and cash equivalents at beginning of year | 900 | 712 | 1,316 | |||||||||
Cash and cash equivalents at end of year | $ | 925 | $ | 900 | $ | 712 | ||||||
Supplemental Disclosures: | ||||||||||||
Interest paid on debt | $ | 129 | $ | 139 | $ | 139 | ||||||
Income taxes paid, net | 354 | 170 | 334 | |||||||||
Non-cash capital transactions from subsidiaries | — | — | (850 | ) | ||||||||
Non-cash financing activity: | ||||||||||||
Dividends declared but not paid | — | — | 62 | |||||||||
See Notes to Condensed Financial Information of Registrant. |
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' | ' |
Reclassification of loss adjustment expense | ' | ' | $53 | $49 |
Pretax benefit resulted from an adjustment to valuation of reserves, net of DAC and DSIC amortization | 41 | ' | ' | ' |
DSIC amortization expense | 11 | ' | ' | ' |
Decrease to tax expense resulting from out-of-period correction for deferred tax balance | 16 | ' | ' | ' |
Increase to tax expense resulting from out-of-period correction for tax item related to securities lending activities | ' | $32 | ' | ' |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Land, Buildings, Equipment and Software | ' | ' | ' |
Land, buildings, equipment and software, net of accumulated depreciation | $705,000,000 | $753,000,000 | ' |
Accumulated depreciation | 1,300,000,000 | 1,200,000,000 | ' |
Depreciation and amortization expense for the year | 144,000,000 | 152,000,000 | 143,000,000 |
Deferred Tax Assets, Valuation Allowance | 19,000,000 | 16,000,000 | ' |
Principles of Consolidation | ' | ' | ' |
Minimum percentage of voting interest required to be held to consolidate an entity | 50.00% | ' | ' |
Maximum percentage of voting interest required to be held to be accounted for, under the cost method | 20.00% | ' | ' |
Financing Receivables | ' | ' | ' |
Period of non payment after which a loan is placed on nonaccrual status | '90 days | ' | ' |
Period for charging off revolving unsecured consumer lines | '180 days | ' | ' |
Period for charging off closed-end consumer loans, other than loans secured by one to four family properties | ' | '120 days | ' |
Restricted and segregated cash and investments | ' | ' | ' |
Restricted Cash and Cash Equivalents | 27,000,000 | 107,000,000 | ' |
Amounts segregated under federal and other regulations | $2,300,000,000 | $2,400,000,000 | ' |
Maximum | ' | ' | ' |
Land, Buildings, Equipment and Software | ' | ' | ' |
Amortization periods | '39 years | ' | ' |
Principles of Consolidation | ' | ' | ' |
Percentage of voting interest required to be held to be accounted for under the equity method | 50.00% | ' | ' |
Minimum | ' | ' | ' |
Land, Buildings, Equipment and Software | ' | ' | ' |
Amortization periods | '3 years | ' | ' |
Principles of Consolidation | ' | ' | ' |
Percentage of voting interest required to be held to be accounted for under the equity method | 20.00% | ' | ' |
Recent_Accounting_Pronouncemen1
Recent Accounting Pronouncements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Recent Accounting Pronouncements | ' | ' | ' | ' |
Retained earnings | $7,289 | $6,381 | ' | ' |
Accumulated other comprehensive income, net of tax | 595 | 1,194 | ' | ' |
Total equity | 9,232 | 9,712 | 9,694 | 9,950 |
Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts | Restatement for new accounting standard | ' | ' | ' | ' |
Recent Accounting Pronouncements | ' | ' | ' | ' |
Retained earnings | ' | ' | -1,400 | ' |
Accumulated other comprehensive income, net of tax | ' | ' | 113 | ' |
Total equity | ' | ' | ($1,300) | ' |
Consolidated_Investment_Entiti2
Consolidated Investment Entities (Details) (USD $) | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
subsidiary | Consolidated Investment Entities: | Consolidated Investment Entities: | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Property fund sub funds [Member] | |
Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | subsidiary | ||||
Consolidated Investment Entities: | Consolidated Investment Entities: | Corporate debt securities | Corporate debt securities | Common stocks | Common stocks | Other structured investments | Other structured investments | Syndicated loans | Syndicated loans | Consolidated Investment Entities: | Consolidated Investment Entities: | Corporate debt securities | Corporate debt securities | Common stocks | Common stocks | Other structured investments | Other structured investments | Syndicated loans | Syndicated loans | Consolidated Investment Entities: | Consolidated Investment Entities: | Corporate debt securities | Corporate debt securities | Common stocks | Common stocks | Other structured investments | Other structured investments | Syndicated loans | Syndicated loans | Consolidated Investment Entities: | Consolidated Investment Entities: | Corporate debt securities | Corporate debt securities | Common stocks | Common stocks | Other structured investments | Other structured investments | Syndicated loans | Syndicated loans | |||||
Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | Consolidated Investment Entities: | |||||||||||||
Assets and liabilities measured at fair value on a recurring basis: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of variable interest or voting rights entities consolidated [Line Items] | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 |
Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments: | ' | ' | ' | $150 | $91 | $0 | $0 | $147 | $91 | $3 | $0 | $0 | $0 | $4,468 | $4,060 | $200 | $251 | $31 | $32 | $33 | $57 | $4,204 | $3,720 | $384 | $219 | $2 | $3 | $14 | $14 | $0 | $0 | $368 | $202 | $5,002 | $4,370 | $202 | $254 | $192 | $137 | $36 | $57 | $4,572 | $3,922 | ' |
Receivables | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 32 | 77 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 32 | 77 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other assets | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 13 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | 1,936 | 1,214 | ' | ' | ' | ' | ' | ' | ' | ' | 1,949 | 1,216 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of assets | ' | ' | ' | 150 | 91 | ' | ' | ' | ' | ' | ' | ' | ' | 4,513 | 4,139 | ' | ' | ' | ' | ' | ' | ' | ' | 2,320 | 1,433 | ' | ' | ' | ' | ' | ' | ' | ' | 6,983 | 5,663 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt | ' | 4,804 | 4,450 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 4,804 | 4,450 | ' | ' | ' | ' | ' | ' | ' | ' | 4,804 | 4,450 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total other liabilities | ' | 193 | 166 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 193 | 166 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 193 | 166 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total liabilities at fair value | ' | ' | ' | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | $193 | $166 | ' | ' | ' | ' | ' | ' | ' | ' | $4,804 | $4,450 | ' | ' | ' | ' | ' | ' | ' | ' | $4,997 | $4,616 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of variable interest or voting rights entities liquidated | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated_Investment_Entiti3
Consolidated Investment Entities (Details 2) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Summary of changes in Level 3 assets held by consolidated investment entities | ' | ' | ' | |||
Transfers out of Level 3 | ' | ($146,000,000) | ($3,900,000,000) | |||
Other revenues | ' | ' | ' | |||
Summary of changes in Level 3 assets held by consolidated investment entities | ' | ' | ' | |||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Investment Income | ' | ' | 20,000,000 | |||
Net investment income | ' | ' | ' | |||
Summary of changes in Level 3 assets held by consolidated investment entities | ' | ' | ' | |||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Investment Income | ' | ' | 1,000,000 | |||
Consolidated Investment Entities | ' | ' | ' | |||
Summary of changes in Level 3 assets held by consolidated investment entities | ' | ' | ' | |||
Balance, at the end of the period | ' | ' | -4,712,000,000 | |||
Transfers between Level 1 and Level 2 | 0 | ' | ' | |||
Corporate debt securities | Consolidated Investment Entities | ' | ' | ' | |||
Summary of changes in Level 3 assets held by consolidated investment entities | ' | ' | ' | |||
Balance, at the beginning of the period | 3,000,000 | 4,000,000 | 6,000,000 | |||
Purchases, Net-Assets | 1,000,000 | ' | 3,000,000 | |||
Sales, Net-Assets | -1,000,000 | ' | -2,000,000 | |||
Settlements, Net-Assets | -1,000,000 | -1,000,000 | -1,000,000 | |||
Transfers out of Level 3 | ' | ' | -2,000,000 | |||
Balance, at the end of the period | 2,000,000 | 3,000,000 | 4,000,000 | |||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Investment Income | ' | 0 | 0 | |||
Common Stocks | Consolidated Investment Entities | ' | ' | ' | |||
Summary of changes in Level 3 assets held by consolidated investment entities | ' | ' | ' | |||
Balance, at the beginning of the period | 14,000,000 | 13,000,000 | 11,000,000 | |||
Total Gains (Losses) Included in Net Income-Assets | 1,000,000 | [1] | -1,000,000 | [1] | -6,000,000 | [1] |
Purchases, Net-Assets | 0 | 7,000,000 | ' | |||
Sales, Net-Assets | -3,000,000 | -5,000,000 | -4,000,000 | |||
Transfers into Level 3 | 21,000,000 | 15,000,000 | 29,000,000 | |||
Transfers out of Level 3 | -19,000,000 | -15,000,000 | -29,000,000 | |||
Balance, at the end of the period | 14,000,000 | 14,000,000 | 13,000,000 | |||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Investment Income | -2,000,000 | [1] | 0 | 3,000,000 | [1] | |
Other structured investments | Consolidated Investment Entities | ' | ' | ' | |||
Summary of changes in Level 3 assets held by consolidated investment entities | ' | ' | ' | |||
Balance, at the beginning of the period | ' | ' | 22,000,000 | |||
Total Gains (Losses) Included in Net Income-Assets | ' | ' | 1,000,000 | [1] | ||
Purchases, Net-Assets | ' | ' | 3,000,000 | |||
Transfers out of Level 3 | ' | ' | -24,000,000 | |||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Investment Income | ' | 0 | 0 | |||
Syndicated loans | Consolidated Investment Entities | ' | ' | ' | |||
Summary of changes in Level 3 assets held by consolidated investment entities | ' | ' | ' | |||
Balance, at the beginning of the period | 202,000,000 | 342,000,000 | ' | |||
Total Gains (Losses) Included in Net Income-Assets | -1,000,000 | [1] | 11,000,000 | [1] | 12,000,000 | [1] |
Purchases, Net-Assets | 417,000,000 | 91,000,000 | 208,000,000 | |||
Sales, Net-Assets | -63,000,000 | -14,000,000 | -40,000,000 | |||
Settlements, Net-Assets | -51,000,000 | -87,000,000 | -137,000,000 | |||
Transfers into Level 3 | 320,000,000 | 255,000,000 | 615,000,000 | |||
Transfers out of Level 3 | -456,000,000 | -396,000,000 | -292,000,000 | |||
Balance, at the end of the period | 368,000,000 | 202,000,000 | 342,000,000 | |||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Investment Income | -2,000,000 | [1] | ' | -5,000,000 | [1] | |
Other assets | Consolidated Investment Entities | ' | ' | ' | |||
Summary of changes in Level 3 assets held by consolidated investment entities | ' | ' | ' | |||
Balance, at the beginning of the period | 1,214,000,000 | 1,108,000,000 | 887,000,000 | |||
Total Gains (Losses) Included in Net Income-Assets | 81,000,000 | [2] | -78,000,000 | [2] | -13,000,000 | [3] |
Total Gains (Losses) Included in Other Comprehensive loss-Assets | 39,000,000 | 28,000,000 | 10,000,000 | |||
Purchases, Net-Assets | 689,000,000 | 328,000,000 | 299,000,000 | |||
Sales, Net-Assets | -86,000,000 | -172,000,000 | -81,000,000 | |||
Settlements, Net-Assets | ' | ' | 1,000,000 | |||
Transfers into Level 3 | 8,000,000 | ' | 7,000,000 | |||
Transfers out of Level 3 | -9,000,000 | ' | -8,000,000 | |||
Balance, at the end of the period | 1,936,000,000 | 1,214,000,000 | 1,108,000,000 | |||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Investment Income | 67,000,000 | [2] | -98,000,000 | [2] | 19,000,000 | [4] |
Debt | Consolidated Investment Entities | ' | ' | ' | |||
Summary of changes in Level 3 assets held by consolidated investment entities | ' | ' | ' | |||
Balance, at the beginning of the period | -4,450,000,000 | -4,712,000,000 | -5,171,000,000 | |||
Total Gains (Losses) Included in Net Income-Liabilities | -53,000,000 | [1] | -316,000,000 | [1] | -89,000,000 | [1] |
Issues, Net-Liabilities | -1,330,000,000 | ' | -27,000,000 | |||
Settlements, Net-Liabilities | 1,029,000,000 | 578,000,000 | 575,000,000 | |||
Balance, at the end of the period | -4,804,000,000 | -4,450,000,000 | -4,712,000,000 | |||
Changes in unrealized gains/ (losses) included in income relating to liabilities held | ($25,000,000) | [1] | ($315,000,000) | [1] | ($64,000,000) | [1] |
[1] | Included in net investment income in the Consolidated Statements of Operations. | |||||
[2] | Included in other revenues in the Consolidated Statements of Operations | |||||
[3] | Included in other revenues in the Consolidated Statements of Operations. | |||||
[4] | Represents a $20 million gain included in other revenues and a $1 million loss included in net investment income in the Consolidated Statements of Operations. |
Consolidated_Investment_Entiti4
Consolidated Investment Entities (Details 3) (Consolidated Investment Entities, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of the significant unobservable inputs | ' | ' |
Debt | $4,804 | $4,450 |
Other assets | Minimum | Discounted cash flow/market comparables | ' | ' |
Summary of the significant unobservable inputs | ' | ' |
Equivalent yield (as a percent) | 4.40% | 4.10% |
Expected rental value (per square foot) | 5 | 4 |
Other assets | Maximum | Discounted cash flow/market comparables | ' | ' |
Summary of the significant unobservable inputs | ' | ' |
Equivalent yield (as a percent) | 12.40% | 12.90% |
Expected rental value (per square foot) | 373 | 309 |
Other assets | Weighted Average | Discounted cash flow/market comparables | ' | ' |
Summary of the significant unobservable inputs | ' | ' |
Equivalent yield (as a percent) | 7.40% | 7.20% |
Expected rental value (per square foot) | 33 | 32 |
Debt | Minimum | Discounted cash flow valuation technique | ' | ' |
Summary of the significant unobservable inputs | ' | ' |
Annual default rate (as a percent) | 2.50% | 2.50% |
Discount rate (as a percent) | 1.50% | 1.60% |
Constant prepayment rate (as a percent) | 5.00% | 5.00% |
Loss recovery (as a percent) | 36.40% | 36.40% |
Debt | Maximum | Discounted cash flow valuation technique | ' | ' |
Summary of the significant unobservable inputs | ' | ' |
Annual default rate (as a percent) | 2.50% | 4.50% |
Discount rate (as a percent) | 8.30% | 30.00% |
Constant prepayment rate (as a percent) | 10.00% | 10.00% |
Loss recovery (as a percent) | 63.60% | 63.60% |
Debt | Weighted Average | Discounted cash flow valuation technique | ' | ' |
Summary of the significant unobservable inputs | ' | ' |
Annual default rate (as a percent) | 2.50% | 2.50% |
Discount rate (as a percent) | 2.70% | 2.90% |
Constant prepayment rate (as a percent) | 9.80% | 9.60% |
Loss recovery (as a percent) | 62.30% | 62.00% |
Level 3 | Recurring | ' | ' |
Summary of the significant unobservable inputs | ' | ' |
Other assets | 1,936 | 1,214 |
Debt | $4,804 | $4,450 |
Consolidated_Investment_Entiti5
Consolidated Investment Entities (Details 4) (Consolidated Investment Entities, USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Net investment income | Net investment income | Net investment income | Minimum | Maximum | ||
Syndicated loans | ' | ' | ' | ' | ' | ' | ' |
Unpaid principal balance | $4,628 | $4,023 | ' | ' | ' | ' | ' |
Excess estimated unpaid principal over fair value | -56 | -101 | ' | ' | ' | ' | ' |
Fair value | 4,572 | 3,922 | ' | ' | ' | ' | ' |
Fair value of loans more than 90 days past due | 23 | 34 | ' | ' | ' | ' | ' |
Fair value of loans in nonaccrual status | 23 | 34 | ' | ' | ' | ' | ' |
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both | 33 | 38 | ' | ' | ' | ' | ' |
Debt: | ' | ' | ' | ' | ' | ' | ' |
Unpaid principal balance | 5,032 | 4,757 | ' | ' | ' | ' | ' |
Excess estimated unpaid principal over fair value | -228 | -307 | ' | ' | ' | ' | ' |
Fair value | 4,804 | 4,450 | ' | ' | ' | ' | ' |
Total net losses recognized in net investment income related to changes in the fair value of financial assets and liabilities for which the fair value option was elected | ' | ' | 28 | -85 | -122 | ' | ' |
Stated interest rate according to the terms of CDO structure (as a percent) | ' | ' | ' | ' | ' | 0.00% | 9.20% |
Fair value of floating rate debt of consolidated pooled investment vehicles managed by Threadneedle | 932 | 531 | ' | ' | ' | ' | ' |
Fair value of derivative instruments | $5 | $17 | ' | ' | ' | ' | ' |
Effective interest rate reflecting the impact of derivative contracts (as a percent) | 4.20% | 4.80% | ' | ' | ' | ' | ' |
Consolidated_Investment_Entiti6
Consolidated Investment Entities (Details 5) (Consolidated Investment Entities, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt and stated interest rates | ' | ' |
Long-term Debt | $5,736 | $4,981 |
Debt of consolidated CDOs due 2016-2025 | ' | ' |
Debt and stated interest rates | ' | ' |
Long-term Debt | 4,804 | 4,450 |
Weighted Average Interest Rate (as a percent) | 1.00% | 0.90% |
Floating rate revolving credit borrowings due 2014 | ' | ' |
Debt and stated interest rates | ' | ' |
Long-term Debt | 305 | 309 |
Weighted Average Interest Rate (as a percent) | 2.60% | 2.60% |
Floating rate revolving credit borrowings due 2015 | ' | ' |
Debt and stated interest rates | ' | ' |
Long-term Debt | 97 | 104 |
Weighted Average Interest Rate (as a percent) | 2.40% | 2.40% |
Floating rate revolving credit borrowings due 2017 | ' | ' |
Debt and stated interest rates | ' | ' |
Long-term Debt | 120 | 118 |
Weighted Average Interest Rate (as a percent) | 4.50% | 4.50% |
Floating rate revolving credit borrowings due 2018 | ' | ' |
Debt and stated interest rates | ' | ' |
Long-term Debt | 377 | ' |
Weighted Average Interest Rate (as a percent) | 3.50% | ' |
Floating rate revolving credit borrowings due 2019 | ' | ' |
Debt and stated interest rates | ' | ' |
Long-term Debt | $33 | ' |
Weighted Average Interest Rate (as a percent) | 3.00% | ' |
Consolidated_Investment_Entiti7
Consolidated Investment Entities Consolidated Investment Entities (Details 6) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Debt and stated interest rates | ' |
2014 | $0 |
2015 | 350 |
2016 | 0 |
2017 | 0 |
2018 | 0 |
Thereafter | 2,294 |
Total future maturities | 2,644 |
Consolidated Investment Entities | ' |
Debt and stated interest rates | ' |
2014 | 305 |
2015 | 97 |
2016 | 20 |
2017 | 708 |
2018 | 377 |
Thereafter | 4,457 |
Total future maturities | $5,964 |
Investments_Details
Investments (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Summary of net investment income | ' | ' | ' | ||
Investment income on fixed maturities | $1,575 | $1,768 | $1,917 | ||
Net realized gains (losses) | 7 | 7 | 6 | ||
Affordable housing partnerships | -12 | -25 | -32 | ||
Other | 99 | 73 | 64 | ||
Consolidated investment entities | 220 | 110 | 91 | ||
Net investment income | 1,889 | 1,933 | 2,046 | ||
Ameriprise Financial | ' | ' | ' | ||
Investments | 35,735 | 36,877 | ' | ||
Available-for-Sale securities: | ' | ' | ' | ||
Amortized Cost | 28,839 | 28,510 | ' | ||
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInvestments | 1,811 | 3,123 | ' | ||
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInvestments | -340 | -161 | ' | ||
Fair Value | 30,310 | 31,472 | ' | ||
Non-Credit OTTI | -26 | [1] | -56 | [1] | ' |
Ameriprise Financial | Corporate debt securities | ' | ' | ' | ||
Available-for-Sale securities: | ' | ' | ' | ||
Amortized Cost | 16,233 | 16,628 | ' | ||
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInvestments | 1,330 | 2,196 | ' | ||
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInvestments | -97 | -9 | ' | ||
Fair Value | 17,466 | 18,815 | ' | ||
Non-Credit OTTI | 3 | [1] | 0 | [1] | ' |
Ameriprise Financial | Residential mortgage backed securities | ' | ' | ' | ||
Available-for-Sale securities: | ' | ' | ' | ||
Amortized Cost | 6,114 | 5,280 | ' | ||
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInvestments | 147 | 261 | ' | ||
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInvestments | -137 | -112 | ' | ||
Fair Value | 6,124 | 5,429 | ' | ||
Non-Credit OTTI | -33 | [1] | -58 | [1] | ' |
Ameriprise Financial | Commercial mortgage backed securities | ' | ' | ' | ||
Available-for-Sale securities: | ' | ' | ' | ||
Amortized Cost | 2,612 | 3,120 | ' | ||
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInvestments | 141 | 299 | ' | ||
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInvestments | -12 | 0 | ' | ||
Fair Value | 2,741 | 3,419 | ' | ||
Non-Credit OTTI | 0 | [1] | 0 | [1] | ' |
Ameriprise Financial | Asset backed securities | ' | ' | ' | ||
Available-for-Sale securities: | ' | ' | ' | ||
Amortized Cost | 1,459 | 1,204 | ' | ||
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInvestments | 53 | 75 | ' | ||
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInvestments | -8 | -4 | ' | ||
Fair Value | 1,504 | 1,275 | ' | ||
Non-Credit OTTI | 0 | [1] | 0 | [1] | ' |
Ameriprise Financial | State and municipal obligations | ' | ' | ' | ||
Available-for-Sale securities: | ' | ' | ' | ||
Amortized Cost | 2,132 | 2,034 | ' | ||
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInvestments | 106 | 241 | ' | ||
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInvestments | -78 | -36 | ' | ||
Fair Value | 2,160 | 2,239 | ' | ||
Non-Credit OTTI | 0 | [1] | 0 | [1] | ' |
Ameriprise Financial | U.S. government and agencies obligations | ' | ' | ' | ||
Available-for-Sale securities: | ' | ' | ' | ||
Amortized Cost | 47 | 49 | ' | ||
