Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 21, 2014 | |
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-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 189,879,504 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues | ' | ' |
Management and financial advice fees | $1,386 | $1,244 |
Distribution fees | 476 | 434 |
Net investment income | 471 | 489 |
Premiums | 330 | 310 |
Other revenues | 340 | 222 |
Total revenues | 3,003 | 2,699 |
Banking and deposit interest expense | 7 | 8 |
Total net revenues | 2,996 | 2,691 |
Expenses | ' | ' |
Distribution expenses | 786 | 698 |
Interest credited to fixed accounts | 186 | 198 |
Benefits, claims, losses and settlement expenses | 450 | 409 |
Amortization of deferred acquisition costs | 87 | 75 |
Interest and debt expense | 79 | 66 |
General and administrative expense | 758 | 758 |
Total expenses | 2,346 | 2,204 |
Income from continuing operations before income tax provision | 650 | 487 |
Income tax provision | 134 | 121 |
Income from continuing operations | 516 | 366 |
Loss from discontinued operations, net of tax | -1 | -1 |
Net income | 515 | 365 |
Less: Net income attributable to noncontrolling interests | 115 | 30 |
Net Income (Loss) Attributable to Parent | 400 | 335 |
Basic | ' | ' |
Income from continuing operations (in dollars per share) | $2.05 | $1.61 |
Loss from discontinued operations (in dollars per share) | ' | ' |
Net income (in dollars per share) | $2.05 | $1.61 |
Diluted | ' | ' |
Income from continuing operations (in dollars per share) | $2.01 | $1.58 |
Loss from discontinued operations (in dollars per share) | ' | ' |
Net income (in dollars per share) | $2.01 | $1.58 |
Cash dividends declared per common share (in dollars per share) | $0.52 | $0.45 |
Supplemental Disclosures: | ' | ' |
Total other-than-temporary impairment losses on securities | -1 | -1 |
Portion of loss recognized in other comprehensive income (loss) (before taxes) | ' | -2 |
Net impairment losses recognized in net investment income | ($1) | ($3) |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net income | $515 | $365 |
Other comprehensive income (loss), net of tax: | ' | ' |
Foreign currency translation adjustment | 15 | -73 |
Net unrealized gains (losses) on securities: | ' | ' |
Net unrealized securities gains (losses) arising during the period | 239 | -141 |
Reclassification of net securities gains included in net income | -3 | -1 |
Impact on deferred acquisition costs, deferred sales inducement costs, benefit reserves and reinsurance recoverables | -91 | 64 |
Total net unrealized gains (losses) on securities | 145 | -78 |
Total other comprehensive income (loss), net of tax | 160 | -151 |
Total comprehensive income | 675 | 214 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 124 | -11 |
Comprehensive income attributable to Ameriprise Financial | $551 | $225 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $2,403 | $2,632 |
Total assets | 145,964 | 144,576 |
Liabilities: | ' | ' |
Policyholder Account Balances, Future Policy Benefits and Claims | 29,625 | 29,620 |
Separate account liabilities | 81,872 | 81,223 |
Total liabilities | 136,519 | 135,344 |
Ameriprise Financial, Inc.: | ' | ' |
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 318,408,621 and 316,816,851, respectively) | 3 | 3 |
Additional paid-in capital | 7,046 | 6,929 |
Retained earnings | 7,582 | 7,289 |
Appropriated retained earnings of consolidated investment entities | 356 | 337 |
Treasury shares, at cost (127,847,137 and 124,698,544 shares, respectively) | -7,389 | -6,961 |
Accumulated other comprehensive income, net of tax | 746 | 595 |
Total Ameriprise Financial, Inc. shareholders' equity | 8,344 | 8,192 |
Noncontrolling interests | 1,101 | 1,040 |
Total equity | 9,445 | 9,232 |
Total liabilities and equity | 145,964 | 144,576 |
Ameriprise Financial | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 2,403 | 2,632 |
Investments | 35,906 | 35,735 |
Separate account assets | 81,872 | 81,223 |
Receivables | 4,639 | 4,538 |
Deferred acquisition costs | 2,630 | 2,663 |
Restricted and segregated cash and investments | 2,391 | 2,360 |
Other assets | 8,160 | 7,983 |
Liabilities: | ' | ' |
Policyholder Account Balances, Future Policy Benefits and Claims | 29,625 | 29,620 |
Separate account liabilities | 81,872 | 81,223 |
Customer deposits | 7,211 | 7,062 |
Short-term borrowings | 300 | 500 |
Total long-term debt | 2,719 | 2,720 |
Accounts payable and accrued expenses | 1,187 | 1,367 |
Other liabilities | 7,143 | 6,829 |
Consolidated Investment Entities | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 496 | 419 |
Investments | 5,397 | 5,002 |
Receivables | 75 | 72 |
Other assets | 1,995 | 1,949 |
Liabilities: | ' | ' |
Total long-term debt | 6,147 | 5,736 |
Accounts payable and accrued expenses | 41 | 62 |
Other liabilities | $274 | $225 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
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 | 318,408,621 | 316,816,851 |
Treasury shares | 127,847,137 | 124,698,544 |
Consolidated Investment Entities | ' | ' |
Receivables, fair value (in dollars) | $36 | $32 |
Debt, fair value (in dollars) | 5,225 | 4,804 |
Other liabilities, fair value (in dollars) | $238 | $193 |
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, 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) | 365 | 335 | ' | ' | 335 | ' | ' | ' | 30 |
Other comprehensive income (loss), net of tax | -151 | -110 | ' | ' | ' | ' | ' | -110 | -41 |
Total comprehensive income | 214 | 225 | ' | ' | ' | ' | ' | ' | -11 |
Net loss reclassified to appropriated retained earnings | ' | 25 | ' | ' | ' | 25 | ' | ' | -25 |
Dividends to shareholders | -94 | -94 | ' | ' | -94 | ' | ' | ' | ' |
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 76 | ' | ' | ' | ' | ' | ' | ' | 76 |
Distributions to noncontrolling interests | -9 | ' | ' | ' | ' | ' | ' | ' | -9 |
Repurchase of common shares | -471 | -471 | ' | ' | ' | ' | -471 | ' | ' |
Repurchase of common shares (in shares) | ' | ' | -6,855,689 | ' | ' | ' | ' | ' | ' |
Share-based compensation plans | 189 | 183 | ' | 89 | -5 | ' | 99 | ' | 6 |
Share-based compensation plans (in shares) | ' | ' | 5,378,793 | ' | ' | ' | ' | ' | ' |
Balances at Mar. 31, 2013 | 9,617 | 8,960 | 3 | 6,592 | 6,617 | 361 | -5,697 | 1,084 | 657 |
Balances (in shares) at Mar. 31, 2013 | ' | ' | 202,466,098 | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' |
Comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 515 | 400 | ' | ' | 400 | ' | ' | ' | 115 |
Other comprehensive income (loss), net of tax | 160 | 151 | ' | ' | ' | ' | ' | 151 | 9 |
Total comprehensive income | 675 | 551 | ' | ' | ' | ' | ' | ' | 124 |
Net loss reclassified to appropriated retained earnings | ' | 19 | ' | ' | ' | 19 | ' | ' | -19 |
Dividends to shareholders | -103 | -103 | ' | ' | -103 | ' | ' | ' | ' |
Distributions to noncontrolling interests | -49 | ' | ' | ' | ' | ' | ' | ' | -49 |
Repurchase of common shares | -516 | -516 | ' | ' | ' | ' | -516 | ' | ' |
Repurchase of common shares (in shares) | ' | ' | -4,706,057 | ' | ' | ' | ' | ' | ' |
Share-based compensation plans | 206 | 201 | ' | 117 | -4 | ' | 88 | ' | 5 |
Share-based compensation plans (in shares) | ' | ' | 3,149,234 | ' | ' | ' | ' | ' | ' |
Balances at Mar. 31, 2014 | $9,445 | $8,344 | $3 | $7,046 | $7,582 | $356 | ($7,389) | $746 | $1,101 |
Balances (in shares) at Mar. 31, 2014 | ' | ' | 190,561,484 | ' | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash Flows from Operating Activities | ' | ' |
Net income | $515 | $365 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' |
Depreciation, amortization and accretion, net | 63 | 58 |
Deferred income tax expense (benefit) | -37 | 41 |
Share-based compensation | 30 | 33 |
Net realized investment gains | -6 | -4 |
Net trading gains | -2 | ' |
Loss (income) from equity method investments | 3 | -1 |
Other-than-temporary impairments and provision for loan losses | 1 | 3 |
Net gains of consolidated investment entities | -101 | -26 |
Changes in operating assets and liabilities: | ' | ' |
Restricted and segregated cash and investments | -31 | 264 |
Deferred acquisition costs | 8 | -3 |
Other investments, net | ' | -6 |
Policyholder account balances, future policy benefits and claims, net | 121 | -557 |
Derivatives, net of collateral | -85 | 279 |
Receivables | -144 | -52 |
Brokerage deposits | 60 | -227 |
Accounts payable and accrued expenses | -183 | -193 |
Cash held by consolidated investment entities | -72 | -302 |
Investment properties of consolidated investment entities | 49 | -45 |
Other operating assets and liabilities of consolidated investment entities, net | -14 | -62 |
Other, net | 259 | -31 |
Net cash provided by (used in) operating activities | 434 | -466 |
Available-for-Sale securities: | ' | ' |
Proceeds from sales | 161 | 169 |
Maturities, sinking fund payments and calls | 1,104 | 1,249 |
Purchases | -1,029 | -1,187 |
Proceeds from maturities and repayments of mortgage loans | 140 | 186 |
Funding of mortgage loans | -124 | -152 |
Proceeds from sales and collections of other investments | 57 | 67 |
Purchase of other investments | -111 | -86 |
Purchase of investments by consolidated investment entities | -742 | -531 |
Proceeds from sales, maturities and repayments of investments by consolidated investment entities | 418 | 690 |
Purchase of land, buildings, equipment and software | -20 | -14 |
Other, net | 1 | -2 |
Net cash provided by (used in) investing activities | -145 | 389 |
Investment certificates: | ' | ' |
Proceeds from additions | 617 | 599 |
Maturities, withdrawals and cash surrenders | -528 | -403 |
Policyholder account balances: | ' | ' |
Deposits and other additions | 494 | 494 |
Net transfers to separate accounts | -56 | -36 |
Surrenders and other benefits | -661 | -512 |
Cash paid for purchased options with deferred premiums | 124 | 98 |
Cash received from purchased options with deferred premiums | 47 | ' |
Change in short-term borrowings, net | -200 | -1 |
Dividends paid to shareholders | -100 | -92 |
Repurchase of common shares | -457 | -406 |
Exercise of stock options | 11 | 48 |
Excess tax benefits from share-based compensation | 92 | 51 |
Borrowings by consolidated investment entities | 478 | 467 |
Repayments of debt by consolidated investment entities | -85 | -291 |
Noncontrolling interests investments in subsidiaries | 0 | 76 |
Distributions to noncontrolling interests | -49 | -9 |
Other, net | 0 | -1 |
Net cash used in financing activities | -521 | -114 |
Effect of exchange rate changes on cash | 3 | -20 |
Net decrease in cash and cash equivalents | -229 | -211 |
Cash and cash equivalents at beginning of period | 2,632 | 2,371 |
Cash and cash equivalents at end of period | 2,403 | 2,160 |
Supplemental Disclosures: | ' | ' |
Interest paid excluding consolidated investment entities | 32 | 35 |
Income taxes paid, net | 50 | 10 |
Non-cash investing activity: | ' | ' |
Affordable housing partnership commitments not yet remitted | $0 | $10 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
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 3 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 interim financial information in this report has not been audited. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated results of operations and financial position for the interim periods have been made. All adjustments made were of a normal recurring nature. | |
The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Results of operations reported for interim periods are not necessarily indicative of results for the entire year. These Consolidated Financial Statements and Notes should be read in conjunction with the consolidated Financial Statements and Notes in the Company’s annual report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission (“SEC”) on February 27, 2014. | |
In the Consolidated Statements of Operations, the Company reclassified certain fixed wholesaling costs from distribution expenses to general and administrative expense on a retroactive basis to improve consistency in its presentation of wholesaling distribution expense. The amount reclassified for the three months ended March 31, 2013 was $28 million. The Company also reclassified certain prior period 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, net” 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 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: Maturities, withdrawals and cash surrenders” to “Investment certificates: Proceeds from additions.” | |
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. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
Adoption of New Accounting Standards | |
Income Taxes | |
In July 2013, the Financial Accounting Standards Board (“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 Company adopted the standard in the first quarter of 2014. The adoption of the standard did not 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 standard provides a new two-tiered approach for determining whether a company is an investment company and requires new disclosures for investment companies. The guidance does not directly apply to the Company and did not impact investment entities that the Company consolidates. 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 did not have a material impact on the Company’s consolidated results of operations and financial condition. | |
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. |
Consolidated_Investment_Entiti
Consolidated Investment Entities | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
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 4 for additional information about these structured investments. | |||||||||||||||||||||
During the three months ended March 31, 2014, the Company consolidated one new investment entity. | |||||||||||||||||||||
Fair Value of Assets and Liabilities | |||||||||||||||||||||
The Company categorizes its fair value measurements according to a three-level hierarchy. See Note 10 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-Mar-14 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Investments: | |||||||||||||||||||||
Corporate debt securities | $ | — | $ | 152 | $ | 13 | $ | 165 | |||||||||||||
Common stocks | 166 | 40 | 10 | 216 | |||||||||||||||||
Other investments | 4 | 33 | — | 37 | |||||||||||||||||
Syndicated loans | — | 4,595 | 384 | 4,979 | |||||||||||||||||
Total investments | 170 | 4,820 | 407 | 5,397 | |||||||||||||||||
Receivables | — | 36 | — | 36 | |||||||||||||||||
Other assets | — | 2 | 1,993 | 1,995 | |||||||||||||||||
Total assets at fair value | $ | 170 | $ | 4,858 | $ | 2,400 | $ | 7,428 | |||||||||||||
Liabilities | |||||||||||||||||||||
Debt | $ | — | $ | — | $ | 5,225 | $ | 5,225 | |||||||||||||
Other liabilities | — | 238 | — | 238 | |||||||||||||||||
Total liabilities at fair value | $ | — | $ | 238 | $ | 5,225 | $ | 5,463 | |||||||||||||
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 | |||||||||||||
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, 2014 | $ | 2 | $ | 14 | $ | 368 | $ | 1,936 | $ | (4,804 | ) | ||||||||||
Total gains (losses) included in: | |||||||||||||||||||||
Net income | 1 | (1) | 2 | (1) | 4 | (1) | 80 | (2) | (10 | ) | (1) | ||||||||||
Other comprehensive income (loss) | — | — | — | 15 | — | ||||||||||||||||
Purchases | 2 | — | 96 | 19 | — | ||||||||||||||||
Sales | (2 | ) | — | — | (68 | ) | — | ||||||||||||||
Issues | — | — | — | — | (456 | ) | |||||||||||||||
Settlements | — | — | (12 | ) | — | 45 | |||||||||||||||
Transfers into Level 3 | 10 | 6 | 146 | 11 | — | ||||||||||||||||
Transfers out of Level 3 | — | (12 | ) | (218 | ) | — | — | ||||||||||||||
Balance, March 31, 2014 | $ | 13 | $ | 10 | $ | 384 | $ | 1,993 | $ | (5,225 | ) | ||||||||||
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at March 31, 2014 | $ | 1 | (1) | $ | 2 | (1) | $ | 3 | (1) | $ | 78 | (2) | $ | (10 | ) | (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, 2013 | $ | 3 | $ | 14 | $ | 202 | $ | 1,214 | $ | (4,450 | ) | ||||||||||
Total losses included in: | |||||||||||||||||||||
Net income | — | — | — | (6 | ) | (2) | (24 | ) | (1) | ||||||||||||
Other comprehensive income (loss) | — | — | — | (77 | ) | — | |||||||||||||||
Purchases | — | — | 76 | 51 | — | ||||||||||||||||
Sales | — | — | (18 | ) | (6 | ) | — | ||||||||||||||
Issues | — | — | — | — | (410 | ) | |||||||||||||||
Settlements | — | — | (13 | ) | — | 289 | |||||||||||||||
Transfers into Level 3 | — | 2 | 51 | — | — | ||||||||||||||||
Transfers out of Level 3 | — | (8 | ) | (93 | ) | — | — | ||||||||||||||
Balance, March 31, 2013 | $ | 3 | $ | 8 | $ | 205 | $ | 1,176 | $ | (4,595 | ) | ||||||||||
Changes in unrealized losses included in income relating to assets and liabilities held at March 31, 2013 | $ | — | $ | — | $ | — | $ | (5 | ) | (2) | $ | (24 | ) | (1) | |||||||
(1) Included in net investment income in the Consolidated Statements of Operations. | |||||||||||||||||||||
(2) Included in other revenues 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: | |||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range | Weighted Average | |||||||||||||||||
(in millions) | |||||||||||||||||||||
Other assets | $ | 1,993 | Discounted cash flow/ market comparables | Equivalent yield | 4.6 | % | – | 11.9 | % | 7.2 | % | ||||||||||
Expected rental value (per square foot) | $5 | – | $374 | $33 | |||||||||||||||||
Debt | $ | 5,225 | Discounted cash flow | Annual default rate | 2.5 | % | – | 2.5 | % | 2.5 | % | ||||||||||
Discount rate | 1.4 | % | – | 7.5 | % | 2.6 | % | ||||||||||||||
Constant prepayment rate | 5 | % | – | 10 | % | 9.8 | % | ||||||||||||||
Loss recovery | 36.4 | % | – | 63.6 | % | 62.6 | % | ||||||||||||||
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 | % | – | 12.4 | % | 7.4 | % | ||||||||||
Expected rental value (per square foot) | $5 | – | $373 | $33 | |||||||||||||||||
Debt | $ | 4,804 | Discounted cash flow | Annual default rate | 2.5 | % | – | 2.5 | % | 2.5 | % | ||||||||||
Discount rate | 1.5 | % | – | 8.3 | % | 2.7 | % | ||||||||||||||
Constant prepayment rate | 5 | % | – | 10 | % | 9.8 | % | ||||||||||||||
Loss recovery | 36.4 | % | – | 63.6 | % | 62.3 | % | ||||||||||||||
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 using a market approach with observable inputs is classified as Level 2. The fair value of syndicated loans obtained from third party pricing services with a single non-binding broker quote as the underlying valuation source is classified as Level 3. The underlying inputs used in non-binding broker quotes are not readily available to the Company. | |||||||||||||||||||||
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 10 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 CDOs consist primarily of warrants. Warrants 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: | |||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Syndicated loans | |||||||||||||||||||||
Unpaid principal balance | $ | 5,028 | $ | 4,628 | |||||||||||||||||
Excess unpaid principal over fair value | (49 | ) | (56 | ) | |||||||||||||||||
Fair value | $ | 4,979 | $ | 4,572 | |||||||||||||||||
Fair value of loans more than 90 days past due | $ | 27 | $ | 23 | |||||||||||||||||
Fair value of loans in nonaccrual status | 27 | 23 | |||||||||||||||||||
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both | 28 | 33 | |||||||||||||||||||
Debt | |||||||||||||||||||||
Unpaid principal balance | $ | 5,446 | $ | 5,032 | |||||||||||||||||
Excess unpaid principal over fair value | (221 | ) | (228 | ) | |||||||||||||||||
Fair value | $ | 5,225 | $ | 4,804 | |||||||||||||||||
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 was $21 million for both the three months ended March 31, 2014 and 2013. 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 | ||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | 31-Mar-14 | 31-Dec-13 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||
Debt of consolidated CDOs due 2016-2026 | $ | 5,225 | $ | 4,804 | 1.1 | % | 1 | % | |||||||||||||
Floating rate revolving credit borrowings due 2014 | 267 | 305 | 2.6 | 2.6 | |||||||||||||||||
Floating rate revolving credit borrowings due 2015 | 98 | 97 | 2.4 | 2.4 | |||||||||||||||||
Floating rate revolving credit borrowings due 2017 | 121 | 120 | 4.6 | 4.5 | |||||||||||||||||
Floating rate revolving credit borrowings due 2018 | 403 | 377 | 3.6 | 3.5 | |||||||||||||||||
Floating rate revolving credit borrowings due 2019 | 33 | 33 | 3 | 3 | |||||||||||||||||
Total | $ | 6,147 | $ | 5,736 | |||||||||||||||||
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 current 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 $922 million and $932 million as of March 31, 2014 and December 31, 2013, 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 $7 million and $5 million at March 31, 2014 and December 31, 2013, respectively. The overall effective interest rate reflecting the impact of the derivative contracts was 4.3% and 4.2% as of March 31, 2014 and December 31, 2013, respectively. |
Investments
Investments | 3 Months Ended | |||||||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||||||||
Investments | ' | |||||||||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||||||||
The following is a summary of Ameriprise Financial investments: | ||||||||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Available-for-Sale securities, at fair value | $ | 30,478 | $ | 30,310 | ||||||||||||||||||||||||||||||
Mortgage loans, net | 3,487 | 3,510 | ||||||||||||||||||||||||||||||||
Policy and certificate loans | 780 | 774 | ||||||||||||||||||||||||||||||||
Other investments | 1,161 | 1,141 | ||||||||||||||||||||||||||||||||
Total | $ | 35,906 | $ | 35,735 | ||||||||||||||||||||||||||||||
The following is a summary of net investment income: | ||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Investment income on fixed maturities | $ | 374 | $ | 401 | ||||||||||||||||||||||||||||||
Net realized gains | 5 | 1 | ||||||||||||||||||||||||||||||||
Affordable housing partnerships | (6 | ) | (7 | ) | ||||||||||||||||||||||||||||||
Other | 24 | 17 | ||||||||||||||||||||||||||||||||
Consolidated investment entities | 74 | 77 | ||||||||||||||||||||||||||||||||
Total net investment income | $ | 471 | $ | 489 | ||||||||||||||||||||||||||||||
Available-for-Sale securities distributed by type were as follows: | ||||||||||||||||||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||||||||||||||||
Description of Securities | Amortized | Gross | Gross | Fair Value | Noncredit | |||||||||||||||||||||||||||||
Cost | Unrealized Gains | Unrealized Losses | OTTI (1) | |||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 15,996 | $ | 1,516 | $ | (48 | ) | $ | 17,464 | $ | 3 | |||||||||||||||||||||||
Residential mortgage backed securities | 6,049 | 151 | (110 | ) | 6,090 | (29 | ) | |||||||||||||||||||||||||||
Commercial mortgage backed securities | 2,649 | 139 | (7 | ) | 2,781 | — | ||||||||||||||||||||||||||||
Asset backed securities | 1,474 | 54 | (6 | ) | 1,522 | — | ||||||||||||||||||||||||||||
State and municipal obligations | 2,182 | 166 | (50 | ) | 2,298 | — | ||||||||||||||||||||||||||||
U.S. government and agencies obligations | 47 | 5 | — | 52 | — | |||||||||||||||||||||||||||||
Foreign government bonds and obligations | 238 | 20 | (6 | ) | 252 | — | ||||||||||||||||||||||||||||
Common stocks | 7 | 12 | — | 19 | 5 | |||||||||||||||||||||||||||||
Total | $ | 28,642 | $ | 2,063 | $ | (227 | ) | $ | 30,478 | $ | (21 | ) | ||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||
Description of Securities | Amortized | Gross | Gross | Fair Value | Noncredit | |||||||||||||||||||||||||||||
Cost | Unrealized Gains | Unrealized Losses | OTTI (1) | |||||||||||||||||||||||||||||||
(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 | ) | ||||||||||||||||||||||
(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 March 31, 2014 and December 31, 2013, investment securities with a fair value of $2.1 billion and $2.3 billion, respectively, were pledged to meet contractual obligations under derivative contracts and repurchase agreements. | ||||||||||||||||||||||||||||||||||
At March 31, 2014 and December 31, 2013, 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 March 31, 2014 and December 31, 2013, the Company’s internal analysts rated $1.3 billion and $1.4 billion, respectively, of securities using criteria similar to those used by NRSROs. | ||||||||||||||||||||||||||||||||||
A summary of fixed maturity securities by rating was as follows: | ||||||||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||
Ratings | Amortized Cost | Fair Value | Percent of Total | Amortized Cost | Fair Value | Percent of Total | ||||||||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||||||||||||||
AAA | $ | 7,446 | $ | 7,664 | 25 | % | $ | 7,562 | $ | 7,746 | 25 | % | ||||||||||||||||||||||
AA | 1,572 | 1,740 | 6 | 1,587 | 1,707 | 6 | ||||||||||||||||||||||||||||
A | 6,385 | 6,838 | 22 | 6,381 | 6,738 | 22 | ||||||||||||||||||||||||||||
BBB | 11,382 | 12,388 | 41 | 11,427 | 12,272 | 41 | ||||||||||||||||||||||||||||
Below investment grade | 1,850 | 1,829 | 6 | 1,875 | 1,829 | 6 | ||||||||||||||||||||||||||||
Total fixed maturities | $ | 28,635 | $ | 30,459 | 100 | % | $ | 28,832 | $ | 30,292 | 100 | % | ||||||||||||||||||||||
At March 31, 2014 and December 31, 2013, approximately 46% and 45%, 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-Mar-14 | ||||||||||||||||||||||||||||||||||
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 | 134 | $ | 1,834 | $ | (35 | ) | 13 | $ | 232 | $ | (13 | ) | 147 | $ | 2,066 | $ | (48 | ) | ||||||||||||||||
Residential mortgage backed securities | 102 | 1,874 | (39 | ) | 127 | 884 | (71 | ) | 229 | 2,758 | (110 | ) | ||||||||||||||||||||||
Commercial mortgage backed securities | 24 | 265 | (5 | ) | 2 | 21 | (2 | ) | 26 | 286 | (7 | ) | ||||||||||||||||||||||
Asset backed securities | 36 | 434 | (4 | ) | 5 | 61 | (2 | ) | 41 | 495 | (6 | ) | ||||||||||||||||||||||
State and municipal obligations | 87 | 250 | (12 | ) | 22 | 133 | (38 | ) | 109 | 383 | (50 | ) | ||||||||||||||||||||||
Foreign government bonds and obligations | 21 | 65 | (6 | ) | 1 | 1 | — | 22 | 66 | (6 | ) | |||||||||||||||||||||||
Total | 404 | $ | 4,722 | $ | (101 | ) | 170 | $ | 1,332 | $ | (126 | ) | 574 | $ | 6,054 | $ | (227 | ) | ||||||||||||||||
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 | ) | ||||||||||||||||
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 Available-for-Sale securities for which a portion of the securities’ total other-than-temporary impairments was recognized in other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Beginning balance | $ | 147 | $ | 176 | ||||||||||||||||||||||||||||||
Credit losses for which an other-than-temporary impairment was previously recognized | — | 2 | ||||||||||||||||||||||||||||||||
Reductions for securities sold during the period (realized) | — | (13 | ) | |||||||||||||||||||||||||||||||
Ending balance | $ | 147 | $ | 165 | ||||||||||||||||||||||||||||||
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 deferred acquisition costs (“DAC”), deferred sales inducement costs (“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 | Deferred | Accumulated | ||||||||||||||||||||||||||||||||
Unrealized | Income Tax | Other Comprehensive | ||||||||||||||||||||||||||||||||
Securities | Income Related to | |||||||||||||||||||||||||||||||||
Gains | Net Unrealized | |||||||||||||||||||||||||||||||||
Securities Gains | ||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Balance at January 1, 2013 | $ | 2,017 | $ | (705 | ) | $ | 1,312 | |||||||||||||||||||||||||||
Net unrealized securities losses arising during the period (1) | (216 | ) | 75 | (141 | ) | |||||||||||||||||||||||||||||
Reclassification of net securities gains included in net income | (1 | ) | — | (1 | ) | |||||||||||||||||||||||||||||
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables | 98 | (34 | ) | 64 | ||||||||||||||||||||||||||||||
Balance at March 31, 2013 | $ | 1,898 | $ | (664 | ) | $ | 1,234 | (2) | ||||||||||||||||||||||||||
Balance at January 1, 2014 | $ | 1,016 | $ | (361 | ) | $ | 655 | |||||||||||||||||||||||||||
Net unrealized securities gains arising during the period (1) | 370 | (131 | ) | 239 | ||||||||||||||||||||||||||||||
Reclassification of net securities gains included in net income | (5 | ) | 2 | (3 | ) | |||||||||||||||||||||||||||||
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables | (140 | ) | 49 | (91 | ) | |||||||||||||||||||||||||||||
