Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 09, 2018 | Jun. 30, 2017 | |
Document and Entity Information | |||
Entity Registrant Name | AMERIPRISE FINANCIAL INC | ||
Entity Central Index Key | 820,027 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 146,332,164 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS Consolidated Statement of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues [Abstract] | |||
Management and financial advice fees | $ 6,392 | $ 5,778 | $ 5,950 |
Distribution fees | 1,770 | 1,795 | 1,847 |
Net investment income | 1,509 | 1,576 | 1,688 |
Premiums | 1,394 | 1,491 | 1,455 |
Other revenues | 1,010 | 1,095 | 1,260 |
Total revenues | 12,075 | 11,735 | 12,200 |
Banking and deposit interest expense | 48 | 39 | 30 |
Total net revenues | 12,027 | 11,696 | 12,170 |
Expenses | |||
Distribution expenses | 3,399 | 3,202 | 3,276 |
Interest credited to fixed accounts | 656 | 623 | 668 |
Benefits, claims, losses and settlement expenses | 2,233 | 2,646 | 2,261 |
Amortization of deferred acquisition costs | 267 | 415 | 354 |
Interest and debt expense | 207 | 241 | 387 |
General and administrative expense | 3,051 | 2,977 | 3,082 |
Total expenses | 9,813 | 10,104 | 10,028 |
Income from continuing operations before income tax provision | 2,214 | 1,592 | 2,142 |
Income tax provision | 734 | 278 | 455 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 1,480 | 1,314 | 1,687 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 125 |
Net income attributable to Ameriprise Financial | $ 1,480 | $ 1,314 | $ 1,562 |
Earnings Per Share, Basic: | |||
Net income (in dollars per basic share) | $ 9.60 | $ 7.90 | $ 8.60 |
Earnings Per Share, Diluted: | |||
Net income (in dollars per diluted share) | 9.44 | 7.81 | 8.48 |
Cash dividends declared per common share | $ 3.24 | $ 2.92 | $ 2.59 |
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities [Abstract] | |||
Total other-than-temporary impairment losses on securities | $ (1) | $ (2) | $ (8) |
Portion of loss recognized in other comprehensive income (loss) (before taxes) | 0 | 1 | 0 |
Net impairment losses recognized in net investment income | $ (1) | $ (1) | $ (8) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,480 | $ 1,314 | $ 1,687 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | (8) | (76) | (90) |
Net unrealized [gains (losses)] on securities: | |||
Net unrealized gains (losses) on securities | 7 | 47 | (360) |
Net unrealized gains on derivatives: | |||
Net unrealized gains (losses) on derivatives | 3 | 4 | 1 |
Defined benefit plans: | |||
Defined benefit plans | 28 | (34) | (20) |
Other Comprehensive Income Loss Adjustment Other Investments Net of Tax | (1) | 0 | 0 |
Total other comprehensive income (loss), net of tax | 29 | (59) | (469) |
Total comprehensive income | 1,509 | 1,255 | 1,218 |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | 65 |
Comprehensive income attributable to Ameriprise Financial | $ 1,509 | $ 1,255 | $ 1,153 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Total assets | $ 147,470 | $ 139,821 |
Liabilities: | ||
Policyholder account balances, future policy benefits and claims | 29,904 | 30,202 |
Separate account liabilities | 87,368 | 80,210 |
Total liabilities | 141,472 | 133,529 |
Ameriprise Financial, Inc.: | ||
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 327,506,935 and 324,006,315, respectively) | 3 | 3 |
Additional paid-in capital | 8,085 | 7,765 |
Retained earnings | 11,329 | 10,351 |
Treasury shares, at cost (180,872,271 and 169,246,411 shares, respectively) | (13,648) | (12,027) |
Accumulated other comprehensive income, net of tax | 229 | 200 |
Total equity | 5,998 | 6,292 |
Total liabilities and equity | 147,470 | 139,821 |
Ameriprise Financial [Member] | ||
Assets | ||
Cash and cash equivalents | 2,484 | 2,318 |
Investments | 35,925 | 35,834 |
Separate account assets | 87,368 | 80,210 |
Receivables | 5,760 | 5,299 |
Deferred acquisition costs | 2,676 | 2,648 |
Restricted and segregated cash and investments | 3,147 | 3,331 |
Other assets | 7,818 | 7,748 |
Liabilities: | ||
Policyholder account balances, future policy benefits and claims | 29,904 | 30,202 |
Separate account liabilities | 87,368 | 80,210 |
Customer deposits | 10,303 | 10,036 |
Short-term borrowings | 200 | 200 |
Long-term debt | 2,891 | 2,917 |
Accounts payable and accrued liabilities | 1,960 | 1,727 |
Other liabilities | 6,575 | 5,823 |
Consolidated investment entities [Member] | ||
Assets | ||
Cash and cash equivalents | 136 | 168 |
Investments | 2,131 | 2,254 |
Receivables | 25 | 11 |
Liabilities: | ||
Long-term debt | 2,208 | 2,319 |
Other liabilities | $ 63 | $ 95 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | 327,506,935 | 324,006,315 | |
Treasury shares | 180,872,271 | 169,246,411 | |
Consolidated investment entities [Member] | |||
Receivables, fair value (in dollars) | $ 25 | $ 11 | |
Other assets, fair value (in dollars) | 0 | 0 | |
Debt, fair value (in dollars) | [1] | 2,208 | 2,319 |
Other liabilities, fair value (in dollars) | $ 63 | $ 95 | |
[1] | The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.2 billion and $2.3 billion as of December 31, 2017 and December 31, 2016, respectively. |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Total Ameriprise Financial, Inc. Shareholders' Equity | Common Shares [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Appropriated Retained Earnings of Consolidated Investment Entities [Member] | Treasury Shares [Member] | Accumulated Other Comprehensive Income [Member] | Noncontrolling Interests [Member] |
Balances at Dec. 31, 2014 | $ 9,279 | $ 8,098 | $ 3 | $ 7,345 | $ 8,443 | $ 234 | $ (8,589) | $ 662 | $ 1,181 |
Balances (in shares) at Dec. 31, 2014 | 183,109,509 | ||||||||
Comprehensive income (loss): | |||||||||
Net income (loss) | 1,687 | 1,562 | 1,562 | 125 | |||||
Other comprehensive income (loss), net of tax | (469) | (409) | (409) | (60) | |||||
Total comprehensive income (loss) | 1,218 | 1,153 | 65 | ||||||
Net income (loss) reclassified to appropriated retained earnings | 0 | (97) | (97) | 97 | |||||
Dividends to shareholders | (474) | (474) | (474) | ||||||
Noncontrolling interests investments in subsidiaries | 255 | 255 | |||||||
Distributions to noncontrolling interests | (415) | (415) | |||||||
Repurchase of common shares | (1,815) | (1,815) | (1,815) | ||||||
Repurchase of common shares (in shares) | (14,951,703) | ||||||||
Share-based compensation plans | 331 | 326 | 266 | (6) | 66 | 5 | |||
Share-based compensation plans (in shares) | 2,875,454 | ||||||||
Balances at Dec. 31, 2015 | 8,379 | 7,191 | $ 3 | 7,611 | 9,525 | 137 | (10,338) | 253 | 1,188 |
Balances (in shares) at Dec. 31, 2015 | 171,033,260 | ||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 6 | ||||||||
Comprehensive income (loss): | |||||||||
Net income (loss) | 1,314 | 1,314 | 1,314 | ||||||
Other comprehensive income (loss), net of tax | (59) | (59) | (59) | ||||||
Total comprehensive income (loss) | 1,255 | 1,255 | |||||||
Dividends to shareholders | (489) | (489) | (489) | ||||||
Repurchase of common shares | (1,751) | (1,751) | (1,751) | ||||||
Repurchase of common shares (in shares) | (18,367,742) | ||||||||
Share-based compensation plans | 216 | 216 | 154 | 62 | |||||
Share-based compensation plans (in shares) | 2,094,386 | ||||||||
Balances at Dec. 31, 2016 | 6,292 | 6,292 | $ 3 | 7,765 | 10,351 | (12,027) | 200 | ||
Balances (in shares) at Dec. 31, 2016 | 154,759,904 | ||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | Adjustments for New Accounting Pronouncement [Member] | (1,318) | (130) | 1 | (137) | 6 | (1,188) | |||
Comprehensive income (loss): | |||||||||
Net income (loss) | 1,480 | 1,480 | 1,480 | ||||||
Other comprehensive income (loss), net of tax | 29 | 29 | 29 | ||||||
Total comprehensive income (loss) | 1,509 | 1,509 | |||||||
Dividends to shareholders | (502) | (502) | (502) | ||||||
Repurchase of common shares | (1,675) | (1,675) | (1,675) | ||||||
Repurchase of common shares (in shares) | (12,388,348) | ||||||||
Share-based compensation plans | 374 | 374 | 320 | 54 | |||||
Share-based compensation plans (in shares) | 4,263,108 | ||||||||
Balances at Dec. 31, 2017 | $ 5,998 | $ 5,998 | $ 3 | $ 8,085 | $ 11,329 | $ 0 | $ (13,648) | $ 229 | $ 0 |
Balances (in shares) at Dec. 31, 2017 | 146,634,664 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Cash Flows [Abstract] | |||
Net income | $ 1,480 | $ 1,314 | $ 1,687 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization and accretion, net | 234 | 248 | 248 |
Deferred income tax expense (benefit) | 156 | (34) | (131) |
Share-based compensation | 121 | 134 | 145 |
Net realized investment (gains) losses | (50) | (16) | (14) |
Net trading (gains) losses | (7) | (6) | (7) |
Loss from equity method investments | 117 | 54 | 14 |
Other-than-temporary impairments and provision for loan losses | 0 | 4 | 9 |
Net (gains) losses of consolidated investment entities | 5 | (38) | (132) |
Changes in operating assets and liabilities: | |||
Restricted and segregated investments | (198) | (24) | (401) |
Deferred acquisition costs | (35) | 55 | (7) |
Other investments, net | 4 | 14 | 81 |
Policyholder account balances, future policy benefits and claims, net | (441) | 8 | 494 |
Derivatives, net of collateral | 595 | 59 | 93 |
Receivables | (457) | (150) | (277) |
Brokerage deposits | (198) | 310 | 337 |
Accounts payable and accrued expenses | 206 | 173 | 82 |
Investment properties of consolidated investment entities | 0 | 0 | (114) |
Other operating assets and liabilities of consolidated investment entities, net | 0 | (9) | 95 |
Other, net | 169 | 257 | 489 |
Net cash provided by (used in) operating activities | 1,701 | 2,353 | 2,691 |
Available-for-Sale securities: | |||
Proceeds from sales | 454 | 366 | 294 |
Maturities, sinking fund payments and calls | 4,957 | 4,421 | 4,542 |
Purchases | (5,419) | (6,498) | (4,562) |
Proceeds from sales, maturities and repayments of mortgage loans | 699 | 810 | 631 |
Funding of mortgage loans | (479) | (451) | (558) |
Proceeds from sales and collections of other investments | 269 | 253 | 236 |
Purchase of other investments | (487) | (291) | (306) |
Purchase of investments by consolidated investment entities | (1,268) | (845) | (2,678) |
Proceeds from sales, maturities and repayments of investments by consolidated investment entities | 1,349 | 1,421 | 2,009 |
Purchase of land, buildings, equipment and software | (162) | (92) | (133) |
Other, net | (112) | 101 | 16 |
Net cash (used in) provided by investing activities | (199) | (805) | (509) |
Investment certificates: | |||
Proceeds from additions | 4,725 | 4,250 | 3,139 |
Maturities, withdrawals and cash surrenders | (4,262) | (3,155) | (2,509) |
Policyholder account balances: | |||
Deposits and other additions | 2,059 | 2,086 | 2,061 |
Net transfers to (from) separate accounts | (157) | 127 | (171) |
Surrenders and other benefits | (1,893) | (1,932) | (2,714) |
Cash paid for purchased options with deferred premiums | (282) | (341) | (392) |
Cash received for purchased options with deferred premiums | 116 | 276 | 16 |
Issuance of long-term debt, net of issuance costs | 0 | 496 | 0 |
Repayments of long-term debt | (11) | (257) | (409) |
Change in short-term borrowings, net | 0 | (1) | (1) |
Dividends paid to shareholders | (491) | (479) | (465) |
Repurchase of common shares | (1,485) | (1,707) | (1,741) |
Exercise of stock options | 15 | 9 | 16 |
Borrowings by consolidated investment entities | 0 | 0 | 1,650 |
Repayments of debt by consolidated investment entities | (118) | (517) | (719) |
Noncontrolling interests investments in subsidiaries | 0 | 0 | 255 |
Distributions to noncontrolling interests | 0 | 0 | (415) |
Other, net | (1) | 3 | 3 |
Net cash provided by (used in) financing activities | (1,785) | (1,142) | (2,396) |
Effect of exchange rate changes on cash | 35 | (75) | (21) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (248) | 331 | (235) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning balance | 5,392 | 5,407 | 5,642 |
Net cash outflows upon the deconsolidation of VIEs | 0 | (346) | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, ending balance | $ 5,144 | $ 5,392 | $ 5,407 |
CONSOLIDATED STATEMENTS OF CAS8
CONSOLIDATED STATEMENTS OF CASH FLOWS Supplemental Cash Flow Disclosures - Cash Reconciliation - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Less: Restricted and segregated investments | $ (623) | $ (425) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 5,144 | 5,392 |
Ameriprise Financial [Member] | ||
Cash and cash equivalents | 2,484 | 2,318 |
Restricted Cash and Cash Equivalents and Cash and Securities Segregated under Feder and Other Regulations | 3,147 | 3,331 |
Consolidated investment entities [Member] | ||
Cash and cash equivalents | $ 136 | $ 168 |
CONSOLIDATED STATEMENTS OF CAS9
CONSOLIDATED STATEMENTS OF CASH FLOWS Supplemental Cash Flow Disclosures - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income taxes paid (received), net | $ 418 | $ 155 | $ 439 |
Non-cash Investing Activity: | |||
Partnership commitments not yet remitted | 9 | 108 | 45 |
Ameriprise Financial [Member] | |||
Interest Paid | 181 | 163 | 186 |
Consolidated investment entities [Member] | |||
Interest Paid | $ 88 | $ 127 | $ 257 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 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 Threadneedle Asset Management Holdings Sàrl and Ameriprise Asset Management Holdings GmbH (collectively, “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”). All intercompany transactions and balances have been eliminated in consolidation. Effective January 1, 2016, the Company adopted ASU 2015-02 - Consolidation: Amendments to the Consolidation Analysis (“ASU 2015-02”) and deconsolidated several collateralized loan obligations (“CLOs”) and all previously consolidated property funds. 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.” Upon adoption of ASU 2015-02, the Company no longer has noncontrolling interests primarily due to the deconsolidation of property funds. See Note 3 and Note 4 for additional information on recently adopted accounting pronouncements and VIEs. The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). 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. In 2017, the Company recorded the following out-of-period corrections: • an $87 million decrease to other comprehensive income (“OCI”) related to deferred taxes on currency translations adjustments. • a $12 million out-of-period correction related to a variable annuity model assumption that decreased amortization of deferred acquisition costs (“DAC”) by $8 million and decreased benefits, claims, losses and settlement expenses by $4 million . • a $20 million decrease to income tax provision for a reversal of a tax reserve. In 2016, the Company recorded a $29 million increase to long term care (“LTC”) reserves for an out-of-period correction related to its claim utilization factor. In 2015, the Company recorded a capital lease that had previously been incorrectly recorded as an operating lease for Ameriprise Financial Center. The cumulative adjustment included a capital lease asset of $70 million , net of accumulated depreciation, and a related capital lease obligation of $60 million and a $10 million increase in pretax income. The lease term for the Ameriprise Financial Center began in November 2000 and extends for 20 years, with several options to extend the term. The impact of these out-of-period corrections was not material to current or prior period financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Principles of Consolidation A VIE is an entity that either has equity investors that lack certain essential characteristics of a controlling financial interest (including substantive voting rights, the obligation to absorb the entity’s losses, or the rights to receive the entity’s returns) or has equity investors that do not provide sufficient financial resources for the entity to support its activities. Voting interest entities (“VOEs”) are those entities that do not qualify as a VIE. The Company consolidates VOEs in which it holds a greater than 50% voting interest. The Company generally accounts for entities using the equity method when it holds a greater than 20% but less than 50% voting interest or when the Company exercises significant influence over the entity. All other investments that are not reported at fair value as trading or Available-for-Sale securities are accounted for under the cost method when the Company owns less than a 20% voting interest and does not exercise significant influence. A VIE is consolidated by the reporting entity that determines it has both: • the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and • the obligation to absorb potentially significant losses or the right to receive potentially significant benefits to the VIE. All VIEs are assessed for consolidation under this framework. When evaluating entities for consolidation, the Company considers its contractual rights in determining whether it has the power to direct the activities of the VIE that most significantly impact the VIEs economic performance. In determining whether the Company has this power, it considers whether it is acting in a role that enables it to direct the activities that most significantly impact the economic performance of an entity or if it is acting in an agent role. In determining whether the Company has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Company considers an analysis of its rights to receive benefits such as investment returns and its obligation to absorb losses associated with any investment in the VIE in conjunction with other qualitative factors. Management and incentive fees that are at market and commensurate with the level of services provided, and where the Company does not hold other interests in the VIE that would absorb more than an insignificant amount of the VIE’s expected losses or receive more than an insignificant amount of the VIE’s expected residual returns, are not considered a variable interest and are excluded from the analysis. The consolidation guidance has a scope exception for reporting entities with interests in registered money market funds which do not have an explicit support agreement. Foreign Currency Translation Net assets of foreign subsidiaries, whose functional currency is other than the U.S. dollar, are translated into U.S. dollars based upon exchange rates prevailing at the end of each period. Revenues and expenses are translated at daily exchange rates during the period. The resulting translation adjustment, along with any related hedge and tax effects, are included in accumulated other comprehensive income (“AOCI”). The determination of the functional currency is based on the primary economic and other management indicators. Gains and losses from foreign currency transactions are included in the consolidated results of operations. Amounts Based on Estimates and Assumptions Accounting estimates are an integral part of the Consolidated Financial Statements. In part, they are based upon assumptions concerning future events. Among the more significant are those that relate to investment securities valuation and recognition of other-than-temporary impairments, DAC and the corresponding recognition of DAC amortization, valuation of derivative instruments and hedging activities, litigation and claims reserves and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ. Cash and Cash Equivalents Cash equivalents include time deposits and other highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less. Investments Available-for-Sale Securities Available-for-Sale securities are carried at fair value with unrealized gains (losses) recorded in AOCI, net of impacts to DAC, deferred sales inducement costs (“DSIC”), unearned revenue, benefit reserves, reinsurance recoverables and income taxes. Gains and losses are recognized on a trade date basis in the Consolidated Statements of Operations upon disposition of the securities. When the fair value of an investment is less than its amortized cost, the Company assesses whether or not: (i) it has the intent to sell the security (made a decision to sell) or (ii) it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If either of these conditions exist, an other-than-temporary impairment is considered to have occurred and the Company recognizes an other-than-temporary impairment for the difference between the investment’s amortized cost and its fair value through earnings. For securities that do not meet the above criteria and the Company does not expect to recover a security’s amortized cost, the security is also considered other-than-temporarily impaired. For these securities, the Company separates the total impairment into the credit loss component and the amount of the loss related to other factors. The amount of the total other-than-temporary impairment related to credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to other factors is recognized in OCI, net of impacts to DAC, DSIC, unearned revenue, benefit reserves, reinsurance recoverables and income taxes. For Available-for-Sale securities that have recognized an other-than-temporary impairment through earnings, the difference between the amortized cost and the cash flows expected to be collected is accreted as interest income if through subsequent evaluation there is a sustained increase in the cash flow expected. Subsequent increases and decreases in the fair value of Available-for-Sale securities are included in OCI. The Company provides a supplemental disclosure on the face of its Consolidated Statements of Operations that presents: (i) total other-than-temporary impairment losses recognized during the period and (ii) the portion of other-than-temporary impairment losses recognized in OCI. The sum of these amounts represents the credit-related portion of other-than-temporary impairments that were recognized in earnings during the period. The portion of other-than-temporary losses recognized in OCI includes: (i) the portion of other-than-temporary impairment losses related to factors other than credit recognized during the period and (ii) reclassifications of other-than-temporary impairment losses previously determined to be related to factors other than credit that are determined to be credit-related in the current period. The amount presented on the Consolidated Statements of Operations as the portion of other-than-temporary losses recognized in OCI excludes subsequent increases and decreases in the fair value of these securities. For all securities that are considered temporarily impaired, the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. The Company believes that it will collect all principal and interest due on all investments that have amortized cost in excess of fair value that are considered only temporarily impaired. Factors the Company considers in determining whether declines in the fair value of fixed maturity securities are other-than-temporary include: (i) the extent to which the market value is below amortized cost; (ii) the duration of time in which there has been a significant decline in value; (iii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iv) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors. In order to determine the amount of the credit loss component for corporate debt securities considered other-than-temporarily impaired, a best estimate of the present value of cash flows expected to be collected discounted at the security’s effective interest rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and the Company’s position in the debtor’s overall capital structure. For structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities, asset backed securities and other structured investments), the Company also considers factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections in assessing potential other-than-temporary impairments of these investments. Based upon these factors, securities that have indicators of potential other-than-temporary impairment are subject to detailed review by management. Securities for which declines are considered temporary continue to be monitored by management until management determines there is no current risk of an other-than-temporary impairment. Other Investments Other investments primarily reflect the Company’s interests in affordable housing partnerships, trading securities, seed money investments and syndicated loans. Affordable housing partnerships and seed money investments are accounted for under the equity method. Trading securities primarily include common stocks and trading bonds. Trading securities are carried at fair value with unrealized and realized gains (losses) recorded within net investment income. Financing Receivables Commercial Mortgage Loans, Syndicated Loans, and Consumer Loans Commercial mortgage loans, syndicated loans and consumer loans are reflected within investments at amortized cost less the allowance for loan losses. Syndicated loans represent the Company’s investment in below investment grade loan syndications. Consumer loans primarily consisted of residential mortgage loans at December 31, 2016. Interest income is accrued on the unpaid principal balances of the loans as earned. Other Loans Other loans consist of policy and certificate loans, advisor loans and brokerage margin loans. When originated, policy and certificate loan balances do not exceed the cash surrender value of the underlying products. As there is minimal risk of loss related to policy and certificate loans, the Company does not record an allowance for loan losses. Policy and certificate loans are reflected within investments at the unpaid principal balance, plus accrued interest. The Company offers loans to financial advisors primarily for recruiting, transitional cost assistance and retention purposes. These loans are generally repaid over a five to nine-year period. Advisor loans are recorded within receivables at principal less an allowance for loan losses. Interest income is recognized as earned and reflected in other revenues. R ecoverability of these loans is assessed through analysis of financial advisor retention, loan collection and other criteria. In the event that the financial advisor is no longer affiliated with the Company, any unpaid balance of such loan becomes immediately due. The Company’s broker dealer subsidiaries enter into lending arrangements with clients through the normal course of business, which are primarily based on customer margin levels. Margin loans are reported at the unpaid principal balance within receivables. The Company monitors the market value of collateral supporting the margin loans and requests additional collateral when necessary in order to mitigate the risk of loss. As there is minimal risk of loss related to margin loans, the allowance for loan losses is immaterial. Nonaccrual Loans Generally, loans are evaluated for or placed on nonaccrual status when either the collection of interest or principal has become 90 days past due or is otherwise considered doubtful of collection. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Interest payments received on loans on nonaccrual status are generally applied to principal unless the remaining principal balance has been determined to be fully collectible. Revolving unsecured consumer lines are charged off at 180 days past due. Closed-end consumer loans, other than loans secured by one to four family properties, are charged off at 120 days past due and are generally not placed on nonaccrual status. Loans secured by one to four family properties are impaired when management determines the assets are uncollectible and commences foreclosure proceedings on the property, at which time the loan is written down to fair value less selling costs and recorded as real estate owned in other assets. Commercial mortgage loans are evaluated for impairment when the loan is considered for nonaccrual status, restructured or foreclosure proceedings are initiated on the property. If it is determined that the fair value is less than the current loan balance, it is written down to fair value less selling costs. Foreclosed property is recorded as real estate owned in other assets. Syndicated loans are placed on nonaccrual status when management determines it will not collect all contractual principal and interest on the loan. Allowance for Loan Losses Management determines the adequacy of the allowance for loan losses based on the overall loan portfolio composition, recent and historical loss experience, and other pertinent factors, including when applicable, internal risk ratings, loan-to-value (“LTV”) ratios, FICO scores of the borrower, debt service coverage and occupancy rates, along with economic and market conditions. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change. The Company determines the amount of the allowance based on management’s assessment of relative risk characteristics of the loan portfolio. The allowance is recorded for homogeneous loan categories on a pool basis, based on an analysis of product mix and risk characteristics of the portfolio, including geographic concentration, bankruptcy experiences, and historical losses, adjusted for current trends and market conditions. While the Company attributes portions of the allowance to specific loan pools as part of the allowance estimation process, the entire allowance is available to absorb losses inherent in the total loan portfolio. The allowance is increased through provisions charged to net investment income and reduced/increased by net charge-offs/recoveries. In determining the allowance for loan losses for advisor loans, the Company considers its historical collection experience as well as other factors including amounts due at termination, the reasons for the terminated relationship, length of time since termination, and the former financial advisor’s overall financial position. Concerns regarding the recoverability of these loans primarily arise in the event that the financial advisor is no longer affiliated with the Company. When the review of these factors indicates that further collection activity is highly unlikely, the outstanding balance of the loan is written-off and the related allowance is reduced. The provision for loan losses on advisor loans is recorded in distribution expenses. Impaired Loans The Company considers a loan to be impaired when, based on current information and events, it is probable the Company will not be able to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. Impaired loans may also include loans that have been modified in troubled debt restructurings as a concession to borrowers experiencing financial difficulties. Management evaluates for impairment all restructured loans and loans with higher impairment risk factors. Factors used by the Company to determine whether all amounts due on commercial mortgage loans will be collected, include but are not limited to, the financial condition of the borrower, performance of the underlying properties, collateral and/or guarantees on the loan, and the borrower’s estimated future ability to pay based on property type and geographic location. The evaluation of impairment on consumer loans is primarily driven by delinquency status of individual loans. The impairment recognized is measured as the excess of the loan’s recorded investment over: (i) the present value of its expected principal and interest payments discounted at the loan’s effective interest rate, (ii) the fair value of collateral or (iii) the loan’s observable market price. Restructured Loans A loan is classified as a restructured loan when the Company makes certain concessionary modifications to contractual terms for borrowers experiencing financial difficulties. When the interest rate, minimum payments, and/or due dates have been modified in an attempt to make the loan more affordable to a borrower experiencing financial difficulties, the modification is considered a troubled debt restructuring. Generally, performance prior to the restructuring or significant events that coincide with the restructuring are considered in assessing whether the borrower can meet the new terms which may result in the loan being returned to accrual status at the time of the restructuring or after a performance period. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status. Separate Account Assets and Liabilities Separate account assets and liabilities are primarily funds held for the benefit of variable annuity contractholders and variable life insurance policyholders, who have a contractual right to receive the benefits of their contract or policy and bear the related investment risk. Gains and losses on separate account assets accrue directly to the contractholder or policyholder and are not reported in the Company’s Consolidated Statements of Operations. Separate account assets are recorded at fair value. Changes in the fair value of separate account assets are offset by changes in the related separate account liabilities. Included in separate account assets and liabilities is the fair value of the pooled pension funds that are offered by Threadneedle. Restricted and Segregated Cash and Investments Amounts segregated under federal and other regulations are held in special reserve bank accounts for the exclusive benefit of the Company’s brokerage customers. Land, Buildings, Equipment and Software Land, buildings, equipment and internally developed or purchased software are carried at cost less accumulated depreciation or amortization and are reflected within other assets. The Company uses the straight-line method of depreciation and amortization over periods ranging from three to 39 years. At December 31, 2017 and 2016 , land, buildings, equipment and software were $626 million and $607 million , respectively, net of accumulated depreciation of $1.9 billion and $1.8 billion , respectively. Depreciation and amortization expense for the years ended December 31, 2017 , 2016 and 2015 was $141 million , $149 million and $150 million , respectively. Capitalized lease assets, net of accumulated depreciation, are included in land, buildings, equipment and software, and capital lease obligations are included in long-term debt. Goodwill and Other Intangible Assets Goodwill represents the amount of an acquired company’s acquisition cost in excess of the fair value of assets acquired and liabilities assumed. The Company evaluates goodwill for impairment annually on the measurement date of July 1 and whenever events and circumstances indicate that an impairment may have occurred, such as a significant adverse change in the business climate or a decision to sell or dispose of a reporting unit. Impairment is the amount carrying value exceeds fair value and is evaluated at the reporting unit level. The Company assesses various qualitative factors to determine whether impairment is likely to have occurred. If impairment were to occur, the Company would use the discounted cash flow method, a variation of the income approach. Intangible assets are amortized over their estimated useful lives unless they are deemed to have indefinite useful lives. The Company evaluates the definite lived intangible assets remaining useful lives annually and tests for impairment whenever events and circumstances indicate that an impairment may have occurred, such as a significant adverse change in the business climate. For definite lived intangible assets, impairment to fair value is recognized if the carrying amount is not recoverable. Indefinite lived intangibles are also tested for impairment annually or whenever circumstances indicate an impairment may have occurred. Goodwill and other intangible assets are reflected in other assets. Derivative Instruments and Hedging Activities Freestanding derivative instruments are recorded at fair value and are reflected in other assets or other liabilities. The Company’s policy is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. The Company primarily uses derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. The Company occasionally designates derivatives as (i) hedges of changes in the fair value of assets, liabilities, or firm commitments (“fair value hedges”), (ii) hedges of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedges”), or (iii) hedges of foreign currency exposures of net investments in foreign operations (“net investment hedges in foreign operations”). Derivative instruments that are entered into for hedging purposes are designated as such at the time the Company enters into the contract. For all derivative instruments that are designated for hedging activities, the Company documents all of the hedging relationships between the hedge instruments and the hedged items at the inception of the relationships. Management also documents its risk management objectives and strategies for entering into the hedge transactions. The Company assesses, at inception and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of hedged items. If it is determined that a derivative is no longer highly effective as a hedge, the Company will discontinue the application of hedge accounting. For derivative instruments that do not qualify for hedge accounting or are not designated as accounting hedges, changes in fair value are recognized in current period earnings. Changes in fair value of derivatives are presented in the Consolidated Statements of Operations based on the nature and use of the instrument. Changes in fair value of derivatives used as economic hedges are presented in the Consolidated Statements of Operations with the corresponding change in the hedged asset or liability. For derivative instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as changes in the fair value of the hedged assets, liabilities or firm commitments, are recognized on a net basis in current period earnings. The carrying value of the hedged item is adjusted for the change in fair value from the designated hedged risk. If a fair value hedge designation is removed or the hedge is terminated prior to maturity, previous adjustments to the carrying value of the hedged item are recognized into earnings over the remaining life of the hedged item. For derivative instruments that qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is reported in AOCI and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Operations with the hedged instrument or transaction impact. Any ineffective portion of the gain or loss is reported in current period earnings as a component of net investment income. If a hedge designation is removed or a hedge is terminated prior to maturity, the amount previously recorded in AOCI is reclassified to earnings over the period that the hedged item impacts earnings. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in AOCI are recognized in earnings immediately. For derivative instruments that qualify as net investment hedges in foreign operations, the effective portion of the change in fair value of the derivatives is recorded in AOCI as part of the foreign currency translation adjustment. Any ineffective portion of the net investment hedges in foreign operations is recognized in net investment income during the period of change. The equity component of indexed annuities, indexed universal life (“IUL”) and stock market certificate obligations are considered embedded derivatives. Additionally, certain annuities contain guaranteed minimum accumulation benefit (“GMAB”) and guaranteed minimum withdrawal benefit (“GMWB”) provisions. The GMAB and the non-life contingent benefits associated with GMWB provisions are also considered embedded derivatives. See Note 14 for information regarding the Company’s fair value measurement of derivative instruments and Note 16 for the impact of derivatives on the Consolidated Statements of Operations. Deferred Acquisition Costs The Company incurs costs in connection with acquiring new and renewal insurance and annuity businesses. The portion of these costs which are incremental and direct to the acquisition of a new or renewal insurance policy or annuity contract are deferred. Significant costs capitalized include sales based compensation related to the acquisition of new and renewal insurance policies and annuity contracts, medical inspection costs for successful sales, and a portion of employee compensation and benefit costs based upon the amount of time spent on successful sales. Sales based compensation paid to advisors and employees and third-party distributors is capitalized. Employee compensation and benefits costs which are capitalized relate primarily to sales efforts, underwriting and processing. All other costs which are not incremental direct costs of acquiring an insurance policy or annuity contract are expensed as incurred. The DAC associated with insurance policies or annuity contracts that are significantly modified or internally replaced with another contract are accounted for as contract terminations. These transactions are anticipated in establishing amortization periods and other valuation assumptions. The Company monitors other DAC amortization assumptions, such as persistency, mortality, morbidity, interest margin, variable annuity benefit utilization and maintenance expense levels each quarter and, when assessed independently, each could impact the Company’s DAC balances. The analysis of DAC balances and the corresponding amortization is a dynamic process that considers all relevant factors and assumptions described previously. Unless the Company’s management identifies a significant deviation over the course of the quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year. Non-Traditional Long-Duration Products For non-traditional long-duration products (including variable and fixed deferred annuity contracts, universal life (“UL”) and variable universal life (“VUL”) insurance products), DAC are amortized based on projections of estimated gross profits (“EGPs”) over amortization periods equal to the approximate life of the business. EGPs vary based on persistency rates (assumptions at which contractholders and policyholders are expected to surrender, make withdrawals from and make deposits to their contracts), mortality levels, client asset value growth rates (based on equity and bond market performance), variable annuity benefit utilization and interest margins (the spread between earned rates on invested assets and rates credited to contractholder and policyholder accounts) and are management’s best estimates. Management regularly monitors financial market conditions and actual contractholder and policyholder behavior experience and compares them to its assumptions. These assumptions are updated whenever it appears that earlier estimates should be revised. When assumptions are changed, the percentage of EGPs used to amortize DAC might also change. A change in the required amortization percentage is applied retrospectively; an increase in amortization percentage will result in a decrease in the DAC balance and an increase in DAC amortization expense, while a decrease in amortization percentage will result in an increase in the DAC balance and a decrease in DAC amortization expense. The impact on results of operations of changing assumptions can be either positive or negative in any particular period and is reflected in the period in which such changes are made. At each balance sheet date, the DAC balance is adjusted for the effect that would result from the realization of unrealized gains or losses impacting EGPs, with the related change recognized through AOCI. The client asset value growth rates are the rates at which variable annuity and VUL insurance contract values invested in separate accounts are assumed to appreciate in the future. The rates used vary by equity and fixed income investments. Management reviews and, where appropriate, adjusts its assumptions with respect to client asset value growth rates on a regular basis. The Company typically uses a five-year mean reversion process as a guideline in setting near-term equity fund growth rates based on a long-term view of financial market performance as well as recent actual performance. The suggested near-term equity fund growth rate is reviewed quarterly to ensure consistency with management’s assessment of anticipated equity market performance. DAC amortization expense recorded in a period when client asset value growth rates exceed management’s near-term estimate will typically be less than in a period when growth rates fall short of management’s near-term estimate. Traditional Long-Duration Products For traditional long-duration products (including traditional life and disability income (“DI”) insurance products), DAC are generally amortized as a percentage of premiums over amortization periods equal to the premium paying period. The assumptions made in calculating the DAC balance and DAC amortization expense are consistent with those used in determining the liabilities. For traditional life and DI insurance products, the assumptions provide for adverse deviations in experience and are revised only if management concludes experience will be so adverse that DAC are not recoverable. If management concludes that DAC are not recoverable, DAC are reduced to the amount that is recoverable based on best estimate assumptions and there is a corresponding expense recorded in the Consolidated Statements of Operations. Deferred Sales Inducement Costs Sales inducement costs consist of bonus interest credits and premium credits added to certain annuity contract and insurance policy values. These benefits are capitalized to the extent they are incremental to amounts that would be credited on similar contracts without the applicable feature. The amounts capitalized are amortized using the same methodology and assumptions used to amortize DAC. DSIC is recorded in other assets, and amortization of DSIC is recorded |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements [Text Block] | Recent Accounting Pronouncements Adoption of New Accounting Standards Statement of Cash Flows – Restricted Cash In November 2016, the Financial Accounting Standards Board (“FASB”) updated the accounting standards related to the classification of restricted cash on the statement of cash flows. The update requires entities to include restricted cash and restricted cash equivalents in cash and cash equivalent balances on the statement of cash flows and disclose a reconciliation between the balances on the statement of cash flows and the balance sheet. The standard is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The Company early adopted the standard for the interim period ended March 31, 2017 on a retrospective basis. As a result of the adoption of the standard, restricted cash balances of $2.5 billion and $2.9 billion at December 31, 2017 and 2016 , respectively, are included in the cash and cash equivalents balances on the Company’s consolidated statements of cash flows. The impact of the change in restricted cash resulted in a $358 million increase and a $66 million decrease to the Company’s operating cash flows for the years ended December 31, 2016 and 2015 , respectively. Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB updated the accounting standards related to classification of certain cash receipts and cash payments on the statement of cash flows. The update includes amendments to address diversity in practice for the classification of eight specific cash flow activities. The specific amendments the Company evaluated include the classification of debt prepayment and extinguishment costs, contingent consideration payments, proceeds from insurance settlements and corporate owned life insurance settlements, distributions from equity method investees and the application of the predominance principle to separately identifiable cash flows. The standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted and all amendments must be adopted during the same period. The Company early adopted the standard for the interim period ended March 31, 2017 on a retrospective basis. The adoption of the standard did not have a material impact on the Company’s operating, investing or financing cash flows. Compensation – Stock Compensation In March 2016, the FASB updated the accounting standards related to employee share-based payments. The update requires all excess tax benefits and tax deficiencies to be recognized as income tax expense or benefit in the income statement. This change is required to be applied prospectively to excess tax benefits and tax deficiencies resulting from settlements after the date of adoption. No adjustment is recorded for any excess tax benefits or tax deficiencies previously recorded in additional paid in capital. The update also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows. This provision can be applied on either a prospective or retrospective basis. The update permits entities to make an accounting policy election to recognize forfeitures as they occur rather than estimating forfeitures to determine the recognition of expense for share-based payment awards. The standard is effective for interim and annual periods beginning after December 15, 2016 with early adoption permitted. The Company adopted the standard on January 1, 2017 on a prospective basis, except for the cash flow statement provision, which the Company applied on a retrospective basis. During periods in which the settlement date value differs materially from the grant date fair value of certain share-based payment awards, the Company may experience volatility in income tax recognized in its consolidated results of operations. During the year ended December 31, 2017 , the Company recognized net excess tax benefits of $70 million as a reduction to the income tax provision in the consolidated statements of operations. The Company maintained its accounting policy of estimating forfeitures. As a result of the adoption of the standard, net excess tax benefits of $70 million , $14 million and $81 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, are included in the Other, net line within operating cash flows on the Company’s consolidated statements of cash flows. Consolidation In February 2015, the FASB updated the accounting standard for consolidation. The update changes the accounting for the consolidation model for limited partnerships and VIEs and excludes certain money market funds from the consolidation analysis. Specific to the consolidation analysis of a VIE, the update clarifies consideration of fees paid to a decision maker and amends the related party guidance. The Company adopted the standard on January 1, 2016 using the modified retrospective approach. The adoption resulted in the deconsolidation of several CLOs and all property funds with a decrease of approximately $6.2 billion of assets, $4.9 billion of liabilities and $1.3 billion of equity (noncontrolling interests and appropriated retained earnings of consolidated investment entities). Effective January 1, 2016, intercompany amounts between the Company and the deconsolidated CLOs and property funds are no longer eliminated in consolidation. In August 2014, the FASB updated the accounting standard related to consolidation of collateralized financing entities. The update applies to reporting entities that consolidate a collateralized financing entity and measures all financial assets and liabilities of the collateralized financing entity at fair value. The update provides a measurement alternative which would allow an entity to measure both the financial assets and financial liabilities at the fair value of the more observable of the fair value of the financial assets or financial liabilities. When the measurement alternative is elected, the reporting entity’s net income should reflect its own economic interests in the collateralized financing entity, including changes in the fair value of the beneficial interests retained by the reporting entity and beneficial interests that represent compensation for services. If the measurement alternative is not elected, the financial assets and financial liabilities should be measured separately in accordance with the requirements of the fair value accounting standard. Any difference in the fair value of the assets and liabilities would be recorded to net income attributable to the reporting entity. The Company adopted the standard on January 1, 2016 and elected the measurement alternative using the modified retrospective approach. The adoption of the standard did not have a material impact on the Company’s consolidated results of operations and financial condition after the deconsolidation of several CLOs noted above. Future Adoption of New Accounting Standards Income Statement – Reporting Comprehensive Income In February 2018, the FASB updated the accounting standards related to the presentation of tax effects stranded in OCI. The update allows a reclassification from AOCI to retained earnings for tax effects stranded in AOCI resulting from the Tax Act. The update is optional and entities may elect not to reclassify the stranded tax effects. The update is effective for fiscal years beginning after December 15, 2018. Entities may elect to record the impacts either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. Early adoption is permitted in any period. The Company is currently evaluating the impact of the update on its consolidated financial condition. Derivatives and Hedging – Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB updated the accounting standards to amend the hedge accounting recognition and presentation requirements. The objectives of the update are to better align the financial reporting of hedging relationships to the economic results of an entity’s risk management activities and simplify the application of the hedge accounting guidance. The update also adds new disclosures and amends existing disclosure requirements. The standard is effective for interim and annual periods beginning after December 15, 2018, and should be applied on a modified retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated results of operations and financial condition. Receivables – Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB updated the accounting standards to shorten the amortization period for certain purchased callable debt securities held at a premium. Under current guidance, premiums are generally amortized over the contractual life of the security. The amendments require the premium to be amortized to the earliest call date. The update applies to securities with explicit, non-contingent call features that are callable at fixed prices and on preset dates. The standard is effective for interim and annual periods beginning after December 15, 2018, and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption is permitted. The update is not expected to have a material impact on the Company’s consolidated results of operations or financial condition. Intangibles – Goodwill and Other – Simplifying the Test for Goodwill Impairment In January 2017, the FASB updated the accounting standards to simplify the accounting for goodwill impairment. The update removes the hypothetical purchase price allocation (Step 2) of the goodwill impairment test. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value. The standard is effective for interim and annual periods beginning after December 15, 2019, and should be applied prospectively with early adoption permitted for any impairment tests performed after January 1, 2017. The update is not expected to have a material impact on the Company’s consolidated results of operations or financial condition. Income Taxes – Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB updated the accounting standards related to the recognition of income tax impacts on intra-entity transfers. The update requires entities to recognize the income tax consequences of intra-entity transfers, other than inventory, upon the transfer of the asset. The update requires the selling entity to recognize a current tax expense or benefit and the purchasing entity to recognize a deferred tax asset or liability when the transfer occurs. The standard is effective for interim and annual periods beginning after December 15, 2017. The Company adopted the standard on January 1, 2018. The adoption of the standard did not have an impact on the Company’s consolidated results of operations or financial condition. Financial Instruments – Measurement of Credit Losses In June 2016, the FASB updated the accounting standards related to accounting for credit losses on certain types of financial instruments. The update replaces the current incurred loss model for estimating credit losses with a new model that requires an entity to estimate the credit losses expected over the life of the asset. Generally, the initial estimate of the expected credit losses and subsequent changes in the estimate will be reported in current period earnings and recorded through an allowance for credit losses on the balance sheet. The current credit loss model for Available-for-Sale debt securities does not change; however, the credit loss calculation and subsequent recoveries are required to be recorded through an allowance. The standard is effective for interim and annual periods beginning after December 15, 2019. Early adoption will be permitted for interim and annual periods beginning after December 15, 2018. A modified retrospective cumulative adjustment to retained earnings should be recorded as of the first reporting period in which the guidance is effective for loans, receivables, and other financial instruments subject to the new expected credit loss model. Prospective adoption is required for establishing an allowance related to Available-for-Sale debt securities, certain beneficial interests, and financial assets purchased with a more-than-insignificant amount of credit deterioration since origination. The Company is currently evaluating the impact of the standard on its consolidated results of operations and financial condition. Leases – Recognition of Lease Assets and Liabilities on Balance Sheet In February 2016, the FASB updated the accounting standards for leases. The update was issued to increase transparency and comparability for the accounting of lease transactions. The standard will require most lease transactions for lessees to be recorded on the balance sheet as lease assets and lease liabilities and both quantitative and qualitative disclosures about leasing arrangements. The Company currently discloses information related to operating lease arrangements within Note 23. The standard is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. The update should be applied at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of the standard on its consolidated results of operations and financial condition. Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB updated the accounting standards on the recognition and measurement of financial instruments. The update requires entities to carry marketable equity securities, excluding investments in securities that qualify for the equity method of accounting, at fair value with changes in fair value reflected in net income each reporting period. The update affects other aspects of accounting for equity instruments, as well as the accounting for financial liabilities utilizing the fair value option. The update eliminates the requirement to disclose the methods and assumptions used to estimate the fair value of financial assets or liabilities held at cost on the balance sheet and requires entities to use the exit price notion when measuring the fair value of financial instruments. The standard is effective for interim and annual periods beginning after December 15, 2017. The Company adopted the standard on January 1, 2018 using a modified retrospective approach. The adoption of the standard did not have a material impact on the Company’s consolidated results of operations or financial condition. Revenue from Contracts with Customers In May 2014, the FASB updated the accounting standards for revenue from contracts with customers. The update provides a five-step revenue recognition model for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers (unless the contracts are in the scope of other standards). The standard also updates the accounting for certain costs associated with obtaining and fulfilling a customer contract and requires disclosure of quantitative and qualitative information that enables users of financial statements to understand the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. The standard is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted for interim and annual periods beginning after December 15, 2016. The standard may be applied retrospectively for all periods presented or retrospectively with a cumulative-effect adjustment at the date of adoption. The Company adopted the revenue recognition guidance on a retrospective basis on January 1, 2018. The update does not apply to revenue associated with the manufacturing of insurance and annuity products or financial instruments as these revenues are in the scope of other standards. Therefore, the update did not have an impact on these revenues. The Company’s implementation efforts included the identification of revenue within the guidance and the review of the customer contracts to determine the Company’s performance obligation and the associated timing of each performance obligation. The Company has determined that certain payments received primarily related to franchise advisor fees should be presented as revenue rather than a reduction of expense. The Company expects the impact of this change to be an increase to both revenues and expenses of approximately $95 million to $120 million on an annual basis for the years ended December 31, 2017 and 2016. The adoption of the standard will not have other material impacts on the Company’s consolidated results of operations and financial condition. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2017 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities [Text Block] | Variable Interest Entities The Company provides asset management services to investment entities which are considered to be VIEs, such as collaterized loan obligations (“CLOs”), hedge funds, property funds, certain non-U.S. series funds (Open Ended Investment Companies and Societes d’Investissement A Capital Variable) and private equity funds (collectively, “investment entities”), which are sponsored by the Company. In addition, the Company invests in structured investments other than CLOs and certain affordable housing partnerships which are considered VIEs. The Company consolidates certain investment entities (collectively, “consolidated investment entities”) if the Company is deemed to be the primary beneficiary. The Company has no obligation to provide financial or other support to the non-consolidated VIEs beyond its investment nor has the Company provided any support to these entities. See Note 2 for further discussion of the Company’s accounting policy on consolidation. CLOs CLOs are asset backed financing entities collateralized by a pool of assets, primarily syndicated loans and, to a lesser extent, high-yield bonds. Multiple tranches of debt securities are issued by a CLO, offering investors various maturity and credit risk characteristics. The debt securities issued by the CLOs are non-recourse to the Company. The CLO’s debt holders have recourse only to the assets of the CLO. The assets of the CLOs cannot be used by the Company. Scheduled debt payments are based on the performance of the CLO’s collateral pool. The Company earns management fees from the CLOs based on the CLO’s collateral pool and, in certain instances, may also receive incentive fees. The fee arrangement is at market and commensurate with the level of effort required to provide those services. The Company has invested in a portion of the unrated, junior subordinated notes of certain CLOs. The Company's maximum exposure to loss with respect to non-consolidated CLOs is limited to its amortized cost, which was $6 million and $9 million as of December 31, 2017 and 2016, respectively. The Company classifies these investments as Available-for-Sale securities. See Note 5 for additional information on these investments. Property Funds The Company provides investment advice and related services to property funds some of which are considered VIEs. 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 fee arrangement is at market and commensurate with the level of effort required to provide those services. The Company does not have a significant economic interest and is not required to consolidate any of the property funds. The carrying value of the Company’s investment in property funds is reflected in other investments and was $24 million and $26 million as of December 31, 2017 and 2016, respectively. Hedge Funds and Private Equity Funds The Company has determined that consolidation is not required for hedge funds and private equity funds which are sponsored by the Company and considered VIEs. For investment management services, the Company earns management fees based on the market value of assets under management, and in certain instances may also receive performance-based fees. The fee arrangement is at market and commensurate with the level of effort required to provide those services and the Company does not have a significant economic interest in any fund. The Company's maximum exposure to loss with respect to its investment in these entities is limited to its carrying value. The carrying value of the Company’s investment in these entities is reflected in other investments and was $7 million and $13 million as of December 31, 2017 and 2016, respectively. Non-U.S. Series Funds The Company manages non-U.S. series funds, which are considered VIEs. For investment management services, the Company earns management fees based on the market value of assets under management, and in certain instances may also receive performance-based fees. The fee arrangement is at market and commensurate with the level of effort required to provide those services. The Company does not consolidate these funds and its maximum exposure to loss is limited to its carrying value. The carrying value of the Company’s investment in these funds is reflected in other investments and was $25 million and $33 million as of December 31, 2017 and 2016, respectively. Affordable Housing Partnerships and Other Real Estate Partnerships The Company is a limited partner in affordable housing partnerships that qualify for government-sponsored low income housing tax credit programs and partnerships that invest in multi-family residential properties that were originally developed with an affordable housing component. The Company has determined it is not the primary beneficiary and therefore does not consolidate these partnerships. A majority of the limited partnerships are VIEs. The Company’s maximum exposure to loss as a result of its investment in the VIEs is limited to the carrying value. The carrying value is reflected in other investments and was $408 million and $482 million as of December 31, 2017 and 2016 , respectively. The Company had a $97 million and $135 million liability recorded as of December 31, 2017 and 2016 , respectively, related to original purchase commitments not yet remitted to the VIEs. The Company has not provided any additional support and is not contractually obligated to provide additional support to the VIEs beyond the above mentioned funding commitments. Structured Investments The Company invests in structured investments which are considered VIEs for which it is not the sponsor. These structured investments typically invest in fixed income instruments and are managed by third parties and include asset backed securities, commercial mortgage backed securities and residential mortgage backed securities. The Company classifies these investments as Available-for-Sale securities. The Company has determined that it is not the primary beneficiary of these structures due to the size of the Company’s investment in the entities and position in the capital structure of these entities. The Company's maximum exposure to loss as a result of its investment in these structured investments is limited to its carrying value. See Note 5 for additional information on these structured investments. Fair Value of Assets and Liabilities The Company categorizes its fair value measurements according to a three-level hierarchy. See Note 14 for the definition of the three levels of the fair value hierarchy. The following tables present the balances of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis: December 31, 2017 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Corporate debt securities $ — $ 27 $ — $ 27 Common stocks 18 8 4 30 Other investments 5 — — 5 Syndicated loans — 1,889 180 2,069 Total investments 23 1,924 184 2,131 Receivables — 25 — 25 Total assets at fair value $ 23 $ 1,949 $ 184 $ 2,156 Liabilities Debt (1) $ — $ 2,208 $ — $ 2,208 Other liabilities — 63 — 63 Total liabilities at fair value $ — $ 2,271 $ — $ 2,271 December 31, 2016 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Corporate debt securities $ — $ 19 $ — $ 19 Common stocks 22 6 5 33 Other investments 4 — — 4 Syndicated loans — 1,944 254 2,198 Total investments 26 1,969 259 2,254 Receivables — 11 — 11 Total assets at fair value $ 26 $ 1,980 $ 259 $ 2,265 Liabilities Debt (1) $ — $ 2,319 $ — $ 2,319 Other liabilities — 95 — 95 Total liabilities at fair value $ — $ 2,414 $ — $ 2,414 (1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.2 billion and $2.3 billion as of December 31, 2017 and 2016, respectively. 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 Balance, January 1, 2017 $ — $ 5 $ 254 Total gains (losses) included in: Net income — (1 ) (1) — Purchases — 3 146 Sales (2 ) (2 ) (28 ) Settlements — — (70 ) Transfers into Level 3 2 7 266 Transfers out of Level 3 — (8 ) (388 ) Balance, December 31, 2017 $ — $ 4 $ 180 Changes in unrealized gains (losses) included in income relating to assets and liabilities held at December 31, 2017 $ — $ (1 ) (1) $ (1 ) (1) Common Stocks Syndicated Loans Other Assets Debt (in millions) Balance, January 1, 2016 $ 3 $ 529 $ 2,065 $ (6,630 ) Cumulative effect of change in accounting policies (2) (2 ) (304 ) (2,065 ) 6,630 Balance, January 1, 2016, as adjusted 1 225 — — Total gains (losses) included in: Net income 2 (1) 7 (1) 1 (3) — Purchases 1 145 — — Sales — (24 ) (1 ) — Settlements — (69 ) — — Transfers into Level 3 3 405 — — Transfers out of Level 3 (2 ) (435 ) — — Balance, December 31, 2016 $ 5 $ 254 $ — $ — Changes in unrealized gains (losses) included in income relating to assets and liabilities held at December 31, 2016 $ 1 (1) $ 3 (1) $ — $ — Common Stocks Syndicated Loans Other Assets Debt (in millions) Balance, January 1, 2015 $ 7 $ 484 $ 1,935 $ (6,030 ) Total gains (losses) included in: Net income (1 ) (1) (24 ) (1) 170 (3) 215 (1) Other comprehensive income (loss) — — (154 ) — Purchases — 303 638 — Sales — (36 ) (524 ) — Issues — — — (1,267 ) Settlements — (161 ) — 452 Transfers into Level 3 7 776 — — Transfers out of Level 3 (10 ) (813 ) — — Balance, December 31, 2015 $ 3 $ 529 $ 2,065 $ (6,630 ) Changes in unrealized gains (losses) included in income relating to assets and liabilities held at December 31, 2015 $ — $ (19 ) (1) $ 20 (3) $ 219 (1) (1) Included in net investment income in the Consolidated Statements of Operations. (2) The cumulative effect of change in accounting policies includes the adoption impact of ASU 2015-02 and ASU 2014-13 – Consolidation: Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity (“ASU 2014-13”). (3) Included in other revenues in the Consolidated Statements of Operations. Securities and loans transferred from Level 3 primarily represent assets with fair values that are now obtained from a third-party pricing service with observable inputs or priced in active markets. Securities and loans transferred to Level 3 represent assets with fair values that are now based on a single non-binding broker quote. 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. All Level 3 measurements as of December 31, 2017 and 2016 were obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company. Determination of Fair Value Assets Investments The fair value of syndicated loans obtained from third-party pricing services using a market approach with observable inputs is classified as Level 2. The fair value of syndicated loans obtained from third-party pricing services with a single non-binding broker quote as the underlying valuation source is classified as Level 3. The underlying inputs used in non-binding broker quotes are not readily available to the Company. In consideration of the above, management is responsible for the fair values recorded on the financial statements. Prices received from third party pricing services are subjected to exception reporting that identifies loans with significant daily price movements as well as no movements. The Company reviews the exception reporting and resolves the exceptions through reaffirmation of the price or recording an appropriate fair value estimate. The Company also performs subsequent transaction testing. The Company performs annual due diligence of the third party pricing services. The Company’s due diligence procedures include assessing the vendor’s valuation qualifications, control environment, analysis of asset-class specific valuation methodologies and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. The Company also considers the results of its exception reporting controls and any resulting price challenges that arise. See Note 14 for a description of the Company’s determination of the fair value of corporate debt securities, common stocks and other investments. Receivables For receivables of the consolidated CLOs, the carrying value approximates fair value as the nature of these assets has historically been short term and the receivables have been collectible. The fair value of these receivables is classified as Level 2. Other Assets At December 31, 2015 , other assets primarily consisted of properties held in consolidated property funds managed by Threadneedle and were classified as Level 3. The property funds were deconsolidated effective January 1, 2016 upon the adoption of ASU 2015-02. Liabilities Debt Effective January 1, 2016, the Company adopted ASU 2014-13 and elected the measurement alternative, which allows an entity to measure both the financial assets and financial liabilities at the fair value of the more observable of the fair value of the financial assets or financial liabilities. See Note 3 for additional information on ASU 2014-13. The fair value of the CLOs’ assets, typically syndicated bank loans, is more observable than the fair value of the CLOs’ debt tranches for which market activity is limited and less transparent. As a result, the fair value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. Under ASU 2014-13, the fair value of the CLOs’ debt is classified as Level 2. Prior to adoption of ASU 2014-13, the fair value of the CLOs’ debt was determined using a discounted cash flow model. Inputs used to determine the expected cash flows included assumptions about default, discount, prepayment and recovery rates of the CLOs’ underlying assets. Given the significance of the unobservable inputs to this fair value measurement, the fair value of the CLOs’ debt was classified as Level 3 prior to adoption of ASU 2014-13. Other Liabilities Other liabilities consist primarily of securities purchased but not yet settled held by consolidated CLOs. The carrying value approximates fair value as the nature of these liabilities has historically been short term. The fair value of these liabilities is classified as Level 2. Fair Value Option The Company has elected the fair value option for the financial assets and liabilities of the consolidated CLOs. Management believes that the use of the fair value option better matches the changes in fair value of assets and liabilities related to the CLOs. The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected: December 31, 2017 2016 (in millions) Syndicated loans Unpaid principal balance $ 2,140 $ 2,281 Excess unpaid principal over fair value (71 ) (83 ) Fair value $ 2,069 $ 2,198 Fair value of loans more than 90 days past due $ 24 $ 8 Fair value of loans in nonaccrual status 24 8 Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both 35 34 Debt Unpaid principal balance $ 2,342 $ 2,459 Excess unpaid principal over fair value (134 ) (140 ) Carrying value (1) $ 2,208 $ 2,319 (1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.2 billion and $2.3 billion as of December 31, 2017 and December 31, 2016 , respectively. Interest income from syndicated loans, bonds and structured investments is recorded based on contractual rates in net investment income. Gains and losses related to changes in the fair value of investments and gains and losses on sales of investments are also recorded in net investment income. Interest expense on debt is recorded in interest and debt expense with gains and losses related to changes in the fair value of debt recorded in net investment income. Total net gains (losses) recognized in net investment income related to changes in the fair value of financial assets and liabilities for which the fair value option was elected were $(5) million , $(38) million and $(35) million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Debt of the consolidated investment entities and the stated interest rates were as follows: Carrying Value Weighted Average Interest Rate December 31, December 31, 2017 2016 2017 2016 (in millions) Debt of consolidated CLOs due 2025-2026 $ 2,208 $ 2,319 2.8 % 2.5 % The debt of the consolidated CLOs has both fixed and floating interest rates, which range from 0% to 7.4% . The interest rates on the debt of CLOs are weighted average rates based on the outstanding principal and contractual interest rates. At December 31, 2017 , future maturities of debt were as follows: (in millions) 2018 $ — 2019 54 2020 — 2021 — 2022 — Thereafter 2,288 Total future maturities $ 2,342 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments [Text Block] | Investments The following is a summary of investments: December 31, 2017 2016 (in millions) Available-for-Sale securities, at fair value $ 30,927 $ 30,719 Mortgage loans, net 2,756 2,986 Policy and certificate loans 845 831 Other investments 1,397 1,298 Total $ 35,925 $ 35,834 The following is a summary of net investment income: Years Ended December 31, 2017 2016 2015 (in millions) Investment income on fixed maturities $ 1,349 $ 1,368 $ 1,403 Net realized gains (losses) 46 6 4 Affordable housing partnerships (100 ) (44 ) (18 ) Other 108 91 68 Consolidated investment entities 106 155 231 Total $ 1,509 $ 1,576 $ 1,688 Available-for-Sale securities distributed by type were as follows: Description of Securities December 31, 2017 Amortized Gross Gross Fair Value Noncredit OTTI (1) (in millions) Corporate debt securities $ 13,976 $ 1,131 $ (32 ) $ 15,075 $ — Residential mortgage backed securities 6,585 63 (37 ) 6,611 — Commercial mortgage backed securities 4,362 48 (36 ) 4,374 — Asset backed securities 1,549 36 (5 ) 1,580 1 State and municipal obligations 2,215 259 (11 ) 2,463 — U.S. government and agency obligations 502 1 — 503 — Foreign government bonds and obligations 298 20 (4 ) 314 — Common stocks 5 3 (1 ) 7 — Total $ 29,492 $ 1,561 $ (126 ) $ 30,927 $ 1 Description of Securities December 31, 2016 Amortized Gross Gross Fair Value Noncredit (1) (in millions) Corporate debt securities $ 15,231 $ 1,065 $ (60 ) $ 16,236 $ — Residential mortgage backed securities 6,899 86 (67 ) 6,918 (3 ) Commercial mortgage backed securities 3,347 59 (39 ) 3,367 — Asset backed securities 1,532 33 (16 ) 1,549 5 State and municipal obligations 2,195 198 (35 ) 2,358 — U.S. government and agency obligations 7 1 — 8 — Foreign government bonds and obligations 251 17 (7 ) 261 — Common stocks 10 13 (1 ) 22 6 Total $ 29,472 $ 1,472 $ (225 ) $ 30,719 $ 8 (1) Represents the amount of other-than-temporary impairment (“OTTI”) losses in AOCI. Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period. As of December 31, 2017 and 2016 , investment securities with a fair value of $1.7 billion and $1.6 billion , respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $803 million and $473 million , respectively, may be sold, pledged or rehypothecated by the counterparty. As of both December 31, 2017 and 2016 , fixed maturity securities comprised approximately 86% 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. As of December 31, 2017 and 2016 , the Company’s internal analysts rated $979 million and $1.1 billion , respectively, of securities using criteria similar to those used by NRSROs. A summary of fixed maturity securities by rating was as follows: Ratings December 31, 2017 December 31, 2016 Amortized Fair Value Percent of Total Fair Value Amortized Fair Value Percent of Total Fair Value (in millions, except percentages) AAA $ 11,293 $ 11,331 37 % $ 9,252 $ 9,305 31 % AA 1,898 2,114 7 1,729 1,906 6 A 4,760 5,243 17 5,157 5,567 18 BBB 10,317 10,989 35 11,739 12,340 40 Below investment grade (1) 1,219 1,243 4 1,585 1,579 5 Total fixed maturities $ 29,487 $ 30,920 100 % $ 29,462 $ 30,697 100 % (1) The amortized cost and fair value of below investment grade securities includes interest in CLOs managed by the Company of $6 million and $7 million , respectively, at December 31, 2017 , and $9 million and $14 million , respectively, at December 31, 2016 . At December 31, 2017 and 2016 , approximately 37% and 47% , respectively, of the securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any other issuer were greater than 10% of total equity. The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position: Description of Securities December 31, 2017 Less than 12 months 12 months or more Total Number of Securities Fair Unrealized Number of Securities Fair Unrealized Number of Securities Fair Unrealized (in millions, except number of securities) Corporate debt securities 150 $ 1,791 $ (8 ) 70 $ 740 $ (24 ) 220 $ 2,531 $ (32 ) Residential mortgage backed securities 102 1,772 (11 ) 130 1,467 (26 ) 232 3,239 (37 ) Commercial mortgage backed securities 67 1,178 (12 ) 58 783 (24 ) 125 1,961 (36 ) Asset backed securities 36 424 (2 ) 26 187 (3 ) 62 611 (5 ) State and municipal obligations 76 141 (1 ) 34 180 (10 ) 110 321 (11 ) Foreign government bonds and obligations 3 6 — 15 23 (4 ) 18 29 (4 ) Common and preferred stocks — — — 4 1 (1 ) 4 1 (1 ) Total 434 $ 5,312 $ (34 ) 337 $ 3,381 $ (92 ) 771 $ 8,693 $ (126 ) Description of Securities December 31, 2016 Less than 12 months 12 months or more Total Number of Securities Fair Unrealized Number of Securities Fair Unrealized Number of Securities Fair Unrealized (in millions, except number of securities) Corporate debt securities 187 $ 2,452 $ (33 ) 38 $ 377 $ (27 ) 225 $ 2,829 $ (60 ) Residential mortgage backed securities 127 2,533 (33 ) 177 1,290 (34 ) 304 3,823 (67 ) Commercial mortgage backed securities 100 1,583 (39 ) 5 43 — 105 1,626 (39 ) Asset backed securities 48 524 (9 ) 27 298 (7 ) 75 822 (16 ) State and municipal obligations 181 374 (14 ) 3 110 (21 ) 184 484 (35 ) Foreign government bonds and obligations 7 30 (1 ) 15 23 (6 ) 22 53 (7 ) Common and preferred stocks — — — 3 1 (1 ) 3 1 (1 ) Total 650 $ 7,496 $ (129 ) 268 $ 2,142 $ (96 ) 918 $ 9,638 $ (225 ) As part of Ameriprise Financial’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities is primarily attributable to tighter credit spreads. The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of 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 OCI: December 31, 2017 2016 2015 (in millions) Beginning balance $ 69 $ 85 $ 98 Credit losses for which an other-than-temporary impairment was not previously recognized — 1 — Credit losses for which an other-than-temporary impairment was previously recognized 1 1 2 Reductions for securities sold during the period (realized) (68 ) (18 ) (15 ) Ending balance $ 2 $ 69 $ 85 Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in earnings were as follows: Years Ended December 31, 2017 2016 2015 (in millions) Gross realized gains $ 63 $ 37 $ 33 Gross realized losses (7 ) (13 ) (19 ) Other-than-temporary impairments (1 ) (2 ) (8 ) Total $ 55 $ 22 $ 6 Other-than-temporary impairments for the years ended December 31, 2017 and 2016 primarily related to credit losses on asset backed securities. Other-than temporary impairments for the year ended December 31, 2015 primarily related to credit losses on corporate debt securities and non-agency residential mortgage backed securities. See Note 18 for a rollforward of net unrealized investment gains (losses) included in AOCI. Available-for-Sale securities by contractual maturity at December 31, 2017 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 2,314 $ 2,333 Due after one year through five years 6,819 7,020 Due after five years through 10 years 3,575 3,701 Due after 10 years 4,283 5,301 16,991 18,355 Residential mortgage backed securities 6,585 6,611 Commercial mortgage backed securities 4,362 4,374 Asset backed securities 1,549 1,580 Common stocks 5 7 Total $ 29,492 $ 30,927 Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities, commercial mortgage backed securities and asset backed securities are not due at a single maturity date. As such, these securities, as well as common stocks, were not included in the maturities distribution. |
Financing Receivables
Financing Receivables | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Financing Receivables [Text Block] | Financing Receivables The Company’s financing receivables include commercial mortgage loans, syndicated loans, consumer loans, policy loans, certificate loans, advisor loans and margin loans. See Note 2 for information regarding the Company’s accounting policies related to loans and the allowance for loan losses. Allowance for Loan Losses Commercial Mortgage Loans, Syndicated Loans and Consumer Loans The following table presents a rollforward of the allowance for loan losses for the years ended and the ending balance of the allowance for loan losses by impairment method: December 31, 2017 2016 2015 (in millions) Beginning balance $ 29 $ 32 $ 35 Charge-offs (2 ) (5 ) (4 ) Provisions (1 ) 2 1 Ending balance $ 26 $ 29 $ 32 Individually evaluated for impairment $ — $ 2 $ 4 Collectively evaluated for impairment 26 27 28 The recorded investment in financing receivables by impairment method was as follows: December 31, 2017 2016 (in millions) Individually evaluated for impairment $ 17 $ 12 Collectively evaluated for impairment 3,258 3,480 Total $ 3,275 $ 3,492 As of December 31, 2017 and 2016 , the Company’s recorded investment in financing receivables individually evaluated for impairment for which there was no related allowance for loan losses was $17 million and $7 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 years ended December 31, 2017 , 2016 and 2015 , the Company purchased $200 million , $92 million and $162 million , respectively, and sold $267 million , $271 million and $16 million , respectively, of loans. See below for further discussion on the sale of consumer loans. The Company has not acquired any loans with deteriorated credit quality as of the acquisition date. Loans to Financial Advisors As of December 31, 2017 and 2016, principal amounts outstanding for advisor loans were $509 million and $426 million , respectively, and allowance for loan losses were $23 million and $18 million , respectively. The allowance for loan losses related to loans to financial advisors is not included in the table disclosures above. Of the gross balance outstanding, the portion associated with financial advisors who are no longer affiliated with the Company was $19 million and $16 million at December 31, 2017 and 2016, respectively. The allowance for loan losses on these loans was $12 million and $10 million at December 31, 2017 and 2016, respectively. Credit Quality Information Nonperforming loans, which are generally loans 90 days or more past due, were $19 million and $15 million as of December 31, 2017 and 2016 , respectively. All other loans were considered to be performing. Commercial Mortgage Loans The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates as necessary. Commercial mortgage loans which management has assigned its highest risk rating were nil of total commercial mortgage loans as of both December 31, 2017 and 2016 . Loans with the highest risk rating represent distressed loans which the Company has identified as impaired or expects to become delinquent or enter into foreclosure within the next six months. In addition, the Company reviews the concentrations of credit risk by region and property type. Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows: Loans Percentage December 31, December 31, 2017 2016 2017 2016 (in millions) East North Central $ 215 $ 198 8 % 7 % East South Central 90 88 3 3 Middle Atlantic 192 203 7 8 Mountain 256 240 9 9 New England 74 91 3 3 Pacific 812 746 29 28 South Atlantic 768 783 28 29 West North Central 235 222 8 8 West South Central 133 131 5 5 2,775 2,702 100 % 100 % Less: allowance for loan losses 19 21 Total $ 2,756 $ 2,681 Concentrations of credit risk of commercial mortgage loans by property type were as follows: Loans Percentage December 31, December 31, 2017 2016 2017 2016 (in millions) Apartments $ 566 $ 504 20 % 19 % Hotel 40 42 1 1 Industrial 476 446 17 17 Mixed use 44 49 2 2 Office 492 489 18 18 Retail 937 950 34 35 Other 220 222 8 8 2,775 2,702 100 % 100 % Less: allowance for loan losses 19 21 Total $ 2,756 $ 2,681 Syndicated Loans The recorded investment in syndicated loans at December 31, 2017 and 2016 was $498 million and $482 million , respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. The primary credit indicator for syndicated loans is whether the loans are performing in accordance with the contractual terms of the syndication. Total nonperforming syndicated loans at December 31, 2017 and 2016 were $5 million and $1 million , respectively. Consumer Loans The recorded investment in consumer loans at December 31, 2017 and 2016 was $2 million and $308 million , respectively. During the years ended December 31, 2017 and 2016 , the Company sold $252 million and $271 million , respectively, of its consumer mortgage loans and recorded a loss of $7 million and $11 million , respectively. The Company considers the credit worthiness of borrowers (FICO score), collateral characteristics such as LTV and geographic concentration in determining the allowance for loan losses for consumer loans. At a minimum, management updates FICO scores and LTV ratios semiannually. As of December 31, 2016, approximately 2% of consumer loans had FICO scores below 640 . Consumer loans with LTV ratios greater than 90% were not material at December 31, 2016. The Company’s most significant geographic concentration for consumer loans was in California, Colorado and Washington, which represented 52% , 18% and 13% , respectively, of the portfolio as of December 31, 2016. No other state represented more than 10% of the total consumer loan portfolio. Consumer loans as of December 31, 2017 were not material. Troubled Debt Restructurings The recorded investment in restructured loans was not material as of December 31, 2017 and 2016 . Troubled debt restructurings did not have a material impact to the Company’s allowance for loan losses or income recognized for the years ended December 31, 2017 , 2016 and 2015 . There are no commitments to lend additional funds to borrowers whose loans have been restructured. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance [Text Block] | Reinsurance The Company reinsures a portion of the insurance risks associated with its traditional life, DI and LTC insurance products through reinsurance agreements with unaffiliated reinsurance companies. Reinsurance contracts do not relieve the Company from its primary obligation to policyholders. The Company generally reinsures 90% of the death benefit liability for new term life insurance policies beginning in 2001 and new individual UL and VUL insurance policies beginning in 2002. Policies issued prior to these dates are not subject to these same reinsurance levels. However, for IUL policies issued after September 1, 2013 and VUL policies issued after January 1, 2014, the Company generally reinsures 50% of the death benefit liability. Similarly, the Company reinsures 50% of the death benefit and morbidity liabilities related to its universal life product with long term care benefits. The maximum amount of life insurance risk the Company will retain is $10 million on a single life and $10 million on any flexible premium survivorship life policy; however, reinsurance agreements are in place such that retaining more than $1.5 million of insurance risk on a single life or a flexible premium survivorship life policy is very unusual. Risk on UL and VUL policies is reinsured on a yearly renewable term basis. Risk on most term life policies starting in 2001 is reinsured on a coinsurance basis, a type of reinsurance in which the reinsurer participates proportionally in all material risks and premiums associated with a policy. For existing LTC policies, the Company has continued ceding 50% of the risk on a coinsurance basis to subsidiaries of Genworth Financial, Inc. (“Genworth”) and retains the remaining risk. For RiverSource Life of NY, this reinsurance arrangement applies for 1996 and later issues only. Under these agreements, the Company has the right, but never the obligation, to recapture some, or all, of the risk ceded to Genworth. Generally, the Company retains at most $5,000 per month of risk per life on DI policies sold on policy forms introduced in most states starting in 2007 and reinsures the remainder of the risk on a coinsurance basis with unaffiliated reinsurance companies. The Company retains all risk for new claims on DI contracts sold on other policy forms introduced prior to 2007. The Company also retains all risk on accidental death benefit claims and substantially all risk associated with waiver of premium provisions. As of December 31, 2017 and 2016 , traditional life and UL insurance in force aggregated $195.9 billion and $ 196.5 billion , respectively, of which $142.4 billion as of both December 31, 2017 and 2016 were reinsured at the respective year ends. The effect of reinsurance on premiums for the Company’s traditional long-duration contracts was as follows: Years Ended December 31, 2017 2016 2015 (in millions) Direct premiums $ 637 $ 642 $ 629 Reinsurance ceded (227 ) (225 ) (223 ) Net premiums $ 410 $ 417 $ 406 Cost of insurance and administrative charges for non-traditional long-duration products are reflected in other revenues and were net of reinsurance ceded of $114 million , $110 million and $107 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company reinsures a portion of the risks associated with its personal auto, home and umbrella insurance products through reinsurance agreements with unaffiliated reinsurance companies. The primary reinsurance programs in 2017 include: • auto and home reinsurance with a limit of $5 million per loss and the Company retained $1 million per loss. • catastrophe reinsurance with a limit of $200 million for the first event and $180 million for a second event and the Company retained $20 million per event. • ceding 90% of every personal umbrella loss with a limit of $5 million per loss. • ceding 90% of home insurance products originating from a certain agency. The effect of reinsurance on premiums for the Company’s short-duration contracts was as follows: Years Ended December 31, 2017 2016 2015 (in millions) Written premiums Direct $ 1,119 $ 1,085 $ 1,093 Ceded (171 ) (20 ) (19 ) Total net written premiums $ 948 $ 1,065 $ 1,074 Earned premiums Direct $ 1,107 $ 1,094 $ 1,068 Ceded (123 ) (20 ) (19 ) Total net earned premiums $ 984 $ 1,074 $ 1,049 Reinsurance recovered on all contracts was $357 million , $323 million and $295 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Receivables included $3.0 billion and $2.7 billion of reinsurance recoverables as of December 31, 2017 and 2016 , respectively, including $2.3 billion and $2.0 billion related to LTC risk ceded to Genworth, respectively. Policyholder account balances, future policy benefits and claims include $509 million and $529 million related to previously assumed reinsurance arrangements as of December 31, 2017 and 2016 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets [Text Block] | Goodwill and Other Intangible Assets Goodwill and intangible assets deemed to have indefinite lives are not amortized but are instead subject to impairment tests. There were no impairments for the years ended December 31, 2017 , 2016 and 2015 . The changes in the carrying amount of goodwill reported in the Company’s main operating segments were as follows: Advice & Wealth Asset Annuities Protection Consolidated (in millions) Balance at January 1, 2016 $ 252 $ 794 $ 46 $ 45 $ 1,137 Acquisitions (1) — 19 — — 19 Foreign currency translation — (51 ) — — (51 ) Purchase price adjustments — (1 ) — — (1 ) Balance at December 31, 2016 252 761 46 45 1,104 Acquisitions (2) 27 22 — — 49 Foreign currency translation — 24 — — 24 Purchase price adjustments — (2 ) — — (2 ) Balance at December 31, 2017 $ 279 $ 805 $ 46 $ 45 $ 1,175 (1) Relates to the Company’s acquisition of Emerging Global Advisors, LLC (“EGA”). (2) Relates to the Company’s acquisitions of Investment Professionals, Inc. (“IPI”) and Lionstone Partners, LLC. As of December 31, 2017 and 2016 , the carrying amount of indefinite-lived intangible assets included $647 million and $645 million , respectively, of investment management contracts. As of both December 31, 2017 and 2016 , the carrying amount of indefinite-lived intangible assets included $67 million of trade names. Definite-lived intangible assets consisted of the following: December 31, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Customer relationships $ 194 $ (124 ) $ 70 $ 144 $ (112 ) $ 32 Contracts 222 (194 ) 28 213 (177 ) 36 Other 156 (116 ) 40 141 (101 ) 40 Total $ 572 $ (434 ) $ 138 $ 498 $ (390 ) $ 108 Definite-lived intangible assets acquired during the year ended December 31, 2017 were $54 million with a weighted average amortization period of 9 years. The aggregate amortization expense for definite-lived intangible assets during the years ended December 31, 2017 , 2016 and 2015 was $27 million , $28 million and $33 million , respectively. In 2017 , 2016 and 2015 , the Company did not record any impairment charges on definite-lived intangible assets. Estimated intangible amortization expense as of December 31, 2017 for the next five years is as follows: (in millions) 2018 $ 29 2019 26 2020 20 2021 17 2022 15 |
Deferred Acquisition Costs and
Deferred Acquisition Costs and Deferred Sales Inducement Costs | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Charges, Insurers [Abstract] | |
Deferred acquisition costs and deferred sales inducement costs [Text Block] | Deferred Acquisition Costs and Deferred Sales Inducement Costs In the third quarter of the year, management updated market-related inputs and implemented model changes related to our living benefit valuation. In addition, management conducted its annual review of life insurance and annuity valuation assumptions relative to current experience and management expectations including modeling changes. These aforementioned changes are collectively referred to as unlocking. The impact of unlocking to DAC for the year ended December 31, 2017 primarily reflected improved persistency and mortality on life insurance contracts and a correction related to a variable annuity model assumption partially offset by updates to market-related inputs to the living benefit valuation. The impact of unlocking to DAC for the year ended December 31, 2016 primarily reflected low interest rates that more than offset benefits from persistency on annuity contracts without living benefits. In addition, the Company’s review of its closed LTC business in the prior year resulted in the write-off of DAC, which was included in the impact of unlocking. The impact of unlocking to DAC for the year ended December 31, 2015 primarily reflected the difference between the Company’s previously assumed interest rates versus the low interest rate environment partially offset by improved persistency. The balances of and changes in DAC were as follows: 2017 2016 2015 (in millions) Balance at January 1 $ 2,648 $ 2,730 $ 2,613 Capitalization of acquisition costs 302 360 (1) 361 Amortization, excluding the impact of valuation assumptions review (279 ) (334 ) (348 ) Amortization, impact of valuation assumptions review 12 (81 ) (2) (6 ) Impact of change in net unrealized securities (gains) losses (7 ) (27 ) 110 Balance a December 31 $ 2,676 $ 2,648 $ 2,730 (1) Includes a $27 million benefit related to the write-off of the deferred reinsurance liability in connection with the loss recognition on LTC business. The benefit was reported in Distribution expenses on the Consolidated Statements of Operations. (2) Includes a $58 million expense related to the loss recognition on LTC business. The balances of and changes in DSIC, which is included in other assets, were as follows: 2017 2016 2015 (in millions) Balance at January 1 $ 302 $ 335 $ 362 Capitalization of sales inducement costs 4 5 4 Amortization, excluding the impact of valuation assumptions review (35 ) (42 ) (52 ) Amortization, impact of valuation assumptions review (1 ) 4 1 Impact of change in net unrealized securities (gains) losses 6 — 20 Balance at December 31 $ 276 $ 302 $ 335 |
Policyholder Account Balances,
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities [Text Block] | Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities Policyholder account balances, future policy benefits and claims consisted of the following: December 31, 2017 2016 (in millions) Policyholder account balances Fixed annuities (1) $ 9,934 $ 10,588 Variable annuity fixed sub-accounts 5,166 5,211 VUL/UL insurance 3,047 3,007 IUL insurance 1,384 1,054 Other life insurance 720 758 Total policyholder account balances 20,251 20,618 Future policy benefits Variable annuity GMWB 463 1,017 Variable annuity GMAB (80 ) (2) (24 ) (2) Other annuity liabilities 78 66 Fixed annuity life contingent liabilities 1,484 1,497 Life and DI insurance 1,221 1,204 LTC insurance 4,896 4,352 VUL/UL and other life insurance additional liabilities 688 588 Total future policy benefits 8,750 8,700 Policy claims and other policyholders’ funds 903 884 Total policyholder account balances, future policy benefits and claims $ 29,904 $ 30,202 (1) Includes fixed deferred annuities, non-life contingent fixed payout annuities and indexed annuity host contracts. (2) Includes the fair value of GMAB embedded derivatives that was a net asset as of both December 31, 2017 and 2016 reported as a contra liability. Fixed Annuities Fixed annuities include deferred, payout and indexed annuity contracts. Deferred contracts offer a guaranteed minimum rate of interest and security of the principal invested. Payout contracts guarantee a fixed income payment for life or the term of the contract. Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates, ranging from 2.71% to 9.38% at December 31, 2017 , depending on year of issue, with an average rate of approximately 4.09% . The Company generally invests the proceeds from the annuity contracts in fixed rate securities. The Company’s equity indexed annuity (“EIA”) product is a single premium fixed deferred annuity. The Company discontinued new sales of EIA in 2007. The contract was issued with an initial term of seven years and interest earnings are linked to the performance of the S&P 500 ® Index. This annuity has a minimum interest rate guarantee of 3% on 90% of the initial premium, adjusted for any surrenders. The Company generally invests the proceeds from the annuity contracts in fixed rate securities and hedges the equity risk with derivative instruments. In November 2017, the Company began offering a fixed index annuity product which is a fixed annuity that includes an indexed account. The rate of interest credited above the minimum guarantee for funds allocated to the indexed account is linked to the performance of the specific index for the indexed account (subject to a cap). The Company offers S&P 500 ® Index and MSCI ® EAFE Index account options. Both options offer two crediting durations, one-year and two-year. The contractholder may allocate all or a portion of the policy value to a fixed or indexed account. The portion of the policy allocated to the indexed account is accounted for as an embedded derivative. The Company hedges the interest credited rate including equity and interest rate risk related to the indexed account with derivative instruments. The contractholder can choose to add a GMWB for life rider for an additional fee. See Note 16 for additional information regarding the Company’s derivative instruments used to hedge the risk related to indexed annuities. Variable Annuities Purchasers of variable annuities can select from a variety of investment options and can elect to allocate a portion to a fixed account. A vast majority of the premiums received for variable annuity contracts are held in separate accounts where the assets are held for the exclusive benefit of those contractholders. Most of the variable annuity contracts currently issued by the Company contain one or more guaranteed benefits, including GMWB, GMAB, GMDB and GGU provisions. The Company previously offered contracts with GMIB provisions. See Note 2 and Note 11 for additional information regarding the Company’s variable annuity guarantees. The Company does not currently hedge its risk under the GGU and GMIB provisions. See Note 14 and Note 16 for additional information regarding the Company’s derivative instruments used to hedge risks related to GMWB, GMAB and GMDB provisions. Insurance Liabilities VUL/UL is the largest group of insurance policies written by the Company. Purchasers of VUL can select from a variety of investment options and can elect to allocate a portion to a fixed account or a separate account. A vast majority of the premiums received for VUL policies are held in separate accounts where the assets are held for the exclusive benefit of those policyholders. IUL is a universal life policy that includes an indexed account. The rate of credited interest above the minimum guarantee for funds allocated to the indexed account is linked to the performance of the specific index for the indexed account (subject to a cap and floor). The Company offers an S&P 500 ® Index account option and a blended multi-index account option comprised of the S&P 500 Index, the MSCI ® EAFE Index and the MSCI EM Index. Both options offer two crediting durations, one-year and two-year. The policyholder may allocate all or a portion of the policy value to a fixed or any available indexed account. The portion of the policy allocated to the indexed account is accounted for as an embedded derivative at fair value. The Company hedges the interest credited rate including equity and interest rate risk related to the indexed account with derivative instruments. See Note 16 for additional information regarding the Company's derivative instruments used to hedge the risk related to IUL. The Company also offers term life insurance as well as DI products. The Company no longer offers standalone LTC products and whole life insurance but has in force policies from prior years. Insurance liabilities include accumulation values, incurred but not reported claims, obligations for anticipated future claims, unpaid reported claims and claim adjustment expenses. The liability for estimates of benefits that will become payable on future claims on term life, whole life and DI policies is based on the net level premium and LTC policies is based on a gross premium valuation reflecting management’s current best estimate assumptions. Both include the anticipated interest rates earned on assets supporting the liability. Anticipated interest rates for term and whole life ranged from 3% to 10% at December 31, 2017 . Anticipated interest rates for DI policies ranged from 3.75% to 7.5% at December 31, 2017 and for LTC policies ranged from 6% to 6.4% at December 31, 2017 . The liability for unpaid reported claims on DI and LTC policies includes an estimate of the present value of obligations for continuing benefit payments. The discount rates used to calculate present values are based on average interest rates earned on assets supporting the liability for unpaid amounts and were 4.5% and 6.25% for DI and LTC claims, respectively, at December 31, 2017 . The balance of insurance liabilities related to unpaid reported and unreported claims and claim adjustment expenses for auto and home was $722 million and $683 million as of December 31, 2017 and 2016 , respectively. The balance of insurance liabilities related to unpaid reported claims and claim adjustment expenses for life, DI and LTC policies was $1.3 billion and $1.2 billion as of December 31, 2017 and 2016 , respectively. The change in the liability for prior year incurred unpaid reported and unreported claims and claim adjustment expenses related to auto and home, life, DI and LTC policies was a decrease of $41 million , $24 million and $2 million for the years 2017 , 2016 and 2015 , respectively. • In 2017, there was a $50 million decrease primarily reflecting favorable closed claim trends of LTC policies partially offset by an increase of $9 million related to updated estimates for prior year catastrophes recognized in the current year along with a slight increase in non-catastrophe claims. • In 2016, there was a $6 million decrease primarily reflecting favorable closed claim trends of DI and LTC policies and a decrease of $18 million related to favorable prior year reserve development for auto and home business of $20 million partially offset by unfavorable prior year catastrophe reserve development of $2 million . • In 2015, there was a $60 million decrease primarily reflecting favorable closed claim trends of DI and LTC policies and from an update to assumptions related to life rider benefits partially offset by an increase of $58 million related to elevated frequency and severity experience for auto injury claims for 2014 and prior accident years as well as a more gradual than anticipated improvement of 2014 and prior years existing claims and unfavorable prior year catastrophe reserve development associated with 2014 hail storms. Portions of the Company’s UL and VUL policies have product features that result in profits followed by losses from the insurance component of the policy. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the policy. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. Separate Account Liabilities Separate account liabilities consisted of the following: December 31, 2017 2016 (in millions) Variable annuity $ 75,174 $ 69,606 VUL insurance 7,352 6,659 Other insurance 34 33 Threadneedle investment liabilities 4,808 3,912 Total $ 87,368 $ 80,210 Threadneedle Investment Liabilities Threadneedle provides a range of unitized pooled pension funds, which invest in property, stocks, bonds and cash. The investments are selected by the clients and are based on the level of risk they are willing to assume. All investment performance, net of fees, is passed through to the investors. The value of the liabilities represents the fair value of the pooled pension funds. |
Variable Annuity and Insurance