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInvestments | 5 | 9 | ' | ||
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInvestments | 0 | 0 | ' | ||
Fair Value | 52 | 58 | ' | ||
Non-Credit OTTI | 0 | [1] | 0 | [1] | ' |
Ameriprise Financial | Foreign government bonds and obligations | ' | ' | ' | ||
Available-for-Sale securities: | ' | ' | ' | ||
Amortized Cost | 235 | 188 | ' | ||
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInvestments | 18 | 36 | ' | ||
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInvestments | -8 | 0 | ' | ||
Fair Value | 245 | 224 | ' | ||
Non-Credit OTTI | 0 | [1] | 0 | [1] | ' |
Ameriprise Financial | Common Stocks | ' | ' | ' | ||
Available-for-Sale securities: | ' | ' | ' | ||
Amortized Cost | 7 | 7 | ' | ||
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInvestments | 11 | 6 | ' | ||
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInvestments | 0 | 0 | ' | ||
Fair Value | 18 | 13 | ' | ||
Non-Credit OTTI | 4 | [1] | 2 | [1] | ' |
Available-for-Sale Securities, at fair value | Ameriprise Financial | ' | ' | ' | ||
Investments | 30,310 | 31,472 | ' | ||
Mortgage Loans | Ameriprise Financial | ' | ' | ' | ||
Investments | 3,510 | 3,609 | ' | ||
Policy and certificate loans | Ameriprise Financial | ' | ' | ' | ||
Investments | 774 | 754 | ' | ||
Other Investments | Ameriprise Financial | ' | ' | ' | ||
Investments | $1,141 | $1,042 | ' | ||
[1] | Represents the amount of other-than-temporary impairment (bOTTIb) losses in accumulated other comprehensive income. Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period. |
Investments_Details_2
Investments (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Security Owned and Pledged as Collateral, Fair Value | $2,300,000,000 | $1,300,000,000 |
Fixed maturity securities percentage of total investments | 85.00% | ' |
GNMA, FNMA and FHLMC mortgage backed securities, percentage of securities rated AAA | 45.00% | 35.00% |
Holdings of Issuer Other Than GNMA, FNMA and FHLMC as Percentage of Shareholders Equity Maximum | 10.00% | ' |
Ameriprise Financial | ' | ' |
Fixed maturity securities percentage of total investments | 85.00% | 85.00% |
Investments rated internally | 1,400,000,000 | 1,700,000,000 |
Amortized Cost | 28,832,000,000 | 28,503,000,000 |
Fair Value | 30,292,000,000 | 31,459,000,000 |
Percent of Total Fair Value | 100.00% | 100.00% |
AAA | Ameriprise Financial | ' | ' |
Amortized Cost | 7,562,000,000 | 7,462,000,000 |
Fair Value | 7,746,000,000 | 8,021,000,000 |
Percent of Total Fair Value | 25.00% | 26.00% |
AA | Ameriprise Financial | ' | ' |
Amortized Cost | 1,587,000,000 | 1,620,000,000 |
Fair Value | 1,707,000,000 | 1,827,000,000 |
Percent of Total Fair Value | 6.00% | 6.00% |
A | Ameriprise Financial | ' | ' |
Amortized Cost | 6,381,000,000 | 5,456,000,000 |
Fair Value | 6,738,000,000 | 6,069,000,000 |
Percent of Total Fair Value | 22.00% | 19.00% |
BBB | Ameriprise Financial | ' | ' |
Amortized Cost | 11,427,000,000 | 11,939,000,000 |
Fair Value | 12,272,000,000 | 13,575,000,000 |
Percent of Total Fair Value | 41.00% | 43.00% |
Below investment grade | Ameriprise Financial | ' | ' |
Amortized Cost | 1,875,000,000 | 2,026,000,000 |
Fair Value | $1,829,000,000 | $1,967,000,000 |
Percent of Total Fair Value | 6.00% | 6.00% |
Investments_Details_3
Investments (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Balance of Credit Losses Impairment Recognized in Other Comprehensive Income | ' | ' | ' |
Beginning balance | $176 | $303 | $297 |
Credit losses for which an other-than-temporary impairment was not previously recognized | 2 | 2 | 15 |
Credit losses for which an other-than-temporary impairment was previously recognized | 7 | 32 | 19 |
Reductions for securities sold during the period (realized) | -38 | -161 | -28 |
Ending balance | 147 | 176 | 303 |
Ameriprise Financial | ' | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Less than twelve months, Number of positions | 576 | 120 | ' |
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Fair value | 6,712 | 1,351 | ' |
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Unrealized losses | -210 | -13 | ' |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Twelve months or longer, Number of positions | 147 | 153 | ' |
Available-for-sale securities, Continuous unrealized loss position, Twelve months or longer, Fair value | 1,015 | 927 | ' |
Available-for-sale securities, Continuous unrealized loss position, Twelve months or more, Unrealized losses | -130 | -148 | ' |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Number of positions | 723 | 273 | ' |
Available-for-sale securities, Continuous unrealized loss position, Fair value | 7,727 | 2,278 | ' |
Available-for-sale securities, Continuous unrealized loss position, Unrealized losses | -340 | -161 | ' |
Corporate debt securities | Ameriprise Financial | ' | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Less than twelve months, Number of positions | 181 | 76 | ' |
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Fair value | 2,817 | 801 | ' |
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Unrealized losses | -83 | -6 | ' |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Twelve months or longer, Number of positions | 12 | 6 | ' |
Available-for-sale securities, Continuous unrealized loss position, Twelve months or longer, Fair value | 181 | 70 | ' |
Available-for-sale securities, Continuous unrealized loss position, Twelve months or more, Unrealized losses | -14 | -3 | ' |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Number of positions | 193 | 82 | ' |
Available-for-sale securities, Continuous unrealized loss position, Fair value | 2,998 | 871 | ' |
Available-for-sale securities, Continuous unrealized loss position, Unrealized losses | -97 | -9 | ' |
Residential mortgage backed securities | Ameriprise Financial | ' | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Less than twelve months, Number of positions | 128 | 22 | ' |
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Fair value | 2,393 | 408 | ' |
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Unrealized losses | -66 | -5 | ' |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Twelve months or longer, Number of positions | 113 | 134 | ' |
Available-for-sale securities, Continuous unrealized loss position, Twelve months or longer, Fair value | 663 | 658 | ' |
Available-for-sale securities, Continuous unrealized loss position, Twelve months or more, Unrealized losses | -71 | -107 | ' |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Number of positions | 241 | 156 | ' |
Available-for-sale securities, Continuous unrealized loss position, Fair value | 3,056 | 1,066 | ' |
Available-for-sale securities, Continuous unrealized loss position, Unrealized losses | -137 | -112 | ' |
Commercial mortgage backed securities | Ameriprise Financial | ' | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Less than twelve months, Number of positions | 35 | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Fair value | 426 | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Unrealized losses | -10 | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Twelve months or longer, Number of positions | 4 | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Twelve months or longer, Fair value | 22 | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Twelve months or more, Unrealized losses | -2 | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Number of positions | 39 | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Fair value | 448 | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Unrealized losses | -12 | ' | ' |
Asset backed securities | Ameriprise Financial | ' | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Less than twelve months, Number of positions | 40 | 9 | ' |
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Fair value | 531 | 108 | ' |
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Unrealized losses | -7 | -1 | ' |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Twelve months or longer, Number of positions | 4 | 5 | ' |
Available-for-sale securities, Continuous unrealized loss position, Twelve months or longer, Fair value | 32 | 86 | ' |
Available-for-sale securities, Continuous unrealized loss position, Twelve months or more, Unrealized losses | -1 | -3 | ' |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Number of positions | 44 | 14 | ' |
Available-for-sale securities, Continuous unrealized loss position, Fair value | 563 | 194 | ' |
Available-for-sale securities, Continuous unrealized loss position, Unrealized losses | -8 | -4 | ' |
State and municipal obligations | Ameriprise Financial | ' | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Less than twelve months, Number of positions | 169 | 13 | ' |
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Fair value | 468 | 34 | ' |
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Unrealized losses | -36 | -1 | ' |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Twelve months or longer, Number of positions | 14 | 8 | ' |
Available-for-sale securities, Continuous unrealized loss position, Twelve months or longer, Fair value | 117 | 113 | ' |
Available-for-sale securities, Continuous unrealized loss position, Twelve months or more, Unrealized losses | -42 | -35 | ' |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Number of positions | 183 | 21 | ' |
Available-for-sale securities, Continuous unrealized loss position, Fair value | 585 | 147 | ' |
Available-for-sale securities, Continuous unrealized loss position, Unrealized losses | -78 | -36 | ' |
Foreign government bonds and obligations | Ameriprise Financial | ' | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Less than twelve months, Number of positions | 23 | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Fair value | 77 | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Unrealized losses | -8 | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Twelve months or longer, Number of positions | 0 | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Twelve months or longer, Fair value | 0 | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Twelve months or more, Unrealized losses | 0 | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Number of positions | 23 | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Fair value | 77 | ' | ' |
Available-for-sale securities, Continuous unrealized loss position, Unrealized losses | ($8) | ' | ' |
Investments_Details_4
Investments (Details 4) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Accumulated other comprehensive income (losses), net unrealized securities gains (losses) on Available-for-Sale securities | ' | ' | ' | |||
Net unrealized securities gains, AOCI related to net unrealized securities gains | ($971) | $588 | $376 | |||
Impact on deferred acquisition costs, deferred sales inducement costs, benefit reserves and reinsurance recoverables | 319 | -154 | -193 | |||
Reclassification of net securities (gains) losses included in net income | 5 | 5 | 0 | |||
Net Unrealized Securities Gains | Ameriprise Financial | ' | ' | ' | |||
Accumulated other comprehensive income (losses), net unrealized securities gains (losses) on Available-for-Sale securities | ' | ' | ' | |||
Balance, at the beginning of the period | 2,017 | 1,350 | 1,077 | |||
Net unrealized securities gains | -1,484 | [1] | 911 | [1] | 572 | [1] |
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables | 490 | -237 | -299 | |||
Reclassification of net securities gains included in net income | -7 | -7 | ' | |||
Balance, at the end of the period | 1,016 | 2,017 | 1,350 | |||
Deferred Income Tax | Ameriprise Financial | ' | ' | ' | |||
Accumulated other comprehensive income (losses), net unrealized securities gains (losses) on Available-for-Sale securities | ' | ' | ' | |||
Balance, at the beginning of the period | -705 | -467 | -377 | |||
Net unrealized securities gains, Deferred income tax | 513 | [1] | -323 | [1] | -196 | [1] |
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables | -171 | 83 | 106 | |||
Reclassification of net securities gains included in net income | 2 | 2 | ' | |||
Balance, at the end of the period | -361 | -705 | -467 | |||
Accumulated Other Comprehensive Income Related to Net Unrealized Securities Gains | Ameriprise Financial | ' | ' | ' | |||
Accumulated other comprehensive income (losses), net unrealized securities gains (losses) on Available-for-Sale securities | ' | ' | ' | |||
Balance, at the beginning of the period | 1,312 | [2] | 883 | [2] | 700 | |
Net unrealized securities gains, AOCI related to net unrealized securities gains | -971 | [1] | 588 | [1] | 376 | [1] |
Impact on deferred acquisition costs, deferred sales inducement costs, benefit reserves and reinsurance recoverables | 319 | -154 | -193 | |||
Reclassification of net securities (gains) losses included in net income | 5 | 5 | ' | |||
Balance, at the end of the period | 655 | [2] | 1,312 | [2] | 883 | [2] |
Noncredit related impairments on securities and net unrealized securities losses on previously impaired securities, included in Accumulated Other Comprehensive Income | $4 | $18 | $75 | |||
[1] | Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period. | |||||
[2] | Includes $4 million, $18 million and $75 million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at DecemberB 31, 2013, 2012 and 2011, respectively. |
Investments_Details_5
Investments (Details 5) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Available-for-sale Securities, Net Realized Gain (Loss) [Abstract] | ' | ' | ' |
Other-than-temporary impairments | ($9) | ($37) | ($34) |
Ameriprise Financial | ' | ' | ' |
Available-for-sale Securities, Net Realized Gain (Loss) [Abstract] | ' | ' | ' |
Gross realized gains | 17 | 109 | 52 |
Gross realized losses | -1 | -65 | -18 |
Other-than-temporary impairments | -9 | -37 | -34 |
Total | 7 | 7 | ' |
Amortized Cost [Abstract] | ' | ' | ' |
Amortized cost, debt maturities, without single maturity date | 28,839 | ' | ' |
Amortized Cost | 28,839 | 28,510 | ' |
Fair Value [Abstract] | ' | ' | ' |
Fair value, debt maturities, without single maturity date | 30,310 | ' | ' |
Fair Value | 30,310 | 31,472 | ' |
Residential mortgage backed securities | Ameriprise Financial | ' | ' | ' |
Amortized Cost [Abstract] | ' | ' | ' |
Amortized cost, debt maturities, without single maturity date | 6,114 | ' | ' |
Amortized Cost | 6,114 | 5,280 | ' |
Fair Value [Abstract] | ' | ' | ' |
Fair value, debt maturities, without single maturity date | 6,124 | ' | ' |
Fair Value | 6,124 | 5,429 | ' |
Commercial mortgage backed securities | Ameriprise Financial | ' | ' | ' |
Amortized Cost [Abstract] | ' | ' | ' |
Amortized cost, debt maturities, without single maturity date | 2,612 | ' | ' |
Amortized Cost | 2,612 | 3,120 | ' |
Fair Value [Abstract] | ' | ' | ' |
Fair value, debt maturities, without single maturity date | 2,741 | ' | ' |
Fair Value | 2,741 | 3,419 | ' |
Asset backed securities | Ameriprise Financial | ' | ' | ' |
Amortized Cost [Abstract] | ' | ' | ' |
Amortized cost, debt maturities, without single maturity date | 1,459 | ' | ' |
Amortized Cost | 1,459 | 1,204 | ' |
Fair Value [Abstract] | ' | ' | ' |
Fair value, debt maturities, without single maturity date | 1,504 | ' | ' |
Fair Value | 1,504 | 1,275 | ' |
Common Stocks | Ameriprise Financial | ' | ' | ' |
Amortized Cost [Abstract] | ' | ' | ' |
Amortized cost, debt maturities, without single maturity date | 7 | ' | ' |
Amortized Cost | 7 | 7 | ' |
Fair Value [Abstract] | ' | ' | ' |
Fair value, debt maturities, without single maturity date | 18 | ' | ' |
Fair Value | 18 | 13 | ' |
Available-for-Sale Securities, at fair value | Ameriprise Financial | ' | ' | ' |
Amortized Cost [Abstract] | ' | ' | ' |
Amortized cost, due within one year | 1,448 | ' | ' |
Amortized cost, due after one year through five years | 5,918 | ' | ' |
Amortized cost, due after five years through 10 years | 6,591 | ' | ' |
Amortized cost, due after 10 years | 4,690 | ' | ' |
Amortized cost, debt maturities, single maturity date | 18,647 | ' | ' |
Fair Value [Abstract] | ' | ' | ' |
Fair value, due within one year | 1,470 | ' | ' |
Fair value, due after one year through five years | 6,317 | ' | ' |
Fair value, due after five years through 10 years | 6,963 | ' | ' |
Fair value, due after 10 years | 5,173 | ' | ' |
Fair value, debt maturities, single maturity date | $19,923 | ' | ' |
Financing_Receivables_Details
Financing Receivables (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
loan | loan | ||
Financing Receivable Allowance for Credit Losses | ' | ' | ' |
Financing Receivable, Modifications, Number of Contracts | 24 | 32 | ' |
Rollforward of the allowance for loan losses | ' | ' | ' |
Allowance for loan losses, balance at the beginning of the period | $44 | $60 | $64 |
Charge-offs | -7 | -22 | -14 |
Recoveries | 1 | 1 | 1 |
Provisions | -1 | 5 | 9 |
Allowance for loan losses, balance at the end of the period | 37 | 44 | 60 |
Individually evaluated for impairment | 9 | 7 | 12 |
Collectively evaluated for impairment | 28 | 37 | 48 |
Individually evaluated for impairment | 58 | 54 | ' |
Collectively evaluated for impairment | 3,883 | 3,958 | ' |
Financing receivables | 3,941 | 4,012 | ' |
Financing receivables ending balance: Individually evaluated for impairment with no related allowance for loan losses | 21 | 17 | ' |
Loans purchased | 158 | 162 | 567 |
Loans sold | 3 | 464 | 211 |
Nonperforming loans | 22 | 7 | ' |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 24 | 15 | ' |
Material commitments to lend additional funds to borrowers whose loans have been restructured | 0 | ' | ' |
Commercial Mortgage Loans | ' | ' | ' |
Financing Receivable Allowance for Credit Losses | ' | ' | ' |
Financing Receivable, Modifications, Number of Contracts | 8 | 4 | ' |
Rollforward of the allowance for loan losses | ' | ' | ' |
Allowance for loan losses, balance at the beginning of the period | 29 | 35 | 38 |
Charge-offs | -3 | -6 | -2 |
Provisions | ' | ' | -1 |
Allowance for loan losses, balance at the end of the period | 26 | 29 | 35 |
Individually evaluated for impairment | 8 | 6 | 10 |
Collectively evaluated for impairment | 18 | 23 | 25 |
Individually evaluated for impairment | 42 | 44 | ' |
Collectively evaluated for impairment | 2,640 | 2,562 | ' |
Financing receivables | 2,682 | 2,606 | ' |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 24 | 13 | ' |
Syndicated loans | ' | ' | ' |
Financing Receivable Allowance for Credit Losses | ' | ' | ' |
Financing Receivable, Modifications, Number of Contracts | 1 | 5 | ' |
Rollforward of the allowance for loan losses | ' | ' | ' |
Allowance for loan losses, balance at the beginning of the period | 7 | 9 | 10 |
Charge-offs | -1 | -2 | ' |
Provisions | ' | ' | -1 |
Allowance for loan losses, balance at the end of the period | 6 | 7 | 9 |
Individually evaluated for impairment | ' | 0 | 1 |
Collectively evaluated for impairment | 6 | 7 | 8 |
Individually evaluated for impairment | 9 | 2 | ' |
Collectively evaluated for impairment | 370 | 335 | ' |
Financing receivables | 379 | 337 | ' |
Loans purchased | 158 | 111 | 194 |
Loans sold | 3 | 12 | 2 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | ' | 2 | ' |
Consumer Loans | ' | ' | ' |
Financing Receivable Allowance for Credit Losses | ' | ' | ' |
Financing Receivable, Modifications, Number of Contracts | 15 | 23 | ' |
Rollforward of the allowance for loan losses | ' | ' | ' |
Allowance for loan losses, balance at the beginning of the period | 8 | 16 | 16 |
Charge-offs | -3 | -14 | -12 |
Recoveries | 1 | 1 | 1 |
Provisions | -1 | 5 | 11 |
Allowance for loan losses, balance at the end of the period | 5 | 8 | 16 |
Individually evaluated for impairment | 1 | 1 | 1 |
Collectively evaluated for impairment | 4 | 7 | 15 |
Individually evaluated for impairment | 7 | 8 | ' |
Collectively evaluated for impairment | 873 | 1,061 | ' |
Financing receivables | 880 | 1,069 | ' |
Loans purchased | ' | 51 | 373 |
Loans sold | ' | 452 | 209 |
Percentage of residential mortgage loans and credit cards and other consumer loans | 5.00% | 5.00% | ' |
Percentage of residential mortgage loans with Loan-To-Value ratios | 2.00% | 8.00% | ' |
FICO score | 640 | 640 | ' |
Specified LTV ratios | 90.00% | 90.00% | ' |
Percentage of total loan portfolio represented by state of California | 38.00% | 38.00% | ' |
Financing Receivable, Modifications, Post-Modification Recorded Investment | ' | ' | ' |
Nonperforming syndicated loans | ' | ' | ' |
Rollforward of the allowance for loan losses | ' | ' | ' |
Nonperforming loans | $4 | $3 | ' |
Financing_Receivables_Details_
Financing Receivables (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Commercial mortgage loans | ' | ' | ' | ' |
Loans and Leases Receivable, Impaired, Commitment to Lend | $0 | ' | ' | ' |
Percent of commercial mortgage loans with highest risk rating | 2.00% | ' | ' | ' |
Total loans | 3,941,000,000 | 4,012,000,000 | ' | ' |
Less: allowance for loan losses | 37,000,000 | 44,000,000 | 60,000,000 | 64,000,000 |
Commercial Mortgage Loans | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Percent of commercial mortgage loans with highest risk rating | 2.00% | 2.00% | ' | ' |
Total loans | 2,682,000,000 | 2,606,000,000 | ' | ' |
Less: allowance for loan losses | 26,000,000 | 29,000,000 | ' | ' |
Net commercial mortgage loans | 2,656,000,000 | 2,577,000,000 | ' | ' |
Percentage of gross commercial mortgage loans | 100.00% | 100.00% | ' | ' |
Commercial Mortgage Loans | Apartments | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 488,000,000 | 450,000,000 | ' | ' |
Percentage of gross commercial mortgage loans | 18.00% | 17.00% | ' | ' |
Commercial Mortgage Loans | Hotel | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 33,000,000 | 36,000,000 | ' | ' |