Balance at March 31, 2014 | $ | 1,241 | $ | (441 | ) | $ | 800 | (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 $1 million and $11 million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at March 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||||
Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in earnings were as follows: | ||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Gross realized gains | $ | 7 | $ | 4 | ||||||||||||||||||||||||||||||
Gross realized losses | (1 | ) | — | |||||||||||||||||||||||||||||||
Other-than-temporary impairments | (1 | ) | (3 | ) | ||||||||||||||||||||||||||||||
Total | $ | 5 | $ | 1 | ||||||||||||||||||||||||||||||
Other-than-temporary impairments for the three months ended March 31, 2014 primarily related to the Company’s decision to sell a corporate debt security and credit losses on non-agency residential mortgage backed securities. Other-than-temporary impairments for the three months ended March 31, 2013 primarily related to credit losses on non-agency residential mortgage backed securities. | ||||||||||||||||||||||||||||||||||
Available-for-Sale securities by contractual maturity at March 31, 2014 were as follows: | ||||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Due within one year | $ | 1,525 | $ | 1,549 | ||||||||||||||||||||||||||||||
Due after one year through five years | 6,536 | 7,069 | ||||||||||||||||||||||||||||||||
Due after five years through 10 years | 5,678 | 5,998 | ||||||||||||||||||||||||||||||||
Due after 10 years | 4,724 | 5,450 | ||||||||||||||||||||||||||||||||
18,463 | 20,066 | |||||||||||||||||||||||||||||||||
Residential mortgage backed securities | 6,049 | 6,090 | ||||||||||||||||||||||||||||||||
Commercial mortgage backed securities | 2,649 | 2,781 | ||||||||||||||||||||||||||||||||
Asset backed securities | 1,474 | 1,522 | ||||||||||||||||||||||||||||||||
Common stocks | 7 | 19 | ||||||||||||||||||||||||||||||||
Total | $ | 28,642 | $ | 30,478 | ||||||||||||||||||||||||||||||
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 | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
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. Commercial mortgage loans, syndicated loans, consumer loans, policy loans and certificate loans are reflected in investments. Margin loans are recorded in receivables. Policy and certificate loans do not exceed the cash surrender value at origination. 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 monitors collateral supporting 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. | ||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||
The following tables present a rollforward of the allowance for loan losses for the three months ended and the ending balance of the allowance for loan losses by impairment method and type of loan: | ||||||||||||||||
31-Mar-14 | ||||||||||||||||
Commercial | Syndicated Loans | Consumer Loans | Total | |||||||||||||
Mortgage Loans | ||||||||||||||||
(in millions) | ||||||||||||||||
Beginning balance | $ | 26 | $ | 6 | $ | 5 | $ | 37 | ||||||||
Charge-offs | (1 | ) | (2 | ) | — | (3 | ) | |||||||||
Ending balance | $ | 25 | $ | 4 | $ | 5 | $ | 34 | ||||||||
Individually evaluated for impairment | $ | 6 | $ | — | $ | 1 | $ | 7 | ||||||||
Collectively evaluated for impairment | 19 | 4 | 4 | 27 | ||||||||||||
31-Mar-13 | ||||||||||||||||
Commercial | Syndicated Loans | Consumer Loans | Total | |||||||||||||
Mortgage Loans | ||||||||||||||||
(in millions) | ||||||||||||||||
Beginning balance | $ | 29 | $ | 7 | $ | 8 | $ | 44 | ||||||||
Charge-offs | — | — | (1 | ) | (1 | ) | ||||||||||
Ending balance | $ | 29 | $ | 7 | $ | 7 | $ | 43 | ||||||||
Individually evaluated for impairment | $ | 7 | $ | — | $ | 1 | $ | 8 | ||||||||
Collectively evaluated for impairment | 22 | 7 | 6 | 35 | ||||||||||||
The recorded investment in financing receivables by impairment method and type of loan was as follows: | ||||||||||||||||
31-Mar-14 | ||||||||||||||||
Commercial | Syndicated Loans | Consumer Loans | Total | |||||||||||||
Mortgage Loans | ||||||||||||||||
(in millions) | ||||||||||||||||
Individually evaluated for impairment | $ | 32 | $ | 4 | $ | 7 | $ | 43 | ||||||||
Collectively evaluated for impairment | 2,663 | 418 | 833 | 3,914 | ||||||||||||
Total | $ | 2,695 | $ | 422 | $ | 840 | $ | 3,957 | ||||||||
31-Dec-13 | ||||||||||||||||
Commercial | Syndicated Loans | Consumer Loans | Total | |||||||||||||
Mortgage Loans | ||||||||||||||||
(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 | ||||||||
As of March 31, 2014 and December 31, 2013, the Company’s recorded investment in financing receivables individually evaluated for impairment for which there was no related allowance for loan losses was $18 million and $21 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. During the three months ended March 31, 2014 and 2013, the Company purchased $65 million and $22 million, respectively, and sold $4 million and $1 million, respectively, of syndicated loans. | ||||||||||||||||
The Company has not acquired any loans with deteriorated credit quality as of the acquisition date. | ||||||||||||||||
Credit Quality Information | ||||||||||||||||
Nonperforming loans, which are generally loans 90 days or more past due, were $10 million and $22 million as of March 31, 2014 and December 31, 2013, 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 1% and 2%, respectively, of total commercial mortgage loans at March 31, 2014 and December 31, 2013. 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 | |||||||||||||||
March 31, 2014 | December 31, 2013 | March 31, 2014 | December 31, 2013 | |||||||||||||
(in millions) | ||||||||||||||||
East North Central | $ | 244 | $ | 251 | 9 | % | 9 | % | ||||||||
East South Central | 68 | 71 | 3 | 3 | ||||||||||||
Middle Atlantic | 214 | 211 | 8 | 8 | ||||||||||||
Mountain | 255 | 257 | 9 | 10 | ||||||||||||
New England | 146 | 149 | 5 | 5 | ||||||||||||
Pacific | 674 | 661 | 25 | 25 | ||||||||||||
South Atlantic | 723 | 713 | 27 | 26 | ||||||||||||
West North Central | 210 | 207 | 8 | 8 | ||||||||||||
West South Central | 161 | 162 | 6 | 6 | ||||||||||||
2,695 | 2,682 | 100 | % | 100 | % | |||||||||||
Less: allowance for loan losses | 25 | 26 | ||||||||||||||
Total | $ | 2,670 | $ | 2,656 | ||||||||||||
Concentrations of credit risk of commercial mortgage loans by property type were as follows: | ||||||||||||||||
Loans | Percentage | |||||||||||||||
March 31, 2014 | December 31, 2013 | March 31, 2014 | December 31, 2013 | |||||||||||||
(in millions) | ||||||||||||||||
Apartments | $ | 477 | $ | 488 | 18 | % | 18 | % | ||||||||
Hotel | 31 | 33 | 1 | 1 | ||||||||||||
Industrial | 471 | 454 | 17 | 17 | ||||||||||||
Mixed use | 46 | 36 | 2 | 1 | ||||||||||||
Office | 559 | 559 | 21 | 21 | ||||||||||||
Retail | 952 | 951 | 35 | 36 | ||||||||||||
Other | 159 | 161 | 6 | 6 | ||||||||||||
2,695 | 2,682 | 100 | % | 100 | % | |||||||||||
Less: allowance for loan losses | 25 | 26 | ||||||||||||||
Total | $ | 2,670 | $ | 2,656 | ||||||||||||
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 March 31, 2014 and December 31, 2013 were $1 million and $4 million, respectively. | ||||||||||||||||
Consumer Loans | ||||||||||||||||
The Company considers the credit worthiness of borrowers (FICO score), collateral characteristics such as loan-to-value (“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 March 31, 2014 and December 31, 2013, approximately 6% and 5%, respectively, of consumer loans had FICO scores below 640. At both March 31, 2014 and December 31, 2013, approximately 2% 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 37% and 38%, respectively, of the portfolio as of March 31, 2014 and December 31, 2013. 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: | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | |||||||||||||
(in millions, except number of loans) | ||||||||||||||||
Commercial mortgage loans | 2 | $ | 8 | — | $ | — | ||||||||||
Syndicated loans | 1 | 1 | — | — | ||||||||||||
Consumer loans | 2 | — | 5 | — | ||||||||||||
Total | 5 | $ | 9 | 5 | $ | — | ||||||||||
The troubled debt restructurings did not have a material impact to the Company’s allowance for loan losses or income recognized for the three months ended March 31, 2014 and 2013. There are no material commitments to lend additional funds to borrowers whose loans have been restructured. |
Deferred_Acquisition_Costs_and
Deferred Acquisition Costs and Deferred Sales Inducement Costs | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Deferred Acquisition Costs and Deferred Sales Inducement Costs | ' | |||||||
Deferred Acquisition Costs and Deferred Sales Inducement Costs | ' | |||||||
Deferred Acquisition Costs and Deferred Sales Inducement Costs | ||||||||
The balances of and changes in DAC were as follows: | ||||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Balance at January 1 | $ | 2,663 | $ | 2,399 | ||||
Capitalization of acquisition costs | 79 | 78 | ||||||
Amortization | (87 | ) | (75 | ) | ||||
Impact of change in net unrealized securities losses (gains) | (25 | ) | 33 | |||||
Balance at March 31 | $ | 2,630 | $ | 2,435 | ||||
The balances of and changes in DSIC, which is included in other assets, were as follows: | ||||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Balance at January 1 | $ | 409 | $ | 404 | ||||
Capitalization of sales inducement costs | 1 | 2 | ||||||
Amortization | (13 | ) | (12 | ) | ||||
Impact of change in net unrealized securities losses (gains) | (5 | ) | 3 | |||||
Balance at March 31 | $ | 392 | $ | 397 | ||||
Policyholder_Account_Balances_
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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: | ||||||||
31-Mar-14 | 31-Dec-13 | |||||||
(in millions) | ||||||||
Policyholder account balances | ||||||||
Fixed annuities | $ | 13,511 | $ | 13,826 | ||||
Variable annuity fixed sub-accounts | 4,892 | 4,926 | ||||||
Variable universal life (“VUL”)/universal life (“UL”) insurance | 2,798 | 2,790 | ||||||
Indexed universal life (“IUL”) insurance | 363 | 315 | ||||||
Other life insurance | 868 | 878 | ||||||
Total policyholder account balances | 22,432 | 22,735 | ||||||
Future policy benefits | ||||||||
Variable annuity GMWB (1) | (267 | ) | (383 | ) | ||||
Variable annuity GMAB (1) | (69 | ) | (62 | ) | ||||
Other annuity liabilities | 103 | 76 | ||||||
Fixed annuities life contingent liabilities | 1,517 | 1,523 | ||||||
Equity indexed annuities (“EIA”) | 28 | 29 | ||||||
Life, disability income and long term care insurance | 4,845 | 4,739 | ||||||
VUL/UL and other life insurance additional liabilities | 373 | 336 | ||||||
Total future policy benefits | 6,530 | 6,258 | ||||||
Policy claims and other policyholders’ funds | 663 | 627 | ||||||
Total policyholder account balances, future policy benefits and claims | $ | 29,625 | $ | 29,620 | ||||
(1) Includes the value of GMWB and GMAB embedded derivatives which was a net asset at both March 31, 2014 and December 31, 2013 and the amount is reported as a contra liability. | ||||||||
Separate account liabilities consisted of the following: | ||||||||
31-Mar-14 | 31-Dec-13 | |||||||
(in millions) | ||||||||
Variable annuity | $ | 71,072 | $ | 70,687 | ||||
VUL insurance | 6,918 | 6,885 | ||||||
Other insurance | 43 | 44 | ||||||
Threadneedle investment liabilities | 3,839 | 3,607 | ||||||
Total | $ | 81,872 | $ | 81,223 | ||||
Variable_Annuity_and_Insurance
Variable Annuity and Insurance Guarantees | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
Insurance [Abstract] | ' | ||||||||||||||||||||||||||||
Variable Annuity and Insurance Guarantees | ' | ||||||||||||||||||||||||||||
Variable Annuity and Insurance Guarantees | |||||||||||||||||||||||||||||
The majority of the variable annuity contracts offered by the Company contain guaranteed minimum death benefit (“GMDB”) provisions. 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 with GMWB and GMAB provisions. The Company previously offered contracts containing guaranteed minimum income benefit (“GMIB”) provisions. | |||||||||||||||||||||||||||||
Certain UL policies offered by the Company provide secondary guarantee benefits. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. | |||||||||||||||||||||||||||||
The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities: | |||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Variable Annuity Guarantees by Benefit Type (1) | Total Contract Value | Contract Value in Separate Accounts | Net Amount at Risk | Weighted Average Attained Age | Total Contract Value | Contract Value in Separate Accounts | Net Amount at Risk | Weighted Average Attained Age | |||||||||||||||||||||
(in millions, except age) | |||||||||||||||||||||||||||||
GMDB: | |||||||||||||||||||||||||||||
Return of premium | $ | 53,368 | $ | 51,554 | $ | 26 | 64 | $ | 52,616 | $ | 50,790 | $ | 28 | 64 | |||||||||||||||
Five/six-year reset | 10,938 | 8,392 | 36 | 64 | 11,220 | 8,663 | 42 | 64 | |||||||||||||||||||||
One-year ratchet | 7,608 | 7,203 | 36 | 66 | 7,676 | 7,261 | 38 | 65 | |||||||||||||||||||||
Five-year ratchet | 1,790 | 1,734 | 1 | 62 | 1,781 | 1,725 | 1 | 62 | |||||||||||||||||||||
Other | 1,002 | 983 | 37 | 69 | 1,015 | 996 | 36 | 69 | |||||||||||||||||||||
Total — GMDB | $ | 74,706 | $ | 69,866 | $ | 136 | 64 | $ | 74,308 | $ | 69,435 | $ | 145 | 64 | |||||||||||||||
GGU death benefit | $ | 1,051 | $ | 999 | $ | 121 | 66 | $ | 1,052 | $ | 998 | $ | 121 | 64 | |||||||||||||||
GMIB | $ | 396 | $ | 372 | $ | 8 | 66 | $ | 413 | $ | 389 | $ | 8 | 66 | |||||||||||||||
GMWB: | |||||||||||||||||||||||||||||
GMWB | $ | 3,864 | $ | 3,850 | $ | 1 | 67 | $ | 3,936 | $ | 3,921 | $ | 1 | 67 | |||||||||||||||
GMWB for life | 34,821 | 34,695 | 92 | 65 | 34,069 | 33,930 | 77 | 64 | |||||||||||||||||||||
Total — GMWB | $ | 38,685 | $ | 38,545 | $ | 93 | 65 | $ | 38,005 | $ | 37,851 | $ | 78 | 64 | |||||||||||||||
GMAB | $ | 4,201 | $ | 4,190 | $ | 1 | 58 | $ | 4,194 | $ | 4,181 | $ | 2 | 58 | |||||||||||||||
(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 following table provides information related to insurance guarantees for which the Company has established additional liabilities: | |||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Net Amount at Risk | Weighted Average Attained Age | Net Amount at Risk | Weighted Average Attained Age | ||||||||||||||||||||||||||
(in millions, except age) | |||||||||||||||||||||||||||||
UL secondary guarantees | $ | 5,749 | 62 | $ | 5,674 | 62 | |||||||||||||||||||||||
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 additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows: | |||||||||||||||||||||||||||||
GMDB & GGU | GMIB | GMWB (1) | GMAB (1) | UL | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance at January 1, 2013 | $ | 4 | $ | 9 | $ | 799 | $ | 103 | $ | 155 | |||||||||||||||||||
Incurred claims | 1 | — | (480 | ) | (80 | ) | 17 | ||||||||||||||||||||||
Paid claims | (1 | ) | — | — | — | (3 | ) | ||||||||||||||||||||||
Balance at March 31, 2013 | $ | 4 | $ | 9 | $ | 319 | $ | 23 | $ | 169 | |||||||||||||||||||
Balance at January 1, 2014 | $ | 4 | $ | 6 | $ | (383 | ) | $ | (62 | ) | $ | 206 | |||||||||||||||||
Incurred claims | 1 | — | 116 | (7 | ) | 11 | |||||||||||||||||||||||
Paid claims | (1 | ) | — | — | — | 4 | |||||||||||||||||||||||
Balance at March 31, 2014 | $ | 4 | $ | 6 | $ | (267 | ) | $ | (69 | ) | $ | 221 | |||||||||||||||||
(1) The incurred claims for GMWB and GMAB represent the total change in the liabilities (contra 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: | |||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Mutual funds: | |||||||||||||||||||||||||||||
Equity | $ | 39,742 | $ | 39,195 | |||||||||||||||||||||||||
Bond | 25,965 | 26,519 | |||||||||||||||||||||||||||
Other | 4,168 | 3,764 | |||||||||||||||||||||||||||
Total mutual funds | $ | 69,875 | $ | 69,478 | |||||||||||||||||||||||||
Debt
Debt | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
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 | |||||||||||||
31-Mar-14 | 31-Dec-13 | 31-Mar-14 | 31-Dec-13 | |||||||||||
(in millions) | ||||||||||||||
Long-term debt: | ||||||||||||||
Senior notes due 2015 | $ | 364 | (1) | $ | 366 | (1) | 5.7 | % | 5.7 | % | ||||
Senior notes due 2019 | 327 | (1) | 327 | (1) | 7.3 | 7.3 | ||||||||
Senior notes due 2020 | 784 | (1) | 783 | (1) | 5.3 | 5.3 | ||||||||
Senior notes due 2023 | 750 | 750 | 4 | 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 | 2,719 | 2,720 | ||||||||||||
Short-term borrowings: | ||||||||||||||
Federal Home Loan Bank (“FHLB”) advances | 250 | 450 | 0.3 | 0.3 | ||||||||||
Repurchase agreements | 50 | 50 | 0.3 | 0.3 | ||||||||||
Total short-term borrowings | 300 | 500 | ||||||||||||
Total | $ | 3,019 | $ | 3,220 | ||||||||||
(1) Amounts include adjustments for fair value hedges on the Company’s long-term debt. See Note 12 for information on the Company’s fair value hedges. | ||||||||||||||
The amounts included in the table above are net of any unamortized discount and premium associated with issuing these notes. | ||||||||||||||
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 March 31, 2014. | ||||||||||||||
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 March 31, 2014 and December 31, 2013. | ||||||||||||||
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 $51 million and $52 million at March 31, 2014 and December 31, 2013, 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. 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 $506 million and $574 million at March 31, 2014 and December 31, 2013, respectively. 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. |
Fair_Values_of_Assets_and_Liab
Fair Values of Assets and Liabilities | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
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-Mar-14 | ||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Cash equivalents | $ | 40 | $ | 1,941 | $ | — | $ | 1,981 | ||||||||||||||||||||||||||||||||
Available-for-Sale securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | — | 15,898 | 1,566 | 17,464 | ||||||||||||||||||||||||||||||||||||
Residential mortgage backed securities | — | 6,003 | 87 | 6,090 | ||||||||||||||||||||||||||||||||||||
Commercial mortgage backed securities | — | 2,706 | 75 | 2,781 | ||||||||||||||||||||||||||||||||||||
Asset backed securities | — | 1,316 | 206 | 1,522 | ||||||||||||||||||||||||||||||||||||
State and municipal obligations | — | 2,298 | — | 2,298 | ||||||||||||||||||||||||||||||||||||
U.S. government and agencies obligations | 17 | 35 | — | 52 | ||||||||||||||||||||||||||||||||||||
Foreign government bonds and obligations | — | 252 | — | 252 | ||||||||||||||||||||||||||||||||||||
Common stocks | 5 | 8 | 6 | 19 | ||||||||||||||||||||||||||||||||||||
Total Available-for-Sale securities | 22 | 28,516 | 1,940 | 30,478 | ||||||||||||||||||||||||||||||||||||
Trading securities | 2 | 36 | 2 | 40 | ||||||||||||||||||||||||||||||||||||
Separate account assets | — | 81,872 | — | 81,872 | ||||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||
Interest rate derivative contracts | — | 1,545 | — | 1,545 | ||||||||||||||||||||||||||||||||||||
Equity derivative contracts | 306 | 1,330 | — | 1,636 | ||||||||||||||||||||||||||||||||||||
Credit derivative contracts | — | 1 | — | 1 | ||||||||||||||||||||||||||||||||||||
Foreign currency derivative contracts | 3 | 3 | — | 6 | ||||||||||||||||||||||||||||||||||||
Total other assets | 309 | 2,879 | — | 3,188 | ||||||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 373 | $ | 115,244 | $ | 1,942 | $ | 117,559 | ||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Policyholder account balances, future policy benefits and claims: | ||||||||||||||||||||||||||||||||||||||||
EIA embedded derivatives | $ | — | $ | 5 | $ | — | $ | 5 | ||||||||||||||||||||||||||||||||
IUL embedded derivatives | — | — | 154 | 154 | ||||||||||||||||||||||||||||||||||||
GMWB and GMAB embedded derivatives | — | — | (471 | ) | (471 | ) | (2) | |||||||||||||||||||||||||||||||||
Total policyholder account balances, future policy benefits and claims | — | 5 | (317 | ) | (312 | ) | (1) | |||||||||||||||||||||||||||||||||
Customer deposits | — | 6 | — | 6 | ||||||||||||||||||||||||||||||||||||
Other liabilities: | ||||||||||||||||||||||||||||||||||||||||
Interest rate derivative contracts | — | 1,442 | — | 1,442 | ||||||||||||||||||||||||||||||||||||
Equity derivative contracts | 552 | 2,399 | — | 2,951 | ||||||||||||||||||||||||||||||||||||
Foreign currency derivative contracts | 2 | — | — | 2 | ||||||||||||||||||||||||||||||||||||
Other | — | 17 | — | 17 | ||||||||||||||||||||||||||||||||||||
Total other liabilities | 554 | 3,858 | — | 4,412 | ||||||||||||||||||||||||||||||||||||
Total liabilities at fair value | $ | 554 | $ | 3,869 | $ | (317 | ) | $ | 4,106 | |||||||||||||||||||||||||||||||
(1) The Company’s adjustment for nonperformance risk resulted in a $169 million cumulative increase to the embedded derivatives. | ||||||||||||||||||||||||||||||||||||||||
(2) The fair value of the GMWB and GMAB embedded derivatives was a net asset at March 31, 2014 and the amount is reported as a contra liability. | ||||||||||||||||||||||||||||||||||||||||
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 increase 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. | ||||||||||||||||||||||||||||||||||||||||
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, | $ | 1,640 | $ | 187 | $ | 30 | $ | 260 | $ | 6 | $ | 2,123 | $ | 2 | $ | (125 | ) | $ | 575 | $ | 450 | |||||||||||||||||||
January 1, 2014 | ||||||||||||||||||||||||||||||||||||||||
Total gains (losses) included in: | ||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | (6 | ) | (1) | (52 | ) | (2) | (58 | ) | |||||||||||||||||||||||||
Other comprehensive income | 4 | — | — | — | — | 4 | — | — | — | — | ||||||||||||||||||||||||||||||
Purchases | 76 | 82 | 60 | 21 | — | 239 | — | — | — | — | ||||||||||||||||||||||||||||||
Sales | (11 | ) | — | — | — | — | (11 | ) | — | — | — | — | ||||||||||||||||||||||||||||
Issues | — | — | — | — | — | — | — | (24 | ) | (59 | ) | (83 | ) | |||||||||||||||||||||||||||
Settlements | (143 | ) | (3 | ) | — | (6 | ) | — | (152 | ) | — | 1 | 7 | 8 | ||||||||||||||||||||||||||
Transfers out of Level 3 | — | (179 | ) | (15 | ) | (69 | ) | — | (263 | ) | — | — | — | — | ||||||||||||||||||||||||||
Balance, | $ | 1,566 | $ | 87 | $ | 75 | $ | 206 | $ | 6 | $ | 1,940 | $ | 2 | $ | (154 | ) | $ | 471 | $ | 317 | |||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Changes in unrealized losses relating to assets and liabilities held at March 31, 2014 included in: | ||||||||||||||||||||||||||||||||||||||||
Net investment income | $ | (1 | ) | $ | — | $ | — | $ | — | $ | — | $ | (1 | ) | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Interest credited to fixed accounts | — | — | — | — | — | — | — | (6 | ) | — | (6 | ) | ||||||||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | — | — | — | — | — | — | — | — | (52 | ) | (52 | ) | ||||||||||||||||||||||||||||
(1) Included in interest credited to fixed accounts in the Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||||||||||
(2) 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 | Total | ||||||||||||||||||||||||||||||||
GMAB Embedded Derivatives | ||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2013 | $ | 1,764 | $ | 284 | $ | 206 | $ | 178 | $ | 6 | $ | 2,438 | $ | (45 | ) | $ | (833 | ) | $ | (878 | ) | |||||||||||||||||||
Total gains (losses) included in: | ||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | (4 | ) | (1) | 618 | (2) | 614 | ||||||||||||||||||||||||||||
Other comprehensive income | — | — | (2 | ) | 5 | — | 3 | — | — | — | ||||||||||||||||||||||||||||||
Purchases | 54 | — | — | 139 | — | 193 | — | — | — | |||||||||||||||||||||||||||||||
Issues | — | — | — | — | — | — | (12 | ) | (50 | ) | (62 | ) | ||||||||||||||||||||||||||||
Settlements | (54 | ) | — | — | (1 | ) | — | (55 | ) | — | (1 | ) | (1 | ) | ||||||||||||||||||||||||||
Transfers out of Level 3 | — | (276 | ) | — | — | (1 | ) | (277 | ) | — | — | — | ||||||||||||||||||||||||||||
Balance, March 31, 2013 | $ | 1,764 | $ | 8 | $ | 204 | $ | 321 | $ | 5 | $ | 2,302 | $ | (61 | ) | $ | (266 | ) | $ | (327 | ) | |||||||||||||||||||
Changes in unrealized gains relating to assets and liabilities held at March 31, 2013 included in: | ||||||||||||||||||||||||||||||||||||||||
Interest credited to fixed accounts | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (4 | ) | $ | — | $ | (4 | ) | ||||||||||||||||||||
Benefits, claims, losses and settlement expenses | — | — | — | — | — | — | — | 609 | 609 | |||||||||||||||||||||||||||||||
(1) Included in interest credited to fixed accounts 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 $15 million and $(62) million, net of DAC, DSIC unearned revenue amortization and the reinsurance accrual, for the three months ended March 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||||||||||
Securities transferred from Level 3 primarily represent securities with fair values that are now obtained from a third party pricing service with observable inputs. Securities transferred to Level 3 represent securities with fair values that are now based on a single non-binding broker quote. The Company recognizes transfers between levels of the fair value hierarchy as of the beginning of the quarter in which each transfer occurred. For assets and liabilities held at the end of the reporting periods that are measured at fair value on a recurring basis, there were no transfers between Level 1 and Level 2. | ||||||||||||||||||||||||||||||||||||||||
The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities: | ||||||||||||||||||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range | Weighted Average | ||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||
Corporate debt securities (private placements) | $ | 1,520 | Discounted cash flow | Yield/spread to U.S. Treasuries | 0.8 | % | – | 4.80% | 1.40% | |||||||||||||||||||||||||||||||
IUL embedded derivatives | $ | 154 | Discounted cash flow | Nonperformance risk (3) | 70 | bps | ||||||||||||||||||||||||||||||||||
GMWB and GMAB embedded derivatives | $ | (471 | ) | Discounted cash flow | Utilization of guaranteed withdrawals (1) | 0 | % | – | 51.10% | |||||||||||||||||||||||||||||||
Surrender rate | 0.1 | % | – | 57.90% | ||||||||||||||||||||||||||||||||||||
Market volatility (2) | 4.7 | % | – | 17.80% | ||||||||||||||||||||||||||||||||||||
Nonperformance risk (3) | 70 | bps | ||||||||||||||||||||||||||||||||||||||
Elective contractholder strategy allocations (4) | 0 | % | – | 50.00% | ||||||||||||||||||||||||||||||||||||
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% | ||||||||||||||||||||||||||||||||||||
(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 March 31, 2014 and December 31, 2013. See Note 11 and Note 12 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 is 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 March 31, 2014 and December 31, 2013. See Note 11 and Note 12 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-Mar-14 | ||||||||||||||||||||||||||||||||||||||||
Carrying Value | Fair Value | |||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||||||||||||||||
Mortgage loans, net | $ | 3,487 | $ | — | $ | — | $ | 3,498 | $ | 3,498 | ||||||||||||||||||||||||||||||
Policy and certificate loans | 780 | — | 1 | 769 | 770 | |||||||||||||||||||||||||||||||||||
Receivables | 1,258 | 158 | 1,092 | 7 | 1,257 | |||||||||||||||||||||||||||||||||||
Restricted and segregated cash | 2,391 | 2,391 | — | — | 2,391 | |||||||||||||||||||||||||||||||||||
Other investments and assets | 478 | — | 407 | 72 | 479 | |||||||||||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||||||||||
Policyholder account balances, future policy benefits and claims | $ | 13,791 | $ | — | $ | — | $ | 14,459 | $ | 14,459 | ||||||||||||||||||||||||||||||
Investment certificate reserves | 4,066 | — | — | 4,061 | 4,061 | |||||||||||||||||||||||||||||||||||
Brokerage customer deposits | 3,148 | 3,148 | — | — | 3,148 | |||||||||||||||||||||||||||||||||||
Separate account liabilities | 4,232 | — | 4,232 | — | 4,232 | |||||||||||||||||||||||||||||||||||
Debt and other liabilities | 3,271 | 209 | 3,199 | 117 | 3,525 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||