Variable Annuity and Insurance Guarantees | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Variable annuity and insurance guarantees [Text Block] | Variable Annuity and Insurance Guarantees The majority of the variable annuity contracts offered by the Company contain GMDB provisions. The Company also offers variable annuities with GGU, GMWB and GMAB provisions. The Company previously offered contracts containing GMIB provisions. See Note 2 and Note 10 for additional information regarding the Company’s variable annuity guarantees. The GMDB and GGU provisions provide a specified minimum return upon death of the contractholder. The death benefit payable is the greater of (i) the contract value less any purchase payment credits subject to recapture less a pro-rata portion of any rider fees, or (ii) the GMDB provisions specified in the contract. The Company has the following primary GMDB provisions: • Return of premium — provides purchase payments minus adjusted partial surrenders. • Reset — provides that the value resets to the account value every sixth contract anniversary minus adjusted partial surrenders. This provision was often provided in combination with the return of premium provision and is no longer offered. • Ratchet — provides that the value ratchets up to the maximum account value at specified anniversary intervals, plus subsequent purchase payments less adjusted partial surrenders. The variable annuity contracts with GMWB riders typically have account values that are based on an underlying portfolio of mutual funds, the values of which fluctuate based on fund performance. At issue, the guaranteed amount is equal to the amount deposited but the guarantee may be increased annually to the account value (a “step-up”) in the case of favorable market performance or by a benefit credit if the contract includes this provision. The Company has GMWB riders in force, which contain one or more of the following provisions: • Withdrawals at a specified rate per year until the amount withdrawn is equal to the guaranteed amount. • Withdrawals at a specified rate per year for the life of the contractholder (“GMWB for life”). • Withdrawals at a specified rate per year for joint contractholders while either is alive. • Withdrawals based on performance of the contract. • Withdrawals based on the age withdrawals begin. • Credits are applied annually for a specified number of years to increase the guaranteed amount as long as withdrawals have not been taken. Variable annuity contractholders age 79 or younger at contract issue can also obtain a principal-back guarantee by purchasing the optional GMAB rider for an additional charge. The GMAB rider guarantees that, regardless of market performance at the end of the 10 -year waiting period, the contract value will be no less than the original investment or a specified percentage of the highest anniversary value, adjusted for withdrawals. If the contract value is less than the guarantee at the end of the 10 -year period, a lump sum will be added to the contract value to make the contract value equal to the guarantee value. Certain UL policies offered by the Company provide secondary guarantee benefits. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities: Variable Annuity Guarantees by Benefit Type (1) December 31, 2017 December 31, 2016 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 $ 61,418 $ 59,461 $ 9 66 $ 56,143 $ 54,145 $ 208 65 Five/six-year reset 8,870 6,149 12 66 8,878 6,170 22 66 One-year ratchet 6,548 6,187 11 69 6,426 6,050 110 68 Five-year ratchet 1,563 1,506 1 65 1,542 1,483 7 64 Other 1,099 1,075 50 72 965 942 86 71 Total — GMDB $ 79,498 $ 74,378 $ 83 66 $ 73,954 $ 68,790 $ 433 65 GGU death benefit $ 1,118 $ 1,067 $ 133 70 $ 1,047 $ 996 $ 108 68 GMIB $ 233 $ 216 $ 7 69 $ 245 $ 227 $ 13 68 GMWB: GMWB $ 2,508 $ 2,500 $ 1 71 $ 2,650 $ 2,642 $ 2 70 GMWB for life 44,375 44,259 129 67 39,436 39,282 289 (2) 66 Total — GMWB $ 46,883 $ 46,759 $ 130 67 $ 42,086 $ 41,924 $ 291 66 GMAB $ 3,086 $ 3,083 $ — 59 $ 3,484 $ 3,476 $ 21 59 (1) Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table. (2) Amount revised to reflect updated contractholder mortality assumptions as of December 31, 2016. The net amount at risk for GMDB, GGU and GMAB is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB is defined as the greater of the present value of the minimum guaranteed annuity payments less the current contract value or zero. The net amount at risk for GMWB is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero. The following table provides information related to insurance guarantees for which the Company has established additional liabilities: December 31, 2017 December 31, 2016 Net Amount at Risk Weighted Average Attained Age Net Amount at Risk Weighted Average Attained Age (in millions, except age) UL secondary guarantees $ 6,460 65 $ 6,376 64 The net amount at risk for UL secondary guarantees is defined as the current guaranteed death benefit amount in excess of the current policyholder account balance. Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows: GMDB & GGU GMIB GMWB (1) GMAB (1) UL (in millions) Balance at January 1, 2015 $ 9 $ 7 $ 693 $ (41 ) $ 263 Incurred claims 10 1 364 41 92 Paid claims (5 ) — — — (23 ) Balance at December 31, 2015 14 8 1,057 — 332 Incurred claims 11 1 (40 ) (23 ) 127 Paid claims (9 ) (1 ) — (1 ) (25 ) Balance at December 31, 2016 16 8 1,017 (24 ) 434 Incurred claims 5 — (554 ) (56 ) 84 Paid claims (4 ) (2 ) — — (29 ) Balance at December 31, 2017 $ 17 $ 6 $ 463 $ (80 ) $ 489 (1) The incurred claims for GMWB and GMAB represent the change in the fair value of the liabilities (contra liabilities) less paid claims. The liabilities for guaranteed benefits are supported by general account assets. The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: December 31, 2017 2016 (in millions) Mutual funds: Equity $ 46,038 $ 40,622 Bond 23,529 23,142 Other 5,109 5,326 Total mutual funds $ 74,676 $ 69,090 No gains or losses were recognized on assets transferred to separate accounts for the years ended December 31, 2017 , 2016 and 2015 . |
Customer Deposits
Customer Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Customer deposits [Text Block] | Customer Deposits Customer deposits consisted of the following: December 31, 2017 2016 (in millions) Fixed rate certificates $ 5,837 $ 5,353 Stock market certificates 520 547 Stock market embedded derivative 10 8 Other 33 27 Less: accrued interest classified in other liabilities (12 ) (11 ) Total investment certificate reserves 6,388 5,924 Brokerage deposits 3,915 4,112 Total $ 10,303 $ 10,036 Investment Certificates The Company offers fixed rate investment certificates primarily in amounts ranging from $1,000 to $2 million with interest crediting rate terms ranging from 3 to 48 months. Investment certificates may be purchased either with a lump sum payment or installment payments. Certificate owners are entitled to receive, at maturity, a definite sum of money. Payments from certificate owners are credited to investment certificate reserves. Investment certificate reserves generally accumulate interest at specified percentage rates. Reserves are maintained for advance payments made by certificate owners, accrued interest thereon and for additional credits in excess of minimum guaranteed rates and accrued interest thereon. On certificates allowing for the deduction of a surrender charge, the cash surrender values may be less than accumulated investment certificate reserves prior to maturity dates. Cash surrender values on certificates allowing for no surrender charge are equal to certificate reserves. The Company generally invests the proceeds from investment certificates in fixed and variable rate securities. Certain investment certificate products have returns tied to the performance of equity markets. The Company guarantees the principal for purchasers who hold the certificate for the full term and purchasers may participate in increases in the stock market based on the S&P 500 ® Index, up to a maximum return. Purchasers can choose 100% participation in the market index up to the cap or 25% participation plus fixed interest with a combined total up to the cap. Current first term certificates have maximum returns of 0.55% to 8.15% , depending on the term length. The equity component of these certificates is considered an embedded derivative and is accounted for separately. See Note 16 for additional information about derivative instruments used to economically hedge the equity price risk related to the Company’s stock market certificates. Brokerage Deposits Brokerage deposits are amounts payable to brokerage customers related to free credit balances, funds deposited by customers and funds accruing to customers as a result of trades or contracts. The Company pays interest on certain customer credit balances and the interest is included in banking and deposit interest expense. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt [Text Block] | Debt The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows: Outstanding Balance Stated Interest Rate December 31, December 31, 2017 2016 2017 2016 (in millions) Long-term debt: Senior notes due 2019 $ 300 $ 300 7.3 % 7.3 % Senior notes due 2020 750 750 5.3 5.3 Senior notes due 2023 750 750 4.0 4.0 Senior notes due 2024 550 550 3.7 3.7 Senior notes due 2026 500 500 2.9 2.9 Capitalized lease obligations 38 49 Other (1) 3 18 Total long-term debt 2,891 2,917 Short-term borrowings: Federal Home Loan Bank (“FHLB”) advances 150 150 1.5 0.8 Repurchase agreements 50 50 1.4 0.9 Total short-term borrowings 200 200 Total $ 3,091 $ 3,117 (1) Amounts include adjustments for fair value hedges on the Company’s long-term debt and unamortized discount and debt issuance costs. See Note 16 for information on the Company’s fair value hedges. Long-Term Debt On August 11, 2016, the Company issued $500 million of unsecured senior notes due September 15, 2026, and incurred debt issuance costs of $4 million . Interest payments are due semi-annually in arrears on March 15 and September 15, commencing on March 15, 2017. In the first quarter of 2016, the Company extinguished $16 million of its junior subordinated notes due 2066 in open market transactions and recognized a gain of less than $1 million . In the second quarter of 2016, the Company redeemed the remaining $229 million of its junior subordinated notes due 2066 at a redemption price equal to 100% of the principal balance of the notes plus accrued and compounded interest. In 2015, the Company extinguished $49 million of its junior subordinated notes due 2066 in open market transactions and recognized a gain of less than $1 million . In November 2015, the Company used cash on hand to fund the repayment of $350 million of its senior notes due 2015. The Company’s senior notes due 2019, 2020, 2023, 2024 and 2026 may be redeemed, in whole or in part, at any time prior to maturity at a price equal to the greater of the principal amount and the present value of remaining scheduled payments, discounted to the redemption date, plus accrued and unpaid interest. At December 31, 2017 , future maturities of Ameriprise Financial long-term debt were as follows: (in millions) 2018 $ 13 2019 314 2020 761 2021 — 2022 — Thereafter 1,800 Total future maturities $ 2,888 Short-term Borrowings The Company enters into repurchase agreements in exchange for cash, which it accounts for as secured borrowings and has pledged Available-for-Sale securities to collateralize its obligations under the repurchase agreements. As of December 31, 2017 and 2016 , the Company has pledged $43 million and $33 million , respectively, of agency residential mortgage backed securities and $8 million and $19 million , respectively, of commercial mortgage backed securities. The remaining maturity of outstanding repurchase agreements was less than one month as of December 31, 2017 and less than three months as of December 31, 2016 . 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 life 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 $750 million and $771 million at December 31, 2017 and 2016 , respectively. The remaining maturity of outstanding FHLB advances was less than four months as of both December 31, 2017 and December 31, 2016 . The stated interest rate of the FHLB advances is a weighted average annualized interest rate on the outstanding borrowings as of the balance sheet date. On October 12, 2017, the Company entered into an amended and restated credit agreement that provides for an unsecured revolving credit facility of up to $750 million that expires in October 2022. Under the terms of the credit agreement for the facility, the Company may increase the amount of this facility up to $1 billion upon satisfaction of certain approval requirements. This agreement replaced the Company’s unsecured revolving credit facility that was to expire in May 2020. As of both December 31, 2017 and 2016 , the Company had no borrowings outstanding and $1 million of letters of credit issued against these facilities. The Company’s credit facility contains various administrative, reporting, legal and financial covenants. The Company was in compliance with all such covenants as of both December 31, 2017 and 2016 . |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities [Text Block] | Offsetting Assets and Liabilities Certain financial instruments and derivative instruments are eligible for offset in the Consolidated Balance Sheets. The Company’s derivative instruments, 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. Securities borrowed and securities loaned are primarily equity securities. The Company’s securities borrowed and securities loaned transactions generally do not have a fixed maturity date and may be terminated by either party under customary terms. The Company’s policy is to recognize amounts subject to master netting arrangements on a gross basis in the Consolidated Balance Sheets. The following tables present the gross and net information about the Company’s assets subject to master netting arrangements: December 31, 2017 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,520 $ — $ 3,520 $ (2,653 ) $ (760 ) $ (88 ) $ 19 OTC cleared (2) 21 — 21 (15 ) — — 6 Exchange-traded 22 — 22 (1 ) — — 21 Total derivatives 3,563 — 3,563 (2,669 ) (760 ) (88 ) 46 Securities borrowed 103 — 103 (19 ) — (82 ) 2 Total $ 3,666 $ — $ 3,666 $ (2,688 ) $ (760 ) $ (170 ) $ 48 December 31, 2016 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 2,920 $ — $ 2,920 $ (2,214 ) $ (406 ) $ (235 ) $ 65 OTC cleared 512 — 512 (509 ) (3 ) — — Exchange-traded 14 — 14 (2 ) — — 12 Total derivatives 3,446 — 3,446 (2,725 ) (409 ) (235 ) 77 Securities borrowed 127 — 127 (16 ) — (108 ) 3 Total $ 3,573 $ — $ 3,573 $ (2,741 ) $ (409 ) $ (343 ) $ 80 (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. (2) The decrease in OTC cleared derivatives from December 31, 2016 is a result of certain central clearing parties amending their rules resulting in variation margin payments being settlement payments, as opposed to collateral. The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements: December 31, 2017 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,309 $ — $ 3,309 $ (2,653 ) $ (70 ) $ (579 ) $ 7 OTC cleared (2) 16 — 16 (15 ) — — 1 Exchange-traded 3 — 3 (1 ) — — 2 Total derivatives 3,328 — 3,328 (2,669 ) (70 ) (579 ) 10 Securities loaned 118 — 118 (19 ) — (94 ) 5 Repurchase agreements 50 — 50 — — (50 ) — Total $ 3,496 $ — $ 3,496 $ (2,688 ) $ (70 ) $ (723 ) $ 15 December 31, 2016 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 2,626 $ — $ 2,626 $ (2,214 ) $ (53 ) $ (352 ) $ 7 OTC cleared 539 — 539 (509 ) (25 ) — 5 Exchange-traded 6 — 6 (2 ) — — 4 Total derivatives 3,171 — 3,171 (2,725 ) (78 ) (352 ) 16 Securities loaned 146 — 146 (16 ) — (125 ) 5 Repurchase agreements 50 — 50 — — (50 ) — Total $ 3,367 $ — $ 3,367 $ (2,741 ) $ (78 ) $ (527 ) $ 21 (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. (2) The decrease in OTC cleared derivatives from December 31, 2016 is a result of certain central clearing parties amending their rules resulting in variation margin payments being settlement payments, as opposed to collateral. In the tables above, the amounts of assets or liabilities presented are offset first by financial instruments that have the right of offset under master netting or similar arrangements, then any remaining amount is reduced by the amount of cash and securities collateral. The actual collateral may be greater than amounts presented in the tables. When the fair value of collateral accepted by the Company is less than the amount due to the Company, there is a risk of loss if the counterparty fails to perform or provide additional collateral. To mitigate this risk, the Company monitors collateral values regularly and requires additional collateral when necessary. When the value of collateral pledged by the Company declines, it may be required to post additional collateral. Freestanding derivative instruments are reflected in other assets and other liabilities. Cash collateral pledged by the Company is reflected in other assets and cash collateral accepted by the Company is reflected in other liabilities. Repurchase agreements are reflected in short-term borrowings. Securities borrowing and lending agreements are reflected in receivables and other liabilities, respectively. See Note 16 for additional disclosures related to the Company’s derivative instruments, Note 13 for additional disclosures related to the Company’s repurchase agreements and Note 4 for information related to derivatives held by consolidated investment entities. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities [Text Block] | Derivatives and Hedging Activities Derivative instruments enable the Company to manage its exposure to various market risks. The value of such instruments is derived from an underlying variable or multiple variables, including equity, 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 derivative instruments are all subject to master netting arrangements. The Company’s policy on the recognition of derivatives on the Consolidated Balance Sheets is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. See Note 15 for additional information regarding the estimated fair value of the Company’s freestanding derivatives after considering the effect of master netting arrangements and collateral. The Company uses derivatives as economic hedges and accounting hedges. The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives: December 31, 2017 December 31, 2016 Notional Gross Fair Value Notional Gross Fair Value Assets (1) Liabilities (2)(3) Assets (1) Liabilities (2)(3) (in millions) Derivatives designated as hedging instruments Interest rate contracts $ 675 $ 23 $ — $ 675 $ 40 $ — Foreign exchange contracts 87 — 4 164 12 — Total qualifying hedges 762 23 4 839 52 — Derivatives not designated as hedging instruments Interest rate contracts 66,043 1,081 416 72,449 1,738 989 Equity contracts 59,292 2,423 2,883 63,015 1,574 2,135 Credit contracts 721 — 2 1,039 1 — Foreign exchange contracts 4,163 36 23 4,733 81 47 Other contracts 452 — — 241 — — Total non-designated hedges 130,671 3,540 3,324 141,477 3,394 3,171 Embedded derivatives GMWB and GMAB (4) N/A — (49 ) N/A — 614 IUL N/A — 601 N/A — 464 Indexed annuities N/A — 5 N/A — 5 SMC N/A — 10 N/A — 8 Total embedded derivatives N/A — 567 N/A — 1,091 Total derivatives $ 131,433 $ 3,563 $ 3,895 $ 142,316 $ 3,446 $ 4,262 N/A Not applicable. (1) The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. (2) The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and indexed annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. The fair value of the SMC embedded derivative liability is included in Customer deposits on the Consolidated Balance Sheets. (3) The fair value of the Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $1.3 billion and $1.5 billion as of December 31, 2017 and 2016 , respectively. See Note 15 for additional information related to master netting arrangements and cash collateral. See Note 4 for information about derivatives held by consolidated VIEs. (4) The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2017 included $443 million of individual contracts in a liability position and $492 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2016 included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position. See Note 14 for additional information regarding the Company’s fair value measurement of derivative instruments. As of December 31, 2017 and 2016 , investment securities with a fair value of $89 million and $235 million , respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $89 million and $118 million , respectively, may be sold, pledged or rehypothecated by the Company. As of December 31, 2017 and 2016 , the Company had sold, pledged or rehypothecated nil and $19 million , respectively, of these securities. In addition, as of December 31, 2017 and 2016 , non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets. Derivatives Not Designated as Hedges The following table presents a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Operations: Net Investment Income Banking and Deposit Interest Expense Distribution Expenses Interest Credited to Fixed Accounts Benefits, Claims, Losses and Settlement Expenses General and Administrative Expense (in millions) Year Ended December 31, 2017 Interest rate contracts $ (3 ) $ — $ — $ — $ 1 $ — Equity contracts (10 ) 4 54 75 (1,081 ) 11 Credit contracts — — — — (22 ) — Foreign exchange contracts — — 3 — (23 ) 6 Other contracts — — — — (2 ) — GMWB and GMAB embedded derivatives — — — — 663 — IUL embedded derivatives — — — (45 ) — — SMC embedded derivatives — (4 ) — — — — Total gain (loss) $ (13 ) $ — $ 57 $ 30 $ (464 ) $ 17 Year Ended December 31, 2016 Interest rate contracts $ 3 $ — $ — $ — $ 36 $ — Equity contracts (1 ) 2 23 20 (897 ) 6 Credit contracts — — — — 2 — Foreign exchange contracts — — (1 ) — — 14 Other contracts — — — — (2 ) — GMWB and GMAB embedded derivatives — — — — 237 — IUL embedded derivatives — — — 15 — — SMC embedded derivatives — (2 ) — — — — Total gain (loss) $ 2 $ — $ 22 $ 35 $ (624 ) $ 20 Year Ended December 31, 2015 Interest rate contracts $ (21 ) $ — $ — $ — $ 228 $ — Equity contracts — — 1 (10 ) (317 ) 2 Credit contracts — — — — (1 ) — Foreign exchange contracts 4 — (1 ) — 13 (2 ) Other contracts 1 — — — (1 ) — GMWB and GMAB embedded derivatives — — — — (372 ) — IUL embedded derivatives — — — (8 ) — — Indexed annuity embedded derivatives — — — 1 — — Total gain (loss) $ (16 ) $ — $ — $ (17 ) $ (450 ) $ — The Company holds derivative instruments that either do not qualify or are not designated for hedge accounting treatment. These derivative instruments are used as economic hedges of equity, interest rate, credit and foreign currency exchange rate risk related to various products and transactions of the Company. Certain annuity contracts contain GMWB or GMAB provisions, which guarantee the right to make limited partial withdrawals each contract year regardless of the volatility inherent in the underlying investments or guarantee a minimum accumulation value of consideration received at the beginning of the contract period, after a specified holding period, respectively. The GMAB and non-life contingent GMWB provisions are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. The Company economically hedges the exposure related to GMAB and non-life contingent GMWB provisions primarily using futures, options, interest rate swaptions, interest rate swaps, total return swaps and variance swaps. The deferred premium associated with certain of the above options and swaptions is paid or received semi-annually over the life of the contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of December 31, 2017 : Premiums Payable Premiums Receivable (in millions) 2018 $ 233 $ 131 2019 296 171 2020 217 100 2021 187 109 2022 250 148 2023-2027 523 59 Total $ 1,706 $ 718 Actual timing and payment amounts may differ due to future settlements, modifications or exercises of the contracts prior to the full premium being paid or received. The Company has a macro hedge program to provide protection against the statutory tail scenario risk arising from variable annuity reserves on its statutory surplus and to cover some of the residual risks not covered by other hedging activities. As a means of economically hedging these risks, the Company uses a combination of futures, options, interest rate swaptions and/or swaps. Certain of the macro hedge derivatives contain settlement provisions linked to both equity returns and interest rates. The Company’s macro hedge derivatives that contain settlement provisions linked to both equity returns and interest rates are shown in Other contracts in the tables above. Indexed annuity, 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 indexed annuity, IUL and stock market certificate products will positively or negatively impact earnings over the life of these products. The equity component of the indexed annuity, IUL and stock market certificate product obligations are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. As a means of economically hedging its obligations under the provisions of these products, the Company enters into index options and futures contracts. The Company enters into futures, credit default swaps and commodity swaps to manage its exposure to price risk arising from seed money investments in proprietary investment products. The Company enters into foreign currency forward contracts to economically hedge its exposure to certain foreign transactions. The Company enters into futures contracts to economically hedge its exposure related to compensation plans. In 2015, the Company entered into interest rate swaps to offset interest rate changes on unrealized gains or losses for certain investments. 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 years ended December 31, 2017 , 2016 and 2015 , amounts recognized in earnings related to cash flow hedges due to ineffectiveness were $1 million , nil and $1 million , respectively. The estimated net amount of existing pretax losses as of December 31, 2017 that the Company expects to reclassify to earnings within the next twelve months is nil , which consists of $2 million of pretax gains to be recorded as a reduction to interest and debt expense and $2 million of pretax losses to be recorded in net investment income. Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is 18 years and relates to forecasted debt interest payments. See Note 18 for a rollforward of net unrealized derivative gains (losses) included in AOCI related to cash flow hedges. Fair Value Hedges The Company entered into and designated as fair value hedges two interest rate swaps to convert senior notes due 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 Years Ended December 31, 2017 2016 2015 (in millions) Interest rate contracts Interest and debt expense $ 16 $ 19 $ 31 Net Investment Hedges The Company entered into, and designated as net investment hedges in foreign operations, forward contracts to hedge a portion of the Company’s foreign currency exchange rate risk associated with its investment in Threadneedle. As the Company determined that the forward contracts are effective, the change in fair value of the derivatives is recognized in AOCI as part of the foreign currency translation adjustment. For the years ended December 31, 2017 and 2016, the Company recognized a loss of $4 million and a gain of $34 million , respectively, in OCI. Credit Risk Credit risk associated with the Company’s derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative contract. To mitigate such risk, the Company has established guidelines and oversight of credit risk through a comprehensive enterprise risk management program that includes members of senior management. Key components of this program are to require preapproval of counterparties and the use of master netting and collateral arrangements whenever practical. See Note 15 for additional information on the Company’s credit exposure related to derivative assets. Certain of the Company’s derivative contracts contain provisions that adjust the level of collateral the Company is required to post based on the Company’s debt rating (or based on the financial strength of the Company’s life insurance subsidiaries for contracts in which those subsidiaries are the counterparty). Additionally, certain of the Company’s derivative contracts contain provisions that allow the counterparty to terminate the contract if the Company’s debt does not maintain a specific credit rating (generally an investment grade rating) or the Company’s life insurance subsidiary does not maintain a specific financial strength rating. If these termination provisions were to be triggered, the Company’s counterparty could require immediate settlement of any net liability position. As of December 31, 2017 and 2016 , the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $372 million and $254 million , respectively. The aggregate fair value of assets posted as collateral for such instruments as of December 31, 2017 and 2016 was $369 million and $246 million , respectively. If the credit contingent provisions of derivative contracts in a net liability position as of December 31, 2017 and 2016 were triggered, the aggregate fair value of additional assets that would be required to be posted as collateral or needed to settle the instruments immediately would have been $3 million and $8 million , respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation [Text Block] | Share-Based Compensation The Company’s share-based compensation plans consist of the Amended and Restated Ameriprise Financial 2005 Incentive Compensation Plan (the “2005 ICP”), the Ameriprise Financial 2008 Employment Incentive Equity Award Plan (the “2008 Plan”), the Ameriprise Financial Franchise Advisor Deferred Compensation Plan (“Franchise Advisor Deferral Plan”) and the Ameriprise Advisor Group Deferred Compensation Plan (“Advisor Group Deferral Plan”). The components of the Company’s share-based compensation expense, net of forfeitures, were as follows: December 31, 2017 2016 2015 (in millions) Stock option $ 32 $ 34 $ 39 Restricted stock 24 24 22 Restricted stock units 65 76 83 Liability awards 45 4 14 Total $ 166 $ 138 $ 158 For the years ended December 31, 2017 , 2016 and 2015 , total income tax benefit recognized by the Company related to share-based compensation expense was $58 million , $48 million and $56 million , respectively. As of December 31, 2017 , there was $94 million of total unrecognized compensation cost related to non-vested awards under the Company’s share-based compensation plans, which is expected to be recognized over a weighted-average period of 2.5 years. Amended and Restated Ameriprise Financial 2005 Incentive Compensation Plan The 2005 ICP, which was amended and approved by shareholders on April 30, 2014, provides for the grant of cash and equity incentive awards to directors, employees and independent contractors, including stock options, restricted stock awards, restricted stock units, stock appreciation rights, performance shares and similar awards designed to comply with the applicable federal regulations and laws of jurisdiction. Under the 2005 ICP, a maximum of 54.4 million shares may be issued. Of this total, 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. Shares issued under the 2005 ICP may be authorized and unissued shares or treasury shares. Ameriprise Financial 2008 Employment Incentive Equity Award Plan The 2008 Plan is designed to align employees’ interests with those of the shareholders of the Company and attract and retain new employees. The 2008 Plan provides for the grant of equity incentive awards to new employees, primarily those, who became employees in connection with a merger or acquisition, including stock options, restricted stock awards, restricted stock units, and other equity-based awards designed to comply with the applicable federal and foreign regulations and laws of jurisdiction. Under the 2008 Plan, a maximum of 6.0 million shares may be issued. Stock Options Stock options granted under the 2005 ICP and the 2008 Plan have an exercise price not less than 100% of the current fair market value of a share of the Company’s common stock on the grant date and a maximum term of 10 years. Stock options granted generally vest ratably over three to four years. Vesting of option awards may be accelerated based on age and length of service. Stock options granted are expensed on a straight-line basis over the vesting period based on the fair value of the awards on the date of grant. The grant date fair value of the options is calculated using a Black-Scholes option-pricing model. The following weighted average assumptions were used for stock option grants: 2017 2016 2015 Dividend yield 2.3 % 2.3 % 2.0 % Expected volatility 30 % 27 % 26 % Risk-free interest rate 1.9 % 1.3 % 1.2 % Expected life of stock option (years) 5.0 5.0 5.0 The dividend yield assumption represents the Company’s expected dividend yield based on its historical dividend payouts and management’s expectations. The expected volatility is based on the Company’s historical and implied volatilities. The risk-free interest rate for periods within the expected option life is based on the U.S. Treasury yield curve at the grant date. The expected life of the option is based on the Company’s past experience and other considerations. The weighted average grant date fair value for options granted during 2017 , 2016 and 2015 was $28.33 , $17.00 and $25.12 , respectively. A summary of the Company’s stock option activity for 2017 is presented below (shares and intrinsic value in millions): Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1 8.2 $ 84.85 6.7 $ 241 Granted 1.2 123.58 Exercised (3.3 ) 69.41 Forfeited (0.1 ) 106.62 Outstanding at December 31 6.0 100.38 7.0 413 Exercisable at December 31 3.2 92.72 5.8 243 The intrinsic value of a stock option is the amount by which the fair value of the underlying stock exceeds the exercise price of the option. The total intrinsic value of options exercised was $222 million , $37 million and $111 million during the years ended December 31, 2017 , 2016 and 2015 , respectively. Restricted Stock Awards Restricted stock awards granted under the 2005 ICP and 2008 Plan generally vest ratably over three to four years or at the end of five years. Vesting of restricted stock awards may be accelerated based on age and length of service. Compensation expense for restricted stock awards is based on the market price of Ameriprise Financial common stock on the date of grant and is amortized on a straight-line basis over the vesting period. Quarterly dividends are paid on restricted stock, as declared by the Company’s Board of Directors, during the vesting period and are not subject to forfeiture. Restricted Stock Units and Deferred Share Units The 2005 ICP provides for the grant of deferred share units to non-employee directors of the Company and the 2005 ICP and 2008 Plan provide for the grant of restricted stock units to employees. The director awards are fully vested upon issuance and are settled for Ameriprise Financial common stock upon the director’s termination of service. The employee awards generally vest ratably over three to four years. Compensation expense for deferred share units and restricted stock units is based on the market price of Ameriprise Financial stock on the date of grant. Restricted stock units granted to employees are expensed on a straight-line basis over the vesting period or on an accelerated basis if certain age and length of service requirements are met. Deferred share units granted to non-employee directors are expensed immediately. Dividends are paid on restricted stock units, as declared by the Company’s Board of Directors, during the vesting period and are not subject to forfeiture. Dividend equivalents are issued on deferred share units, as dividends are declared by the Company's Board of Directors, until distribution and are not subject to forfeiture. Ameriprise Financial Deferred Compensation Plan The Ameriprise Financial Deferred Compensation Plan (“DCP”) under the 2005 ICP gives certain employees the choice to defer a portion of their eligible compensation, which can be invested in investment options as provided by the DCP, including the Ameriprise Financial Stock Fund. The DCP is an unfunded non-qualified deferred compensation plan under section 409A of the Internal Revenue Code. The Company provides a match on certain deferrals. Participant deferrals vest immediately and the Company match vests after three years. Distributions are made in shares of the Company’s common stock for the portion of the deferral invested in the Ameriprise Financial Stock Fund and the Company match, for which the Company has recorded in equity. The DCP does allow for accelerated vesting of the share-based awards in cases of death, disability and qualified retirement. Compensation expense related to the Company match is recognized on a straight-line basis over the vesting period or on an accelerated basis if certain age and length of service requirements are met. Dividend equivalents are issued on deferrals into the Ameriprise Financial Stock Fund and the Company match. Dividend equivalents related to deferrals are not subject to forfeiture, whereas dividend equivalents related to the Company match are subject to forfeiture until fully vested. Ameriprise Financial Franchise Advisor Deferral Plan The Franchise Advisor Deferral Plan, which was amended in January 2011, gives certain advisors the choice to defer a portion of their commissions into Ameriprise Financial stock or other investment options. The Franchise Advisor Deferral Plan is an unfunded non-qualified deferred compensation plan under section 409A of the Internal Revenue Code. Prior to 2011, all deferrals were in the form of share-based awards and the Company provided a match on the advisor deferrals, which participants could elect to receive in cash or shares of common stock. The Franchise Advisor Deferral Plan allows for the grant of share-based awards of up to 12.5 million shares of common stock. The number of units awarded is based on the performance measures, deferral percentage and the market value of Ameriprise Financial common stock on the deferral date as defined by the plan. Share-based awards made during 2011 and later are fully vested and are not subject to forfeitures. Share-based awards made prior to 2011 generally vest ratably over four years, beginning on January 1 of the year following the plan year in which the award was made. In addition to the voluntary deferral, certain advisors are eligible for the Franchise Advisor Top Performer Stock Award or the Franchise Consultant Growth Bonus. The Franchise Advisor Top Performer Stock Award allows eligible advisors to earn additional deferred stock awards on commissions over a specified threshold. The awards vest ratably over four years. The Franchise Consultant Growth Bonus allows eligible advisors who coach other advisors the ability to earn a bonus based on the success of the advisors they coach, which can be deferred into the plan. The awards vest ratably over three years. The Franchise Advisor Deferral Plan allows for accelerated vesting of the share-based awards based on age and years as an advisor. Commission expense is recognized on a straight-line basis over the vesting period. However, as franchise advisors are not employees of the Company, the expense is adjusted each period based on the stock price of the Company’s common stock up to the vesting date. Share units receive dividend equivalents, as dividends are declared by the Company’s Board of Directors, until distribution and are subject to forfeiture until vested. Ameriprise Advisor Group Deferred Compensation Plan The Advisor Group Deferral Plan, which was created in April 2009, allows for employee advisors to receive share-based bonus awards which are subject to future service requirements and forfeitures. The Advisor Group Deferral Plan is an unfunded non-qualified deferred compensation plan under section 409A of the Internal Revenue Code. The Advisor Group Deferral Plan also gives qualifying employee advisors the choice to defer a portion of their base salary or commissions. This deferral can be in the form of Ameriprise Financial stock or other investment options. Deferrals are not subject to future service requirements or forfeitures. Under the Advisor Group Deferral Plan, a maximum of 3.0 million shares may be issued. Awards granted under the Advisor Group Deferral Plan may be settled in cash and/or shares of the Company’s common stock according to the award’s terms. Share units receive dividend equivalents, as dividends are declared by the Company’s Board of Directors, until distribution and are subject to forfeiture until vested. Full Value Share Award Activity A summary of activity for the Company’s restricted stock awards, restricted stock units granted to employees (including advisors), compensation and commission deferrals into stock and deferred share units for 2017 is presented below (shares in millions): Shares Weighted Average Grant-date Fair Value Non-vested shares at January 1 1.3 $ 99.37 Granted 0.5 127.08 Deferred 0.2 134.01 Vested (0.7 ) 113.59 Forfeited (0.1 ) 106.43 Non-vested shares at December 31 1.2 107.52 The deferred shares in the table above primarily relate to franchise advisor voluntary deferrals of their commissions into Ameriprise Financial stock under the Franchise Advisor Deferral Plan that are fully vested at the deferral date. The fair value of full value share awards vested during the years ended December 31, 2017 , 2016 and 2015 was $97 million , $103 million and $133 million , respectively. The weighted average grant date fair value for restricted shares, restricted stock units and deferred share units during 2017 , 2016 and 2015 was $124.51 , $88.61 and $128.43 , respectively. The weighted average grant date fair value for franchise advisor and advisor group deferrals during 2017 , 2016 and 2015 was $134.58 , $94.55 and $123.88 , respectively. Performance Share Units Under the 2005 ICP, the Company’s Executive Leadership Team may be awarded a target number of performance share units (“PSUs”). PSUs will be earned only to the extent that the Company attains certain goals relating to the Company’s performance and relative total shareholder returns against peers over a three -year period. The awards also have a three -year service condition with cliff vesting with an accelerated service condition based on age and length of service. The actual number of PSUs ultimately earned could vary from zero , if performance goals are not met, to as much as 200% of the target, if performance goals are significantly exceeded. The value of each target PSU is equal to the value of one share of Ameriprise Financial common stock. The total amount of target PSUs outstanding at the end of December 31, 2017 , 2016 and 2015 was 0.2 million . The PSUs are liability awards. During the years ended December 31, 2017 , 2016 and 2015 , the value of shares settled for PSU awards was $13 million , $15 million and $27 million , respectively. Threadneedle Equity Incentive Plan (“EIP”) Prior to 2012, certain key Threadneedle employees were eligible for awards under the EIP based on a formula tied to Threadneedle’s financial performance. Awards under the EIP were first made in April 2009; prior awards were made under the equity participation plan (“EPP”). The EPP and EIP awards were fully amortized as of December 31, 2015. During the years ended December 31, 2017 , 2016 and 2015 , cash settlements of EPP and EIP awards were nil , $2 million and $28 million , respectively. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity [Text Block] | Shareholders’ Equity The following tables provide the amounts related to each component of OCI: Year Ended December 31, 2017 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized securities gains (losses): Net unrealized securities gains (losses) arising during the period (1) $ 243 $ (77 ) $ 166 Reclassification of net securities (gains) losses included in net income (2) (55 ) 19 (36 ) Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables (180 ) 57 (123 ) Net unrealized securities gains (losses) 8 (1 ) 7 Net unrealized derivatives gains (losses): Reclassification of net derivative (gains) losses included in net income (3) 5 (2 ) 3 Net unrealized derivatives gains (losses) 5 (2 ) 3 Defined benefit plans: Prior service credit 2 (1 ) 1 Net gain (loss) arising during the period 38 (11 ) 27 Defined benefit plans 40 (12 ) 28 Foreign currency translation 74 (82 ) (4 ) (8 ) Other (1 ) — (1 ) Total other comprehensive income (loss) $ 126 $ (97 ) $ 29 Year Ended December 31, 2016 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized securities gains (losses): Net unrealized securities gains (losses) arising during the period (1) $ 339 $ (121 ) $ 218 Reclassification of net securities (gains) losses included in net income (2) (22 ) 8 (14 ) Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables (242 ) 85 (157 ) Net unrealized securities gains (losses) 75 (28 ) 47 Net unrealized derivatives gains (losses): Reclassification of net derivative (gains) losses included in net income (3) 6 (2 ) 4 Net unrealized derivatives gains (losses) 6 (2 ) 4 Defined benefit plans: Net gain (loss) arising during the period (45 ) 11 (34 ) Defined benefit plans (45 ) 11 (34 ) Foreign currency translation (117 ) 41 (76 ) Total other comprehensive income (loss) $ (81 ) $ 22 $ (59 ) Year Ended December 31, 2015 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized securities gains (losses): Net unrealized securities gains (losses) arising during the period (1) $ (1,027 ) $ 359 $ (668 ) Reclassification of net securities (gains) losses included in net income (2) (6 ) 2 (4 ) Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables 480 (168 ) 312 Net unrealized securities gains (losses) (553 ) 193 (360 ) Net unrealized derivatives gains (losses): Reclassification of net derivative (gains) losses included in net income (3) 1 — 1 Net unrealized derivatives gains (losses) 1 — 1 Defined benefit plans: Prior service credit (2 ) — (2 ) Net gain (loss) arising during the period (24 ) 6 (18 ) Defined benefit plans (26 ) 6 (20 ) Foreign currency translation (46 ) 16 (30 ) Other comprehensive income (loss) attributable to Ameriprise Financial (624 ) 215 (409 ) Other comprehensive income (loss) attributable to noncontrolling interests (60 ) — (60 ) Total other comprehensive income (loss) $ (684 ) $ 215 $ (469 ) (1) Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period. (2) Reclassification amounts are recorded in net investment income. (3) Includes a $2 million , $1 million and $4 million pretax gain reclassified to interest and debt expenses and a $5 million , $6 million and $5 million pretax loss reclassified to net investment income for the years ended December 31, 2017 , 2016 and 2015 , respectively. (4) Includes an $87 million decrease to OCI related to deferred taxes on currency translations adjustments. Other comprehensive income (loss) related to net unrealized securities gains (losses) includes three components: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit other-than-temporary impairment losses to credit losses; and (iii) other adjustments primarily consisting of changes in insurance and annuity asset and liability balances, such as DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates. The following table presents the changes in the balances of each component of AOCI, net of tax: Net Unrealized Securities Gains Net Unrealized Derivatives Losses Defined Benefit Plans Foreign Currency Translation Other Total (in millions) Balance, January 1, 2015 $ 786 $ — $ (71 ) $ (53 ) $ — $ 662 OCI before reclassifications (356 ) — (25 ) (30 ) — (411 ) Amounts reclassified from AOCI (4 ) 1 5 — — 2 OCI attributable to Ameriprise Financial (360 ) 1 (20 ) (30 ) — (409 ) Balance, December 31, 2015 426 (1) 1 (91 ) (83 ) — 253 Cumulative effect of change in accounting policies 6 — — — — 6 OCI before reclassifications 61 — (39 ) (76 ) — (54 ) Amounts reclassified from AOCI (14 ) 4 5 — — (5 ) OCI attributable to Ameriprise Financial 47 4 (34 ) (76 ) — (59 ) Balance, December 31, 2016 479 (1) 5 (125 ) (159 ) — 200 OCI before reclassifications 43 — 20 (8 ) (1 ) 54 Amounts reclassified from AOCI (36 ) 3 8 — — (25 ) OCI attributable to Ameriprise Financial 7 3 28 (8 ) (1 ) 29 Balance, December 31, 2017 $ 486 (1) $ 8 $ (97 ) $ (167 ) $ (1 ) $ 229 (1) Includes $1 million , $4 million and $4 million of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities at December 31, 2017 , 2016 and 2015 , respectively. For the years ended December 31, 2017 , 2016 and 2015 , the Company repurchased a total of 9.9 million shares, 17.6 million shares and 13.9 million shares, respectively, of its common stock for an aggregate cost of $1.3 billion , $1.7 billion and $1.7 billion , respectively. In December 2015, the Company’s Board of Directors authorized additional expenditures of up to $2.5 billion for the repurchase of shares of the Company’s common stock through December 31, 2017, which was exhausted in the third quarter of 2017. In April 2017, the Company's Board of Directors authorized an expenditure of up to $2.5 billion for the repurchase of shares of the Company’s common stock through June 30, 2019. As of December 31, 2017 , the Company had $2.1 billion remaining under its share repurchase authorizations. The Company may also reacquire shares of its common stock under its share-based compensation plans related to restricted stock awards and certain option exercises. The holders of restricted shares may elect to surrender a portion of their shares on the vesting date to cover their income tax obligation. These vested restricted shares are reacquired by the Company and the Company’s payment of the holders’ income tax obligations are recorded as a treasury share purchase. For the years ended December 31, 2017 , 2016 and 2015 , the Company reacquired 0.3 million shares, 0.3 million shares and 0.4 million shares, respectively, of its common stock through the surrender of shares upon vesting and paid in the aggregate $33 million , $29 million and $49 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 years ended December 31, 2017 , 2016 and 2015 , the Company reacquired 2.2 million shares, 0.5 million shares and 0.7 million shares, respectively, of its common stock through the net settlement of options for an aggregate value of $298 million , $48 million and $92 million , respectively. For the years ended December 31, 2017 , 2016 and 2015 , respectively, the Company reissued 0.8 million , 0.9 million and 1.0 million treasury shares, respectively, for restricted stock award grants, PSUs, and issuance of shares vested under advisor deferred compensation plans. |
Earnings per Share Attributable
Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders | 12 Months Ended |
Dec. 31, 2017 | |
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: Years Ended December 31, 2017 2016 2015 (in millions, except per share amounts) Numerator: Net income $ 1,480 $ 1,314 $ 1,687 Less: Net income attributable to noncontrolling interests — — 125 Net income attributable to Ameriprise Financial $ 1,480 $ 1,314 $ 1,562 Denominator: Basic: Weighted-average common shares outstanding 154.1 166.3 181.7 Effect of potentially dilutive nonqualified stock options and other share-based awards 2.6 1.9 2.5 Diluted: Weighted-average common shares outstanding 156.7 168.2 184.2 Earnings per share attributable to Ameriprise Financial, Inc. common shareholders: Basic $ 9.60 $ 7.90 $ 8.60 Diluted $ 9.44 $ 7.81 $ 8.48 The calculation of diluted earnings per share excludes the incremental effect of nil , 1.5 million and 1.7 million options as of December 31, 2017 , 2016 and 2015 , respectively, due to their anti-dilutive effect. |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Requirements | |