Percentage of gross commercial mortgage loans | 1.00% | 1.00% | ' | ' |
Commercial Mortgage Loans | Industrial | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 454,000,000 | 474,000,000 | ' | ' |
Percentage of gross commercial mortgage loans | 17.00% | 18.00% | ' | ' |
Commercial Mortgage Loans | Mixed Use | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 36,000,000 | 42,000,000 | ' | ' |
Percentage of gross commercial mortgage loans | 1.00% | 2.00% | ' | ' |
Commercial Mortgage Loans | Office | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 559,000,000 | 610,000,000 | ' | ' |
Percentage of gross commercial mortgage loans | 21.00% | 24.00% | ' | ' |
Commercial Mortgage Loans | Retail | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 951,000,000 | 858,000,000 | ' | ' |
Percentage of gross commercial mortgage loans | 36.00% | 33.00% | ' | ' |
Commercial Mortgage Loans | Other | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 161,000,000 | 136,000,000 | ' | ' |
Percentage of gross commercial mortgage loans | 6.00% | 5.00% | ' | ' |
Commercial Mortgage Loans | East North Central | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 251,000,000 | 260,000,000 | ' | ' |
Percentage of gross commercial mortgage loans | 9.00% | 10.00% | ' | ' |
Commercial Mortgage Loans | East South Central | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 71,000,000 | 66,000,000 | ' | ' |
Percentage of gross commercial mortgage loans | 3.00% | 3.00% | ' | ' |
Commercial Mortgage Loans | Middle Atlantic | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 211,000,000 | 207,000,000 | ' | ' |
Percentage of gross commercial mortgage loans | 8.00% | 8.00% | ' | ' |
Commercial Mortgage Loans | Mountain | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 257,000,000 | 272,000,000 | ' | ' |
Percentage of gross commercial mortgage loans | 10.00% | 10.00% | ' | ' |
Commercial Mortgage Loans | New England | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 149,000,000 | 146,000,000 | ' | ' |
Percentage of gross commercial mortgage loans | 5.00% | 6.00% | ' | ' |
Commercial Mortgage Loans | Pacific | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 661,000,000 | 597,000,000 | ' | ' |
Percentage of gross commercial mortgage loans | 25.00% | 23.00% | ' | ' |
Commercial Mortgage Loans | South Atlantic | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 713,000,000 | 661,000,000 | ' | ' |
Percentage of gross commercial mortgage loans | 26.00% | 25.00% | ' | ' |
Commercial Mortgage Loans | West North Central | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 207,000,000 | 232,000,000 | ' | ' |
Percentage of gross commercial mortgage loans | 8.00% | 9.00% | ' | ' |
Commercial Mortgage Loans | West South Central | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | $162,000,000 | $165,000,000 | ' | ' |
Percentage of gross commercial mortgage loans | 6.00% | 6.00% | ' | ' |
Reinsurance_Details
Reinsurance (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reinsurance | ' | ' | ' |
Reinsurance ceded offset other revenues | $87,000,000 | $79,000,000 | $71,000,000 |
Policyholder Benefits and Claims Incurred, Ceded | 229,000,000 | 201,000,000 | 201,000,000 |
Reinsurance recoverables | 2,200,000,000 | 2,100,000,000 | ' |
Future policy benefits and claims for assumed reinsurance arrangements | 597,000,000 | 615,000,000 | ' |
Premiums Earned [Abstract] | ' | ' | ' |
Premiums | 1,282,000,000 | 1,223,000,000 | 1,220,000,000 |
Life Insurance Product Line [Member] | ' | ' | ' |
Reinsurance | ' | ' | ' |
Reinsurance Retention Policy, Reinsured Risk, Percentage | 90.00% | ' | ' |
Maximum amount of life insurance risk retained by the entity on a single life and on any flexible premium survivorship life policy | 1,500,000 | ' | ' |
Maximum Amount of Survivorship Life Policy Risk Retained by Entity | 1,500,000 | ' | ' |
Amount of traditional life and universal life insurance in force aggregated | 194,100,000,000 | 191,400,000,000 | ' |
Amount life insurance reinsured at the year end | 142,100,000,000 | 138,600,000,000 | ' |
Long Term Care | ' | ' | ' |
Reinsurance | ' | ' | ' |
Percentage of risk ceded on a coinsurance basis to subsidiaries of Genworth | 50.00% | ' | ' |
Reinsurance recoverable from Genworth | 1,700,000,000 | 1,600,000,000 | ' |
Disability Income | ' | ' | ' |
Reinsurance | ' | ' | ' |
Maximum amount of life insurance risk retained by the entity on a single life and on any flexible premium survivorship life policy | 5,000 | ' | ' |
Property and Casualty Personal Insurance | ' | ' | ' |
Reinsurance | ' | ' | ' |
Maximum amount of life insurance risk retained by the entity on a single life and on any flexible premium survivorship life policy | 750,000 | ' | ' |
Number of types of reinsurance agreements associated with auto and home insurance | 3 | ' | ' |
Maximum recovery per loss | 5,000,000 | ' | ' |
Catastrophe Reinsurance, Amount of auto and home insurance risk retained by the entity per event | 20,000,000 | 20,000,000 | ' |
Maximum recovery per event catastrophe insurance | 125,000,000 | 110,000,000 | ' |
Percentage of personal umbrella loss ceded | 80.00% | ' | ' |
Maximum personal umbrella recovery per loss | 5,000,000 | ' | ' |
IUL | ' | ' | ' |
Reinsurance | ' | ' | ' |
Reinsurance Retention Policy, Reinsured Risk, Percentage | 50.00% | ' | ' |
TrioSource UL insurance [Member] | ' | ' | ' |
Reinsurance | ' | ' | ' |
Reinsurance Retention Policy, Reinsured Risk, Percentage | 50.00% | ' | ' |
Long duration contracts | ' | ' | ' |
Premiums Earned [Abstract] | ' | ' | ' |
Direct premiums | 650,000,000 | 661,000,000 | 707,000,000 |
Reinsurance ceded | -220,000,000 | -219,000,000 | -214,000,000 |
Premiums | 430,000,000 | 442,000,000 | 493,000,000 |
Short duration contracts | ' | ' | ' |
Premiums Written, Net [Abstract] | ' | ' | ' |
Direct Premiums Written | 900,000,000 | 814,000,000 | 756,000,000 |
Ceded Premiums Written | -16,000,000 | -13,000,000 | -14,000,000 |
Premiums Written, Net | 884,000,000 | 801,000,000 | 742,000,000 |
Premiums Earned [Abstract] | ' | ' | ' |
Direct premiums | 868,000,000 | 795,000,000 | 741,000,000 |
Reinsurance ceded | -16,000,000 | -14,000,000 | -14,000,000 |
Premiums | $852,000,000 | $781,000,000 | $727,000,000 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 12 Months Ended | |||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Advice and Wealth Management | Advice and Wealth Management | Asset Management | Asset Management | Annuities | Annuities | Annuities | Protection | Protection | Protection | |||
Changes in the carrying amount of goodwill, by segment: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill, balance at the beginning of the period | $1,174 | $1,164 | $253 | $255 | $830 | $818 | $46 | $46 | $46 | $45 | $45 | $45 |
Foreign currency translation | 5 | 14 | ' | ' | 5 | 14 | ' | ' | ' | ' | ' | ' |
Purchase price adjustment | -15 | -4 | -1 | -2 | -14 | -2 | ' | ' | ' | ' | ' | ' |
Goodwill, balance at the end of the period | $1,164 | $1,174 | $252 | $253 | $821 | $830 | $46 | $46 | $46 | $45 | $45 | $45 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Definite-lived intangible assets | ' | ' | ' |
Carrying amount of indefinite-lived intangible assets | $631 | $630 | ' |
Carrying amount of indefinite-lived intangible assets | 67 | 67 | ' |
Gross Carrying Amount | 547 | 541 | ' |
Accumulated Amortization | -348 | -300 | ' |
Net Carrying Amount | 199 | 241 | ' |
Definite-lived intangible assets acquired during the year, amount assigned | 2 | ' | ' |
Definite-lived intangible assets acquired during the year, weighted-average amortization period | '5 years | ' | ' |
Increase (decrease) to net definite-lived intangible assets due to changes in foreign currency exchange rates | 1 | 4 | 0 |
Aggregate amortization expense for definite-lived intangible assets | 45 | 47 | 45 |
Estimated intangible amortization expense for next five years: | ' | ' | ' |
2014 | 39 | ' | ' |
2015 | 31 | ' | ' |
2016 | 25 | ' | ' |
2017 | 21 | ' | ' |
2018 | 19 | ' | ' |
Customer relationships | ' | ' | ' |
Definite-lived intangible assets | ' | ' | ' |
Gross Carrying Amount | 152 | 152 | ' |
Accumulated Amortization | -87 | -72 | ' |
Net Carrying Amount | 65 | 80 | ' |
Contracts | ' | ' | ' |
Definite-lived intangible assets | ' | ' | ' |
Gross Carrying Amount | 240 | 238 | ' |
Accumulated Amortization | -167 | -146 | ' |
Net Carrying Amount | 73 | 92 | ' |
Other | ' | ' | ' |
Definite-lived intangible assets | ' | ' | ' |
Gross Carrying Amount | 155 | 151 | ' |
Accumulated Amortization | -94 | -82 | ' |
Net Carrying Amount | $61 | $69 | ' |
Deferred_Acquisition_Costs_and2
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Details) (Ameriprise Financial, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Ameriprise Financial | ' | ' | ' |
Balances of and changes in DAC | ' | ' | ' |
Balance, at the beginning of the period | $2,399 | $2,440 | $2,556 |
Capitalization of acquisition costs | 339 | 313 | 335 |
Amortization | -285 | -275 | -366 |
Deferred Policy Acquisition Cost Amortization Expense Impact Of Valuation Assumptions Review | 78 | -11 | -31 |
Impact of change in net unrealized securities losses (gains) | 132 | -68 | -54 |
Balance, at the end of the period | 2,663 | 2,399 | 2,440 |
Balances of and changes in DSIC, included in other assets | ' | ' | ' |
Balance, at the beginning of the period | 404 | 464 | 545 |
Capitalization of sales inducement costs | 5 | 7 | 9 |
Amortization | -48 | -45 | -70 |
Deferred Sales Inducements Amortization Expense Impact Of Valuation Assumptions Review | 25 | -13 | -11 |
Impact of change in net unrealized securities losses (gains) | 23 | -9 | 9 |
Balance, at the end of the period | $409 | $404 | $464 |
Policyholder_Account_Balances_2
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Policyholder Funds | $22,735 | $23,024 | |
Liability for Future Policy Benefits | 6,258 | 7,646 | |
Liability for Claims and Claims Adjustment Expense | 627 | 547 | |
Policyholder account balances, future policy benefits and claims | 29,620 | 31,217 | |
Ameriprise Financial | ' | ' | |
Policyholder account balances, future policy benefits and claims | 29,620 | 31,217 | |
Fixed annuities | ' | ' | |
Policyholder Funds | 13,826 | 14,420 | |
Variable annuity fixed sub-accounts | ' | ' | |
Policyholder Funds | 4,926 | 4,833 | |
Variable Universal Life and Universal Life Insurance | ' | ' | |
Policyholder Funds | 2,790 | 2,725 | |
IUL | ' | ' | |
Policyholder Funds | 315 | 137 | |
Other Life Insurance | ' | ' | |
Policyholder Funds | 878 | 909 | |
Variable annuity GMWB | ' | ' | |
Liability for Future Policy Benefits | -383 | [1] | 799 |
Variable annuity GMAB | ' | ' | |
Liability for Future Policy Benefits | -62 | [1] | 103 |
Other Variable Annuity Guarantees | ' | ' | |
Liability for Future Policy Benefits | 76 | 158 | |
Fixed annuities life contingent liabilities | ' | ' | |
Liability for Future Policy Benefits | 1,523 | 1,520 | |
Equity Indexed Annuity Member | ' | ' | |
Liability for Future Policy Benefits | 29 | 33 | |
Life Disability Income and Long Term Care Insurance | ' | ' | |
Liability for Future Policy Benefits | 4,739 | 4,703 | |
Variable Universal Life and Universal Life Insurance Additional Liabilities | ' | ' | |
Liability for Future Policy Benefits | $336 | $330 | |
[1] | Includes the value of GMWB and GMAB embedded derivatives which was a net asset at December 31, 2013 and the amount is reported as a contra liability. |
Policyholder_Account_Balances_3
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Details 2) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Separate Account Liabilities | ' | ' |
Variable annuity variable sub-accounts | 70,687 | 63,302 |
VUL insurance variable sub-accounts | 6,885 | 6,051 |
Other insurance variable sub-accounts | 44 | 42 |
Threadneedle investment liabilities | 3,607 | 3,002 |
Total | 81,223 | 72,397 |
Ameriprise Financial | ' | ' |
Separate Account Liabilities | ' | ' |
Total | 81,223 | 72,397 |
Equity Indexed Annuities Host Values | ' | ' |
Equity Indexed Annuity Contract Initial Term | '7 years | ' |
Separate Account Liabilities | ' | ' |
Minimum Interest Rate Guarantee | ' | 3.00% |
Percentage of Initial Premium Receiving Interest Guarantee | ' | 90.00% |
Variable_Annuity_and_Insurance2
Variable Annuity and Insurance Guarantees (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
provision | ||||
GMDB | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Number of Primary GMDB Provisions | 3 | ' | ||
Total contract value | $74,308 | [1] | $66,825 | [1] |
Contract value in separate accounts | 69,435 | [1] | 62,045 | [1] |
Net amount at risk | 145 | [1] | 347 | [1] |
Weighted average attained age | '64 years | [1] | '63 years | [1] |
GMDB | Return of premium | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Total contract value | 52,616 | [1] | 45,697 | [1] |
Contract value in separate accounts | 50,790 | [1] | 43,942 | [1] |
Net amount at risk | 28 | [1] | 61 | [1] |
Weighted average attained age | '64 years | [1] | '63 years | [1] |
GMDB | Five/six-year reset | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Total contract value | 11,220 | [1] | 11,233 | [1] |
Contract value in separate accounts | 8,663 | [1] | 8,722 | [1] |
Net amount at risk | 42 | [1] | 115 | [1] |
Weighted average attained age | '64 years | [1] | '63 years | [1] |
GMDB | One-year ratchet | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Total contract value | 7,676 | [1] | 7,367 | [1] |
Contract value in separate accounts | 7,261 | [1] | 6,933 | [1] |
Net amount at risk | 38 | [1] | 106 | [1] |
Weighted average attained age | '65 years | [1] | '65 years | [1] |
GMDB | Five-year ratchet | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Total contract value | 1,781 | [1] | 1,616 | [1] |
Contract value in separate accounts | 1,725 | [1] | 1,563 | [1] |
Net amount at risk | 1 | [1] | 3 | [1] |
Weighted average attained age | '62 years | [1] | '61 years | [1] |
GMDB | Other | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Total contract value | 1,015 | [1] | 912 | [1] |
Contract value in separate accounts | 996 | [1] | 885 | [1] |
Net amount at risk | 36 | [1] | 62 | [1] |
Weighted average attained age | '69 years | [1] | '68 years | [1] |
GGU death benefit | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Total contract value | 1,052 | [1] | 958 | [1] |
Contract value in separate accounts | 998 | [1] | 907 | [1] |
Net amount at risk | 121 | [1] | 93 | [1] |
Weighted average attained age | '64 years | [1] | '63 years | [1] |
GMIB | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Total contract value | 413 | [1] | 425 | [1] |
Contract value in separate accounts | 389 | [1] | 399 | [1] |
Net amount at risk | 8 | [1] | 15 | [1] |
Weighted average attained age | '66 years | [1] | '66 years | [1] |
GMIB | Scenario, Previously Reported | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Net amount at risk | ' | 72 | ||
Variable annuity guaranteed minimum withdrawal benefits ("GMWB") | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Total contract value | 38,005 | [1] | 32,486 | [1] |
Contract value in separate accounts | 37,851 | [1] | 32,342 | [1] |
Net amount at risk | 78 | [1] | 107 | [1] |
Weighted average attained age | '64 years | [1] | '64 years | [1] |
Variable annuity guaranteed minimum withdrawal benefits ("GMWB") | Scenario, Previously Reported | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Net amount at risk | ' | 297 | ||
Variable annuity guaranteed minimum withdrawal benefits ("GMWB") | GMWB | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Total contract value | 3,936 | [1] | 3,898 | [1] |
Contract value in separate accounts | 3,921 | [1] | 3,880 | [1] |
Net amount at risk | 1 | [1] | 3 | [1] |
Weighted average attained age | '67 years | [1] | '66 years | [1] |
Variable annuity guaranteed minimum withdrawal benefits ("GMWB") | GMWB for life | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Total contract value | 34,069 | [1] | 28,588 | [1] |
Contract value in separate accounts | 33,930 | [1] | 28,462 | [1] |
Net amount at risk | 77 | [1] | 104 | [1] |
Weighted average attained age | '64 years | [1] | '64 years | [1] |
Variable annuity guaranteed minimum accumulation benefits ("GMAB") | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Maximum Age of Variable Annuity Contractholders | '79 years | ' | ||
GMAB Rider Guarantees Waiting Period | '10 years | ' | ||
Percentage of Highest Anniversary Value | 80.00% | ' | ||
Total contract value | 4,194 | [1] | 3,773 | [1] |
Contract value in separate accounts | 4,181 | [1] | 3,762 | [1] |
Net amount at risk | 2 | [1] | 5 | [1] |
Weighted average attained age | '58 years | [1] | '57 years | [1] |
UL Secondary Guarantees | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Net amount at risk | $5,674 | [1] | $5,060 | [1] |
Weighted average attained age | '62 years | [1] | '61 years | [1] |
[1] | Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table |
Variable_Annuity_and_Insurance3
Variable Annuity and Insurance Guarantees (Details 2) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
GMDB and GGU | ' | ' | ' | |||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | ' | ' | ' | |||
Balance, at the beginning of the period | $4 | $5 | $5 | |||
Incurred claims | 4 | 6 | 10 | |||
Paid claims | -4 | -7 | -10 | |||
Balance, at the end of the period | 4 | 4 | 5 | |||
GMIB | ' | ' | ' | |||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | ' | ' | ' | |||
Balance, at the beginning of the period | 9 | 9 | 8 | |||
Incurred claims | -2 | 1 | 2 | |||
Paid claims | -1 | -1 | -1 | |||
Balance, at the end of the period | 6 | 9 | 9 | |||
Variable annuity guaranteed minimum withdrawal benefits ("GMWB") | ' | ' | ' | |||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | ' | ' | ' | |||
Balance, at the beginning of the period | 799 | [1] | 1,377 | [1] | 337 | [1] |
Incurred claims | -1,182 | [1] | -578 | [1] | 1,040 | [1] |
Paid claims | ' | [1] | ' | [1] | 0 | [1] |
Balance, at the end of the period | -383 | [1] | 799 | [1] | 1,377 | [1] |
Variable annuity guaranteed minimum accumulation benefits ("GMAB") | ' | ' | ' | |||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | ' | ' | ' | |||
Balance, at the beginning of the period | 103 | [1] | 237 | [1] | 104 | [1] |
Incurred claims | -165 | [1] | -134 | [1] | 133 | [1] |
Paid claims | ' | [1] | ' | [1] | 0 | [1] |
Balance, at the end of the period | -62 | [1] | 103 | [1] | 237 | [1] |
UL | ' | ' | ' | |||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | ' | ' | ' | |||
Balance, at the beginning of the period | 155 | 111 | 68 | |||
Incurred claims | 67 | 57 | 53 | |||
Paid claims | -16 | -13 | -10 | |||
Balance, at the end of the period | $206 | $155 | $111 | |||
[1] | The incurred claims for GMWB and GMAB represent the total change in the liabilities. |
Variable_Annuity_and_Insurance4
Variable Annuity and Insurance Guarantees (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Mutual funds | ' | ' |
Distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: | ' | ' |
Total mutual funds | $69,478 | $62,210 |
Equity | ' | ' |
Distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: | ' | ' |
Total mutual funds | 39,195 | 33,037 |
Bond | ' | ' |
Distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: | ' | ' |
Total mutual funds | 26,519 | 26,849 |
Other | ' | ' |
Distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: | ' | ' |
Total mutual funds | $3,764 | $2,324 |
Customer_Deposits_Details
Customer Deposits (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Maximum | Minimum | Ameriprise Financial | Ameriprise Financial | ||
Customer Deposits [Abstract] | ' | ' | ' | ' | ' |
Fixed rate certificates | ' | ' | ' | $3,338,000,000 | $2,807,000,000 |
Stock market certificates | ' | ' | ' | 611,000,000 | 666,000,000 |
Stock market embedded derivative reserve | ' | ' | ' | 7,000,000 | 8,000,000 |
Other | ' | ' | ' | 28,000,000 | 31,000,000 |
Less: accrued interest classified in other liabilities | ' | ' | ' | -10,000,000 | -10,000,000 |
Deposits, Investment Certificate | ' | ' | ' | 3,974,000,000 | 3,502,000,000 |
Brokerage deposits | ' | ' | ' | 3,088,000,000 | 3,024,000,000 |
Deposits | ' | ' | ' | 7,062,000,000 | 6,526,000,000 |
Amount of fixed rate investment certificates | ' | $2,000,000 | $1,000 | ' | ' |
Term of fixed rate investment certificates | ' | '36 months | '3 months | ' | ' |
Holding Period of Stock Market Certificates | '1 year | ' | ' | ' | ' |
Percentage of participation in the market index in the first option | 100.00% | ' | ' | ' | ' |
Percentage of participation in the market index in the second option | 25.00% | ' | ' | ' | ' |
Returns on current first term stock market certificates (as a percent) | ' | 2.00% | 1.00% | ' | ' |
Debt_Details
Debt (Details) (Ameriprise Financial, USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Debt and stated interest rates | ' | ' | ||
Total long-term debt | $2,720 | $2,403 | ||
Short-term borrowings | 500 | 501 | ||
Total Outstanding Balance of Debt | 3,220 | 2,904 | ||
Federal Home Loan Bank (FHLB) advances | ' | ' | ||
Debt and stated interest rates | ' | ' | ||
Short-term borrowings | 450 | ' | ||
Short-term Borrowings, Stated Interest Rate (as a percent) | 0.30% | ' | ||
Repurchase agreements | ' | ' | ||
Debt and stated interest rates | ' | ' | ||
Short-term borrowings | 50 | 501 | ||
Short-term Borrowings, Stated Interest Rate (as a percent) | 0.30% | 0.40% | ||
Senior notes due 2015 | ' | ' | ||
Debt and stated interest rates | ' | ' | ||
Total long-term debt | 366 | [1] | 750 | [1] |
Stated Interest Rate (as a percent) | 5.70% | 5.70% | ||
Senior notes due 2019 | ' | ' | ||
Debt and stated interest rates | ' | ' | ||
Total long-term debt | 327 | [1] | 347 | [1] |