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 price 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 using a market approach with observable inputs 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 margin 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 | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
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-Mar-14 | ||||||||||||||||||||||||||||
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 | $ | 3,100 | $ | — | $ | 3,100 | $ | (2,941 | ) | $ | (87 | ) | $ | (43 | ) | $ | 29 | |||||||||||
OTC cleared | 41 | — | 41 | (29 | ) | (12 | ) | — | — | |||||||||||||||||||
Exchange-traded | 47 | — | 47 | — | — | — | 47 | |||||||||||||||||||||
Total derivatives | 3,188 | — | 3,188 | (2,970 | ) | (99 | ) | (43 | ) | 76 | ||||||||||||||||||
Securities borrowed | 158 | — | 158 | (56 | ) | — | (100 | ) | 2 | |||||||||||||||||||
Total | $ | 3,346 | $ | — | $ | 3,346 | $ | (3,026 | ) | $ | (99 | ) | $ | (143 | ) | $ | 78 | |||||||||||
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 | |||||||||||
(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-Mar-14 | ||||||||||||||||||||||||||||
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 | $ | 4,365 | $ | — | $ | 4,365 | $ | (2,941 | ) | $ | — | $ | (1,406 | ) | $ | 18 | ||||||||||||
OTC cleared | 30 | — | 30 | (29 | ) | (1 | ) | — | — | |||||||||||||||||||
Total derivatives | 4,395 | — | 4,395 | (2,970 | ) | (1 | ) | (1,406 | ) | 18 | ||||||||||||||||||
Securities loaned | 209 | — | 209 | (56 | ) | — | (147 | ) | 6 | |||||||||||||||||||
Repurchase agreements | 50 | — | 50 | — | — | (50 | ) | — | ||||||||||||||||||||
Total | $ | 4,654 | $ | — | $ | 4,654 | $ | (3,026 | ) | $ | (1 | ) | $ | (1,603 | ) | $ | 24 | |||||||||||
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 | |||||||||||
(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 12 for additional disclosures related to the Company’s derivative instruments, Note 9 for additional disclosures related to the Company’s repurchase agreements and Note 3 for information related to derivatives held by consolidated investment entities. |
Derivatives_and_Hedging_Activi
Derivatives and Hedging Activities | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
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 11 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: | |||||||||||||||||||||
Derivatives designated as | Assets | Liabilities | |||||||||||||||||||
hedging instruments | Balance Sheet | 31-Mar-14 | 31-Dec-13 | Balance Sheet | 31-Mar-14 | 31-Dec-13 | |||||||||||||||
Location | Location | ||||||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||
Fair value hedges | |||||||||||||||||||||
Fixed rate debt | Other assets | $ | 83 | $ | 82 | Other liabilities | $ | — | $ | — | |||||||||||
Total qualifying hedges | 83 | 82 | — | — | |||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||
GMWB and GMAB | |||||||||||||||||||||
Interest rate contracts | Other assets | 1,452 | 1,484 | Other liabilities | 1,429 | 1,672 | |||||||||||||||
Equity contracts | Other assets | 1,553 | 1,741 | Other liabilities | 2,881 | 3,028 | |||||||||||||||
Credit contracts | Other assets | 1 | 3 | Other liabilities | — | — | |||||||||||||||
Foreign currency contracts | Other assets | 3 | 2 | Other liabilities | — | — | |||||||||||||||
Embedded derivatives (1) | N/A | — | — | Policyholder account balances, future policy benefits and claims (2) | (471 | ) | (575 | ) | |||||||||||||
Total GMWB and GMAB | 3,009 | 3,230 | 3,839 | 4,125 | |||||||||||||||||
Other derivatives: | |||||||||||||||||||||
Interest rate | |||||||||||||||||||||
Macro hedge program | Other assets | 10 | 4 | Other liabilities | 13 | 21 | |||||||||||||||
Equity | |||||||||||||||||||||
Macro hedge program | Other assets | — | — | Other liabilities | 12 | 8 | |||||||||||||||
EIA embedded derivatives | N/A | — | — | Policyholder account balances, future policy benefits and claims | 5 | 5 | |||||||||||||||
IUL | Other assets | 28 | 27 | Other liabilities | 9 | 13 | |||||||||||||||
IUL embedded derivatives | N/A | — | — | Policyholder account balances, future policy benefits and claims | 154 | 125 | |||||||||||||||
Stock market certificates | Other assets | 55 | 73 | Other liabilities | 49 | 66 | |||||||||||||||
Stock market certificates embedded derivatives | N/A | — | — | Customer deposits | 6 | 7 | |||||||||||||||
Foreign exchange | |||||||||||||||||||||
Foreign currency | Other assets | 3 | 2 | Other liabilities | 2 | — | |||||||||||||||
Total other | 96 | 106 | 250 | 245 | |||||||||||||||||
Total non-designated hedges | 3,105 | 3,336 | 4,089 | 4,370 | |||||||||||||||||
Total derivatives | $ | 3,188 | $ | 3,418 | $ | 4,089 | $ | 4,370 | |||||||||||||
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 March 31, 2014 and December 31, 2013 and the amount is reported as a contra liability. | |||||||||||||||||||||
See Note 10 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 hedging instruments | Location of Gain (Loss) on Derivatives Recognized in Income | Amount of Gain (Loss) on | |||||||||||||||||||
Derivatives Recognized in Income | |||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||
GMWB and GMAB | |||||||||||||||||||||
Interest rate contracts | Benefits, claims, losses and settlement expenses | $ | 264 | $ | (132 | ) | |||||||||||||||
Equity contracts | Benefits, claims, losses and settlement expenses | (204 | ) | (492 | ) | ||||||||||||||||
Credit contracts | Benefits, claims, losses and settlement expenses | (10 | ) | — | |||||||||||||||||
Foreign currency contracts | Benefits, claims, losses and settlement expenses | (1 | ) | 5 | |||||||||||||||||
Embedded derivatives (1) | Benefits, claims, losses and settlement expenses | (104 | ) | 567 | |||||||||||||||||
Total GMWB and GMAB | (55 | ) | (52 | ) | |||||||||||||||||
Other derivatives: | |||||||||||||||||||||
Interest rate | |||||||||||||||||||||
Macro hedge program | Benefits, claims, losses and settlement expenses | 17 | — | ||||||||||||||||||
Tax hedge | Net investment income | 3 | — | ||||||||||||||||||
Seed money | Net investment income | (1 | ) | — | |||||||||||||||||
Equity | |||||||||||||||||||||
Macro hedge program | Benefits, claims, losses and settlement expenses | (4 | ) | — | |||||||||||||||||
IUL | Interest credited to fixed accounts | 5 | 4 | ||||||||||||||||||
IUL embedded derivatives | Interest credited to fixed accounts | 6 | 3 | ||||||||||||||||||
EIA | Interest credited to fixed accounts | — | 1 | ||||||||||||||||||
EIA embedded derivatives | Interest credited to fixed accounts | — | (1 | ) | |||||||||||||||||
Stock market certificates | Banking and deposit interest expense | 1 | 3 | ||||||||||||||||||
Stock market certificates embedded derivatives | Banking and deposit interest expense | (1 | ) | (3 | ) | ||||||||||||||||
Seed money | Net investment income | (1 | ) | (6 | ) | ||||||||||||||||
Deferred compensation | Distribution expenses | 1 | 1 | ||||||||||||||||||
Commodity | |||||||||||||||||||||
Seed money | Net investment income | (1 | ) | — | |||||||||||||||||
Total other | 25 | 2 | |||||||||||||||||||
Total derivatives | $ | (30 | ) | $ | (50 | ) | |||||||||||||||
(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 March 31, 2014 and December 31, 2013, the gross notional amount of derivative contracts for the Company’s GMWB and GMAB provisions was $141.5 billion and $144.5 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 (1) | $ | 307 | $ | 78 | |||||||||||||||||
2015 | 360 | 68 | |||||||||||||||||||
2016 | 317 | 52 | |||||||||||||||||||
2017 | 247 | 47 | |||||||||||||||||||
2018 | 205 | 57 | |||||||||||||||||||
2019-2027 | 608 | 83 | |||||||||||||||||||
Total | $ | 2,044 | $ | 385 | |||||||||||||||||
(1) 2014 amounts represent the amounts payable and receivable for the period from April 1, 2014 to December 31, 2014. | |||||||||||||||||||||
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 both March 31, 2014 and 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 $1.6 billion and $1.5 billion at March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||
The Company enters into futures, commodity swaps, and foreign currency forward contracts to manage its exposure to price risk arising from seed money investments in proprietary investment products. The gross notional amount of these contracts was $79 million and $111 million at March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||
The Company enters into foreign currency forward contracts to economically hedge its exposure to certain transactions denominated in non-functional currencies. The gross notional amount of these contracts was $106 million and $30 million at March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||
The Company enters into futures contracts to economically hedge its exposure related to deferred compensation plans. The gross notional amount of these contracts was $218 million and $224 million at March 31, 2014 and December 31, 2013, 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. | |||||||||||||||||||||
For the three months ended March 31, 2014 and 2013, amounts recognized in earnings related to cash flow hedges due to ineffectiveness were not material. The estimated net amount of existing pretax losses as of March 31, 2014 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 table presents 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: | |||||||||||||||||||||
Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | ||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Interest and debt expense | $ | 1 | $ | 1 | |||||||||||||||||
Net investment income | (1 | ) | (1 | ) | |||||||||||||||||
Total | $ | — | $ | — | |||||||||||||||||
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 Recorded into Income | Amount of Gain Recognized in Income on Derivatives | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Fixed rate debt | Interest and debt expense | $ | 8 | $ | 10 | ||||||||||||||||
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 11 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 March 31, 2014 and December 31, 2013, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $887 million and $1.0 billion, respectively. The aggregate fair value of assets posted as collateral for such instruments as of March 31, 2014 and December 31, 2013 was $876 million and $959 million, respectively. If the credit contingent provisions of derivative contracts in a net liability position at March 31, 2014 and December 31, 2013 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 $11 million and $56 million, respectively. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||
Shareholders' Equity | ' | ||||||||||
Shareholders’ Equity | |||||||||||
The following table provides information related to amounts reclassified from accumulated other comprehensive income (“AOCI”): | |||||||||||
AOCI Reclassification | Location of Loss (Gain) Recognized in Income | Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||||
(in millions) | |||||||||||
Net unrealized gains on Available-for-Sale securities | Net investment income | $ | (5 | ) | $ | (1 | ) | ||||
Tax expense | Income tax provision | 2 | — | ||||||||
Net of tax | $ | (3 | ) | $ | (1 | ) | |||||
Losses (gains) on cash flow hedges: | |||||||||||
Interest rate contracts | Interest and debt expense | $ | (1 | ) | $ | (1 | ) | ||||
Swaptions | Net investment income | 1 | 1 | ||||||||
Total before tax | — | — | |||||||||
Tax benefit | Income tax provision | — | — | ||||||||
Net of tax | $ | — | $ | — | |||||||
See Note 4 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 12 for additional information regarding the Company’s cash flow hedges. | |||||||||||
In October 2012, the Company’s Board of Directors authorized an expenditure of up to $2.0 billion for the repurchase of shares of our common stock through 2014. As of March 31, 2014, the Company had $295 million remaining under its share repurchase authorization. In April 2014, the Company’s Board of Directors authorized an expenditure of up to an additional $2.5 billion for the repurchase of shares of our common stock through April 28, 2016. During the three months ended March 31, 2014 and 2013, the Company repurchased a total of 3.2 million shares and 5.2 million shares, respectively, of its common stock for an aggregate cost of $354 million and $360 million, respectively. | |||||||||||
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 three months ended March 31, 2014 and 2013, the Company reacquired 0.8 million shares and 0.4 million shares, respectively, of its common stock through the surrender of shares upon vesting and paid in the aggregate $88 million and $24 million, respectively, related to the holders’ income tax obligations on the vesting date. 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 three months ended March 31, 2014 and 2013, the Company reacquired 0.7 million shares and 1.3 million shares of its common stock through the net settlement of options for an aggregate value of $74 million and $87 million, respectively. | |||||||||||
During the three months ended March 31, 2014 and 2013, the Company reissued 1.6 million and 1.9 million treasury shares, respectively, for restricted stock award grants, performance share units and issuance of shares vested under the Ameriprise Financial Franchise Advisor Deferred Compensation Plan. | |||||||||||
In April 2014, the Company’s shareholders approved an increase of 16.5 million shares to the total number of shares available for all awards under the Amended and Restated Ameriprise Financial 2005 Incentive Compensation Plan (“2005 ICP”). This increases the total shares available to be issued under the 2005 ICP to 54.4 million shares. No more than 4.5 million shares may be issued after April 30, 2014 for full value awards, which are awards other than stock options and stock appreciation rights. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The Company’s effective tax rate on income from continuing operations was 20.7% and 25.0% for the three months ended March 31, 2014 and 2013, respectively. The Company’s effective tax rates are lower than the statutory rate as a result of tax preferred items including the dividends received deduction and low income housing tax credits, as well as a $17 million benefit related to the completion of an Internal Revenue Service (“IRS”) audit. The decrease in the effective tax rate for the three months ended March 31, 2014 compared to the three months ended March 31, 2013 is primarily because of the audit benefit. | |
Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $29 million which will expire beginning December 31, 2014. | |
The Company is required to establish a valuation allowance for any portion of the deferred tax assets that management believes will not be realized. Included in deferred tax assets is a significant deferred tax asset relating to capital losses that have been recognized for financial statement purposes but not yet for tax return purposes. Under current U.S. federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes. 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. Based on analysis of the Company’s tax position, management believes it is more likely than not that the Company will not realize certain state deferred tax assets and state net operating losses and therefore a valuation allowance has been established. The valuation allowance was $19 million at both March 31, 2014 and December 31, 2013. | |
As of March 31, 2014 and December 31, 2013, the Company had $195 million and $209 million, respectively, of gross unrecognized tax benefits. If recognized, approximately $45 million and $62 million, net of federal tax benefits, of unrecognized tax benefits would affect the effective tax rate as of March 31, 2014 and December 31, 2013, respectively. | |
It is reasonably possible that the total amounts of unrecognized tax benefits will change in the next 12 months. Based on the current audit position of the Company, it is estimated that the total amount of gross unrecognized tax benefits may decrease by $140 million to $150 million in the next 12 months. | |
The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized a net decrease of $1 million and a net increase of $1 million in interest and penalties for the three months ended March 31, 2014 and 2013, respectively. At both March 31, 2014 and December 31, 2013, the Company had a payable of $42 million, 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 completed the audits of the Company’s 2008 and 2009 tax returns in the first quarter of 2014. The IRS is in the process of completing the audits of the Company’s income tax returns for 2010 and 2011 and the Company expects these audits 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. |
Guarantees_and_Contingencies
Guarantees and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Guarantees and Contingencies | ' |
Guarantees and Contingencies | |
Guarantees | |
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. | |
The Company has a liability for estimated guaranty fund assessments and a related premium tax asset, primarily associated with ELNY. At March 31, 2014 and December 31, 2013, the estimated liability was $13 million and $14 million, respectively. At both March 31, 2014 and December 31, 2013, the related premium tax asset was $11 million. Subsequent to the August 2013 closing described above, the Company has received and 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, investment personnel’s potential access and use of material non-public information, 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. On July 3, 2013, the Company moved for summary judgment on statute of limitations grounds. On March 20, 2014, the Court filed its decision, granting in part and denying in part the motion. A hearing on class certification was held on December 10, 2013, and the parties are awaiting a decision. The parties are engaged in discovery. 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 expert damages analyses, 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. |
Earnings_per_Share_Attributabl
Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in millions, except per share amounts) | ||||||||
Numerator: | ||||||||
Income from continuing operations | $ | 516 | $ | 366 | ||||
Less: Net income attributable to noncontrolling interests | 115 | 30 | ||||||
Income from continuing operations attributable to Ameriprise Financial | 401 | 336 | ||||||
Loss from discontinued operations, net of tax | (1 | ) | (1 | ) | ||||
Net income attributable to Ameriprise Financial | $ | 400 | $ | 335 | ||||
Denominator: | ||||||||
Basic: Weighted-average common shares outstanding | 195.5 | 208.4 | ||||||
Effect of potentially dilutive nonqualified stock options and other share-based awards | 3.6 | 3.9 | ||||||
Diluted: Weighted-average common shares outstanding | 199.1 | 212.3 | ||||||
Earnings per share attributable to Ameriprise Financial, Inc. common shareholders: | ||||||||
Basic: | ||||||||
Income from continuing operations | $ | 2.05 | $ | 1.61 | ||||
Loss from discontinued operations | — | — | ||||||
Net income | $ | 2.05 | $ | 1.61 | ||||
Diluted: | ||||||||
Income from continuing operations | $ | 2.01 | $ | 1.58 | ||||
Loss from discontinued operations | — | — | ||||||
Net income | $ | 2.01 | $ | 1.58 | ||||
For the three months ended March 31, 2014 and 2013, the dilutive effect of nonqualified stock options and other share based-awards excludes 1.5 million and 1.6 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. |
Segment_Information
Segment Information | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Segment Information | ' | |||||||
Segment Information | ||||||||
The Company’s segments are Advice & Wealth Management, Asset Management, Annuities, Protection and Corporate & Other. | ||||||||
In the first quarter of 2014, the Company made the following changes to its previously reported segment data: | ||||||||
• | Ameriprise interest and debt expense was allocated to all segments to more accurately reflect management’s assessment of capital allocation. | |||||||
• | Interest accretion income from the intercompany transfer of former bank assets was eliminated for segment reporting resulting in this accretion no longer being allocated to the Annuities and Protection segments. The corresponding offset is no longer reported in the Corporate & Other segment. | |||||||
• | Certain fixed wholesaling costs were reclassified from distribution expenses to general and administrative expense to improve consistency in our presentation of wholesaling distribution expense across all segments. | |||||||
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), 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 liability values caused by changes in financial market conditions, net of changes in associated economic hedge values. 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 liability values of discounting projected benefits to reflect a current estimate of the Company’s life insurance subsidiary’s nonperformance spread. Restructuring charges 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: | ||||||||
31-Mar-14 | 31-Dec-13 | |||||||
(in millions) | ||||||||
Advice & Wealth Management | $ | 10,012 | $ | 9,571 | ||||
Asset Management | 7,854 | 7,223 | ||||||
Annuities | 98,079 | 98,354 | ||||||
Protection | 19,858 | 19,605 | ||||||
Corporate & Other | 10,161 | 9,823 | ||||||
Total assets | $ | 145,964 | $ | 144,576 | ||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Operating net revenues: | ||||||||
Advice & Wealth Management | $ | 1,149 | $ | 1,018 | ||||
Asset Management | 807 | 746 | ||||||
Annuities | 636 | 624 | ||||||
Protection | 555 | 537 | ||||||
Corporate & Other | 6 | 4 | ||||||
Eliminations(1) | (341 | ) | (321 | ) | ||||
Total segment operating revenues | 2,812 | 2,608 | ||||||
Net realized gains | 5 | 1 | ||||||
Revenues attributable to CIEs | 177 | 82 | ||||||
Market impact on IUL benefits, net | 2 | — | ||||||
Total net revenues per consolidated statements of operations | $ | 2,996 | $ | 2,691 | ||||
(1) Represents the elimination of intersegment revenues recognized for the three months ended March 31, 2014 and 2013 in each segment as follows: Advice & Wealth Management ($240 and $228, respectively); Asset Management ($11 and $9, respectively); Annuities ($80 and $73, respectively); Protection ($10 and $10, respectively); and Corporate & Other (nil and $1, respectively). | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Operating earnings: | ||||||||
Advice & Wealth Management | $ | 181 | $ | 130 | ||||
Asset Management | 183 | 138 | ||||||
Annuities | 176 | 142 | ||||||
Protection | 59 | 103 | ||||||
Corporate & Other | (55 | ) | (53 | ) | ||||
Total segment operating earnings | 544 | 460 | ||||||
Net realized gains | 5 | 1 | ||||||
Net income attributable to noncontrolling interests | 115 | 30 | ||||||
Market impact on variable annuity guaranteed benefits, net | (15 | ) | (2 | ) | ||||
Market impact on IUL benefits, net | 1 | — | ||||||
Restructuring charges | — | (2 | ) | |||||
Income from continuing operations before income tax provision per consolidated | $ | 650 | $ | 487 | ||||
statements of operations | ||||||||
Consolidated_Investment_Entiti1
Consolidated Investment Entities (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
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-Mar-14 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash equivalents | $ | 40 | $ | 1,941 | $ | — | $ | 1,981 | |||||||||||||
Available-for-Sale securities: | |||||||||||||||||||||
Corporate debt securities | — | 15,898 | 1,566 | 17,464 | |||||||||||||||||
Residential mortgage backed securities | — | 6,003 | 87 | 6,090 | |||||||||||||||||
Commercial mortgage backed securities | — | 2,706 | 75 | 2,781 | |||||||||||||||||
Asset backed securities | — | 1,316 | 206 | 1,522 | |||||||||||||||||
State and municipal obligations | — | 2,298 | — | 2,298 | |||||||||||||||||
U.S. government and agencies obligations | 17 | 35 | — | 52 | |||||||||||||||||
Foreign government bonds and obligations | — | 252 | — | 252 | |||||||||||||||||
Common stocks | 5 | 8 | 6 | 19 | |||||||||||||||||
Total Available-for-Sale securities | 22 | 28,516 | 1,940 | 30,478 | |||||||||||||||||
Trading securities | 2 | 36 | 2 | 40 | |||||||||||||||||
Separate account assets | — | 81,872 | — | 81,872 | |||||||||||||||||
Other assets: | |||||||||||||||||||||
Interest rate derivative contracts | — | 1,545 | — | 1,545 | |||||||||||||||||
Equity derivative contracts | 306 | 1,330 | — | 1,636 | |||||||||||||||||
Credit derivative contracts | — | 1 | — | 1 | |||||||||||||||||
Foreign currency derivative contracts | 3 | 3 | — | 6 | |||||||||||||||||
Total other assets | 309 | 2,879 | — | 3,188 | |||||||||||||||||
Total assets at fair value | $ | 373 | $ | 115,244 | $ | 1,942 | $ | 117,559 | |||||||||||||
Liabilities | |||||||||||||||||||||
Policyholder account balances, future policy benefits and claims: | |||||||||||||||||||||
EIA embedded derivatives | $ | — | $ | 5 | $ | — | $ | 5 | |||||||||||||
IUL embedded derivatives | — | — | 154 | 154 | |||||||||||||||||
GMWB and GMAB embedded derivatives | — | — | (471 | ) | (471 | ) | (2) | ||||||||||||||
Total policyholder account balances, future policy benefits and claims | — | 5 | (317 | ) | (312 | ) | (1) | ||||||||||||||
Customer deposits | — | 6 | — | 6 | |||||||||||||||||
Other liabilities: | |||||||||||||||||||||
Interest rate derivative contracts | — | 1,442 | — | 1,442 | |||||||||||||||||
Equity derivative contracts | 552 | 2,399 | — | 2,951 | |||||||||||||||||
Foreign currency derivative contracts | 2 | — | — | 2 | |||||||||||||||||
Other | — | 17 | — | 17 | |||||||||||||||||
Total other liabilities | 554 | 3,858 | — | 4,412 | |||||||||||||||||
Total liabilities at fair value | $ | 554 | $ | 3,869 | $ | (317 | ) | $ | 4,106 | ||||||||||||
(1) The Company’s adjustment for nonperformance risk resulted in a $169 million cumulative increase to the embedded derivatives. | |||||||||||||||||||||
(2) The fair value of the GMWB and GMAB embedded derivatives was a net asset at March 31, 2014 and the amount is reported as a contra liability. | |||||||||||||||||||||
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 increase 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. | |||||||||||||||||||||
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: | |||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Syndicated loans | |||||||||||||||||||||
Unpaid principal balance | $ | 5,028 | $ | 4,628 | |||||||||||||||||
Excess unpaid principal over fair value | (49 | ) | (56 | ) | |||||||||||||||||
Fair value | $ | 4,979 | $ | 4,572 | |||||||||||||||||
Fair value of loans more than 90 days past due | $ | 27 | $ | 23 | |||||||||||||||||
Fair value of loans in nonaccrual status | 27 | 23 | |||||||||||||||||||
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both | 28 | 33 | |||||||||||||||||||
Debt | |||||||||||||||||||||
Unpaid principal balance | $ | 5,446 | $ | 5,032 | |||||||||||||||||
Excess unpaid principal over fair value | (221 | ) | (228 | ) | |||||||||||||||||
Fair value | $ | 5,225 | $ | 4,804 | |||||||||||||||||
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 | ||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | 31-Mar-14 | 31-Dec-13 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||
Long-term debt: | |||||||||||||||||||||
Senior notes due 2015 | $ | 364 | (1) | $ | 366 | (1) | 5.7 | % | 5.7 | % | |||||||||||
Senior notes due 2019 | 327 | (1) | 327 | (1) | 7.3 | 7.3 | |||||||||||||||
Senior notes due 2020 | 784 | (1) | 783 | (1) | 5.3 | 5.3 | |||||||||||||||
Senior notes due 2023 | 750 | 750 | 4 | 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 | 2,719 | 2,720 | |||||||||||||||||||
Short-term borrowings: | |||||||||||||||||||||
Federal Home Loan Bank (“FHLB”) advances | 250 | 450 | 0.3 | 0.3 | |||||||||||||||||
Repurchase agreements | 50 | 50 | 0.3 | 0.3 | |||||||||||||||||
Total short-term borrowings | 300 | 500 | |||||||||||||||||||
Total | $ | 3,019 | $ | 3,220 | |||||||||||||||||
(1) Amounts include adjustments for fair value hedges on the Company’s long-term debt. See Note 12 for information on the Company’s fair value hedges. | |||||||||||||||||||||
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-Mar-14 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Investments: | |||||||||||||||||||||
Corporate debt securities | $ | — | $ | 152 | $ | 13 | $ | 165 | |||||||||||||
Common stocks | 166 | 40 | 10 | 216 | |||||||||||||||||