Regulatory Requirements [Text Block] | Regulatory Requirements Restrictions on the transfer of funds exist under regulatory requirements applicable to certain of the Company’s subsidiaries. As of December 31, 2017 , the aggregate amount of unrestricted net assets was approximately $904 million . The National Association of Insurance Commissioners (“NAIC”) defines Risk-Based Capital (“RBC”) requirements for insurance companies. The RBC requirements are used by the NAIC and state insurance regulators to identify companies that merit regulatory actions designed to protect policyholders. These requirements apply to both the Company’s life and property casualty insurance companies. In addition, IDS Property Casualty is subject to the statutory surplus requirements of the State of Wisconsin. The Company’s life and property casualty companies each met their respective minimum RBC requirements. The Company’s life and property casualty insurance companies are required to prepare statutory financial statements in accordance with the accounting practices prescribed or permitted by the insurance departments of their respective states of domicile, which vary materially from GAAP. Prescribed statutory accounting practices include publications of the NAIC, as well as state laws, regulations and general administrative rules. The more significant differences from GAAP include charging policy acquisition costs to expense as incurred, establishing annuity and insurance reserves using different actuarial methods and assumptions, valuing investments on a different basis and excluding certain assets from the balance sheet by charging them directly to surplus, such as a portion of the net deferred income tax assets. RiverSource Life received approval from the Minnesota Department of Commerce to apply a permitted statutory accounting practice, effective July 1, 2017 through June 30, 2018, for certain derivative instruments used to economically hedge the interest rate exposure of certain variable annuity products that do not qualify for statutory hedge accounting. The permitted practice is intended to mitigate the impact to statutory surplus from the misalignment between variable annuity statutory reserves, which are not carried at fair value, and the fair value of derivatives used to economically hedge the interest rate exposure of non-life contingent living benefit guarantees. The permitted practice allows RiverSource Life to defer a portion of the change in fair value, net investment income and realized gains or losses generated from designated derivatives to the extent the amounts do not offset the current period interest-rate related change in the variable annuity statutory reserve liability. The deferred amount is amortized over ten years using the straight-line method with the ability to accelerate amortization at management’s discretion. There was no immediate impact to statutory surplus at the effective date for the permitted statutory accounting practice. As of December 31, 2017, application of this permitted practice resulted in a decrease to RiverSource Life’s statutory surplus of approximately $3 million . State insurance statutes contain limitations as to the amount of dividends that insurers may make without providing prior notification to state regulators. For RiverSource Life, dividends in excess of unassigned surplus, as determined in accordance with accounting practices prescribed by the State of Minnesota, require advance notice to the Minnesota Department of Commerce, RiverSource Life’s primary regulator, and are subject to potential disapproval. RiverSource Life’s statutory unassigned surplus (deficit) aggregated $(306) million and $275 million as of December 31, 2017 and 2016 , respectively. In addition, dividends whose fair market value, together with that of other dividends made within the preceding 12 months, exceeds the greater of the previous year’s statutory net gain from operations or 10% of the previous year-end statutory capital and surplus are referred to as “extraordinary dividends.” Extraordinary dividends also require advance notice to the Minnesota Department of Commerce, and are subject to potential disapproval. Statutory capital and surplus for RiverSource Life was $2.4 billion and $3.0 billion as of December 31, 2017 and 2016 , respectively. Statutory capital and surplus for IDS Property Casualty was $781 million and $800 million as of December 31, 2017 and 2016 , respectively. Statutory net gain from operations and net income (loss) are summarized as follows: Years Ended December 31, 2017 2016 2015 (in millions) RiverSource Life Statutory net gain from operations $ 958 $ 834 $ 1,033 Statutory net income (loss) 222 322 633 IDS Property Casualty Statutory net income (loss) (10 ) (8 ) (44 ) Government debt securities of $4 million as of both December 31, 2017 and 2016 held by the Company’s life insurance subsidiaries were on deposit with various states as required by law. Ameriprise Certificate Company (“ACC”) is registered as an investment company under the Investment Company Act of 1940 (the “1940 Act”). ACC markets and sells investment certificates to clients. ACC is subject to various capital requirements under the 1940 Act, laws of the State of Minnesota and understandings with the Securities and Exchange Commission (“SEC”) and the Minnesota Department of Commerce. The terms of the investment certificates issued by ACC and the provisions of the 1940 Act also require the maintenance by ACC of qualified assets. Under the provisions of its certificates and the 1940 Act, ACC was required to have qualified assets (as that term is defined in Section 28(b) of the 1940 Act) in the amount of $6.4 billion and $5.9 billion as of December 31, 2017 and 2016 , respectively. ACC had qualified assets of $6.9 billion and $6.3 billion as of December 31, 2017 and 2016 , respectively. Ameriprise Financial and ACC entered into a Capital Support Agreement on March 2, 2009, pursuant to which Ameriprise Financial agrees to commit such capital to ACC as is necessary to satisfy applicable minimum capital requirements. Effective April 30, 2014, this agreement was amended to revise the maximum commitment to $50 million . For the years ended December 31, 2017 and 2016 , ACC did not draw upon the Capital Support Agreement and had met all applicable capital requirements. Threadneedle’s required capital is predominantly based on the requirements specified by its regulator, the Financial Conduct Authority (“FCA”), under its Capital Adequacy Requirements for asset managers. The Company has five broker-dealer subsidiaries, American Enterprise Investment Services Inc., Ameriprise Financial Services, Inc., RiverSource Distributors, Inc., Columbia Management Investment Distributors, Inc. and IPI. The broker-dealers are subject to the net capital requirements of the Financial Industry Regulatory Authority (“FINRA”) and the Uniform Net Capital requirements of the SEC under Rule 15c3-1 of the Securities Exchange Act of 1934. Ameriprise Trust Company is subject to capital adequacy requirements under the laws of the State of Minnesota as enforced by the Minnesota Department of Commerce. Ameriprise National Trust Bank is subject to regulation by the Comptroller of Currency (“OCC”) and, to a limited extent, by the Federal Deposit Insurance Corporation. As a limited powers national association, Ameriprise National Trust Bank is subject to supervision under various laws and regulations enforced by the OCC, including those related to capital adequacy, liquidity and conflicts of interest. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Text Block] | Income Taxes The components of income tax provision attributable to continuing operations were as follows: Years Ended December 31, 2017 2016 2015 (in millions) Current income tax Federal $ 468 $ 245 $ 509 State and local 58 44 36 Foreign 52 23 41 Total current income tax 578 312 586 Deferred income tax Federal 169 (36 ) (124 ) State and local (5 ) 3 (4 ) Foreign (8 ) (1 ) (3 ) Total deferred income tax 156 (34 ) (131 ) Total income tax provision $ 734 $ 278 $ 455 On December 22, 2017, the Tax Act was signed into law. The provision for income taxes for the year ended December 31, 2017 includes an expense of $286 million due to the enactment of the Tax Act. The $286 million expense includes: 1) a $221 million expense for the remeasurement of deferred tax assets and liabilities to the Tax Act’s statutory rate of 21%; 2) a $57 million expense for the foreign provisions of the Tax Act, including a deemed repatriation tax of the Company’s total post-1986 earnings and profits (“E&P”); and 3) an $8 million expense for the remeasurement of tax contingencies, specifically state tax contingencies and interest accrued for tax contingencies. The Company considers the expenses related to the remeasurement of deferred tax assets and liabilities and the foreign provisions of the Tax Act to be provisional amounts based on reasonable estimates as discussed below. The geographic sources of pretax income from continuing operations were as follows: Years Ended December 31, 2017 2016 2015 (in millions) United States $ 1,988 $ 1,412 $ 1,710 Foreign 226 180 432 Total $ 2,214 $ 1,592 $ 2,142 The principal reasons that the aggregate income tax provision attributable to continuing operations is different from that computed by using the U.S. statutory rate of 35% were as follows: Years Ended December 31, 2017 2016 2015 Tax at U.S. statutory rate 35.0 % 35.0 % 35.0 % Changes in taxes resulting from: Impact of the Tax Act 13.0 — — Dividends received deduction (5.8 ) (7.6 ) (6.7 ) Low income housing tax credits (3.4 ) (4.2 ) (3.0 ) Incentive compensation (3.0 ) — — Foreign taxes (2.0 ) (2.5 ) — Foreign tax credits, net of addback — (1.6 ) (2.1 ) Taxes applicable to prior years — (3.1 ) — State taxes, net of federal benefit — 1.9 — Net income attributable to noncontrolling interests — — (2.0 ) Other, net (0.7 ) (0.5 ) 0.1 Income tax provision 33.1 % 17.4 % 21.3 % The increase in the Company’s effective tax rate for the year ended December 31, 2017 compared to 2016 was primarily due to a $286 million expense in 2017 due to provisions of the Tax Act, including remeasurement of net deferred tax assets, a deemed repatriation of E&P and remeasurement of tax contingencies, partially offset by a $70 million benefit for net excess tax benefits related to the adoption of a new accounting standard for employee share-based payments. The decrease in the Company’s effective tax rate in 2016 compared to 2015 is primarily the result of lower pretax income in relation to tax preferred items including the dividends received deduction, low income housing tax credits and a $27 million benefit related to final resolution on the 1997 through 2005 IRS audit. As of December 31, 2017, the Company had not fully completed its accounting for the tax effects of the enactment of the Tax Act; however, the Company is able to provide reasonable estimates of the Tax Act’s impact. The Company’s provision for income taxes for the year ended December 31, 2017 is based in part on a reasonable estimate of the remeasurement of deferred tax assets and liabilities and the foreign provisions of the Tax Act. The Company recognized a provisional tax amount of $278 million , which is included as a component of provision for income taxes from continuing operations. The Company considers the accounting for the Tax Act’s expense related to remeasurement of tax contingencies to be final and complete. The components of the provisional tax amounts are as follows: • The Company recorded a provisional tax amount of $221 million to remeasure certain deferred tax assets and liabilities as a result of the enactment of the Tax Act. The Company is still analyzing certain aspects of the Tax Act and is refining the estimate of the expected reversal of its deferred tax balances. This can potentially affect the measurement of these balances or give rise to new deferred tax amounts. In addition, further guidance from federal and state taxing authorities may change the provisional tax liability or the accounting treatment of the provisional tax liability. • The Company recorded a provisional tax amount of $57 million related to the foreign provisions of the Tax Act. This expense is primarily related to a deemed repatriation of the Company’s post-1986 E&P, including the state taxation of the deemed repatriation. The Company has calculated this amount based on reliable estimates but has not yet finalized the calculation of the total post-1986 foreign E&P and the income tax pools for all foreign subsidiaries. In addition, the deemed repatriation tax is calculated, in part, on the amount of E&P held in cash and other specified assets. This amount may change when the Company finalizes the calculation of post-1986 foreign E&P previously deferred from U.S. federal taxation and finalizes the amounts held in cash or other specified assets. In addition, further guidance from federal and state taxing authorities may change the provisional tax liability or the accounting treatment of the provisional tax liability. The U.S. federal component of the deemed repatriation tax is payable over an eight-year period. Accumulated earnings of certain foreign subsidiaries, which totaled $429 million at December 31, 2017 , are intended to be permanently reinvested outside the United States. Total foreign accumulated earnings and profits have been subjected to U.S. income tax as a part of the Tax Act. No additional tax expense is expected on the accumulated earnings that are permanently reinvested. Deferred income tax assets and liabilities result from temporary differences between the assets and liabilities measured for GAAP reporting versus income tax return purposes. Deferred income tax assets and liabilities are measured at the statutory rate of 21% as of December 31, 2017 and 35% as of December 31, 2016. The significant components of the Company’s deferred income tax assets and liabilities, which are included net within other assets or other liabilities on the Consolidated Balance Sheets, were as follows: December 31, 2017 2016 (in millions) Deferred income tax assets Liabilities for policyholder account balances, future policy benefits and claims $ 620 $ 1,177 Deferred compensation 345 439 Investment related 245 253 Postretirement benefits 34 62 Currency translation adjustments — 73 Other 66 68 Gross deferred income tax assets 1,310 2,072 Less: valuation allowance 17 11 Total deferred income tax assets 1,293 2,061 Deferred income tax liabilities Deferred acquisition costs 446 717 Net unrealized gains on Available-for-Sale securities 162 264 Depreciation expense 93 146 Intangible assets 93 126 Deferred sales inducement costs 62 113 Goodwill 52 74 Other 7 2 Gross deferred income tax liabilities 915 1,442 Net deferred income tax assets $ 378 $ 619 Included in the Company’s deferred income tax assets are tax benefits primarily related to state net operating losses of $17 million , net of federal benefit, which will expire beginning December 31, 2018 . Based on analysis of the Company’s tax position, management believes it is more likely than not that the Company will not realize certain state net operating losses and state deferred tax assets; therefore, a valuation allowance of $17 million has been established. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows: 2017 2016 2015 (in millions) Balance at January 1 $ 115 $ 161 $ 242 Additions based on tax positions related to the current year 16 15 18 Additions for tax positions of prior years 3 33 48 Reductions for tax positions of prior years (57 ) (87 ) (147 ) Audit settlements (1 ) (7 ) — Balance at December 31 $ 76 $ 115 $ 161 If recognized, approximately $58 million , $46 million and $57 million , net of federal tax benefits, of unrecognized tax benefits as of December 31, 2017 , 2016 , and 2015 , respectively, would affect the effective tax rate. It is reasonably possible that the total amounts of unrecognized tax benefits will change in the next 12 months. The Company estimates that the total amount of gross unrecognized tax benefits may decrease by $20 million to $30 million in the next 12 months primarily due to IRS settlements and state exams. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized nil , a net decrease of $43 million , and a net increase of $3 million in interest and penalties for the years ended December 31, 2017 , 2016 , and 2015 , respectively. At both December 31, 2017 and 2016 , the Company had a payable of $8 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. In the third quarter of 2017, the Company received final cash settlements for resolution of the 2006 through 2011 IRS audits. The IRS has completed its examination of the 2008 through 2010 tax returns and these years are effectively settled; however, the statutes of limitation, remain open for certain carryover adjustments. The IRS is currently auditing the Company’s U.S. income tax returns for 2012 through 2015. The Company’s state income tax returns are currently under examination by various jurisdictions for years ranging from 2005 through 2015. |
Retirement Plans and Profit Sha
Retirement Plans and Profit Sharing Arrangements | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Retirement Plans and Profit Sharing Arrangements [Text Block] | Retirement Plans and Profit Sharing Arrangements Defined Benefit Plans Pension Plans and Other Postretirement Benefits The Company’s U.S. non-advisor employees are generally eligible for the Ameriprise Financial Retirement Plan (the “Retirement Plan”), a noncontributory defined benefit plan which is a qualified plan under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). Funding of costs for the Retirement Plan complies with the applicable minimum funding requirements specified by ERISA and is held in a trust. The Retirement Plan is a cash balance plan by which the employees’ accrued benefits are based on notional account balances, which are maintained for each individual. Each pay period these balances are credited with an amount equal to a percentage of eligible compensation as defined by the Retirement Plan (which includes, but is not limited to, base pay, performance based incentive pay, commissions, shift differential and overtime). Prior to March 1, 2010, the percentage ranged from 2.5% to 10% based on employees’ age plus years of service. Effective March 1, 2010, the percentage ranges from 2.5% to 5% based on employees’ years of service. Employees eligible for the plan at the time of the change will continue to receive the same percentage they were receiving until the new schedule becomes more favorable. Employees’ balances are also credited with a fixed rate of interest that is updated each January 1 and is based on the average of the daily five -year U.S. Treasury Note yields for the previous October 1 through November 30, with a minimum crediting rate of 5% . Employees are fully vested after three years of service or upon retirement at or after age 65, disability or death while employed. Employees have the option to receive annuity payments or a lump sum payout of vested balance at termination or retirement. The Retirement Plan’s year-end is September 30. In addition, the Company sponsors the Ameriprise Financial Supplemental Retirement Plan (the “SRP”), an unfunded non-qualified deferred compensation plan subject to Section 409A of the Internal Revenue Code. This plan is for certain highly compensated employees to replace the benefit that cannot be provided by the Retirement Plan due to IRS limits. The SRP generally parallels the Retirement Plan but offers different payment options. The Company also sponsors unfunded defined benefit postretirement plans that provide health care and life insurance to retired U.S. employees. On December 31, 2016, the access to retiree health care coverage was closed to all active employees who had previously met the qualification requirements. Instead, only existing retirees, as of January 1, 2017, qualifying for the plan and electing coverage will be provided a fixed amount to subsidize health care insurance purchased through other providers. Net periodic postretirement benefit costs were not material for the years ended December 31, 2017 , 2016 and 2015 . Most employees outside the U.S. are covered by local retirement plans, some of which are funded, while other employees receive payments at the time of retirement or termination under applicable labor laws or agreements. All components of the net periodic benefit cost are recorded in general and administrative expense and were as follows: Years Ended December 31, 2017 2016 2015 (in millions) Service cost $ 47 $ 44 $ 46 Interest cost 28 29 27 Expected return on plan assets (45 ) (41 ) (40 ) Amortization of prior service costs (1 ) (1 ) (1 ) Amortization of net loss 10 6 9 Other 3 4 4 Net periodic benefit cost $ 42 $ 41 $ 45 The prior service costs are amortized on a straight-line basis over the average remaining service period of active participants. Actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation or the market-related value of assets are amortized on a straight-line basis over the expected average remaining service period of active participants. The following table provides a reconciliation of changes in the benefit obligation: Pension Plans Other Postretirement Plans 2017 2016 2017 2016 (in millions) Benefit obligation, January 1 $ 899 $ 812 $ 15 $ 18 Service cost 47 44 — — Interest cost 28 29 — 1 Benefits paid (12 ) (8 ) (1 ) (4 ) Actuarial (gain) loss 39 65 1 — Plan change — — — (2 ) Participant contributions — — — 2 Settlements (21 ) (18 ) — — Foreign currency rate changes 15 (25 ) — — Benefit obligation, December 31 $ 995 $ 899 $ 15 $ 15 The following table provides a reconciliation of changes in the fair value of assets: Pension Plans 2017 2016 (in millions) Fair value of plan assets, January 1 $ 628 $ 608 Actual return on plan assets 107 62 Employer contributions 32 13 Benefits paid (12 ) (8 ) Settlements (21 ) (18 ) Foreign currency rate changes 14 (29 ) Fair value of plan assets, December 31 $ 748 $ 628 The Company complies with the minimum funding requirements in all countries. The following table provides the amounts recognized in the Consolidated Balance Sheets at December 31, which equal the funded status of the plans: Pension Plans Other Postretirement Plans 2017 2016 2017 2016 (in millions) Benefit liability $ (253 ) $ (271 ) $ (15 ) $ (15 ) Benefit asset 6 — — — Net amount recognized $ (247 ) $ (271 ) $ (15 ) $ (15 ) The accumulated benefit obligation for all pension plans as of December 31, 2017 and 2016 was $916 million and $822 million , respectively. The following table provides information for pension plans with benefit obligations in excess of plan assets: December 31, 2017 2016 (in millions) Pension plans with accumulated benefit obligations in excess of plan assets Accumulated benefit obligation $ 759 $ 684 Fair value of plan assets 562 469 Pension plans with projected benefit obligations in excess of plan assets Projected benefit obligation $ 816 $ 899 Fair value of plan assets 562 628 The weighted average assumptions used to determine benefit obligations were as follows: Pension Plans Other Postretirement Plans 2017 2016 2017 2016 Discount rates 3.32 % 3.66 % 3.41 % 3.77 % Rates of increase in compensation levels 4.29 4.39 N/A N/A The weighted average assumptions used to determine net periodic benefit cost of pension plans were as follows: 2017 2016 2015 Discount rates 3.64 % 3.67 % 3.43 % Rates of increase in compensation levels 4.39 4.43 4.41 Expected long-term rates of return on assets 7.13 6.98 7.10 In developing the expected long-term rate of return on assets, management evaluated input from an external consulting firm, including their projection of asset class return expectations and long-term inflation assumptions. The Company also considered historical returns on the plans’ assets. Discount rates are based on yields available on high-quality corporate bonds that would generate cash flows necessary to pay the benefits when due. The Company’s pension plans’ assets are invested in an aggregate diversified portfolio to minimize the impact of any adverse or unexpected results from a security class on the entire portfolio. Diversification is interpreted to include diversification by asset type, performance and risk characteristics and number of investments. When appropriate and consistent with the objectives of the plans, derivative instruments may be used to mitigate risk or provide further diversification, subject to the investment policies of the plans. Asset classes and ranges considered appropriate for investment of the plans’ assets are determined by each plan’s investment committee. The target allocations are 70% equity securities, 20% debt securities and 10% all other types of investments, except for the assets in pooled pension funds which are 83% equity securities and 17% debt securities and additional voluntary contribution (“AVC”) assets outside the U.S. which are allocated at the discretion of the individual and will be converted at retirement into the defined benefit pension plan. Actual allocations will generally be within 5% of these targets. At December 31, 2017 , there were no significant holdings of any single issuer and the exposure to derivative instruments was not significant. The following tables present the Company’s pension plan assets measured at fair value on a recurring basis: Asset Category December 31, 2017 Level 1 Level 2 Level 3 Total (in millions) Equity securities: U.S. large cap stocks $ 95 $ 94 $ — $ 189 U.S. small cap stocks 76 4 — 80 Non-U.S. large cap stocks 28 43 — 71 Non-U.S. small cap stocks 28 — — 28 Emerging markets 19 32 — 51 Debt securities: U.S. investment grade bonds 27 11 — 38 U.S. high yield bonds — 26 — 26 Non-U.S. investment grade bonds — 16 — 16 Real estate investment trusts at NAV — — — 18 (1) Hedge funds at NAV — — — 27 (1) Pooled pension funds — 166 — 166 AVC assets (pooled pension funds) — 20 — 20 Cash equivalents 18 — — 18 Total $ 291 $ 412 $ — $ 748 Asset Category December 31, 2016 Level 1 Level 2 Level 3 Total (in millions) Equity securities: U.S. large cap stocks $ 73 $ 76 $ — $ 149 U.S. small cap stocks 69 4 — 73 Non-U.S. large cap stocks 22 34 — 56 Non-U.S. small cap stocks 21 — — 21 Emerging markets 14 23 — 37 Debt securities: U.S. investment grade bonds 26 10 — 36 U.S. high yield bonds — 24 — 24 Non-U.S. investment grade bonds — 14 — 14 Real estate investment trusts at NAV — — — 17 (1) Hedge funds at NAV — — — 26 (1) Pooled pension funds — 142 — 142 AVC assets (pooled pension funds) — 17 — 17 Cash equivalents 16 — — 16 Total $ 241 $ 344 $ — $ 628 (1) Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. See Note 2 for further information. Equity securities are managed to track the performance of common market indices for both U.S. and non-U.S. securities, primarily across large cap, small cap and emerging market asset classes. Debt securities are managed to track the performance of common market indices for both U.S. and non-U.S. investment grade bonds as well as a pool of U.S. high yield bonds. Real estate funds are managed to track the performance of a broad population of investment grade non-agricultural income producing properties. The Company’s investments in hedge funds include investments in a multi-strategy fund and an off-shore fund managed to track the performance of broad fund of fund indices. Pooled pension funds are managed to track a specific benchmark based on the investment objectives of the fund. Cash equivalents consist of holdings in a money market fund that seeks to equal the return of the three month U.S. Treasury bill. The fair value of real estate funds and hedge funds is measured at NAV as a practical expedient and is based upon the total net assets held by the respective fund. These funds have not been classified within the fair value hierarchy. The fair value of pooled pension funds and equity securities held in collective trust funds is based on the fund’s NAV and classified as Level 2 as they trade in principal-to-principal markets. Equity securities and mutual funds traded in active markets are classified as Level 1. For debt securities and cash equivalents, the valuation techniques and classifications are consistent with those used for the Company’s own investments as described in Note 14. The amounts recognized in AOCI, net of tax, as of December 31, 2017 but not recognized as components of net periodic benefit cost included an unrecognized actuarial loss of $99 million , an unrecognized prior service credit of nil , and a currency exchange rate adjustment loss of $2 million related to the Company’s pension plans. The Company’s other postretirement plans included an unrecognized actuarial gain of $3 million and an unrecognized prior service credit of $1 million . The estimated amounts that will be amortized from AOCI, net of tax, into net periodic benefit cost in 2018 include a prior service credit of nil and an actuarial loss of $7 million related to Company’s pension plans and an actuarial gain of nil related to Company’s other postretirement plans. See Note 18 for a rollforward of AOCI related to the Company’s defined benefit plans. The Company’s pension plans expect to make benefit payments to retirees as follows: Pension Plans Other Postretirement Plans 2018 $ 83 $ 1 2019 62 1 2020 61 1 2021 74 1 2022 70 1 2023-2027 390 5 The Company expects to contribute $26 million and $1 million to its pension plans and other postretirement plans, respectively, in 2018 . Defined Contribution Plans The Company’s employees are generally eligible to participate in the Ameriprise Financial 401(k) Plan (the “401(k) Plan”). The 401(k) Plan allows eligible employees to make contributions through payroll deductions up to IRS limits and invest their contributions in one or more of the 401(k) Plan investment options, which include the Ameriprise Financial Stock Fund. The Company provides a dollar for dollar match up to the first 5% of eligible compensation an employee contributes on a pretax and/or Roth 401(k) basis for each annual period. Under the 401(k) Plan, employees become eligible for contributions under the plan during the pay period they reach 60 days of service. Match contributions are fully vested after five years of service, vesting ratably over the first five years of service, or upon retirement at or after age 65, disability or death while employed. The Company’s defined contribution plan expense was $49 million , $48 million and $47 million in 2017 , 2016 and 2015 , respectively. Employees outside the U.S. who are not covered by the 401(k) may be covered by local defined contribution plans which are subject to applicable laws and rules of the country where the plan is administered. The Company’s expense related to defined contribution plans outside the U.S. was $5 million , $6 million and $6 million in 2017 , 2016 and 2015 , respectively. |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies Commitments, Guarantees and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Contingencies and Guarantees [Text Block] | Commitments, Guarantees and Contingencies Commitments The Company is committed to pay aggregate minimum rentals under noncancelable operating leases for office facilities in future years as of December 31, 2017 as follows: (in millions) 2018 $ 69 2019 58 2020 48 2021 35 2022 27 Thereafter 78 Total (1) $ 315 (1) Minimum payments have not been reduced by minimum sublease rentals due in the future under noncancelable subleases. For the years ended December 31, 2017 , 2016 and 2015 , operating lease expense was $84 million , $59 million and $67 million , respectively. The following table presents the Company’s funding commitments as of December 31: 2017 2016 (in millions) Commercial mortgage loans $ 31 $ 78 Consumer mortgage loans — 185 Consumer lines of credit 2 2 Affordable housing and other real estate partnerships 123 177 Total funding commitments $ 156 $ 442 The decrease in consumer mortgage loan funding commitments at December 31, 2017 compared to the prior year is due to the sale of loans. See Note 6 for additional information. Guarantees The Company’s life and annuity products all have minimum interest rate guarantees in their fixed accounts. As of December 31, 2017 , t hese guarantees range from 1% to 5% . Contingencies RiverSource Life and RiverSource Life of NY are required by law to be a member of the guaranty fund association in every state where they are licensed to do business. In the event of insolvency of one or more unaffiliated insurance companies, the Company could be adversely affected by the requirement to pay assessments to the guaranty fund associations. The Company projects its cost of future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and Health Insurance Guaranty Associations (“NOLHGA”) and the amount of its premiums written relative to the industry-wide premium in each state. The Company accrues the estimated cost of future guaranty fund assessments when it is considered probable that an assessment will be imposed, the event obligating the Company to pay the assessment has occurred and the amount of the assessment can be reasonably estimated. The Company has a liability for estimated guaranty fund assessments and a related premium tax asset. At December 31, 2017 and 2016 , the estimated liability was $14 million and $16 million , respectively, and the related premium tax asset was $12 million and $14 million , respectively. The expected period over which guaranty fund assessments will be made and the related tax credits recovered is not known. 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, FINRA, the OCC, 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. The Company has numerous pending matters which include information requests, exams or inquiries that the Company has received during recent periods regarding certain matters, including: sales and distribution of mutual funds, exchange traded funds, annuities, equity and fixed income securities, real estate investment trusts, insurance products, and financial advice offerings, including managed accounts; supervision of the Company’s financial advisors; administration of insurance and annuity claims; security of client information; trading activity and the Company’s monitoring and supervision of such activity; performance advertising and product disclosures, including third party performance claims; and transaction monitoring systems and controls. The Company is also participating in regulatory audits, market conduct examinations and other state inquiries relating to an industry-wide investigation of unclaimed property and escheatment practices and procedures. The Company has cooperated and will continue to cooperate with the applicable regulators. 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 reasonably possible, or to reasonably estimate the amount of any loss. The Company cannot predict with certainty if, how or when any such proceedings will be initiated or resolved 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, results of operations or liquidity. In accordance with applicable accounting standards, the Company establishes an accrued liability for contingent litigation and regulatory matters when those matters present loss contingencies that are both probable and can be reasonably estimated. 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 November 2014, a lawsuit was filed against the Company’s London-based asset management affiliate in England’s High Court of Justice Commercial Court, entitled Otkritie Capital International Ltd and JSC Otkritie Holding v. Threadneedle Asset Management Ltd. and Threadneedle Management Services Ltd. (“Threadneedle Defendants”). Claimants allege that the Threadneedle Defendants should be held liable for the wrongful acts of one of its former employees, who in February 2014 was held jointly and severally liable with several other parties for conspiracy and dishonest assistance in connection with a fraud perpetrated against Claimants in 2011. Claimants allege they were harmed by that fraud in the amount of $106 million . The Threadneedle Defendants applied to the Court for an Order dismissing the proceedings as an abuse of process of the Court. This application was declined in August 2015. The Threadneedle Defendants applied to the Court of Appeal for leave to appeal, which application was granted in November 2015. In April 2017, the Court of Appeal denied the Threadneedle Defendants’ appeal. As a result, the case will proceed in England’s High Court of Justice, Commercial Court. A Case Management Conference was held October 6, 2017, and it was directed that trial of the matter shall not be set before May 1, 2019. The Company’s reasonable estimate of the range of loss, if any, that may result from this matter is not expected to have a material effect on its consolidated results of operations or financial condition. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions [Text Block] | Related Party Transactions The Company may engage in transactions in the ordinary course of business with significant shareholders or their subsidiaries, between the Company and its directors and officers or with other companies whose directors or officers may also serve as directors or officers for the Company or its subsidiaries. The Company carries out these transactions on customary terms. The transactions have not had a material impact on the Company’s consolidated results of operations or financial condition. The Company’s executive officers and directors may have transactions with the Company or its subsidiaries involving financial products and insurance services. All obligations arising from these transactions are in the ordinary course of the Company’s business and are on the same terms in effect for comparable transactions with the general public. Such obligations involve normal risks of collection and do not have features or terms that are unfavorable to the Company or its subsidiaries. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information [Text Block] | Segment Information The Company’s reporting segments are Advice & Wealth Management, Asset Management, Annuities, Protection and Corporate & Other. Beginning in the first quarter of 2017, the long term care business, which had been reported as part of the Protection segment, is reflected in the Corporate & Other segment. The Company discontinued underwriting long term care insurance in 2002 and the transfer of this closed block to the Corporate & Other segment allows investors to better understand the performance of the Company’s on-going Protection businesses. Prior periods presented have been restated to reflect the change. 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. The largest source of intersegment revenues and expenses is retail distribution services, where segments are charged transfer pricing rates that approximate arm’s length market prices for distribution through the Advice & Wealth Management segment. The Advice & Wealth Management segment provides distribution services for affiliated and non-affiliated products and services. The Asset Management segment provides investment management services for the Company’s owned assets and client assets, and accordingly charges investment and advisory management fees to the other segments. All costs related to shared services are allocated to the segments based on a rate times volume or fixed basis. The Advice & Wealth Management segment provides financial planning and advice, as well as full-service brokerage services, primarily to retail clients through the Company’s advisors. These services are centered on long-term, personal relationships between the Company’s advisors and its clients and focus on helping clients confidently achieve their financial goals. The Company’s advisors provide a distinctive approach to financial planning and have access to a broad selection of both affiliated and non-affiliated products to help clients meet their financial needs. A significant portion of revenues in this segment is fee-based, driven by the level of client assets, which is impacted by both market movements and net asset flows. The Company also earns net investment income on invested assets primarily from certificate products. This segment earns revenues (distribution fees) for distributing non-affiliated products and intersegment revenues (distribution fees) for distributing the Company’s affiliated products and services provided to its retail clients. Intersegment expenses for this segment include expenses for investment management services provided by the Asset Management segment. The Asset Management segment provides investment management and advice and investment products to retail, high net worth and institutional clients on a global scale through the Columbia Threadneedle Investments brand, which represents the combined capabilities, resources and reach of Columbia Management Investment Advisers, LLC (“Columbia Management”) and Threadneedle. Columbia Management primarily provides products and services in the U.S. and Threadneedle primarily provides products and services internationally. The Company provides U.S. retail clients with products through unaffiliated third party financial institutions and through the Advice & Wealth Management segment, and provides institutional products and services through its institutional sales force. Retail products for non-U.S. investors are primarily distributed through third-party financial institutions and unaffiliated financial advisors. Retail products include U.S. mutual funds and their non-U.S. equivalents, exchange-traded funds and variable product funds underlying insurance and annuity separate accounts. Institutional asset management services are designed to meet specific client objectives and may involve a range of products, including those that focus on traditional asset classes, separately managed accounts, individually managed accounts, CLOs, hedge fund or alternative strategies, collective funds and property funds. CLOs, hedge fund or alternative strategies and certain private funds are often classified as alternative assets. Revenues in this segment are primarily earned as fees based on managed asset balances, which are impacted by market movements, net asset flows, asset allocation and product mix. The Company may also earn performance fees from certain accounts where investment performance meets or exceeds certain pre-identified targets. The Asset Management segment also provides intercompany asset management services for Ameriprise Financial subsidiaries. The fees for all such services are reflected within the Asset Management segment results through intersegment transfer pricing. Intersegment expenses for this segment include distribution expenses for services provided by the Advice & Wealth Management, Annuities and Protection segments. The Annuities segment provides variable and fixed annuity products of RiverSource Life companies to individual clients. The Company provides variable annuity products through its advisors and its fixed annuity products are distributed through both affiliated and unaffiliated advisors and financial institutions. Revenues for the Company’s variable annuity products are primarily earned as fees based on underlying account balances, which are impacted by both market movements and net asset flows. Revenues for the Company’s fixed deferred annuity products are primarily earned as net investment income on assets supporting fixed account balances, with profitability significantly impacted by the spread between net investment income earned and interest credited on the fixed account balances. The Company also earns net investment income on owned assets supporting reserves for immediate annuities with a non-life contingent feature and for certain guaranteed benefits offered with variable annuities and on capital supporting the business. Revenues for the Company’s immediate annuities with a life contingent feature are earned as premium revenue. Intersegment revenues for this segment reflect fees paid by the Asset Management segment for marketing support and other services provided in connection with the availability of variable insurance trust funds (“VIT Funds”) under the variable annuity contracts. Intersegment expenses for this segment include distribution expenses for services provided by the Advice & Wealth Management segment, as well as expenses for investment management services provided by the Asset Management segment. The Protection segment offers a variety of products to address the protection and risk management needs of the Company’s retail clients including life, DI and property casualty insurance. Life and DI products are primarily provided through the Company’s advisors. The Company’s property casualty products are sold through affinity relationships. The Company issues insurance policies through its life insurance subsidiaries and the Property Casualty companies. The primary sources of revenues for this segment are premiums, fees, and charges that the Company receives to assume insurance-related risk. The Company earns net investment income on owned assets supporting insurance reserves and capital supporting the business. The Company also receives fees based on the level of assets supporting VUL separate account balances. This segment earns intersegment revenues from fees paid by the Asset Management segment for marketing support and other services provided in connection with the availability of VIT Funds under the VUL contracts. Intersegment expenses for this segment include distribution expenses for services provided by the Advice & Wealth Management segment, as well as expenses for investment management services provided by the Asset Management segment. The Corporate & Other segment consists of net investment income or loss on corporate level assets, including excess capital held in the Company’s subsidiaries and other unallocated equity and other revenues as well as unallocated corporate expenses. The Corporate & Other segment also includes the results of the Company’s closed block long term care business. The Corporate & Other segment also includes revenues and expenses of consolidated investment entities, which are excluded on an operating basis. Management uses segment operating measures in goal setting, as a basis for determining employee compensation and in evaluating performance on a basis comparable to that used by some securities analysts and investors. Consistent with GAAP accounting guidance for segment reporting, operating earnings is the Company’s measure of segment performance. Operating earnings should not be viewed as a substitute for GAAP income from continuing operations before income tax provision. The Company believes the presentation of segment operating earnings, as the Company measures it for management purposes, enhances the understanding of its business by reflecting the underlying performance of its core operations and facilitating a more meaningful trend analysis. Operating earnings is defined as operating net revenues less operating expenses. Operating net revenues and operating expenses exclude results of discontinued operations, the market impact on IUL benefits (net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual), integration and restructuring charges and the impact of consolidating investment entities. Operating net revenues also exclude net realized investment gains or losses (net of unearned revenue amortization and the reinsurance accrual) and the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments. 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 fixed index annuity benefits (net of hedges and the related DAC amortization), and the DSIC and DAC amortization offset to net realized investment gains or losses. The market impact on variable annuity guaranteed benefits, fixed index annuity benefits and IUL benefits includes changes in embedded derivative values caused by changes in financial market conditions, net of changes in economic hedge values and unhedged items including the difference between assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and certain policyholder contract elections, net of related impacts on DAC and DSIC amortization. The market impact also includes certain valuation adjustments made in accordance with FASB Accounting Standards Codification 820, Fair Value Measurements and Disclosures, including the impact on embedded derivative values of discounting projected benefits to reflect a current estimate of the Company’s life insurance subsidiary’s nonperformance spread. The following tables summarize selected financial information by segment and reconcile segment totals to those reported on the consolidated financial statements: December 31, 2017 2016 (in millions) Advice & Wealth Management $ 13,270 $ 12,654 Asset Management 8,393 7,254 Annuities 98,276 93,481 Protection 18,039 16,780 Corporate & Other 9,492 9,652 Total assets $ 147,470 $ 139,821 Years Ended December 31, 2017 2016 2015 (in millions) Operating net revenues: Advice & Wealth Management $ 5,506 $ 5,036 $ 5,013 Asset Management 3,077 2,964 3,254 Annuities 2,499 2,463 2,541 Protection 2,044 2,241 2,131 Corporate & Other 173 237 256 Eliminations (1) (1,411 ) (1,406 ) (1,461 ) Total segment operating revenues 11,888 11,535 11,734 Net realized gains (losses) 46 6 4 Revenue attributable to CIEs 94 128 446 Market impact on IUL benefits, net 1 24 7 Market impact of hedges on investments (2 ) 3 (21 ) Total net revenues per consolidated statements of operations $ 12,027 $ 11,696 $ 12,170 (1) Represents the elimination of intersegment revenues recognized for the years ended December 31, 2017 , 2016 and 2015 in each segment as follows: Advice and Wealth Management ( $953 , $982 and $1,035 , respectively); Asset Management ( $47 , $44 and $43 , respectively); Annuities ( $351 , $333 and $340 , respectively); Protection ( $62 , $46 and $42 , respectively); and Corporate & Other ( $(2) , $1 and $1 , respectively). Years Ended December 31, 2017 2016 2015 (in millions) Operating earnings: Advice & Wealth Management $ 1,163 $ 911 $ 859 Asset Management 740 621 761 Annuities 710 329 650 Protection 216 263 198 Corporate & Other (426 ) (359 ) (214 ) Total segment operating earnings 2,403 1,765 2,254 Net realized gains (losses) 44 6 4 Net income (loss) attributable to CIEs 2 (2 ) 125 Market impact on variable annuity guaranteed benefits, net (232 ) (216 ) (214 ) Market impact on IUL benefits, net 4 36 (1 ) Market impact of hedges on investments (2 ) 3 (21 ) Integration and restructuring charges (5 ) — (5 ) Pretax income per consolidated statements of operations $ 2,214 $ 1,592 $ 2,142 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) [Text Block] | Quarterly Financial Data (Unaudited) 2017 2016 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31 (in millions, except per share data) Net revenues $ 3,160 $ 2,981 $ 2,985 $ 2,901 $ 3,062 $ 2,998 $ 2,871 $ 2,765 Pretax income 600 628 511 475 469 238 410 475 Net income 181 503 393 403 400 215 335 364 Earnings per share: Basic $ 1.20 $ 3.29 $ 2.53 $ 2.56 $ 2.49 $ 1.31 $ 1.99 $ 2.11 Diluted $ 1.18 $ 3.24 $ 2.50 $ 2.52 $ 2.46 $ 1.30 $ 1.97 $ 2.09 Weighted average common shares outstanding: Basic 151.0 153.0 155.1 157.5 160.4 164.0 168.3 172.6 Diluted 153.8 155.4 157.5 160.1 162.4 165.8 170.1 174.4 Cash dividends declared per common share $ 0.83 $ 0.83 $ 0.83 $ 0.75 $ 0.75 $ 0.75 $ 0.75 $ 0.67 Common share price: High 173.62 149.99 133.02 135.20 119.32 101.81 102.74 105.47 Low 147.79 128.06 118.84 110.56 86.25 84.93 84.92 76.00 |
SCHEDULE I - CONDENSED FINANCIA
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Parent Company Only) | Schedule I — Condensed Financial Information of Registrant (Parent Company Only) Years Ended December 31, 2017 2016 2015 (in millions) Revenues Management and financial advice fees $ (1 ) $ (1 ) $ (1 ) Net investment income 11 14 2 Other revenues 11 9 14 Total revenues 21 22 15 Banking and deposit interest expense 5 1 — Total net revenues 16 21 15 Expenses Benefits, claims, losses and settlement expenses 76 41 13 Distribution expense 18 — — Interest and debt expense 116 113 124 General and administrative expense 249 192 193 Total expenses 459 346 330 Pretax loss before equity in earnings of subsidiaries (443 ) (325 ) (315 ) Income tax benefit (47 ) (146 ) (123 ) Loss before equity in earnings of subsidiaries (396 ) (179 ) (192 ) Equity in earnings of subsidiaries 1,876 1,493 1,754 Net income 1,480 1,314 1,562 Other comprehensive income (loss), net of tax 29 (59 ) (409 ) Total comprehensive income $ 1,509 $ 1,255 $ 1,153 See Notes to Condensed Financial Information of Registrant. Schedule I — Condensed Financial Information of Registrant (Parent Company Only) December 31, 2017 2016 (in millions, except share amounts) Assets Cash and cash equivalents $ 494 $ 754 Investments 341 314 Loans to subsidiaries 227 167 Due from subsidiaries 382 452 Receivables 5 10 Land, buildings, equipment, and software, net of accumulated depreciation of $1,111 and $1,005, respectively 236 221 Restricted and segregated cash — 24 Investments in subsidiaries 8,060 7,739 Other assets 1,146 1,240 Total assets $ 10,891 $ 10,921 Liabilities and Shareholders’ Equity Liabilities: Accounts payable and accrued expenses $ 627 $ 524 Due to subsidiaries 74 88 Borrowings from subsidiaries 363 364 Long-term debt 2,891 2,917 Other liabilities 938 736 Total liabilities 4,893 4,629 Shareholders’ Equity: Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 327,506,935 and 324,006,315, respectively) 3 3 Additional paid-in capital 8,085 7,765 Retained earnings 11,329 10,351 Treasury shares, at cost (180,872,271 and 169,246,411 shares, respectively) (13,648 ) (12,027 ) Accumulated other comprehensive income, net of tax, including amounts applicable to equity investments in subsidiaries 229 200 Total shareholders’ equity 5,998 6,292 Total liabilities and equity $ 10,891 $ 10,921 See Notes to Condensed Financial Information of Registrant. Schedule I — Condensed Financial Information of Registrant (Parent Company Only) Years Ended December 31, 2017 2016 2015 (in millions) Cash Flows from Operating Activities Net income $ 1,480 $ 1,314 $ 1,562 Equity in earnings of subsidiaries (1,876 ) (1,493 ) (1,754 ) Dividends received from subsidiaries 1,698 1,465 1,485 Other operating activities, primarily with subsidiaries 712 528 262 Net cash provided by operating activities 2,014 1,814 1,555 Cash Flows from Investing Activities Available-for-Sale securities: Proceeds from sales — 55 112 Maturities, sinking fund payments and calls 44 277 506 Purchases (77 ) (129 ) (28 ) Proceeds from sale of other investments 3 — 62 Purchase of other investments — — (5 ) Purchase of land, buildings, equipment and software (69 ) (49 ) (47 ) Contributions to subsidiaries (79 ) (197 ) (271 ) Return of capital from subsidiaries 47 187 146 Repayment of loans to subsidiaries 1,277 1,910 2,897 Issuance of loans to subsidiaries (1,337 ) (1,910 ) (2,897 ) Other, net (91 ) 59 6 Net cash provided by investing activities (282 ) 203 481 Cash Flows from Financing Activities Dividends paid to shareholders (491 ) (479 ) (465 ) Repurchase of common shares (1,485 ) (1,707 ) (1,741 ) Cash paid for purchased options with deferred premiums (19 ) (22 ) (19 ) Issuance of long-term debt, net of issuance costs — 496 — Repayments of long-term debt (11 ) (257 ) (409 ) Borrowings from subsidiaries 15 — 3 Repayments of borrowings from subsidiaries (15 ) — (18 ) Exercise of stock options 15 9 16 Other, net (1 ) 36 1 Net cash used in financing activities (1,992 ) (1,924 ) (2,632 ) Net increase (decrease) in cash and cash equivalents (260 ) 93 (596 ) Cash and cash equivalents at beginning of year 754 661 1,257 Cash and cash equivalents at end of year $ 494 $ 754 $ 661 Supplemental Disclosures: Interest paid on debt $ 128 $ 121 $ 154 Income taxes paid (received), net (368 ) (112 ) 378 Non-cash dividends from subsidiaries — 11 52 See Notes to Condensed Financial Information of Registrant. Schedule I — Condensed Financial Information of Registrant Notes to Condensed Financial Information of Registrant (Parent Company Only) 1. Basis of Presentation The accompanying Condensed Financial Statements include the accounts of Ameriprise Financial, Inc. (the “Registrant,” “Ameriprise Financial” or “Parent Company”) and, on an equity basis, its subsidiaries and affiliates. The financial statements have been prepared in accordance with U.S. generally accepted accounting principles. The financial information of the Parent Company should be read in conjunction with the Consolidated Financial Statements and Notes of Ameriprise Financial. Parent Company revenues and expenses, other than compensation and benefits and debt and interest expense, are primarily related to intercompany transactions with subsidiaries and affiliates. The change in the fair value of derivative instruments used as hedges is reflected in the Parent Company Only Condensed Statements of Operations. For certain of these derivatives, the change in the hedged item is reflected in the subsidiaries’ Statements of Operations. The change in fair value of certain derivatives used to economically hedge risk related to GMWB provisions is included in benefits, claims, losses and settlement expenses, while the underlying benefits, claims, losses and settlement expenses are reflected in equity in earnings of subsidiaries. In 2015, the Company recorded a capital lease that had previously been incorrectly recorded as an operating lease for Ameriprise Financial Center. The cumulative adjustment included a capital lease asset of $70 million , net of accumulated depreciation, and a related capital lease obligation of $60 million and a $10 million increase in pretax income. The lease term for the Ameriprise Financial Center began in November 2000 and extends for 20 years, with several options to extend the term. 2. Debt All of the debt of Ameriprise Financial is borrowings of the Parent Company, except as indicated below. • At both December 31, 2017 and 2016 , the debt of Ameriprise Financial included $50 million of repurchase agreements, which are accounted for as secured borrowings. • At both December 31, 2017 and 2016 , Ameriprise Financial had $150 million of borrowings from the Federal Home Loan Bank of Des Moines, which is collateralized with commercial mortgage backed securities. 3. Borrowings from Subsidiaries The Parent Company has intercompany lending arrangements with its subsidiaries. At the end of each business day, taking into consideration all legal and regulatory requirements associated with its subsidiaries, Ameriprise Financial is entitled to draw on all funds in specified bank accounts. Repayment of all or a portion of the funds is due on demand. The Parent Company also has revolving credit agreements with its subsidiaries as the borrower aggregating $1.0 billion of which nil was outstanding as of December 31, 2017 and 2016 . 4. Guarantees, Commitments and Contingencies The Parent Company is the guarantor for operating leases of IDS Property Casualty Insurance Company and certain other subsidiaries. All consolidated legal, regulatory and arbitration proceedings, including class actions of Ameriprise Financial, Inc. and its consolidated subsidiaries are potential or current obligations of the Parent Company. The Parent Company has committed revolving credit agreements with its subsidiaries as the lender aggregating $366 million as of December 31, 2017 . The Parent Company and Ameriprise Certificate Company (“ACC”) entered into a Capital Support Agreement on March 2, 2009, pursuant to which the Parent Company agrees to commit such capital to ACC as is necessary to satisfy applicable minimum capital requirements. Effective April 30, 2014, this agreement was amended to revise the maximum commitment to $50 million . For the years ended December 31, 2017 , 2016 and 2015 , ACC did not draw upon the Capital Support Agreement and had met all applicable capital requirements. The Parent Company and IDS Property Casualty Insurance Company (“IDS Property Casualty”) entered into a Capital Support Agreement on September 30, 2015, pursuant to which the Parent Company agrees to commit such capital to IDS Property Casualty as is necessary to maintain IDS Property Casualty’s current financial strength ratings by AM Best. The maximum capital amount is $150 million . Effective February 1, 2018, this agreement was amended to revise the expiration date to be April 1, 2019. For the year ended December 31, 2017 , IDS Property Casualty did not draw upon the Capital Support Agreement. Ameriprise Financial Services Inc. (“AFSI”) entered into a FINRA approved subrogation agreement with the Parent Company on December 15, 2014 for regulatory net capital purposes. The agreement consists of a $200 million secured demand note. The note is secured by cash and securities equal to the principal value of the note pledged by the Parent Company. For the year ended December 31, 2017 , AFSI had not made a demand of the principal amount. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Values of assets and liabilities [Text Block] | 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: December 31, 2017 Level 1 Level 2 Level 3 Total (in millions) Assets Cash equivalents $ 147 $ 2,025 $ — $ 2,172 Available-for-Sale securities: Corporate debt securities — 13,936 1,139 15,075 Residential mortgage backed securities — 6,456 155 6,611 Commercial mortgage backed securities — 4,374 — 4,374 Asset backed securities — 1,573 7 1,580 State and municipal obligations — 2,463 — 2,463 U.S. government and agency obligations 503 — — 503 Foreign government bonds and obligations — 314 — 314 Common stocks 1 — — 1 Common stocks measured at net asset value (“NAV”) 6 (1) Total Available-for-Sale securities 504 29,116 1,301 30,927 Trading securities 10 34 — 44 Separate account assets at NAV 87,368 (1) Investments segregated for regulatory purposes 623 — — 623 Other assets: Interest rate derivative contracts — 1,104 — 1,104 Equity derivative contracts 63 2,360 — 2,423 Foreign exchange derivative contracts 2 34 — 36 Total other assets 65 3,498 — 3,563 Total assets at fair value $ 1,349 $ 34,673 $ 1,301 $ 124,697 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 601 601 GMWB and GMAB embedded derivatives — — (49 ) (49 ) (2) Total policyholder account balances, future policy benefits and claims — 5 552 557 (3) Customer deposits — 10 — 10 Other liabilities: Interest rate derivative contracts 1 415 — 416 Equity derivative contracts 7 2,876 — 2,883 Credit derivative contracts — 2 — 2 Foreign exchange derivative contracts 4 23 — 27 Other 9 6 28 43 Total other liabilities 21 3,322 28 3,371 Total liabilities at fair value $ 21 $ 3,337 $ 580 $ 3,938 December 31, 2016 Level 1 Level 2 Level 3 Total (in millions) Assets Cash equivalents $ 30 $ 1,796 $ — $ 1,826 Available-for-Sale securities: Corporate debt securities — 14,925 1,311 16,236 Residential mortgage backed securities — 6,650 268 6,918 Commercial mortgage backed securities — 3,367 — 3,367 Asset backed securities — 1,481 68 1,549 State and municipal obligations — 2,358 — 2,358 U.S. government and agency obligations 8 — — 8 Foreign government bonds and obligations — 261 — 261 Common stocks 8 8 1 17 Common stocks at NAV 5 (1) Total Available-for-Sale securities 16 29,050 1,648 30,719 Trading securities 9 16 — 25 Separate account assets at NAV 80,210 (1) Investments segregated for regulatory purposes 425 — — 425 Other assets: Interest rate derivative contracts — 1,778 — 1,778 Equity derivative contracts 43 1,531 — 1,574 Credit derivative contracts — 1 — 1 Foreign exchange derivative contracts 13 80 — 93 Total other assets 56 3,390 — 3,446 Total assets at fair value $ 536 $ 34,252 $ 1,648 $ 116,651 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 464 464 GMWB and GMAB embedded derivatives — — 614 614 (4) Total policyholder account balances, future policy benefits and claims — 5 1,078 1,083 (5) Customer deposits — 8 — 8 Other liabilities: Interest rate derivative contracts 2 987 — 989 Equity derivative contracts 3 2,132 — 2,135 Foreign exchange derivative contracts 2 45 — 47 Other 3 8 13 24 Total other liabilities 10 3,172 13 3,195 Total liabilities at fair value $ 10 $ 3,185 $ 1,091 $ 4,286 (1) Amounts are comprised of certain financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. (2) The fair value of the GMWB and GMAB embedded derivatives included $443 million of individual contracts in a liability position and $492 million of individual contracts in an asset position at December 31, 2017. (3) The Company’s adjustment for nonperformance risk resulted in a $(399) million cumulative increase (decrease) to the embedded derivatives at December 31, 2017. (4) The fair value of the GMWB and GMAB embedded derivatives included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position at December 31, 2016. (5) The Company’s adjustment for nonperformance risk resulted in a $(498) million cumulative increase (decrease) to the embedded derivatives at December 31, 2016. 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 Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Common Stocks Total (in millions) Balance, January 1, 2017 $ 1,311 $ 268 $ — $ 68 $ 1 $ 1,648 Total gains (losses) included in: Net income — — — — 1 1 (1) Other comprehensive income (loss) (8 ) 1 — (4 ) — (11 ) Purchases 138 132 65 64 — 399 Sales — — — — (1 ) (1 ) Settlements (302 ) (43 ) — (29 ) — (374 ) Transfers into Level 3 — 20 — 27 8 55 Transfers out of Level 3 — (223 ) (65 ) (119 ) (9 ) (416 ) Balance, December 31, 2017 $ 1,139 $ 155 $ — $ 7 $ — $ 1,301 Changes in unrealized gains (losses) relating to assets held at December 31, 2017 $ — $ — $ — $ (1 ) $ — $ (1 ) (1) Policyholder Account Balances, Other Liabilities IUL GMWB Total (in millions) Balance, January 1, 2017 $ 464 $ 614 $ 1,078 $ 13 Total (gains) losses included in: Net income 87 (2) (977 ) (3) (890 ) 2 (4) Issues 92 326 418 13 Settlements (42 ) (12 ) (54 ) — Balance, December 31, 2017 $ 601 $ (49 ) $ 552 $ 28 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2017 $ 87 (2) $ (946 ) (3) $ (859 ) $ — Available-for-Sale Securities Other Derivative Contracts Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Common Stocks Total (in millions) Balance, January 1, 2016 $ 1,425 $ 218 $ 3 $ 162 $ — $ 1,808 $ — Cumulative effect of change in accounting policies — — — 21 — 21 — Total gains (losses) included in: Net income (1 ) 1 — (1 ) — (1 ) (1) (2 ) (3) Other comprehensive income (loss) — (1 ) — (4 ) — (5 ) — Purchases 54 209 42 58 — 363 2 Settlements (168 ) (67 ) (3 ) (2 ) — (240 ) — Transfers into Level 3 1 — — 12 1 14 — Transfers out of Level 3 — (92 ) (42 ) (178 ) — (312 ) — Balance, December 31, 2016 $ 1,311 $ 268 $ — $ 68 $ 1 $ 1,648 $ — Changes in unrealized gains (losses) relating to assets held at December 31, 2016 $ 1 $ 1 $ — $ (1 ) $ — $ 1 (1) $ (2 ) (3) Policyholder Account Balances, IUL GMWB Total Other Liabilities (in millions) Balance, January 1, 2016 $ 364 $ 851 $ 1,215 $ — Total (gains) losses included in: Net income 13 (2) (511 ) (3) (498 ) — Issues 115 295 410 13 Settlements (28 ) (21 ) (49 ) — Balance, December 31, 2016 $ 464 $ 614 $ 1,078 $ 13 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2016 $ 13 (2) $ (448 ) (3) $ (435 ) $ — Available-for-Sale Securities Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Common Stocks Total Trading Securities (in millions) Balance, January 1, 2015 $ 1,518 $ 206 $ 91 $ 169 $ 2 $ 1,986 $ 1 Total gains (losses) included in: Net income (2 ) — — 1 — (1 ) (1) (1 ) (1) Other comprehensive income (loss) (21 ) (2 ) — (2 ) — (25 ) — Purchases 189 334 41 72 — 636 — Settlements (248 ) (55 ) (7 ) (22 ) — (332 ) — Transfers into Level 3 — — 6 14 — 20 — Transfers out of Level 3 (11 ) (265 ) (128 ) (70 ) (2 ) (476 ) — Balance, December 31, 2015 $ 1,425 $ 218 $ 3 $ 162 $ — $ 1,808 $ — Changes in unrealized gains (losses) relating to assets held at December 31, 2015 $ (2 ) $ — $ — $ 1 $ — $ (1 ) (1) $ — Policyholder Account Balances, IUL GMWB Total (in millions) Balance, January 1, 2015 $ 242 $ 479 $ 721 Total (gains) losses included in: Net income 27 (2) 105 (3) 132 Issues 114 271 385 Settlements (19 ) (4 ) (23 ) Balance, December 31, 2015 $ 364 $ 851 $ 1,215 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2015 $ 27 (2) $ 127 (3) $ 154 (1) Included in net investment income in the Consolidated Statements of Operations. (2) Included in interest credited to fixed accounts in the Consolidated Statements of Operations. (3) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. (4) Included in general and administrative expense in the Consolidated Statements of Operations. The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $(71) million , $98 million and $74 million , net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the years ended December 31, 2017 , 2016 and 2015 , respectively. Securities transferred from Level 3 primarily represent securities with fair values that are now obtained from a third party pricing service with observable inputs. Securities transferred to Level 3 represent securities with fair values that are now based on a single non-binding broker quote. The Company recognizes transfers between levels of the fair value hierarchy as of the beginning of the quarter in which each transfer occurred. For assets and liabilities held at the end of the reporting periods that are measured at fair value on a recurring basis, there were no transfers between Level 1 and Level 2. The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities: December 31, 2017 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 1,138 Discounted cash flow Yield/spread to U.S. Treasuries 0.7 % – 2.3% 1.1 % Asset backed securities $ 7 Discounted cash flow Annual short-term default rate 3.8% Annual long-term default rate 2.5% – 3.0% 2.7 % Discount rate 10.5% Constant prepayment rate 5.0 % – 10.0% 9.9 % Loss recovery 36.4 % – 63.6% 63.2 % IUL embedded derivatives $ 601 Discounted cash flow Nonperformance risk (1) 71 bps GMWB and GMAB embedded derivatives $ (49 ) Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0 % – 42.0% Surrender rate 0.1 % – 74.7% Market volatility (3) 3.7 % – 16.1% Nonperformance risk (1) 71 bps Contingent consideration liability $ 28 Discounted cash flow Discount rate 9.0% December 31, 2016 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 1,308 Discounted cash flow Yield/spread to U.S. Treasuries 0.9 % – 2.5% 1.3% Asset backed securities $ 14 Discounted cash flow Annual short-term default rate 4.8% Annual long-term default rate 2.5% Discount rate 13.5% Constant prepayment rate 5.0 % – 10.0% 9.9% Loss recovery 36.4 % – 63.6% 62.8% IUL embedded derivatives $ 464 Discounted cash flow Nonperformance risk (1) 82 bps GMWB and GMAB embedded derivatives $ 614 Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0 % – 75.6% Surrender rate 0.1 % – 66.4% Market volatility (3) 5.3 % – 21.2% Nonperformance risk (1) 82 bps Contingent consideration liabilities $ 13 Discounted cash flow Discount rate 9.0% (1) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. (2) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. (3) Market volatility is implied volatility of fund of funds and managed volatility funds. Level 3 measurements not included in the table above are obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company. Sensitivity of Fair Value Measurements to Changes in Unobservable Inputs Significant increases (decreases) in the yield/spread to U.S. Treasuries used in the fair value measurement of Level 3 corporate debt securities in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the annual default rate and discount rate used in the fair value measurement of Level 3 asset backed securities in isolation, generally, 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 lower (higher) fair value measurement. Significant increases (decreases) in nonperformance risk used in the fair value measurement of the IUL embedded derivatives in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in utilization and volatility used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly higher (lower) liability value. Significant increases (decreases) in nonperformance risk and surrender rate used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly lower (higher) liability value. Utilization of guaranteed withdrawals and surrender rates vary with the type of rider, the duration of the policy, the age of the contractholder, the distribution channel and whether the value of the guaranteed benefit exceeds the contract accumulation value. Significant increases (decreases) in the discount rate used in the fair value measurement of the contingent consideration liability in isolation would result in a significantly lower (higher) fair value measurement. Determination of Fair Value The Company uses valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The Company’s market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company’s income approach uses valuation techniques to convert future projected cash flows to a single discounted present value amount. When applying either approach, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy. Assets Cash Equivalents Cash equivalents include time deposits and other highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less. Actively traded money market funds are measured at their NAV and classified as Level 1. 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, state and municipal obligations and foreign government securities. The fair value of these Level 2 securities is based on a market approach with prices obtained from third party pricing services. Observable inputs used to value these securities can include, but are not limited to, reported trades, benchmark yields, issuer spreads and non-binding broker quotes. Level 3 securities primarily include certain corporate bonds, non-agency residential mortgage backed securities and asset backed securities. The fair value of corporate bonds, non-agency residential mortgage backed securities and certain asset backed securities classified as Level 3 is typically based on a single non-binding broker quote. The underlying inputs used for some of the non-binding broker quotes are not readily available to the Company. The Company’s privately placed corporate bonds are typically based on a single non-binding broker quote. The fair value of certain asset backed securities is determined using a discounted cash flow model. Inputs used to determine the expected cash flows include assumptions about discount rates and default, prepayment and recovery rates of the underlying assets. Given the significance of the unobservable inputs to this fair value measurement, the fair value of the investment in certain asset backed securities is classified as Level 3. In addition to the general pricing controls, the Company reviews the broker prices to ensure that the broker quotes are reasonable and, when available, compares prices of privately issued securities to public issues from the same issuer to ensure that the implicit illiquidity premium applied to the privately placed investment is reasonable considering investment characteristics, maturity, and average life of the investment. In consideration of the above, management is responsible for the fair values recorded on the financial statements. Prices received from third party pricing services are subjected to exception reporting that identifies investments with significant daily price movements as well as no movements. The Company reviews the exception reporting and resolves the exceptions through reaffirmation of the price or recording an appropriate fair value estimate. The Company also performs subsequent transaction testing. The Company performs annual due diligence of third party pricing services. The Company’s due diligence procedures include assessing the vendor’s valuation qualifications, control environment, analysis of asset-class specific valuation methodologies, and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. The Company also considers the results of its exception reporting controls and any resulting price challenges that arise. Separate Account Assets The fair value of assets held by separate accounts is determined by the NAV of the funds in which those separate accounts are invested. The NAV is used as a practical expedient for fair value and represents the exit price for the separate account. Separate account assets are excluded from classification in the fair value hierarchy. Investments Segregated for Regulatory Purposes Investments segregated for regulatory purposes includes U.S. Treasuries that are classified as Level 1. 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 variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active over-the-counter (“OTC”) markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial at December 31, 2017 and 2016 . See Note 15 and Note 16 for further information on the credit risk of derivative instruments and related collateral. Liabilities Policyholder Account Balances, Future Policy Benefits and Claims The Company values the embedded derivatives attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculate fair value by discounting expected cash flows from benefits plus margins for profit, risk and expenses less embedded derivative fees. The projected cash flows used by these models include observable capital market assumptions and incorporate significant unobservable inputs related to contractholder behavior assumptions, implied volatility, and margins for risk, profit and expenses that the Company believes an exit market participant would expect. The fair value also reflects a current estimate of the Company’s nonperformance risk specific to these embedded derivatives. Given the significant unobservable inputs to this valuation, these measurements are classified as Level 3. The embedded derivatives attributable to these provisions are recorded in policyholder account balances, future policy benefits and claims. The Company uses various Black-Scholes calculations to determine the fair value of the embedded derivatives associated with the provisions of its indexed annuity and IUL products. Significant inputs to the EIA calculation include observable interest rates, volatilities and equity index levels and, therefore, are classified as Level 2. The fair value of fixed index annuity and IUL embedded derivatives includes significant observable interest rates, volatilities and equity index levels and the significant unobservable estimate of the Company’s nonperformance risk. Given the significance of the nonperformance risk assumption to the fair value, the fixed index annuity and IUL embedded derivatives are classified as Level 3. The embedded derivatives attributable to these provisions are recorded in policyholder account balances, future policy benefits and claims. The Company’s Corporate Actuarial Department calculates the fair value of the embedded derivatives on a monthly basis. During this process, control checks are performed to validate the completeness of the data. Actuarial management approves various components of the valuation along with the final results. The change in the fair value of the embedded derivatives is reviewed monthly with senior management. The Level 3 inputs into the valuation are consistent with the pricing assumptions and updated as experience develops. Significant unobservable inputs that reflect policyholder behavior are reviewed quarterly along with other valuation assumptions. 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 variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active OTC markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial at December 31, 2017 and 2016 . See Note 15 and Note 16 for further information on the credit risk of derivative instruments and related collateral. Securities sold but not yet purchased include highly liquid investments which are short-term in nature. Securities sold but not yet purchased are measured using amortized cost, which is a reasonable estimate of fair value because of the short time between the purchase of the instrument and its expected realization and are classified as Level 2. Contingent consideration liabilities consist of earn-outs and/or deferred payments related to the Company’s acquisitions. Contingent consideration liabilities are recorded at fair value using a discounted cash flow model under multiple scenarios and an unobservable input (discount rate). Given the use of a significant unobservable input, the fair value of contingent consideration liabilities is classified as Level 3 within the fair value hierarchy. Fair Value on a Nonrecurring Basis The Company assesses its investment in affordable housing partnerships for other-than-temporary impairment. The investments that are determined to be other-than-temporarily impaired are written down to their fair value. The Company uses a discounted cash flow model to measure the fair value of these investments. Inputs to the discounted cash flow model are estimates of future net operating losses and tax credits available to the Company and discount rates based on market condition and the financial strength of the syndicator (general partner). During the year ended December 31, 2017, the Company recognized $64 million of impairments on its investment in affordable housing partnerships primarily due to the enactment of the Tax Act. The balance of affordable housing partnerships measured at fair value on a nonrecurring basis was $166 million as of December 31, 2017 and is classified as Level 3 in the fair value hierarchy. Asset and Liabilities Not Reported at Fair Value The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value: December 31, 2017 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,756 $ — $ — $ 2,752 $ 2,752 Policy and certificate loans 845 — — 801 801 Receivables 1,537 103 946 487 1,536 Restricted and segregated cash 2,524 2,524 — — 2,524 Other investments and assets 520 — 472 49 521 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 10,246 $ — $ — $ 10,755 $ 10,755 Investment certificate reserves 6,390 — — 6,374 6,374 Brokerage customer deposits 3,915 3,915 — — 3,915 Separate account liabilities at NAV 5,177 5,177 (1) Debt and other liabilities 3,290 118 3,180 119 3,417 December 31, 2016 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,986 $ — $ — $ 2,972 $ 2,972 Policy and certificate loans 831 — 1 807 808 Receivables (2) 1,407 127 870 416 1,413 Restricted and segregated cash 2,905 2,905 — — 2,905 Other investments and assets 508 — 449 61 510 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 10,906 $ — $ — $ 11,417 $ 11,417 Investment certificate reserves 5,927 — — 5,914 5,914 Brokerage customer deposits 4,112 4,112 — — 4,112 Separate account liabilities at NAV 4,253 4,253 (1) Debt and other liabilities 3,371 146 3,176 169 3,491 (1) Amounts are comprised of certain financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. See Note 3 for further information. (2) In the third quarter of 2017, the Company corrected the classification of the fair value of advisor loans, net from Level 2 to Level 3 as the valuation includes a significant unobservable input. The fair value levels at December 31, 2016 have been revised to reflect this change. The fair value of advisor loans, net was $400 million at December 31, 2016 . Mortgage Loans, Net The fair value of commercial mortgage loans, except those with significant credit deterioration, is determined by discounting contractual cash flows using discount rates that reflect current pricing for loans with similar remaining maturities, liquidity and characteristics including LTV ratio, occupancy rate, refinance risk, debt service coverage, location, and property condition. For commercial mortgage loans with significant credit deterioration, fair value is determined using the same adjustments as above with an additional adjustment for the Company’s estimate of the amount recoverable on the loan. Given the significant unobservable inputs to the valuation of commercial mortgage loans, these measurements are classified as Level 3. The fair value of 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. The fair value of advisor loans is determined by discounting contractual cash flows, net of estimated credit losses, using a current market interest rate. Advisor loans are classified as Level 3. 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. 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 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation A VIE is an entity that either has equity investors that lack certain essential characteristics of a controlling financial interest (including substantive voting rights, the obligation to absorb the entity’s losses, or the rights to receive the entity’s returns) or has equity investors that do not provide sufficient financial resources for the entity to support its activities. Voting interest entities (“VOEs”) are those entities that do not qualify as a VIE. The Company consolidates VOEs in which it holds a greater than 50% voting interest. The Company generally accounts for entities using the equity method when it holds a greater than 20% but less than 50% voting interest or when the Company exercises significant influence over the entity. All other investments that are not reported at fair value as trading or Available-for-Sale securities are accounted for under the cost method when the Company owns less than a 20% voting interest and does not exercise significant influence. A VIE is consolidated by the reporting entity that determines it has both: • the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and • the obligation to absorb potentially significant losses or the right to receive potentially significant benefits to the VIE. All VIEs are assessed for consolidation under this framework. When evaluating entities for consolidation, the Company considers its contractual rights in determining whether it has the power to direct the activities of the VIE that most significantly impact the VIEs economic performance. In determining whether the Company has this power, it considers whether it is acting in a role that enables it to direct the activities that most significantly impact the economic performance of an entity or if it is acting in an agent role. In determining whether the Company has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Company considers an analysis of its rights to receive benefits such as investment returns and its obligation to absorb losses associated with any investment in the VIE in conjunction with other qualitative factors. Management and incentive fees that are at market and commensurate with the level of services provided, and where the Company does not hold other interests in the VIE that would absorb more than an insignificant amount of the VIE’s expected losses or receive more than an insignificant amount of the VIE’s expected residual returns, are not considered a variable interest and are excluded from the analysis. The consolidation guidance has a scope exception for reporting entities with interests in registered money market funds which do not have an explicit support agreement. |
Foreign Currency Translation | Foreign Currency Translation Net assets of foreign subsidiaries, whose functional currency is other than the U.S. dollar, are translated into U.S. dollars based upon exchange rates prevailing at the end of each period. Revenues and expenses are translated at daily exchange rates during the period. The resulting translation adjustment, along with any related hedge and tax effects, are included in accumulated other comprehensive income (“AOCI”). The determination of the functional currency is based on the primary economic and other management indicators. Gains and losses from foreign currency transactions are included in the consolidated results of operations. |
Amounts Based on Estimates and Assumptions | Amounts Based on Estimates and Assumptions Accounting estimates are an integral part of the Consolidated Financial Statements. In part, they are based upon assumptions concerning future events. Among the more significant are those that relate to investment securities valuation and recognition of other-than-temporary impairments, DAC and the corresponding recognition of DAC amortization, valuation of derivative instruments and hedging activities, litigation and claims reserves and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents include time deposits and other highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less. |
Investments | Investments Available-for-Sale Securities Available-for-Sale securities are carried at fair value with unrealized gains (losses) recorded in AOCI, net of impacts to DAC, deferred sales inducement costs (“DSIC”), unearned revenue, benefit reserves, reinsurance recoverables and income taxes. Gains and losses are recognized on a trade date basis in the Consolidated Statements of Operations upon disposition of the securities. When the fair value of an investment is less than its amortized cost, the Company assesses whether or not: (i) it has the intent to sell the security (made a decision to sell) or (ii) it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If either of these conditions exist, an other-than-temporary impairment is considered to have occurred and the Company recognizes an other-than-temporary impairment for the difference between the investment’s amortized cost and its fair value through earnings. For securities that do not meet the above criteria and the Company does not expect to recover a security’s amortized cost, the security is also considered other-than-temporarily impaired. For these securities, the Company separates the total impairment into the credit loss component and the amount of the loss related to other factors. The amount of the total other-than-temporary impairment related to credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to other factors is recognized in OCI, net of impacts to DAC, DSIC, unearned revenue, benefit reserves, reinsurance recoverables and income taxes. For Available-for-Sale securities that have recognized an other-than-temporary impairment through earnings, the difference between the amortized cost and the cash flows expected to be collected is accreted as interest income if through subsequent evaluation there is a sustained increase in the cash flow expected. Subsequent increases and decreases in the fair value of Available-for-Sale securities are included in OCI. The Company provides a supplemental disclosure on the face of its Consolidated Statements of Operations that presents: (i) total other-than-temporary impairment losses recognized during the period and (ii) the portion of other-than-temporary impairment losses recognized in OCI. The sum of these amounts represents the credit-related portion of other-than-temporary impairments that were recognized in earnings during the period. The portion of other-than-temporary losses recognized in OCI includes: (i) the portion of other-than-temporary impairment losses related to factors other than credit recognized during the period and (ii) reclassifications of other-than-temporary impairment losses previously determined to be related to factors other than credit that are determined to be credit-related in the current period. The amount presented on the Consolidated Statements of Operations as the portion of other-than-temporary losses recognized in OCI excludes subsequent increases and decreases in the fair value of these securities. For all securities that are considered temporarily impaired, the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. The Company believes that it will collect all principal and interest due on all investments that have amortized cost in excess of fair value that are considered only temporarily impaired. Factors the Company considers in determining whether declines in the fair value of fixed maturity securities are other-than-temporary include: (i) the extent to which the market value is below amortized cost; (ii) the duration of time in which there has been a significant decline in value; (iii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iv) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors. In order to determine the amount of the credit loss component for corporate debt securities considered other-than-temporarily impaired, a best estimate of the present value of cash flows expected to be collected discounted at the security’s effective interest rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and the Company’s position in the debtor’s overall capital structure. For structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities, asset backed securities and other structured investments), the Company also considers factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections in assessing potential other-than-temporary impairments of these investments. Based upon these factors, securities that have indicators of potential other-than-temporary impairment are subject to detailed review by management. Securities for which declines are considered temporary continue to be monitored by management until management determines there is no current risk of an other-than-temporary impairment. Other Investments Other investments primarily reflect the Company’s interests in affordable housing partnerships, trading securities, seed money investments and syndicated loans. Affordable housing partnerships and seed money investments are accounted for under the equity method. Trading securities primarily include common stocks and trading bonds. Trading securities are carried at fair value with unrealized and realized gains (losses) recorded within net investment income. |
Financing Receivables | Financing Receivables Commercial Mortgage Loans, Syndicated Loans, and Consumer Loans Commercial mortgage loans, syndicated loans and consumer loans are reflected within investments at amortized cost less the allowance for loan losses. Syndicated loans represent the Company’s investment in below investment grade loan syndications. Consumer loans primarily consisted of residential mortgage loans at December 31, 2016. Interest income is accrued on the unpaid principal balances of the loans as earned. Other Loans Other loans consist of policy and certificate loans, advisor loans and brokerage margin loans. When originated, policy and certificate loan balances do not exceed the cash surrender value of the underlying products. As there is minimal risk of loss related to policy and certificate loans, the Company does not record an allowance for loan losses. Policy and certificate loans are reflected within investments at the unpaid principal balance, plus accrued interest. The Company offers loans to financial advisors primarily for recruiting, transitional cost assistance and retention purposes. These loans are generally repaid over a five to nine-year period. Advisor loans are recorded within receivables at principal less an allowance for loan losses. Interest income is recognized as earned and reflected in other revenues. R ecoverability of these loans is assessed through analysis of financial advisor retention, loan collection and other criteria. In the event that the financial advisor is no longer affiliated with the Company, any unpaid balance of such loan becomes immediately due. The Company’s broker dealer subsidiaries enter into lending arrangements with clients through the normal course of business, which are primarily based on customer margin levels. Margin loans are reported at the unpaid principal balance within receivables. The Company monitors the market value of collateral supporting the margin loans and requests additional collateral when necessary in order to mitigate the risk of loss. As there is minimal risk of loss related to margin loans, the allowance for loan losses is immaterial. Nonaccrual Loans Generally, loans are evaluated for or placed on nonaccrual status when either the collection of interest or principal has become 90 days past due or is otherwise considered doubtful of collection. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Interest payments received on loans on nonaccrual status are generally applied to principal unless the remaining principal balance has been determined to be fully collectible. Revolving unsecured consumer lines are charged off at 180 days past due. Closed-end consumer loans, other than loans secured by one to four family properties, are charged off at 120 days past due and are generally not placed on nonaccrual status. Loans secured by one to four family properties are impaired when management determines the assets are uncollectible and commences foreclosure proceedings on the property, at which time the loan is written down to fair value less selling costs and recorded as real estate owned in other assets. Commercial mortgage loans are evaluated for impairment when the loan is considered for nonaccrual status, restructured or foreclosure proceedings are initiated on the property. If it is determined that the fair value is less than the current loan balance, it is written down to fair value less selling costs. Foreclosed property is recorded as real estate owned in other assets. Syndicated loans are placed on nonaccrual status when management determines it will not collect all contractual principal and interest on the loan. Allowance for Loan Losses Management determines the adequacy of the allowance for loan losses based on the overall loan portfolio composition, recent and historical loss experience, and other pertinent factors, including when applicable, internal risk ratings, loan-to-value (“LTV”) ratios, FICO scores of the borrower, debt service coverage and occupancy rates, along with economic and market conditions. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change. The Company determines the amount of the allowance based on management’s assessment of relative risk characteristics of the loan portfolio. The allowance is recorded for homogeneous loan categories on a pool basis, based on an analysis of product mix and risk characteristics of the portfolio, including geographic concentration, bankruptcy experiences, and historical losses, adjusted for current trends and market conditions. While the Company attributes portions of the allowance to specific loan pools as part of the allowance estimation process, the entire allowance is available to absorb losses inherent in the total loan portfolio. The allowance is increased through provisions charged to net investment income and reduced/increased by net charge-offs/recoveries. In determining the allowance for loan losses for advisor loans, the Company considers its historical collection experience as well as other factors including amounts due at termination, the reasons for the terminated relationship, length of time since termination, and the former financial advisor’s overall financial position. Concerns regarding the recoverability of these loans primarily arise in the event that the financial advisor is no longer affiliated with the Company. When the review of these factors indicates that further collection activity is highly unlikely, the outstanding balance of the loan is written-off and the related allowance is reduced. The provision for loan losses on advisor loans is recorded in distribution expenses. Impaired Loans The Company considers a loan to be impaired when, based on current information and events, it is probable the Company will not be able to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. Impaired loans may also include loans that have been modified in troubled debt restructurings as a concession to borrowers experiencing financial difficulties. Management evaluates for impairment all restructured loans and loans with higher impairment risk factors. Factors used by the Company to determine whether all amounts due on commercial mortgage loans will be collected, include but are not limited to, the financial condition of the borrower, performance of the underlying properties, collateral and/or guarantees on the loan, and the borrower’s estimated future ability to pay based on property type and geographic location. The evaluation of impairment on consumer loans is primarily driven by delinquency status of individual loans. The impairment recognized is measured as the excess of the loan’s recorded investment over: (i) the present value of its expected principal and interest payments discounted at the loan’s effective interest rate, (ii) the fair value of collateral or (iii) the loan’s observable market price. Restructured Loans A loan is classified as a restructured loan when the Company makes certain concessionary modifications to contractual terms for borrowers experiencing financial difficulties. When the interest rate, minimum payments, and/or due dates have been modified in an attempt to make the loan more affordable to a borrower experiencing financial difficulties, the modification is considered a troubled debt restructuring. Generally, performance prior to the restructuring or significant events that coincide with the restructuring are considered in assessing whether the borrower can meet the new terms which may result in the loan being returned to accrual status at the time of the restructuring or after a performance period. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status. |
Separate Account Assets and Liabilities | Separate Account Assets and Liabilities Separate account assets and liabilities are primarily funds held for the benefit of variable annuity contractholders and variable life insurance policyholders, who have a contractual right to receive the benefits of their contract or policy and bear the related investment risk. Gains and losses on separate account assets accrue directly to the contractholder or policyholder and are not reported in the Company’s Consolidated Statements of Operations. Separate account assets are recorded at fair value. Changes in the fair value of separate account assets are offset by changes in the related separate account liabilities. Included in separate account assets and liabilities is the fair value of the pooled pension funds that are offered by Threadneedle. |
Restricted and Segregated Cash and Investments | Restricted and Segregated Cash and Investments Amounts segregated under federal and other regulations are held in special reserve bank accounts for the exclusive benefit of the Company’s brokerage customers. |
Land, Buildings, Equipment and Software | Land, Buildings, Equipment and Software Land, buildings, equipment and internally developed or purchased software are carried at cost less accumulated depreciation or amortization and are reflected within other assets. The Company uses the straight-line method of depreciation and amortization over periods ranging from three to 39 years. At December 31, 2017 and 2016 , land, buildings, equipment and software were $626 million and $607 million , respectively, net of accumulated depreciation of $1.9 billion and $1.8 billion , respectively. Depreciation and amortization expense for the years ended December 31, 2017 , 2016 and 2015 was $141 million , $149 million and $150 million , respectively. Capitalized lease assets, net of accumulated depreciation, are included in land, buildings, equipment and software, and capital lease obligations are included in long-term debt. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the amount of an acquired company’s acquisition cost in excess of the fair value of assets acquired and liabilities assumed. The Company evaluates goodwill for impairment annually on the measurement date of July 1 and whenever events and circumstances indicate that an impairment may have occurred, such as a significant adverse change in the business climate or a decision to sell or dispose of a reporting unit. Impairment is the amount carrying value exceeds fair value and is evaluated at the reporting unit level. The Company assesses various qualitative factors to determine whether impairment is likely to have occurred. If impairment were to occur, the Company would use the discounted cash flow method, a variation of the income approach. Intangible assets are amortized over their estimated useful lives unless they are deemed to have indefinite useful lives. The Company evaluates the definite lived intangible assets remaining useful lives annually and tests for impairment whenever events and circumstances indicate that an impairment may have occurred, such as a significant adverse change in the business climate. For definite lived intangible assets, impairment to fair value is recognized if the carrying amount is not recoverable. Indefinite lived intangibles are also tested for impairment annually or whenever circumstances indicate an impairment may have occurred. Goodwill and other intangible assets are reflected in other assets. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Freestanding derivative instruments are recorded at fair value and are reflected in other assets or other liabilities. The Company’s policy is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. The Company primarily uses derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. The Company occasionally designates derivatives as (i) hedges of changes in the fair value of assets, liabilities, or firm commitments (“fair value hedges”), (ii) hedges of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedges”), or (iii) hedges of foreign currency exposures of net investments in foreign operations (“net investment hedges in foreign operations”). Derivative instruments that are entered into for hedging purposes are designated as such at the time the Company enters into the contract. For all derivative instruments that are designated for hedging activities, the Company documents all of the hedging relationships between the hedge instruments and the hedged items at the inception of the relationships. Management also documents its risk management objectives and strategies for entering into the hedge transactions. The Company assesses, at inception and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of hedged items. If it is determined that a derivative is no longer highly effective as a hedge, the Company will discontinue the application of hedge accounting. For derivative instruments that do not qualify for hedge accounting or are not designated as accounting hedges, changes in fair value are recognized in current period earnings. Changes in fair value of derivatives are presented in the Consolidated Statements of Operations based on the nature and use of the instrument. Changes in fair value of derivatives used as economic hedges are presented in the Consolidated Statements of Operations with the corresponding change in the hedged asset or liability. For derivative instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as changes in the fair value of the hedged assets, liabilities or firm commitments, are recognized on a net basis in current period earnings. The carrying value of the hedged item is adjusted for the change in fair value from the designated hedged risk. If a fair value hedge designation is removed or the hedge is terminated prior to maturity, previous adjustments to the carrying value of the hedged item are recognized into earnings over the remaining life of the hedged item. For derivative instruments that qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is reported in AOCI and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Operations with the hedged instrument or transaction impact. Any ineffective portion of the gain or loss is reported in current period earnings as a component of net investment income. If a hedge designation is removed or a hedge is terminated prior to maturity, the amount previously recorded in AOCI is reclassified to earnings over the period that the hedged item impacts earnings. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in AOCI are recognized in earnings immediately. For derivative instruments that qualify as net investment hedges in foreign operations, the effective portion of the change in fair value of the derivatives is recorded in AOCI as part of the foreign currency translation adjustment. Any ineffective portion of the net investment hedges in foreign operations is recognized in net investment income during the period of change. The equity component of indexed annuities, indexed universal life (“IUL”) and stock market certificate obligations are considered embedded derivatives. Additionally, certain annuities contain guaranteed minimum accumulation benefit (“GMAB”) and guaranteed minimum withdrawal benefit (“GMWB”) provisions. The GMAB and the non-life contingent benefits associated with GMWB provisions are also considered embedded derivatives. See Note 14 for information regarding the Company’s fair value measurement of derivative instruments and Note 16 for the impact of derivatives on the Consolidated Statements of Operations. |
Deferred Acquisition Costs | Deferred Acquisition Costs The Company incurs costs in connection with acquiring new and renewal insurance and annuity businesses. The portion of these costs which are incremental and direct to the acquisition of a new or renewal insurance policy or annuity contract are deferred. Significant costs capitalized include sales based compensation related to the acquisition of new and renewal insurance policies and annuity contracts, medical inspection costs for successful sales, and a portion of employee compensation and benefit costs based upon the amount of time spent on successful sales. Sales based compensation paid to advisors and employees and third-party distributors is capitalized. Employee compensation and benefits costs which are capitalized relate primarily to sales efforts, underwriting and processing. All other costs which are not incremental direct costs of acquiring an insurance policy or annuity contract are expensed as incurred. The DAC associated with insurance policies or annuity contracts that are significantly modified or internally replaced with another contract are accounted for as contract terminations. These transactions are anticipated in establishing amortization periods and other valuation assumptions. The Company monitors other DAC amortization assumptions, such as persistency, mortality, morbidity, interest margin, variable annuity benefit utilization and maintenance expense levels each quarter and, when assessed independently, each could impact the Company’s DAC balances. The analysis of DAC balances and the corresponding amortization is a dynamic process that considers all relevant factors and assumptions described previously. Unless the Company’s management identifies a significant deviation over the course of the quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year. Non-Traditional Long-Duration Products For non-traditional long-duration products (including variable and fixed deferred annuity contracts, universal life (“UL”) and variable universal life (“VUL”) insurance products), DAC are amortized based on projections of estimated gross profits (“EGPs”) over amortization periods equal to the approximate life of the business. EGPs vary based on persistency rates (assumptions at which contractholders and policyholders are expected to surrender, make withdrawals from and make deposits to their contracts), mortality levels, client asset value growth rates (based on equity and bond market performance), variable annuity benefit utilization and interest margins (the spread between earned rates on invested assets and rates credited to contractholder and policyholder accounts) and are management’s best estimates. Management regularly monitors financial market conditions and actual contractholder and policyholder behavior experience and compares them to its assumptions. These assumptions are updated whenever it appears that earlier estimates should be revised. When assumptions are changed, the percentage of EGPs used to amortize DAC might also change. A change in the required amortization percentage is applied retrospectively; an increase in amortization percentage will result in a decrease in the DAC balance and an increase in DAC amortization expense, while a decrease in amortization percentage will result in an increase in the DAC balance and a decrease in DAC amortization expense. The impact on results of operations of changing assumptions can be either positive or negative in any particular period and is reflected in the period in which such changes are made. At each balance sheet date, the DAC balance is adjusted for the effect that would result from the realization of unrealized gains or losses impacting EGPs, with the related change recognized through AOCI. The client asset value growth rates are the rates at which variable annuity and VUL insurance contract values invested in separate accounts are assumed to appreciate in the future. The rates used vary by equity and fixed income investments. Management reviews and, where appropriate, adjusts its assumptions with respect to client asset value growth rates on a regular basis. The Company typically uses a five-year mean reversion process as a guideline in setting near-term equity fund growth rates based on a long-term view of financial market performance as well as recent actual performance. The suggested near-term equity fund growth rate is reviewed quarterly to ensure consistency with management’s assessment of anticipated equity market performance. DAC amortization expense recorded in a period when client asset value growth rates exceed management’s near-term estimate will typically be less than in a period when growth rates fall short of management’s near-term estimate. Traditional Long-Duration Products For traditional long-duration products (including traditional life and disability income (“DI”) insurance products), DAC are generally amortized as a percentage of premiums over amortization periods equal to the premium paying period. The assumptions made in calculating the DAC balance and DAC amortization expense are consistent with those used in determining the liabilities. For traditional life and DI insurance products, the assumptions provide for adverse deviations in experience and are revised only if management concludes experience will be so adverse that DAC are not recoverable. If management concludes that DAC are not recoverable, DAC are reduced to the amount that is recoverable based on best estimate assumptions and there is a corresponding expense recorded in the Consolidated Statements of Operations. |
Deferred Sales Inducement Costs | Deferred Sales Inducement Costs Sales inducement costs consist of bonus interest credits and premium credits added to certain annuity contract and insurance policy values. These benefits are capitalized to the extent they are incremental to amounts that would be credited on similar contracts without the applicable feature. The amounts capitalized are amortized using the same methodology and assumptions used to amortize DAC. DSIC is recorded in other assets, and amortization of DSIC is recorded in benefits, claims, losses and settlement expenses. |
Reinsurance | Reinsurance The Company cedes insurance risk to other insurers under reinsurance agreements. The Company evaluates the financial condition of its reinsurers prior to entering into new reinsurance contracts and on a periodic basis during the contract term. Reinsurance premiums paid and benefits received are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Reinsurance premiums for traditional life, LTC, DI and auto and home, net of the change in any prepaid reinsurance asset, are reported as a reduction of premiums. UL and VUL reinsurance premiums are reported as a reduction of other revenues. In addition, for UL and VUL insurance policies, the net cost of reinsurance ceded, which represents the discounted amount of the expected cash flows between the reinsurer and the Company, is classified as an asset or contra asset and amortized over the estimated life of the policies in proportion to the estimated gross profits and is subject to retrospective adjustment in a manner similar to retrospective adjustment of DAC. The assumptions used to project the expected cash flows are consistent with those used for DAC valuation for the same contracts. Changes in the net cost of reinsurance are reflected as a component of other revenues. Reinsurance recoveries are reported as components of benefits, claims, losses and settlement expenses. Insurance liabilities are reported before the effects of reinsurance. Policyholder account balances, future policy benefits and claims recoverable under reinsurance contracts are recorded within receivables. The Company also assumes life insurance and fixed annuity risk from other insurers in limited circumstances. Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Liabilities for assumed business are recorded within policyholder account balances, future policy benefits and claims. See Note 7 for additional information on reinsurance. |