Stated Interest Rate (as a percent) | 7.30% | 7.30% | ||
Senior notes due 2020 | ' | ' | ||
Debt and stated interest rates | ' | ' | ||
Total long-term debt | 783 | [1] | 812 | [1] |
Stated Interest Rate (as a percent) | 5.30% | 5.30% | ||
Senior notes 2023 | ' | ' | ||
Debt and stated interest rates | ' | ' | ||
Total long-term debt | 750 | ' | ||
Stated Interest Rate (as a percent) | 4.00% | ' | ||
Senior notes due 2039 | ' | ' | ||
Debt and stated interest rates | ' | ' | ||
Total long-term debt | 200 | 200 | ||
Stated Interest Rate (as a percent) | 7.80% | 7.80% | ||
Junior subordinated notes due 2066 | ' | ' | ||
Debt and stated interest rates | ' | ' | ||
Total long-term debt | $294 | $294 | ||
Stated Interest Rate (as a percent) | 7.50% | 7.50% | ||
[1] | Amounts include adjustments for fair value hedges on the Companybs long-term debt. See Note 16 for information on the Companybs fair value hedges. |
Debt_Details_2
Debt (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Nov. 13, 2013 | Sep. 06, 2013 | Nov. 04, 2013 | Oct. 31, 2013 | Mar. 31, 2010 | Jun. 30, 2009 | Jun. 30, 2009 | 31-May-06 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2005 | Nov. 30, 2005 |
Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | ||
Repurchase agreements | Repurchase agreements | Federal Home Loan Bank (FHLB) advances | Senior notes 2023 | Senior notes 2023 | Unsecured Senior Notes | Unsecured Senior Notes | Senior notes due 2020 | Senior notes due 2019 | Senior notes due 2039 | Junior subordinated notes due 2066 | Junior subordinated notes due 2066 | Junior subordinated notes due 2066 | Senior Notes 2010 | Senior notes due 2015 | |||
Debt and stated interest rates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured senior notes issued | ' | ' | ' | ' | ' | $150,000,000 | $600,000,000 | ' | ' | $750,000,000 | $300,000,000 | $200,000,000 | $500,000,000 | ' | ' | $800,000,000 | $1,500,000,000 |
Debt Issuance Costs | ' | ' | ' | ' | ' | 1,000,000 | 5,000,000 | ' | ' | 6,000,000 | 3,000,000 | 6,000,000 | 6,000,000 | ' | ' | ' | 7,000,000 |
Extinguishment of Debt, Amount | ' | ' | ' | ' | ' | ' | ' | ' | 350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Gains (Losses) on Extinguishment of Debt | ' | ' | ' | ' | ' | ' | ' | 19,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate During Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.50% | ' | ' |
Securities pledged as collateral | ' | ' | 52,000,000 | 518,000,000 | 574,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Current Borrowing Capacity | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | 750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Description of Variable Rate Basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'three-month LIBOR | ' | ' | ' |
Outstanding letters of credit issued against credit facility | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.91% | ' | ' | ' |
Maturities of Long-term Debt [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | 2,294,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total future maturities | 2,644,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum Principal Amount of Junior Subordinated Notes Outstanding After Redemption | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50,000,000 | ' | ' | ' |
Fair_Values_of_Assets_and_Liab2
Fair Values of Assets and Liabilities (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Liabilities: | ' | ' | ||
Cumulative decrease to the embedded derivative liability | $150 | $398 | ||
Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 30,310 | 31,472 | ||
Separate account assets | 81,223 | 72,397 | ||
Recurring | Ameriprise Financial | Level 1 | ' | ' | ||
Assets | ' | ' | ||
Cash equivalents | 12 | 18 | ||
Total Available-for-Sale securities | 22 | 22 | ||
Trading securities | 3 | 1 | ||
Other assets | 267 | 285 | ||
Fair value of assets | 304 | 326 | ||
Liabilities: | ' | ' | ||
Total other liabilities | 550 | 260 | ||
Total liabilities at fair value | 550 | 260 | ||
Recurring | Ameriprise Financial | Level 1 | U.S. government and agencies obligations | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 17 | 19 | ||
Recurring | Ameriprise Financial | Level 1 | Common stocks | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 5 | 3 | ||
Recurring | Ameriprise Financial | Level 1 | Equity derivatives contracts | ' | ' | ||
Assets | ' | ' | ||
Other assets | 265 | 285 | ||
Liabilities: | ' | ' | ||
Total other liabilities | 550 | 258 | ||
Recurring | Ameriprise Financial | Level 1 | Foreign currency derivative contract | ' | ' | ||
Assets | ' | ' | ||
Other assets | 2 | ' | ||
Liabilities: | ' | ' | ||
Total other liabilities | ' | 1 | ||
Recurring | Ameriprise Financial | Level 1 | Other | ' | ' | ||
Liabilities: | ' | ' | ||
Total other liabilities | ' | 1 | ||
Recurring | Ameriprise Financial | Level 2 | ' | ' | ||
Assets | ' | ' | ||
Cash equivalents | 1,841 | 1,539 | ||
Total Available-for-Sale securities | 28,165 | 29,012 | ||
Trading securities | 32 | 24 | ||
Separate account assets | 81,223 | 72,397 | ||
Other assets | 3,151 | 3,338 | ||
Fair value of assets | 114,412 | 106,310 | ||
Liabilities: | ' | ' | ||
Total future policy benefits and claims | 5 | 2 | ||
Customer deposits | 7 | 8 | ||
Total other liabilities | 4,270 | 3,054 | ||
Total liabilities at fair value | 4,282 | 3,064 | ||
Recurring | Ameriprise Financial | Level 2 | Corporate debt securities | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 15,826 | 17,051 | ||
Recurring | Ameriprise Financial | Level 2 | Residential mortgage backed securities | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 5,937 | 5,145 | ||
Recurring | Ameriprise Financial | Level 2 | Commercial mortgage backed securities | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 2,711 | 3,213 | ||
Recurring | Ameriprise Financial | Level 2 | Asset backed securities | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 1,244 | 1,097 | ||
Recurring | Ameriprise Financial | Level 2 | State and municipal obligations | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 2,160 | 2,239 | ||
Recurring | Ameriprise Financial | Level 2 | U.S. government and agencies obligations | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 35 | 39 | ||
Recurring | Ameriprise Financial | Level 2 | Foreign government bonds and obligations | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 245 | 224 | ||
Recurring | Ameriprise Financial | Level 2 | Common stocks | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 7 | 4 | ||
Recurring | Ameriprise Financial | Level 2 | Interest rate derivatives | ' | ' | ||
Assets | ' | ' | ||
Other assets | 1,570 | 2,358 | ||
Liabilities: | ' | ' | ||
Total other liabilities | 1,693 | 1,486 | ||
Recurring | Ameriprise Financial | Level 2 | Equity derivatives contracts | ' | ' | ||
Assets | ' | ' | ||
Other assets | 1,576 | 973 | ||
Liabilities: | ' | ' | ||
Total other liabilities | 2,565 | 1,565 | ||
Recurring | Ameriprise Financial | Level 2 | Credit derivative contract | ' | ' | ||
Assets | ' | ' | ||
Other assets | 3 | ' | ||
Recurring | Ameriprise Financial | Level 2 | Foreign currency derivative contract | ' | ' | ||
Assets | ' | ' | ||
Other assets | 2 | 6 | ||
Recurring | Ameriprise Financial | Level 2 | Commodity derivative | ' | ' | ||
Assets | ' | ' | ||
Other assets | ' | 1 | ||
Recurring | Ameriprise Financial | Level 2 | EIA embedded derivatives | ' | ' | ||
Liabilities: | ' | ' | ||
Total future policy benefits and claims | 5 | 2 | ||
Recurring | Ameriprise Financial | Level 2 | Other | ' | ' | ||
Liabilities: | ' | ' | ||
Total other liabilities | 12 | 3 | ||
Recurring | Ameriprise Financial | Level 3 | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 2,123 | 2,438 | ||
Trading securities | 2 | ' | ||
Other assets | 0 | ' | ||
Fair value of assets | 2,125 | 2,438 | ||
Liabilities: | ' | ' | ||
Total future policy benefits and claims | -450 | 878 | ||
Total liabilities at fair value | -450 | 878 | ||
Recurring | Ameriprise Financial | Level 3 | Corporate debt securities | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 1,640 | 1,764 | ||
Recurring | Ameriprise Financial | Level 3 | Residential mortgage backed securities | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 187 | 284 | ||
Recurring | Ameriprise Financial | Level 3 | Commercial mortgage backed securities | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 30 | 206 | ||
Recurring | Ameriprise Financial | Level 3 | Asset backed securities | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 260 | 178 | ||
Recurring | Ameriprise Financial | Level 3 | Common stocks | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 6 | 6 | ||
Recurring | Ameriprise Financial | Level 3 | IUL embedded derivatives | ' | ' | ||
Liabilities: | ' | ' | ||
Total future policy benefits and claims | 125 | 45 | ||
Recurring | Ameriprise Financial | Level 3 | GMWB and GMAB embedded derivatives | ' | ' | ||
Liabilities: | ' | ' | ||
Total future policy benefits and claims | -575 | 833 | ||
Recurring | Ameriprise Financial | Total | ' | ' | ||
Assets | ' | ' | ||
Cash equivalents | 1,853 | 1,557 | ||
Total Available-for-Sale securities | 30,310 | 31,472 | ||
Trading securities | 37 | 25 | ||
Separate account assets | 81,223 | 72,397 | ||
Other assets | 3,418 | 3,623 | ||
Fair value of assets | 116,841 | 109,074 | ||
Liabilities: | ' | ' | ||
Total future policy benefits and claims | -445 | [1] | 880 | [2] |
Customer deposits | 7 | 8 | ||
Total other liabilities | 4,820 | 3,314 | ||
Total liabilities at fair value | 4,382 | 4,202 | ||
Recurring | Ameriprise Financial | Total | Corporate debt securities | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 17,466 | 18,815 | ||
Recurring | Ameriprise Financial | Total | Residential mortgage backed securities | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 6,124 | 5,429 | ||
Recurring | Ameriprise Financial | Total | Commercial mortgage backed securities | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 2,741 | 3,419 | ||
Recurring | Ameriprise Financial | Total | Asset backed securities | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 1,504 | 1,275 | ||
Recurring | Ameriprise Financial | Total | State and municipal obligations | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 2,160 | 2,239 | ||
Recurring | Ameriprise Financial | Total | U.S. government and agencies obligations | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 52 | 58 | ||
Recurring | Ameriprise Financial | Total | Foreign government bonds and obligations | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 245 | 224 | ||
Recurring | Ameriprise Financial | Total | Common stocks | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 18 | 13 | ||
Recurring | Ameriprise Financial | Total | Interest rate derivatives | ' | ' | ||
Assets | ' | ' | ||
Other assets | 1,570 | 2,358 | ||
Liabilities: | ' | ' | ||
Total other liabilities | 1,693 | 1,486 | ||
Recurring | Ameriprise Financial | Total | Equity derivatives contracts | ' | ' | ||
Assets | ' | ' | ||
Other assets | 1,841 | 1,258 | ||
Liabilities: | ' | ' | ||
Total other liabilities | 3,115 | 1,823 | ||
Recurring | Ameriprise Financial | Total | Credit derivative contract | ' | ' | ||
Assets | ' | ' | ||
Other assets | 3 | ' | ||
Recurring | Ameriprise Financial | Total | Foreign currency derivative contract | ' | ' | ||
Assets | ' | ' | ||
Other assets | 4 | 6 | ||
Liabilities: | ' | ' | ||
Total other liabilities | ' | 1 | ||
Recurring | Ameriprise Financial | Total | Commodity derivative | ' | ' | ||
Assets | ' | ' | ||
Other assets | ' | 1 | ||
Recurring | Ameriprise Financial | Total | EIA embedded derivatives | ' | ' | ||
Liabilities: | ' | ' | ||
Total future policy benefits and claims | 5 | 2 | ||
Recurring | Ameriprise Financial | Total | Other | ' | ' | ||
Liabilities: | ' | ' | ||
Total other liabilities | 12 | 4 | ||
Recurring | Ameriprise Financial | Total | Embedded Derivative GMWB and GMAB | Discounted cash flow valuation technique | GMWB and GMAB embedded derivatives | ' | ' | ||
Liabilities: | ' | ' | ||
Total future policy benefits and claims | -575 | [3] | 833 | |
Recurring | Ameriprise Financial | Total | IUL embedded derivatives | Discounted cash flow valuation technique | IUL embedded derivatives | ' | ' | ||
Liabilities: | ' | ' | ||
Total future policy benefits and claims | $125 | $45 | ||
[1] | The Companybs adjustment for nonperformance risk resulted in a $150 million cumulative decrease to the embedded derivatives. | |||
[2] | The Companybs adjustment for nonperformance risk resulted in a $398 million cumulative decrease to the embedded derivatives. | |||
[3] | The fair value of the GMWB and GMAB embedded derivatives was a net asset at DecemberB 31, 2013 and the amount is reported as a contra liability. |
Fair_Values_of_Assets_and_Liab3
Fair Values of Assets and Liabilities (Details 2) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Transfers out of Level 3 | ' | ($146) | ($3,900) | |||
Available-for-Sale Securities, at fair value | Ameriprise Financial | ' | ' | ' | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | ' | |||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Investment Income | -1 | 2 | -31 | |||
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Balance, at the beginning of the period | 2,438 | 1,814 | 6,104 | |||
Total gains (losses) included in Net income | -1 | [1] | -42 | [2] | 63 | [2] |
Total gains (losses) included in Other comprehensive income (loss) | -37 | 89 | -117 | |||
Purchases | 754 | 874 | 967 | |||
Settlements | -274 | -233 | -1,098 | |||
Transfers into Level 3 | 8 | 257 | 22 | |||
Transfers out of Level 3 | -765 | -209 | -4,074 | |||
Balance, at the end of the period | 2,123 | 2,438 | 1,814 | |||
Sales, Net-Assets | ' | -112 | -53 | |||
Corporate debt securities | Ameriprise Financial | ' | ' | ' | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | ' | |||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Investment Income | -3 | -1 | ' | |||
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Balance, at the beginning of the period | 1,764 | 1,355 | 1,325 | |||
Total gains (losses) included in Net income | -3 | -1 | 7 | |||
Total gains (losses) included in Other comprehensive income (loss) | -41 | 12 | 11 | |||
Purchases | 135 | 543 | 189 | |||
Settlements | -215 | -155 | -122 | |||
Transfers into Level 3 | ' | 10 | 7 | |||
Transfers out of Level 3 | ' | ' | -11 | |||
Balance, at the end of the period | 1,640 | 1,764 | 1,355 | |||
Sales, Net-Assets | ' | 0 | -51 | |||
Residential mortgage backed securities | Ameriprise Financial | ' | ' | ' | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | ' | |||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Investment Income | ' | ' | -33 | |||
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Balance, at the beginning of the period | 284 | 215 | 4,532 | |||
Total gains (losses) included in Net income | ' | -45 | 53 | |||
Total gains (losses) included in Other comprehensive income (loss) | ' | 68 | -118 | |||
Purchases | 335 | 309 | 556 | |||
Settlements | -18 | -56 | -943 | |||
Transfers into Level 3 | ' | 42 | ' | |||
Transfers out of Level 3 | -414 | -174 | -3,863 | |||
Balance, at the end of the period | 187 | 284 | 215 | |||
Sales, Net-Assets | ' | -75 | -2 | |||
Commercial mortgage backed securities | Ameriprise Financial | ' | ' | ' | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | ' | |||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Investment Income | ' | 1 | ' | |||
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Balance, at the beginning of the period | 206 | 50 | 51 | |||
Total gains (losses) included in Net income | ' | 1 | ' | |||
Total gains (losses) included in Other comprehensive income (loss) | -6 | 8 | ' | |||
Purchases | 25 | 20 | 104 | |||
Settlements | -36 | -3 | -4 | |||
Transfers into Level 3 | ' | 183 | 1 | |||
Transfers out of Level 3 | -159 | -34 | -102 | |||
Balance, at the end of the period | 30 | 206 | 50 | |||
Sales, Net-Assets | ' | -19 | ' | |||
Asset backed securities | Ameriprise Financial | ' | ' | ' | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | ' | |||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Investment Income | 2 | 2 | 2 | |||
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Balance, at the beginning of the period | 178 | 189 | 191 | |||
Total gains (losses) included in Net income | 2 | 3 | 3 | |||
Total gains (losses) included in Other comprehensive income (loss) | 9 | 1 | -10 | |||
Purchases | 259 | ' | 118 | |||
Settlements | -5 | -19 | -29 | |||
Transfers into Level 3 | 8 | 22 | 14 | |||
Transfers out of Level 3 | -191 | ' | -98 | |||
Balance, at the end of the period | 260 | 178 | 189 | |||
Sales, Net-Assets | ' | -18 | ' | |||
Common Stocks | Ameriprise Financial | ' | ' | ' | |||
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Balance, at the beginning of the period | 6 | 5 | 5 | |||
Total gains (losses) included in Net income | ' | ' | 0 | |||
Total gains (losses) included in Other comprehensive income (loss) | 1 | ' | ' | |||
Purchases | ' | 2 | ' | |||
Settlements | ' | ' | ' | |||
Transfers into Level 3 | ' | ' | ' | |||
Transfers out of Level 3 | -1 | -1 | ' | |||
Balance, at the end of the period | 6 | 6 | 5 | |||
Sales, Net-Assets | ' | 0 | ' | |||
Future Policy Benefits and Unpaid Claims | Ameriprise Financial | ' | ' | ' | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | ' | |||
Fair Value Assets or Liabilities Measured on Recurring Basis Change in Unrealized Gain (Loss) Included in Interest Credited to Fixed Accounts | -19 | 8 | ' | |||
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Transfers into Level 3 | ' | -22 | ' | |||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Balance, at the beginning of the period | -878 | -1,585 | ' | |||
Total Gains (Losses) Included in Net Income | 1,598 | 956 | ' | |||
Issues | -290 | -219 | ' | |||
Settlements | 20 | -8 | ' | |||
Balance, at the end of the period | 450 | -878 | ' | |||
Fair Value Assets or Liabilities Measured on Recurring Basis Change in Unrealized Gain (Loss) Included in Benefits, Claims, Losses and Settlement Expenses | 1,598 | 908 | ' | |||
GMWB and GMAB embedded derivatives | Ameriprise Financial | ' | ' | ' | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | ' | |||
Cumulative Decrease in Embedded Derivative Liability | -168 | -71 | 216 | |||
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Transfers into Level 3 | ' | 0 | ' | |||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Balance, at the beginning of the period | -833 | -1,585 | -421 | |||
Total Gains (Losses) Included in Net Income | 1,617 | [3] | 948 | [3] | -1,007 | [3] |
Issues | -228 | -188 | -149 | |||
Settlements | 19 | -8 | -8 | |||
Balance, at the end of the period | 575 | -833 | -1,585 | |||
Fair Value Assets or Liabilities Measured on Recurring Basis Change in Unrealized Gain (Loss) Included in Benefits, Claims, Losses and Settlement Expenses | 1,598 | 908 | -1,035 | |||
IUL embedded derivatives | Ameriprise Financial | ' | ' | ' | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | ' | |||
Fair Value Assets or Liabilities Measured on Recurring Basis Change in Unrealized Gain (Loss) Included in Interest Credited to Fixed Accounts | -19 | 8 | ' | |||
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Transfers into Level 3 | ' | -22 | ' | |||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Balance, at the beginning of the period | -45 | ' | ' | |||
Total Gains (Losses) Included in Net Income | -19 | [4] | 8 | [4] | ' | |
Issues | -62 | -31 | ' | |||
Settlements | -1 | ' | ' | |||
Balance, at the end of the period | -125 | -45 | ' | |||
Trading Securities [Member] | Ameriprise Financial | ' | ' | ' | |||
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | |||
Purchases | 2 | ' | ' | |||
Balance, at the end of the period | $2 | ' | ' | |||
[1] | Included in net investment income in the Consolidated Statements of Operations. | |||||
[2] | Included in net investment income in the Consolidated Statements of Operations | |||||
[3] | Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. | |||||
[4] | Included in interest credited to fixed accounts in the Consolidated Statements of Operations. |
Fair_Values_of_Assets_and_Liab4
Fair Values of Assets and Liabilities (Details 3) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Corporate debt securities (private placements) | Maximum | Discounted cash flow valuation technique | Ameriprise Financial | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Yield/spread to U.S. Treasuries (as a percent) | 5.30% | 8.50% | ||
Corporate debt securities (private placements) | Minimum | Discounted cash flow valuation technique | Ameriprise Financial | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Yield/spread to U.S. Treasuries (as a percent) | 0.90% | 1.10% | ||
Corporate debt securities (private placements) | Weighted Average | Discounted cash flow valuation technique | Ameriprise Financial | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Yield/spread to U.S. Treasuries (as a percent) | 1.50% | 2.10% | ||
GMWB and GMAB embedded derivatives | Discounted cash flow valuation technique | Ameriprise Financial | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Nonperformance risk (as a percent) | 0.74% | [1] | 0.97% | [1] |
GMWB and GMAB embedded derivatives | Maximum | Discounted cash flow valuation technique | Ameriprise Financial | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Utilization of guaranteed withdrawals (as a percent) | 51.10% | [2] | 56.40% | [2] |
Surrender Rate (as a percent) | 57.90% | 56.30% | ||
Fair Value Assumptions, Expected Volatility Rate | 18.80% | [3] | 21.20% | [3] |