Other investments | 4 | 33 | — | 37 | |||||||||||||||||
Syndicated loans | — | 4,595 | 384 | 4,979 | |||||||||||||||||
Total investments | 170 | 4,820 | 407 | 5,397 | |||||||||||||||||
Receivables | — | 36 | — | 36 | |||||||||||||||||
Other assets | — | 2 | 1,993 | 1,995 | |||||||||||||||||
Total assets at fair value | $ | 170 | $ | 4,858 | $ | 2,400 | $ | 7,428 | |||||||||||||
Liabilities | |||||||||||||||||||||
Debt | $ | — | $ | — | $ | 5,225 | $ | 5,225 | |||||||||||||
Other liabilities | — | 238 | — | 238 | |||||||||||||||||
Total liabilities at fair value | $ | — | $ | 238 | $ | 5,225 | $ | 5,463 | |||||||||||||
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 | |||||||||||||
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, 2014 | $ | 2 | $ | 14 | $ | 368 | $ | 1,936 | $ | (4,804 | ) | ||||||||||
Total gains (losses) included in: | |||||||||||||||||||||
Net income | 1 | (1) | 2 | (1) | 4 | (1) | 80 | (2) | (10 | ) | (1) | ||||||||||
Other comprehensive income (loss) | — | — | — | 15 | — | ||||||||||||||||
Purchases | 2 | — | 96 | 19 | — | ||||||||||||||||
Sales | (2 | ) | — | — | (68 | ) | — | ||||||||||||||
Issues | — | — | — | — | (456 | ) | |||||||||||||||
Settlements | — | — | (12 | ) | — | 45 | |||||||||||||||
Transfers into Level 3 | 10 | 6 | 146 | 11 | — | ||||||||||||||||
Transfers out of Level 3 | — | (12 | ) | (218 | ) | — | — | ||||||||||||||
Balance, March 31, 2014 | $ | 13 | $ | 10 | $ | 384 | $ | 1,993 | $ | (5,225 | ) | ||||||||||
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at March 31, 2014 | $ | 1 | (1) | $ | 2 | (1) | $ | 3 | (1) | $ | 78 | (2) | $ | (10 | ) | (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, 2013 | $ | 3 | $ | 14 | $ | 202 | $ | 1,214 | $ | (4,450 | ) | ||||||||||
Total losses included in: | |||||||||||||||||||||
Net income | — | — | — | (6 | ) | (2) | (24 | ) | (1) | ||||||||||||
Other comprehensive income (loss) | — | — | — | (77 | ) | — | |||||||||||||||
Purchases | — | — | 76 | 51 | — | ||||||||||||||||
Sales | — | — | (18 | ) | (6 | ) | — | ||||||||||||||
Issues | — | — | — | — | (410 | ) | |||||||||||||||
Settlements | — | — | (13 | ) | — | 289 | |||||||||||||||
Transfers into Level 3 | — | 2 | 51 | — | — | ||||||||||||||||
Transfers out of Level 3 | — | (8 | ) | (93 | ) | — | — | ||||||||||||||
Balance, March 31, 2013 | $ | 3 | $ | 8 | $ | 205 | $ | 1,176 | $ | (4,595 | ) | ||||||||||
Changes in unrealized losses included in income relating to assets and liabilities held at March 31, 2013 | $ | — | $ | — | $ | — | $ | (5 | ) | (2) | $ | (24 | ) | (1) | |||||||
(1) Included in net investment income in the Consolidated Statements of Operations. | |||||||||||||||||||||
(2) Included in other revenues in the Consolidated Statements of Operations. | |||||||||||||||||||||
Significant unobservable inputs used in the fair value measurements of assets and liabilities held by consolidated investment entities | ' | ||||||||||||||||||||
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: | |||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range | Weighted Average | |||||||||||||||||
(in millions) | |||||||||||||||||||||
Other assets | $ | 1,993 | Discounted cash flow/ market comparables | Equivalent yield | 4.6 | % | – | 11.9 | % | 7.2 | % | ||||||||||
Expected rental value (per square foot) | $5 | – | $374 | $33 | |||||||||||||||||
Debt | $ | 5,225 | Discounted cash flow | Annual default rate | 2.5 | % | – | 2.5 | % | 2.5 | % | ||||||||||
Discount rate | 1.4 | % | – | 7.5 | % | 2.6 | % | ||||||||||||||
Constant prepayment rate | 5 | % | – | 10 | % | 9.8 | % | ||||||||||||||
Loss recovery | 36.4 | % | – | 63.6 | % | 62.6 | % | ||||||||||||||
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 | % | – | 12.4 | % | 7.4 | % | ||||||||||
Expected rental value (per square foot) | $5 | – | $373 | $33 | |||||||||||||||||
Debt | $ | 4,804 | Discounted cash flow | Annual default rate | 2.5 | % | – | 2.5 | % | 2.5 | % | ||||||||||
Discount rate | 1.5 | % | – | 8.3 | % | 2.7 | % | ||||||||||||||
Constant prepayment rate | 5 | % | – | 10 | % | 9.8 | % | ||||||||||||||
Loss recovery | 36.4 | % | – | 63.6 | % | 62.3 | % | ||||||||||||||
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 | ||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | 31-Mar-14 | 31-Dec-13 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||
Debt of consolidated CDOs due 2016-2026 | $ | 5,225 | $ | 4,804 | 1.1 | % | 1 | % | |||||||||||||
Floating rate revolving credit borrowings due 2014 | 267 | 305 | 2.6 | 2.6 | |||||||||||||||||
Floating rate revolving credit borrowings due 2015 | 98 | 97 | 2.4 | 2.4 | |||||||||||||||||
Floating rate revolving credit borrowings due 2017 | 121 | 120 | 4.6 | 4.5 | |||||||||||||||||
Floating rate revolving credit borrowings due 2018 | 403 | 377 | 3.6 | 3.5 | |||||||||||||||||
Floating rate revolving credit borrowings due 2019 | 33 | 33 | 3 | 3 | |||||||||||||||||
Total | $ | 6,147 | $ | 5,736 | |||||||||||||||||
Investments_Tables
Investments (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||||||||
Summary of Investments | ' | |||||||||||||||||||||||||||||||||
The following is a summary of Ameriprise Financial investments: | ||||||||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Available-for-Sale securities, at fair value | $ | 30,478 | $ | 30,310 | ||||||||||||||||||||||||||||||
Mortgage loans, net | 3,487 | 3,510 | ||||||||||||||||||||||||||||||||
Policy and certificate loans | 780 | 774 | ||||||||||||||||||||||||||||||||
Other investments | 1,161 | 1,141 | ||||||||||||||||||||||||||||||||
Total | $ | 35,906 | $ | 35,735 | ||||||||||||||||||||||||||||||
Summary of net investment income | ' | |||||||||||||||||||||||||||||||||
The following is a summary of net investment income: | ||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Investment income on fixed maturities | $ | 374 | $ | 401 | ||||||||||||||||||||||||||||||
Net realized gains | 5 | 1 | ||||||||||||||||||||||||||||||||
Affordable housing partnerships | (6 | ) | (7 | ) | ||||||||||||||||||||||||||||||
Other | 24 | 17 | ||||||||||||||||||||||||||||||||
Consolidated investment entities | 74 | 77 | ||||||||||||||||||||||||||||||||
Total net investment income | $ | 471 | $ | 489 | ||||||||||||||||||||||||||||||
Available-for-Sale Securities Disclosure | ' | |||||||||||||||||||||||||||||||||
Available-for-Sale securities distributed by type were as follows: | ||||||||||||||||||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||||||||||||||||
Description of Securities | Amortized | Gross | Gross | Fair Value | Noncredit | |||||||||||||||||||||||||||||
Cost | Unrealized Gains | Unrealized Losses | OTTI (1) | |||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 15,996 | $ | 1,516 | $ | (48 | ) | $ | 17,464 | $ | 3 | |||||||||||||||||||||||
Residential mortgage backed securities | 6,049 | 151 | (110 | ) | 6,090 | (29 | ) | |||||||||||||||||||||||||||
Commercial mortgage backed securities | 2,649 | 139 | (7 | ) | 2,781 | — | ||||||||||||||||||||||||||||
Asset backed securities | 1,474 | 54 | (6 | ) | 1,522 | — | ||||||||||||||||||||||||||||
State and municipal obligations | 2,182 | 166 | (50 | ) | 2,298 | — | ||||||||||||||||||||||||||||
U.S. government and agencies obligations | 47 | 5 | — | 52 | — | |||||||||||||||||||||||||||||
Foreign government bonds and obligations | 238 | 20 | (6 | ) | 252 | — | ||||||||||||||||||||||||||||
Common stocks | 7 | 12 | — | 19 | 5 | |||||||||||||||||||||||||||||
Total | $ | 28,642 | $ | 2,063 | $ | (227 | ) | $ | 30,478 | $ | (21 | ) | ||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||
Description of Securities | Amortized | Gross | Gross | Fair Value | Noncredit | |||||||||||||||||||||||||||||
Cost | Unrealized Gains | Unrealized Losses | OTTI (1) | |||||||||||||||||||||||||||||||
(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 | ) | ||||||||||||||||||||||
(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-Mar-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||
Ratings | Amortized Cost | Fair Value | Percent of Total | Amortized Cost | Fair Value | Percent of Total | ||||||||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||||||||||||||
AAA | $ | 7,446 | $ | 7,664 | 25 | % | $ | 7,562 | $ | 7,746 | 25 | % | ||||||||||||||||||||||
AA | 1,572 | 1,740 | 6 | 1,587 | 1,707 | 6 | ||||||||||||||||||||||||||||
A | 6,385 | 6,838 | 22 | 6,381 | 6,738 | 22 | ||||||||||||||||||||||||||||
BBB | 11,382 | 12,388 | 41 | 11,427 | 12,272 | 41 | ||||||||||||||||||||||||||||
Below investment grade | 1,850 | 1,829 | 6 | 1,875 | 1,829 | 6 | ||||||||||||||||||||||||||||
Total fixed maturities | $ | 28,635 | $ | 30,459 | 100 | % | $ | 28,832 | $ | 30,292 | 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-Mar-14 | ||||||||||||||||||||||||||||||||||
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 | 134 | $ | 1,834 | $ | (35 | ) | 13 | $ | 232 | $ | (13 | ) | 147 | $ | 2,066 | $ | (48 | ) | ||||||||||||||||
Residential mortgage backed securities | 102 | 1,874 | (39 | ) | 127 | 884 | (71 | ) | 229 | 2,758 | (110 | ) | ||||||||||||||||||||||
Commercial mortgage backed securities | 24 | 265 | (5 | ) | 2 | 21 | (2 | ) | 26 | 286 | (7 | ) | ||||||||||||||||||||||
Asset backed securities | 36 | 434 | (4 | ) | 5 | 61 | (2 | ) | 41 | 495 | (6 | ) | ||||||||||||||||||||||
State and municipal obligations | 87 | 250 | (12 | ) | 22 | 133 | (38 | ) | 109 | 383 | (50 | ) | ||||||||||||||||||||||
Foreign government bonds and obligations | 21 | 65 | (6 | ) | 1 | 1 | — | 22 | 66 | (6 | ) | |||||||||||||||||||||||
Total | 404 | $ | 4,722 | $ | (101 | ) | 170 | $ | 1,332 | $ | (126 | ) | 574 | $ | 6,054 | $ | (227 | ) | ||||||||||||||||
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 | ) | ||||||||||||||||
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 Available-for-Sale securities for which a portion of the securities’ total other-than-temporary impairments was recognized in other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Beginning balance | $ | 147 | $ | 176 | ||||||||||||||||||||||||||||||
Credit losses for which an other-than-temporary impairment was previously recognized | — | 2 | ||||||||||||||||||||||||||||||||
Reductions for securities sold during the period (realized) | — | (13 | ) | |||||||||||||||||||||||||||||||
Ending balance | $ | 147 | $ | 165 | ||||||||||||||||||||||||||||||
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 | Deferred | Accumulated | ||||||||||||||||||||||||||||||||
Unrealized | Income Tax | Other Comprehensive | ||||||||||||||||||||||||||||||||
Securities | Income Related to | |||||||||||||||||||||||||||||||||
Gains | Net Unrealized | |||||||||||||||||||||||||||||||||
Securities Gains | ||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Balance at January 1, 2013 | $ | 2,017 | $ | (705 | ) | $ | 1,312 | |||||||||||||||||||||||||||
Net unrealized securities losses arising during the period (1) | (216 | ) | 75 | (141 | ) | |||||||||||||||||||||||||||||
Reclassification of net securities gains included in net income | (1 | ) | — | (1 | ) | |||||||||||||||||||||||||||||
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables | 98 | (34 | ) | 64 | ||||||||||||||||||||||||||||||
Balance at March 31, 2013 | $ | 1,898 | $ | (664 | ) | $ | 1,234 | (2) | ||||||||||||||||||||||||||
Balance at January 1, 2014 | $ | 1,016 | $ | (361 | ) | $ | 655 | |||||||||||||||||||||||||||
Net unrealized securities gains arising during the period (1) | 370 | (131 | ) | 239 | ||||||||||||||||||||||||||||||
Reclassification of net securities gains included in net income | (5 | ) | 2 | (3 | ) | |||||||||||||||||||||||||||||
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables | (140 | ) | 49 | (91 | ) | |||||||||||||||||||||||||||||
Balance at March 31, 2014 | $ | 1,241 | $ | (441 | ) | $ | 800 | (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 $1 million and $11 million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at March 31, 2014 and 2013, 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: | ||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Gross realized gains | $ | 7 | $ | 4 | ||||||||||||||||||||||||||||||
Gross realized losses | (1 | ) | — | |||||||||||||||||||||||||||||||
Other-than-temporary impairments | (1 | ) | (3 | ) | ||||||||||||||||||||||||||||||
Total | $ | 5 | $ | 1 | ||||||||||||||||||||||||||||||
Available-for-Sale Securities Contractual Maturity Disclosure | ' | |||||||||||||||||||||||||||||||||
Available-for-Sale securities by contractual maturity at March 31, 2014 were as follows: | ||||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||
Due within one year | $ | 1,525 | $ | 1,549 | ||||||||||||||||||||||||||||||
Due after one year through five years | 6,536 | 7,069 | ||||||||||||||||||||||||||||||||
Due after five years through 10 years | 5,678 | 5,998 | ||||||||||||||||||||||||||||||||
Due after 10 years | 4,724 | 5,450 | ||||||||||||||||||||||||||||||||
18,463 | 20,066 | |||||||||||||||||||||||||||||||||
Residential mortgage backed securities | 6,049 | 6,090 | ||||||||||||||||||||||||||||||||
Commercial mortgage backed securities | 2,649 | 2,781 | ||||||||||||||||||||||||||||||||
Asset backed securities | 1,474 | 1,522 | ||||||||||||||||||||||||||||||||
Common stocks | 7 | 19 | ||||||||||||||||||||||||||||||||
Total | $ | 28,642 | $ | 30,478 | ||||||||||||||||||||||||||||||
Financing_Receivables_Tables
Financing Receivables (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||
Rollforward of the allowance for loan losses | ' | |||||||||||||||
The following tables present a rollforward of the allowance for loan losses for the three months ended and the ending balance of the allowance for loan losses by impairment method and type of loan: | ||||||||||||||||
31-Mar-14 | ||||||||||||||||
Commercial | Syndicated Loans | Consumer Loans | Total | |||||||||||||
Mortgage Loans | ||||||||||||||||
(in millions) | ||||||||||||||||
Beginning balance | $ | 26 | $ | 6 | $ | 5 | $ | 37 | ||||||||
Charge-offs | (1 | ) | (2 | ) | — | (3 | ) | |||||||||
Ending balance | $ | 25 | $ | 4 | $ | 5 | $ | 34 | ||||||||
Individually evaluated for impairment | $ | 6 | $ | — | $ | 1 | $ | 7 | ||||||||
Collectively evaluated for impairment | 19 | 4 | 4 | 27 | ||||||||||||
31-Mar-13 | ||||||||||||||||
Commercial | Syndicated Loans | Consumer Loans | Total | |||||||||||||
Mortgage Loans | ||||||||||||||||
(in millions) | ||||||||||||||||
Beginning balance | $ | 29 | $ | 7 | $ | 8 | $ | 44 | ||||||||
Charge-offs | — | — | (1 | ) | (1 | ) | ||||||||||
Ending balance | $ | 29 | $ | 7 | $ | 7 | $ | 43 | ||||||||
Individually evaluated for impairment | $ | 7 | $ | — | $ | 1 | $ | 8 | ||||||||
Collectively evaluated for impairment | 22 | 7 | 6 | 35 | ||||||||||||
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-Mar-14 | ||||||||||||||||
Commercial | Syndicated Loans | Consumer Loans | Total | |||||||||||||
Mortgage Loans | ||||||||||||||||
(in millions) | ||||||||||||||||
Individually evaluated for impairment | $ | 32 | $ | 4 | $ | 7 | $ | 43 | ||||||||
Collectively evaluated for impairment | 2,663 | 418 | 833 | 3,914 | ||||||||||||
Total | $ | 2,695 | $ | 422 | $ | 840 | $ | 3,957 | ||||||||
31-Dec-13 | ||||||||||||||||
Commercial | Syndicated Loans | Consumer Loans | Total | |||||||||||||
Mortgage Loans | ||||||||||||||||
(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 | ||||||||
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 | |||||||||||||||
March 31, 2014 | December 31, 2013 | March 31, 2014 | December 31, 2013 | |||||||||||||
(in millions) | ||||||||||||||||
East North Central | $ | 244 | $ | 251 | 9 | % | 9 | % | ||||||||
East South Central | 68 | 71 | 3 | 3 | ||||||||||||
Middle Atlantic | 214 | 211 | 8 | 8 | ||||||||||||
Mountain | 255 | 257 | 9 | 10 | ||||||||||||
New England | 146 | 149 | 5 | 5 | ||||||||||||
Pacific | 674 | 661 | 25 | 25 | ||||||||||||
South Atlantic | 723 | 713 | 27 | 26 | ||||||||||||
West North Central | 210 | 207 | 8 | 8 | ||||||||||||
West South Central | 161 | 162 | 6 | 6 | ||||||||||||
2,695 | 2,682 | 100 | % | 100 | % | |||||||||||
Less: allowance for loan losses | 25 | 26 | ||||||||||||||
Total | $ | 2,670 | $ | 2,656 | ||||||||||||
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 | |||||||||||||||
March 31, 2014 | December 31, 2013 | March 31, 2014 | December 31, 2013 | |||||||||||||
(in millions) | ||||||||||||||||
Apartments | $ | 477 | $ | 488 | 18 | % | 18 | % | ||||||||
Hotel | 31 | 33 | 1 | 1 | ||||||||||||
Industrial | 471 | 454 | 17 | 17 | ||||||||||||
Mixed use | 46 | 36 | 2 | 1 | ||||||||||||
Office | 559 | 559 | 21 | 21 | ||||||||||||
Retail | 952 | 951 | 35 | 36 | ||||||||||||
Other | 159 | 161 | 6 | 6 | ||||||||||||
2,695 | 2,682 | 100 | % | 100 | % | |||||||||||
Less: allowance for loan losses | 25 | 26 | ||||||||||||||
Total | $ | 2,670 | $ | 2,656 | ||||||||||||
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: | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | |||||||||||||
(in millions, except number of loans) | ||||||||||||||||
Commercial mortgage loans | 2 | $ | 8 | — | $ | — | ||||||||||
Syndicated loans | 1 | 1 | — | — | ||||||||||||
Consumer loans | 2 | — | 5 | — | ||||||||||||
Total | 5 | $ | 9 | 5 | $ | — | ||||||||||
Deferred_Acquisition_Costs_and1
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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: | ||||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Balance at January 1 | $ | 2,663 | $ | 2,399 | ||||
Capitalization of acquisition costs | 79 | 78 | ||||||
Amortization | (87 | ) | (75 | ) | ||||
Impact of change in net unrealized securities losses (gains) | (25 | ) | 33 | |||||
Balance at March 31 | $ | 2,630 | $ | 2,435 | ||||
Schedule of balances of and changes in DSIC | ' | |||||||
The balances of and changes in DSIC, which is included in other assets, were as follows: | ||||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Balance at January 1 | $ | 409 | $ | 404 | ||||
Capitalization of sales inducement costs | 1 | 2 | ||||||
Amortization | (13 | ) | (12 | ) | ||||
Impact of change in net unrealized securities losses (gains) | (5 | ) | 3 | |||||
Balance at March 31 | $ | 392 | $ | 397 | ||||
Policyholder_Account_Balances_1
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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: | ||||||||
31-Mar-14 | 31-Dec-13 | |||||||
(in millions) | ||||||||
Policyholder account balances | ||||||||
Fixed annuities | $ | 13,511 | $ | 13,826 | ||||
Variable annuity fixed sub-accounts | 4,892 | 4,926 | ||||||
Variable universal life (“VUL”)/universal life (“UL”) insurance | 2,798 | 2,790 | ||||||
Indexed universal life (“IUL”) insurance | 363 | 315 | ||||||
Other life insurance | 868 | 878 | ||||||
Total policyholder account balances | 22,432 | 22,735 | ||||||
Future policy benefits | ||||||||
Variable annuity GMWB (1) | (267 | ) | (383 | ) | ||||
Variable annuity GMAB (1) | (69 | ) | (62 | ) | ||||
Other annuity liabilities | 103 | 76 | ||||||
Fixed annuities life contingent liabilities | 1,517 | 1,523 | ||||||
Equity indexed annuities (“EIA”) | 28 | 29 | ||||||
Life, disability income and long term care insurance | 4,845 | 4,739 | ||||||
VUL/UL and other life insurance additional liabilities | 373 | 336 | ||||||
Total future policy benefits | 6,530 | 6,258 | ||||||
Policy claims and other policyholders’ funds | 663 | 627 | ||||||
Total policyholder account balances, future policy benefits and claims | $ | 29,625 | $ | 29,620 | ||||
(1) Includes the value of GMWB and GMAB embedded derivatives which was a net asset at both March 31, 2014 and 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: | ||||||||
31-Mar-14 | 31-Dec-13 | |||||||
(in millions) | ||||||||
Variable annuity | $ | 71,072 | $ | 70,687 | ||||
VUL insurance | 6,918 | 6,885 | ||||||
Other insurance | 43 | 44 | ||||||
Threadneedle investment liabilities | 3,839 | 3,607 | ||||||
Total | $ | 81,872 | $ | 81,223 | ||||
Variable_Annuity_and_Insurance1
Variable Annuity and Insurance Guarantees (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
Insurance [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of variable annuity guarantees | ' | ||||||||||||||||||||||||||||
The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities: | |||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Variable Annuity Guarantees by Benefit Type (1) | Total Contract Value | Contract Value in Separate Accounts | Net Amount at Risk | Weighted Average Attained Age | Total Contract Value | Contract Value in Separate Accounts | Net Amount at Risk | Weighted Average Attained Age | |||||||||||||||||||||
(in millions, except age) | |||||||||||||||||||||||||||||
GMDB: | |||||||||||||||||||||||||||||
Return of premium | $ | 53,368 | $ | 51,554 | $ | 26 | 64 | $ | 52,616 | $ | 50,790 | $ | 28 | 64 | |||||||||||||||
Five/six-year reset | 10,938 | 8,392 | 36 | 64 | 11,220 | 8,663 | 42 | 64 | |||||||||||||||||||||
One-year ratchet | 7,608 | 7,203 | 36 | 66 | 7,676 | 7,261 | 38 | 65 | |||||||||||||||||||||
Five-year ratchet | 1,790 | 1,734 | 1 | 62 | 1,781 | 1,725 | 1 | 62 | |||||||||||||||||||||
Other | 1,002 | 983 | 37 | 69 | 1,015 | 996 | 36 | 69 | |||||||||||||||||||||
Total — GMDB | $ | 74,706 | $ | 69,866 | $ | 136 | 64 | $ | 74,308 | $ | 69,435 | $ | 145 | 64 | |||||||||||||||
GGU death benefit | $ | 1,051 | $ | 999 | $ | 121 | 66 | $ | 1,052 | $ | 998 | $ | 121 | 64 | |||||||||||||||
GMIB | $ | 396 | $ | 372 | $ | 8 | 66 | $ | 413 | $ | 389 | $ | 8 | 66 | |||||||||||||||
GMWB: | |||||||||||||||||||||||||||||
GMWB | $ | 3,864 | $ | 3,850 | $ | 1 | 67 | $ | 3,936 | $ | 3,921 | $ | 1 | 67 | |||||||||||||||
GMWB for life | 34,821 | 34,695 | 92 | 65 | 34,069 | 33,930 | 77 | 64 | |||||||||||||||||||||
Total — GMWB | $ | 38,685 | $ | 38,545 | $ | 93 | 65 | $ | 38,005 | $ | 37,851 | $ | 78 | 64 | |||||||||||||||
GMAB | $ | 4,201 | $ | 4,190 | $ | 1 | 58 | $ | 4,194 | $ | 4,181 | $ | 2 | 58 | |||||||||||||||
(1) Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table. | |||||||||||||||||||||||||||||
Schedule of net amount of risk UL secondary guarantees | ' | ||||||||||||||||||||||||||||
The following table provides information related to insurance guarantees for which the Company has established additional liabilities: | |||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Net Amount at Risk | Weighted Average Attained Age | Net Amount at Risk | Weighted Average Attained Age | ||||||||||||||||||||||||||
(in millions, except age) | |||||||||||||||||||||||||||||
UL secondary guarantees | $ | 5,749 | 62 | $ | 5,674 | 62 | |||||||||||||||||||||||
Schedule of changes in additional liabilities for variable annuity and insurance guarantees | ' | ||||||||||||||||||||||||||||
Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows: | |||||||||||||||||||||||||||||
GMDB & GGU | GMIB | GMWB (1) | GMAB (1) | UL | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance at January 1, 2013 | $ | 4 | $ | 9 | $ | 799 | $ | 103 | $ | 155 | |||||||||||||||||||
Incurred claims | 1 | — | (480 | ) | (80 | ) | 17 | ||||||||||||||||||||||
Paid claims | (1 | ) | — | — | — | (3 | ) | ||||||||||||||||||||||
Balance at March 31, 2013 | $ | 4 | $ | 9 | $ | 319 | $ | 23 | $ | 169 | |||||||||||||||||||
Balance at January 1, 2014 | $ | 4 | $ | 6 | $ | (383 | ) | $ | (62 | ) | $ | 206 | |||||||||||||||||
Incurred claims | 1 | — | 116 | (7 | ) | 11 | |||||||||||||||||||||||
Paid claims | (1 | ) | — | — | — | 4 | |||||||||||||||||||||||
Balance at March 31, 2014 | $ | 4 | $ | 6 | $ | (267 | ) | $ | (69 | ) | $ | 221 | |||||||||||||||||
(1) The incurred claims for GMWB and GMAB represent the total change in the liabilities (contra liabilities). | |||||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Mutual funds: | |||||||||||||||||||||||||||||
Equity | $ | 39,742 | $ | 39,195 | |||||||||||||||||||||||||
Bond | 25,965 | 26,519 | |||||||||||||||||||||||||||
Other | 4,168 | 3,764 | |||||||||||||||||||||||||||
Total mutual funds | $ | 69,875 | $ | 69,478 | |||||||||||||||||||||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
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 | |||||||||||||
31-Mar-14 | 31-Dec-13 | 31-Mar-14 | 31-Dec-13 | |||||||||||
(in millions) | ||||||||||||||
Long-term debt: | ||||||||||||||
Senior notes due 2015 | $ | 364 | (1) | $ | 366 | (1) | 5.7 | % | 5.7 | % | ||||
Senior notes due 2019 | 327 | (1) | 327 | (1) | 7.3 | 7.3 | ||||||||
Senior notes due 2020 | 784 | (1) | 783 | (1) | 5.3 | 5.3 | ||||||||
Senior notes due 2023 | 750 | 750 | 4 | 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 | 2,719 | 2,720 | ||||||||||||
Short-term borrowings: | ||||||||||||||
Federal Home Loan Bank (“FHLB”) advances | 250 | 450 | 0.3 | 0.3 | ||||||||||
Repurchase agreements | 50 | 50 | 0.3 | 0.3 | ||||||||||
Total short-term borrowings | 300 | 500 | ||||||||||||
Total | $ | 3,019 | $ | 3,220 | ||||||||||
(1) Amounts include adjustments for fair value hedges on the Company’s long-term debt. See Note 12 for information on the Company’s fair value hedges. |
Fair_Values_of_Assets_and_Liab1
Fair Values of Assets and Liabilities (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
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-Mar-14 | ||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Cash equivalents | $ | 40 | $ | 1,941 | $ | — | $ | 1,981 | ||||||||||||||||||||||||||||||||
Available-for-Sale securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | — | 15,898 | 1,566 | 17,464 | ||||||||||||||||||||||||||||||||||||
Residential mortgage backed securities | — | 6,003 | 87 | 6,090 | ||||||||||||||||||||||||||||||||||||
Commercial mortgage backed securities | — | 2,706 | 75 | 2,781 | ||||||||||||||||||||||||||||||||||||
Asset backed securities | — | 1,316 | 206 | 1,522 | ||||||||||||||||||||||||||||||||||||
State and municipal obligations | — | 2,298 | — | 2,298 | ||||||||||||||||||||||||||||||||||||
U.S. government and agencies obligations | 17 | 35 | — | 52 | ||||||||||||||||||||||||||||||||||||
Foreign government bonds and obligations | — | 252 | — | 252 | ||||||||||||||||||||||||||||||||||||
Common stocks | 5 | 8 | 6 | 19 | ||||||||||||||||||||||||||||||||||||
Total Available-for-Sale securities | 22 | 28,516 | 1,940 | 30,478 | ||||||||||||||||||||||||||||||||||||
Trading securities | 2 | 36 | 2 | 40 | ||||||||||||||||||||||||||||||||||||
Separate account assets | — | 81,872 | — | 81,872 | ||||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||
Interest rate derivative contracts | — | 1,545 | — | 1,545 | ||||||||||||||||||||||||||||||||||||
Equity derivative contracts | 306 | 1,330 | — | 1,636 | ||||||||||||||||||||||||||||||||||||
Credit derivative contracts | — | 1 | — | 1 | ||||||||||||||||||||||||||||||||||||
Foreign currency derivative contracts | 3 | 3 | — | 6 | ||||||||||||||||||||||||||||||||||||
Total other assets | 309 | 2,879 | — | 3,188 | ||||||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 373 | $ | 115,244 | $ | 1,942 | $ | 117,559 | ||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Policyholder account balances, future policy benefits and claims: | ||||||||||||||||||||||||||||||||||||||||
EIA embedded derivatives | $ | — | $ | 5 | $ | — | $ | 5 | ||||||||||||||||||||||||||||||||
IUL embedded derivatives | — | — | 154 | 154 | ||||||||||||||||||||||||||||||||||||
GMWB and GMAB embedded derivatives | — | — | (471 | ) | (471 | ) | (2) | |||||||||||||||||||||||||||||||||
Total policyholder account balances, future policy benefits and claims | — | 5 | (317 | ) | (312 | ) | (1) | |||||||||||||||||||||||||||||||||
Customer deposits | — | 6 | — | 6 | ||||||||||||||||||||||||||||||||||||
Other liabilities: | ||||||||||||||||||||||||||||||||||||||||
Interest rate derivative contracts | — | 1,442 | — | 1,442 | ||||||||||||||||||||||||||||||||||||
Equity derivative contracts | 552 | 2,399 | — | 2,951 | ||||||||||||||||||||||||||||||||||||
Foreign currency derivative contracts | 2 | — | — | 2 | ||||||||||||||||||||||||||||||||||||
Other | — | 17 | — | 17 | ||||||||||||||||||||||||||||||||||||
Total other liabilities | 554 | 3,858 | — | 4,412 | ||||||||||||||||||||||||||||||||||||
Total liabilities at fair value | $ | 554 | $ | 3,869 | $ | (317 | ) | $ | 4,106 | |||||||||||||||||||||||||||||||
(1) The Company’s adjustment for nonperformance risk resulted in a $169 million cumulative increase to the embedded derivatives. | ||||||||||||||||||||||||||||||||||||||||
(2) The fair value of the GMWB and GMAB embedded derivatives was a net asset at March 31, 2014 and the amount is reported as a contra liability. | ||||||||||||||||||||||||||||||||||||||||