Policyholder Account Balances, Future Policy Benefits and Claims | Policyholder Account Balances, Future Policy Benefits and Claims The Company establishes reserves to cover the risks associated with non-traditional and traditional long-duration products and short-duration products. Reserves for non-traditional long-duration products include the liabilities related to guaranteed benefit provisions added to variable annuity contracts, variable and fixed annuity contracts and UL and VUL policies and the embedded derivatives related to variable annuity contracts, indexed annuities and IUL insurance. Reserves for traditional long-duration products are established to provide adequately for future benefits and expenses for term life, whole life, DI and long term care (“LTC”) insurance products. Reserves for short-duration products are established to provide adequately for incurred losses primarily related to auto and home policies. Changes in future policy benefits and claims are reflected in earnings in the period adjustments are made. Where applicable, benefit amounts expected to be recoverable from reinsurance companies who share in the risk are separately recorded as reinsurance recoverable within receivables. Non-Traditional Long-Duration Products The liabilities for non-traditional long-duration products include fixed account values on variable and fixed annuities and UL and VUL policies, liabilities for guaranteed benefits associated with variable annuities and embedded derivatives for variable annuities, indexed annuities and IUL products. Liabilities for fixed account values on variable and fixed deferred annuities and UL and VUL policies are equal to accumulation values, which are the cumulative gross deposits and credited interest less withdrawals and various charges. A portion of the Company’s UL and VUL policies have product features that result in profits followed by losses from the insurance component of the contract. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the contract. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. The liability for these future losses is determined by estimating the death benefits in excess of account value and recognizing the excess over the estimated life based on expected assessments (e.g. cost of insurance charges, contractual administrative charges, similar fees and investment margin). See Note 11 for information regarding the liability for contracts with secondary guarantees. Liabilities for indexed annuity products and indexed accounts of IUL products are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options. The guaranteed minimum death benefit (“GMDB”) and gain gross-up (“GGU”) liability is determined by estimating the expected value of death benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees). If elected by the contract owner and after a stipulated waiting period from contract issuance, a guaranteed minimum income benefit (“GMIB”) guarantees a minimum lifetime annuity based on a specified rate of contract accumulation value growth and predetermined annuity purchase rates. The GMIB liability is determined each period by estimating the expected value of annuitization benefits in excess of the projected contract accumulation value at the date of annuitization and recognizing the excess over the estimated life based on expected assessments. The liability for the life contingent benefits associated with GMWB provisions is determined by estimating the expected value of benefits that are contingent upon survival after the account value is equal to zero and recognizing the benefits over the estimated life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees). In determining the liabilities for GMDB, GGU, GMIB and the life contingent benefits associated with GMWB, the Company projects these benefits and contract assessments using actuarial models to simulate various equity market scenarios. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency, benefit utilization and investment margins and are consistent with those used for DAC valuation for the same contracts. As with DAC, management reviews and, where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year. See Note 11 for information regarding variable annuity guarantees. The fair value of embedded derivatives related to GMAB and the non-life contingent benefits associated with GMWB provisions, indexed annuities and IUL fluctuate based on equity, interest rate and credit markets and the estimate of the Company’s nonperformance risk, which can cause these embedded derivatives to be either an asset or a liability. See Note 14 for information regarding the fair value measurement of embedded derivatives. Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates. Traditional Long-Duration Products The liabilities for traditional long-duration products include liabilities for unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that will become payable on term life, whole life, DI and LTC policies as claims are incurred in the future. Liabilities for unpaid amounts on reported life insurance claims are equal to the death benefits payable under the policies. Liabilities for unpaid amounts on reported DI and LTC claims include any periodic or other benefit amounts due and accrued, along with estimates of the present value of obligations for continuing benefit payments. These unpaid amounts are calculated using anticipated claim continuance rates based on established industry tables, adjusted as appropriate for the Company’s experience. The discount rates used to calculate present values are based on average interest rates earned on assets supporting the liability for unpaid amounts. Liabilities for estimated benefits payable on claims that have been incurred but not yet reported are based on periodic analysis of the actual time lag between when a claim occurs and when it is reported. Liabilities for estimates of benefits that will become payable on future claims on term life, whole life and DI insurance policies are based on the net level premium and LTC policies are based on a gross premium valuation reflecting management’s current best estimate assumptions. Both include anticipated premium payments, mortality and morbidity rates, policy persistency and interest rates earned on assets supporting the liability. Anticipated mortality and morbidity rates are based on established industry mortality and morbidity tables, with modifications based on the Company’s experience. Anticipated premium payments and persistency rates vary by policy form, issue age, policy duration and certain other pricing factors. For term life, whole life, DI and LTC policies, the Company utilizes best estimate assumptions as of the date the policy is issued with provisions for the risk of adverse deviation, as appropriate. After the liabilities are initially established, management performs premium deficiency tests using best estimate assumptions without provisions for adverse deviation annually in the third quarter of each year unless management identifies a material deviation over the course of quarterly monitoring. If the liabilities determined based on these best estimate assumptions are greater than the net reserves (i.e., GAAP reserves net of any DAC balance), the existing net reserves are adjusted by first reducing the DAC balance by the amount of the deficiency or to zero through a charge to current period earnings. If the deficiency is more than the DAC balance, then the net reserves are increased by the excess through a charge to current period earnings. If a premium deficiency is recognized, the assumptions as of the date of the loss recognition are locked in and used in subsequent periods. The assumptions for LTC insurance products are management's best estimate as of the date of loss recognition and thus no longer provide for adverse deviations in experience. See Note 10 for information regarding the liabilities for traditional long-duration products. Short-Duration Products The liabilities for short-duration products primarily include auto and home reserves comprised of amounts determined from loss reports on individual claims, as well as amounts based on historical loss experience for losses incurred but not yet reported. Such liabilities are based on estimates. The Company’s methods for making such estimates and for establishing the resulting liabilities are continually reviewed, and any adjustments are reflected in earnings in the period such adjustments are made. |
Unearned Revenue Liability | Unearned Revenue Liability The Company’s UL and VUL policies require payment of fees or other policyholder assessments in advance for services to be provided in future periods. These charges are deferred as unearned revenue and amortized using estimated gross profits, similar to DAC. The unearned revenue liability is recorded in other liabilities and the amortization is recorded in other revenues. For clients who pay financial planning fees prior to the advisor’s delivery of the financial plan, the financial planning fees received in advance are deferred as unearned revenue until the plan is delivered to the client. |
Share-Based Compensation | Share-Based Compensation The Company measures and recognizes the cost of share-based awards granted to employees and directors based on the grant-date fair value of the award and recognizes the expense (net of estimated forfeitures) on a straight-line basis over the vesting period. Excess tax benefits or deficiencies are created upon distribution or exercise of awards. In 2016 and prior years, excess tax benefits were recognized in additional paid-in-capital and excess tax deficiencies were recognized either as an offset to accumulated excess tax benefits, if any, or in the income statement. Beginning in 2017, all excess tax benefits and tax deficiencies are recognized as income tax expense or benefit in the income statement. The fair value of each option is estimated on the grant date using a Black-Scholes option-pricing model. The Company recognizes the cost of share-based awards granted to independent contractors and performance share units granted to the Company’s Executive Leadership Team on a fair value basis until fully vested. |
Income Taxes | Income Taxes The Company’s provision for income taxes represents the net amount of income taxes that the Company expects to pay or to receive from various taxing jurisdictions in connection with its operations. The Company provides for income taxes based on amounts that the Company believes it will ultimately owe taking into account the recognition and measurement for uncertain tax positions. Inherent in the provision for income taxes are estimates and judgments regarding the tax treatment of certain items. In connection with the provision for income taxes, the Consolidated Financial Statements reflect certain amounts related to deferred tax assets and liabilities, which result from temporary differences between the assets and liabilities measured for financial statement purposes versus the assets and liabilities measured for tax return purposes. The Company is required to establish a valuation allowance for any portion of its deferred tax assets that management believes will not be realized. Significant judgment is required in determining if a valuation allowance should be established and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business. Consideration is given to, among other things in making this determination: (i) future taxable income exclusive of reversing temporary differences and carryforwards; (ii) future reversals of existing taxable temporary differences; (iii) taxable income in prior carryback years; and (iv) tax planning strategies. Management may need to identify and implement appropriate planning strategies to ensure its ability to realize deferred tax assets and reduce the likelihood of the establishment of a valuation allowance with respect to such assets. See Note 21 for additional information on the Company's valuation allowance. Changes in tax rates and tax law are accounted for in the period of enactment. Deferred tax assets and liabilities are adjusted for the effect of a change in tax laws or rates and the effect is included in income from continuing operations. See Note 21 for further discussion on the enactment of the legislation commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”) and the impact to the Company’s provision for income taxes for the year ended December 31, 2017. |
Revenue Recognition | Revenue Recognition The Company’s management and financial advice fees are generally recognized when earned as the service is provided. A significant portion of the Company’s management fees are calculated as a percentage of the fair value of its managed assets. A large majority of the Company’s managed assets are valued by third party pricing service vendors based upon observable market data. The selection of the Company’s third party pricing service vendors and the reliability of their prices are subject to certain governance procedures, such as exception reporting, subsequent transaction testing, and annual due diligence of the Company’s vendors, which includes assessing the vendor’s valuation qualifications, control environment, analysis of asset-class specific valuation methodologies and understanding of sources of market observable assumptions. The Company may receive performance-based incentive management fees on certain management contracts. Performance fees are paid when specific performance hurdles are met. The Company recognizes performance fees on the date the fee is no longer subject to adjustment. Any performance fees received are not subject to repayment or any other clawback provisions. Certain management and financial advice fees are charged based on an annual fee or a transaction fee. These fees include financial planning, certain custodial and fund administration and brokerage fees. Fees from financial planning services are recognized when the financial plan is delivered. Annual custodial and fund administration fees are recognized evenly as service is provided over the contract period. Transaction based brokerage fees are recognized on the transaction date. Mortality and expense risk fees are generally calculated as a percentage of the fair value of assets held in separate accounts and recognized when assessed. Point-of-sale fees (such as mutual fund front-end sales loads) and asset-based fees (such as 12b-1 distribution and shareholder service fees) are generally based on a contractual percentage of assets and recognized when earned. Amounts received under marketing support arrangements for sales of mutual funds and other companies’ products, such as through the Company’s wrap accounts, as well as surrender charges on UL and VUL insurance and annuities, are recognized when assessed. Interest income is accrued as earned using the effective interest method, which makes an adjustment of the yield for security premiums and discounts on all performing fixed maturity securities classified as Available-for-Sale so that the related security or loan recognizes a constant rate of return on the outstanding balance throughout its term. When actual prepayments differ significantly from originally anticipated prepayments, the retrospective effective yield is recalculated to reflect actual payments to date and updated future payment assumptions and a catch-up adjustment is recorded in the current period. In addition, the new effective yield, which reflects anticipated future payments, is used prospectively. Realized gains and losses on securities, other than trading securities and equity method investments, are recognized using the specific identification method on a trade date basis. Premiums on auto and home insurance are net of reinsurance premiums and recognized ratably over the coverage period. Premiums on traditional life, health insurance and immediate annuities with a life contingent feature are net of reinsurance ceded and are recognized as revenue when due. Variable annuity guaranteed benefit rider charges and cost of insurance charges on UL and VUL insurance (net of reinsurance premiums and cost of reinsurance for universal life insurance products) are recognized as revenue when assessed. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Assets and liabilities measured at fair value | |
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: December 31, 2017 Level 1 Level 2 Level 3 Total (in millions) Assets Cash equivalents $ 147 $ 2,025 $ — $ 2,172 Available-for-Sale securities: Corporate debt securities — 13,936 1,139 15,075 Residential mortgage backed securities — 6,456 155 6,611 Commercial mortgage backed securities — 4,374 — 4,374 Asset backed securities — 1,573 7 1,580 State and municipal obligations — 2,463 — 2,463 U.S. government and agency obligations 503 — — 503 Foreign government bonds and obligations — 314 — 314 Common stocks 1 — — 1 Common stocks measured at net asset value (“NAV”) 6 (1) Total Available-for-Sale securities 504 29,116 1,301 30,927 Trading securities 10 34 — 44 Separate account assets at NAV 87,368 (1) Investments segregated for regulatory purposes 623 — — 623 Other assets: Interest rate derivative contracts — 1,104 — 1,104 Equity derivative contracts 63 2,360 — 2,423 Foreign exchange derivative contracts 2 34 — 36 Total other assets 65 3,498 — 3,563 Total assets at fair value $ 1,349 $ 34,673 $ 1,301 $ 124,697 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 601 601 GMWB and GMAB embedded derivatives — — (49 ) (49 ) (2) Total policyholder account balances, future policy benefits and claims — 5 552 557 (3) Customer deposits — 10 — 10 Other liabilities: Interest rate derivative contracts 1 415 — 416 Equity derivative contracts 7 2,876 — 2,883 Credit derivative contracts — 2 — 2 Foreign exchange derivative contracts 4 23 — 27 Other 9 6 28 43 Total other liabilities 21 3,322 28 3,371 Total liabilities at fair value $ 21 $ 3,337 $ 580 $ 3,938 December 31, 2016 Level 1 Level 2 Level 3 Total (in millions) Assets Cash equivalents $ 30 $ 1,796 $ — $ 1,826 Available-for-Sale securities: Corporate debt securities — 14,925 1,311 16,236 Residential mortgage backed securities — 6,650 268 6,918 Commercial mortgage backed securities — 3,367 — 3,367 Asset backed securities — 1,481 68 1,549 State and municipal obligations — 2,358 — 2,358 U.S. government and agency obligations 8 — — 8 Foreign government bonds and obligations — 261 — 261 Common stocks 8 8 1 17 Common stocks at NAV 5 (1) Total Available-for-Sale securities 16 29,050 1,648 30,719 Trading securities 9 16 — 25 Separate account assets at NAV 80,210 (1) Investments segregated for regulatory purposes 425 — — 425 Other assets: Interest rate derivative contracts — 1,778 — 1,778 Equity derivative contracts 43 1,531 — 1,574 Credit derivative contracts — 1 — 1 Foreign exchange derivative contracts 13 80 — 93 Total other assets 56 3,390 — 3,446 Total assets at fair value $ 536 $ 34,252 $ 1,648 $ 116,651 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 464 464 GMWB and GMAB embedded derivatives — — 614 614 (4) Total policyholder account balances, future policy benefits and claims — 5 1,078 1,083 (5) Customer deposits — 8 — 8 Other liabilities: Interest rate derivative contracts 2 987 — 989 Equity derivative contracts 3 2,132 — 2,135 Foreign exchange derivative contracts 2 45 — 47 Other 3 8 13 24 Total other liabilities 10 3,172 13 3,195 Total liabilities at fair value $ 10 $ 3,185 $ 1,091 $ 4,286 (1) Amounts are comprised of certain financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. (2) The fair value of the GMWB and GMAB embedded derivatives included $443 million of individual contracts in a liability position and $492 million of individual contracts in an asset position at December 31, 2017. (3) The Company’s adjustment for nonperformance risk resulted in a $(399) million cumulative increase (decrease) to the embedded derivatives at December 31, 2017. (4) The fair value of the GMWB and GMAB embedded derivatives included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position at December 31, 2016. (5) The Company’s adjustment for nonperformance risk resulted in a $(498) million cumulative increase (decrease) to the embedded derivatives at December 31, 2016. |
Schedule of debt of the consolidated investment entities and the stated interest rates | The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows: Outstanding Balance Stated Interest Rate December 31, December 31, 2017 2016 2017 2016 (in millions) Long-term debt: Senior notes due 2019 $ 300 $ 300 7.3 % 7.3 % Senior notes due 2020 750 750 5.3 5.3 Senior notes due 2023 750 750 4.0 4.0 Senior notes due 2024 550 550 3.7 3.7 Senior notes due 2026 500 500 2.9 2.9 Capitalized lease obligations 38 49 Other (1) 3 18 Total long-term debt 2,891 2,917 Short-term borrowings: Federal Home Loan Bank (“FHLB”) advances 150 150 1.5 0.8 Repurchase agreements 50 50 1.4 0.9 Total short-term borrowings 200 200 Total $ 3,091 $ 3,117 (1) Amounts include adjustments for fair value hedges on the Company’s long-term debt and unamortized discount and debt issuance costs. See Note 16 for information on the Company’s fair value hedges. |
Schedule of maturities of long-term debt | At December 31, 2017 , future maturities of Ameriprise Financial long-term debt were as follows: (in millions) 2018 $ 13 2019 314 2020 761 2021 — 2022 — Thereafter 1,800 Total future maturities $ 2,888 |
Consolidated investment entities [Member] | |
Assets and liabilities measured at fair value | |
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: December 31, 2017 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Corporate debt securities $ — $ 27 $ — $ 27 Common stocks 18 8 4 30 Other investments 5 — — 5 Syndicated loans — 1,889 180 2,069 Total investments 23 1,924 184 2,131 Receivables — 25 — 25 Total assets at fair value $ 23 $ 1,949 $ 184 $ 2,156 Liabilities Debt (1) $ — $ 2,208 $ — $ 2,208 Other liabilities — 63 — 63 Total liabilities at fair value $ — $ 2,271 $ — $ 2,271 December 31, 2016 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Corporate debt securities $ — $ 19 $ — $ 19 Common stocks 22 6 5 33 Other investments 4 — — 4 Syndicated loans — 1,944 254 2,198 Total investments 26 1,969 259 2,254 Receivables — 11 — 11 Total assets at fair value $ 26 $ 1,980 $ 259 $ 2,265 Liabilities Debt (1) $ — $ 2,319 $ — $ 2,319 Other liabilities — 95 — 95 Total liabilities at fair value $ — $ 2,414 $ — $ 2,414 (1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.2 billion and $2.3 billion as of December 31, 2017 and 2016, respectively. |
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 Balance, January 1, 2017 $ — $ 5 $ 254 Total gains (losses) included in: Net income — (1 ) (1) — Purchases — 3 146 Sales (2 ) (2 ) (28 ) Settlements — — (70 ) Transfers into Level 3 2 7 266 Transfers out of Level 3 — (8 ) (388 ) Balance, December 31, 2017 $ — $ 4 $ 180 Changes in unrealized gains (losses) included in income relating to assets and liabilities held at December 31, 2017 $ — $ (1 ) (1) $ (1 ) (1) Common Stocks Syndicated Loans Other Assets Debt (in millions) Balance, January 1, 2016 $ 3 $ 529 $ 2,065 $ (6,630 ) Cumulative effect of change in accounting policies (2) (2 ) (304 ) (2,065 ) 6,630 Balance, January 1, 2016, as adjusted 1 225 — — Total gains (losses) included in: Net income 2 (1) 7 (1) 1 (3) — Purchases 1 145 — — Sales — (24 ) (1 ) — Settlements — (69 ) — — Transfers into Level 3 3 405 — — Transfers out of Level 3 (2 ) (435 ) — — Balance, December 31, 2016 $ 5 $ 254 $ — $ — Changes in unrealized gains (losses) included in income relating to assets and liabilities held at December 31, 2016 $ 1 (1) $ 3 (1) $ — $ — Common Stocks Syndicated Loans Other Assets Debt (in millions) Balance, January 1, 2015 $ 7 $ 484 $ 1,935 $ (6,030 ) Total gains (losses) included in: Net income (1 ) (1) (24 ) (1) 170 (3) 215 (1) Other comprehensive income (loss) — — (154 ) — Purchases — 303 638 — Sales — (36 ) (524 ) — Issues — — — (1,267 ) Settlements — (161 ) — 452 Transfers into Level 3 7 776 — — Transfers out of Level 3 (10 ) (813 ) — — Balance, December 31, 2015 $ 3 $ 529 $ 2,065 $ (6,630 ) Changes in unrealized gains (losses) included in income relating to assets and liabilities held at December 31, 2015 $ — $ (19 ) (1) $ 20 (3) $ 219 (1) (1) Included in net investment income in the Consolidated Statements of Operations. (2) The cumulative effect of change in accounting policies includes the adoption impact of ASU 2015-02 and ASU 2014-13 – Consolidation: Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity (“ASU 2014-13”). (3) Included in other revenues in the Consolidated Statements of Operations. |
Schedule of fair value and unpaid principal balance of assets and liabilities carried at fair value under the fair value option | The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected: December 31, 2017 2016 (in millions) Syndicated loans Unpaid principal balance $ 2,140 $ 2,281 Excess unpaid principal over fair value (71 ) (83 ) Fair value $ 2,069 $ 2,198 Fair value of loans more than 90 days past due $ 24 $ 8 Fair value of loans in nonaccrual status 24 8 Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both 35 34 Debt Unpaid principal balance $ 2,342 $ 2,459 Excess unpaid principal over fair value (134 ) (140 ) Carrying value (1) $ 2,208 $ 2,319 (1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.2 billion and $2.3 billion as of December 31, 2017 and December 31, 2016 , respectively. |
Schedule of debt of the consolidated investment entities and the stated interest rates | Debt of the consolidated investment entities and the stated interest rates were as follows: Carrying Value Weighted Average Interest Rate December 31, December 31, 2017 2016 2017 2016 (in millions) Debt of consolidated CLOs due 2025-2026 $ 2,208 $ 2,319 2.8 % 2.5 % |
Schedule of maturities of long-term debt | At December 31, 2017 , future maturities of debt were as follows: (in millions) 2018 $ — 2019 54 2020 — 2021 — 2022 — Thereafter 2,288 Total future maturities $ 2,342 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments [Table Text Block] | The following is a summary of investments: December 31, 2017 2016 (in millions) Available-for-Sale securities, at fair value $ 30,927 $ 30,719 Mortgage loans, net 2,756 2,986 Policy and certificate loans 845 831 Other investments 1,397 1,298 Total $ 35,925 $ 35,834 |
Summary of Net Investment Income [Table Text Block] | The following is a summary of net investment income: Years Ended December 31, 2017 2016 2015 (in millions) Investment income on fixed maturities $ 1,349 $ 1,368 $ 1,403 Net realized gains (losses) 46 6 4 Affordable housing partnerships (100 ) (44 ) (18 ) Other 108 91 68 Consolidated investment entities 106 155 231 Total $ 1,509 $ 1,576 $ 1,688 |
Available-for-Sale Securities Disclosure [Table Text Block] | Available-for-Sale securities distributed by type were as follows: Description of Securities December 31, 2017 Amortized Gross Gross Fair Value Noncredit OTTI (1) (in millions) Corporate debt securities $ 13,976 $ 1,131 $ (32 ) $ 15,075 $ — Residential mortgage backed securities 6,585 63 (37 ) 6,611 — Commercial mortgage backed securities 4,362 48 (36 ) 4,374 — Asset backed securities 1,549 36 (5 ) 1,580 1 State and municipal obligations 2,215 259 (11 ) 2,463 — U.S. government and agency obligations 502 1 — 503 — Foreign government bonds and obligations 298 20 (4 ) 314 — Common stocks 5 3 (1 ) 7 — Total $ 29,492 $ 1,561 $ (126 ) $ 30,927 $ 1 Description of Securities December 31, 2016 Amortized Gross Gross Fair Value Noncredit (1) (in millions) Corporate debt securities $ 15,231 $ 1,065 $ (60 ) $ 16,236 $ — Residential mortgage backed securities 6,899 86 (67 ) 6,918 (3 ) Commercial mortgage backed securities 3,347 59 (39 ) 3,367 — Asset backed securities 1,532 33 (16 ) 1,549 5 State and municipal obligations 2,195 198 (35 ) 2,358 — U.S. government and agency obligations 7 1 — 8 — Foreign government bonds and obligations 251 17 (7 ) 261 — Common stocks 10 13 (1 ) 22 6 Total $ 29,472 $ 1,472 $ (225 ) $ 30,719 $ 8 (1) Represents the amount of other-than-temporary impairment (“OTTI”) losses in AOCI. Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period. |
Investments with Fixed Maturities Disclosure [Table Text Block] | A summary of fixed maturity securities by rating was as follows: Ratings December 31, 2017 December 31, 2016 Amortized Fair Value Percent of Total Fair Value Amortized Fair Value Percent of Total Fair Value (in millions, except percentages) AAA $ 11,293 $ 11,331 37 % $ 9,252 $ 9,305 31 % AA 1,898 2,114 7 1,729 1,906 6 A 4,760 5,243 17 5,157 5,567 18 BBB 10,317 10,989 35 11,739 12,340 40 Below investment grade (1) 1,219 1,243 4 1,585 1,579 5 Total fixed maturities $ 29,487 $ 30,920 100 % $ 29,462 $ 30,697 100 % (1) The amortized cost and fair value of below investment grade securities includes interest in CLOs managed by the Company of $6 million and $7 million , respectively, at December 31, 2017 , and $9 million and $14 million , respectively, at December 31, 2016 . |
Available-for-Sale Securities Continuous Unrealized Loss Disclosure [Table Text Block] | The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position: Description of Securities December 31, 2017 Less than 12 months 12 months or more Total Number of Securities Fair Unrealized Number of Securities Fair Unrealized Number of Securities Fair Unrealized (in millions, except number of securities) Corporate debt securities 150 $ 1,791 $ (8 ) 70 $ 740 $ (24 ) 220 $ 2,531 $ (32 ) Residential mortgage backed securities 102 1,772 (11 ) 130 1,467 (26 ) 232 3,239 (37 ) Commercial mortgage backed securities 67 1,178 (12 ) 58 783 (24 ) 125 1,961 (36 ) Asset backed securities 36 424 (2 ) 26 187 (3 ) 62 611 (5 ) State and municipal obligations 76 141 (1 ) 34 180 (10 ) 110 321 (11 ) Foreign government bonds and obligations 3 6 — 15 23 (4 ) 18 29 (4 ) Common and preferred stocks — — — 4 1 (1 ) 4 1 (1 ) Total 434 $ 5,312 $ (34 ) 337 $ 3,381 $ (92 ) 771 $ 8,693 $ (126 ) Description of Securities December 31, 2016 Less than 12 months 12 months or more Total Number of Securities Fair Unrealized Number of Securities Fair Unrealized Number of Securities Fair Unrealized (in millions, except number of securities) Corporate debt securities 187 $ 2,452 $ (33 ) 38 $ 377 $ (27 ) 225 $ 2,829 $ (60 ) Residential mortgage backed securities 127 2,533 (33 ) 177 1,290 (34 ) 304 3,823 (67 ) Commercial mortgage backed securities 100 1,583 (39 ) 5 43 — 105 1,626 (39 ) Asset backed securities 48 524 (9 ) 27 298 (7 ) 75 822 (16 ) State and municipal obligations 181 374 (14 ) 3 110 (21 ) 184 484 (35 ) Foreign government bonds and obligations 7 30 (1 ) 15 23 (6 ) 22 53 (7 ) Common and preferred stocks — — — 3 1 (1 ) 3 1 (1 ) Total 650 $ 7,496 $ (129 ) 268 $ 2,142 $ (96 ) 918 $ 9,638 $ (225 ) |
Credit Losses on Available-for-Sale Securities Disclosure [Table Text Block] | The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of 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 OCI: December 31, 2017 2016 2015 (in millions) Beginning balance $ 69 $ 85 $ 98 Credit losses for which an other-than-temporary impairment was not previously recognized — 1 — Credit losses for which an other-than-temporary impairment was previously recognized 1 1 2 Reductions for securities sold during the period (realized) (68 ) (18 ) (15 ) Ending balance $ 2 $ 69 $ 85 |
Available-for-Sale Securities Recognized in Earnings Disclosure [Table Text Block] | Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in earnings were as follows: Years Ended December 31, 2017 2016 2015 (in millions) Gross realized gains $ 63 $ 37 $ 33 Gross realized losses (7 ) (13 ) (19 ) Other-than-temporary impairments (1 ) (2 ) (8 ) Total $ 55 $ 22 $ 6 |
Available-for-Sale Securities Contractual Maturity Disclosure [Table Text Block] | Available-for-Sale securities by contractual maturity at December 31, 2017 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 2,314 $ 2,333 Due after one year through five years 6,819 7,020 Due after five years through 10 years 3,575 3,701 Due after 10 years 4,283 5,301 16,991 18,355 Residential mortgage backed securities 6,585 6,611 Commercial mortgage backed securities 4,362 4,374 Asset backed securities 1,549 1,580 Common stocks 5 7 Total $ 29,492 $ 30,927 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Rollforward of the allowance for loan losses [Table Text Block] | The following table presents a rollforward of the allowance for loan losses for the years ended and the ending balance of the allowance for loan losses by impairment method: December 31, 2017 2016 2015 (in millions) Beginning balance $ 29 $ 32 $ 35 Charge-offs (2 ) (5 ) (4 ) Provisions (1 ) 2 1 Ending balance $ 26 $ 29 $ 32 Individually evaluated for impairment $ — $ 2 $ 4 Collectively evaluated for impairment 26 27 28 |
Schedule of recorded investment in financing receivables by impairment method and type of loan [Table Text Block] | The recorded investment in financing receivables by impairment method was as follows: December 31, 2017 2016 (in millions) Individually evaluated for impairment $ 17 $ 12 Collectively evaluated for impairment 3,258 3,480 Total $ 3,275 $ 3,492 |
Schedule of commercial mortgage loans by geographic region [Table Text Block] | Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows: Loans Percentage December 31, December 31, 2017 2016 2017 2016 (in millions) East North Central $ 215 $ 198 8 % 7 % East South Central 90 88 3 3 Middle Atlantic 192 203 7 8 Mountain 256 240 9 9 New England 74 91 3 3 Pacific 812 746 29 28 South Atlantic 768 783 28 29 West North Central 235 222 8 8 West South Central 133 131 5 5 2,775 2,702 100 % 100 % Less: allowance for loan losses 19 21 Total $ 2,756 $ 2,681 |
Schedule of commercial mortgage loans by property type [Table Text Block] | Concentrations of credit risk of commercial mortgage loans by property type were as follows: Loans Percentage December 31, December 31, 2017 2016 2017 2016 (in millions) Apartments $ 566 $ 504 20 % 19 % Hotel 40 42 1 1 Industrial 476 446 17 17 Mixed use 44 49 2 2 Office 492 489 18 18 Retail 937 950 34 35 Other 220 222 8 8 2,775 2,702 100 % 100 % Less: allowance for loan losses 19 21 Total $ 2,756 $ 2,681 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Schedule of effect of reinsurance on premiums - traditional long-duration products[Table Text Block] | The effect of reinsurance on premiums for the Company’s traditional long-duration contracts was as follows: Years Ended December 31, 2017 2016 2015 (in millions) Direct premiums $ 637 $ 642 $ 629 Reinsurance ceded (227 ) (225 ) (223 ) Net premiums $ 410 $ 417 $ 406 |
Schedule of effect of reinsurance on premiums - short-duration products [Table Text Block] | The effect of reinsurance on premiums for the Company’s short-duration contracts was as follows: Years Ended December 31, 2017 2016 2015 (in millions) Written premiums Direct $ 1,119 $ 1,085 $ 1,093 Ceded (171 ) (20 ) (19 ) Total net written premiums $ 948 $ 1,065 $ 1,074 Earned premiums Direct $ 1,107 $ 1,094 $ 1,068 Ceded (123 ) (20 ) (19 ) Total net earned premiums $ 984 $ 1,074 $ 1,049 |
Goodwill and Other Intangible42
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill reported in operating segments [Table Text Block] | The changes in the carrying amount of goodwill reported in the Company’s main operating segments were as follows: Advice & Wealth Asset Annuities Protection Consolidated (in millions) Balance at January 1, 2016 $ 252 $ 794 $ 46 $ 45 $ 1,137 Acquisitions (1) — 19 — — 19 Foreign currency translation — (51 ) — — (51 ) Purchase price adjustments — (1 ) — — (1 ) Balance at December 31, 2016 252 761 46 45 1,104 Acquisitions (2) 27 22 — — 49 Foreign currency translation — 24 — — 24 Purchase price adjustments — (2 ) — — (2 ) Balance at December 31, 2017 $ 279 $ 805 $ 46 $ 45 $ 1,175 (1) Relates to the Company’s acquisition of Emerging Global Advisors, LLC (“EGA”). (2) Relates to the Company’s acquisitions of Investment Professionals, Inc. (“IPI”) and Lionstone Partners, LLC. |
Definite-lived intangible assets [Table Text Block] | Definite-lived intangible assets consisted of the following: December 31, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Customer relationships $ 194 $ (124 ) $ 70 $ 144 $ (112 ) $ 32 Contracts 222 (194 ) 28 213 (177 ) 36 Other 156 (116 ) 40 141 (101 ) 40 Total $ 572 $ (434 ) $ 138 $ 498 $ (390 ) $ 108 |
Estimated intangible amortization expenses [Table Text Block] | Estimated intangible amortization expense as of December 31, 2017 for the next five years is as follows: (in millions) 2018 $ 29 2019 26 2020 20 2021 17 2022 15 |
Deferred Acquisition Costs an43
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Charges, Insurers [Abstract] | |
Schedule of balances of and changes in DAC [Table Text Block] | The balances of and changes in DAC were as follows: 2017 2016 2015 (in millions) Balance at January 1 $ 2,648 $ 2,730 $ 2,613 Capitalization of acquisition costs 302 360 (1) 361 Amortization, excluding the impact of valuation assumptions review (279 ) (334 ) (348 ) Amortization, impact of valuation assumptions review 12 (81 ) (2) (6 ) Impact of change in net unrealized securities (gains) losses (7 ) (27 ) 110 Balance a December 31 $ 2,676 $ 2,648 $ 2,730 (1) Includes a $27 million benefit related to the write-off of the deferred reinsurance liability in connection with the loss recognition on LTC business. The benefit was reported in Distribution expenses on the Consolidated Statements of Operations. (2) Includes a $58 million expense related to the loss recognition on LTC business. |
Schedule of balances of and changes in DSIC [Table Text Block] | The balances of and changes in DSIC, which is included in other assets, were as follows: 2017 2016 2015 (in millions) Balance at January 1 $ 302 $ 335 $ 362 Capitalization of sales inducement costs 4 5 4 Amortization, excluding the impact of valuation assumptions review (35 ) (42 ) (52 ) Amortization, impact of valuation assumptions review (1 ) 4 1 Impact of change in net unrealized securities (gains) losses 6 — 20 Balance at December 31 $ 276 $ 302 $ 335 |
Policyholder Account Balances44
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | |
Policyholder Account Balances, Future Policy Benefits and Unpaid Claims Disclosure [Table Text Block] | Policyholder account balances, future policy benefits and claims consisted of the following: December 31, 2017 2016 (in millions) Policyholder account balances Fixed annuities (1) $ 9,934 $ 10,588 Variable annuity fixed sub-accounts 5,166 5,211 VUL/UL insurance 3,047 3,007 IUL insurance 1,384 1,054 Other life insurance 720 758 Total policyholder account balances 20,251 20,618 Future policy benefits Variable annuity GMWB 463 1,017 Variable annuity GMAB (80 ) (2) (24 ) (2) Other annuity liabilities 78 66 Fixed annuity life contingent liabilities 1,484 1,497 Life and DI insurance 1,221 1,204 LTC insurance 4,896 4,352 VUL/UL and other life insurance additional liabilities 688 588 Total future policy benefits 8,750 8,700 Policy claims and other policyholders’ funds 903 884 Total policyholder account balances, future policy benefits and claims $ 29,904 $ 30,202 (1) Includes fixed deferred annuities, non-life contingent fixed payout annuities and indexed annuity host contracts. (2) Includes the fair value of GMAB embedded derivatives that was a net asset as of both December 31, 2017 and 2016 reported as a contra liability. |
Schedule of Separate Account Liabilities by Policy Type [Table Text Block] | Separate account liabilities consisted of the following: December 31, 2017 2016 (in millions) Variable annuity $ 75,174 $ 69,606 VUL insurance 7,352 6,659 Other insurance 34 33 Threadneedle investment liabilities 4,808 3,912 Total $ 87,368 $ 80,210 |
Variable Annuity and Insuranc45
Variable Annuity and Insurance Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Schedule of variable annuity guarantees [Table Text Block] | The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities: Variable Annuity Guarantees by Benefit Type (1) December 31, 2017 December 31, 2016 Total Contract 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 $ 61,418 $ 59,461 $ 9 66 $ 56,143 $ 54,145 $ 208 65 Five/six-year reset 8,870 6,149 12 66 8,878 6,170 22 66 One-year ratchet 6,548 6,187 11 69 6,426 6,050 110 68 Five-year ratchet 1,563 1,506 1 65 1,542 1,483 7 64 Other 1,099 1,075 50 72 965 942 86 71 Total — GMDB $ 79,498 $ 74,378 $ 83 66 $ 73,954 $ 68,790 $ 433 65 GGU death benefit $ 1,118 $ 1,067 $ 133 70 $ 1,047 $ 996 $ 108 68 GMIB $ 233 $ 216 $ 7 69 $ 245 $ 227 $ 13 68 GMWB: GMWB $ 2,508 $ 2,500 $ 1 71 $ 2,650 $ 2,642 $ 2 70 GMWB for life 44,375 44,259 129 67 39,436 39,282 289 (2) 66 Total — GMWB $ 46,883 $ 46,759 $ 130 67 $ 42,086 $ 41,924 $ 291 66 GMAB $ 3,086 $ 3,083 $ — 59 $ 3,484 $ 3,476 $ 21 59 (1) Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table. (2) Amount revised to reflect updated contractholder mortality assumptions as of December 31, 2016. |
Schedule of net amount at risk UL secondary guarantees [Table Text Block] | The following table provides information related to insurance guarantees for which the Company has established additional liabilities: December 31, 2017 December 31, 2016 Net Amount at Risk Weighted Average Attained Age Net Amount at Risk Weighted Average Attained Age (in millions, except age) UL secondary guarantees $ 6,460 65 $ 6,376 64 |
Schedule of changes in additional liabilities for variable annuity and insurance guarantees [Table Text Block] | Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows: GMDB & GGU GMIB GMWB (1) GMAB (1) UL (in millions) Balance at January 1, 2015 $ 9 $ 7 $ 693 $ (41 ) $ 263 Incurred claims 10 1 364 41 92 Paid claims (5 ) — — — (23 ) Balance at December 31, 2015 14 8 1,057 — 332 Incurred claims 11 1 (40 ) (23 ) 127 Paid claims (9 ) (1 ) — (1 ) (25 ) Balance at December 31, 2016 16 8 1,017 (24 ) 434 Incurred claims 5 — (554 ) (56 ) 84 Paid claims (4 ) (2 ) — — (29 ) Balance at December 31, 2017 $ 17 $ 6 $ 463 $ (80 ) $ 489 (1) The incurred claims for GMWB and GMAB represent the change in the fair value of the liabilities (contra liabilities) less paid claims. |
Schedule of separate account balances by asset type [Table Text Block] | The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: December 31, 2017 2016 (in millions) Mutual funds: Equity $ 46,038 $ 40,622 Bond 23,529 23,142 Other 5,109 5,326 Total mutual funds $ 74,676 $ 69,090 |
Customer Deposits (Tables)
Customer Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of customer deposits [Table Text Block] | Customer deposits consisted of the following: December 31, 2017 2016 (in millions) Fixed rate certificates $ 5,837 $ 5,353 Stock market certificates 520 547 Stock market embedded derivative 10 8 Other 33 27 Less: accrued interest classified in other liabilities (12 ) (11 ) Total investment certificate reserves 6,388 5,924 Brokerage deposits 3,915 4,112 Total $ 10,303 $ 10,036 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of debt [Table Text Block] | The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows: Outstanding Balance Stated Interest Rate December 31, December 31, 2017 2016 2017 2016 (in millions) Long-term debt: Senior notes due 2019 $ 300 $ 300 7.3 % 7.3 % Senior notes due 2020 750 750 5.3 5.3 Senior notes due 2023 750 750 4.0 4.0 Senior notes due 2024 550 550 3.7 3.7 Senior notes due 2026 500 500 2.9 2.9 Capitalized lease obligations 38 49 Other (1) 3 18 Total long-term debt 2,891 2,917 Short-term borrowings: Federal Home Loan Bank (“FHLB”) advances 150 150 1.5 0.8 Repurchase agreements 50 50 1.4 0.9 Total short-term borrowings 200 200 Total $ 3,091 $ 3,117 (1) Amounts include adjustments for fair value hedges on the Company’s long-term debt and unamortized discount and debt issuance costs. See Note 16 for information on the Company’s fair value hedges. |
Schedule of maturities of long-term debt [Table Text Block] | At December 31, 2017 , future maturities of Ameriprise Financial long-term debt were as follows: (in millions) 2018 $ 13 2019 314 2020 761 2021 — 2022 — Thereafter 1,800 Total future maturities $ 2,888 |
Offsetting Assets and Liabili48
Offsetting Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Offsetting [Abstract] | |
Schedule of gross and net information about the Company's assets subject to master netting arrangements [Table Text Block] | The following tables present the gross and net information about the Company’s assets subject to master netting arrangements: December 31, 2017 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,520 $ — $ 3,520 $ (2,653 ) $ (760 ) $ (88 ) $ 19 OTC cleared (2) 21 — 21 (15 ) — — 6 Exchange-traded 22 — 22 (1 ) — — 21 Total derivatives 3,563 — 3,563 (2,669 ) (760 ) (88 ) 46 Securities borrowed 103 — 103 (19 ) — (82 ) 2 Total $ 3,666 $ — $ 3,666 $ (2,688 ) $ (760 ) $ (170 ) $ 48 December 31, 2016 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 2,920 $ — $ 2,920 $ (2,214 ) $ (406 ) $ (235 ) $ 65 OTC cleared 512 — 512 (509 ) (3 ) — — Exchange-traded 14 — 14 (2 ) — — 12 Total derivatives 3,446 — 3,446 (2,725 ) (409 ) (235 ) 77 Securities borrowed 127 — 127 (16 ) — (108 ) 3 Total $ 3,573 $ — $ 3,573 $ (2,741 ) $ (409 ) $ (343 ) $ 80 (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. (2) The decrease in OTC cleared derivatives from December 31, 2016 is a result of certain central clearing parties amending their rules resulting in variation margin payments being settlement payments, as opposed to collateral. |
Schedule of gross and net information about the Company's liabilities subject to master netting arrangements [Table Text Block] | The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements: December 31, 2017 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,309 $ — $ 3,309 $ (2,653 ) $ (70 ) $ (579 ) $ 7 OTC cleared (2) 16 — 16 (15 ) — — 1 Exchange-traded 3 — 3 (1 ) — — 2 Total derivatives 3,328 — 3,328 (2,669 ) (70 ) (579 ) 10 Securities loaned 118 — 118 (19 ) — (94 ) 5 Repurchase agreements 50 — 50 — — (50 ) — Total $ 3,496 $ — $ 3,496 $ (2,688 ) $ (70 ) $ (723 ) $ 15 December 31, 2016 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 2,626 $ — $ 2,626 $ (2,214 ) $ (53 ) $ (352 ) $ 7 OTC cleared 539 — 539 (509 ) (25 ) — 5 Exchange-traded 6 — 6 (2 ) — — 4 Total derivatives 3,171 — 3,171 (2,725 ) (78 ) (352 ) 16 Securities loaned 146 — 146 (16 ) — (125 ) 5 Repurchase agreements 50 — 50 — — (50 ) — Total $ 3,367 $ — $ 3,367 $ (2,741 ) $ (78 ) $ (527 ) $ 21 (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 Activ49
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) | |
Schedule of gross fair value of derivative instruments, including embedded derivatives [Table Text Block] | The Company uses derivatives as economic hedges and accounting hedges. The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives: December 31, 2017 December 31, 2016 Notional Gross Fair Value Notional Gross Fair Value Assets (1) Liabilities (2)(3) Assets (1) Liabilities (2)(3) (in millions) Derivatives designated as hedging instruments Interest rate contracts $ 675 $ 23 $ — $ 675 $ 40 $ — Foreign exchange contracts 87 — 4 164 12 — Total qualifying hedges 762 23 4 839 52 — Derivatives not designated as hedging instruments Interest rate contracts 66,043 1,081 416 72,449 1,738 989 Equity contracts 59,292 2,423 2,883 63,015 1,574 2,135 Credit contracts 721 — 2 1,039 1 — Foreign exchange contracts 4,163 36 23 4,733 81 47 Other contracts 452 — — 241 — — Total non-designated hedges 130,671 3,540 3,324 141,477 3,394 3,171 Embedded derivatives GMWB and GMAB (4) N/A — (49 ) N/A — 614 IUL N/A — 601 N/A — 464 Indexed annuities N/A — 5 N/A — 5 SMC N/A — 10 N/A — 8 Total embedded derivatives N/A — 567 N/A — 1,091 Total derivatives $ 131,433 $ 3,563 $ 3,895 $ 142,316 $ 3,446 $ 4,262 N/A Not applicable. (1) The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. (2) The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and indexed annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. The fair value of the SMC embedded derivative liability is included in Customer deposits on the Consolidated Balance Sheets. (3) The fair value of the Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $1.3 billion and $1.5 billion as of December 31, 2017 and 2016 , respectively. See Note 15 for additional information related to master netting arrangements and cash collateral. See Note 4 for information about derivatives held by consolidated VIEs. (4) The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2017 included $443 million of individual contracts in a liability position and $492 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2016 included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position. |
Schedule of gain (loss) on derivative instruments [Table Text Block] | The following table presents a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Operations: Net Investment Income Banking and Deposit Interest Expense Distribution Expenses Interest Credited to Fixed Accounts Benefits, Claims, Losses and Settlement Expenses General and Administrative Expense (in millions) Year Ended December 31, 2017 Interest rate contracts $ (3 ) $ — $ — $ — $ 1 $ — Equity contracts (10 ) 4 54 75 (1,081 ) 11 Credit contracts — — — — (22 ) — Foreign exchange contracts — — 3 — (23 ) 6 Other contracts — — — — (2 ) — GMWB and GMAB embedded derivatives — — — — 663 — IUL embedded derivatives — — — (45 ) — — SMC embedded derivatives — (4 ) — — — — Total gain (loss) $ (13 ) $ — $ 57 $ 30 $ (464 ) $ 17 Year Ended December 31, 2016 Interest rate contracts $ 3 $ — $ — $ — $ 36 $ — Equity contracts (1 ) 2 23 20 (897 ) 6 Credit contracts — — — — 2 — Foreign exchange contracts — — (1 ) — — 14 Other contracts — — — — (2 ) — GMWB and GMAB embedded derivatives — — — — 237 — IUL embedded derivatives — — — 15 — — SMC embedded derivatives — (2 ) — — — — Total gain (loss) $ 2 $ — $ 22 $ 35 $ (624 ) $ 20 Year Ended December 31, 2015 Interest rate contracts $ (21 ) $ — $ — $ — $ 228 $ — Equity contracts — — 1 (10 ) (317 ) 2 Credit contracts — — — — (1 ) — Foreign exchange contracts 4 — (1 ) — 13 (2 ) Other contracts 1 — — — (1 ) — GMWB and GMAB embedded derivatives — — — — (372 ) — IUL embedded derivatives — — — (8 ) — — Indexed annuity embedded derivatives — — — 1 — — Total gain (loss) $ (16 ) $ — $ — $ (17 ) $ (450 ) $ — |
Schedule of payments to make and receive for options [Table Text Block] | The deferred premium associated with certain of the above options and swaptions is paid or received semi-annually over the life of the contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of December 31, 2017 : Premiums Payable Premiums Receivable (in millions) 2018 $ 233 $ 131 2019 296 171 2020 217 100 2021 187 109 2022 250 148 2023-2027 523 59 Total $ 1,706 $ 718 |
Fair value hedges [Member] | |
Derivative Instruments, Gain (Loss) | |
Schedule of gain (loss) on derivative instruments [Table Text Block] | Derivatives designated as hedging instruments Location of Gain Recorded into Income Amount of Gain Recognized in Income on Derivatives Years Ended December 31, 2017 2016 2015 (in millions) Interest rate contracts Interest and debt expense $ 16 $ 19 $ 31 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Components of share-based compensation expense, net of forfeitures [Table Text Block] | The components of the Company’s share-based compensation expense, net of forfeitures, were as follows: December 31, 2017 2016 2015 (in millions) Stock option $ 32 $ 34 $ 39 Restricted stock 24 24 22 Restricted stock units 65 76 83 Liability awards 45 4 14 Total $ 166 $ 138 $ 158 |
Weighted average assumptions used for stock option grants [Table Text Block] | The following weighted average assumptions were used for stock option grants: 2017 2016 2015 Dividend yield 2.3 % 2.3 % 2.0 % Expected volatility 30 % 27 % 26 % Risk-free interest rate 1.9 % 1.3 % 1.2 % Expected life of stock option (years) 5.0 5.0 5.0 |
Summary of stock option activity [Table Text Block] | A summary of the Company’s stock option activity for 2017 is presented below (shares and intrinsic value in millions): Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1 8.2 $ 84.85 6.7 $ 241 Granted 1.2 123.58 Exercised (3.3 ) 69.41 Forfeited (0.1 ) 106.62 Outstanding at December 31 6.0 100.38 7.0 413 Exercisable at December 31 3.2 92.72 5.8 243 |
Summary of restricted stock award activity [Table Text Block] | A summary of activity for the Company’s restricted stock awards, restricted stock units granted to employees (including advisors), compensation and commission deferrals into stock and deferred share units for 2017 is presented below (shares in millions): Shares Weighted Average Grant-date Fair Value Non-vested shares at January 1 1.3 $ 99.37 Granted 0.5 127.08 Deferred 0.2 134.01 Vested (0.7 ) 113.59 Forfeited (0.1 ) 106.43 Non-vested shares at December 31 1.2 107.52 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of other comprehensive income (loss) [Table Text Block] | The following tables provide the amounts related to each component of OCI: Year Ended December 31, 2017 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized securities gains (losses): Net unrealized securities gains (losses) arising during the period (1) $ 243 $ (77 ) $ 166 Reclassification of net securities (gains) losses included in net income (2) (55 ) 19 (36 ) Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables (180 ) 57 (123 ) Net unrealized securities gains (losses) 8 (1 ) 7 Net unrealized derivatives gains (losses): Reclassification of net derivative (gains) losses included in net income (3) 5 (2 ) 3 Net unrealized derivatives gains (losses) 5 (2 ) 3 Defined benefit plans: Prior service credit 2 (1 ) 1 Net gain (loss) arising during the period 38 (11 ) 27 Defined benefit plans 40 (12 ) 28 Foreign currency translation 74 (82 ) (4 ) (8 ) Other (1 ) — (1 ) Total other comprehensive income (loss) $ 126 $ (97 ) $ 29 Year Ended December 31, 2016 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized securities gains (losses): Net unrealized securities gains (losses) arising during the period (1) $ 339 $ (121 ) $ 218 Reclassification of net securities (gains) losses included in net income (2) (22 ) 8 (14 ) Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables (242 ) 85 (157 ) Net unrealized securities gains (losses) 75 (28 ) 47 Net unrealized derivatives gains (losses): Reclassification of net derivative (gains) losses included in net income (3) 6 (2 ) 4 Net unrealized derivatives gains (losses) 6 (2 ) 4 Defined benefit plans: Net gain (loss) arising during the period (45 ) 11 (34 ) Defined benefit plans (45 ) 11 (34 ) Foreign currency translation (117 ) 41 (76 ) Total other comprehensive income (loss) $ (81 ) $ 22 $ (59 ) Year Ended December 31, 2015 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized securities gains (losses): Net unrealized securities gains (losses) arising during the period (1) $ (1,027 ) $ 359 $ (668 ) Reclassification of net securities (gains) losses included in net income (2) (6 ) 2 (4 ) Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables 480 (168 ) 312 Net unrealized securities gains (losses) (553 ) 193 (360 ) Net unrealized derivatives gains (losses): Reclassification of net derivative (gains) losses included in net income (3) 1 — 1 Net unrealized derivatives gains (losses) 1 — 1 Defined benefit plans: Prior service credit (2 ) — (2 ) Net gain (loss) arising during the period (24 ) 6 (18 ) Defined benefit plans (26 ) 6 (20 ) Foreign currency translation (46 ) 16 (30 ) Other comprehensive income (loss) attributable to Ameriprise Financial (624 ) 215 (409 ) Other comprehensive income (loss) attributable to noncontrolling interests (60 ) — (60 ) Total other comprehensive income (loss) $ (684 ) $ 215 $ (469 ) (1) Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period. (2) Reclassification amounts are recorded in net investment income. (3) Includes a $2 million , $1 million and $4 million pretax gain reclassified to interest and debt expenses and a $5 million , $6 million and $5 million pretax loss reclassified to net investment income for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Information related to amounts reclassified from AOCI [Table Text Block] | The following table presents the changes in the balances of each component of AOCI, net of tax: Net Unrealized Securities Gains Net Unrealized Derivatives Losses Defined Benefit Plans Foreign Currency Translation Other Total (in millions) Balance, January 1, 2015 $ 786 $ — $ (71 ) $ (53 ) $ — $ 662 OCI before reclassifications (356 ) — (25 ) (30 ) — (411 ) Amounts reclassified from AOCI (4 ) 1 5 — — 2 OCI attributable to Ameriprise Financial (360 ) 1 (20 ) (30 ) — (409 ) Balance, December 31, 2015 426 (1) 1 (91 ) (83 ) — 253 Cumulative effect of change in accounting policies 6 — — — — 6 OCI before reclassifications 61 — (39 ) (76 ) — (54 ) Amounts reclassified from AOCI (14 ) 4 5 — — (5 ) OCI attributable to Ameriprise Financial 47 4 (34 ) (76 ) — (59 ) Balance, December 31, 2016 479 (1) 5 (125 ) (159 ) — 200 OCI before reclassifications 43 — 20 (8 ) (1 ) 54 Amounts reclassified from AOCI (36 ) 3 8 — — (25 ) OCI attributable to Ameriprise Financial 7 3 28 (8 ) (1 ) 29 Balance, December 31, 2017 $ 486 (1) $ 8 $ (97 ) $ (167 ) $ (1 ) $ 229 (1) Includes $1 million , $4 million and $4 million of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities at December 31, 2017 , 2016 and 2015 , respectively. |