GMWB and GMAB embedded derivatives | Minimum | Discounted cash flow valuation technique | Ameriprise Financial | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Utilization of guaranteed withdrawals (as a percent) | 0.00% | [2] | 0.00% | [2] |
Surrender Rate (as a percent) | 0.10% | 0.00% | ||
Fair Value Assumptions, Expected Volatility Rate | 4.90% | [3] | 5.60% | [3] |
IUL embedded derivatives | Discounted cash flow valuation technique | Ameriprise Financial | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Nonperformance risk (as a percent) | 0.74% | [1] | 0.97% | [1] |
Embedded Derivative GMWB and GMAB | Maximum | Discounted cash flow valuation technique | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Fair Value Assumptions, Elective Contractholder Strategy Allocations | 50.00% | [4] | ' | |
Embedded Derivative GMWB and GMAB | Minimum | Discounted cash flow valuation technique | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Fair Value Assumptions, Elective Contractholder Strategy Allocations | 0.00% | [4] | ' | |
Corporate debt securities | Discounted cash flow valuation technique | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Fair value of assets | 1,589 | 1,712 | ||
Total | Recurring | Ameriprise Financial | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Fair value of assets | 116,841 | 109,074 | ||
Fair value | 4,382 | 4,202 | ||
Total future policy benefits and claims | -445 | [5] | 880 | [6] |
Total | Recurring | IUL embedded derivatives | IUL embedded derivatives | Discounted cash flow valuation technique | Ameriprise Financial | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Total future policy benefits and claims | 125 | 45 | ||
Total | Recurring | Embedded Derivative GMWB and GMAB | GMWB and GMAB embedded derivatives | Discounted cash flow valuation technique | Ameriprise Financial | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Total future policy benefits and claims | -575 | [7] | 833 | |
[1] | The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. | |||
[2] | The utilization of guaranteed withdrawals represents the percentage of policyholders that will begin withdrawing in any given year. | |||
[3] | Market volatility is implied volatility of fund of funds and managed volatility funds. | |||
[4] | The elective allocation represents the percentage of contractholders that are assumed to electively switch their investment allocation to a different allocation model. | |||
[5] | The Companybs adjustment for nonperformance risk resulted in a $150 million cumulative decrease to the embedded derivatives. | |||
[6] | The Companybs adjustment for nonperformance risk resulted in a $398 million cumulative decrease to the embedded derivatives. | |||
[7] | The fair value of the GMWB and GMAB embedded derivatives was a net asset at DecemberB 31, 2013 and the amount is reported as a contra liability. |
Fair_Values_of_Assets_and_Liab5
Fair Values of Assets and Liabilities (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Financial Assets | ' | ' |
Restricted and segregated cash | $27 | $107 |
Financial Liabilities | ' | ' |
Policyholder account balances, future policy benefits and claims | 29,620 | 31,217 |
Separate account liabilities | 81,223 | 72,397 |
Ameriprise Financial | ' | ' |
Financial Liabilities | ' | ' |
Policyholder account balances, future policy benefits and claims | 29,620 | 31,217 |
Investment certificate reserves | 3,974 | 3,502 |
Brokerage deposits | 3,088 | 3,024 |
Separate account liabilities | 81,223 | 72,397 |
Ameriprise Financial | Level 1 | ' | ' |
Financial Assets | ' | ' |
Receivables | 107 | 135 |
Restricted and segregated cash | 2,360 | 2,538 |
Financial Liabilities | ' | ' |
Brokerage deposits | 3,088 | 3,024 |
Debt and other liabilities | 137 | 145 |
Ameriprise Financial | Level 2 | ' | ' |
Financial Assets | ' | ' |
Policy and certificate loans | 1 | 2 |
Receivables | 1,026 | 926 |
Other investments and assets | 368 | 333 |
Financial Liabilities | ' | ' |
Separate account liabilities | 4,007 | 3,362 |
Debt and other liabilities | 3,372 | 3,109 |
Ameriprise Financial | Level 3 | ' | ' |
Financial Assets | ' | ' |
Mortgage loans, net | 3,490 | 3,694 |
Policy and certificate loans | 765 | 725 |
Receivables | 8 | 12 |
Other investments and assets | 73 | 60 |
Financial Liabilities | ' | ' |
Policyholder account balances, future policy benefits and claims | 14,724 | 15,982 |
Investment certificate reserves | 3,982 | 3,494 |
Debt and other liabilities | 134 | 142 |
Ameriprise Financial | Total | ' | ' |
Financial Assets | ' | ' |
Mortgage loans, net | 3,490 | 3,694 |
Policy and certificate loans | 766 | 727 |
Receivables | 1,141 | 1,073 |
Restricted and segregated cash | 2,360 | 2,538 |
Other investments and assets | 441 | 393 |
Financial Liabilities | ' | ' |
Policyholder account balances, future policy benefits and claims | 14,724 | 15,982 |
Investment certificate reserves | 3,982 | 3,494 |
Brokerage deposits | 3,088 | 3,024 |
Separate account liabilities | 4,007 | 3,362 |
Debt and other liabilities | 3,643 | 3,396 |
Carrying Value | Ameriprise Financial | ' | ' |
Financial Assets | ' | ' |
Mortgage loans, net | 3,510 | 3,609 |
Policy and certificate loans | 774 | 754 |
Receivables | 1,141 | 1,067 |
Restricted and segregated cash | 2,360 | 2,538 |
Other investments and assets | 440 | 390 |
Financial Liabilities | ' | ' |
Policyholder account balances, future policy benefits and claims | 14,106 | 14,701 |
Investment certificate reserves | 3,977 | 3,504 |
Brokerage deposits | 3,088 | 3,024 |
Separate account liabilities | 4,007 | 3,362 |
Debt and other liabilities | $3,416 | $3,033 |
Offsetting_Assets_and_Liabilit2
Offsetting Assets and Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Derivatives: | ' | ' | ||
Gross Amounts of Recognized Assets | $3,418 | $3,623 | ||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ' | ' | ||
Financial Instruments | -3,247 | [1] | -2,706 | [1] |
Cash Collateral | -76 | -428 | ||
Securities Collateral | -15 | -355 | ||
Net Amount | 80 | 134 | ||
Securities borrowed | ' | ' | ||
Gross Amounts of Recognized Assets | 107 | 135 | ||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ' | ' | ||
Financial Instruments | -15 | -66 | [1] | |
Cash Collateral | 0 | ' | ||
Securities Collateral | -90 | -68 | ||
Net Amount | 2 | 1 | ||
Total | ' | ' | ||
Gross Amounts of Recognized Assets | 3,525 | 3,758 | ||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ' | ' | ||
Financial Instruments | -3,262 | [1] | -2,772 | [1] |
Cash Collateral | -76 | -428 | ||
Securities Collateral | -105 | -423 | ||
Net Amount | 82 | 135 | ||
OTC | ' | ' | ||
Derivatives: | ' | ' | ||
Gross Amounts of Recognized Assets | 3,337 | 3,527 | ||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ' | ' | ||
Financial Instruments | -3,227 | [1] | -2,706 | [1] |
Cash Collateral | -75 | -428 | ||
Securities Collateral | -15 | -355 | ||
Net Amount | 20 | 38 | ||
Over the Counter Cleared Swaps | ' | ' | ||
Derivatives: | ' | ' | ||
Gross Amounts of Recognized Assets | 21 | ' | ||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ' | ' | ||
Financial Instruments | -20 | [1] | ' | |
Cash Collateral | -1 | ' | ||
Securities Collateral | ' | ' | ||
Net Amount | ' | ' | ||
Exchange-traded derivatives | ' | ' | ||
Derivatives: | ' | ' | ||
Gross Amounts of Recognized Assets | 60 | 96 | ||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ' | ' | ||
Financial Instruments | 0 | [1] | 0 | [1] |
Cash Collateral | 0 | 0 | ||
Securities Collateral | 0 | 0 | ||
Net Amount | $60 | $96 | ||
[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. |
Offsetting_Assets_and_Liabilit3
Offsetting Assets and Liabilities (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Derivatives | ' | ' | ||
Gross Amounts of Recognized Liabilities | $4,370 | $4,198 | ||
Securities loaned | ' | ' | ||
Gross Amounts of Recognized Liabilities | 136 | 145 | ||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ' | ' | ||
Financial Instruments | -15 | [1] | -66 | [1] |
Cash Collateral | ' | ' | ||
Securities Collateral | -117 | -77 | ||
Net Amount | 4 | 2 | ||
Repurchase agreements | ' | ' | ||
Gross Amounts of Recognized Liabilities | 50 | 501 | ||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ' | ' | ||
Financial Instruments | 0 | [1] | 0 | [1] |
Cash Collateral | 0 | 0 | ||
Securities Collateral | -50 | -501 | ||
Net Amount | 0 | 0 | ||
Total | ' | ' | ||
Gross Amounts of Recognized Liabilities | 4,994 | 3,956 | ||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ' | ' | ||
Financial Instruments | -3,262 | [1] | -2,772 | [1] |
Cash Collateral | -2 | -67 | ||
Securities Collateral | -1,665 | -1,109 | ||
Net Amount | 65 | 8 | ||
OTC | ' | ' | ||
Derivatives | ' | ' | ||
Gross Amounts of Recognized Liabilities | 4,786 | 3,310 | ||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ' | ' | ||
Financial Instruments | -3,227 | [1] | -2,706 | [1] |
Cash Collateral | ' | -67 | ||
Securities Collateral | -1,498 | -531 | ||
Net Amount | 61 | 6 | ||
Over the Counter Cleared Swaps | ' | ' | ||
Derivatives | ' | ' | ||
Gross Amounts of Recognized Liabilities | 22 | ' | ||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ' | ' | ||
Financial Instruments | -20 | [1] | ' | |
Cash Collateral | -2 | ' | ||
Securities Collateral | ' | ' | ||
Net Amount | ' | ' | ||
Total Over the Counter Derivatives | ' | ' | ||
Derivatives | ' | ' | ||
Gross Amounts of Recognized Liabilities | 4,808 | ' | ||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ' | ' | ||
Financial Instruments | -3,247 | [1] | ' | |
Cash Collateral | -2 | ' | ||
Securities Collateral | -1,498 | ' | ||
Net Amount | $61 | ' | ||
[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_Activi2
Derivatives and Hedging Activities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | |
Derivative asset, fair value | $3,418 | $3,623 | |
Derivative liability, fair value | 4,370 | 4,198 | |
Derivatives designated as hedging instruments | ' | ' | |
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | |
Derivative asset, fair value | 82 | 167 | |
Derivatives designated as hedging instruments | Fair value hedges | Fixed rate debt | ' | ' | |
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | |
Derivative asset, fair value | 82 | 167 | |
Derivatives not designated as hedging instruments | ' | ' | |
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | |
Derivative asset, fair value | 3,336 | 3,456 | |
Derivative liability, fair value | 4,370 | 4,198 | |
Derivatives not designated as hedging instruments | GMWB and GMAB | ' | ' | |
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | |
Derivative asset, fair value | 3,230 | 3,412 | |
Derivative liability, fair value | 4,125 | 4,111 | |
Derivatives not designated as hedging instruments | Other derivatives | ' | ' | |
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | |
Derivative asset, fair value | 106 | 44 | |
Derivative liability, fair value | 245 | 87 | |
Derivatives not designated as hedging instruments | Interest rate derivatives | GMWB and GMAB | ' | ' | |
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | |
Derivative asset, fair value | 1,484 | 2,191 | |
Derivative liability, fair value | 1,672 | 1,486 | |
Derivatives not designated as hedging instruments | Interest rate derivatives | Macro hedge program | ' | ' | |
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | |
Derivative asset, fair value | 4 | ' | |
Derivative liability, fair value | 21 | ' | |
Derivatives not designated as hedging instruments | Equity derivatives | GMWB and GMAB | ' | ' | |
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | |
Derivative asset, fair value | 1,741 | 1,215 | |
Derivative liability, fair value | 3,028 | 1,792 | |
Derivatives not designated as hedging instruments | Equity derivatives | Macro hedge program | ' | ' | |
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | |
Derivative liability, fair value | 8 | ' | |
Derivatives not designated as hedging instruments | Equity derivatives | EIA embedded derivatives | ' | ' | |
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | |
Derivative liability, fair value | 5 | 2 | |
Derivatives not designated as hedging instruments | Equity derivatives | IUL | ' | ' | |
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | |
Derivative asset, fair value | 27 | 6 | |
Derivative liability, fair value | 13 | 1 | |
Derivatives not designated as hedging instruments | Equity derivatives | IUL embedded derivatives | ' | ' | |
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | |
Derivative liability, fair value | 125 | 45 | |
Derivatives not designated as hedging instruments | Equity derivatives | Stock market certificates | ' | ' | |
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | |
Derivative asset, fair value | 73 | 37 | |
Derivative liability, fair value | 66 | 30 | |
Derivatives not designated as hedging instruments | Equity derivatives | Stock market certificates embedded derivatives | ' | ' | |
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | |
Derivative liability, fair value | 7 | 8 | |
Derivatives not designated as hedging instruments | Credit derivative contract | GMWB and GMAB | ' | ' | |
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | |
Derivative asset, fair value | 3 | ' | |
Derivatives not designated as hedging instruments | Foreign exchange contract | GMWB and GMAB | ' | ' | |
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | |
Derivative asset, fair value | 2 | 6 | |
Derivatives not designated as hedging instruments | Foreign exchange contract | Foreign currency | ' | ' | |
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | |
Derivative asset, fair value | 2 | 0 | |
Derivative liability, fair value | ' | 1 | |
Derivatives not designated as hedging instruments | Commodity | Seed money | ' | ' | |
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | |
Derivative asset, fair value | 0 | 1 | |
Derivatives not designated as hedging instruments | GMWB and GMAB embedded derivatives | GMWB and GMAB | ' | ' | |
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | |
Derivative liability, fair value | ($575) | [1] | $833 |
[1] | The fair value of the GMWB and GMAB embedded derivatives was a net asset at December 31, 2013 and the amount is reported as a contra liability. |
Derivatives_and_Hedging_Activi3
Derivatives and Hedging Activities (Details 3) (Derivatives not designated as hedging instruments, USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | ($402,000,000) | ($459,000,000) | ($149,000,000) | |||
GMWB and GMAB | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | -405,000,000 | -452,000,000 | -144,000,000 | |||
Other derivatives | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | 3,000,000 | -7,000,000 | -5,000,000 | |||
Interest rate derivatives | GMWB and GMAB | Benefits, claims, losses and settlement expenses | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | -742,000,000 | 17,000,000 | 709,000,000 | |||
Interest rate derivatives | Interest on debt | Benefits, claims, losses and settlement expenses | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | -15,000,000 | ' | ' | |||
Interest rate derivatives | Interest Rate Lock Commitments | Other revenues | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | ' | ' | -1,000,000 | |||
Interest rate derivatives | Seed money | Net investment income | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | 2,000,000 | ' | ' | |||
Interest rate derivatives | Bank assets | Net investment income | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | ' | -7,000,000 | ' | |||
Interest rate derivatives | Interest Rate Tax Hedge [Member] | Net investment income | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | ' | 1,000,000 | ' | |||
Equity derivatives | GMWB and GMAB | Benefits, claims, losses and settlement expenses | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | -1,103,000,000 | -1,218,000,000 | 326,000,000 | |||
Equity derivatives | Interest on debt | Benefits, claims, losses and settlement expenses | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | -8,000,000 | ' | ' | |||
Equity derivatives | Equity indexed annuities (EIA) | Interest credited to fixed accounts | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | 3,000,000 | 1,000,000 | -1,000,000 | |||
Equity derivatives | EIA embedded derivatives | Interest credited to fixed accounts | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | -3,000,000 | 1,000,000 | 1,000,000 | |||
Equity derivatives | Stock market certificates | Banking and deposit interest expense | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | 7,000,000 | 6,000,000 | 1,000,000 | |||
Equity derivatives | Stock market certificates embedded derivatives | Banking and deposit interest expense | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | -6,000,000 | -5,000,000 | ' | |||
Equity derivatives | Seed money | Net investment income | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | -17,000,000 | -6,000,000 | 4,000,000 | |||
Equity derivatives | Deferred Compensation | Distribution expenses | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | 9,000,000 | ' | ' | |||
Equity derivatives | Deferred Compensation | General and Administrative Expense [Member] | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | 5,000,000 | ' | ' | |||
Equity derivatives | Ameriprise Financial Franchise Advisor Deferred Compensation Plan | Distribution expenses | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | ' | 5,000,000 | -4,000,000 | |||
Equity derivatives | IUL | Interest credited to fixed accounts | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | 11,000,000 | 1,000,000 | 1,000,000 | |||
Equity derivatives | IUL embedded derivatives | Interest credited to fixed accounts | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | 16,000,000 | -4,000,000 | -3,000,000 | |||
Credit derivative contract | GMWB and GMAB | Benefits, claims, losses and settlement expenses | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | 6,000,000 | -2,000,000 | -12,000,000 | |||
Foreign exchange contract | GMWB and GMAB | Benefits, claims, losses and settlement expenses | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | 26,000,000 | -1,000,000 | -2,000,000 | |||
Foreign exchange contract | Foreign currency | Net investment income | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | -2,000,000 | ' | -3,000,000 | |||
Foreign exchange contract | Seed money | General and Administrative Expense [Member] | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | ' | ' | -1,000,000 | |||
GMWB and GMAB embedded derivatives | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Gross notional amount, guaranteed benefit contracts | 144,500,000,000 | 142,100,000,000 | ' | |||
GMWB and GMAB embedded derivatives | GMWB and GMAB | Benefits, claims, losses and settlement expenses | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | 1,408,000,000 | [1] | 752,000,000 | [1] | -1,165,000,000 | [1] |
Commodity | Seed money | Net investment income | ' | ' | ' | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ' | |||
Amount of Gain Recognized in Income on Derivatives | $1,000,000 | ' | $1,000,000 | |||
[1] | The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets. |
Derivatives_and_Hedging_Activi4
Derivatives and Hedging Activities (Details 4) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of Option Premiums Payable and Receivable | ' | ' |
Premiums Payable | $2,069 | ' |
Premiums Receivable | 384 | ' |
Gross notional amount of forwards, futures, total return swaps and commodity swaps | 111 | 146 |
Gross notional amount of foreign currency forward contracts | 30 | 14 |
Macro hedge program | ' | ' |
Summary of Option Premiums Payable and Receivable | ' | ' |
Gross notional amount of index options and futures contracts | 710 | ' |
Embedded Derivative Financial Instruments [Member] | ' | ' |
Summary of Option Premiums Payable and Receivable | ' | ' |
Gross notional amount of index options and futures contracts | 1,500 | 1,300 |
Deferred Compensation Plan [Member] | ' | ' |
Summary of Option Premiums Payable and Receivable | ' | ' |
Gross notional amount of futures contracts | 224 | 5 |
2014 | ' | ' |
Summary of Option Premiums Payable and Receivable | ' | ' |
Premiums Payable | 378 | ' |
Premiums Receivable | 86 | ' |
2015 | ' | ' |
Summary of Option Premiums Payable and Receivable | ' | ' |
Premiums Payable | 349 | ' |
Premiums Receivable | 67 | ' |
2016 | ' | ' |
Summary of Option Premiums Payable and Receivable | ' | ' |
Premiums Payable | 305 | ' |
Premiums Receivable | 51 | ' |
2017 | ' | ' |
Summary of Option Premiums Payable and Receivable | ' | ' |
Premiums Payable | 240 | ' |
Premiums Receivable | 45 | ' |
2018 | ' | ' |
Summary of Option Premiums Payable and Receivable | ' | ' |
Premiums Payable | 196 | ' |
Premiums Receivable | 56 | ' |
2019-2027 | ' | ' |
Summary of Option Premiums Payable and Receivable | ' | ' |
Premiums Payable | 601 | ' |
Premiums Receivable | $79 | ' |
Derivatives_and_Hedging_Activi5
Derivatives and Hedging Activities (Details 5) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2013 | Dec. 31, 2013 |
swap | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Fair value hedges | Fair value hedges | Fair value hedges | Unsecured Senior Notes [Member] | Derivative contract settlement [Member] | ||||
Net investment income | Net investment income | Net investment income | Other revenues | Other revenues | Interest and debt expense | Interest and debt expense | Interest and debt expense | Distribution Fees [Member] | Interest on debt | Interest on debt | Asset Based Distribution Fees | Fixed rate debt | Fixed rate debt | Fixed rate debt | Ameriprise Financial | Fair value hedges | ||||||||
Interest and debt expense | Interest and debt expense | Interest and debt expense | Fixed rate debt | |||||||||||||||||||||
Interest and debt expense | ||||||||||||||||||||||||