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 increase 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. | ||||||||||||||||||||||||||||||||||||||||
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, | $ | 1,640 | $ | 187 | $ | 30 | $ | 260 | $ | 6 | $ | 2,123 | $ | 2 | $ | (125 | ) | $ | 575 | $ | 450 | |||||||||||||||||||
January 1, 2014 | ||||||||||||||||||||||||||||||||||||||||
Total gains (losses) included in: | ||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | (6 | ) | (1) | (52 | ) | (2) | (58 | ) | |||||||||||||||||||||||||
Other comprehensive income | 4 | — | — | — | — | 4 | — | — | — | — | ||||||||||||||||||||||||||||||
Purchases | 76 | 82 | 60 | 21 | — | 239 | — | — | — | — | ||||||||||||||||||||||||||||||
Sales | (11 | ) | — | — | — | — | (11 | ) | — | — | — | — | ||||||||||||||||||||||||||||
Issues | — | — | — | — | — | — | — | (24 | ) | (59 | ) | (83 | ) | |||||||||||||||||||||||||||
Settlements | (143 | ) | (3 | ) | — | (6 | ) | — | (152 | ) | — | 1 | 7 | 8 | ||||||||||||||||||||||||||
Transfers out of Level 3 | — | (179 | ) | (15 | ) | (69 | ) | — | (263 | ) | — | — | — | — | ||||||||||||||||||||||||||
Balance, | $ | 1,566 | $ | 87 | $ | 75 | $ | 206 | $ | 6 | $ | 1,940 | $ | 2 | $ | (154 | ) | $ | 471 | $ | 317 | |||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Changes in unrealized losses relating to assets and liabilities held at March 31, 2014 included in: | ||||||||||||||||||||||||||||||||||||||||
Net investment income | $ | (1 | ) | $ | — | $ | — | $ | — | $ | — | $ | (1 | ) | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Interest credited to fixed accounts | — | — | — | — | — | — | — | (6 | ) | — | (6 | ) | ||||||||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | — | — | — | — | — | — | — | — | (52 | ) | (52 | ) | ||||||||||||||||||||||||||||
(1) Included in interest credited to fixed accounts in the Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||||||||||
(2) 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 | Total | ||||||||||||||||||||||||||||||||
GMAB Embedded Derivatives | ||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2013 | $ | 1,764 | $ | 284 | $ | 206 | $ | 178 | $ | 6 | $ | 2,438 | $ | (45 | ) | $ | (833 | ) | $ | (878 | ) | |||||||||||||||||||
Total gains (losses) included in: | ||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | (4 | ) | (1) | 618 | (2) | 614 | ||||||||||||||||||||||||||||
Other comprehensive income | — | — | (2 | ) | 5 | — | 3 | — | — | — | ||||||||||||||||||||||||||||||
Purchases | 54 | — | — | 139 | — | 193 | — | — | — | |||||||||||||||||||||||||||||||
Issues | — | — | — | — | — | — | (12 | ) | (50 | ) | (62 | ) | ||||||||||||||||||||||||||||
Settlements | (54 | ) | — | — | (1 | ) | — | (55 | ) | — | (1 | ) | (1 | ) | ||||||||||||||||||||||||||
Transfers out of Level 3 | — | (276 | ) | — | — | (1 | ) | (277 | ) | — | — | — | ||||||||||||||||||||||||||||
Balance, March 31, 2013 | $ | 1,764 | $ | 8 | $ | 204 | $ | 321 | $ | 5 | $ | 2,302 | $ | (61 | ) | $ | (266 | ) | $ | (327 | ) | |||||||||||||||||||
Changes in unrealized gains relating to assets and liabilities held at March 31, 2013 included in: | ||||||||||||||||||||||||||||||||||||||||
Interest credited to fixed accounts | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (4 | ) | $ | — | $ | (4 | ) | ||||||||||||||||||||
Benefits, claims, losses and settlement expenses | — | — | — | — | — | — | — | 609 | 609 | |||||||||||||||||||||||||||||||
(1) Included in interest credited to fixed accounts 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: | ||||||||||||||||||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range | Weighted Average | ||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||
Corporate debt securities (private placements) | $ | 1,520 | Discounted cash flow | Yield/spread to U.S. Treasuries | 0.8 | % | – | 4.80% | 1.40% | |||||||||||||||||||||||||||||||
IUL embedded derivatives | $ | 154 | Discounted cash flow | Nonperformance risk (3) | 70 | bps | ||||||||||||||||||||||||||||||||||
GMWB and GMAB embedded derivatives | $ | (471 | ) | Discounted cash flow | Utilization of guaranteed withdrawals (1) | 0 | % | – | 51.10% | |||||||||||||||||||||||||||||||
Surrender rate | 0.1 | % | – | 57.90% | ||||||||||||||||||||||||||||||||||||
Market volatility (2) | 4.7 | % | – | 17.80% | ||||||||||||||||||||||||||||||||||||
Nonperformance risk (3) | 70 | bps | ||||||||||||||||||||||||||||||||||||||
Elective contractholder strategy allocations (4) | 0 | % | – | 50.00% | ||||||||||||||||||||||||||||||||||||
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% | ||||||||||||||||||||||||||||||||||||
(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-Mar-14 | ||||||||||||||||||||||||||||||||||||||||
Carrying Value | Fair Value | |||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||||||||||||||||
Mortgage loans, net | $ | 3,487 | $ | — | $ | — | $ | 3,498 | $ | 3,498 | ||||||||||||||||||||||||||||||
Policy and certificate loans | 780 | — | 1 | 769 | 770 | |||||||||||||||||||||||||||||||||||
Receivables | 1,258 | 158 | 1,092 | 7 | 1,257 | |||||||||||||||||||||||||||||||||||
Restricted and segregated cash | 2,391 | 2,391 | — | — | 2,391 | |||||||||||||||||||||||||||||||||||
Other investments and assets | 478 | — | 407 | 72 | 479 | |||||||||||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||||||||||
Policyholder account balances, future policy benefits and claims | $ | 13,791 | $ | — | $ | — | $ | 14,459 | $ | 14,459 | ||||||||||||||||||||||||||||||
Investment certificate reserves | 4,066 | — | — | 4,061 | 4,061 | |||||||||||||||||||||||||||||||||||
Brokerage customer deposits | 3,148 | 3,148 | — | — | 3,148 | |||||||||||||||||||||||||||||||||||
Separate account liabilities | 4,232 | — | 4,232 | — | 4,232 | |||||||||||||||||||||||||||||||||||
Debt and other liabilities | 3,271 | 209 | 3,199 | 117 | 3,525 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||
Offsetting_Assets_and_Liabilit1
Offsetting Assets and Liabilities (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
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-Mar-14 | ||||||||||||||||||||||||||||
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 | $ | 3,100 | $ | — | $ | 3,100 | $ | (2,941 | ) | $ | (87 | ) | $ | (43 | ) | $ | 29 | |||||||||||
OTC cleared | 41 | — | 41 | (29 | ) | (12 | ) | — | — | |||||||||||||||||||
Exchange-traded | 47 | — | 47 | — | — | — | 47 | |||||||||||||||||||||
Total derivatives | 3,188 | — | 3,188 | (2,970 | ) | (99 | ) | (43 | ) | 76 | ||||||||||||||||||
Securities borrowed | 158 | — | 158 | (56 | ) | — | (100 | ) | 2 | |||||||||||||||||||
Total | $ | 3,346 | $ | — | $ | 3,346 | $ | (3,026 | ) | $ | (99 | ) | $ | (143 | ) | $ | 78 | |||||||||||
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 | |||||||||||
(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-Mar-14 | ||||||||||||||||||||||||||||
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 | $ | 4,365 | $ | — | $ | 4,365 | $ | (2,941 | ) | $ | — | $ | (1,406 | ) | $ | 18 | ||||||||||||
OTC cleared | 30 | — | 30 | (29 | ) | (1 | ) | — | — | |||||||||||||||||||
Total derivatives | 4,395 | — | 4,395 | (2,970 | ) | (1 | ) | (1,406 | ) | 18 | ||||||||||||||||||
Securities loaned | 209 | — | 209 | (56 | ) | — | (147 | ) | 6 | |||||||||||||||||||
Repurchase agreements | 50 | — | 50 | — | — | (50 | ) | — | ||||||||||||||||||||
Total | $ | 4,654 | $ | — | $ | 4,654 | $ | (3,026 | ) | $ | (1 | ) | $ | (1,603 | ) | $ | 24 | |||||||||||
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 | |||||||||||
(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) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Derivative instruments | ' | ||||||||||||||||||||
Schedule of gross fair value of derivative instruments, including embedded derivatives | ' | ||||||||||||||||||||
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: | |||||||||||||||||||||
Derivatives designated as | Assets | Liabilities | |||||||||||||||||||
hedging instruments | Balance Sheet | 31-Mar-14 | 31-Dec-13 | Balance Sheet | 31-Mar-14 | 31-Dec-13 | |||||||||||||||
Location | Location | ||||||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||
Fair value hedges | |||||||||||||||||||||
Fixed rate debt | Other assets | $ | 83 | $ | 82 | Other liabilities | $ | — | $ | — | |||||||||||
Total qualifying hedges | 83 | 82 | — | — | |||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||
GMWB and GMAB | |||||||||||||||||||||
Interest rate contracts | Other assets | 1,452 | 1,484 | Other liabilities | 1,429 | 1,672 | |||||||||||||||
Equity contracts | Other assets | 1,553 | 1,741 | Other liabilities | 2,881 | 3,028 | |||||||||||||||
Credit contracts | Other assets | 1 | 3 | Other liabilities | — | — | |||||||||||||||
Foreign currency contracts | Other assets | 3 | 2 | Other liabilities | — | — | |||||||||||||||
Embedded derivatives (1) | N/A | — | — | Policyholder account balances, future policy benefits and claims (2) | (471 | ) | (575 | ) | |||||||||||||
Total GMWB and GMAB | 3,009 | 3,230 | 3,839 | 4,125 | |||||||||||||||||
Other derivatives: | |||||||||||||||||||||
Interest rate | |||||||||||||||||||||
Macro hedge program | Other assets | 10 | 4 | Other liabilities | 13 | 21 | |||||||||||||||
Equity | |||||||||||||||||||||
Macro hedge program | Other assets | — | — | Other liabilities | 12 | 8 | |||||||||||||||
EIA embedded derivatives | N/A | — | — | Policyholder account balances, future policy benefits and claims | 5 | 5 | |||||||||||||||
IUL | Other assets | 28 | 27 | Other liabilities | 9 | 13 | |||||||||||||||
IUL embedded derivatives | N/A | — | — | Policyholder account balances, future policy benefits and claims | 154 | 125 | |||||||||||||||
Stock market certificates | Other assets | 55 | 73 | Other liabilities | 49 | 66 | |||||||||||||||
Stock market certificates embedded derivatives | N/A | — | — | Customer deposits | 6 | 7 | |||||||||||||||
Foreign exchange | |||||||||||||||||||||
Foreign currency | Other assets | 3 | 2 | Other liabilities | 2 | — | |||||||||||||||
Total other | 96 | 106 | 250 | 245 | |||||||||||||||||
Total non-designated hedges | 3,105 | 3,336 | 4,089 | 4,370 | |||||||||||||||||
Total derivatives | $ | 3,188 | $ | 3,418 | $ | 4,089 | $ | 4,370 | |||||||||||||
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 March 31, 2014 and December 31, 2013 and the amount is reported as a contra liability. | |||||||||||||||||||||
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 (1) | $ | 307 | $ | 78 | |||||||||||||||||
2015 | 360 | 68 | |||||||||||||||||||
2016 | 317 | 52 | |||||||||||||||||||
2017 | 247 | 47 | |||||||||||||||||||
2018 | 205 | 57 | |||||||||||||||||||
2019-2027 | 608 | 83 | |||||||||||||||||||
Total | $ | 2,044 | $ | 385 | |||||||||||||||||
(1) 2014 amounts represent the amounts payable and receivable for the period from April 1, 2014 to December 31, 2014. | |||||||||||||||||||||
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 hedging instruments | Location of Gain (Loss) on Derivatives Recognized in Income | Amount of Gain (Loss) on | |||||||||||||||||||
Derivatives Recognized in Income | |||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||
GMWB and GMAB | |||||||||||||||||||||
Interest rate contracts | Benefits, claims, losses and settlement expenses | $ | 264 | $ | (132 | ) | |||||||||||||||
Equity contracts | Benefits, claims, losses and settlement expenses | (204 | ) | (492 | ) | ||||||||||||||||
Credit contracts | Benefits, claims, losses and settlement expenses | (10 | ) | — | |||||||||||||||||
Foreign currency contracts | Benefits, claims, losses and settlement expenses | (1 | ) | 5 | |||||||||||||||||
Embedded derivatives (1) | Benefits, claims, losses and settlement expenses | (104 | ) | 567 | |||||||||||||||||
Total GMWB and GMAB | (55 | ) | (52 | ) | |||||||||||||||||
Other derivatives: | |||||||||||||||||||||
Interest rate | |||||||||||||||||||||
Macro hedge program | Benefits, claims, losses and settlement expenses | 17 | — | ||||||||||||||||||
Tax hedge | Net investment income | 3 | — | ||||||||||||||||||
Seed money | Net investment income | (1 | ) | — | |||||||||||||||||
Equity | |||||||||||||||||||||
Macro hedge program | Benefits, claims, losses and settlement expenses | (4 | ) | — | |||||||||||||||||
IUL | Interest credited to fixed accounts | 5 | 4 | ||||||||||||||||||
IUL embedded derivatives | Interest credited to fixed accounts | 6 | 3 | ||||||||||||||||||
EIA | Interest credited to fixed accounts | — | 1 | ||||||||||||||||||
EIA embedded derivatives | Interest credited to fixed accounts | — | (1 | ) | |||||||||||||||||
Stock market certificates | Banking and deposit interest expense | 1 | 3 | ||||||||||||||||||
Stock market certificates embedded derivatives | Banking and deposit interest expense | (1 | ) | (3 | ) | ||||||||||||||||
Seed money | Net investment income | (1 | ) | (6 | ) | ||||||||||||||||
Deferred compensation | Distribution expenses | 1 | 1 | ||||||||||||||||||
Commodity | |||||||||||||||||||||
Seed money | Net investment income | (1 | ) | — | |||||||||||||||||
Total other | 25 | 2 | |||||||||||||||||||
Total derivatives | $ | (30 | ) | $ | (50 | ) | |||||||||||||||
(1) The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets. | |||||||||||||||||||||
Cash flow hedges | ' | ||||||||||||||||||||
Derivative instruments | ' | ||||||||||||||||||||
Schedule of gain (loss) on derivative instruments | ' | ||||||||||||||||||||
The following table presents 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: | |||||||||||||||||||||
Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | ||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Interest and debt expense | $ | 1 | $ | 1 | |||||||||||||||||
Net investment income | (1 | ) | (1 | ) | |||||||||||||||||
Total | $ | — | $ | — | |||||||||||||||||
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 Recorded into Income | Amount of Gain Recognized in Income on Derivatives | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Fixed rate debt | Interest and debt expense | $ | 8 | $ | 10 | ||||||||||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||
Information related to amounts reclassified from AOCI | ' | ||||||||||
The following table provides information related to amounts reclassified from accumulated other comprehensive income (“AOCI”): | |||||||||||
AOCI Reclassification | Location of Loss (Gain) Recognized in Income | Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||||
(in millions) | |||||||||||
Net unrealized gains on Available-for-Sale securities | Net investment income | $ | (5 | ) | $ | (1 | ) | ||||
Tax expense | Income tax provision | 2 | — | ||||||||
Net of tax | $ | (3 | ) | $ | (1 | ) | |||||
Losses (gains) on cash flow hedges: | |||||||||||
Interest rate contracts | Interest and debt expense | $ | (1 | ) | $ | (1 | ) | ||||
Swaptions | Net investment income | 1 | 1 | ||||||||
Total before tax | — | — | |||||||||
Tax benefit | Income tax provision | — | — | ||||||||
Net of tax | $ | — | $ | — | |||||||
Earnings_per_Share_Attributabl1
Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in millions, except per share amounts) | ||||||||
Numerator: | ||||||||
Income from continuing operations | $ | 516 | $ | 366 | ||||
Less: Net income attributable to noncontrolling interests | 115 | 30 | ||||||
Income from continuing operations attributable to Ameriprise Financial | 401 | 336 | ||||||
Loss from discontinued operations, net of tax | (1 | ) | (1 | ) | ||||
Net income attributable to Ameriprise Financial | $ | 400 | $ | 335 | ||||
Denominator: | ||||||||
Basic: Weighted-average common shares outstanding | 195.5 | 208.4 | ||||||
Effect of potentially dilutive nonqualified stock options and other share-based awards | 3.6 | 3.9 | ||||||
Diluted: Weighted-average common shares outstanding | 199.1 | 212.3 | ||||||
Earnings per share attributable to Ameriprise Financial, Inc. common shareholders: | ||||||||
Basic: | ||||||||
Income from continuing operations | $ | 2.05 | $ | 1.61 | ||||
Loss from discontinued operations | — | — | ||||||
Net income | $ | 2.05 | $ | 1.61 | ||||
Diluted: | ||||||||
Income from continuing operations | $ | 2.01 | $ | 1.58 | ||||
Loss from discontinued operations | — | — | ||||||
Net income | $ | 2.01 | $ | 1.58 | ||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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: | ||||||||
31-Mar-14 | 31-Dec-13 | |||||||
(in millions) | ||||||||
Advice & Wealth Management | $ | 10,012 | $ | 9,571 | ||||
Asset Management | 7,854 | 7,223 | ||||||
Annuities | 98,079 | 98,354 | ||||||
Protection | 19,858 | 19,605 | ||||||
Corporate & Other | 10,161 | 9,823 | ||||||
Total assets | $ | 145,964 | $ | 144,576 | ||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Operating net revenues: | ||||||||
Advice & Wealth Management | $ | 1,149 | $ | 1,018 | ||||
Asset Management | 807 | 746 | ||||||
Annuities | 636 | 624 | ||||||
Protection | 555 | 537 | ||||||
Corporate & Other | 6 | 4 | ||||||
Eliminations(1) | (341 | ) | (321 | ) | ||||
Total segment operating revenues | 2,812 | 2,608 | ||||||
Net realized gains | 5 | 1 | ||||||
Revenues attributable to CIEs | 177 | 82 | ||||||
Market impact on IUL benefits, net | 2 | — | ||||||
Total net revenues per consolidated statements of operations | $ | 2,996 | $ | 2,691 | ||||
(1) Represents the elimination of intersegment revenues recognized for the three months ended March 31, 2014 and 2013 in each segment as follows: Advice & Wealth Management ($240 and $228, respectively); Asset Management ($11 and $9, respectively); Annuities ($80 and $73, respectively); Protection ($10 and $10, respectively); and Corporate & Other (nil and $1, respectively). | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Operating earnings: | ||||||||
Advice & Wealth Management | $ | 181 | $ | 130 | ||||
Asset Management | 183 | 138 | ||||||
Annuities | 176 | 142 | ||||||
Protection | 59 | 103 | ||||||
Corporate & Other | (55 | ) | (53 | ) | ||||
Total segment operating earnings | 544 | 460 | ||||||
Net realized gains | 5 | 1 | ||||||
Net income attributable to noncontrolling interests | 115 | 30 | ||||||
Market impact on variable annuity guaranteed benefits, net | (15 | ) | (2 | ) | ||||
Market impact on IUL benefits, net | 1 | — | ||||||
Restructuring charges | — | (2 | ) | |||||
Income from continuing operations before income tax provision per consolidated | $ | 650 | $ | 487 | ||||
statements of operations | ||||||||
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2013 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Prior period reclassification adjustment | $28 |
Consolidated_Investment_Entiti2
Consolidated Investment Entities (Details) (USD $) | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | 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 | |
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 | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | ||||
Consolidated Investment Entities: | Consolidated Investment Entities: | Corporate debt securities | Corporate debt securities | Common stocks | Common stocks | Other Investments [Member] | Other Investments [Member] | Syndicated loans | Syndicated loans | Consolidated Investment Entities: | Consolidated Investment Entities: | Corporate debt securities | Corporate debt securities | Common stocks | Common stocks | Other Investments [Member] | Other Investments [Member] | Syndicated loans | Syndicated loans | Consolidated Investment Entities: | Consolidated Investment Entities: | Corporate debt securities | Corporate debt securities | Common stocks | Common stocks | Other Investments [Member] | Other Investments [Member] | Syndicated loans | Syndicated loans | Consolidated Investment Entities: | Consolidated Investment Entities: | Corporate debt securities | Corporate debt securities | Common stocks | Common stocks | Other Investments [Member] | Other Investments [Member] | 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 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments: | ' | ' | ' | $170 | $150 | $0 | $0 | $166 | $147 | $4 | $3 | $0 | $0 | $4,820 | $4,468 | $152 | $200 | $40 | $31 | $33 | $33 | $4,595 | $4,204 | $407 | $384 | $13 | $2 | $10 | $14 | $0 | $0 | $384 | $368 | $5,397 | $5,002 | $165 | $202 | $216 | $192 | $37 | $36 | $4,979 | $4,572 |
Receivables | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 36 | 32 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 36 | 32 | ' | ' | ' | ' | ' | ' | ' | ' |
Other assets | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 13 | ' | ' | ' | ' | ' | ' | ' | ' | 1,993 | 1,936 | ' | ' | ' | ' | ' | ' | ' | ' | 1,995 | 1,949 | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets at fair value | ' | ' | ' | 170 | 150 | ' | ' | ' | ' | ' | ' | ' | ' | 4,858 | 4,513 | ' | ' | ' | ' | ' | ' | ' | ' | 2,400 | 2,320 | ' | ' | ' | ' | ' | ' | ' | ' | 7,428 | 6,983 | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt | ' | 5,225 | 4,804 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 5,225 | 4,804 | ' | ' | ' | ' | ' | ' | ' | ' | 5,225 | 4,804 | ' | ' | ' | ' | ' | ' | ' | ' |
Other liabilities | ' | 238 | 193 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 238 | 193 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 238 | 193 | ' | ' | ' | ' | ' | ' | ' | ' |
Total liabilities at fair value | ' | ' | ' | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | $238 | $193 | ' | ' | ' | ' | ' | ' | ' | ' | $5,225 | $4,804 | ' | ' | ' | ' | ' | ' | ' | ' | $5,463 | $4,997 | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated_Investment_Entiti3
Consolidated Investment Entities (Details 2) (Consolidated Investment Entities, USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | |||
Summary of changes in Level 3 assets held by consolidated investment entities | ' | ' | ||
Transfers between Level 1 and Level 2 | $0 | ' | ||
Corporate debt securities | ' | ' | ||
Summary of changes in Level 3 assets held by consolidated investment entities | ' | ' | ||
Balance, at the beginning of the period | 2,000,000 | 3,000,000 | ||
Total Gains (Losses) Included in Net Income-Assets | 1,000,000 | [1] | 0 | |
Total Gains (Losses) Included in Other Comprehensive loss-Assets | 0 | 0 | ||
Purchases, Net-Assets | 2,000,000 | 0 | ||
Sales, Net-Assets | -2,000,000 | 0 | ||
Issues, Net-Liabilities | 0 | ' | ||
Settlements, Net-Assets | 0 | 0 | ||
Transfers into Level 3 | 10,000,000 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Balance, at the end of the period | 13,000,000 | 3,000,000 | ||
Changes in unrealized gains/ (losses) included in income relating to assets held | 1,000,000 | [1] | 0 | |
Common Stocks | ' | ' | ||
Summary of changes in Level 3 assets held by consolidated investment entities | ' | ' | ||
Balance, at the beginning of the period | 14,000,000 | 14,000,000 | ||
Total Gains (Losses) Included in Net Income-Assets | 2,000,000 | [1] | 0 | |
Total Gains (Losses) Included in Other Comprehensive loss-Assets | 0 | 0 | ||
Purchases, Net-Assets | 0 | 0 | ||
Sales, Net-Assets | 0 | 0 | ||
Issues, Net-Liabilities | 0 | ' | ||
Settlements, Net-Assets | 0 | 0 | ||
Transfers into Level 3 | 6,000,000 | 2,000,000 | ||
Transfers out of Level 3 | -12,000,000 | -8,000,000 | ||
Balance, at the end of the period | 10,000,000 | 8,000,000 | ||
Changes in unrealized gains/ (losses) included in income relating to assets held | 2,000,000 | [1] | 0 | |
Syndicated loans | ' | ' | ||
Summary of changes in Level 3 assets held by consolidated investment entities | ' | ' | ||
Balance, at the beginning of the period | 368,000,000 | 202,000,000 | ||
Total Gains (Losses) Included in Net Income-Assets | 4,000,000 | [1] | 0 | |
Total Gains (Losses) Included in Other Comprehensive loss-Assets | 0 | 0 | ||
Purchases, Net-Assets | 96,000,000 | 76,000,000 | ||
Sales, Net-Assets | 0 | -18,000,000 | ||
Issues, Net-Liabilities | 0 | ' | ||
Settlements, Net-Assets | -12,000,000 | -13,000,000 | ||
Transfers into Level 3 | 146,000,000 | 51,000,000 | ||
Transfers out of Level 3 | -218,000,000 | -93,000,000 | ||
Balance, at the end of the period | 384,000,000 | 205,000,000 | ||
Changes in unrealized gains/ (losses) included in income relating to assets held | 3,000,000 | [1] | 0 | |
Other assets | ' | ' | ||
Summary of changes in Level 3 assets held by consolidated investment entities | ' | ' | ||
Balance, at the beginning of the period | 1,936,000,000 | 1,214,000,000 | ||
Total Gains (Losses) Included in Net Income-Assets | 80,000,000 | [2] | -6,000,000 | [2] |
Total Gains (Losses) Included in Other Comprehensive loss-Assets | 15,000,000 | -77,000,000 | ||
Purchases, Net-Assets | 19,000,000 | 51,000,000 | ||
Sales, Net-Assets | -68,000,000 | -6,000,000 | ||
Issues, Net-Liabilities | 0 | ' | ||
Settlements, Net-Assets | 0 | 0 | ||
Transfers into Level 3 | 11,000,000 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Balance, at the end of the period | 1,993,000,000 | 1,176,000,000 | ||
Changes in unrealized gains/ (losses) included in income relating to assets held | 78,000,000 | [2] | -5,000,000 | [2] |
Debt | ' | ' | ||
Summary of changes in Level 3 assets held by consolidated investment entities | ' | ' | ||
Balance, at the beginning of the period | -4,804,000,000 | -4,450,000,000 | ||
Total Gains (Losses) Included in Net Income-Liabilities | -10,000,000 | [1] | -24,000,000 | [1] |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales | 0 | 0 | ||
Issues, Net-Liabilities | -456,000,000 | -410,000,000 | ||
Settlements, Net-Liabilities | 45,000,000 | 289,000,000 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3 | 0 | 0 | ||
Balance, at the end of the period | -5,225,000,000 | -4,595,000,000 | ||
Changes in unrealized gains/ (losses) included in income relating to liabilities held | -10,000,000 | [1] | -24,000,000 | [1] |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3 | $0 | $0 | ||
[1] | Included in net investment income in the Consolidated Statements of Operations. | |||
[2] | Included in other revenues in the Consolidated Statements of Operations. |
Consolidated_Investment_Entiti4
Consolidated Investment Entities (Details 3) (Consolidated Investment Entities, USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Summary of the significant unobservable inputs | ' | ' |
Debt | $5,225 | $4,804 |
Other assets | Minimum | Discounted cash flow/market comparables | ' | ' |
Summary of the significant unobservable inputs | ' | ' |
Equivalent yield (as a percent) | 4.60% | 4.40% |
Expected rental value (per square foot) | 5 | 5 |
Other assets | Maximum | Discounted cash flow/market comparables | ' | ' |
Summary of the significant unobservable inputs | ' | ' |
Equivalent yield (as a percent) | 11.90% | 12.40% |
Expected rental value (per square foot) | 374 | 373 |
Other assets | Weighted Average | Discounted cash flow/market comparables | ' | ' |
Summary of the significant unobservable inputs | ' | ' |
Equivalent yield (as a percent) | 7.20% | 7.40% |
Expected rental value (per square foot) | 33 | 33 |
Debt | Minimum | Discounted Cash Flow Technique [Member] | ' | ' |
Summary of the significant unobservable inputs | ' | ' |
Fair Value Inputs, Probability of Default | 2.50% | 2.50% |
Discount rate (as a percent) | 1.40% | 1.50% |
Constant prepayment rate (as a percent) | 5.00% | 5.00% |
Loss recovery (as a percent) | 36.40% | 36.40% |
Debt | Maximum | Discounted Cash Flow Technique [Member] | ' | ' |
Summary of the significant unobservable inputs | ' | ' |
Fair Value Inputs, Probability of Default | 2.50% | 2.50% |
Discount rate (as a percent) | 7.50% | 8.30% |
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 Technique [Member] | ' | ' |
Summary of the significant unobservable inputs | ' | ' |
Fair Value Inputs, Probability of Default | 2.50% | 2.50% |
Discount rate (as a percent) | 2.60% | 2.70% |
Constant prepayment rate (as a percent) | 9.80% | 9.80% |
Loss recovery (as a percent) | 62.60% | 62.30% |
Fair Value, Inputs, Level 3 [Member] | Recurring | ' | ' |
Summary of the significant unobservable inputs | ' | ' |
Other assets | 1,993 | 1,936 |
Debt | $5,225 | $4,804 |
Consolidated_Investment_Entiti5
Consolidated Investment Entities (Details 4) (Consolidated Investment Entities, USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
In Millions, unless otherwise specified | Net investment income | Net investment income | ||
Syndicated loans | ' | ' | ' | ' |
Unpaid principal balance | $5,028 | $4,628 | ' | ' |
Excess estimated unpaid principal over fair value | -49 | -56 | ' | ' |