Earnings per Share Attributab52
Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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: Years Ended December 31, 2017 2016 2015 (in millions, except per share amounts) Numerator: Net income $ 1,480 $ 1,314 $ 1,687 Less: Net income attributable to noncontrolling interests — — 125 Net income attributable to Ameriprise Financial $ 1,480 $ 1,314 $ 1,562 Denominator: Basic: Weighted-average common shares outstanding 154.1 166.3 181.7 Effect of potentially dilutive nonqualified stock options and other share-based awards 2.6 1.9 2.5 Diluted: Weighted-average common shares outstanding 156.7 168.2 184.2 Earnings per share attributable to Ameriprise Financial, Inc. common shareholders: Basic $ 9.60 $ 7.90 $ 8.60 Diluted $ 9.44 $ 7.81 $ 8.48 |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Requirements | |
Summary of Statutory Net Gain from Operations and Net Income [Table Text Block] | Statutory net gain from operations and net income (loss) are summarized as follows: Years Ended December 31, 2017 2016 2015 (in millions) RiverSource Life Statutory net gain from operations $ 958 $ 834 $ 1,033 Statutory net income (loss) 222 322 633 IDS Property Casualty Statutory net income (loss) (10 ) (8 ) (44 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax provision (benefit) [Table Text Block] | The components of income tax provision attributable to continuing operations were as follows: Years Ended December 31, 2017 2016 2015 (in millions) Current income tax Federal $ 468 $ 245 $ 509 State and local 58 44 36 Foreign 52 23 41 Total current income tax 578 312 586 Deferred income tax Federal 169 (36 ) (124 ) State and local (5 ) 3 (4 ) Foreign (8 ) (1 ) (3 ) Total deferred income tax 156 (34 ) (131 ) Total income tax provision $ 734 $ 278 $ 455 |
Schedule of geographic sources of pretax income [Table Text Block] | The geographic sources of pretax income from continuing operations were as follows: Years Ended December 31, 2017 2016 2015 (in millions) United States $ 1,988 $ 1,412 $ 1,710 Foreign 226 180 432 Total $ 2,214 $ 1,592 $ 2,142 |
Reconciliation of the income tax provision [Table Text Block] | The principal reasons that the aggregate income tax provision attributable to continuing operations is different from that computed by using the U.S. statutory rate of 35% were as follows: Years Ended December 31, 2017 2016 2015 Tax at U.S. statutory rate 35.0 % 35.0 % 35.0 % Changes in taxes resulting from: Impact of the Tax Act 13.0 — — Dividends received deduction (5.8 ) (7.6 ) (6.7 ) Low income housing tax credits (3.4 ) (4.2 ) (3.0 ) Incentive compensation (3.0 ) — — Foreign taxes (2.0 ) (2.5 ) — Foreign tax credits, net of addback — (1.6 ) (2.1 ) Taxes applicable to prior years — (3.1 ) — State taxes, net of federal benefit — 1.9 — Net income attributable to noncontrolling interests — — (2.0 ) Other, net (0.7 ) (0.5 ) 0.1 Income tax provision 33.1 % 17.4 % 21.3 % |
Schedule of significant components of deferred income tax assets and liabilities [Table Text Block] | The significant components of the Company’s deferred income tax assets and liabilities, which are included net within other assets or other liabilities on the Consolidated Balance Sheets, were as follows: December 31, 2017 2016 (in millions) Deferred income tax assets Liabilities for policyholder account balances, future policy benefits and claims $ 620 $ 1,177 Deferred compensation 345 439 Investment related 245 253 Postretirement benefits 34 62 Currency translation adjustments — 73 Other 66 68 Gross deferred income tax assets 1,310 2,072 Less: valuation allowance 17 11 Total deferred income tax assets 1,293 2,061 Deferred income tax liabilities Deferred acquisition costs 446 717 Net unrealized gains on Available-for-Sale securities 162 264 Depreciation expense 93 146 Intangible assets 93 126 Deferred sales inducement costs 62 113 Goodwill 52 74 Other 7 2 Gross deferred income tax liabilities 915 1,442 Net deferred income tax assets $ 378 $ 619 |
Reconciliation of gross unrecognized tax benefits (expense) [Table Text Block] | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows: 2017 2016 2015 (in millions) Balance at January 1 $ 115 $ 161 $ 242 Additions based on tax positions related to the current year 16 15 18 Additions for tax positions of prior years 3 33 48 Reductions for tax positions of prior years (57 ) (87 ) (147 ) Audit settlements (1 ) (7 ) — Balance at December 31 $ 76 $ 115 $ 161 |
Retirement Plans and Profit S55
Retirement Plans and Profit Sharing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Defined Benefit Plans | |
Reconciliation of the changes in the defined postretirement benefit plan obligation [Table Text Block] | The following table provides a reconciliation of changes in the benefit obligation: Pension Plans Other Postretirement Plans 2017 2016 2017 2016 (in millions) Benefit obligation, January 1 $ 899 $ 812 $ 15 $ 18 Service cost 47 44 — — Interest cost 28 29 — 1 Benefits paid (12 ) (8 ) (1 ) (4 ) Actuarial (gain) loss 39 65 1 — Plan change — — — (2 ) Participant contributions — — — 2 Settlements (21 ) (18 ) — — Foreign currency rate changes 15 (25 ) — — Benefit obligation, December 31 $ 995 $ 899 $ 15 $ 15 |
Schedule of amounts recognized in the Consolidated Balance Sheets [Table Text Block] | The following table provides the amounts recognized in the Consolidated Balance Sheets at December 31, which equal the funded status of the plans: Pension Plans Other Postretirement Plans 2017 2016 2017 2016 (in millions) Benefit liability $ (253 ) $ (271 ) $ (15 ) $ (15 ) Benefit asset 6 — — — Net amount recognized $ (247 ) $ (271 ) $ (15 ) $ (15 ) |
Accumulated benefit obligations in excess of the fair value of plan assets [Table Text Block] | The following table provides information for pension plans with benefit obligations in excess of plan assets: December 31, 2017 2016 (in millions) Pension plans with accumulated benefit obligations in excess of plan assets Accumulated benefit obligation $ 759 $ 684 Fair value of plan assets 562 469 Pension plans with projected benefit obligations in excess of plan assets Projected benefit obligation $ 816 $ 899 Fair value of plan assets 562 628 |
Schedule of weighted average assumptions used to determine benefit obligations [Table Text Block] | The weighted average assumptions used to determine benefit obligations were as follows: Pension Plans Other Postretirement Plans 2017 2016 2017 2016 Discount rates 3.32 % 3.66 % 3.41 % 3.77 % Rates of increase in compensation levels 4.29 4.39 N/A N/A |
Schedule of Assumptions Used [Table Text Block] | The weighted average assumptions used to determine net periodic benefit cost of pension plans were as follows: 2017 2016 2015 Discount rates 3.64 % 3.67 % 3.43 % Rates of increase in compensation levels 4.39 4.43 4.41 Expected long-term rates of return on assets 7.13 6.98 7.10 |
Schedule of pension plan assets measured at fair value on a recurring basis [Table Text Block] | The following tables present the Company’s pension plan assets measured at fair value on a recurring basis: Asset Category December 31, 2017 Level 1 Level 2 Level 3 Total (in millions) Equity securities: U.S. large cap stocks $ 95 $ 94 $ — $ 189 U.S. small cap stocks 76 4 — 80 Non-U.S. large cap stocks 28 43 — 71 Non-U.S. small cap stocks 28 — — 28 Emerging markets 19 32 — 51 Debt securities: U.S. investment grade bonds 27 11 — 38 U.S. high yield bonds — 26 — 26 Non-U.S. investment grade bonds — 16 — 16 Real estate investment trusts at NAV — — — 18 (1) Hedge funds at NAV — — — 27 (1) Pooled pension funds — 166 — 166 AVC assets (pooled pension funds) — 20 — 20 Cash equivalents 18 — — 18 Total $ 291 $ 412 $ — $ 748 Asset Category December 31, 2016 Level 1 Level 2 Level 3 Total (in millions) Equity securities: U.S. large cap stocks $ 73 $ 76 $ — $ 149 U.S. small cap stocks 69 4 — 73 Non-U.S. large cap stocks 22 34 — 56 Non-U.S. small cap stocks 21 — — 21 Emerging markets 14 23 — 37 Debt securities: U.S. investment grade bonds 26 10 — 36 U.S. high yield bonds — 24 — 24 Non-U.S. investment grade bonds — 14 — 14 Real estate investment trusts at NAV — — — 17 (1) Hedge funds at NAV — — — 26 (1) Pooled pension funds — 142 — 142 AVC assets (pooled pension funds) — 17 — 17 Cash equivalents 16 — — 16 Total $ 241 $ 344 $ — $ 628 (1) Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. See Note 2 for further information. |
Schedule of expected benefit payments to retirees under retirement plans [Table Text Block] | The Company’s pension plans expect to make benefit payments to retirees as follows: Pension Plans Other Postretirement Plans 2018 $ 83 $ 1 2019 62 1 2020 61 1 2021 74 1 2022 70 1 2023-2027 390 5 |
Pension Plans [Member] | |
Defined Benefit Plans | |
Schedule of components of net periodic pension cost [Table Text Block] | All components of the net periodic benefit cost are recorded in general and administrative expense and were as follows: Years Ended December 31, 2017 2016 2015 (in millions) Service cost $ 47 $ 44 $ 46 Interest cost 28 29 27 Expected return on plan assets (45 ) (41 ) (40 ) Amortization of prior service costs (1 ) (1 ) (1 ) Amortization of net loss 10 6 9 Other 3 4 4 Net periodic benefit cost $ 42 $ 41 $ 45 |
Reconciliation of the changes in the fair value of plan assets for the pension plans [Table Text Block] | The following table provides a reconciliation of changes in the fair value of assets: Pension Plans 2017 2016 (in millions) Fair value of plan assets, January 1 $ 628 $ 608 Actual return on plan assets 107 62 Employer contributions 32 13 Benefits paid (12 ) (8 ) Settlements (21 ) (18 ) Foreign currency rate changes 14 (29 ) Fair value of plan assets, December 31 $ 748 $ 628 |
Commitments, Guarantees and C56
Commitments, Guarantees and Contingencies Commitments, Guarantees and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The Company is committed to pay aggregate minimum rentals under noncancelable operating leases for office facilities in future years as of December 31, 2017 as follows: (in millions) 2018 $ 69 2019 58 2020 48 2021 35 2022 27 Thereafter 78 Total (1) $ 315 (1) Minimum payments have not been reduced by minimum sublease rentals due in the future under noncancelable subleases. |
Unused Commitments to Extend Credit [Table Text Block] | The following table presents the Company’s funding commitments as of December 31: 2017 2016 (in millions) Commercial mortgage loans $ 31 $ 78 Consumer mortgage loans — 185 Consumer lines of credit 2 2 Affordable housing and other real estate partnerships 123 177 Total funding commitments $ 156 $ 442 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information [Table Text Block] | The following tables summarize selected financial information by segment and reconcile segment totals to those reported on the consolidated financial statements: December 31, 2017 2016 (in millions) Advice & Wealth Management $ 13,270 $ 12,654 Asset Management 8,393 7,254 Annuities 98,276 93,481 Protection 18,039 16,780 Corporate & Other 9,492 9,652 Total assets $ 147,470 $ 139,821 Years Ended December 31, 2017 2016 2015 (in millions) Operating net revenues: Advice & Wealth Management $ 5,506 $ 5,036 $ 5,013 Asset Management 3,077 2,964 3,254 Annuities 2,499 2,463 2,541 Protection 2,044 2,241 2,131 Corporate & Other 173 237 256 Eliminations (1) (1,411 ) (1,406 ) (1,461 ) Total segment operating revenues 11,888 11,535 11,734 Net realized gains (losses) 46 6 4 Revenue attributable to CIEs 94 128 446 Market impact on IUL benefits, net 1 24 7 Market impact of hedges on investments (2 ) 3 (21 ) Total net revenues per consolidated statements of operations $ 12,027 $ 11,696 $ 12,170 (1) Represents the elimination of intersegment revenues recognized for the years ended December 31, 2017 , 2016 and 2015 in each segment as follows: Advice and Wealth Management ( $953 , $982 and $1,035 , respectively); Asset Management ( $47 , $44 and $43 , respectively); Annuities ( $351 , $333 and $340 , respectively); Protection ( $62 , $46 and $42 , respectively); and Corporate & Other ( $(2) , $1 and $1 , respectively). Years Ended December 31, 2017 2016 2015 (in millions) Operating earnings: Advice & Wealth Management $ 1,163 $ 911 $ 859 Asset Management 740 621 761 Annuities 710 329 650 Protection 216 263 198 Corporate & Other (426 ) (359 ) (214 ) Total segment operating earnings 2,403 1,765 2,254 Net realized gains (losses) 44 6 4 Net income (loss) attributable to CIEs 2 (2 ) 125 Market impact on variable annuity guaranteed benefits, net (232 ) (216 ) (214 ) Market impact on IUL benefits, net 4 36 (1 ) Market impact of hedges on investments (2 ) 3 (21 ) Integration and restructuring charges (5 ) — (5 ) Pretax income per consolidated statements of operations $ 2,214 $ 1,592 $ 2,142 |
Quarterly Financial Data Quarte
Quarterly Financial Data Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | 2017 2016 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31 (in millions, except per share data) Net revenues $ 3,160 $ 2,981 $ 2,985 $ 2,901 $ 3,062 $ 2,998 $ 2,871 $ 2,765 Pretax income 600 628 511 475 469 238 410 475 Net income 181 503 393 403 400 215 335 364 Earnings per share: Basic $ 1.20 $ 3.29 $ 2.53 $ 2.56 $ 2.49 $ 1.31 $ 1.99 $ 2.11 Diluted $ 1.18 $ 3.24 $ 2.50 $ 2.52 $ 2.46 $ 1.30 $ 1.97 $ 2.09 Weighted average common shares outstanding: Basic 151.0 153.0 155.1 157.5 160.4 164.0 168.3 172.6 Diluted 153.8 155.4 157.5 160.1 162.4 165.8 170.1 174.4 Cash dividends declared per common share $ 0.83 $ 0.83 $ 0.83 $ 0.75 $ 0.75 $ 0.75 $ 0.75 $ 0.67 Common share price: High 173.62 149.99 133.02 135.20 119.32 101.81 102.74 105.47 Low 147.79 128.06 118.84 110.56 86.25 84.93 84.92 76.00 |
SCHEDULE I - CONDENSED FINANC59
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Statements of Operations [Table Text Block] | Schedule I — Condensed Financial Information of Registrant (Parent Company Only) Years Ended December 31, 2017 2016 2015 (in millions) Revenues Management and financial advice fees $ (1 ) $ (1 ) $ (1 ) Net investment income 11 14 2 Other revenues 11 9 14 Total revenues 21 22 15 Banking and deposit interest expense 5 1 — Total net revenues 16 21 15 Expenses Benefits, claims, losses and settlement expenses 76 41 13 Distribution expense 18 — — Interest and debt expense 116 113 124 General and administrative expense 249 192 193 Total expenses 459 346 330 Pretax loss before equity in earnings of subsidiaries (443 ) (325 ) (315 ) Income tax benefit (47 ) (146 ) (123 ) Loss before equity in earnings of subsidiaries (396 ) (179 ) (192 ) Equity in earnings of subsidiaries 1,876 1,493 1,754 Net income 1,480 1,314 1,562 Other comprehensive income (loss), net of tax 29 (59 ) (409 ) Total comprehensive income $ 1,509 $ 1,255 $ 1,153 See Notes to Condensed Financial Information of Registrant. |
Condensed Balance Sheets [Table Text Block] | Schedule I — Condensed Financial Information of Registrant (Parent Company Only) December 31, 2017 2016 (in millions, except share amounts) Assets Cash and cash equivalents $ 494 $ 754 Investments 341 314 Loans to subsidiaries 227 167 Due from subsidiaries 382 452 Receivables 5 10 Land, buildings, equipment, and software, net of accumulated depreciation of $1,111 and $1,005, respectively 236 221 Restricted and segregated cash — 24 Investments in subsidiaries 8,060 7,739 Other assets 1,146 1,240 Total assets $ 10,891 $ 10,921 Liabilities and Shareholders’ Equity Liabilities: Accounts payable and accrued expenses $ 627 $ 524 Due to subsidiaries 74 88 Borrowings from subsidiaries 363 364 Long-term debt 2,891 2,917 Other liabilities 938 736 Total liabilities 4,893 4,629 Shareholders’ Equity: Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 327,506,935 and 324,006,315, respectively) 3 3 Additional paid-in capital 8,085 7,765 Retained earnings 11,329 10,351 Treasury shares, at cost (180,872,271 and 169,246,411 shares, respectively) (13,648 ) (12,027 ) Accumulated other comprehensive income, net of tax, including amounts applicable to equity investments in subsidiaries 229 200 Total shareholders’ equity 5,998 6,292 Total liabilities and equity $ 10,891 $ 10,921 See Notes to Condensed Financial Information of Registrant. |
Condensed Statements of Cash Flows [Table Text Block] | Schedule I — Condensed Financial Information of Registrant (Parent Company Only) Years Ended December 31, 2017 2016 2015 (in millions) Cash Flows from Operating Activities Net income $ 1,480 $ 1,314 $ 1,562 Equity in earnings of subsidiaries (1,876 ) (1,493 ) (1,754 ) Dividends received from subsidiaries 1,698 1,465 1,485 Other operating activities, primarily with subsidiaries 712 528 262 Net cash provided by operating activities 2,014 1,814 1,555 Cash Flows from Investing Activities Available-for-Sale securities: Proceeds from sales — 55 112 Maturities, sinking fund payments and calls 44 277 506 Purchases (77 ) (129 ) (28 ) Proceeds from sale of other investments 3 — 62 Purchase of other investments — — (5 ) Purchase of land, buildings, equipment and software (69 ) (49 ) (47 ) Contributions to subsidiaries (79 ) (197 ) (271 ) Return of capital from subsidiaries 47 187 146 Repayment of loans to subsidiaries 1,277 1,910 2,897 Issuance of loans to subsidiaries (1,337 ) (1,910 ) (2,897 ) Other, net (91 ) 59 6 Net cash provided by investing activities (282 ) 203 481 Cash Flows from Financing Activities Dividends paid to shareholders (491 ) (479 ) (465 ) Repurchase of common shares (1,485 ) (1,707 ) (1,741 ) Cash paid for purchased options with deferred premiums (19 ) (22 ) (19 ) Issuance of long-term debt, net of issuance costs — 496 — Repayments of long-term debt (11 ) (257 ) (409 ) Borrowings from subsidiaries 15 — 3 Repayments of borrowings from subsidiaries (15 ) — (18 ) Exercise of stock options 15 9 16 Other, net (1 ) 36 1 Net cash used in financing activities (1,992 ) (1,924 ) (2,632 ) Net increase (decrease) in cash and cash equivalents (260 ) 93 (596 ) Cash and cash equivalents at beginning of year 754 661 1,257 Cash and cash equivalents at end of year $ 494 $ 754 $ 661 Supplemental Disclosures: Interest paid on debt $ 128 $ 121 $ 154 Income taxes paid (received), net (368 ) (112 ) 378 Non-cash dividends from subsidiaries — 11 52 See Notes to Condensed Financial Information of Registrant. |
Fair Value of Assets and Liab60
Fair Value of Assets and Liabilities Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of balances of assets and liabilities measured at fair value on a recurring basis[Table Text Block] | The following tables present the balances of assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis: December 31, 2017 Level 1 Level 2 Level 3 Total (in millions) Assets Cash equivalents $ 147 $ 2,025 $ — $ 2,172 Available-for-Sale securities: Corporate debt securities — 13,936 1,139 15,075 Residential mortgage backed securities — 6,456 155 6,611 Commercial mortgage backed securities — 4,374 — 4,374 Asset backed securities — 1,573 7 1,580 State and municipal obligations — 2,463 — 2,463 U.S. government and agency obligations 503 — — 503 Foreign government bonds and obligations — 314 — 314 Common stocks 1 — — 1 Common stocks measured at net asset value (“NAV”) 6 (1) Total Available-for-Sale securities 504 29,116 1,301 30,927 Trading securities 10 34 — 44 Separate account assets at NAV 87,368 (1) Investments segregated for regulatory purposes 623 — — 623 Other assets: Interest rate derivative contracts — 1,104 — 1,104 Equity derivative contracts 63 2,360 — 2,423 Foreign exchange derivative contracts 2 34 — 36 Total other assets 65 3,498 — 3,563 Total assets at fair value $ 1,349 $ 34,673 $ 1,301 $ 124,697 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 601 601 GMWB and GMAB embedded derivatives — — (49 ) (49 ) (2) Total policyholder account balances, future policy benefits and claims — 5 552 557 (3) Customer deposits — 10 — 10 Other liabilities: Interest rate derivative contracts 1 415 — 416 Equity derivative contracts 7 2,876 — 2,883 Credit derivative contracts — 2 — 2 Foreign exchange derivative contracts 4 23 — 27 Other 9 6 28 43 Total other liabilities 21 3,322 28 3,371 Total liabilities at fair value $ 21 $ 3,337 $ 580 $ 3,938 December 31, 2016 Level 1 Level 2 Level 3 Total (in millions) Assets Cash equivalents $ 30 $ 1,796 $ — $ 1,826 Available-for-Sale securities: Corporate debt securities — 14,925 1,311 16,236 Residential mortgage backed securities — 6,650 268 6,918 Commercial mortgage backed securities — 3,367 — 3,367 Asset backed securities — 1,481 68 1,549 State and municipal obligations — 2,358 — 2,358 U.S. government and agency obligations 8 — — 8 Foreign government bonds and obligations — 261 — 261 Common stocks 8 8 1 17 Common stocks at NAV 5 (1) Total Available-for-Sale securities 16 29,050 1,648 30,719 Trading securities 9 16 — 25 Separate account assets at NAV 80,210 (1) Investments segregated for regulatory purposes 425 — — 425 Other assets: Interest rate derivative contracts — 1,778 — 1,778 Equity derivative contracts 43 1,531 — 1,574 Credit derivative contracts — 1 — 1 Foreign exchange derivative contracts 13 80 — 93 Total other assets 56 3,390 — 3,446 Total assets at fair value $ 536 $ 34,252 $ 1,648 $ 116,651 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 464 464 GMWB and GMAB embedded derivatives — — 614 614 (4) Total policyholder account balances, future policy benefits and claims — 5 1,078 1,083 (5) Customer deposits — 8 — 8 Other liabilities: Interest rate derivative contracts 2 987 — 989 Equity derivative contracts 3 2,132 — 2,135 Foreign exchange derivative contracts 2 45 — 47 Other 3 8 13 24 Total other liabilities 10 3,172 13 3,195 Total liabilities at fair value $ 10 $ 3,185 $ 1,091 $ 4,286 (1) Amounts are comprised of certain financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. (2) The fair value of the GMWB and GMAB embedded derivatives included $443 million of individual contracts in a liability position and $492 million of individual contracts in an asset position at December 31, 2017. (3) The Company’s adjustment for nonperformance risk resulted in a $(399) million cumulative increase (decrease) to the embedded derivatives at December 31, 2017. (4) The fair value of the GMWB and GMAB embedded derivatives included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position at December 31, 2016. (5) The Company’s adjustment for nonperformance risk resulted in a $(498) million cumulative increase (decrease) to the embedded derivatives at December 31, 2016. |
Summary of changes in level 3 assets and liabilities measured at fair value on a recurring basis [Table Text Block] | 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 Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Common Stocks Total (in millions) Balance, January 1, 2017 $ 1,311 $ 268 $ — $ 68 $ 1 $ 1,648 Total gains (losses) included in: Net income — — — — 1 1 (1) Other comprehensive income (loss) (8 ) 1 — (4 ) — (11 ) Purchases 138 132 65 64 — 399 Sales — — — — (1 ) (1 ) Settlements (302 ) (43 ) — (29 ) — (374 ) Transfers into Level 3 — 20 — 27 8 55 Transfers out of Level 3 — (223 ) (65 ) (119 ) (9 ) (416 ) Balance, December 31, 2017 $ 1,139 $ 155 $ — $ 7 $ — $ 1,301 Changes in unrealized gains (losses) relating to assets held at December 31, 2017 $ — $ — $ — $ (1 ) $ — $ (1 ) (1) Policyholder Account Balances, Other Liabilities IUL GMWB Total (in millions) Balance, January 1, 2017 $ 464 $ 614 $ 1,078 $ 13 Total (gains) losses included in: Net income 87 (2) (977 ) (3) (890 ) 2 (4) Issues 92 326 418 13 Settlements (42 ) (12 ) (54 ) — Balance, December 31, 2017 $ 601 $ (49 ) $ 552 $ 28 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2017 $ 87 (2) $ (946 ) (3) $ (859 ) $ — Available-for-Sale Securities Other Derivative Contracts Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Common Stocks Total (in millions) Balance, January 1, 2016 $ 1,425 $ 218 $ 3 $ 162 $ — $ 1,808 $ — Cumulative effect of change in accounting policies — — — 21 — 21 — Total gains (losses) included in: Net income (1 ) 1 — (1 ) — (1 ) (1) (2 ) (3) Other comprehensive income (loss) — (1 ) — (4 ) — (5 ) — Purchases 54 209 42 58 — 363 2 Settlements (168 ) (67 ) (3 ) (2 ) — (240 ) — Transfers into Level 3 1 — — 12 1 14 — Transfers out of Level 3 — (92 ) (42 ) (178 ) — (312 ) — Balance, December 31, 2016 $ 1,311 $ 268 $ — $ 68 $ 1 $ 1,648 $ — Changes in unrealized gains (losses) relating to assets held at December 31, 2016 $ 1 $ 1 $ — $ (1 ) $ — $ 1 (1) $ (2 ) (3) Policyholder Account Balances, IUL GMWB Total Other Liabilities (in millions) Balance, January 1, 2016 $ 364 $ 851 $ 1,215 $ — Total (gains) losses included in: Net income 13 (2) (511 ) (3) (498 ) — Issues 115 295 410 13 Settlements (28 ) (21 ) (49 ) — Balance, December 31, 2016 $ 464 $ 614 $ 1,078 $ 13 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2016 $ 13 (2) $ (448 ) (3) $ (435 ) $ — Available-for-Sale Securities Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Common Stocks Total Trading Securities (in millions) Balance, January 1, 2015 $ 1,518 $ 206 $ 91 $ 169 $ 2 $ 1,986 $ 1 Total gains (losses) included in: Net income (2 ) — — 1 — (1 ) (1) (1 ) (1) Other comprehensive income (loss) (21 ) (2 ) — (2 ) — (25 ) — Purchases 189 334 41 72 — 636 — Settlements (248 ) (55 ) (7 ) (22 ) — (332 ) — Transfers into Level 3 — — 6 14 — 20 — Transfers out of Level 3 (11 ) (265 ) (128 ) (70 ) (2 ) (476 ) — Balance, December 31, 2015 $ 1,425 $ 218 $ 3 $ 162 $ — $ 1,808 $ — Changes in unrealized gains (losses) relating to assets held at December 31, 2015 $ (2 ) $ — $ — $ 1 $ — $ (1 ) (1) $ — Policyholder Account Balances, IUL GMWB Total (in millions) Balance, January 1, 2015 $ 242 $ 479 $ 721 Total (gains) losses included in: Net income 27 (2) 105 (3) 132 Issues 114 271 385 Settlements (19 ) (4 ) (23 ) Balance, December 31, 2015 $ 364 $ 851 $ 1,215 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2015 $ 27 (2) $ 127 (3) $ 154 (1) Included in net investment income in the Consolidated Statements of Operations. (2) Included in interest credited to fixed accounts in the Consolidated Statements of Operations. (3) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. (4) Included in general and administrative expense in the Consolidated Statements of Operations. |
Significant unobservable inputs used in the fair value measurements [Table Text Block] | The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities: December 31, 2017 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 1,138 Discounted cash flow Yield/spread to U.S. Treasuries 0.7 % – 2.3% 1.1 % Asset backed securities $ 7 Discounted cash flow Annual short-term default rate 3.8% Annual long-term default rate 2.5% – 3.0% 2.7 % Discount rate 10.5% Constant prepayment rate 5.0 % – 10.0% 9.9 % Loss recovery 36.4 % – 63.6% 63.2 % IUL embedded derivatives $ 601 Discounted cash flow Nonperformance risk (1) 71 bps GMWB and GMAB embedded derivatives $ (49 ) Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0 % – 42.0% Surrender rate 0.1 % – 74.7% Market volatility (3) 3.7 % – 16.1% Nonperformance risk (1) 71 bps Contingent consideration liability $ 28 Discounted cash flow Discount rate 9.0% December 31, 2016 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 1,308 Discounted cash flow Yield/spread to U.S. Treasuries 0.9 % – 2.5% 1.3% Asset backed securities $ 14 Discounted cash flow Annual short-term default rate 4.8% Annual long-term default rate 2.5% Discount rate 13.5% Constant prepayment rate 5.0 % – 10.0% 9.9% Loss recovery 36.4 % – 63.6% 62.8% IUL embedded derivatives $ 464 Discounted cash flow Nonperformance risk (1) 82 bps GMWB and GMAB embedded derivatives $ 614 Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0 % – 75.6% Surrender rate 0.1 % – 66.4% Market volatility (3) 5.3 % – 21.2% Nonperformance risk (1) 82 bps Contingent consideration liabilities $ 13 Discounted cash flow Discount rate 9.0% (1) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. (2) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. (3) Market volatility is implied volatility of fund of funds and managed volatility funds. |
Schedule of carrying value and the estimated fair value of financial instruments that are not reported at fair value [Table Text Block] | The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value: December 31, 2017 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,756 $ — $ — $ 2,752 $ 2,752 Policy and certificate loans 845 — — 801 801 Receivables 1,537 103 946 487 1,536 Restricted and segregated cash 2,524 2,524 — — 2,524 Other investments and assets 520 — 472 49 521 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 10,246 $ — $ — $ 10,755 $ 10,755 Investment certificate reserves 6,390 — — 6,374 6,374 Brokerage customer deposits 3,915 3,915 — — 3,915 Separate account liabilities at NAV 5,177 5,177 (1) Debt and other liabilities 3,290 118 3,180 119 3,417 December 31, 2016 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,986 $ — $ — $ 2,972 $ 2,972 Policy and certificate loans 831 — 1 807 808 Receivables (2) 1,407 127 870 416 1,413 Restricted and segregated cash 2,905 2,905 — — 2,905 Other investments and assets 508 — 449 61 510 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 10,906 $ — $ — $ 11,417 $ 11,417 Investment certificate reserves 5,927 — — 5,914 5,914 Brokerage customer deposits 4,112 4,112 — — 4,112 Separate account liabilities at NAV 4,253 4,253 (1) Debt and other liabilities 3,371 146 3,176 169 3,491 (1) Amounts are comprised of certain financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. See Note 3 for further information. (2) In the third quarter of 2017, the Company corrected the classification of the fair value of advisor loans, net from Level 2 to Level 3 as the valuation includes a significant unobservable input. The fair value levels at December 31, 2016 have been revised to reflect this change. The fair value of advisor loans, net was $400 million at December 31, 2016 . |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Decrease to other comprehensive income related to deferred taxes on currency translation adjustments [Member] | |||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |||
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 87 | ||
Operating Income (Loss) [Member] | |||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |||
Quantifying Misstatement in Current Year Financial Statements, Amount | 12 | $ 10 | |
DAC [Member] | |||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |||
Quantifying Misstatement in Current Year Financial Statements, Amount | 8 | ||
Benefits, Claims, Losses and Settlement Expenses [Member] | |||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |||
Quantifying Misstatement in Current Year Financial Statements, Amount | 4 | ||
Income Tax Provision [Member] | |||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |||
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 20 | ||
LTC [Member] | |||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |||
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 29 | ||
Assets Held under Capital Leases [Member] | |||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |||
Quantifying Misstatement in Current Year Financial Statements, Amount | 70 | ||
Capital Lease Obligations [Member] | |||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |||
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 60 |
Summary of Significant Accoun62
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Principles of Consolidation | |||
Maximum percentage of voting interest required to be held to be accounted for, under the cost method | 20.00% | ||
Financing Receivables | |||
Nonaccrual status period for loans | 90 days | ||
Land, Buildings, Equipment and Software | |||
Land, buildings, equipment and software, net of accumulated depreciation | $ 626 | $ 607 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 1,900 | 1,800 | |
Depreciation and amortization expense for the year | $ 141 | $ 149 | $ 150 |
Minimum [Member] | |||
Principles of Consolidation | |||
Percentage of voting interest required to be held to be accounted for under the equity method | 20.00% | ||
Voting interest required for consolidation | 50.00% | ||
Land, Buildings, Equipment and Software | |||
Amortization periods | 3 years | ||
Maximum [Member] | |||
Principles of Consolidation | |||
Percentage of voting interest required to be held to be accounted for under the equity method | 50.00% | ||
Land, Buildings, Equipment and Software | |||
Amortization periods | 39 years |
Cash Flows Reclassification - R
Cash Flows Reclassification - Restricted Cash ASU 2016-18 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||
Excess Tax Benefit from Share-based Compensation, Operating Activities | $ 70 | $ (14) | $ (81) |
Adjustments for New Accounting Pronouncement [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Restricted cash | $ 2,500 | 2,900 | |
Impact in restricted cash for operating activities | $ 358 | $ (66) |
Recent Accounting Pronounceme64
Recent Accounting Pronouncements Stock Compensation ASU 2016-09 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation [Abstract] | |||
Net excess tax benefit recognized in income tax provisions | $ 70 | ||
Excess Tax Benefit from Share-based Compensation, Operating Activities | $ 70 | $ (14) | $ (81) |
Recent Accounting Pronounceme65
Recent Accounting Pronouncements Consolidation (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | $ 147,470 | $ 139,821 | ||
Liabilities | 141,472 | 133,529 | ||
Total equity | $ 5,998 | 6,292 | $ 8,379 | $ 9,279 |
Consolidated investment entities [Member] | Adjustments for New Accounting Pronouncement [Member] | ||||
Assets | (6,200) | |||
Liabilities | (4,900) | |||
Total equity | $ (1,300) |
Recent Accounting Pronounceme66
Recent Accounting Pronouncements Revenue from Contracts with Customers ASU 2014-09 (Details) - Accounting Standards Update 2014-09 [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Minimum [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 95 |
Maximum [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 120 |
Variable Interest Entities (Ass
Variable Interest Entities (Asset & Liability Balances) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Nonconsolidated VIEs [Member] | |||
Liabilities | |||
Obligation to provide financial support to VIEs | $ 0 | ||
Nonconsolidated VIEs [Member] | Investment in non-consolidated CLOs [Member] | |||
Liabilities | |||
Carrying value of nonconsolidated VIEs, assets | 6 | $ 9 | |
Nonconsolidated VIEs [Member] | Property Funds [Member] | |||
Liabilities | |||
Carrying value of nonconsolidated VIEs, assets | 24 | 26 | |
Nonconsolidated VIEs [Member] | Sponsored hedge funds and private equity funds [Member] | |||
Liabilities | |||
Carrying value of nonconsolidated VIEs, assets | 7 | 13 | |
Nonconsolidated VIEs [Member] | International Series Fund [Member] | |||
Liabilities | |||
Carrying value of nonconsolidated VIEs, assets | 25 | 33 | |
Nonconsolidated VIEs [Member] | Affordable housing partnerships [Member] | |||
Liabilities | |||
Carrying value of nonconsolidated VIEs, assets | 408 | 482 | |
Carrying value of nonconsolidated VIEs, liabilities | 97 | 135 | |
Consolidated investment entities [Member] | |||
Liabilities | |||
Debt | [1] | 2,208 | 2,319 |
Other liabilities | 63 | 95 | |
CLO debt valued using DCF model | 2,200 | 2,300 | |
Consolidated investment entities [Member] | Recurring basis [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 2,131 | 2,254 | |
Receivables | 25 | 11 | |
Total assets at fair value | 2,156 | 2,265 | |
Liabilities | |||
Debt | [2] | 2,208 | 2,319 |
Other liabilities | 63 | 95 | |
Total liabilities at fair value | 2,271 | 2,414 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Corporate Debt Securities [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 27 | 19 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Common stocks [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 30 | 33 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Other investments [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 5 | 4 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Syndicated loans [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 2,069 | 2,198 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Level 1 [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 23 | 26 | |
Total assets at fair value | 23 | 26 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Level 1 [Member] | Common stocks [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 18 | 22 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Level 1 [Member] | Other investments [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 5 | 4 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Level 2 [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 1,924 | 1,969 | |
Receivables | 25 | 11 | |
Total assets at fair value | 1,949 | 1,980 | |
Liabilities | |||
Debt | [2] | 2,208 | 2,319 |
Other liabilities | 63 | 95 | |
Total liabilities at fair value | 2,271 | 2,414 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Level 2 [Member] | Corporate Debt Securities [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 27 | 19 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Level 2 [Member] | Common stocks [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 8 | 6 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Level 2 [Member] | Syndicated loans [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 1,889 | 1,944 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Level 3 [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 184 | 259 | |
Total assets at fair value | 184 | 259 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Level 3 [Member] | Common stocks [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 4 | 5 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Level 3 [Member] | Syndicated loans [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | $ 180 | $ 254 | |
[1] | The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.2 billion and $2.3 billion as of December 31, 2017 and December 31, 2016, respectively. | ||
[2] | The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.2 billion and $2.3 billion as of December 31, 2017 and 2016, respectively. |
Variable Interest Entities (Cha
Variable Interest Entities (Change in Level 3 Assets and Liabilities) (Details 2) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Roll Forward] | ||||
Transfers from Level 1 to Level 2, Assets | $ 0 | $ 0 | $ 0 | |
Transfers from Level 2 to Level 1, Assets | 0 | 0 | 0 | |
Transfers from Level 1 to Level 2, Liabilities | 0 | 0 | 0 | |
Transfers from Level 2 to Level 1, Liabilities | 0 | 0 | 0 | |
Consolidated investment entities [Member] | ||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Roll Forward] | ||||
Transfers from Level 1 to Level 2, Assets | 0 | 0 | 0 | |
Transfers from Level 2 to Level 1, Assets | 0 | 0 | 0 | |
Transfers from Level 1 to Level 2, Liabilities | 0 | 0 | 0 | |
Transfers from Level 2 to Level 1, Liabilities | 0 | 0 | 0 | |
Consolidated investment entities [Member] | Corporate Debt Securities [Member] | ||||
Summary of changes in Level 3 assets held by consolidated investment entities | ||||
Balance, at the beginning of the period | 0 | |||
Sales | (2) | |||
Transfers into Level 3 | 2 | |||
Balance, at the end of the period | 0 | 0 | ||
Consolidated investment entities [Member] | Common stocks [Member] | ||||
Summary of changes in Level 3 assets held by consolidated investment entities | ||||
Balance, at the beginning of the period | 5 | 3 | 7 | |
Total gains (losses) included in net income | [1] | (1) | 2 | (1) |
Purchases | 3 | 1 | ||
Sales | (2) | |||
Transfers into Level 3 | 7 | 3 | 7 | |
Transfers out of Level 3 | (8) | (2) | (10) | |
Balance, at the end of the period | 4 | 5 | 3 | |
Changes in unrealized gains (losses) included in income relating to assets held at end of period | [1] | (1) | 1 | |
Consolidated investment entities [Member] | Syndicated loans [Member] | ||||
Summary of changes in Level 3 assets held by consolidated investment entities | ||||
Balance, at the beginning of the period | 254 | 529 | 484 | |
Total gains (losses) included in net income | [1] | 7 | (24) | |
Purchases | 146 | 145 | 303 | |
Sales | (28) | (24) | (36) | |
Settlements | (70) | (69) | (161) | |
Transfers into Level 3 | 266 | 405 | 776 | |
Transfers out of Level 3 | (388) | (435) | (813) | |
Balance, at the end of the period | 180 | 254 | 529 | |
Changes in unrealized gains (losses) included in income relating to assets held at end of period | [1] | (1) | 3 | (19) |
Consolidated investment entities [Member] | Other assets [Member] | ||||
Summary of changes in Level 3 assets held by consolidated investment entities | ||||
Balance, at the beginning of the period | 0 | 2,065 | 1,935 | |
Total gains (losses) included in net income | [2] | 1 | 170 | |
Total gains (losses) included in other comprehensive income (loss) | (154) | |||
Purchases | 638 | |||
Sales | (1) | (524) | ||
Balance, at the end of the period | 0 | 2,065 | ||
Changes in unrealized gains (losses) included in income relating to assets held at end of period | [2] | 20 | ||
Consolidated investment entities [Member] | CLO Debt [Member] | ||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Roll Forward] | ||||
Balance, at the beginning of the period | $ 0 | (6,630) | (6,030) | |
Total gains (losses) included in net income | [1] | 215 | ||
Issues | (1,267) | |||
Settlements | 452 | |||
Balance, at the end of the period | 0 | (6,630) | ||
Changes in unrealized gains/ (losses) included in income relating to liabilities held at end of period | [1] | 219 | ||
Consolidated investment entities [Member] | Adjustments for New Accounting Pronouncement [Member] | Common stocks [Member] | ||||
Summary of changes in Level 3 assets held by consolidated investment entities | ||||
Balance, at the beginning of the period | [3] | (2) | ||
Balance, at the end of the period | [3] | (2) | ||
Consolidated investment entities [Member] | Adjustments for New Accounting Pronouncement [Member] | Syndicated loans [Member] | ||||
Summary of changes in Level 3 assets held by consolidated investment entities | ||||
Balance, at the beginning of the period | [3] | (304) | ||
Balance, at the end of the period | [3] | (304) | ||
Consolidated investment entities [Member] | Adjustments for New Accounting Pronouncement [Member] | Other assets [Member] | ||||
Summary of changes in Level 3 assets held by consolidated investment entities | ||||
Balance, at the beginning of the period | [3] | (2,065) | ||
Balance, at the end of the period | [3] | (2,065) | ||
Consolidated investment entities [Member] | Adjustments for New Accounting Pronouncement [Member] | CLO Debt [Member] | ||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Roll Forward] | ||||
Balance, at the beginning of the period | [3] | (6,630) | ||
Balance, at the end of the period | [3] | (6,630) | ||
Consolidated investment entities [Member] | Adjusted for change in accounting policies [Member] | Common stocks [Member] | ||||
Summary of changes in Level 3 assets held by consolidated investment entities | ||||
Balance, at the beginning of the period | 1 | |||
Balance, at the end of the period | 1 | |||
Consolidated investment entities [Member] | Adjusted for change in accounting policies [Member] | Syndicated loans [Member] | ||||
Summary of changes in Level 3 assets held by consolidated investment entities | ||||
Balance, at the beginning of the period | 225 | |||
Balance, at the end of the period | 225 | |||
Consolidated investment entities [Member] | Adjusted for change in accounting policies [Member] | Other assets [Member] | ||||
Summary of changes in Level 3 assets held by consolidated investment entities | ||||
Balance, at the beginning of the period | 0 | |||
Balance, at the end of the period | 0 | |||
Consolidated investment entities [Member] | Adjusted for change in accounting policies [Member] | CLO Debt [Member] | ||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Roll Forward] | ||||
Balance, at the beginning of the period | $ 0 | |||
Balance, at the end of the period | $ 0 | |||
[1] | Included in net investment income in the Consolidated Statements of Operations. | |||
[2] | Included in other revenues in the Consolidated Statements of Operations. | |||
[3] | The cumulative effect of change in accounting policies includes the adoption impact of ASU 2015-02 and ASU 2014-13 – Consolidation: Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity (“ASU 2014-13”). |
Variable Interest Entities (FV
Variable Interest Entities (FV Option for Consolidated CLOs) (Details 3) - Consolidated investment entities [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Fair value and unpaid principal balance of assets and liabilities carried at fair value under the fair value option | ||||
CLO debt valued using DCF model | $ 2,200 | $ 2,300 | ||
Syndicated loans [Abstract] | ||||
Unpaid principal balance | 2,140 | 2,281 | ||
Excess estimated unpaid principal over fair value | (71) | (83) | ||
Fair value | 2,069 | 2,198 | ||
Fair value of loans more than 90 days past due | 24 | 8 | ||
Fair value of loans in nonaccrual status | 24 | 8 | ||
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both | 35 | 34 | ||
Debt [Abstract] | ||||
Unpaid principal balance | 2,342 | 2,459 | ||
Excess estimated unpaid principal over fair value | (134) | (140) | ||
Fair value | [1] | 2,208 | 2,319 | |
Net investment income [Member] | ||||
Fair value and unpaid principal balance of assets and liabilities carried at fair value under the fair value option | ||||
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 options was elected | $ (5) | $ (38) | $ (35) | |
[1] | The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.2 billion and $2.3 billion as of December 31, 2017 and December 31, 2016, respectively. |
Variable Interest Entities (Deb
Variable Interest Entities (Debt Outstanding) (Details 4) - Consolidated investment entities [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt and stated interest rates | ||
Long-term debt | $ 2,208 | $ 2,319 |
Minimum [Member] | ||
Debt and stated interest rates | ||
Stated interest rate according to terms of CDO structure | 0.00% | |
Maximum [Member] | ||
Debt and stated interest rates | ||
Stated interest rate according to terms of CDO structure | 7.40% | |
CLO [Member] | ||
Debt and stated interest rates | ||
Long-term debt | $ 2,208 | $ 2,319 |
Weighted Average Interest Rate (as a percent) | 2.80% | 2.50% |
Variable Interest Entities (Fut
Variable Interest Entities (Future Maturities of Debt) (Details 5) - Consolidated investment entities [Member] $ in Millions | Dec. 31, 2017USD ($) |
Future Debt Maturities [Line Items] | |
2,018 | $ 0 |
2,019 | 54 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
Thereafter | 2,288 |
Total future maturities | $ 2,342 |
Investments (Holdings info) (De
Investments (Holdings info) (Details) - Ameriprise Financial [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Investments | $ 35,925 | $ 35,834 |
Available-for-Sale securities, at fair value [Member] | ||
Investments | 30,927 | 30,719 |
Mortgage loans, net [Member] | ||
Investments | 2,756 | 2,986 |
Policy and certificate loans [Member] | ||
Investments | 845 | 831 |
Other investments [Member] | ||
Investments | $ 1,397 | $ 1,298 |
Investments (Net investment inc
Investments (Net investment income summary) (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Investment income on fixed maturities | $ 1,349 | $ 1,368 | $ 1,403 |
Net realized gains | 46 | 6 | 4 |
Affordable housing partnerships | (100) | (44) | (18) |
Other | 108 | 91 | 68 |
Consolidated investment entities | 106 | 155 | 231 |
Total net investment income | $ 1,509 | $ 1,576 | $ 1,688 |
Investments (AFS by Type) (Deta
Investments (AFS by Type) (Details 3) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | ||
Investments | ||||
Fair value of investment securities pledged as collateral | $ 1,700 | $ 1,600 | ||
Fair value of investment securities pledged as collateral that may be repledged by the counterparty | 803 | 473 | ||
Ameriprise Financial [Member] | ||||
Investments | ||||
Amortized cost | 29,492 | 29,472 | ||
Gross unrealized gains | 1,561 | 1,472 | ||
Gross unrealized losses | (126) | (225) | ||
Fair value | 30,927 | 30,719 | ||
Noncredit OTTI | [1] | 1 | 8 | |
Corporate Debt Securities [Member] | Ameriprise Financial [Member] | ||||
Investments | ||||
Amortized cost | 13,976 | 15,231 | ||
Gross unrealized gains | 1,131 | 1,065 | ||
Gross unrealized losses | (32) | (60) | ||
Fair value | 15,075 | 16,236 | ||
Noncredit OTTI | [1] | 0 | ||
Residential mortgage backed securities [Member] | Ameriprise Financial [Member] | ||||
Investments | ||||
Amortized cost | 6,585 | 6,899 | ||
Gross unrealized gains | 63 | 86 | ||
Gross unrealized losses | (37) | (67) | ||
Fair value | 6,611 | 6,918 | ||
Noncredit OTTI | [1] | 0 | (3) | |
Commercial mortgage backed securities [Member] | Ameriprise Financial [Member] | ||||
Investments | ||||
Amortized cost | 4,362 | 3,347 | ||
Gross unrealized gains | 48 | 59 | ||
Gross unrealized losses | (36) | (39) | ||
Fair value | 4,374 | 3,367 | ||
Asset backed securities [Member] | Ameriprise Financial [Member] | ||||
Investments | ||||
Amortized cost | 1,549 | 1,532 | ||
Gross unrealized gains | 36 | 33 | ||
Gross unrealized losses | (5) | (16) | ||
Fair value | 1,580 | 1,549 | ||
Noncredit OTTI | [1] | 1 | 5 | |
State and municipal obligations [Member] | Ameriprise Financial [Member] | ||||
Investments | ||||
Amortized cost | 2,215 | 2,195 | ||
Gross unrealized gains | 259 | 198 | ||
Gross unrealized losses | (11) | (35) | ||
Fair value | 2,463 | 2,358 | ||
U.S. government and agencies obligations [Member] | Ameriprise Financial [Member] | ||||
Investments | ||||
Amortized cost | 502 | 7 | ||
Gross unrealized gains | 1 | 1 | ||
Fair value | 503 | 8 | ||
Foreign government bonds and obligations [Member] | Ameriprise Financial [Member] | ||||
Investments | ||||
Amortized cost | 298 | 251 | ||
Gross unrealized gains | 20 | 17 | ||
Gross unrealized losses | (4) | (7) | ||
Fair value | 314 | 261 | ||
Common stocks [Member] | Ameriprise Financial [Member] | ||||
Investments | ||||
Amortized cost | 5 | 10 | ||
Gross unrealized gains | 3 | 13 | ||
Gross unrealized losses | (1) | (1) | ||
Fair value | 7 | 22 | ||
Noncredit OTTI | $ 0 | [1] | $ 6 | |
[1] | Represents the amount of other-than-temporary impairment (“OTTI”) losses in AOCI. Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period. |
Investments (Rating info) (Deta
Investments (Rating info) (Details 4) $ in Millions | Dec. 31, 2017USD ($)item | Dec. 31, 2016USD ($) |
Investments | ||
Fixed maturity securities as percentage of the entity's total investments | 86.00% | 86.00% |
Number of holdings other than GNMA, FNMA, and FHLMC having greater than 10% of total equity | item | 0 | |
Holdings of Issuer Other than GNMA, FNMA and FHLMC as Percentage of Shareholders Equity Maximum | 10.00% | |
Ameriprise Financial [Member] | ||
Investments | ||
Amount of securities internally rated | $ 1,000 | $ 1,100 |
Percentage of GNMA, FNMA and FHLMC securities rated AAA | 37.00% | 47.00% |
Ameriprise Financial [Member] | AAA [Member] | ||
Investments | ||
Amortized cost | $ 11,293 | $ 9,252 |
Fair value | $ 11,331 | $ 9,305 |
Percent of total fair value | 37.00% | 31.00% |
Ameriprise Financial [Member] | AA [Member] | ||
Investments | ||
Amortized cost | $ 1,898 | $ 1,729 |
Fair value | $ 2,114 | $ 1,906 |
Percent of total fair value | 7.00% | 6.00% |
Ameriprise Financial [Member] | A [Member] | ||
Investments | ||
Amortized cost | $ 4,760 | $ 5,157 |
Fair value | $ 5,243 | $ 5,567 |
Percent of total fair value | 17.00% | 18.00% |
Ameriprise Financial [Member] | BBB [Member] | ||
Investments | ||
Amortized cost | $ 10,317 | $ 11,739 |
Fair value | $ 10,989 | $ 12,340 |
Percent of total fair value | 35.00% | 40.00% |
Ameriprise Financial [Member] | Below investment grade [Member] | ||
Investments | ||
Amortized cost | $ 1,219 | $ 1,585 |
Fair value | $ 1,243 | $ 1,579 |
Percent of total fair value | 4.00% | 5.00% |
Ameriprise Financial [Member] | Below investment grade [Member] | CLO [Member] | ||
Investments | ||
Amortized cost | $ 6 | $ 9 |
Fair value | 7 | 14 |
Ameriprise Financial [Member] | Fixed Maturities [Member] | ||
Investments | ||
Amortized cost | 29,487 | 29,462 |
Fair value | $ 30,920 | $ 30,697 |
Percent of total fair value | 100.00% | 100.00% |
Investments (EITF info) (Detail
Investments (EITF info) (Details 5) - Ameriprise Financial [Member] $ in Millions | Dec. 31, 2017USD ($)Positions | Dec. 31, 2016USD ($)Positions |
Number of securities | ||
Less than 12 months | Positions | 434 | 650 |
12 months or more | Positions | 337 | 268 |
Total | Positions | 771 | 918 |
Fair Value | ||
Less than 12 months | $ 5,312 | $ 7,496 |
12 months or more | 3,381 | 2,142 |
Total | 8,693 | 9,638 |
Unrealized losses | ||
Less than 12 months | (34) | (129) |
12 months or more | (92) | (96) |
Total | $ (126) | $ (225) |
Corporate Debt Securities [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 150 | 187 |
12 months or more | Positions | 70 | 38 |
Total | Positions | 220 | 225 |
Fair Value | ||
Less than 12 months | $ 1,791 | $ 2,452 |
12 months or more | 740 | 377 |
Total | 2,531 | 2,829 |
Unrealized losses | ||
Less than 12 months | (8) | (33) |
12 months or more | (24) | (27) |
Total | $ (32) | $ (60) |
Residential mortgage backed securities [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 102 | 127 |
12 months or more | Positions | 130 | 177 |
Total | Positions | 232 | 304 |
Fair Value | ||
Less than 12 months | $ 1,772 | $ 2,533 |
12 months or more | 1,467 | 1,290 |
Total | 3,239 | 3,823 |
Unrealized losses | ||
Less than 12 months | (11) | (33) |
12 months or more | (26) | (34) |
Total | $ (37) | $ (67) |
Commercial mortgage backed securities [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 67 | 100 |
12 months or more | Positions | 58 | 5 |
Total | Positions | 125 | 105 |
Fair Value | ||
Less than 12 months | $ 1,178 | $ 1,583 |
12 months or more | 783 | 43 |
Total | 1,961 | 1,626 |
Unrealized losses | ||
Less than 12 months | (12) | (39) |
12 months or more | (24) | 0 |
Total | $ (36) | $ (39) |