Derivative Instruments Gain (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extinguishment of Debt, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $350 | ' |
Cash flow hedge, Gain (Loss) Reclassified from Accumulated Other Comprehensive Income to Other revenues | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on Cash Flow Hedge Ineffectiveness | 1 | 1 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated reclassification of net pretax losses on cash flow hedges from accumulated other comprehensive income to earnings during the next 12 months | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification of net pretax gains, to be recorded as a reduction to interest and debt expense in the next 12 months | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification of net pretax losses, to be recorded in net investment income in the next 12 months | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives | ' | ' | ' | ' | ' | 14 | -10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14 | -11 | 1 | ' | ' | ' | ' | ' |
Amount of Gain (Loss) Reclassified from Accumulated other Comprehensive Income into Income | ' | ' | ' | ' | -1 | 1 | 34 | -5 | -6 | -6 | 3 | 27 | 4 | 4 | 4 | 9 | ' | ' | ' | ' | ' | ' | ' | ' |
Net unrealized derivatives losses | -1 | -2 | -11 | 18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | ' | 14 | -10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, before Tax | 1 | -1 | -34 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | 0 | -4 | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Hedging exposure to the variability in future cash flows | ' | ' | ' | ' | '22 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of interest rate swaps held | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of Gain Recognized in Income on Derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $57 | $37 | $41 | ' | $18 |
Derivatives_and_Hedging_Activi6
Derivatives and Hedging Activities (Details 6) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivatives liabilities, credit risk related contingent features | ' | ' |
Aggregate fair value of all derivative instruments containing credit risk features | $1,000 | $364 |
Aggregate fair value of assets posted as collateral | 959 | 360 |
Additional fair value of assets needed to settle these derivative liabilities | $56 | $4 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 12 Months Ended | 23 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Equity incentive plan and equity participation plan | Equity incentive plan and equity participation plan | Equity incentive plan and equity participation plan | Equity incentive plan (EIP) | Equity incentive plan (EIP) | Equity participation plan (EPP) | Equity participation plan (EPP) | Equity participation plan (EPP) | Amended and Restated Ameriprise Financial 2005 Incentive Compensation Plan | Amended and Restated Ameriprise Financial 2005 Incentive Compensation Plan | Ameriprise Financial 2008 Employment Incentive Equity Award Plan | Franchise Advisor Top Performer Stock Award | Franchise Consultant Growth Bonus | Stock option | Stock option | Stock option | Stock option | Stock option | Restricted stock awards | Restricted stock awards | Restricted stock awards | Restricted stock awards | Restricted stock awards | Restricted stock awards | RSA RSU and DSU Awards [Member] | RSA RSU and DSU Awards [Member] | RSA RSU and DSU Awards [Member] | Advisor deferral plans [Member] | Advisor deferral plans [Member] | Advisor deferral plans [Member] | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | Performance units | Performance units | Performance units | Performance units | Performance units | Share-based bonus awards | Liability Awards [Member] | Liability Awards [Member] | Liability Awards [Member] | |||||||
Minimum | Maximum | Minimum | Maximum | Equity incentive plan (EIP) | Equity incentive plan (EIP) | Equity incentive plan (EIP) | Minimum | Maximum | Franchise Advisor Deferral Plan | Franchise Advisor Deferral Plan | Employee Advisor Deferral Plan | |||||||||||||||||||||||||||||||||||||||
Maximum | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Share-based compensation expense | $174 | $148 | $158 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $36 | $40 | $43 | ' | ' | $46 | [1] | $40 | [1] | $50 | [1] | $10 | $11 | $19 | ' | ' | ' | ' | ' | ' | $61 | $54 | $52 | ' | ' | ' | ' | ' | ' | ' | ' | $31 | $14 | $13 |
Tax benefit related to share-based compensation expense | 60 | 51 | 53 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total unrecognized compensation cost related to non-vested awards | 84 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Weighted-average period to recognize compensation cost | '2 years 1 month | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Maximum shares which may be issued under incentive plan (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37.9 | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.5 | ' | 3 | ' | ' | ' | |||
Maximum shares which may be issued for full value awards under the 2005 Incentive Compensation Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Award vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '4 years | ' | ' | ' | '4 years | '3 years | ' | ' | ' | '3 years | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '4 years | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | |||
Minimum stock option exercise price as a percentage of current fair market value of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Maximum term of stock options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Weighted average assumptions used for stock option grants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Dividend yield (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 2.00% | 1.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Expected volatility (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41.00% | 45.00% | 44.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Risk-free interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.90% | 0.80% | 2.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Expected life of stock option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Weighted average grant date fair value for options granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $18.16 | $18.15 | $21.38 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Summary of stock option activity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Outstanding, at the beginning of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Exercised (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -7.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Forfeited (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -0.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Outstanding, at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.4 | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Exercisable (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Weighted-average Exercise Price at the beginning of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $43.91 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Weighted Average Exercise Price Granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $65.64 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Weighted Average Exercise Price Exercised (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $36.64 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Weighted Average Exercise Price Forfeited (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $58.52 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Weighted-average Exercise Price at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $53.03 | $43.91 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Weighted Average Exercise Price Exercisable (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $48.96 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Weighted-average remaining contractual life of options outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years 2 months 12 days | '5 years 10 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Weighted-average remaining contractual life of options exercisable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Aggregate intrinsic value of options outstanding, at the beginning of the period (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 281 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Aggregate intrinsic value of options outstanding, at the end of the period (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 583 | 281 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Aggregate intrinsic value of options exercisable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 394 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Intrinsic value of options exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 299 | 153 | 58 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Summary of restricted stock award activity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Non-vested at the beginning of the period (in shares) | 3.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Granted (in shares) | 0.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Deferred (in shares) | 0.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Vested (in shares) | -1.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Forfeited (in shares) | -0.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Non-vested at the end of the period (in shares) | 2.8 | 3.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Weighted-Average Grant-date Fair Value, Non-vested at the beginning of the period (in dollars per share) | $38.42 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $68.90 | $54.32 | $59.01 | $80.77 | $54.98 | $52.72 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Weighted-Average Grant-date Fair Value, Granted during the period (in dollars per share) | $69.61 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Weighted-Average Grant-date Fair Value, Deferred during the period (in dollars per share) | $82.51 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Weighted-Average Grant-date Fair Value, Vested during the period (in dollars per share) | $56.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Weighted-Average Grant-date Fair Value, Forfeited during the period (in dollars per share) | $55.39 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Weighted-Average Grant-date Fair Value, Non-vested at the end of the period (in dollars per share) | $43.87 | $38.42 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $68.90 | $54.32 | $59.01 | $80.77 | $54.98 | $52.72 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Fair value of equity instruments other than options vested in period (in dollars) | 110 | 103 | 116 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Restricted stock units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Units outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.3 | 0.2 | 0.1 | ' | ' | ' | ' | ' | ' | |||
Franchisee Advisor Deferral Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Units outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.3 | 0.2 | 0.1 | ' | ' | ' | ' | ' | ' | |||
Employee Advisor Deferral Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Units outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.3 | 0.2 | 0.1 | ' | ' | ' | ' | ' | ' | |||
Share-Based Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Percentage of vesting of awards under the equity incentive plan | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Award vesting period | ' | ' | ' | ' | ' | ' | '3 years | '2 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Period of cash-out under cash award programs | ' | ' | ' | ' | ' | ' | '6 years | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Percentage of vesting after three years under the equity participation plan | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Percentage of vesting after four years under the equity participation plan | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Cash settlements of EPP and EIP awards | ' | ' | ' | $23 | $31 | $14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | Includes $10 million, $11 million and $19 million of expense related to EIP for the years ended DecemberB 31, 2013, 2012 and 2011, respectively. |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Share data in Millions, unless otherwise specified | Oct. 24, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Components of accumulated other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net unrealized securities gains | ' | $655,000,000 | ' | ' | ' | $1,312,000,000 | ' | ' | ' | $655,000,000 | $1,312,000,000 | ' | ' |
Net unrealized derivatives losses | ' | -1,000,000 | ' | ' | ' | -2,000,000 | ' | ' | ' | -1,000,000 | -2,000,000 | -11,000,000 | 18,000,000 |
Foreign currency translation | ' | -13,000,000 | ' | ' | ' | -25,000,000 | ' | ' | ' | -13,000,000 | -25,000,000 | ' | ' |
Defined benefit plans | ' | -46,000,000 | ' | ' | ' | -91,000,000 | ' | ' | ' | -46,000,000 | -91,000,000 | -75,000,000 | -24,000,000 |
Total | ' | 595,000,000 | ' | ' | ' | 1,194,000,000 | ' | ' | ' | 595,000,000 | 1,194,000,000 | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net investment income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,889,000,000 | 1,933,000,000 | 2,046,000,000 | ' |
Income tax provision | ' | ' | ' | ' | ' | ' | ' | ' | ' | -492,000,000 | -335,000,000 | -377,000,000 | ' |
Interest and debt expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 281,000,000 | 276,000,000 | 317,000,000 | ' |
Income from continuing operations before income tax provision | ' | 479,000,000 | 602,000,000 | 402,000,000 | 487,000,000 | 418,000,000 | 199,000,000 | 299,000,000 | 322,000,000 | 1,970,000,000 | 1,238,000,000 | 1,447,000,000 | ' |
Net of tax | ' | 296,000,000 | 382,000,000 | 321,000,000 | 335,000,000 | 389,000,000 | 173,000,000 | 223,000,000 | 244,000,000 | 1,334,000,000 | 1,029,000,000 | 1,116,000,000 | ' |
Net unrealized securities losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 319,000,000 | -154,000,000 | -193,000,000 | ' |
Stock Repurchase Program, Authorized Amount | 2,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining Balance under Stock Repurchase Program | ' | ' | ' | ' | ' | ' | ' | ' | ' | 649,000,000 | ' | ' | ' |
Number of shares reacquired through surrender of restricted shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.4 | 0.3 | 0.5 | ' |
Value of shares reacquired through surrender of restricted shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,000,000 | 18,000,000 | 25,000,000 | ' |
Number of shares reacquired through net settlement of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.9 | ' | ' | ' |
Aggregate value of shares reacquired through net settlement of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | 227,000,000 | ' | ' | ' |
Net settlement of stock options related to strike price | ' | ' | ' | ' | ' | ' | ' | ' | ' | 145,000,000 | ' | ' | ' |
Value of shares reacquired through net settlement of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | 82,000,000 | ' | ' | ' |
Treasury shares reissued for restricted stock award grants and Ameriprise Financial Franchise Advisor Deferred Compensation Plan (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.9 | 1.8 | 1.7 | ' |
Open Market Share Repurchases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common shares (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17.8 | 24.6 | 27.9 | ' |
Repurchase of common shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000,000 | 1,300,000,000 | 1,500,000,000 | ' |
Franchise Advisor Deferral Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common shares (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.3 | 0.3 | ' |
Repurchase of common shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,000,000 | 13,000,000 | ' |
Net unrealized loss on Available-for-Sale securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net unrealized securities losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 319,000,000 | ' | ' | ' |
Net unrealized loss on Available-for-Sale securities | Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net investment income | ' | ' | ' | ' | ' | ' | ' | ' | ' | -7,000,000 | ' | ' | ' |
Income tax provision | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' |
Net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5,000,000 | ' | ' | ' |
Losses (gains) on cash flow hedge | Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax provision | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' |
Income from continuing operations before income tax provision | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' |
Net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' |
Losses (gains) on cash flow hedge | Amount Reclassified from Accumulated Other Comprehensive Income | Interest rate derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest and debt expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' |
Losses (gains) on cash flow hedge | Amount Reclassified from Accumulated Other Comprehensive Income | Interest rate swaptions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net investment income | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,000,000 | ' | ' | ' |
Earnings_per_Share_Attributabl2
Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations | $382 | $448 | $282 | $366 | $331 | $152 | $171 | $249 | $1,478 | $903 | $1,070 |
Less: Net income (loss) attributable to noncontrolling interests | 84 | 67 | -40 | 30 | -57 | -22 | -53 | 4 | 141 | -128 | -106 |
Income from continuing operations attributable to Ameriprise Financial | ' | ' | ' | ' | ' | ' | ' | ' | 1,337 | 1,031 | 1,176 |
Loss from discontinued operations, net of tax | -2 | 1 | -1 | -1 | 1 | -1 | -1 | -1 | -3 | -2 | -60 |
Net income attributable to Ameriprise Financial | $296 | $382 | $321 | $335 | $389 | $173 | $223 | $244 | $1,334 | $1,029 | $1,116 |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic: Weighted-average common shares outstanding | 198.3 | 201.3 | 204.9 | 208.4 | 210.8 | 215 | 221.7 | 227.3 | 203.2 | 218.7 | 241.4 |
Effect of potentially dilutive nonqualified stock options and other share-based awards (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 3.9 | 4.1 | 4.9 |
Diluted: Weighted-average common shares outstanding | 202.3 | 205.1 | 208.6 | 212.3 | 215.1 | 219.1 | 225.6 | 231.7 | 207.1 | 222.8 | 246.3 |
Basic: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $1.50 | $1.90 | $1.57 | $1.61 | $1.84 | $0.81 | $1.01 | $1.08 | $6.58 | $4.71 | $4.87 |
Loss from discontinued operations (in dollars per share) | ($0.01) | ' | ' | ' | $0.01 | ($0.01) | ' | ($0.01) | ($0.02) | ($0.01) | ($0.25) |
Net income (in dollars per share) | $1.49 | $1.90 | $1.57 | $1.61 | $1.85 | $0.80 | $1.01 | $1.07 | $6.56 | $4.70 | $4.62 |
Diluted: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $1.47 | $1.86 | $1.54 | $1.58 | $1.80 | $0.79 | $0.99 | $1.06 | $6.46 | $4.63 | $4.77 |
Loss from discontinued operations (in dollars per share) | ($0.01) | ' | ' | ' | $0.01 | ' | ' | ($0.01) | ($0.02) | ($0.01) | ($0.24) |
Net income (in dollars per share) | $1.46 | $1.86 | $1.54 | $1.58 | $1.81 | $0.79 | $0.99 | $1.05 | $6.44 | $4.62 | $4.53 |
Effect of potentially dilutive nonqualified stock options and other share-based awards (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 6.1 |
Regulatory_Requirements_Detail
Regulatory Requirements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 02, 2009 |
Subsidiaries of entity | Property and Casualty, Personal Insurance Product Line | Property and Casualty, Personal Insurance Product Line | Property and Casualty, Personal Insurance Product Line | RiverSource Life | RiverSource Life | RiverSource Life | Ameriprise Certificate Company | Ameriprise Certificate Company | Ameriprise Certificate Company | |
subsidiary | ||||||||||
Regulatory Requirements [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate amount of unrestricted net assets | $1,900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory capital and surplus | ' | 531,000,000 | 462,000,000 | 431,000,000 | 2,700,000,000 | 3,100,000,000 | 2,700,000,000 | ' | ' | ' |
Statutory Accounting Practices, Statutory Net Income Amount | ' | 11,000,000 | 27,000,000 | 23,000,000 | 1,300,000,000 | 2,000,000,000 | -599,000,000 | ' | ' | ' |
Period of dividend or distributions | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' |
Percentage of previous year-end statutory capital and surplus (as a percent) | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' |
Government debt securities on deposit with states under legal requirements | ' | ' | ' | ' | 6,000,000 | 7,000,000 | ' | ' | ' | ' |
Requirement of qualified assets under Investment Company Act of 1940 | ' | ' | ' | ' | ' | ' | ' | 4,000,000,000 | 3,500,000,000 | ' |
Actual amount of qualified assets | ' | ' | ' | ' | ' | ' | ' | 4,200,000,000 | 3,700,000,000 | ' |
Maximum commitment by entity to Ameriprise Certificate Company under Capital Support Agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | $115,000,000 |
Number of broker-dealer subsidiaries | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current income tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | $549 | $229 | $250 |
State and local | ' | ' | ' | ' | ' | ' | ' | ' | 24 | 25 | 21 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 37 | 31 | 23 |
Total current income tax | ' | ' | ' | ' | ' | ' | ' | ' | 610 | 285 | 294 |
Deferred income tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | -102 | 37 | 90 |
State and local | ' | ' | ' | ' | ' | ' | ' | ' | -10 | 15 | 1 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | -6 | -2 | -8 |