Fair value | 4,979 | 4,572 | ' | ' |
Fair value of loans more than 90 days past due | 27 | 23 | ' | ' |
Fair value of loans in nonaccrual status | 27 | 23 | ' | ' |
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both | 28 | 33 | ' | ' |
Debt: | ' | ' | ' | ' |
Unpaid principal balance | 5,446 | 5,032 | ' | ' |
Excess estimated unpaid principal over fair value | -221 | -228 | ' | ' |
Fair value | 5,225 | 4,804 | ' | ' |
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 | ' | ' | $21 | $21 |
Consolidated_Investment_Entiti6
Consolidated Investment Entities (Details 5) (Consolidated Investment Entities, USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | Debt of Consolidated CDOs Maturing in 2016 to 2025 [Member] | Debt of Consolidated CDOs Maturing in 2016 to 2025 [Member] | Floating rate revolving credit borrowings due 2014 | Floating rate revolving credit borrowings due 2014 | Floating rate revolving credit borrowings due 2015 | Floating rate revolving credit borrowings due 2015 | Floating rate revolving credit borrowings due 2017 | Floating rate revolving credit borrowings due 2017 | Floating rate revolving credit borrowings due 2018 | Floating rate revolving credit borrowings due 2018 | Line of Credit Facility 2019 [Member] | Line of Credit Facility 2019 [Member] | Minimum | Maximum | ||
Debt and stated interest rates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value of debt | $6,147 | $5,736 | $5,225 | $4,804 | $267 | $305 | $98 | $97 | $121 | $120 | $403 | $377 | $33 | $33 | ' | ' |
Weighted Average Interest Rate (as a percent) | ' | ' | 1.10% | 1.00% | 2.60% | 2.60% | 2.40% | 2.40% | 4.60% | 4.50% | 3.60% | 3.50% | 3.00% | 3.00% | ' | ' |
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 | 922 | 932 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of derivative instruments | $7 | $5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective interest rate reflecting the impact of derivative contracts (as a percent) | 4.30% | 4.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments_Details
Investments (Details) (USD $) | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 85.00% | ' | 85.00% | ||
Summary of net investment income | ' | ' | ' | ||
Investment income on fixed maturities | $374 | $401 | ' | ||
Net realized gains (losses) | 5 | 1 | ' | ||
Affordable housing partnerships | -6 | -7 | ' | ||
Other | 24 | 17 | ' | ||
Consolidated investment entities | 74 | 77 | ' | ||
Net investment income | 471 | 489 | ' | ||
Ameriprise Financial | ' | ' | ' | ||
Investments | 35,906 | ' | 35,735 | ||
Summary of net investment income | ' | ' | ' | ||
Amortized Cost | 28,642 | ' | 28,839 | ||
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInvestments | 2,063 | ' | 1,811 | ||
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInvestments | -227 | ' | -340 | ||
Fair Value | 30,478 | ' | 30,310 | ||
Non-Credit OTTI | -21 | [1] | ' | -26 | [1] |
Ameriprise Financial | Corporate debt securities | ' | ' | ' | ||
Summary of net investment income | ' | ' | ' | ||
Amortized Cost | 15,996 | ' | 16,233 | ||
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInvestments | 1,516 | ' | 1,330 | ||
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInvestments | -48 | ' | -97 | ||
Fair Value | 17,464 | ' | 17,466 | ||
Non-Credit OTTI | 3 | [1] | ' | 3 | [1] |
Ameriprise Financial | Residential mortgage backed securities | ' | ' | ' | ||
Summary of net investment income | ' | ' | ' | ||
Amortized Cost | 6,049 | ' | 6,114 | ||
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInvestments | 151 | ' | 147 | ||
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInvestments | -110 | ' | -137 | ||
Fair Value | 6,090 | ' | 6,124 | ||
Non-Credit OTTI | -29 | [1] | ' | -33 | [1] |
Ameriprise Financial | Commercial mortgage backed securities | ' | ' | ' | ||
Summary of net investment income | ' | ' | ' | ||
Amortized Cost | 2,649 | ' | 2,612 | ||
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInvestments | 139 | ' | 141 | ||
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInvestments | -7 | ' | -12 | ||
Fair Value | 2,781 | ' | 2,741 | ||
Non-Credit OTTI | 0 | ' | 0 | ||
Ameriprise Financial | Asset backed securities | ' | ' | ' | ||
Summary of net investment income | ' | ' | ' | ||
Amortized Cost | 1,474 | ' | 1,459 | ||
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInvestments | 54 | ' | 53 | ||
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInvestments | -6 | ' | -8 | ||
Fair Value | 1,522 | ' | 1,504 | ||
Non-Credit OTTI | 0 | ' | 0 | ||
Ameriprise Financial | State and municipal obligations | ' | ' | ' | ||
Summary of net investment income | ' | ' | ' | ||
Amortized Cost | 2,182 | ' | 2,132 | ||
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInvestments | 166 | ' | 106 | ||
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInvestments | -50 | ' | -78 | ||
Fair Value | 2,298 | ' | 2,160 | ||
Non-Credit OTTI | 0 | ' | 0 | ||
Ameriprise Financial | U.S. government and agencies obligations | ' | ' | ' | ||
Summary of net investment income | ' | ' | ' | ||
Amortized Cost | 47 | ' | 47 | ||
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInvestments | 5 | ' | 5 | ||
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInvestments | 0 | ' | 0 | ||
Fair Value | 52 | ' | 52 | ||
Non-Credit OTTI | 0 | ' | 0 | ||
Ameriprise Financial | Foreign government bonds and obligations | ' | ' | ' | ||
Summary of net investment income | ' | ' | ' | ||
Amortized Cost | 238 | ' | 235 | ||
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInvestments | 20 | ' | 18 | ||
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInvestments | -6 | ' | -8 | ||
Fair Value | 252 | ' | 245 | ||
Non-Credit OTTI | 0 | ' | 0 | ||
Ameriprise Financial | Common Stocks | ' | ' | ' | ||
Summary of net investment income | ' | ' | ' | ||
Amortized Cost | 7 | ' | 7 | ||
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInvestments | 12 | ' | 11 | ||
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInvestments | 0 | ' | 0 | ||
Fair Value | 19 | ' | 18 | ||
Non-Credit OTTI | 5 | [1] | ' | 4 | [1] |
Available-for-Sale Securities, at fair value | Ameriprise Financial | ' | ' | ' | ||
Investments | 30,478 | ' | 30,310 | ||
Mortgage Loans | Ameriprise Financial | ' | ' | ' | ||
Investments | 3,487 | ' | 3,510 | ||
Policy and certificate loans | Ameriprise Financial | ' | ' | ' | ||
Investments | 780 | ' | 774 | ||
Other Investments | Ameriprise Financial | ' | ' | ' | ||
Investments | $1,161 | ' | 1,141 | ||
[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 $) | Mar. 31, 2014 | Dec. 31, 2013 |
item | ||
Number of holdings of other than GNMA, FNMA, and FHLMC having greater than 10% of total equity | 0 | ' |
Security Owned and Pledged as Collateral, Fair Value | $2,100,000,000 | $2,300,000,000 |
Fixed maturity securities percentage of total investments | 85.00% | 85.00% |
Ameriprise Financial | ' | ' |
Gnma, Fnma and Fhlmc Mortgage Backed Securities Percentage of Securities Rated Aaa | 46.00% | 45.00% |
Amortized Cost | 28,635,000,000 | 28,832,000,000 |
Fair Value | 30,459,000,000 | 30,292,000,000 |
Percent of Total Fair Value | 100.00% | 100.00% |
Fixed Maturity Investments Rated Internally | 1,300,000,000 | 1,400,000,000 |
AAA | Ameriprise Financial | ' | ' |
Amortized Cost | 7,446,000,000 | 7,562,000,000 |
Fair Value | 7,664,000,000 | 7,746,000,000 |
Percent of Total Fair Value | 25.00% | 25.00% |
AA | Ameriprise Financial | ' | ' |
Amortized Cost | 1,572,000,000 | 1,587,000,000 |
Fair Value | 1,740,000,000 | 1,707,000,000 |
Percent of Total Fair Value | 6.00% | 6.00% |
A | Ameriprise Financial | ' | ' |
Amortized Cost | 6,385,000,000 | 6,381,000,000 |
Fair Value | 6,838,000,000 | 6,738,000,000 |
Percent of Total Fair Value | 22.00% | 22.00% |
BBB | Ameriprise Financial | ' | ' |
Amortized Cost | 11,382,000,000 | 11,427,000,000 |
Fair Value | 12,388,000,000 | 12,272,000,000 |
Percent of Total Fair Value | 41.00% | 41.00% |
Below investment grade | Ameriprise Financial | ' | ' |
Amortized Cost | 1,850,000,000 | 1,875,000,000 |
Fair Value | $1,829,000,000 | $1,829,000,000 |
Percent of Total Fair Value | 6.00% | 6.00% |
Investments_Details_3
Investments (Details 3) (USD $) | 3 Months Ended | |||||||||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Ameriprise Financial | Ameriprise Financial | Corporate debt securities | Corporate debt securities | Residential mortgage backed securities | Residential mortgage backed securities | Commercial mortgage backed securities | Commercial mortgage backed securities | Asset backed securities | Asset backed securities | State and municipal obligations | State and municipal obligations | Foreign government bonds and obligations | Foreign government bonds and obligations | |||
Positions | Positions | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | |||
Positions | Positions | Positions | Positions | Positions | Positions | Positions | Positions | Positions | Positions | Positions | Positions | |||||
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Less than twelve months, Number of positions | ' | ' | 404 | 576 | 134 | 181 | 102 | 128 | 24 | 35 | 36 | 40 | 87 | 169 | 21 | 23 |
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Fair value | ' | ' | $4,722 | $6,712 | $1,834 | $2,817 | $1,874 | $2,393 | $265 | $426 | $434 | $531 | $250 | $468 | $65 | $77 |
Available for Sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Aggregate Losses, Accumulated in Investments | ' | ' | -101 | -210 | -35 | -83 | -39 | -66 | -5 | -10 | -4 | -7 | -12 | -36 | -6 | -8 |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Twelve months or longer, Number of positions | ' | ' | 170 | 147 | 13 | 12 | 127 | 113 | 2 | 4 | 5 | 4 | 22 | 14 | 1 | 0 |
Available-for-sale securities, Continuous unrealized loss position, Twelve months or longer, Fair value | ' | ' | 1,332 | 1,015 | 232 | 181 | 884 | 663 | 21 | 22 | 61 | 32 | 133 | 117 | 1 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Aggregate Losses, Accumulated in Investments | ' | ' | -126 | -130 | -13 | -14 | -71 | -71 | -2 | -2 | -2 | -1 | -38 | -42 | 0 | 0 |
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Number of positions | ' | ' | 574 | 723 | 147 | 193 | 229 | 241 | 26 | 39 | 41 | 44 | 109 | 183 | 22 | 23 |
Available-for-sale securities, Continuous unrealized loss position, Fair value | ' | ' | 6,054 | 7,727 | 2,066 | 2,998 | 2,758 | 3,056 | 286 | 448 | 495 | 563 | 383 | 585 | 66 | 77 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss, Accumulated in Investments | ' | ' | -227 | -340 | -48 | -97 | -110 | -137 | -7 | -12 | -6 | -8 | -50 | -78 | -6 | -8 |
Balance of Credit Losses Impairment Recognized in Other Comprehensive Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | 147 | 176 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit losses for which an other-than-temporary impairment was previously recognized | 0 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reductions for securities sold during the period (realized) | 0 | -13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance | $147 | $165 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments_Details_4
Investments (Details 4) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Accumulated other comprehensive income (losses), net unrealized securities gains (losses) on Available-for-Sale securities | ' | ' | ||
Net unrealized securities gains | $239 | ($141) | ||
Reclassification of net securities gains included in net income | -3 | -1 | ||
Impact on deferred acquisition costs, deferred sales inducement costs, benefit reserves and reinsurance recoverables | -91 | 64 | ||
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 | 1,016 | 2,017 | ||
Net unrealized securities gains | 370 | [1] | -216 | [1] |
Reclassification of net securities gains included in net income | -5 | -1 | ||
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables | -140 | 98 | ||
Balance, at the end of the period | 1,241 | 1,898 | ||
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 | -361 | -705 | ||
Net unrealized securities gains | -131 | [1] | 75 | [1] |
Reclassification of net securities gains included in net income | 2 | 0 | ||
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables | 49 | -34 | ||
Balance, at the end of the period | -441 | -664 | ||
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 | 655 | 1,312 | ||
Net unrealized securities gains | 239 | [1] | -141 | [1] |
Reclassification of net securities gains included in net income | -3 | -1 | ||
Impact on deferred acquisition costs, deferred sales inducement costs, benefit reserves and reinsurance recoverables | -91 | 64 | ||
Balance, at the end of the period | 800 | [2] | 1,234 | [2] |
Noncredit related impairments on securities and net unrealized securities losses on previously impaired securities, included in Accumulated Other Comprehensive Income | $1 | $11 | ||
[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 $1 million and $11 million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at MarchB 31, 2014 and 2013, respectively. |
Investments_Details_5
Investments (Details 5) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Available-for-sale Securities, Net Realized Gain (Loss) [Abstract] | ' | ' | ' |
Other-than-temporary impairments | ($1) | ($3) | ' |
Ameriprise Financial | ' | ' | ' |
Available-for-sale Securities, Net Realized Gain (Loss) [Abstract] | ' | ' | ' |
Gross realized gains | 7 | 4 | ' |
Gross realized losses | -1 | 0 | ' |
Other-than-temporary impairments | -1 | -3 | ' |
Total | 5 | 1 | ' |
Available-for-sale Securities, Contractual Maturity [Abstract] | ' | ' | ' |
Amortized cost, debt maturities, without single maturity date | 28,642 | ' | ' |
Amortized Cost | 28,642 | ' | 28,839 |
Fair value, debt maturities, without single maturity date | 30,478 | ' | ' |
Fair Value | 30,478 | ' | 30,310 |
Residential mortgage backed securities | Ameriprise Financial | ' | ' | ' |
Available-for-sale Securities, Contractual Maturity [Abstract] | ' | ' | ' |
Amortized cost, debt maturities, without single maturity date | 6,049 | ' | ' |
Amortized Cost | 6,049 | ' | 6,114 |
Fair value, debt maturities, without single maturity date | 6,090 | ' | ' |
Fair Value | 6,090 | ' | 6,124 |
Commercial mortgage backed securities | Ameriprise Financial | ' | ' | ' |
Available-for-sale Securities, Contractual Maturity [Abstract] | ' | ' | ' |
Amortized cost, debt maturities, without single maturity date | 2,649 | ' | ' |
Amortized Cost | 2,649 | ' | 2,612 |
Fair value, debt maturities, without single maturity date | 2,781 | ' | ' |
Fair Value | 2,781 | ' | 2,741 |
Asset backed securities | Ameriprise Financial | ' | ' | ' |
Available-for-sale Securities, Contractual Maturity [Abstract] | ' | ' | ' |
Amortized cost, debt maturities, without single maturity date | 1,474 | ' | ' |
Amortized Cost | 1,474 | ' | 1,459 |
Fair value, debt maturities, without single maturity date | 1,522 | ' | ' |
Fair Value | 1,522 | ' | 1,504 |
Common Stocks | Ameriprise Financial | ' | ' | ' |
Available-for-sale Securities, Contractual Maturity [Abstract] | ' | ' | ' |
Amortized cost, debt maturities, without single maturity date | 7 | ' | ' |
Amortized Cost | 7 | ' | 7 |
Fair value, debt maturities, without single maturity date | 19 | ' | ' |
Fair Value | 19 | ' | 18 |
Available-for-Sale Securities, at fair value | Ameriprise Financial | ' | ' | ' |
Available-for-sale Securities, Contractual Maturity [Abstract] | ' | ' | ' |
Amortized cost, due within one year | 1,525 | ' | ' |
Amortized cost, due after one year through five years | 6,536 | ' | ' |
Amortized cost, due after five years through 10 years | 5,678 | ' | ' |
Amortized cost, due after 10 years | 4,724 | ' | ' |
Amortized cost, debt maturities, single maturity date | 18,463 | ' | ' |
Fair value, due within one year | 1,549 | ' | ' |
Fair value, due after one year through five years | 7,069 | ' | ' |
Fair value, due after five years through 10 years | 5,998 | ' | ' |
Fair value, due after 10 years | 5,450 | ' | ' |
Fair value, debt maturities, single maturity date | $20,066 | ' | ' |
Financing_Receivables_Details
Financing Receivables (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
loan | loan | ||
Financing Receivable Allowance for Credit Losses | ' | ' | ' |
Financing Receivable, Modifications, Number of Contracts | 5 | 5 | ' |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $9,000,000 | ' | ' |
Loans and Leases Receivable, Impaired, Commitment to Lend | 0 | ' | ' |
Rollforward of the allowance for loan losses | ' | ' | ' |
Allowance for loan losses, balance at the beginning of the period | 37,000,000 | 44,000,000 | ' |
Charge-offs | -3,000,000 | -1,000,000 | ' |
Allowance for loan losses, balance at the end of the period | 34,000,000 | 43,000,000 | ' |
Individually evaluated for impairment | 7,000,000 | 8,000,000 | ' |
Collectively evaluated for impairment | 27,000,000 | 35,000,000 | ' |
Individually evaluated for impairment | 43,000,000 | ' | 58,000,000 |
Collectively evaluated for impairment | 3,914,000,000 | ' | 3,883,000,000 |
Financing receivables | 3,957,000,000 | ' | 3,941,000,000 |
Financing receivables ending balance: Individually evaluated for impairment with no related allowance for loan losses | 18,000,000 | ' | 21,000,000 |
Nonperforming loans | 10,000,000 | ' | 22,000,000 |
Commercial Mortgage Loans | ' | ' | ' |
Financing Receivable Allowance for Credit Losses | ' | ' | ' |
Financing Receivable, Modifications, Number of Contracts | 2 | 0 | ' |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 8,000,000 | 0 | ' |
Rollforward of the allowance for loan losses | ' | ' | ' |
Allowance for loan losses, balance at the beginning of the period | 26,000,000 | 29,000,000 | ' |
Charge-offs | -1,000,000 | ' | ' |
Allowance for loan losses, balance at the end of the period | 25,000,000 | 29,000,000 | ' |
Individually evaluated for impairment | 6,000,000 | 7,000,000 | ' |
Collectively evaluated for impairment | 19,000,000 | 22,000,000 | ' |
Individually evaluated for impairment | 32,000,000 | ' | 42,000,000 |
Collectively evaluated for impairment | 2,663,000,000 | ' | 2,640,000,000 |
Financing receivables | 2,695,000,000 | ' | 2,682,000,000 |
Syndicated loans | ' | ' | ' |
Financing Receivable Allowance for Credit Losses | ' | ' | ' |
Financing Receivable, Modifications, Number of Contracts | 1 | 0 | ' |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 1,000,000 | 0 | ' |
Rollforward of the allowance for loan losses | ' | ' | ' |
Allowance for loan losses, balance at the beginning of the period | 6,000,000 | 7,000,000 | ' |
Charge-offs | -2,000,000 | ' | ' |
Allowance for loan losses, balance at the end of the period | 4,000,000 | 7,000,000 | ' |
Individually evaluated for impairment | 0 | 0 | ' |
Collectively evaluated for impairment | 4,000,000 | 7,000,000 | ' |
Individually evaluated for impairment | 4,000,000 | ' | 9,000,000 |
Collectively evaluated for impairment | 418,000,000 | ' | 370,000,000 |
Financing receivables | 422,000,000 | ' | 379,000,000 |
Loans purchased | 65,000,000 | 22,000,000 | ' |
Loans sold | 4,000,000 | 1,000,000 | ' |
Consumer Loans | ' | ' | ' |
Financing Receivable Allowance for Credit Losses | ' | ' | ' |
Financing Receivable, Modifications, Number of Contracts | 2 | 5 | ' |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | 0 | ' |
Rollforward of the allowance for loan losses | ' | ' | ' |
Allowance for loan losses, balance at the beginning of the period | 5,000,000 | 8,000,000 | ' |
Charge-offs | ' | -1,000,000 | ' |
Allowance for loan losses, balance at the end of the period | 5,000,000 | 7,000,000 | ' |
Individually evaluated for impairment | 1,000,000 | 1,000,000 | ' |
Collectively evaluated for impairment | 4,000,000 | 6,000,000 | ' |
Individually evaluated for impairment | 7,000,000 | ' | 7,000,000 |
Collectively evaluated for impairment | 833,000,000 | ' | 873,000,000 |
Financing receivables | 840,000,000 | ' | 880,000,000 |
Percentage of residential mortgage loans and credit cards and other consumer loans | 6.00% | ' | 5.00% |
Percentage of residential mortgage loans with Loan-To-Value ratios | 2.00% | ' | 2.00% |
FICO score | 640 | ' | 640 |
Specified LTV ratios | 90.00% | ' | 90.00% |
Percentage of total loan portfolio represented by state of California | 37.00% | ' | 38.00% |
Nonperforming syndicated loans | ' | ' | ' |
Rollforward of the allowance for loan losses | ' | ' | ' |
Nonperforming loans | $1,000,000 | ' | $4,000,000 |
Financing_Receivables_Details_
Financing Receivables (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||
Commercial mortgage loans | ' | ' | ' | ' |
Percent of commercial mortgage loans with highest risk rating | 1.00% | 2.00% | ' | ' |
Total loans | $3,957 | $3,941 | ' | ' |
Less: allowance for loan losses | 34 | 37 | 43 | 44 |
Commercial Mortgage Loans | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 2,695 | 2,682 | ' | ' |
Less: allowance for loan losses | 25 | 26 | ' | ' |
Net commercial mortgage loans | 2,670 | 2,656 | ' | ' |
Percentage of gross commercial mortgage loans | 100.00% | 100.00% | ' | ' |
Commercial Mortgage Loans | Apartments | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 477 | 488 | ' | ' |
Percentage of gross commercial mortgage loans | 18.00% | 18.00% | ' | ' |
Commercial Mortgage Loans | Hotel | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 31 | 33 | ' | ' |
Percentage of gross commercial mortgage loans | 1.00% | 1.00% | ' | ' |
Commercial Mortgage Loans | Industrial | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 471 | 454 | ' | ' |
Percentage of gross commercial mortgage loans | 17.00% | 17.00% | ' | ' |
Commercial Mortgage Loans | Mixed Use | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 46 | 36 | ' | ' |
Percentage of gross commercial mortgage loans | 2.00% | 1.00% | ' | ' |
Commercial Mortgage Loans | Office | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 559 | 559 | ' | ' |
Percentage of gross commercial mortgage loans | 21.00% | 21.00% | ' | ' |
Commercial Mortgage Loans | Retail | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 952 | 951 | ' | ' |
Percentage of gross commercial mortgage loans | 35.00% | 36.00% | ' | ' |
Commercial Mortgage Loans | Other | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 159 | 161 | ' | ' |
Percentage of gross commercial mortgage loans | 6.00% | 6.00% | ' | ' |
Commercial Mortgage Loans | East North Central | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 244 | 251 | ' | ' |
Percentage of gross commercial mortgage loans | 9.00% | 9.00% | ' | ' |
Commercial Mortgage Loans | East South Central | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 68 | 71 | ' | ' |
Percentage of gross commercial mortgage loans | 3.00% | 3.00% | ' | ' |
Commercial Mortgage Loans | Middle Atlantic | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 214 | 211 | ' | ' |
Percentage of gross commercial mortgage loans | 8.00% | 8.00% | ' | ' |
Commercial Mortgage Loans | Mountain | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 255 | 257 | ' | ' |
Percentage of gross commercial mortgage loans | 9.00% | 10.00% | ' | ' |
Commercial Mortgage Loans | New England | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 146 | 149 | ' | ' |
Percentage of gross commercial mortgage loans | 5.00% | 5.00% | ' | ' |
Commercial Mortgage Loans | Pacific | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 674 | 661 | ' | ' |
Percentage of gross commercial mortgage loans | 25.00% | 25.00% | ' | ' |
Commercial Mortgage Loans | South Atlantic | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 723 | 713 | ' | ' |
Percentage of gross commercial mortgage loans | 27.00% | 26.00% | ' | ' |
Commercial Mortgage Loans | West North Central | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | 210 | 207 | ' | ' |
Percentage of gross commercial mortgage loans | 8.00% | 8.00% | ' | ' |
Commercial Mortgage Loans | West South Central | ' | ' | ' | ' |
Commercial mortgage loans | ' | ' | ' | ' |
Total loans | $161 | $162 | ' | ' |
Percentage of gross commercial mortgage loans | 6.00% | 6.00% | ' | ' |
Deferred_Acquisition_Costs_and2
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Details) (Ameriprise Financial, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Ameriprise Financial | ' | ' |
Balances of and changes in DAC | ' | ' |
Balance, at the beginning of the period | $2,663 | $2,399 |
Capitalization of acquisition costs | 79 | 78 |
Amortization | -87 | -75 |
Impact of change in net unrealized securities losses (gains) | -25 | 33 |
Balance, at the end of the period | 2,630 | 2,435 |
Balances of and changes in DSIC, included in other assets | ' | ' |
Balance, at the beginning of the period | 409 | 404 |
Capitalization of sales inducement costs | 1 | 2 |
Amortization | -13 | -12 |
Impact of change in net unrealized securities losses (gains) | 5 | -3 |
Balance, at the end of the period | $392 | $397 |
Policyholder_Account_Balances_2
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Policyholder Funds | $22,432 | $22,735 |
Liability for Future Policy Benefits | 6,530 | 6,258 |
Liability for Claims and Claims Adjustment Expense | 663 | 627 |
Policyholder Account Balances, Future Policy Benefits and Claims | 29,625 | 29,620 |
Ameriprise Financial | ' | ' |
Policyholder Account Balances, Future Policy Benefits and Claims | 29,625 | 29,620 |
Fixed annuities | ' | ' |
Policyholder Funds | 13,511 | 13,826 |
Variable annuity fixed sub-accounts | ' | ' |
Policyholder Funds | 4,892 | 4,926 |
Variable Universal Life and Universal Life Insurance [Member] | ' | ' |
Policyholder Funds | 2,798 | 2,790 |
IUL | ' | ' |
Policyholder Funds | 363 | 315 |
Other Life Insurance [Member] | ' | ' |
Policyholder Funds | 868 | 878 |
Variable annuity GMWB | ' | ' |
Liability for Future Policy Benefits | -267 | -383 |
Variable annuity GMAB | ' | ' |
Liability for Future Policy Benefits | -69 | -62 |
Other annuity liabilities [Member] | ' | ' |
Liability for Future Policy Benefits | 103 | 76 |
Fixed annuities life contingent liabilities [Member] | ' | ' |
Liability for Future Policy Benefits | 1,517 | 1,523 |
Equity Indexed Annuity Member [Member] | ' | ' |
Liability for Future Policy Benefits | 28 | 29 |
Life Disability Income and Long Term Care Insurance [Member] | ' | ' |
Liability for Future Policy Benefits | 4,845 | 4,739 |
Variable Universal Life and Universal Life Insurance Additional Liabilities [Member] | ' | ' |
Liability for Future Policy Benefits | $373 | $336 |
Policyholder_Account_Balances_3
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Separate Account Liabilities | ' | ' |
Variable annuity | $71,072 | $70,687 |
VUL insurance | 6,918 | 6,885 |
Other insurance | 43 | 44 |
Threadneedle investment liabilities | 3,839 | 3,607 |
Total | 81,872 | 81,223 |
Ameriprise Financial | ' | ' |
Separate Account Liabilities | ' | ' |
Total | $81,872 | $81,223 |
Variable_Annuity_and_Insurance2
Variable Annuity and Insurance Guarantees (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | ||
GMDB | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Total contract value | $74,706 | [1] | $74,308 | [1] |
Contract value in separate accounts | 69,866 | [1] | 69,435 | [1] |
Net amount at risk | 136 | [1] | 145 | [1] |
Weighted average attained age | '64 years | [1] | '64 years | [1] |
GMDB | Return of premium | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Total contract value | 53,368 | [1] | 52,616 | [1] |
Contract value in separate accounts | 51,554 | [1] | 50,790 | [1] |
Net amount at risk | 26 | [1] | 28 | [1] |
Weighted average attained age | '64 years | [1] | '64 years | [1] |
GMDB | Guaranteed Minimum Death Benefit Five or Six Year Reset [Member] | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Total contract value | 10,938 | [1] | 11,220 | [1] |
Contract value in separate accounts | 8,392 | [1] | 8,663 | [1] |
Net amount at risk | 36 | [1] | 42 | [1] |
Weighted average attained age | '64 years | [1] | '64 years | [1] |
GMDB | One-year ratchet | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Total contract value | 7,608 | [1] | 7,676 | [1] |
Contract value in separate accounts | 7,203 | [1] | 7,261 | [1] |
Net amount at risk | 36 | [1] | 38 | [1] |
Weighted average attained age | '66 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 | 1,790 | [1] | 1,781 | [1] |
Contract value in separate accounts | 1,734 | [1] | 1,725 | [1] |
Net amount at risk | 1 | [1] | 1 | [1] |
Weighted average attained age | '62 years | [1] | '62 years | [1] |