Total deferred income tax | ' | ' | ' | ' | ' | ' | ' | ' | -118 | 50 | 83 |
Total income tax provision (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 492 | 335 | 377 |
Geographic sources of pretax income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
United States | ' | ' | ' | ' | ' | ' | ' | ' | 1,640 | 1,161 | 1,350 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 330 | 77 | 97 |
Income from continuing operations before income tax provision | 479 | 602 | 402 | 487 | 418 | 199 | 299 | 322 | 1,970 | 1,238 | 1,447 |
Reconciliation of the income tax provision | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax at U.S. statutory rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% |
Changes in taxes resulting from: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend exclusion (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -5.10% | -5.90% | -8.50% |
Low income housing credits (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -2.70% | -3.00% | -1.10% |
Net income (loss) attributable to noncontrolling interest (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -2.50% | 3.60% | 2.60% |
Foreign tax credits, net of addback (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -0.90% | -3.20% | -2.20% |
Tax-exempt interest income (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -0.90% | -1.70% | -1.30% |
State taxes, net of federal benefit (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | 2.50% | 1.00% |
Taxes applicable to prior years (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | -2.50% | 0.20% |
Other, net (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 1.60% | 2.30% | 0.40% |
Income tax provision (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 27.10% | 26.10% |
Accumulated earnings of foreign subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 120 | ' | ' |
Aggregate U.S. federal taxes not provided on earnings of foreign subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | $17 | ' | ' |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Deferred income tax assets: | ' | ' | ' |
Liabilities for future policy benefits and claims | $918 | $1,320 | ' |
Investment related | 627 | 104 | ' |
Deferred compensation | 335 | 310 | ' |
Investment impairments and write-downs | 97 | 105 | ' |
Loss carryovers and tax credit carryforwards | 39 | 39 | ' |
Other | 61 | 54 | ' |
Gross deferred income tax assets | 2,077 | 1,932 | ' |
Less: Valuation allowance | -19 | -16 | ' |
Total deferred income tax assets | 2,058 | 1,916 | ' |
Deferred income tax liabilities: | ' | ' | ' |
Deferred acquisition costs | 749 | 701 | ' |
Deferred sales inducement costs | 145 | 142 | ' |
Net unrealized gains on available-for-sale securities | 352 | 708 | ' |
Depreciation expense | 138 | 164 | ' |
Intangible assets | 84 | 74 | ' |
Other | 113 | 82 | ' |
Gross deferred income tax liabilities | 1,581 | 1,871 | ' |
Net deferred income tax liabilities | 477 | 45 | ' |
State net operating losses | 39 | ' | ' |
Reconciliation of gross unrecognized tax benefits (expense) | ' | ' | ' |
Gross unrecognized tax benefits, balance at the beginning of the period | 116 | 184 | 75 |
Additions based on tax positions related to the current year | 22 | 2 | 1 |
Additions for tax positions of prior years | 74 | 25 | 95 |
Reductions for tax positions of prior years | -3 | -83 | -8 |
Settlements | 0 | -12 | 21 |
Gross unrecognized tax benefits, balance at the end of the period | 209 | 116 | 184 |
Unrecognized tax benefits (net of federal tax benefits) that would impact the effective tax rate | 62 | 38 | 38 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Lower Bound | 150 | ' | ' |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Upper Bound | 160 | ' | ' |
Increase (reduction) in interest and penalties | 6 | -1 | 66 |
Accrued interest and penalties | -42 | -36 | ' |
Income tax provision (benefit) amounts of items comprising other comprehensive income (loss) | ' | ' | ' |
Net unrealized securities gains | -344 | 238 | 90 |
Net unrealized derivatives gains (losses) | 0 | 4 | -15 |
Defined benefit plans | 24 | -9 | -28 |
Foreign currency translation | 3 | 7 | -1 |
Net income tax provision (benefit) | ($317) | $240 | $46 |
Retirement_Plans_and_Profit_Sh2
Retirement Plans and Profit Sharing Arrangements (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 28, 2010 | Dec. 31, 2013 | Feb. 28, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Plans | Pension Plans | Pension Plans | Pension Plans | Pension Plans | Pension Plans | Pension Plans | Other Postretirement Benefits | Other Postretirement Benefits | Other Postretirement Benefits | |
Maximum | Maximum | Minimum | Minimum | |||||||
Defined Benefit Plan Disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain (Loss) after Tax | ($55) | ' | ' | ' | ' | ' | ' | $5 | ' | ' |
Percentage of Eligible Contribution | ' | ' | ' | 10.00% | 5.00% | 2.50% | 2.50% | ' | ' | ' |
Yield period of U.S. Treasury Note | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum crediting rate (as a percent) | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined benefit plans: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Service cost | 46 | 41 | 38 | ' | ' | ' | ' | ' | ' | ' |
Expected return on plan assets | -33 | -30 | -26 | ' | ' | ' | ' | ' | ' | ' |
Amortization of prior service costs | -1 | -1 | -1 | ' | ' | ' | ' | ' | ' | ' |
Amortization of net (gain)/loss | 11 | 7 | 1 | ' | ' | ' | ' | ' | ' | ' |
Other | 2 | 4 | 4 | ' | ' | ' | ' | ' | ' | ' |
Net periodic benefit cost | 48 | 45 | 39 | ' | ' | ' | ' | 0 | -1 | 0 |
Minimum threshold percentage for amortization of actuarial gains and losses | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Change in benefit obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Benefit obligation at beginning of year | 643 | 546 | ' | ' | ' | ' | ' | 20 | 19 | ' |
Service cost | 46 | 41 | 38 | ' | ' | ' | ' | ' | ' | ' |
Interest cost | 23 | 24 | 23 | ' | ' | ' | ' | 1 | 1 | ' |
Benefits paid | -7 | -7 | ' | ' | ' | ' | ' | -4 | -4 | ' |
Participant contributions | ' | ' | ' | ' | ' | ' | ' | 2 | 3 | ' |
Actuarial gain (loss) | -8 | 51 | ' | ' | ' | ' | ' | -1 | 1 | ' |
Settlements | -23 | -15 | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency rate changes | 2 | 3 | ' | ' | ' | ' | ' | ' | ' | ' |
Benefit obligation at end of year | 676 | 643 | 546 | ' | ' | ' | ' | 18 | 20 | 19 |
Change in fair value of plan assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of plan assets at the beginning of the year | 437 | 362 | ' | ' | ' | ' | ' | ' | ' | ' |
Actual return on plan assets | 85 | 49 | ' | ' | ' | ' | ' | ' | ' | ' |
Employer contributions | 50 | 45 | ' | ' | ' | ' | ' | ' | ' | ' |
Benefits paid | -7 | -7 | ' | ' | ' | ' | ' | -4 | -4 | ' |
Settlements | -23 | -15 | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency rate changes | 2 | 3 | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of plan assets at the end of the year | 544 | 437 | 362 | ' | ' | ' | ' | ' | ' | ' |
Amounts recognized in the Consolidated Balance Sheets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Benefit liability | -136 | -214 | ' | ' | ' | ' | ' | ' | ' | ' |
Benefit asset | 4 | 8 | ' | ' | ' | ' | ' | ' | ' | ' |
Net amount recognized | -132 | -206 | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized prior service credit (cost) recognized in accumulated other comprehensive income | 3 | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Estimated amounts that will be amortized from accumulated other comprehensive income (loss), net of tax, into net periodic benefit cost | 1 | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Accumulated benefit obligation for all pension plans | 605 | 576 | ' | ' | ' | ' | ' | ' | ' | ' |
Plans with accumulated benefit obligations in excess of plan assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated benefit obligation | 514 | 503 | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of plan assets | 418 | 333 | ' | ' | ' | ' | ' | ' | ' | ' |
Plans with projected benefit obligations in excess of plan assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Projected benefit obligation | 554 | 547 | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of plan assets | $418 | $333 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average assumptions used to determine benefit obligations for pension plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rates (as a percent) | 4.06% | 3.45% | ' | ' | ' | ' | ' | 4.25% | 3.40% | ' |
Rates of increase in compensation levels (as a percent) | 4.38% | 4.36% | ' | ' | ' | ' | ' | ' | ' | ' |
Healthcare cost increase rates: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Following year (as a percent) | ' | ' | ' | ' | ' | ' | ' | 6.00% | 6.50% | ' |
Decreasing to the year 2016 (as a percent) | ' | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% | ' |
Weighted average assumptions used to determine net periodic benefit cost for pension plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rates (as a percent) | 3.45% | 4.15% | 4.75% | ' | ' | ' | ' | ' | ' | ' |
Rates of increase in compensation levels (as a percent) | 4.36% | 4.27% | 4.25% | ' | ' | ' | ' | ' | ' | ' |
Expected long term rates of return on assets (as a percent) | 7.62% | 7.69% | 8.00% | ' | ' | ' | ' | ' | ' | ' |
Range of the difference between the actual allocation and target allocations (as a percent) | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Retirement_Plans_and_Profit_Sh3
Retirement Plans and Profit Sharing Arrangements (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Plans | ' | ' | ' |
Pension plan assets measured at fair value on a recurring basis | ' | ' | ' |
Range of the difference between the actual allocation and target allocations (as a percent) | 5.00% | ' | ' |
Summary of changes in Level 3 assets measured at fair value on a recurring basis | ' | ' | ' |
Fair value of plan assets at the beginning of the year | $437 | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 544 | ' | 362 |
Expected benefit payments to retirees | ' | ' | ' |
2014 | 60 | ' | ' |
2015 | 64 | ' | ' |
2016 | 61 | ' | ' |
2017 | 66 | ' | ' |
2018 | 69 | ' | ' |
2019-2022 | 289 | ' | ' |
Expected contribution to pension plans | 47 | ' | ' |
Pension Plans | Debt securities | ' | ' | ' |
Pension plan assets measured at fair value on a recurring basis | ' | ' | ' |
Defined Benefit Plan, Assets, Target Allocations (as a percent) | 20.00% | ' | ' |
Defined Benefit Plan, Assets in pooled pension funds, Target Allocations (as a percent) | 45.00% | ' | ' |
Pension Plans | Common Stocks | ' | ' | ' |
Pension plan assets measured at fair value on a recurring basis | ' | ' | ' |
Defined Benefit Plan, Assets, Target Allocations (as a percent) | 70.00% | ' | ' |
Defined Benefit Plan, Assets in pooled pension funds, Target Allocations (as a percent) | 55.00% | ' | ' |
Pension Plans | Real estate investment trust | ' | ' | ' |
Summary of changes in Level 3 assets measured at fair value on a recurring basis | ' | ' | ' |
Fair value of plan assets at the beginning of the year | 12 | 11 | 8 |
Actual return (loss) on plan assets: | ' | ' | ' |
Relating to assets still held at the reporting date | ' | ' | 1 |
Purchases, Net-Assets | 2 | 1 | 2 |
Sales, Net-Assets | -12 | ' | ' |
Fair value of plan assets at the end of the year | 2 | 12 | 11 |
Pension Plans | Hedge funds | ' | ' | ' |
Summary of changes in Level 3 assets measured at fair value on a recurring basis | ' | ' | ' |
Fair value of plan assets at the beginning of the year | 18 | 12 | 9 |
Actual return (loss) on plan assets: | ' | ' | ' |
Relating to assets still held at the reporting date | 2 | 1 | ' |
Purchases, Net-Assets | 0 | 5 | 11 |
Sales, Net-Assets | ' | ' | -8 |
Fair value of plan assets at the end of the year | 20 | 18 | 12 |
Pension Plans | Pooled pension funds | ' | ' | ' |
Defined Benefit Plan, Assets, Target Allocations | ' | ' | ' |
Percentage of excess return on pooled pension funds | 1.50% | ' | ' |
Period to calculate the return on pooled pension funds | '3 years | ' | ' |
Pension Plans | Other assets | ' | ' | ' |
Pension plan assets measured at fair value on a recurring basis | ' | ' | ' |
Defined Benefit Plan, Assets, Target Allocations (as a percent) | 10.00% | ' | ' |
Pension Plans | Level 1 | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 245 | 191 | ' |
Pension Plans | Level 1 | U.S. large cap stocks | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 97 | 89 | ' |
Pension Plans | Level 1 | U.S. small cap stocks | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 55 | 43 | ' |
Pension Plans | Level 1 | Non-U.S. large cap stocks | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 21 | 17 | ' |
Pension Plans | Level 1 | Non US Small Cap Stock | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 21 | ' | ' |
Pension Plans | Level 1 | Emerging markets | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 14 | 13 | ' |
Pension Plans | Level 1 | U.S. investment grade bonds | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 17 | 20 | ' |
Pension Plans | Level 1 | Cash equivalents | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 20 | 9 | ' |
Pension Plans | Level 2 | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 277 | 216 | ' |
Pension Plans | Level 2 | U.S. large cap stocks | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 43 | 14 | ' |
Pension Plans | Level 2 | U.S. small cap stocks | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 1 | 1 | ' |
Pension Plans | Level 2 | Non-U.S. large cap stocks | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 35 | 30 | ' |
Pension Plans | Level 2 | Non US Small Cap Stock | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 0 | ' | ' |
Pension Plans | Level 2 | Emerging markets | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 23 | 20 | ' |
Pension Plans | Level 2 | U.S. investment grade bonds | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 14 | 12 | ' |
Pension Plans | Level 2 | U. S. high yield bonds | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 21 | 20 | ' |
Pension Plans | Level 2 | Non-U.S. investment grade bonds | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 14 | 15 | ' |
Pension Plans | Level 2 | Pooled pension funds | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 126 | 104 | ' |
Pension Plans | Level 3 | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 22 | 30 | ' |
Pension Plans | Level 3 | Real estate investment trust | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 2 | 12 | ' |
Pension Plans | Level 3 | Hedge funds | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 20 | 18 | ' |
Pension Plans | Total | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 544 | 437 | ' |
Pension Plans | Total | U.S. large cap stocks | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 140 | 103 | ' |
Pension Plans | Total | U.S. small cap stocks | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 56 | 44 | ' |
Pension Plans | Total | Non-U.S. large cap stocks | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 56 | 47 | ' |
Pension Plans | Total | Non US Small Cap Stock | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 21 | ' | ' |
Pension Plans | Total | Emerging markets | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 37 | 33 | ' |
Pension Plans | Total | U.S. investment grade bonds | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 31 | 32 | ' |
Pension Plans | Total | U. S. high yield bonds | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 21 | 20 | ' |
Pension Plans | Total | Non-U.S. investment grade bonds | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 14 | 15 | ' |
Pension Plans | Total | Real estate investment trust | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 2 | 12 | ' |
Pension Plans | Total | Hedge funds | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 20 | 18 | ' |
Pension Plans | Total | Pooled pension funds | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 126 | 104 | ' |
Pension Plans | Total | Cash equivalents | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Fair value of plan assets at the end of the year | 20 | 9 | ' |
Other Postretirement Benefits | ' | ' | ' |
Expected benefit payments to retirees | ' | ' | ' |
2014 | 2 | ' | ' |
2015 | 2 | ' | ' |
2016 | 2 | ' | ' |
2017 | 2 | ' | ' |
2018 | 1 | ' | ' |
2019-2022 | 7 | ' | ' |
Expected contribution to pension plans | $2 | ' | ' |
Retirement_Plans_and_Profit_Sh4
Retirement Plans and Profit Sharing Arrangements (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Threadneedle Profit Sharing Arrangements | ' | ' | ' |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Actuarial Gain (Loss), before Tax | $71 | ($23) | ($77) |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax | -2 | -2 | -2 |
Summary of unrealized losses included in other comprehensive income | ' | ' | ' |
Net unrealized defined benefit losses at the beginning of the period | -91 | -75 | -24 |
Income tax benefit | -24 | 9 | 28 |
Net unrealized defined benefit losses at the end of the period | -46 | -91 | -75 |
Defined Contribution Plan | ' | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 5.00% | ' | ' |
Defined Contribution Plan Employer Contribution Requisite Service Period | '60 days | ' | ' |
Period of graded schedule for vesting match contributions | '5 years | ' | ' |
Defined contribution plan expense | 35 | 36 | 33 |
Profit sharing plan | ' | ' | ' |
Defined Benefit, Threadneedle Profit Sharing Plan [Abstract] | ' | ' | ' |
Percentage of profit sharing | 30.00% | ' | ' |
Compensation expense (benefit) related to the employee profit sharing plan | $69 | $67 | $54 |
Commitments_Guarantees_and_Con2
Commitments, Guarantees and Contingencies (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Aggregate minimum rentals under noncancelable operating leases | ' | ' | ' | |
2014 | $84 | ' | ' | |
2015 | 77 | ' | ' | |
2016 | 64 | ' | ' | |
2017 | 61 | ' | ' | |
2018 | 51 | ' | ' | |
Thereafter | 88 | ' | ' | |
Total | 425 | [1] | ' | ' |
Operating lease expense | 85 | 84 | 91 | |
Funding Commitments | ' | ' | ' | |
Commercial mortgage loan commitments | 71 | 76 | ' | |
Consumer mortgage loan commitments | 542 | 627 | ' | |
Consumer lines of credit | 4 | 5 | ' | |
Affordable housing Partnerships | 137 | 144 | ' | |
Total funding commitments | 754 | 852 | ' | |
Minimum interest rate guarantees, high end of the range (as a percent) | 5.00% | ' | ' | |
Liability related to guaranty fund assessments | 14 | 26 | ' | |
Premium tax asset | 11 | 19 | ' | |
Minimum [Member] | ' | ' | ' | |
Funding Commitments | ' | ' | ' | |
Damages sought by plaintiffs | $20 | ' | ' | |
[1] | Minimum payments have not been reduced by minimum sublease rentals due in the future under noncancelable subleases. |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Discontinued operations components of earnings and balance sheet disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss from discontinued operations, net of tax | ($2) | $1 | ($1) | ($1) | $1 | ($1) | ($1) | ($1) | ($3) | ($2) | ($60) |
Discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discontinued operations components of earnings and balance sheet disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 382 |
Income (loss) from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | -4 | 2 | -124 |
Gain on sale | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -7 | 26 |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -2 | -3 | -38 |
Loss from discontinued operations, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ($3) | ($2) | ($60) |
Segment_Information_Details
Segment Information (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Summary of assets by segment | ' | ' |
Total assets | $144,576 | $134,729 |
Advice and Wealth Management | ' | ' |
Summary of assets by segment | ' | ' |
Total assets | 9,571 | 8,962 |
Asset Management | ' | ' |
Summary of assets by segment | ' | ' |
Total assets | 7,223 | 6,267 |
Annuities | ' | ' |
Summary of assets by segment | ' | ' |
Total assets | 98,354 | 91,587 |
Protection | ' | ' |
Summary of assets by segment | ' | ' |
Total assets | 19,605 | 19,065 |
Corporate and Other | ' | ' |
Summary of assets by segment | ' | ' |
Total assets | $9,823 | $8,848 |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Summary of segment operating results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net realized gains (losses) | ' | ' | ' | ' | ' | ' | ' | ' | $7 | $7 | $6 | |||
Total net revenues per consolidated statements of operations | 2,946 | 2,813 | 2,749 | 2,691 | 2,674 | 2,468 | 2,514 | 2,561 | 11,199 | 10,217 | 10,192 | |||
Reconciliation of operating profit (loss) from segments to consolidated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total segment operating earnings | ' | ' | ' | ' | ' | ' | ' | ' | 2,019 | 1,695 | 1,704 | |||
Less: Net income (loss) attributable to noncontrolling interests | 84 | 67 | -40 | 30 | -57 | -22 | -53 | 4 | 141 | -128 | -106 | |||
Market impact on variable annuity living benefits, net | ' | ' | ' | ' | ' | ' | ' | ' | -170 | -265 | -62 | |||
Market impact on IUL benefits, net | ' | ' | ' | ' | ' | ' | ' | ' | -13 | ' | ' | |||
Integration and restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | -14 | -71 | -95 | |||
Income from continuing operations before income tax provision | 479 | 602 | 402 | 487 | 418 | 199 | 299 | 322 | 1,970 | 1,238 | 1,447 | |||
Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Summary of segment operating results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total segment operating revenues | ' | ' | ' | ' | ' | ' | ' | ' | 10,857 | 10,143 | 10,050 | |||
Net realized gains (losses) | ' | ' | ' | ' | ' | ' | ' | ' | 7 | 7 | 6 | |||