GMDB | Other | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Total contract value | 1,002 | [1] | 1,015 | [1] |
Contract value in separate accounts | 983 | [1] | 996 | [1] |
Net amount at risk | 37 | [1] | 36 | [1] |
Weighted average attained age | '69 years | [1] | '69 years | [1] |
GGU death benefit | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Total contract value | 1,051 | [1] | 1,052 | [1] |
Contract value in separate accounts | 999 | [1] | 998 | [1] |
Net amount at risk | 121 | [1] | 121 | [1] |
Weighted average attained age | '66 years | [1] | '64 years | [1] |
GMIB | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Total contract value | 396 | [1] | 413 | [1] |
Contract value in separate accounts | 372 | [1] | 389 | [1] |
Net amount at risk | 8 | [1] | 8 | [1] |
Weighted average attained age | '66 years | [1] | '66 years | [1] |
Variable annuity guaranteed minimum withdrawal benefits (GMWB) | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Total contract value | 38,685 | [1] | 38,005 | [1] |
Contract value in separate accounts | 38,545 | [1] | 37,851 | [1] |
Net amount at risk | 93 | [1] | 78 | [1] |
Weighted average attained age | '65 years | [1] | '64 years | [1] |
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 | 3,864 | [1] | 3,936 | [1] |
Contract value in separate accounts | 3,850 | [1] | 3,921 | [1] |
Net amount at risk | 1 | [1] | 1 | [1] |
Weighted average attained age | '67 years | [1] | '67 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 | 34,821 | [1] | 34,069 | [1] |
Contract value in separate accounts | 34,695 | [1] | 33,930 | [1] |
Net amount at risk | 92 | [1] | 77 | [1] |
Weighted average attained age | '65 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 | ' | ' | ||
Total contract value | 4,201 | [1] | 4,194 | [1] |
Contract value in separate accounts | 4,190 | [1] | 4,181 | [1] |
Net amount at risk | 1 | [1] | 2 | [1] |
Weighted average attained age | '58 years | [1] | '58 years | [1] |
UL Secondary Guarantees [Member] | ' | ' | ||
Information related to variable annuity guarantees for which the Company has established additional liabilities | ' | ' | ||
Net amount at risk | $5,749 | $5,674 | ||
Weighted average attained age | '62 years | '62 years | ||
[1] | Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table. |
Variable_Annuity_and_Insurance3
Variable Annuity and Insurance Guarantees Variable Annuity and Insurance Guarantees (Details 2) (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
GMDB and GGU | ' | ' | ||
Changes in additional liabilities for variable annuity and insurance guarantees | ' | ' | ||
Balance, at the beginning of the period | $4 | $4 | ||
Incurred claims | 1 | 1 | ||
Paid claims | -1 | -1 | ||
Balance, at the end of the period | 4 | 4 | ||
GMIB | ' | ' | ||
Changes in additional liabilities for variable annuity and insurance guarantees | ' | ' | ||
Balance, at the beginning of the period | 6 | 9 | ||
Incurred claims | ' | ' | ||
Paid claims | ' | ' | ||
Balance, at the end of the period | 6 | 9 | ||
Variable annuity guaranteed minimum withdrawal benefits (GMWB) | ' | ' | ||
Changes in additional liabilities for variable annuity and insurance guarantees | ' | ' | ||
Balance, at the beginning of the period | -383 | 799 | ||
Incurred claims | 116 | [1] | -480 | [1] |
Paid claims | ' | ' | ||
Balance, at the end of the period | -267 | 319 | ||
Variable annuity guaranteed minimum accumulation benefits (GMAB) | ' | ' | ||
Changes in additional liabilities for variable annuity and insurance guarantees | ' | ' | ||
Balance, at the beginning of the period | -62 | 103 | ||
Incurred claims | -7 | [1] | -80 | [1] |
Paid claims | ' | ' | ||
Balance, at the end of the period | -69 | 23 | ||
UL | ' | ' | ||
Changes in additional liabilities for variable annuity and insurance guarantees | ' | ' | ||
Balance, at the beginning of the period | 206 | 155 | ||
Incurred claims | 11 | 17 | ||
Paid claims | 4 | -3 | ||
Balance, at the end of the period | $221 | $169 | ||
[1] | The incurred claims for GMWB and GMAB represent the total change in the liabilities (contra liabilities). |
Variable_Annuity_and_Insurance4
Variable Annuity and Insurance Guarantees (Details 3) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
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 | $69,875 | $69,478 |
Equity | ' | ' |
Distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: | ' | ' |
Total mutual funds | 39,742 | 39,195 |
Bond | ' | ' |
Distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: | ' | ' |
Total mutual funds | 25,965 | 26,519 |
Other | ' | ' |
Distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: | ' | ' |
Total mutual funds | $4,168 | $3,764 |
Debt_Details
Debt (Details) (Ameriprise Financial, USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Debt and stated interest rates | ' | ' | ||
Total long-term debt | $2,719 | $2,720 | ||
Short-term borrowings | 300 | 500 | ||
Total Outstanding Balance of Debt | 3,019 | 3,220 | ||
Federal Home Loan Bank (FHLB) advances | ' | ' | ||
Debt and stated interest rates | ' | ' | ||
Short-term borrowings | 250 | 450 | ||
Short-term Borrowings, Stated Interest Rate (as a percent) | 0.30% | 0.30% | ||
Repurchase agreements | ' | ' | ||
Debt and stated interest rates | ' | ' | ||
Short-term borrowings | 50 | 50 | ||
Short-term Borrowings, Stated Interest Rate (as a percent) | 0.30% | 0.30% | ||
Senior notes due 2015 | ' | ' | ||
Debt and stated interest rates | ' | ' | ||
Total long-term debt | 364 | [1] | 366 | [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] | 327 | [1] |
Stated Interest Rate (as a percent) | 7.30% | 7.30% | ||
Senior notes due 2020 | ' | ' | ||
Debt and stated interest rates | ' | ' | ||
Total long-term debt | 784 | [1] | 783 | [1] |
Stated Interest Rate (as a percent) | 5.30% | 5.30% | ||
Senior notes 2023 | ' | ' | ||
Debt and stated interest rates | ' | ' | ||
Total long-term debt | 750 | 750 | ||
Stated Interest Rate (as a percent) | 4.00% | 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 12 for information on the Companybs fair value hedges. |
Debt_Details_2
Debt (Details 2) (Ameriprise Financial, USD $) | Mar. 31, 2014 | Nov. 22, 2011 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Repurchase agreements | Repurchase agreements | Federal Home Loan Bank (FHLB) advances | Federal Home Loan Bank (FHLB) advances | |||
Debt and stated interest rates | ' | ' | ' | ' | ' | ' |
Credit facility, current borrowing capacity | ' | $500,000,000 | ' | ' | ' | ' |
Credit facility, maximum borrowing capacity | ' | 750,000,000 | ' | ' | ' | ' |
Outstanding letters of credit issued against credit facility | 2,000,000 | ' | ' | ' | ' | ' |
Securities pledged as collateral | ' | ' | $51,000,000 | $52,000,000 | $506,000,000 | $574,000,000 |
Fair_Values_of_Assets_and_Liab2
Fair Values of Assets and Liabilities (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | ||
Liabilities: | ' | ' | ||
Cumulative decrease to the embedded derivative liability | $169 | $150 | ||
Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 30,478 | 30,310 | ||
Separate account assets | 81,872 | 81,223 | ||
Recurring | Level 1 | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Cash equivalents | 40 | 12 | ||
Total Available-for-Sale securities | 22 | 22 | ||
Trading securities | 2 | 3 | ||
Total other assets | 309 | 267 | ||
Total assets at fair value | 373 | 304 | ||
Liabilities: | ' | ' | ||
Total other liabilities | 554 | 550 | ||
Total liabilities at fair value | 554 | 550 | ||
Recurring | Level 1 | Equity derivatives contracts | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total other assets | 306 | 265 | ||
Liabilities: | ' | ' | ||
Total other liabilities | 552 | 550 | ||
Recurring | Level 1 | Foreign currency derivative contract | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total other assets | 3 | 2 | ||
Liabilities: | ' | ' | ||
Total other liabilities | 2 | ' | ||
Recurring | Level 1 | Other | Ameriprise Financial | ' | ' | ||
Liabilities: | ' | ' | ||
Total other liabilities | ' | ' | ||
Recurring | Level 1 | U.S. government and agencies obligations | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 17 | 17 | ||
Recurring | Level 1 | Common stocks | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 5 | 5 | ||
Recurring | Level 2 | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Cash equivalents | 1,941 | 1,841 | ||
Total Available-for-Sale securities | 28,516 | 28,165 | ||
Trading securities | 36 | 32 | ||
Separate account assets | 81,872 | 81,223 | ||
Total other assets | 2,879 | 3,151 | ||
Total assets at fair value | 115,244 | 114,412 | ||
Liabilities: | ' | ' | ||
Policyholder Account Balances, Future Policy Benefits and Claims, Fair Value Disclosure | 5 | 5 | ||
Customer deposits | 6 | 7 | ||
Total other liabilities | 3,858 | 4,270 | ||
Total liabilities at fair value | 3,869 | 4,282 | ||
Recurring | Level 2 | Interest rate derivatives | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total other assets | 1,545 | 1,570 | ||
Liabilities: | ' | ' | ||
Total other liabilities | 1,442 | 1,693 | ||
Recurring | Level 2 | Equity derivatives contracts | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total other assets | 1,330 | 1,576 | ||
Liabilities: | ' | ' | ||
Total other liabilities | 2,399 | 2,565 | ||
Recurring | Level 2 | Credit derivative contract | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total other assets | 1 | 3 | ||
Recurring | Level 2 | Foreign currency derivative contract | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total other assets | 3 | 2 | ||
Recurring | Level 2 | EIA embedded derivatives | Ameriprise Financial | ' | ' | ||
Liabilities: | ' | ' | ||
Policyholder Account Balances, Future Policy Benefits and Claims, Fair Value Disclosure | 5 | 5 | ||
Recurring | Level 2 | Other | Ameriprise Financial | ' | ' | ||
Liabilities: | ' | ' | ||
Total other liabilities | 17 | 12 | ||
Recurring | Level 2 | Corporate debt securities | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 15,898 | 15,826 | ||
Recurring | Level 2 | Residential mortgage backed securities | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 6,003 | 5,937 | ||
Recurring | Level 2 | Commercial mortgage backed securities | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 2,706 | 2,711 | ||
Recurring | Level 2 | Asset backed securities | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 1,316 | 1,244 | ||
Recurring | Level 2 | State and municipal obligations | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 2,298 | 2,160 | ||
Recurring | Level 2 | U.S. government and agencies obligations | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 35 | 35 | ||
Recurring | Level 2 | Foreign government bonds and obligations | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 252 | 245 | ||
Recurring | Level 2 | Common stocks | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 8 | 7 | ||
Recurring | Fair Value, Inputs, Level 3 [Member] | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 1,940 | 2,123 | ||
Trading securities | 2 | 2 | ||
Total assets at fair value | 1,942 | 2,125 | ||
Liabilities: | ' | ' | ||
Policyholder Account Balances, Future Policy Benefits and Claims, Fair Value Disclosure | -317 | -450 | ||
Total liabilities at fair value | -317 | -450 | ||
Recurring | Fair Value, Inputs, Level 3 [Member] | IUL embedded derivatives | Ameriprise Financial | ' | ' | ||
Liabilities: | ' | ' | ||
Policyholder Account Balances, Future Policy Benefits and Claims, Fair Value Disclosure | 154 | 125 | ||
Recurring | Fair Value, Inputs, Level 3 [Member] | GMWB and GMAB Embedded Derivatives [Member] | Ameriprise Financial | ' | ' | ||
Liabilities: | ' | ' | ||
Policyholder Account Balances, Future Policy Benefits and Claims, Fair Value Disclosure | -471 | -575 | [1] | |
Recurring | Fair Value, Inputs, Level 3 [Member] | Corporate debt securities | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 1,566 | 1,640 | ||
Recurring | Fair Value, Inputs, Level 3 [Member] | Residential mortgage backed securities | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 87 | 187 | ||
Recurring | Fair Value, Inputs, Level 3 [Member] | Commercial mortgage backed securities | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 75 | 30 | ||
Recurring | Fair Value, Inputs, Level 3 [Member] | Asset backed securities | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 206 | 260 | ||
Recurring | Fair Value, Inputs, Level 3 [Member] | Common stocks | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 6 | 6 | ||
Recurring | Total | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Cash equivalents | 1,981 | 1,853 | ||
Total Available-for-Sale securities | 30,478 | 30,310 | ||
Trading securities | 40 | 37 | ||
Separate account assets | 81,872 | 81,223 | ||
Total other assets | 3,188 | 3,418 | ||
Total assets at fair value | 117,559 | 116,841 | ||
Liabilities: | ' | ' | ||
Policyholder Account Balances, Future Policy Benefits and Claims, Fair Value Disclosure | -312 | [2] | -445 | [3] |
Customer deposits | 6 | 7 | ||
Total other liabilities | 4,412 | 4,820 | ||
Total liabilities at fair value | 4,106 | 4,382 | ||
Recurring | Total | Interest rate derivatives | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total other assets | 1,545 | 1,570 | ||
Liabilities: | ' | ' | ||
Total other liabilities | 1,442 | 1,693 | ||
Recurring | Total | Equity derivatives contracts | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total other assets | 1,636 | 1,841 | ||
Liabilities: | ' | ' | ||
Total other liabilities | 2,951 | 3,115 | ||
Recurring | Total | Credit derivative contract | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total other assets | 1 | 3 | ||
Recurring | Total | Foreign currency derivative contract | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total other assets | 6 | 4 | ||
Liabilities: | ' | ' | ||
Total other liabilities | 2 | ' | ||
Recurring | Total | EIA embedded derivatives | Ameriprise Financial | ' | ' | ||
Liabilities: | ' | ' | ||
Policyholder Account Balances, Future Policy Benefits and Claims, Fair Value Disclosure | 5 | 5 | ||
Recurring | Total | IUL embedded derivatives | Ameriprise Financial | ' | ' | ||
Liabilities: | ' | ' | ||
Policyholder Account Balances, Future Policy Benefits and Claims, Fair Value Disclosure | 154 | 125 | ||
Recurring | Total | GMWB and GMAB Embedded Derivatives [Member] | Ameriprise Financial | ' | ' | ||
Liabilities: | ' | ' | ||
Policyholder Account Balances, Future Policy Benefits and Claims, Fair Value Disclosure | -471 | [4] | -575 | [1] |
Recurring | Total | Other | Ameriprise Financial | ' | ' | ||
Liabilities: | ' | ' | ||
Total other liabilities | 17 | 12 | ||
Recurring | Total | Corporate debt securities | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 17,464 | 17,466 | ||
Recurring | Total | Residential mortgage backed securities | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 6,090 | 6,124 | ||
Recurring | Total | Commercial mortgage backed securities | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 2,781 | 2,741 | ||
Recurring | Total | Asset backed securities | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 1,522 | 1,504 | ||
Recurring | Total | State and municipal obligations | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 2,298 | 2,160 | ||
Recurring | Total | U.S. government and agencies obligations | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 52 | 52 | ||
Recurring | Total | Foreign government bonds and obligations | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | 252 | 245 | ||
Recurring | Total | Common stocks | Ameriprise Financial | ' | ' | ||
Assets | ' | ' | ||
Total Available-for-Sale securities | $19 | $18 | ||
[1] | 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 contraB liability. | |||
[2] | The Companybs adjustment for nonperformance risk resulted in a $169 million cumulative increase to the embedded derivatives. | |||
[3] | The Companybs adjustment for nonperformance risk resulted in a $150 million cumulative increase to the embedded derivatives. | |||
[4] | The fair value of the GMWB and GMAB embedded derivatives was a net asset at MarchB 31, 2014 and the amount is reported as a contra liability. |
Fair_Values_of_Assets_and_Liab3
Fair Values of Assets and Liabilities (Details 2) (USD $) | 3 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | ||||||
Ameriprise Financial | Ameriprise Financial | Policyholder Account Balances, Future Policy Benefits and Claims [Member] | Policyholder Account Balances, Future Policy Benefits and Claims [Member] | GMWB and GMAB Embedded Derivatives [Member] | GMWB and GMAB Embedded Derivatives [Member] | Available-for-Sale Securities, at fair value | Available-for-Sale Securities, at fair value | Corporate debt securities | Corporate debt securities | Corporate debt securities | Residential mortgage backed securities | Residential mortgage backed securities | Commercial mortgage backed securities | Commercial mortgage backed securities | Asset backed securities | Asset backed securities | Common Stocks | Common Stocks | Asset-backed Securities [Member] | Trading Securities [Member] | Trading Securities [Member] | IUL embedded derivatives | IUL embedded derivatives | GMWB and GMAB Embedded Derivatives [Member] | GMWB and GMAB Embedded Derivatives [Member] | |||||||
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 | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Ameriprise Financial | Discounted Cash Flow Technique [Member] | Discounted Cash Flow Technique [Member] | |||||||||||
Ameriprise Financial | Ameriprise Financial | |||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Nonperformance risk (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.70% | [1] | 0.74% | [1] | ||||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | ' | ' | ' | ' | ' | ' | ($1) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Fair Value Assets Measured on Recurring Basis Change in Unrealized Gain (Loss) Included in Realized Investment Gains (Losses) | ' | ' | ' | ' | ' | ' | ' | ' | -1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ||||||
Fair Value Assets or Liabilities Measured on Recurring Basis Change in Unrealized Gain (Loss) Included in Interest Credited to Fixed Accounts | ' | ' | -6 | -4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -6 | -4 | ' | ' | ||||||
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Balance, at the beginning of the period | ' | ' | ' | ' | ' | ' | 2,123 | 2,438 | ' | 1,640 | 1,764 | 187 | 284 | 30 | 206 | 260 | 178 | 6 | 6 | ' | 2 | 2 | ' | ' | ' | ' | ||||||
Total gains (losses) included in Net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Total gains (losses) included in Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | 4 | 3 | ' | 4 | ' | ' | ' | ' | -2 | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Purchases | ' | ' | ' | ' | ' | ' | 239 | 193 | ' | 76 | 54 | 82 | ' | 60 | ' | 21 | 139 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Settlements | ' | ' | ' | ' | ' | ' | -152 | -55 | ' | -143 | -54 | -3 | ' | ' | ' | -6 | -1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Transfers out of Level 3 | ' | ' | ' | ' | ' | ' | -263 | -277 | ' | ' | ' | -179 | -276 | -15 | ' | -69 | ' | ' | -1 | ' | ' | ' | ' | ' | ' | ' | ||||||
Balance, at the end of the period | ' | ' | ' | ' | ' | ' | 1,940 | 2,302 | ' | 1,566 | 1,764 | 87 | 8 | 75 | 204 | 206 | 321 | 6 | 5 | ' | 2 | 2 | ' | ' | ' | ' | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | ' | ' | ' | ' | ' | ' | -11 | ' | ' | -11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Balance, at the beginning of the period | ' | ' | 450 | -878 | 575 | -833 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -125 | -45 | ' | ' | ||||||
Total Gains (Losses) Included in Net Income | ' | ' | -58 | 614 | -52 | [2] | 618 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -6 | [3] | -4 | [4] | ' | ' | ||
Issues | ' | ' | -83 | -62 | -59 | -50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -24 | -12 | ' | ' | ||||||
Settlements | ' | ' | -8 | -1 | -7 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | ' | ' | ' | ||||||
Balance, at the end of the period | ' | ' | 317 | -327 | 471 | -266 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -154 | -61 | ' | ' | ||||||
Net Increase (Decrease) to Pretax Income from Embedded Derivative Liability | 15 | -62 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Fair Value Assets or Liabilities Measured on Recurring Basis Change in Unrealized Gain (Loss) Included in Benefits, Claims, Losses and Settlement Expenses | ' | ' | ($52) | $609 | ($52) | $609 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
[1] | The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. | |||||||||||||||||||||||||||||||
[2] | Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||
[3] | 2014 amounts represent the amounts payable and receivable for the period from AprilB 1, 2014 to DecemberB 31, 2014. | |||||||||||||||||||||||||||||||
[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 $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | ||
Corporate debt securities (private placements) | Maximum | Discounted Cash Flow Technique [Member] | Ameriprise Financial | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Yield/spread to U.S. Treasuries (as a percent) | 4.80% | 5.30% | ||
Corporate debt securities (private placements) | Minimum | Discounted Cash Flow Technique [Member] | Ameriprise Financial | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Yield/spread to U.S. Treasuries (as a percent) | 0.80% | 0.90% | ||
Corporate debt securities (private placements) | Weighted Average | Discounted Cash Flow Technique [Member] | Ameriprise Financial | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Yield/spread to U.S. Treasuries (as a percent) | 1.40% | 1.50% | ||
GMWB and GMAB Embedded Derivatives [Member] | Discounted Cash Flow Technique [Member] | Ameriprise Financial | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Nonperformance risk (as a percent) | 0.70% | [1] | 0.74% | [1] |
GMWB and GMAB Embedded Derivatives [Member] | Maximum | Discounted Cash Flow Technique [Member] | Ameriprise Financial | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Utilization of guaranteed withdrawals (as a percent) | 51.10% | [2] | 51.10% | [2] |
Surrender Rate (as a percent) | 57.90% | 57.90% | ||
Fair Value Assumptions, Expected Volatility Rate | 17.80% | [3] | 18.80% | [3] |
GMWB and GMAB Embedded Derivatives [Member] | Minimum | Discounted Cash Flow Technique [Member] | 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% | 0.10% | ||
Fair Value Assumptions, Expected Volatility Rate | 4.70% | [3] | 4.90% | [3] |
IUL embedded derivatives | Discounted Cash Flow Technique [Member] | Ameriprise Financial | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Nonperformance risk (as a percent) | 0.70% | [1] | 0.74% | [1] |
GMWB and GMAB Embedded Derivatives [Member] | Discounted Cash Flow Technique [Member] | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Fair value | -471 | -575 | ||
GMWB and GMAB Embedded Derivatives [Member] | Maximum | Discounted Cash Flow Technique [Member] | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Fair Value Assumptions, Elective Contractholder Strategy Allocations | 50.00% | [4] | ' | |
GMWB and GMAB Embedded Derivatives [Member] | Minimum | Discounted Cash Flow Technique [Member] | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Fair Value Assumptions, Elective Contractholder Strategy Allocations | 0.00% | [4] | 0.00% | [4] |
IUL embedded derivatives | Discounted Cash Flow Technique [Member] | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Fair value | ' | 125 | ||
Corporate debt securities | Discounted Cash Flow Technique [Member] | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Fair value | 1,520 | 1,589 | ||
Recurring | Estimate of Fair Value Measurement [Member] | Ameriprise Financial | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Fair value | 117,559 | 116,841 | ||
Fair value | 4,106 | 4,382 | ||
Policyholder Account Balances, Future Policy Benefits and Claims, Fair Value Disclosure | -312 | [5] | -445 | [6] |
Recurring | Estimate of Fair Value Measurement [Member] | GMWB and GMAB Embedded Derivatives [Member] | Ameriprise Financial | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Policyholder Account Balances, Future Policy Benefits and Claims, Fair Value Disclosure | -471 | [7] | -575 | [8] |
Recurring | Estimate of Fair Value Measurement [Member] | IUL embedded derivatives | Ameriprise Financial | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Policyholder Account Balances, Future Policy Benefits and Claims, Fair Value Disclosure | 154 | 125 | ||
Recurring | Estimate of Fair Value Measurement [Member] | IUL embedded derivatives | IUL embedded derivatives | Discounted Cash Flow Technique [Member] | Ameriprise Financial | ' | ' | ||
Summary of the significant unobservable inputs | ' | ' | ||
Policyholder Account Balances, Future Policy Benefits and Claims, Fair Value Disclosure | 154 | ' | ||
[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 $169 million cumulative increase to the embedded derivatives. | |||
[6] | The Companybs adjustment for nonperformance risk resulted in a $150 million cumulative increase to the embedded derivatives. | |||
[7] | The fair value of the GMWB and GMAB embedded derivatives was a net asset at MarchB 31, 2014 and the amount is reported as a contra liability. | |||
[8] | 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 contraB liability. |
Fair_Values_of_Assets_and_Liab5
Fair Values of Assets and Liabilities (Details 4) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financial Liabilities | ' | ' |
Separate account liabilities | $81,872 | $81,223 |
Ameriprise Financial | ' | ' |
Financial Liabilities | ' | ' |
Separate account liabilities | 81,872 | 81,223 |
Ameriprise Financial | Level 1 | ' | ' |
Financial Assets | ' | ' |
Receivables | 158 | 107 |
Restricted and segregated cash | 2,391 | 2,360 |
Other investments and assets | 0 | ' |
Financial Liabilities | ' | ' |
Brokerage customer deposits | 3,148 | 3,088 |
Debt and other liabilities | 209 | 137 |
Ameriprise Financial | Level 2 | ' | ' |
Financial Assets | ' | ' |
Policy and certificate loans | 1 | 1 |
Receivables | 1,092 | 1,026 |
Other investments and assets | 407 | 368 |
Financial Liabilities | ' | ' |
Separate account liabilities | 4,232 | 4,007 |
Debt and other liabilities | 3,199 | 3,372 |
Ameriprise Financial | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Financial Assets | ' | ' |
Mortgage loans, net | 3,498 | 3,490 |
Policy and certificate loans | 769 | 765 |
Receivables | 7 | 8 |
Other investments and assets | 72 | 73 |
Financial Liabilities | ' | ' |
Policyholder account balances, future policy benefits and claims | 14,459 | 14,724 |
Investment certificate reserves | 4,061 | 3,982 |
Debt and other liabilities | 117 | 134 |
Ameriprise Financial | Total | ' | ' |
Financial Assets | ' | ' |
Mortgage loans, net | 3,498 | 3,490 |
Policy and certificate loans | 770 | 766 |
Receivables | 1,257 | 1,141 |
Restricted and segregated cash | 2,391 | 2,360 |
Other investments and assets | 479 | 441 |
Financial Liabilities | ' | ' |
Policyholder account balances, future policy benefits and claims | 14,459 | 14,724 |
Investment certificate reserves | 4,061 | 3,982 |
Brokerage customer deposits | 3,148 | 3,088 |
Separate account liabilities | 4,232 | 4,007 |
Debt and other liabilities | 3,525 | 3,643 |
Carrying Value | Ameriprise Financial | ' | ' |
Financial Assets | ' | ' |
Mortgage loans, net | 3,487 | 3,510 |
Policy and certificate loans | 780 | 774 |
Receivables | 1,258 | 1,141 |
Restricted and segregated cash | 2,391 | 2,360 |
Other investments and assets | 478 | 440 |
Financial Liabilities | ' | ' |
Policyholder account balances, future policy benefits and claims | 13,791 | 14,106 |
Investment certificate reserves | 4,066 | 3,977 |
Brokerage customer deposits | 3,148 | 3,088 |
Separate account liabilities | 4,232 | 4,007 |
Debt and other liabilities | $3,271 | $3,416 |
Offsetting_Assets_and_Liabilit2
Offsetting Assets and Liabilities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives: | ' | ' |
Gross Amounts of Recognized Assets | $3,188 | $3,418 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ' | ' |
Financial Instruments | -2,970 | -3,247 |
Cash Collateral | -99 | -76 |
Securities Collateral | -43 | -15 |