Revenues of CIEs | ' | ' | ' | ' | ' | ' | ' | ' | 345 | 71 | 136 | |||
Market impact on IUL benefits, net | ' | ' | ' | ' | ' | ' | ' | ' | -10 | ' | ' | |||
Business Combination Integration and Restructuring Related Costs | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -4 | 0 | |||
Total net revenues per consolidated statements of operations | ' | ' | ' | ' | ' | ' | ' | ' | 11,199 | 10,217 | 10,192 | |||
Advice and Wealth Management | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Summary of segment operating results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total segment operating revenues | ' | ' | ' | ' | ' | ' | ' | ' | 4,295 | 3,873 | 3,713 | |||
Reconciliation of operating profit (loss) from segments to consolidated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total segment operating earnings | ' | ' | ' | ' | ' | ' | ' | ' | 598 | 443 | 406 | |||
Advice and Wealth Management | Consolidation, Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Summary of segment operating results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total segment operating revenues | ' | ' | ' | ' | ' | ' | ' | ' | 980 | 901 | 930 | |||
Asset Management | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Summary of segment operating results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total segment operating revenues | ' | ' | ' | ' | ' | ' | ' | ' | 3,169 | 2,891 | 2,897 | |||
Reconciliation of operating profit (loss) from segments to consolidated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total segment operating earnings | ' | ' | ' | ' | ' | ' | ' | ' | 715 | 557 | 528 | |||
Asset Management | Consolidation, Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Summary of segment operating results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total segment operating revenues | ' | ' | ' | ' | ' | ' | ' | ' | 39 | 43 | 42 | |||
Annuities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Summary of segment operating results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total segment operating revenues | ' | ' | ' | ' | ' | ' | ' | ' | 2,583 | 2,524 | 2,630 | |||
Reconciliation of operating profit (loss) from segments to consolidated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total segment operating earnings | ' | ' | ' | ' | ' | ' | ' | ' | 686 | 567 | 625 | |||
Annuities | Consolidation, Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Summary of segment operating results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total segment operating revenues | ' | ' | ' | ' | ' | ' | ' | ' | 307 | 271 | 251 | |||
Protection | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Summary of segment operating results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total segment operating revenues | ' | ' | ' | ' | ' | ' | ' | ' | 2,190 | 2,088 | 2,069 | |||
Reconciliation of operating profit (loss) from segments to consolidated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total segment operating earnings | ' | ' | ' | ' | ' | ' | ' | ' | 365 | 398 | 386 | |||
Protection | Consolidation, Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Summary of segment operating results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total segment operating revenues | ' | ' | ' | ' | ' | ' | ' | ' | 40 | 37 | 37 | |||
Corporate and Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Summary of segment operating results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total segment operating revenues | ' | ' | ' | ' | ' | ' | ' | ' | -11 | 20 | 3 | |||
Reconciliation of operating profit (loss) from segments to consolidated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total segment operating earnings | ' | ' | ' | ' | ' | ' | ' | ' | -345 | -270 | -241 | |||
Corporate and Other | Consolidation, Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Summary of segment operating results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total segment operating revenues | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 1 | 2 | |||
Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Summary of segment operating results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total segment operating revenues | ' | ' | ' | ' | ' | ' | ' | ' | ($1,369) | [1] | ($1,253) | [1] | ($1,262) | [1] |
[1] | Represents the elimination of intersegment revenues recognized for the years ended DecemberB 31, 2013, 2012 and 2011 in each segment as follows: Advice and Wealth Management ($980, $901 and $930, respectively); Asset Management ($39, $43 and $42, respectively); Annuities ($307, $271 and $251, respectively); Protection ($40, $37 and $37, respectively); and Corporate & Other ($3, $1 and $2, respectively). |
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Revenues | $2,946 | $2,813 | $2,749 | $2,691 | $2,674 | $2,468 | $2,514 | $2,561 | $11,199 | $10,217 | $10,192 |
Income from continuing operations before income tax provision | 479 | 602 | 402 | 487 | 418 | 199 | 299 | 322 | 1,970 | 1,238 | 1,447 |
Income from continuing operations | 382 | 448 | 282 | 366 | 331 | 152 | 171 | 249 | 1,478 | 903 | 1,070 |
Income (loss) from discontinued operations, net of tax | -2 | 1 | -1 | -1 | 1 | -1 | -1 | -1 | -3 | -2 | -60 |
Net income | 380 | 449 | 281 | 365 | 332 | 151 | 170 | 248 | 1,475 | 901 | 1,010 |
Less: Net income (loss) attributable to noncontrolling interests | 84 | 67 | -40 | 30 | -57 | -22 | -53 | 4 | 141 | -128 | -106 |
Net income attributable to Ameriprise Financial | $296 | $382 | $321 | $335 | $389 | $173 | $223 | $244 | $1,334 | $1,029 | $1,116 |
Basic | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $1.50 | $1.90 | $1.57 | $1.61 | $1.84 | $0.81 | $1.01 | $1.08 | $6.58 | $4.71 | $4.87 |
Income (loss) from discontinued operations (in dollars per share) | ($0.01) | ' | ' | ' | $0.01 | ($0.01) | ' | ($0.01) | ($0.02) | ($0.01) | ($0.25) |
Net income (in dollars per share) | $1.49 | $1.90 | $1.57 | $1.61 | $1.85 | $0.80 | $1.01 | $1.07 | $6.56 | $4.70 | $4.62 |
Diluted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $1.47 | $1.86 | $1.54 | $1.58 | $1.80 | $0.79 | $0.99 | $1.06 | $6.46 | $4.63 | $4.77 |
Income (loss) from discontinued operations (in dollars per share) | ($0.01) | ' | ' | ' | $0.01 | ' | ' | ($0.01) | ($0.02) | ($0.01) | ($0.24) |
Net income (in dollars per share) | $1.46 | $1.86 | $1.54 | $1.58 | $1.81 | $0.79 | $0.99 | $1.05 | $6.44 | $4.62 | $4.53 |
Weighted average common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | 198.3 | 201.3 | 204.9 | 208.4 | 210.8 | 215 | 221.7 | 227.3 | 203.2 | 218.7 | 241.4 |
Diluted | 202.3 | 205.1 | 208.6 | 212.3 | 215.1 | 219.1 | 225.6 | 231.7 | 207.1 | 222.8 | 246.3 |
Cash dividends declared per common share (in dollars per share) | $0.52 | $0.52 | $0.52 | $0.45 | $0.45 | $0.35 | $0.35 | $0 | $2.01 | $1.15 | $1.15 |
Common share price: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
High (in dollars per share) | $115.36 | $94.45 | $84.29 | $75.14 | $63.75 | $60.47 | $57.94 | $58.68 | $115.36 | $63.75 | ' |
Low (in dollars per share) | $89.37 | $80.49 | $69.35 | $63.59 | $55.66 | $47.84 | $45.17 | $49.14 | $89.37 | $55.66 | ' |
SCHEDULE_I_CONDENSED_FINANCIAL2
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management and financial advice fees | ' | ' | ' | ' | ' | ' | ' | ' | $5,253 | $4,692 | $4,537 |
Distribution fees | ' | ' | ' | ' | ' | ' | ' | ' | 1,771 | 1,616 | 1,573 |
Other revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,035 | 795 | 863 |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 11,230 | 10,259 | 10,239 |
Banking and deposit interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 31 | 42 | 47 |
Total net revenues | 2,946 | 2,813 | 2,749 | 2,691 | 2,674 | 2,468 | 2,514 | 2,561 | 11,199 | 10,217 | 10,192 |
Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution expenses | ' | ' | ' | ' | ' | ' | ' | ' | 3,036 | 2,698 | 2,559 |
Interest and debt expense | ' | ' | ' | ' | ' | ' | ' | ' | 281 | 276 | 317 |
General and administrative expense | ' | ' | ' | ' | ' | ' | ' | ' | 2,945 | 2,989 | 3,010 |
Total expenses | ' | ' | ' | ' | ' | ' | ' | ' | 9,229 | 8,979 | 8,745 |
Income tax provision | ' | ' | ' | ' | ' | ' | ' | ' | 492 | 335 | 377 |
Income from continuing operations attributable to Ameriprise Financial | ' | ' | ' | ' | ' | ' | ' | ' | 1,337 | 1,031 | 1,176 |
Loss from discontinued operations, net of tax | -2 | 1 | -1 | -1 | 1 | -1 | -1 | -1 | -3 | -2 | -60 |
Net income | 380 | 449 | 281 | 365 | 332 | 151 | 170 | 248 | 1,475 | 901 | 1,010 |
Ameriprise Financial, Inc: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management and financial advice fees | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 1 | 0 |
Distribution fees | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 0 | 9 |
Net investment income | ' | ' | ' | ' | ' | ' | ' | ' | 33 | 29 | 18 |
Other revenues | ' | ' | ' | ' | ' | ' | ' | ' | 7 | 9 | 30 |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 45 | 39 | 57 |
Banking and deposit interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 3 | 0 |
Total net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 45 | 36 | 57 |
Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Benefits, claims, losses and settlement expenses | ' | ' | ' | ' | ' | ' | ' | ' | 19 | 0 | 0 |
Distribution expenses | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -5 | 5 |
Interest and debt expense | ' | ' | ' | ' | ' | ' | ' | ' | 123 | 94 | 95 |
General and administrative expense | ' | ' | ' | ' | ' | ' | ' | ' | 221 | 255 | 223 |
Total expenses | ' | ' | ' | ' | ' | ' | ' | ' | 363 | 344 | 323 |
Pretax loss before equity in earnings of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -318 | -308 | -266 |
Income tax provision | ' | ' | ' | ' | ' | ' | ' | ' | -85 | -104 | -102 |
Loss before equity in earnings of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -233 | -204 | -164 |
Equity in earnings of subsidiaries excluding discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | 1,570 | 1,235 | 1,340 |
Income from continuing operations attributable to Ameriprise Financial | ' | ' | ' | ' | ' | ' | ' | ' | 1,337 | 1,031 | 1,176 |
Loss from discontinued operations, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | -3 | -2 | -60 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | $1,334 | $1,029 | $1,116 |
SCHEDULE_I_CONDENSED_FINANCIAL3
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income | $380 | $449 | $281 | $365 | $332 | $151 | $170 | $248 | $1,475 | $901 | $1,010 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustment | ' | ' | ' | ' | ' | ' | ' | ' | 37 | 50 | -10 |
Net unrealized gains (losses) on securities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net unrealized securities gains (losses) arising during the period | ' | ' | ' | ' | ' | ' | ' | ' | -971 | 588 | 376 |
Reclassification of net securities gains included in net income | ' | ' | ' | ' | ' | ' | ' | ' | -5 | -5 | 0 |
Impact on deferred acquisition costs, deferred sales inducement costs, benefit reserves and reinsurance recoverables | ' | ' | ' | ' | ' | ' | ' | ' | 319 | -154 | -193 |
Total net unrealized gains (losses) on securities | ' | ' | ' | ' | ' | ' | ' | ' | -657 | 429 | 183 |
Net unrealized gains (losses) on derivatives: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net unrealized derivative gains (losses) arising during the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | -7 |
Reclassification of net derivative (gains) losses included in net income | ' | ' | ' | ' | ' | ' | ' | ' | 1 | -1 | -22 |
Total net unrealized gains (losses) on derivatives | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 9 | -29 |
Defined benefit plans: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prior service credit | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -1 | -1 |
Net income (loss) arising during the period | ' | ' | ' | ' | ' | ' | ' | ' | 46 | -15 | -50 |
Total defined benefit plans | ' | ' | ' | ' | ' | ' | ' | ' | -45 | 16 | 51 |
Total other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | ' | ' | ' | -574 | 472 | 93 |
Total other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | ' | ' | ' | 901 | 1,373 | 1,103 |
Ameriprise Financial, Inc: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 1,334 | 1,029 | 1,116 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustment | ' | ' | ' | ' | ' | ' | ' | ' | 12 | 21 | -2 |
Net unrealized gains (losses) on securities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net unrealized securities gains (losses) arising during the period | ' | ' | ' | ' | ' | ' | ' | ' | -971 | 588 | 376 |
Reclassification of net securities gains included in net income | ' | ' | ' | ' | ' | ' | ' | ' | -5 | -5 | ' |
Impact on deferred acquisition costs, deferred sales inducement costs, benefit reserves and reinsurance recoverables | ' | ' | ' | ' | ' | ' | ' | ' | 319 | -154 | -193 |
Total net unrealized gains (losses) on securities | ' | ' | ' | ' | ' | ' | ' | ' | -657 | 429 | 183 |
Net unrealized gains (losses) on derivatives: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net unrealized derivative gains (losses) arising during the period | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 10 | -7 |
Reclassification of net derivative (gains) losses included in net income | ' | ' | ' | ' | ' | ' | ' | ' | 1 | -1 | -22 |
Total net unrealized gains (losses) on derivatives | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 9 | -29 |
Defined benefit plans: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prior service credit | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -1 | -1 |
Net income (loss) arising during the period | ' | ' | ' | ' | ' | ' | ' | ' | 46 | -15 | -50 |
Total defined benefit plans | ' | ' | ' | ' | ' | ' | ' | ' | -45 | 16 | 51 |
Total other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | ' | ' | ' | -599 | 443 | 101 |
Total other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | ' | ' | ' | $735 | $1,472 | $1,217 |
SCHEDULE_I_CONDENSED_FINANCIAL4
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Assets | ' | ' | ' | ' |
Cash and cash equivalents | $2,632 | $2,371 | $2,781 | $2,861 |
Land, buildings, equipment and software, net of accumulated depreciation | 705 | 753 | ' | ' |
Total assets | 144,576 | 134,729 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Total liabilities | 135,344 | 125,017 | ' | ' |
Common Stock, Value, Issued | 3 | 3 | ' | ' |
Additional paid-in capital | 6,929 | 6,503 | ' | ' |
Retained Earnings (Accumulated Deficit) | 7,289 | 6,381 | ' | ' |
Treasury Stock, Value | -6,961 | -5,325 | ' | ' |
Accumulated other comprehensive income, net of tax | 595 | 1,194 | ' | ' |
Shareholders' Equity: | ' | ' | ' | ' |
Total Ameriprise Financial, Inc. shareholders' equity | 8,192 | 9,092 | ' | ' |
Total liabilities and equity | 144,576 | 134,729 | ' | ' |
Ameriprise Financial, Inc: | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 925 | 900 | 712 | 1,316 |
Investments | 743 | 894 | ' | ' |
Loans to subsidiaries | 457 | 467 | ' | ' |
Due from subsidiaries | 416 | 225 | ' | ' |
Receivables | 64 | 12 | ' | ' |
Land, buildings, equipment and software, net of accumulated depreciation | 250 | 251 | ' | ' |
Investment in subsidiaries | 7,652 | 8,200 | ' | ' |
Other assets | 1,224 | 1,350 | ' | ' |
Total assets | 11,731 | 12,299 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Accounts Payable and Accrued Liabilities | 191 | 198 | ' | ' |
Due to subsidiaries | 405 | 330 | ' | ' |
Long-term Debt | 2,720 | 2,403 | ' | ' |
Other liabilities | 560 | 612 | ' | ' |
Total liabilities | 3,876 | 3,543 | ' | ' |
Common Stock, Value, Issued | 3 | 3 | ' | ' |
Additional paid-in capital | 6,929 | 6,503 | ' | ' |
Retained Earnings (Accumulated Deficit) | 7,289 | 6,381 | ' | ' |
Treasury Stock, Value | -6,961 | -5,325 | ' | ' |
Accumulated other comprehensive income, net of tax | 595 | 1,194 | ' | ' |
Shareholders' Equity: | ' | ' | ' | ' |
Total Ameriprise Financial, Inc. shareholders' equity | 7,855 | 8,756 | ' | ' |
Total liabilities and equity | $11,731 | $12,299 | ' | ' |
SCHEDULE_I_CONDENSED_FINANCIAL5
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 2) (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Accumulated depreciation | $1,300 | $1,200 |
Common shares, par value (in dollars per share) | $0.01 | $0.01 |
Common shares, shares authorized | 1,250,000,000 | 1,250,000,000 |
Common shares, shares issued | 316,816,851 | 309,399,529 |
Treasury shares | 124,698,544 | 105,456,535 |
Ameriprise Financial, Inc: | ' | ' |
Accumulated depreciation | $805 | $756 |
Common shares, par value (in dollars per share) | $0.01 | $0.01 |
Common shares, shares authorized | 1,250,000,000 | 1,250,000,000 |
Common shares, shares issued | 309,399,529 | 303,757,574 |
Treasury shares | 105,456,535 | 81,814,591 |
SCHEDULE_I_CONDENSED_FINANCIAL6
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Ameriprise Financial, Inc: | Ameriprise Financial, Inc: | Ameriprise Financial, Inc: | Ameriprise Financial, Inc: | ||||||||||||
Cash Flows from Operating Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $380 | $449 | $281 | $365 | $332 | $151 | $170 | $248 | $1,475 | $901 | $1,010 | ' | $1,334 | $1,029 | $1,116 |
Equity in earnings of subsidiaries excluding discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,570 | -1,235 | -1,340 |
Loss from discontinued operations, net of tax | 2 | -1 | 1 | 1 | -1 | 1 | 1 | 1 | 3 | 2 | 60 | ' | 3 | 2 | 60 |
Dividends received from subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,163 | 1,366 | 1,210 |
Other operating activities, primarily with subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -34 | 197 | -231 |
Net cash provided by operating activities | ' | ' | ' | ' | ' | ' | ' | ' | 1,364 | 1,505 | 2,178 | ' | 896 | 1,359 | 815 |
Cash Flows from Investing Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sales | ' | ' | ' | ' | ' | ' | ' | ' | 327 | 3,719 | 888 | ' | 2 | 0 | 0 |
Maturities, sinking fund payments and calls | ' | ' | ' | ' | ' | ' | ' | ' | 5,101 | 4,994 | 5,206 | ' | 191 | 30 | 239 |
Purchases | ' | ' | ' | ' | ' | ' | ' | ' | -5,780 | -4,957 | -7,236 | ' | -109 | 0 | -22 |
Proceeds from sale of other investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43 | 1 | 0 |
Purchase of other investments | ' | ' | ' | ' | ' | ' | ' | ' | -347 | -403 | -422 | ' | -1 | -55 | 0 |
Purchase of land, buildings, equipment and software | ' | ' | ' | ' | ' | ' | ' | ' | -105 | -137 | -250 | ' | -54 | -38 | -56 |
Contributions to subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -106 | -131 | -128 |
Return of capital from subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 470 | 347 | 22 |
Proceeds from sale of business | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 150 | 150 | 0 | 0 | 150 |
Repayment of loans from subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,420 | 1,150 | 1,252 |
Issuance of loans to subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,412 | -994 | -1,312 |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | 46 | 8 | -9 | ' | 20 | -16 | 2 |
Net cash provided by (used in) investing activities | ' | ' | ' | ' | ' | ' | ' | ' | -802 | 4,417 | -1,146 | ' | 464 | 294 | 147 |
Cash Flows from Financing Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends paid to shareholders | ' | ' | ' | ' | ' | ' | ' | ' | -401 | -305 | -212 | ' | -401 | -305 | -212 |
Repurchase of common shares | ' | ' | ' | ' | ' | ' | ' | ' | -1,583 | -1,381 | -1,495 | ' | -1,583 | -1,381 | -1,495 |
Cash paid for purchased options with deferred premiums | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4 | 0 | 0 |
Cash received for purchased options with deferred premiums | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23 | 0 | 0 |
Issuance of debt, net of issuance costs | ' | ' | ' | ' | ' | ' | ' | ' | 744 | 0 | 0 | ' | 744 | 0 | 0 |
Repayments of debt | ' | ' | ' | ' | ' | ' | ' | ' | -350 | 0 | -20 | ' | -350 | 0 | -14 |
Exercise of stock options | ' | ' | ' | ' | ' | ' | ' | ' | 118 | 160 | 66 | ' | 118 | 160 | 66 |
Excess tax benefits from share-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | 120 | 64 | 90 | ' | 120 | 64 | 90 |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | 15 | -4 | 0 | ' | -2 | -3 | -1 |
Net cash used in financing activities | ' | ' | ' | ' | ' | ' | ' | ' | -306 | -6,342 | -1,111 | ' | -1,335 | -1,465 | -1,566 |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | 261 | -410 | -80 | ' | 25 | 188 | -604 |
Cash and cash equivalents at beginning of period | ' | ' | ' | 2,371 | ' | ' | ' | 2,781 | 2,371 | 2,781 | 2,861 | ' | 900 | 712 | 1,316 |
Cash and cash equivalents at end of period | 2,632 | ' | ' | ' | 2,371 | ' | ' | ' | 2,632 | 2,371 | 2,781 | 712 | 925 | 900 | 712 |
Supplemental Disclosures: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest paid on debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 129 | 139 | 139 |
Income Taxes Paid, Net | ' | ' | ' | ' | ' | ' | ' | ' | 391 | 217 | 370 | ' | 354 | 170 | 334 |
Non-cash capital transactions to (from) subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -850 |
Non-cash Financing activity: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends declared but not paid | $0 | ' | ' | ' | $0 | ' | ' | ' | $0 | $0 | $62 | $62 | $0 | $0 | $62 |
SCHEDULE_I_CONDENSED_FINANCIAL7
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 02, 2009 |
Proceeds from sale of business | ' | $0 | $0 | $150 | ' |
Ameriprise Financial, Inc: | ' | ' | ' | ' | ' |
Proceeds from sale of business | 150 | 0 | 0 | 150 | ' |
Debt | ' | ' | ' | ' | ' |
Repurchase agreements, debt | ' | 50 | 501 | ' | ' |
Short-term borrowings | ' | 450 | ' | ' | ' |
Guarantees, Commitments and Contingencies | ' | ' | ' | ' | ' |
Maximum commitment under Capital Support Agreement | ' | ' | ' | ' | $115 |