Net Amount | 76 | 80 |
Securities borrowed | ' | ' |
Gross Amounts of Recognized Assets | 158 | 107 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ' | ' |
Financial Instruments | -56 | -15 |
Total | ' | ' |
Gross Amounts of Recognized Assets | 3,346 | 3,525 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ' | ' |
Financial Instruments | -3,026 | -3,262 |
Cash Collateral | 0 | 0 |
Securities Collateral | -100 | -90 |
Net Amount | 2 | 2 |
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Collateral, Obligation to Return Cash | -99 | -76 |
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Collateral, Obligation to Return Securities | -143 | -105 |
Derivative Asset Securities Purchased Under Agreements to Resell Securities Borrowed, Net | 78 | 82 |
OTC | ' | ' |
Derivatives: | ' | ' |
Gross Amounts of Recognized Assets | 3,100 | 3,337 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ' | ' |
Financial Instruments | -2,941 | -3,227 |
Cash Collateral | -87 | -75 |
Securities Collateral | -43 | -15 |
Net Amount | 29 | 20 |
Over the Counter Cleared Swaps [Member] | ' | ' |
Derivatives: | ' | ' |
Gross Amounts of Recognized Assets | 41 | 21 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ' | ' |
Financial Instruments | -29 | -20 |
Cash Collateral | -12 | -1 |
Securities Collateral | ' | ' |
Net Amount | ' | ' |
Exchange-traded derivatives | ' | ' |
Derivatives: | ' | ' |
Gross Amounts of Recognized Assets | 47 | 60 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ' | ' |
Financial Instruments | 0 | 0 |
Cash Collateral | 0 | 0 |
Securities Collateral | 0 | 0 |
Net Amount | $47 | $60 |
Offsetting_Assets_and_Liabilit3
Offsetting Assets and Liabilities (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives | ' | ' |
Gross Amounts of Recognized Liabilities | $4,089 | $4,370 |
Securities loaned | ' | ' |
Gross Amounts of Recognized Liabilities | 209 | 136 |
Securities Loaned Not Offset Financial Instruments | -56 | -15 |
Securities Loaned, Collateral, Right to Reclaim Cash | 0 | ' |
Securities Loaned, Collateral, Right to Reclaim Securities | -147 | -117 |
Securities Loaned, Net | 6 | 4 |
Repurchase agreements | ' | ' |
Gross Amounts of Recognized Liabilities | 50 | 50 |
Total | ' | ' |
Gross Amounts of Recognized Liabilities | 4,654 | 4,994 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ' | ' |
Financial Instruments | 0 | 0 |
Cash Collateral | 0 | 0 |
Securities Collateral | -50 | -50 |
Net Amount | 0 | 0 |
Derivative Liability Securities Sold Under Agreements to Repurchase Securities Loaned Not Offset Financial Instruments | -3,026 | -3,262 |
Derivative Liability Securities Sold Under Agreements to Repurchase Securities Loaned Collateral Right to Reclaim Cash | -1 | -2 |
Derivative Liability Securities Sold Under Agreements to Repurchase Securities Loaned Collateral Right to Reclaim Securities | -1,603 | -1,665 |
Derivative Liability Securities Sold Under Agreements to Repurchase Securities Loaned Net | 24 | 65 |
OTC | ' | ' |
Derivatives | ' | ' |
Gross Amounts of Recognized Liabilities | 4,365 | 4,786 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ' | ' |
Financial Instruments | -2,941 | -3,227 |
Cash Collateral | 0 | ' |
Securities Collateral | -1,406 | -1,498 |
Net Amount | 18 | 61 |
Over the Counter Cleared Swaps [Member] | ' | ' |
Derivatives | ' | ' |
Gross Amounts of Recognized Liabilities | 30 | 22 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ' | ' |
Financial Instruments | -29 | -20 |
Cash Collateral | -1 | -2 |
Securities Collateral | ' | ' |
Net Amount | ' | ' |
Total Over the Counter Derivatives [Member] [Member] | ' | ' |
Derivatives | ' | ' |
Gross Amounts of Recognized Liabilities | 4,395 | 4,808 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ' | ' |
Financial Instruments | -2,970 | -3,247 |
Cash Collateral | -1 | -2 |
Securities Collateral | -1,406 | -1,498 |
Net Amount | $18 | $61 |
Derivatives_and_Hedging_Activi2
Derivatives and Hedging Activities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
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 | $3,188 | $3,418 | ||
Derivative liability, fair value | 4,089 | 4,370 | ||
Designated as Hedging Instrument [Member] | Fair value hedges | ' | ' | ||
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | ||
Derivative asset, fair value | 83 | 82 | ||
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 | 3,105 | 3,336 | ||
Derivative liability, fair value | 4,089 | 4,370 | ||
Derivatives not designated as hedging instruments | Guaranteed Minimum Withdrawal Benefit and Accumulation Benefit [Member] | ' | ' | ||
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | ||
Derivative asset, fair value | 3,009 | 3,230 | ||
Derivative liability, fair value | 3,839 | 4,125 | ||
Derivatives not designated as hedging instruments | Other Derivatives [Member] | ' | ' | ||
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | ||
Derivative asset, fair value | 96 | 106 | ||
Derivative liability, fair value | 250 | 245 | ||
Other assets | Designated as Hedging Instrument [Member] | 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 | 83 | 82 | ||
Other assets | Derivatives not designated as hedging instruments | Interest rate derivatives | Guaranteed Minimum Withdrawal Benefit and Accumulation Benefit [Member] | ' | ' | ||
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | ||
Derivative asset, fair value | 1,452 | 1,484 | ||
Other assets | Derivatives not designated as hedging instruments | Interest rate derivatives | Macro hedge program [Member] | ' | ' | ||
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | ||
Derivative asset, fair value | 10 | 4 | ||
Other assets | 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 | 28 | 27 | ||
Other assets | Derivatives not designated as hedging instruments | Equity derivatives | Guaranteed Minimum Withdrawal Benefit and Accumulation Benefit [Member] | ' | ' | ||
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | ||
Derivative asset, fair value | 1,553 | 1,741 | ||
Other assets | Derivatives not designated as hedging instruments | Equity derivatives | Stock Market Certificates [Member] | ' | ' | ||
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | ||
Derivative asset, fair value | 55 | 73 | ||
Other assets | Derivatives not designated as hedging instruments | Credit derivative contract | Guaranteed Minimum Withdrawal Benefit and Accumulation Benefit [Member] | ' | ' | ||
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 | 3 | ||
Other assets | Derivatives not designated as hedging instruments | Foreign exchange contract | Guaranteed Minimum Withdrawal Benefit and Accumulation Benefit [Member] | ' | ' | ||
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 | 2 | ||
Other assets | Derivatives not designated as hedging instruments | Foreign exchange contract | Foreign Currency [Member] | ' | ' | ||
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 | 2 | ||
Other Liabilities [Member] | Derivatives not designated as hedging instruments | Interest rate derivatives | Guaranteed Minimum Withdrawal Benefit and Accumulation Benefit [Member] | ' | ' | ||
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | ||
Derivative liability, fair value | 1,429 | 1,672 | ||
Other Liabilities [Member] | Derivatives not designated as hedging instruments | Interest rate derivatives | Macro hedge program [Member] | ' | ' | ||
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | ||
Derivative liability, fair value | 13 | 21 | ||
Other Liabilities [Member] | 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 liability, fair value | 9 | 13 | ||
Other Liabilities [Member] | Derivatives not designated as hedging instruments | Equity derivatives | Guaranteed Minimum Withdrawal Benefit and Accumulation Benefit [Member] | ' | ' | ||
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | ||
Derivative liability, fair value | 2,881 | 3,028 | ||
Other Liabilities [Member] | Derivatives not designated as hedging instruments | Equity derivatives | Macro hedge program [Member] | ' | ' | ||
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | ||
Derivative liability, fair value | 12 | 8 | ||
Other Liabilities [Member] | Derivatives not designated as hedging instruments | Equity derivatives | Stock Market Certificates [Member] | ' | ' | ||
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | ||
Derivative liability, fair value | 49 | 66 | ||
Other Liabilities [Member] | Derivatives not designated as hedging instruments | Foreign exchange contract | Foreign Currency [Member] | ' | ' | ||
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | ||
Derivative liability, fair value | 2 | ' | ||
Policyholder Account Balances, Future Policy Benefits and Claims [Member] | 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 | 5 | ||
Policyholder Account Balances, Future Policy Benefits and Claims [Member] | 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 | 154 | 125 | ||
Policyholder Account Balances, Future Policy Benefits and Claims [Member] | Derivatives not designated as hedging instruments | GMWB and GMAB Embedded Derivatives [Member] | Guaranteed Minimum Withdrawal Benefit and Accumulation Benefit [Member] | ' | ' | ||
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | ||
Derivative liability, fair value | -471 | [1],[2] | -575 | [1],[2] |
Deposits [Member] | Derivatives not designated as hedging instruments | Equity derivatives | Stock Market Certificates Embedded Derivatives [Member] | ' | ' | ||
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product | ' | ' | ||
Derivative liability, fair value | $6 | $7 | ||
[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 March 31, 2014 and December 31, 2013 and the amount is reported as a contra liability. |
Derivatives_and_Hedging_Activi3
Derivatives and Hedging Activities (Details 2) (Derivatives not designated as hedging instruments, USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ||
Gain (Loss) on Derivatives Recognized in Income | ($30) | ($50) | ||
Guaranteed Minimum Withdrawal Benefit and Accumulation Benefit [Member] | ' | ' | ||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ||
Gain (Loss) on Derivatives Recognized in Income | -55 | -52 | ||
Other Derivatives [Member] | ' | ' | ||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ||
Gain (Loss) on Derivatives Recognized in Income | 25 | 2 | ||
Interest rate derivatives | Guaranteed Minimum Withdrawal Benefit and Accumulation Benefit [Member] | Benefits, Claims, Losses and Settlement Expenses [Member] | ' | ' | ||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ||
Gain (Loss) on Derivatives Recognized in Income | 264 | -132 | ||
Interest rate derivatives | Macro hedge program [Member] | Benefits, Claims, Losses and Settlement Expenses [Member] | ' | ' | ||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ||
Gain (Loss) on Derivatives Recognized in Income | 17 | ' | ||
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 | ' | ' | ||
Gain (Loss) on Derivatives Recognized in Income | 3 | ' | ||
Interest rate derivatives | Seed Money [Member] | Net investment income | ' | ' | ||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ||
Gain (Loss) on Derivatives Recognized in Income | -1 | ' | ||
Equity derivatives | Guaranteed Minimum Withdrawal Benefit and Accumulation Benefit [Member] | Benefits, Claims, Losses and Settlement Expenses [Member] | ' | ' | ||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ||
Gain (Loss) on Derivatives Recognized in Income | -204 | -492 | ||
Equity derivatives | Macro hedge program [Member] | Benefits, Claims, Losses and Settlement Expenses [Member] | ' | ' | ||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ||
Gain (Loss) on Derivatives Recognized in Income | -4 | ' | ||
Equity derivatives | EIA embedded derivatives | Interest Credited to Fixed Accounts [Member] | ' | ' | ||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ||
Gain (Loss) on Derivatives Recognized in Income | 0 | -1 | ||
Equity derivatives | IUL | Interest Credited to Fixed Accounts [Member] | ' | ' | ||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ||
Gain (Loss) on Derivatives Recognized in Income | 5 | 4 | ||
Equity derivatives | IUL embedded derivatives | Interest Credited to Fixed Accounts [Member] | ' | ' | ||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ||
Gain (Loss) on Derivatives Recognized in Income | 6 | 3 | ||
Equity derivatives | Equity Indexed Annuities [Member] | Interest Credited to Fixed Accounts [Member] | ' | ' | ||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ||
Gain (Loss) on Derivatives Recognized in Income | 0 | 1 | ||
Equity derivatives | Stock Market Certificates [Member] | Banking and Deposit, Interest Expense [Member] | ' | ' | ||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ||
Gain (Loss) on Derivatives Recognized in Income | 1 | 3 | ||
Equity derivatives | Stock Market Certificates Embedded Derivatives [Member] | Banking and Deposit, Interest Expense [Member] | ' | ' | ||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ||
Gain (Loss) on Derivatives Recognized in Income | -1 | -3 | ||
Equity derivatives | Seed Money [Member] | Net investment income | ' | ' | ||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ||
Gain (Loss) on Derivatives Recognized in Income | -1 | -6 | ||
Equity derivatives | Deferred Compensation Plan [Member] | Distribution Expenses [Member] | ' | ' | ||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ||
Gain (Loss) on Derivatives Recognized in Income | 1 | 1 | ||
Credit derivative contract | Guaranteed Minimum Withdrawal Benefit and Accumulation Benefit [Member] | Benefits, Claims, Losses and Settlement Expenses [Member] | ' | ' | ||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ||
Gain (Loss) on Derivatives Recognized in Income | -10 | 0 | ||
Foreign exchange contract | Guaranteed Minimum Withdrawal Benefit and Accumulation Benefit [Member] | Benefits, Claims, Losses and Settlement Expenses [Member] | ' | ' | ||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ||
Gain (Loss) on Derivatives Recognized in Income | -1 | 5 | ||
GMWB and GMAB Embedded Derivatives [Member] | Guaranteed Minimum Withdrawal Benefit and Accumulation Benefit [Member] | Benefits, Claims, Losses and Settlement Expenses [Member] | ' | ' | ||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ||
Gain (Loss) on Derivatives Recognized in Income | -104 | [1] | 567 | [1] |
Commodity | Seed Money [Member] | Net investment income | ' | ' | ||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | ' | ' | ||
Gain (Loss) on Derivatives Recognized in Income | ($1) | ' | ||
[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 3) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
Summary of Option Premiums Payable and Receivable | ' | ' | |
Premiums Payable For Derivatives Option Contracts | $2,044,000,000 | ' | |
Premiums Receivable For Derivatives Option Contracts | 385,000,000 | ' | |
Gross notional amount of forwards, futures, total return swaps and commodity swaps | 79,000,000 | 111,000,000 | |
Gross notional amount of foreign currency forward contracts | 106,000,000 | 30,000,000 | |
2014 | ' | ' | |
Summary of Option Premiums Payable and Receivable | ' | ' | |
Premiums Payable For Derivatives Option Contracts | 307,000,000 | [1] | ' |
Premiums Receivable For Derivatives Option Contracts | 78,000,000 | [1] | ' |
2015 | ' | ' | |
Summary of Option Premiums Payable and Receivable | ' | ' | |
Premiums Payable For Derivatives Option Contracts | 360,000,000 | ' | |
Premiums Receivable For Derivatives Option Contracts | 68,000,000 | ' | |
2016 | ' | ' | |
Summary of Option Premiums Payable and Receivable | ' | ' | |
Premiums Payable For Derivatives Option Contracts | 317,000,000 | ' | |
Premiums Receivable For Derivatives Option Contracts | 52,000,000 | ' | |
2017 | ' | ' | |
Summary of Option Premiums Payable and Receivable | ' | ' | |
Premiums Payable For Derivatives Option Contracts | 247,000,000 | ' | |
Premiums Receivable For Derivatives Option Contracts | 47,000,000 | ' | |
2018 | ' | ' | |
Summary of Option Premiums Payable and Receivable | ' | ' | |
Premiums Payable For Derivatives Option Contracts | 205,000,000 | ' | |
Premiums Receivable For Derivatives Option Contracts | 57,000,000 | ' | |
2019-2027 | ' | ' | |
Summary of Option Premiums Payable and Receivable | ' | ' | |
Premiums Payable For Derivatives Option Contracts | 608,000,000 | ' | |
Premiums Receivable For Derivatives Option Contracts | 83,000,000 | ' | |
Freestanding non-VA derivatives [Member] | ' | ' | |
Summary of Option Premiums Payable and Receivable | ' | ' | |
Notional Amount of Index Options and Futures Contracts | 1,600,000,000 | 1,500,000,000 | |
Deferred Compensation Plan [Member] | ' | ' | |
Summary of Option Premiums Payable and Receivable | ' | ' | |
Gross notional amount of futures contracts | 218,000,000 | 224,000,000 | |
Macro hedge program [Member] | ' | ' | |
Summary of Option Premiums Payable and Receivable | ' | ' | |
Derivative, Notional Amount | 710,000,000 | 710,000,000 | |
GMWB and GMAB Embedded Derivatives [Member] | ' | ' | |
Summary of Option Premiums Payable and Receivable | ' | ' | |
Derivative, Notional Amount | $141,500,000,000 | $144,500,000,000 | |
[1] | 2014 amounts represent the amounts payable and receivable for the period from AprilB 1, 2014 to DecemberB 31, 2014. |
Derivatives_and_Hedging_Activi5
Derivatives and Hedging Activities (Details 4) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments Gain (Loss) | ' | ' |
Number of interest rate swaps held | 3 | ' |
Cash flow hedges | ' | ' |
Derivative Instruments Gain (Loss) | ' | ' |
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) Reclassified from Accumulated other Comprehensive Income into Income | 0 | 0 |
Hedging exposure to the variability in future cash flows | '22 years | ' |
Cash flow hedges | Net investment income | ' | ' |
Derivative Instruments Gain (Loss) | ' | ' |
Amount of Gain (Loss) Reclassified from Accumulated other Comprehensive Income into Income | -1 | -1 |
Cash flow hedges | Interest and debt expense | ' | ' |
Derivative Instruments Gain (Loss) | ' | ' |
Amount of Gain (Loss) Reclassified from Accumulated other Comprehensive Income into Income | 1 | 1 |
Fair value hedges | Fixed rate debt | Interest and debt expense | ' | ' |
Derivative Instruments Gain (Loss) | ' | ' |
Amount of Gain Recognized in Income on Derivatives | $8 | $10 |
Derivatives_and_Hedging_Activi6
Derivatives and Hedging Activities (Details 5) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives liabilities, credit risk related contingent features | ' | ' |
Aggregate fair value of all derivative instruments containing credit risk features | $887 | $1,000 |
Aggregate fair value of assets posted as collateral | 876 | 959 |
Additional fair value of assets needed to settle these derivative liabilities | $11 | $56 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 1 Months Ended | 3 Months Ended | ||
Share data in Millions, unless otherwise specified | Apr. 30, 2014 | Oct. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 |
Amounts Reclassified from AOCI | ' | ' | ' | ' |
Net investment income | ' | ' | $471,000,000 | $489,000,000 |
Income (Loss) from Continuing Operations before Income Taxes | ' | ' | 650,000,000 | 487,000,000 |
Interest and debt expense | ' | ' | 79,000,000 | 66,000,000 |
Stock Repurchase Program, Authorized Amount | 2,500,000,000 | 2,000,000,000 | ' | ' |
Income tax provision | ' | ' | 134,000,000 | 121,000,000 |
Repurchase of common shares (in shares) | ' | ' | 3.2 | 5.2 |
Repurchase of common shares | ' | ' | 354,000,000 | 360,000,000 |
Remaining Balance under Stock Repurchase Program | ' | ' | 295,000,000 | ' |
Number of shares reacquired through surrender of restricted shares | ' | ' | 0.8 | 0.4 |
Number of shares reacquired through net settlement of options | ' | ' | 0.7 | 1.3 |
Aggregate value of shares reacquired through net settlement of options | ' | ' | 74,000,000 | 87,000,000 |
Value of shares reacquired through surrender of restricted shares | ' | ' | 88,000,000 | 24,000,000 |
Treasury shares reissued for restricted stock award grants and Ameriprise Financial Franchise Advisor Deferred Compensation Plan (in shares) | ' | ' | 1.6 | 1.9 |
Net unrealized loss on Available-for-Sale securities | Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Amounts Reclassified from AOCI | ' | ' | ' | ' |
Net investment income | ' | ' | -5,000,000 | -1,000,000 |
Net of tax | ' | ' | -3,000,000 | -1,000,000 |
Income tax provision | ' | ' | 2,000,000 | 0 |
Losses (gains) on cash flow hedge | Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Amounts Reclassified from AOCI | ' | ' | ' | ' |
Income (Loss) from Continuing Operations before Income Taxes | ' | ' | 0 | 0 |
Net of tax | ' | ' | 0 | 0 |
Income tax provision | ' | ' | 0 | 0 |
Losses (gains) on cash flow hedge | Amount Reclassified from Accumulated Other Comprehensive Income | Interest rate derivatives | ' | ' | ' | ' |
Amounts Reclassified from AOCI | ' | ' | ' | ' |
Interest and debt expense | ' | ' | -1,000,000 | -1,000,000 |
Losses (gains) on cash flow hedge | Amount Reclassified from Accumulated Other Comprehensive Income | Interest rate swaptions | ' | ' | ' | ' |
Amounts Reclassified from AOCI | ' | ' | ' | ' |
Net investment income | ' | ' | $1,000,000 | $1,000,000 |
Incentive Compensation Plan 2005 [Member] | ' | ' | ' | ' |
Amounts Reclassified from AOCI | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 16.5 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 54.4 | ' | ' | ' |
Maximum Shares to be Issued Full Value Awards | 4.5 | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Income Taxes | ' | ' | ' |
Effective tax rate on income from continuing operations (as a percent) | 20.70% | 25.00% | ' |
Benefits Tax Planning and Completion of Audits | $17 | ' | ' |
Valuation allowance | 19 | ' | 19 |
Gross unrecognized tax benefit (expense) | 195 | ' | 209 |
Unrecognized tax benefits (net of federal tax benefits) that would impact the effective tax rate | 45 | ' | 62 |
Estimated decrease in amount of unrecognized tax benefits in next 12 months | 140 | ' | ' |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Upper Bound | 150 | ' | ' |
Increase (reduction) in interest and penalties | 1 | 1 | ' |
Accrued interest and penalties | 42 | ' | 42 |
State and Local | ' | ' | ' |
Income Taxes | ' | ' | ' |
State net operating losses | $29 | ' | ' |
Guarantees_and_Contingencies_D
Guarantees and Contingencies (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Contingencies | ' | ' |
Liability related to guaranty fund assessments | $13 | $14 |
Premium tax asset | 11 | 11 |
Minimum | ' | ' |
Contingencies | ' | ' |
Damages sought by plaintiffs | $20 | ' |
Earnings_per_Share_Attributabl2
Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Numerator: | ' | ' |
Income from continuing operations | $516 | $366 |
Less: Net income attributable to noncontrolling interests | 115 | 30 |
Income from continuing operations attributable to Ameriprise Financial | 401 | 336 |
Loss from discontinued operations, net of tax | -1 | -1 |
Net Income (Loss) Attributable to Parent | $400 | $335 |
Denominator: | ' | ' |
Basic: Weighted-average common shares outstanding | 195.5 | 208.4 |
Effect of potentially dilutive nonqualified stock options and other share-based awards (in shares) | 3.6 | 3.9 |
Diluted: Weighted-average common shares outstanding | 199.1 | 212.3 |
Basic: | ' | ' |
Income from continuing operations (in dollars per share) | $2.05 | $1.61 |
Loss from discontinued operations (in dollars per share) | ' | ' |
Net income (in dollars per share) | $2.05 | $1.61 |
Diluted: | ' | ' |
Income from continuing operations (in dollars per share) | $2.01 | $1.58 |
Loss from discontinued operations (in dollars per share) | ' | ' |
Net income (in dollars per share) | $2.01 | $1.58 |
Effect of potentially dilutive nonqualified stock options and other share-based awards (in shares) | 1.5 | 1.6 |
Segment_Information_Details
Segment Information (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Summary of assets by segment | ' | ' |
Total assets | $145,964 | $144,576 |
Advice and Wealth Management | ' | ' |
Summary of assets by segment | ' | ' |
Total assets | 10,012 | 9,571 |
Asset Management Segment [Member] | ' | ' |
Summary of assets by segment | ' | ' |
Total assets | 7,854 | 7,223 |
Annuities | ' | ' |
Summary of assets by segment | ' | ' |
Total assets | 98,079 | 98,354 |
Protection [Member] | ' | ' |
Summary of assets by segment | ' | ' |
Total assets | 19,858 | 19,605 |
Corporate and Other | ' | ' |
Summary of assets by segment | ' | ' |
Total assets | $10,161 | $9,823 |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Summary of segment operating results | ' | ' | ||
Revenues of CIEs | $177 | $82 | ||
Market impact on IUL benefits, net | 2 | ' | ||
Reconciliation of operating profit (loss) from segments to consolidated | ' | ' | ||
Total segment operating earnings | 544 | 460 | ||
Net realized gains (losses) | 5 | 1 | ||
Less: Net income attributable to noncontrolling interests | 115 | 30 | ||
Market impact on variable annuity living benefits, net | -15 | -2 | ||
Market impact on IUL benefits, net | 1 | ' | ||
Restructuring | ' | -2 | ||
Income from continuing operations before income tax provision | 650 | 487 | ||
Net Revenues | 2,996 | 2,691 | ||
Advice and Wealth Management | ' | ' | ||
Summary of segment operating results | ' | ' | ||
Segment Reporting Information Net Revenues | 1,149 | 1,018 | ||
Reconciliation of operating profit (loss) from segments to consolidated | ' | ' | ||
Total segment operating earnings | 181 | 130 | ||
Asset Management Segment [Member] | ' | ' | ||
Summary of segment operating results | ' | ' | ||
Segment Reporting Information Net Revenues | 807 | 746 | ||
Reconciliation of operating profit (loss) from segments to consolidated | ' | ' | ||
Total segment operating earnings | 183 | 138 | ||
Annuities | ' | ' | ||
Summary of segment operating results | ' | ' | ||
Segment Reporting Information Net Revenues | 636 | 624 | ||
Reconciliation of operating profit (loss) from segments to consolidated | ' | ' | ||
Total segment operating earnings | 176 | 142 | ||
Protection [Member] | ' | ' | ||
Summary of segment operating results | ' | ' | ||
Segment Reporting Information Net Revenues | 555 | 537 | ||
Reconciliation of operating profit (loss) from segments to consolidated | ' | ' | ||
Total segment operating earnings | 59 | 103 | ||
Corporate and Other | ' | ' | ||
Summary of segment operating results | ' | ' | ||
Segment Reporting Information Net Revenues | 6 | 4 | ||
Reconciliation of operating profit (loss) from segments to consolidated | ' | ' | ||
Total segment operating earnings | -55 | -53 | ||
Eliminations: | ' | ' | ||
Summary of segment operating results | ' | ' | ||
Segment Reporting Information Net Revenues | -341 | [1] | -321 | [1] |
Operating Segments [Member] | ' | ' | ||
Summary of segment operating results | ' | ' | ||
Segment Reporting Information Net Revenues | 2,812 | 2,608 | ||
Reconciliation of operating profit (loss) from segments to consolidated | ' | ' | ||
Net Revenues | 2,996 | 2,691 | ||
Consolidation, Eliminations [Member] | Advice and Wealth Management | ' | ' | ||
Summary of segment operating results | ' | ' | ||
Segment Reporting Information Net Revenues | 240 | 228 | ||
Consolidation, Eliminations [Member] | Asset Management Segment [Member] | ' | ' | ||
Summary of segment operating results | ' | ' | ||
Segment Reporting Information Net Revenues | 11 | 9 | ||
Consolidation, Eliminations [Member] | Annuities | ' | ' | ||
Summary of segment operating results | ' | ' | ||
Segment Reporting Information Net Revenues | 80 | 73 | ||
Consolidation, Eliminations [Member] | Protection [Member] | ' | ' | ||
Summary of segment operating results | ' | ' | ||
Segment Reporting Information Net Revenues | 10 | 10 | ||
Consolidation, Eliminations [Member] | Corporate and Other | ' | ' | ||
Summary of segment operating results | ' | ' | ||
Segment Reporting Information Net Revenues | $0 | $1 | ||
[1] | Represents the elimination of intersegment revenues recognized for the three months ended MarchB 31, 2014 and 2013 in each segment as follows: AdviceB & Wealth Management ($240 and $228, respectively); Asset Management ($11 and $9, respectively); Annuities ($80 and $73, respectively); Protection ($10 and $10, respectively); and CorporateB & Other (nil and $1, respectively). |