Asset backed securities [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 36 | 48 |
12 months or more | Positions | 26 | 27 |
Total | Positions | 62 | 75 |
Fair Value | ||
Less than 12 months | $ 424 | $ 524 |
12 months or more | 187 | 298 |
Total | 611 | 822 |
Unrealized losses | ||
Less than 12 months | (2) | (9) |
12 months or more | (3) | (7) |
Total | $ (5) | $ (16) |
State and municipal obligations [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 76 | 181 |
12 months or more | Positions | 34 | 3 |
Total | Positions | 110 | 184 |
Fair Value | ||
Less than 12 months | $ 141 | $ 374 |
12 months or more | 180 | 110 |
Total | 321 | 484 |
Unrealized losses | ||
Less than 12 months | (1) | (14) |
12 months or more | (10) | (21) |
Total | $ (11) | $ (35) |
Foreign government bonds and obligations [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 3 | 7 |
12 months or more | Positions | 15 | 15 |
Total | Positions | 18 | 22 |
Fair Value | ||
Less than 12 months | $ 6 | $ 30 |
12 months or more | 23 | 23 |
Total | 29 | 53 |
Unrealized losses | ||
Less than 12 months | 0 | (1) |
12 months or more | (4) | (6) |
Total | $ (4) | $ (7) |
Common stocks [Member] | ||
Number of securities | ||
12 months or more | Positions | 4 | 3 |
Total | Positions | 4 | 3 |
Fair Value | ||
12 months or more | $ 1 | $ 1 |
Total | 1 | 1 |
Unrealized losses | ||
12 months or more | (1) | (1) |
Total | $ (1) | $ (1) |
Investments (OTTI rollforward)
Investments (OTTI rollforward) (Details 6) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Rollforward of the cumulative amounts recognized in the Consolidated Statements of Income for other-than-temporary impairments related to credit losses on securities | |||
Beginning balance | $ 69 | $ 85 | $ 98 |
Credit losses for which an other-than-temporary impairment was not previously recognized | 0 | 1 | |
Credit losses for which an other-than-temporary impairment was previously recognized | 1 | 1 | 2 |
Reductions for securities sold during the period (realized) | (68) | (18) | (15) |
Ending balance | $ 2 | $ 69 | $ 85 |
Investments (Realized GL Info)
Investments (Realized GL Info) (Details 7) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments | |||
Other-than-temporary impairments | $ (1) | $ (1) | $ (8) |
Ameriprise Financial [Member] | |||
Investments | |||
Gross realized gains | 63 | 37 | 33 |
Gross realized losses | (7) | (13) | (19) |
Other-than-temporary impairments | (1) | (2) | (8) |
Total | $ 55 | $ 22 | $ 6 |
Investments (AFS contractual ma
Investments (AFS contractual maturity) (Details 8) - Ameriprise Financial [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Due within one year | $ 2,314 | |
Due after one year through five years | 6,819 | |
Due after five years through 10 years | 3,575 | |
Due after 10 years | 4,283 | |
Total having single maturity dates | 16,991 | |
Amortized cost | 29,492 | $ 29,472 |
Fair Value | ||
Due within one year | 2,333 | |
Due after one year through five years | 7,020 | |
Due after five years through 10 years | 3,701 | |
Due after 10 years | 5,301 | |
Total having single maturity dates | 18,355 | |
Fair value | 30,927 | 30,719 |
Residential mortgage backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 6,585 | |
Amortized cost | 6,585 | 6,899 |
Fair Value | ||
Without single maturity dates | 6,611 | |
Fair value | 6,611 | 6,918 |
Commercial mortgage backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 4,362 | |
Amortized cost | 4,362 | 3,347 |
Fair Value | ||
Without single maturity dates | 4,374 | |
Fair value | 4,374 | 3,367 |
Asset backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 1,549 | |
Amortized cost | 1,549 | 1,532 |
Fair Value | ||
Without single maturity dates | 1,580 | |
Fair value | 1,580 | 1,549 |
Common stocks [Member] | ||
Amortized Cost | ||
Without single maturity dates | 5 | |
Amortized cost | 5 | 10 |
Fair Value | ||
Without single maturity dates | 7 | |
Fair value | $ 7 | $ 22 |
Financing Receivables (Allowanc
Financing Receivables (Allowance for Loan Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Rollforward of the allowance for loan losses | |||
Beginning balance | $ 29 | $ 32 | $ 35 |
Charge-offs | (2) | (5) | (4) |
Provisions | (1) | 2 | 1 |
Ending balance | 26 | 29 | 32 |
Individually evaluated for impairment | 0 | 2 | 4 |
Collectively evaluated for impairment | 26 | 27 | 28 |
Recorded investment in financing receivables by impairment method and type of loan | |||
Individually evaluated for impairment | 17 | 12 | |
Collectively evaluated for impairment | 3,258 | 3,480 | |
Total | 3,275 | 3,492 | |
Recorded investment in financing receivables individually evaluated for impairment with no related allowance for loan losses | 17 | 7 | |
Consumer loans [Member] | |||
Recorded investment in financing receivables by impairment method and type of loan | |||
Total | 2 | 308 | |
Sales of financing receivables | 267 | 271 | |
Syndicated loans [Member] | |||
Recorded investment in financing receivables by impairment method and type of loan | |||
Total | 498 | 482 | |
Loans purchased | $ 200 | $ 92 | 162 |
Sales of financing receivables | $ 16 |
Financing Receivables (Credit Q
Financing Receivables (Credit Quality Information Text) (Details 2) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)item | Dec. 31, 2016USD ($)item | Dec. 31, 2015USD ($) | |
Credit quality information [Line Items] | |||
Total loans, gross | $ 3,275 | $ 3,492 | |
90 days or more past due | |||
Credit quality information [Line Items] | |||
Nonperforming loans | $ 19 | 15 | |
Commercial mortgage loans [Member] | |||
Credit quality information [Line Items] | |||
Percentage of commercial mortgage loans with highest risk rating | 0.00% | ||
Total loans, gross | $ 2,775 | 2,702 | |
Syndicated loans [Member] | |||
Credit quality information [Line Items] | |||
Loans purchased | 200 | 92 | $ 162 |
Sales of financing receivables | $ 16 | ||
Total loans, gross | 498 | 482 | |
Syndicated loans [Member] | 90 days or more past due | |||
Credit quality information [Line Items] | |||
Nonperforming loans | 5 | 1 | |
Loans to financial advisors [Member] | |||
Credit quality information [Line Items] | |||
Principal amounts outstanding for advisor loans | 509 | 426 | |
Allowance for loan losses related to loans to financial advisors | 23 | 18 | |
Principal amounts outstanding for advisor loans no longer affiliated with the Ameriprise Financial | 19 | 16 | |
Allowance for loan losses related to loans to financial advisors no longer affiliated with Ameriprise Financial | 12 | 10 | |
Consumer loans [Member] | |||
Credit quality information [Line Items] | |||
Sales of financing receivables | 267 | 271 | |
Total loans, gross | $ 2 | $ 308 | |
Percentage of residential mortgage loans below specific FICO score | 2.00% | ||
FICO score | item | 640 | 640 | |
LTV ratio | 90.00% | 90.00% | |
Percentage of loan portfolio represented by California | 52.00% | ||
Percentage of loan portfolio represented by Colorado | 18.00% | ||
Percentage of loan portfolio represented by Washington State | 13.00% | ||
Proceeds from sale of financing receivables | $ 252 | $ 271 | |
Loss on sale of financing receivables | $ 7 | $ 11 |
Financing Receivables (Credit82
Financing Receivables (Credit Quality Information Tables) (Details 3) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commercial mortgage loans | ||||
Total loans, gross | $ 3,275 | $ 3,492 | ||
Less: allowance for loan losses | 26 | 29 | $ 32 | $ 35 |
Residential and Consumer Portfolio Segment [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | 2 | 308 | ||
Proceeds from Sale of Loans and Leases Held-for-investment | 252 | 271 | ||
Financing Receivable, Significant Sales | 267 | 271 | ||
Loss on sale of financing receivables | 7 | 11 | ||
Commercial mortgage loans [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | 2,775 | 2,702 | ||
Less: allowance for loan losses | 19 | 21 | ||
Total loans, net | $ 2,756 | $ 2,681 | ||
Percentage of gross commercial mortgage loans | 100.00% | 100.00% | ||
Commercial mortgage loans [Member] | Apartments [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 566 | $ 504 | ||
Percentage of gross commercial mortgage loans | 20.00% | 19.00% | ||
Commercial mortgage loans [Member] | Hotel [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 40 | $ 42 | ||
Percentage of gross commercial mortgage loans | 1.00% | 1.00% | ||
Commercial mortgage loans [Member] | Industrial [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 476 | $ 446 | ||
Percentage of gross commercial mortgage loans | 17.00% | 17.00% | ||
Commercial mortgage loans [Member] | Mixed Use [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 44 | $ 49 | ||
Percentage of gross commercial mortgage loans | 2.00% | 2.00% | ||
Commercial mortgage loans [Member] | Office | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 492 | $ 489 | ||
Percentage of gross commercial mortgage loans | 18.00% | 18.00% | ||
Commercial mortgage loans [Member] | Retail | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 937 | $ 950 | ||
Percentage of gross commercial mortgage loans | 34.00% | 35.00% | ||
Commercial mortgage loans [Member] | Other | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 220 | $ 222 | ||
Percentage of gross commercial mortgage loans | 8.00% | 8.00% | ||
Commercial mortgage loans [Member] | East North Central [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 215 | $ 198 | ||
Percentage of gross commercial mortgage loans | 8.00% | 7.00% | ||
Commercial mortgage loans [Member] | East South Central [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 90 | $ 88 | ||
Percentage of gross commercial mortgage loans | 3.00% | 3.00% | ||
Commercial mortgage loans [Member] | Middle Atlantic [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 192 | $ 203 | ||
Percentage of gross commercial mortgage loans | 7.00% | 8.00% | ||
Commercial mortgage loans [Member] | Mountain [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 256 | $ 240 | ||
Percentage of gross commercial mortgage loans | 9.00% | 9.00% | ||
Commercial mortgage loans [Member] | New England [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 74 | $ 91 | ||
Percentage of gross commercial mortgage loans | 3.00% | 3.00% | ||
Commercial mortgage loans [Member] | Pacific [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 812 | $ 746 | ||
Percentage of gross commercial mortgage loans | 29.00% | 28.00% | ||
Commercial mortgage loans [Member] | South Atlantic [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 768 | $ 783 | ||
Percentage of gross commercial mortgage loans | 28.00% | 29.00% | ||
Commercial mortgage loans [Member] | West North Central [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 235 | $ 222 | ||
Percentage of gross commercial mortgage loans | 8.00% | 8.00% | ||
Commercial mortgage loans [Member] | West South Central [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 133 | $ 131 | ||
Percentage of gross commercial mortgage loans | 5.00% | 5.00% |
Financing Receivables (Troubled
Financing Receivables (Troubled Debt Restructurings) (Details 4) | Dec. 31, 2017USD ($) |
Receivables [Abstract] | |
Commitments to lend additional funds to borrowers for restructured loans | $ 0 |
Reinsurance (Product informatio
Reinsurance (Product information) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reinsurance Retention Policy [Line Items] | ||
Maximum amount of life policy risk retained by entity, net of reinsured amounts | $ 1,500,000 | |
Life Insurance [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Percentage of risk reinsured | 90.00% | |
Reinsurance | ||
Traditional Life and UL insurance in force, gross | $ 195,900,000,000 | $ 196,500,000,000 |
Traditional Life and UL insurance in force, reinsured | $ 142,400,000,000 | $ 142,400,000,000 |
IUL and VUL | ||
Reinsurance Retention Policy [Line Items] | ||
Percentage of risk reinsured | 50.00% | |
TrioSource UL insurance [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Percentage of risk reinsured | 50.00% | |
Single Life Insurance [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Maximum amount of life insurance risk retained by the entity | $ 10,000,000 | |
Flexible Premium Survivorship Life Insurance [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Maximum amount of life insurance risk retained by the entity | $ 10,000,000 | |
LTC [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Percentage of risk reinsured | 50.00% | |
DI [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Maximum amount of life insurance risk retained by the entity | $ 5,000 | |
Property and Casualty [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Maximum amount of life insurance risk retained by the entity | 1,000,000 | |
Maximum recovery per loss by entity | 5,000,000 | |
Catastrophe reinsurance loss recovery for first event by entity | 200,000,000 | |
Catastrophe reinsurance loss recovery for second event by entity | 180,000,000 | |
Maximum amount of auto and home catastrophe insurance risk retained by entity per event | $ 20,000,000 | |
Percentage of personal umbrella, loss ceded | 90.00% | |
Percentage Of Home Insurance Products Ceded | 90.00% | |
Maximum personal umbrella, recovery | $ 5,000,000 |
Reinsurance (Reinsurance on pre
Reinsurance (Reinsurance on premiums - long-duration contracts) (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effects of Reinsurance [Line Items] | |||
Total net earned premiums | $ 1,394 | $ 1,491 | $ 1,455 |
Traditional Long-Duration Products [Member] | |||
Effects of Reinsurance [Line Items] | |||
Direct premiums earned | 637 | 642 | 629 |
Ceded premiums earned | (227) | (225) | (223) |
Total net earned premiums | $ 410 | $ 417 | $ 406 |
Reinsurance (Reinsurance on p86
Reinsurance (Reinsurance on premiums - short-duration contracts) (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Premiums Earned, Net, by Business [Abstract] | |||
Total net earned premiums | $ 1,394 | $ 1,491 | $ 1,455 |
Property and casualty [Member] | |||
Premiums Written, Net [Abstract] | |||
Direct premiums written | 1,119 | 1,085 | 1,093 |
Ceded premiums written | (171) | (20) | (19) |
Total net written premiums | 948 | 1,065 | 1,074 |
Premiums Earned, Net, by Business [Abstract] | |||
Direct premiums earned | 1,107 | 1,094 | 1,068 |
Ceded premiums earned | (123) | (20) | (19) |
Total net earned premiums | $ 984 | $ 1,074 | $ 1,049 |
Reinsurance (Ceded and recovere
Reinsurance (Ceded and recovered amounts) (Details 4) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effects of Reinsurance [Line Items] | |||
Reinsurance recovered from reinsurers | $ 357 | $ 323 | $ 295 |
Reinsurance recoverables | 3,000 | 2,700 | |
Liabilities for assumed reinsurance arrangements | 509 | 529 | |
Non-Traditional Long-Duration Products [Member] | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance ceded offset within other revenues | 114 | 110 | $ 107 |
LTC [Member] | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance recoverable related to LTC risk ceded to Genworth | $ 2,300 | $ 2,000 |
Goodwill and Other Intangible88
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | ||||
Changes in the carrying amount of goodwill, by segment: | |||||
Goodwill, balance at the beginning of the period | $ 1,104 | $ 1,137 | |||
Goodwill, Acquired During Period | 49 | [1] | 19 | [2] | |
Foreign currency translation | 24 | (51) | |||
Purchase price adjustment | (2) | (1) | |||
Goodwill, balance at the end of the period | 1,175 | 1,104 | |||
Advice & Wealth Management [Member] | |||||
Changes in the carrying amount of goodwill, by segment: | |||||
Goodwill, balance at the beginning of the period | 252 | 252 | |||
Goodwill, Acquired During Period | [1] | 27 | |||
Goodwill, balance at the end of the period | 279 | 252 | |||
Asset Management [Member] | |||||
Changes in the carrying amount of goodwill, by segment: | |||||
Goodwill, balance at the beginning of the period | 761 | 794 | |||
Goodwill, Acquired During Period | 22 | [1] | 19 | [2] | |
Foreign currency translation | 24 | (51) | |||
Purchase price adjustment | (2) | (1) | |||
Goodwill, balance at the end of the period | 805 | 761 | |||
Annuities [Member] | |||||
Changes in the carrying amount of goodwill, by segment: | |||||
Goodwill, balance at the beginning of the period | 46 | 46 | |||
Goodwill, balance at the end of the period | 46 | 46 | |||
Protection [Member] | |||||
Changes in the carrying amount of goodwill, by segment: | |||||
Goodwill, balance at the beginning of the period | 45 | 45 | |||
Goodwill, balance at the end of the period | $ 45 | $ 45 | |||
[1] | Relates to the Company’s acquisitions of Investment Professionals, Inc. (“IPI”) and Lionstone Partners, LLC. | ||||
[2] | Relates to the Company’s acquisition of Emerging Global Advisors, LLC (“EGA”). |
Goodwill and Other Intangible89
Goodwill and Other Intangible Assets (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Definite-lived intangible assets | |||
Carrying amount of indefinite-lived intangible assets | $ 647 | $ 645 | |
Carrying amount of indefinite-lived intangible assets - trade names | 67 | 67 | |
Gross Carrying Amount | 572 | 498 | |
Accumulated Amortization | (434) | (390) | |
Net Carrying Amount | 138 | 108 | |
Definite-lived intangible assets acquired during the year, amount assigned | $ 54 | ||
Definite-lived intangible assets acquired during the year, weighted-average amortization period | 9 years | ||
Aggregate amortization expense for definite-lived intangible assets | $ 27 | 28 | $ 33 |
Estimated intangible amortization expense for next five years: | |||
2,018 | 29 | ||
2,019 | 26 | ||
2,020 | 20 | ||
2,021 | 17 | ||
2,022 | 15 | ||
Customer relationships [Member] | |||
Definite-lived intangible assets | |||
Gross Carrying Amount | 194 | 144 | |
Accumulated Amortization | (124) | (112) | |
Net Carrying Amount | 70 | 32 | |
Contracts [Member] | |||
Definite-lived intangible assets | |||
Gross Carrying Amount | 222 | 213 | |
Accumulated Amortization | (194) | (177) | |
Net Carrying Amount | 28 | 36 | |
Other [Member] | |||
Definite-lived intangible assets | |||
Gross Carrying Amount | 156 | 141 | |
Accumulated Amortization | (116) | (101) | |
Net Carrying Amount | $ 40 | $ 40 |
Deferred Acquisition Costs an90
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Balances of and changes in DAC | ||||
Benefit related to the write-off of the deferred reinsurance liability | $ (27) | |||
Expense related to the loss recognition on LTC business | 58 | |||
Ameriprise Financial [Member] | ||||
Balances of and changes in DAC | ||||
Balance at the beginning of the period | $ 2,648 | 2,730 | $ 2,613 | |
Capitalization of acquisition costs | 302 | 360 | [1] | 361 |
Amortization, excluding the impact of valuation assumptions review | (279) | (334) | (348) | |
Amortization, impact of valuation assumptions review | 12 | (81) | [2] | (6) |
Impact of change in net unrealized securities (gains) losses | (7) | (27) | 110 | |
Balance at the end of the period | 2,676 | 2,648 | 2,730 | |
Balances of and changes in DSIC | ||||
Balance at the beginning of the period | 302 | 335 | 362 | |
Capitalization of sales inducement costs | 4 | 5 | 4 | |
Amortization, excluding the impact of valuation assumptions review | (35) | (42) | (52) | |
Amortization, impact of valuation assumptions review | (1) | 4 | 1 | |
Impact of change in net unrealized (gains) losses | 6 | 0 | 20 | |
Balance at the end of the period | $ 276 | $ 302 | $ 335 | |
[1] | Includes a $27 million benefit related to the write-off of the deferred reinsurance liability in connection with the loss recognition on LTC business. The benefit was reported in Distribution expenses on the Consolidated Statements of Operations. | |||
[2] | Includes a $58 million expense related to the loss recognition on LTC business. |
Policyholder Account Balances91
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Policyholder account balances | $ 20,251 | $ 20,618 | |
Future policy benefits | 8,750 | 8,700 | |
Policy claims and other policyholders' funds | 903 | 884 | |
Policyholder account balances, future policy benefits and claims | 29,904 | 30,202 | |
Fixed annuities [Member] | |||
Policyholder account balances | [1] | 9,934 | 10,588 |
Variable annuity fixed sub-accounts [Member] | |||
Policyholder account balances | 5,166 | 5,211 | |
VUL/UL insurance [Member] | |||
Policyholder account balances | 3,047 | 3,007 | |
IUL insurance [Member] | |||
Policyholder account balances | 1,384 | 1,054 | |
Other life insurance [Member] | |||
Policyholder account balances | 720 | 758 | |
Variable annuity GMWB [Member] | |||
Future policy benefits | 463 | 1,017 | |
Variable annuity GMAB [Member] | |||
Future policy benefits | [2] | (80) | (24) |
Other annuity liabilities [Member] | |||
Future policy benefits | 78 | 66 | |
Fixed annuity life contingent liabilities [Member] | |||
Future policy benefits | 1,484 | 1,497 | |
Life and DI insurance [Member] | |||
Future policy benefits | 1,221 | 1,204 | |
LTC insurance [Member] | |||
Future policy benefits | 4,896 | 4,352 | |
VUL/UL and other life insurance additional liabilities [Member] | |||
Future policy benefits | $ 688 | $ 588 | |
[1] | Includes fixed deferred annuities, non-life contingent fixed payout annuities and indexed annuity host contracts. | ||
[2] | Includes the fair value of GMAB embedded derivatives that was a net asset as of both December 31, 2017 and 2016 reported as a contra liability. |
Policyholder Account Balances92
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Text) (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |||
Fixed annuities liabilities average interest rate | 4.09% | ||
Policy claims and other policyholders' funds | $ 903 | $ 884 | |
Change in liability for prior year incurred unpaid reported claims and claim adjustment expenses | $ 41 | 24 | $ 2 |
Minimum [Member] | |||
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |||
Fixed annuities liabilities interest rates | 2.71% | ||
Maximum [Member] | |||
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |||
Fixed annuities liabilities interest rates | 9.38% | ||
EIA host values [Member] | |||
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |||
Equity Indexed Annuity Contract Initial Term | 7 years | ||
Minimum interest rate guarantee | 3.00% | ||
Percentage of initial premium receiving interest guarantee | 90.00% | ||
LTC insurance [Member] | |||
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |||
Unpaid reported claims interest rate | 6.25% | ||
Change in liability for prior year incurred unpaid reported claims and claim adjustment expenses | $ 50 | ||
LTC insurance [Member] | Minimum [Member] | |||
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |||
Anticipated interest rate for future claims | 6.00% | ||
LTC insurance [Member] | Maximum [Member] | |||
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |||
Anticipated interest rate for future claims | 6.40% | ||
Life, DI and LTC insurance [Member] | |||
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |||
Policy claims and other policyholders' funds | $ 1,300 | 1,200 | |
Change in liability for prior year incurred unpaid reported claims and claim adjustment expenses | 6 | 60 | |
Property and Casualty [Member] | |||
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |||
Policy claims and other policyholders' funds | 722 | 683 | |
Change in liability for prior year incurred unpaid reported claims and claim adjustment expenses | 18 | $ (58) | |
Auto and Home [Member] | |||
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |||
Change in liability for prior year incurred unpaid reported claims and claim adjustment expenses | 20 | ||
Catastrophe Insurance [Member] | |||
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |||
Change in liability for prior year incurred unpaid reported claims and claim adjustment expenses | $ (9) | $ (2) | |
DI [Member] | |||
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |||
Unpaid reported claims interest rate | 4.50% | ||
DI [Member] | Minimum [Member] | |||
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |||
Anticipated interest rate for future claims | 3.75% | ||
DI [Member] | Maximum [Member] | |||
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |||
Anticipated interest rate for future claims | 7.50% | ||
Term and whole life insurance [Member] | Minimum [Member] | |||
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |||
Anticipated interest rate for future claims | 3.00% | ||
Term and whole life insurance [Member] | Maximum [Member] | |||
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |||
Anticipated interest rate for future claims | 10.00% |
Policyholder Account Balances93
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Separate Account Liabilities) (Details 3) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Separate Account Liabilities | ||
Variable annuity | $ 75,174 | $ 69,606 |
VUL insurance | 7,352 | 6,659 |
Other insurance | 34 | 33 |
Threadneedle investment liabilities | 4,808 | 3,912 |
Total | $ 87,368 | $ 80,210 |
Variable Annuity and Insuranc94
Variable Annuity and Insurance Guarantees (VA Guarantees Details Text) (Details) - GMAB [Member] | 12 Months Ended |
Dec. 31, 2017 | |
Variable Annuity Guarantees by Benefit Type | |
Maximum age of variable annuity contractholders | 79 years |
GMAB rider guarantees waiting period | 10 years |
Variable Annuity and Insuranc95
Variable Annuity and Insurance Guarantees (VA Guarantee Details Table) (Details 2) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | |||
GMDB [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 79,498 | $ 73,954 | |
Contract value in separate accounts | [1] | 74,378 | 68,790 | |
Net amount at risk | [1] | $ 83 | $ 433 | |
Weighted average attained age | [1] | 66 years | 65 years | |
GMDB [Member] | Return of premium [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 61,418 | $ 56,143 | |
Contract value in separate accounts | [1] | 59,461 | 54,145 | |
Net amount at risk | [1] | $ 9 | $ 208 | |
Weighted average attained age | [1] | 66 years | 65 years | |
GMDB [Member] | Five/six-year reset [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 8,870 | $ 8,878 | |
Contract value in separate accounts | [1] | 6,149 | 6,170 | |
Net amount at risk | [1] | $ 12 | $ 22 | |
Weighted average attained age | [1] | 66 years | 66 years | |
GMDB [Member] | One-year ratchet [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 6,548 | $ 6,426 | |
Contract value in separate accounts | [1] | 6,187 | 6,050 | |
Net amount at risk | [1] | $ 11 | $ 110 | |
Weighted average attained age | [1] | 69 years | 68 years | |
GMDB [Member] | Five-year ratchet [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 1,563 | $ 1,542 | |
Contract value in separate accounts | [1] | 1,506 | 1,483 | |
Net amount at risk | [1] | $ 1 | $ 7 | |
Weighted average attained age | [1] | 65 years | 64 years | |
GMDB [Member] | Other [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 1,099 | $ 965 | |
Contract value in separate accounts | [1] | 1,075 | 942 | |
Net amount at risk | [1] | $ 50 | $ 86 | |
Weighted average attained age | [1] | 72 years | 71 years | |
GGU death benefit [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 1,118 | $ 1,047 | |
Contract value in separate accounts | [1] | 1,067 | 996 | |
Net amount at risk | [1] | $ 133 | $ 108 | |
Weighted average attained age | [1] | 70 years | 68 years | |
GMIB [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 233 | $ 245 | |
Contract value in separate accounts | [1] | 216 | 227 | |
Net amount at risk | [1] | $ 7 | $ 13 | |
Weighted average attained age | [1] | 69 years | 68 years | |
GMWB [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 46,883 | $ 42,086 | |
Contract value in separate accounts | [1] | 46,759 | 41,924 | |
Net amount at risk | [1] | $ 130 | $ 291 | |
Weighted average attained age | [1] | 67 years | 66 years | |
GMWB [Member] | GMWB standard benefit [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 2,508 | $ 2,650 | |
Contract value in separate accounts | [1] | 2,500 | 2,642 | |
Net amount at risk | [1] | $ 1 | $ 2 | |
Weighted average attained age | [1] | 71 years | 70 years | |
GMWB [Member] | GMWB for life [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 44,375 | $ 39,436 | |
Contract value in separate accounts | [1] | 44,259 | 39,282 | |
Net amount at risk | [1] | $ 129 | $ 289 | [2] |
Weighted average attained age | [1] | 67 years | 66 years | |
GMAB [Member] | ||||
Variable Annuity Guarantees by Benefit Type | ||||
Total contract value | [1] | $ 3,086 | $ 3,484 | |
Contract value in separate accounts | [1] | 3,083 | 3,476 | |
Net amount at risk | [1] | $ 0 | $ 21 | |
Weighted average attained age | [1] | 59 years | 59 years | |
[1] | Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table | |||
[2] | Amount revised to reflect updated contractholder mortality assumptions as of December 31, 2016. |
Variable Annuity and Insuranc96
Variable Annuity and Insurance Guarantees (UL Secondary Guarantee) (Details 3) - UL secondary guarantees [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Insurance Guarantees by Benefit Type | ||
Net amount at risk | $ 6,460 | $ 6,376 |
Net Amount at Risk by Product and Guarantee, Weighted Average Attained Age | 65 years | 64 years |
Variable Annuity and Insuranc97
Variable Annuity and Insurance Guarantees (Liability Rollforward) (Details 4) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
GMDB and GGU [Member] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | ||||
Balance, at the beginning of the period | $ 16 | $ 14 | $ 9 | |
Incurred claims | 5 | 11 | 10 | |
Paid claims | (4) | (9) | (5) | |
Balance, at the end of the period | 17 | 16 | 14 | |
GMIB [Member] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | ||||
Balance, at the beginning of the period | 8 | 8 | 7 | |
Incurred claims | 1 | 1 | ||
Paid claims | (2) | (1) | ||
Balance, at the end of the period | 6 | 8 | 8 | |
GMWB [Member] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | ||||
Balance, at the beginning of the period | [1] | 1,017 | 1,057 | 693 |
Incurred claims | [1] | (554) | (40) | 364 |
Balance, at the end of the period | [1] | 463 | 1,017 | 1,057 |
GMAB [Member] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | ||||
Balance, at the beginning of the period | [1] | (24) | 0 | (41) |
Incurred claims | [1] | (56) | (23) | 41 |
Paid claims | [1] | (1) | ||
Balance, at the end of the period | [1] | (80) | (24) | 0 |
UL [Member] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | ||||
Balance, at the beginning of the period | 434 | 332 | 263 | |
Incurred claims | 84 | 127 | 92 | |
Paid claims | (29) | (25) | (23) | |
Balance, at the end of the period | $ 489 | $ 434 | $ 332 | |
[1] | The incurred claims for GMWB and GMAB represent the change in the fair value of the liabilities (contra liabilities) less paid claims. |
Variable Annuity and Insuranc98
Variable Annuity and Insurance Guarantees (Separate Account Balance by Type) (Details 5) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Mutual funds | ||
Distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: | ||
Total mutual funds | $ 74,676 | $ 69,090 |
Equity | ||
Distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: | ||
Total mutual funds | 46,038 | 40,622 |
Bond | ||
Distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: | ||
Total mutual funds | 23,529 | 23,142 |
Other | ||
Distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: | ||
Total mutual funds | $ 5,109 | $ 5,326 |
Customer Deposits (Details)
Customer Deposits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Customer Deposits [Abstract] | ||
Percentage of participation in the market index in the first option | 100.00% | |
Percentage of participation in the market index in the second option | 25.00% | |
Minimum [Member] | ||
Customer Deposits [Abstract] | ||
Amount of fixed rate investment certificates | $ 1,000 | |
Term of fixed rate investment certificates | 3 months | |
Returns on current first term stock market certificates (as a percent) | 0.55% | |
Maximum [Member] | ||
Customer Deposits [Abstract] | ||
Amount of fixed rate investment certificates | $ 2,000,000 | |
Term of fixed rate investment certificates | 48 months | |
Returns on current first term stock market certificates (as a percent) | 8.15% | |
Ameriprise Financial [Member] | ||
Customer Deposits [Abstract] | ||
Fixed rate certificates | $ 5,837,000,000 | $ 5,353,000,000 |
Stock market certificates | 520,000,000 | 547,000,000 |
Stock market embedded derivative reserve | 10,000,000 | 8,000,000 |
Other | 33,000,000 | 27,000,000 |
Less: accrued interest classified in other liabilities | (12,000,000) | (11,000,000) |
Total investment certificate reserves | 6,388,000,000 | 5,924,000,000 |
Brokerage customer deposits | 3,915,000,000 | 4,112,000,000 |
Total | $ 10,303,000,000 | $ 10,036,000,000 |
Debt (Schedule of debt) (Detail
Debt (Schedule of debt) (Details) - Ameriprise Financial [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt and stated interest rates | |||
Total long-term debt | $ 2,891 | $ 2,917 | |
Total Long-term Debt and Capital Lease Obligations | 2,891 | 2,917 | |
Short-term borrowings | 200 | 200 | |
Total Debt and Capital Lease Obligations | 3,091 | 3,117 | |
Federal Home Loan Bank advances [Member] | |||
Debt and stated interest rates | |||
Short-term borrowings | $ 150 | $ 150 | |
Stated interest rate (as a percent) short-term debt | 1.50% | 0.80% | |
Repurchase agreements [Member] | |||
Debt and stated interest rates | |||
Short-term borrowings | $ 50 | $ 50 | |
Stated interest rate (as a percent) short-term debt | 1.40% | 0.90% | |
Senior notes due 2019 [Member] | |||
Debt and stated interest rates | |||
Total long-term debt | $ 300 | $ 300 | |
Stated interest rate (as a percent) long-term debt | 7.30% | 7.30% | |
Senior notes due 2020 [Member] | |||
Debt and stated interest rates | |||
Total long-term debt | $ 750 | $ 750 | |
Stated interest rate (as a percent) long-term debt | 5.30% | 5.30% | |
Senior notes due 2023 [Member] | |||
Debt and stated interest rates | |||
Total long-term debt | $ 750 | $ 750 | |
Stated interest rate (as a percent) long-term debt | 4.00% | 4.00% | |
Senior notes due 2024 [Member] | |||
Debt and stated interest rates | |||
Total long-term debt | $ 550 | $ 550 | |
Stated interest rate (as a percent) long-term debt | 3.70% | 3.70% | |
Senior notes due 2026 [Member] | |||
Debt and stated interest rates | |||
Total long-term debt | $ 500 | $ 500 | |
Stated interest rate (as a percent) long-term debt | 2.90% | 2.90% | |
Capital Lease Obligations [Member] | |||
Debt and stated interest rates | |||
Capital lease obligation | $ 38 | $ 49 | |
Other [Member] | |||
Debt and stated interest rates | |||
Debt Issuance and Other Adjustments | [1] | $ 3 | $ 18 |
[1] | Amounts include adjustments for fair value hedges on the Company’s long-term debt and unamortized discount and debt issuance costs. See Note 16 for information on the Company’s fair value hedges. |
Debt (Narrative) (Details 2)
Debt (Narrative) (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Repurchase agreements [Member] | |||||||
Debt and stated interest rates | |||||||
Remaining maturity of outstanding amount for short term borrowings | 1 month | 3 months | |||||
Federal Home Loan Bank advances [Member] | |||||||
Debt and stated interest rates | |||||||
Remaining maturity of outstanding amount for short term borrowings | 4 months | 4 months | |||||
Ameriprise Financial [Member] | Repurchase agreements [Member] | Residential mortgage backed securities [Member] | |||||||
Debt and stated interest rates | |||||||
Securities pledged as collateral | $ 43 | $ 33 | |||||
Ameriprise Financial [Member] | Repurchase agreements [Member] | Commercial mortgage backed securities [Member] | |||||||
Debt and stated interest rates | |||||||
Securities pledged as collateral | 8 | 19 | |||||
Ameriprise Financial [Member] | Federal Home Loan Bank advances [Member] | Commercial mortgage backed securities [Member] | |||||||
Debt and stated interest rates | |||||||
Securities pledged as collateral | $ 750 | $ 771 | |||||
Ameriprise Financial [Member] | Senior notes due 2026 [Member] | |||||||
Debt and stated interest rates | |||||||
Unsecured senior notes issued | $ 500 | ||||||
Debt issuance costs | $ 4 | ||||||
Ameriprise Financial [Member] | Junior subordinated notes due 2066 [Member] | |||||||
Debt and stated interest rates | |||||||
Extinguishment of debt, amount | $ 229 | $ 16 | $ 49 | ||||
Gains (losses) on extinguishment of debt | $ 1 | $ 1 | |||||
Ameriprise Financial [Member] | Senior notes due 2015 [Member] | |||||||
Debt and stated interest rates | |||||||
Extinguishment of debt, amount | $ 350 |
Debt Debt (Maturities) (Details
Debt Debt (Maturities) (Details 3) - Ameriprise Financial [Member] $ in Millions | Dec. 31, 2017USD ($) |
Future Debt Maturities [Line Items] | |
2,018 | $ 13 |
2,019 | 314 |
2,020 | 761 |
2,021 | 0 |
2,022 | 0 |
Thereafter | 1,800 |
Total future maturities | $ 2,888 |
Debt Debt (Line of Credit Narra
Debt Debt (Line of Credit Narrative) (Details 4) - Ameriprise Financial [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | ||
Current borrowing capacity under the line of credit | $ 750 | |
Maximum borrowing capacity under the line of credit | 1,000 | |
Borrowings outstanding under credit facility | 0 | $ 0 |
Outstanding letters of credit issued against credit facility | $ 1 | $ 1 |
Offsetting Assets and Liabil104
Offsetting Assets and Liabilities (Assets Subject to Netting) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivatives: [Abstract] | |||
Derivative Asset, Fair Value, Gross Asset | [1] | $ 3,563 | $ 3,446 |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [2] | (2,669) | (2,725) |
Cash collateral | (760) | (409) | |
Securities collateral | (88) | (235) | |
Net amount | 46 | 77 | |
Securities borrowed [Abstract] | |||
Gross amounts of recognized assets | 103 | 127 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [2] | (19) | (16) |
Securities collateral | (82) | (108) | |
Net amount | 2 | 3 | |
Total [Abstract] | |||
Gross amounts of recognized assets | 3,666 | 3,573 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [2] | (2,688) | (2,741) |
Cash collateral | (760) | (409) | |
Securities collateral | (170) | (343) | |
Net amount | 48 | 80 | |
OTC [Member] | |||
Derivatives: [Abstract] | |||
Derivative Asset, Fair Value, Gross Asset | 3,520 | 2,920 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [2] | (2,653) | (2,214) |
Cash collateral | (760) | (406) | |
Securities collateral | (88) | (235) | |
Net amount | 19 | 65 | |
OTC cleared [Member] | |||
Derivatives: [Abstract] | |||
Derivative Asset, Fair Value, Gross Asset | 21 | 512 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [2] | (15) | (509) |
Cash collateral | (3) | ||
Net amount | 6 | ||
Exchange-traded [Member] | |||
Derivatives: [Abstract] | |||
Derivative Asset, Fair Value, Gross Asset | 22 | 14 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [2] | (1) | (2) |
Net amount | $ 21 | $ 12 | |
[1] | The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. | ||
[2] | Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
Offsetting Assets and Liabil105
Offsetting Assets and Liabilities (Details 2) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivatives [Abstract] | |||
Gross amounts of recognized liabilities | [1],[2] | $ 3,895 | $ 4,262 |
Securities loaned [Abstract] | |||
Gross amounts of recognized liabilities | 118 | 146 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [3] | (19) | (16) |
Securities collateral | (94) | (125) | |
Net amount | 5 | 5 | |
Repurchase agreements [Abstract] | |||
Gross amounts of recognized liabilities | 50 | 50 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Securities collateral | (50) | (50) | |
Net amount | 0 | 0 | |
Total [Abstract] | |||
Gross amounts of recognized liabilities | 3,496 | 3,367 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [3] | (2,688) | (2,741) |
Cash collateral | (70) | (78) | |
Securities collateral | (723) | (527) | |
Net amount | 15 | 21 | |
OTC [Member] | |||
Derivatives [Abstract] | |||
Gross amounts of recognized liabilities | 3,309 | 2,626 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [3] | (2,653) | (2,214) |
Cash collateral | (70) | (53) | |
Securities collateral | (579) | (352) | |
Net amount | 7 | 7 | |
OTC cleared [Member] | |||
Derivatives [Abstract] | |||
Gross amounts of recognized liabilities | 16 | 539 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [3] | (15) | (509) |
Cash collateral | (25) | ||
Net amount | 1 | 5 | |
Exchange-traded [Member] | |||
Derivatives [Abstract] | |||
Gross amounts of recognized liabilities | 3 | 6 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [3] | (1) | (2) |
Net amount | 2 | 4 | |
Total derivatives [Member] | |||
Derivatives [Abstract] | |||
Gross amounts of recognized liabilities | 3,328 | 3,171 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [3] | (2,669) | (2,725) |
Cash collateral | (70) | (78) | |
Securities collateral | (579) | (352) | |
Net amount | $ 10 | $ 16 | |
[1] | The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and indexed annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. The fair value of the SMC embedded derivative liability is included in Customer deposits on the Consolidated Balance Sheets. | ||
[2] | The fair value of the Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $1.3 billion and $1.5 billion as of December 31, 2017 and 2016, respectively. See Note 15 for additional information related to master netting arrangements and cash collateral. See Note 4 for information about derivatives held by consolidated VIEs. | ||
[3] | Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets.(2) The decrease in OTC cleared derivatives from December 31, 2016 is a result of certain central clearing parties amending their rules resulting in variation margin payments being settlement payments, as opposed to collateral. |
Derivatives and Hedging Acti106
Derivatives and Hedging Activities (Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivatives and Hedging Activities | |||
Notional amount | $ 131,433 | $ 142,316 | |
Asset | [1] | 3,563 | 3,446 |
Liability | [2],[3] | 3,895 | 4,262 |
Derivative liability after application of master netting arrangements and cash collateral including embedded derivative liabilities | 1,300 | 1,500 | |
Fair value of investment securities received as collateral | 89 | 235 | |
Fair value of investment securities received as collateral that can be repledged | 89 | 118 | |
Fair value of investment securities received as collateral that were repledged | 0 | 19 | |
GMWB and GMAB embedded derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Asset | 492 | 266 | |
Liability | 443 | 880 | |
GMWB and GMAB embedded derivatives [Member] | Policyholder account balances, future policy benefits and claims [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2],[3],[4] | (49) | 614 |
IUL embedded derivatives [Member] | Policyholder account balances, future policy benefits and claims [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2],[3] | 601 | 464 |
Indexed annuity embedded derivatives [Member] | Policyholder account balances, future policy benefits and claims [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2],[3] | 5 | 5 |
SMC embedded derivatives [Member] | Customer deposits [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2],[3] | 10 | 8 |
Embedded derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Asset | [1] | 0 | 0 |
Liability | [2],[3] | 567 | 1,091 |
Derivatives designated as hedging instruments [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 762 | 839 | |
Derivatives designated as hedging instruments [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Asset | [1] | 23 | 52 |
Derivatives designated as hedging instruments [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2],[3] | 4 | |
Derivatives designated as hedging instruments [Member] | Interest rate contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 675 | 675 | |
Derivatives designated as hedging instruments [Member] | Interest rate contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Asset | [1] | 23 | 40 |
Derivatives designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 87 | 164 | |
Derivatives designated as hedging instruments [Member] | Foreign exchange contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Asset | [1] | 12 | |
Derivatives designated as hedging instruments [Member] | Foreign exchange contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2],[3] | 4 | |
Derivatives not designated as hedging instruments [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 130,671 | 141,477 | |
Derivatives not designated as hedging instruments [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Asset | [1] | 3,540 | 3,394 |
Derivatives not designated as hedging instruments [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2],[3] | 3,324 | 3,171 |
Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 66,043 | 72,449 | |
Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Asset | [1] | 1,081 | 1,738 |
Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2],[3] | 416 | 989 |
Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 59,292 | 63,015 | |
Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Asset | [1] | 2,423 | 1,574 |
Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2],[3] | 2,883 | 2,135 |
Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 721 | 1,039 | |
Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Asset | [1] | 1 | |
Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2],[3] | 2 | |
Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 4,163 | 4,733 | |
Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Asset | [1] | 36 | 81 |
Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Liability | [2],[3] | 23 | 47 |
Derivatives not designated as hedging instruments [Member] | Other contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | $ 452 | $ 241 | |
[1] | The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. | ||
[2] | The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and indexed annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. The fair value of the SMC embedded derivative liability is included in Customer deposits on the Consolidated Balance Sheets. | ||
[3] | The fair value of the Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $1.3 billion and $1.5 billion as of December 31, 2017 and 2016, respectively. See Note 15 for additional information related to master netting arrangements and cash collateral. See Note 4 for information about derivatives held by consolidated VIEs. | ||
[4] | The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2017 included $443 million of individual contracts in a liability position and $492 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2016 included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position. |
Derivatives and Hedging Acti107
Derivatives and Hedging Activities (Income Statement) (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net investment income [Member] | Derivatives not designated as hedging instruments [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | $ (13) | $ 2 | $ (16) |
Net investment income [Member] | Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | (3) | 3 | (21) |
Net investment income [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | (10) | (1) | |
Net investment income [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 4 | ||
Net investment income [Member] | Derivatives not designated as hedging instruments [Member] | Other contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 1 | ||
Banking and deposit interest expense [Member] | SMC embedded derivatives [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | (4) | (2) | |
Banking and deposit interest expense [Member] | Derivatives not designated as hedging instruments [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 0 | 0 | 0 |
Banking and deposit interest expense [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 4 | 2 | |
Distribution expenses [Member] | Derivatives not designated as hedging instruments [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 57 | 22 | 0 |
Distribution expenses [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 54 | 23 | 1 |
Distribution expenses [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 3 | (1) | (1) |
Interest credited to fixed accounts [Member] | IUL embedded derivatives [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | (45) | 15 | (8) |
Interest credited to fixed accounts [Member] | Indexed annuity embedded derivatives [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 1 | ||
Interest credited to fixed accounts [Member] | Derivatives not designated as hedging instruments [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 30 | 35 | (17) |
Interest credited to fixed accounts [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 75 | 20 | (10) |
Benefits, Claims, Losses and Settlement Expenses [Member] | GMWB and GMAB embedded derivatives [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 663 | 237 | (372) |
Benefits, Claims, Losses and Settlement Expenses [Member] | Derivatives not designated as hedging instruments [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | (464) | (624) | (450) |
Benefits, Claims, Losses and Settlement Expenses [Member] | Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 1 | 36 | 228 |
Benefits, Claims, Losses and Settlement Expenses [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | (1,081) | (897) | (317) |
Benefits, Claims, Losses and Settlement Expenses [Member] | Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | (22) | 2 | (1) |
Benefits, Claims, Losses and Settlement Expenses [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | (23) | 13 | |
Benefits, Claims, Losses and Settlement Expenses [Member] | Derivatives not designated as hedging instruments [Member] | Other contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | (2) | (2) | (1) |
General and administrative expense [Member] | Derivatives not designated as hedging instruments [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 17 | 20 | 0 |
General and administrative expense [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 11 | 6 | 2 |
General and administrative expense [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | $ 6 | $ 14 | $ (2) |
Derivatives and Hedging Acti108
Derivatives and Hedging Activities (Option Pay/Rec) (Details 3) $ in Millions | Dec. 31, 2017USD ($) |
Summary of Option Premiums Payable and Receivable [Line Items] | |
Premiums payable for derivative option contracts | $ 1,706 |
Premiums receivable for derivative option contracts | 718 |
2018 [Member] | |
Summary of Option Premiums Payable and Receivable [Line Items] | |
Premiums payable for derivative option contracts | 233 |
Premiums receivable for derivative option contracts | 131 |
2019 [Member] | |
Summary of Option Premiums Payable and Receivable [Line Items] | |
Premiums payable for derivative option contracts | 296 |
Premiums receivable for derivative option contracts | 171 |
2020 [Member] | |
Summary of Option Premiums Payable and Receivable [Line Items] | |
Premiums payable for derivative option contracts | 217 |
Premiums receivable for derivative option contracts | 100 |
2021 [Member] | |
Summary of Option Premiums Payable and Receivable [Line Items] | |
Premiums payable for derivative option contracts | 187 |
Premiums receivable for derivative option contracts | 109 |
2022 [Member] | |
Summary of Option Premiums Payable and Receivable [Line Items] | |
Premiums payable for derivative option contracts | 250 |
Premiums receivable for derivative option contracts | 148 |
2023-2027 [Member] | |
Summary of Option Premiums Payable and Receivable [Line Items] | |
Premiums payable for derivative option contracts | 523 |
Premiums receivable for derivative option contracts | $ 59 |
Derivatives and Hedging Acti109
Derivatives and Hedging Activities (Impact of Hedging Activity) (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivatives liabilities, credit risk related contingent features | |||
Aggregate fair value of all derivative instruments containing credit risk features | $ 372 | $ 254 | |
Aggregate fair value of assets posted as collateral | 369 | 246 | |
Additional collateral required to be posted | 3 | 8 | |
Cash flow hedges [Member] | |||
Derivative Instruments, Gain (Loss) | |||
Gain on cash flow hedge ineffectiveness | 1 | 0 | $ 1 |
Estimated reclassification of net pretax losses on cash flow hedges from accumulated other comprehensive income to earnings during the next 12 months | 0 | ||
Cash flow hedge gain to be reclassified within twelve months to interest and debt expense | 2 | ||
Cash flow hedge loss to be reclassified within twelve months recorded in net investment income | $ (2) | ||
Longest period of time over which the entity hedges exposure to the variability in future cash flows | 18 years | ||
Net investment hedges [Member] | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on net investment hedge recorded in OCI | $ 4 | 34 | |
Interest rate contracts [Member] | Interest and debt expense [Member] | Fair value hedges [Member] | |||
Derivative Instruments, Gain (Loss) | |||
Amount of gain recognized in income on derivatives | $ 16 | $ 19 | $ 31 |
Share-Based Compensation (Share
Share-Based Compensation (Share-Based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 166 | $ 138 | $ 158 |
Tax benefit related to share-based compensation expense | 58 | 48 | 56 |
Total unrecognized compensation cost related to non-vested awards | $ 94 | ||
Weighted-average period to recognize compensation cost | 2 years 6 months | ||
Stock option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 32 | 34 | 39 |
Restricted stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 24 | 24 | 22 |
Restricted stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 65 | 76 | 83 |
Liability awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 45 | $ 4 | $ 14 |
Share-Based Compensation (Stock
Share-Based Compensation (Stock Option Inputs) (Details 2) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of current fair market value of common stock | 100.00% | ||
Maximum term of stock options granted | 10 years | ||
Dividend yield (as a percent) | 2.30% | 2.30% | 2.00% |
Expected volatility (as a percent) | 30.00% | 27.00% | 26.00% |
Risk-free interest rate (as a percent) | 1.90% | 1.30% | 1.20% |
Expected life of stock option | 5 years | 5 years | 5 years |
Weighted average grant date fair value for options granted (in dollars per share) | $ 28.33 | $ 17 | $ 25.12 |
Stock option [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Stock option [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Restricted stock units [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Restricted stock units [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Amended and Restated Ameriprise Financial 2005 Incentive Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum shares which may be issued under incentive plan (in shares) | 54.4 | ||
Maximum shares to be issued full value awards | 4.5 | ||
Ameriprise Financial 2008 Employment Incentive Equity Award Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum shares which may be issued under incentive plan (in shares) | 6 |
Share-Based Compensation (St112
Share-Based Compensation (Stock Option Activity) (Details 3) - Stock option [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, at the beginning of the period (in shares) | 8.2 | ||
Granted (in shares) | 1.2 | ||
Exercised (in shares) | (3.3) | ||
Forfeited (in shares) | (0.1) | ||
Outstanding, at the end of the period (in shares) | 6 | 8.2 | |
Exercisable (in shares) | 3.2 | ||
Weighted average exercise price (in dollars per share) | $ 100.38 | $ 84.85 | |
Weighted average exercise price granted (in dollars per share) | 123.58 | ||
Weighted average exercise price exercised (in dollars per share) | 69.41 | ||
Weighted average exercise price forfeited (in dollars per share) | 106.62 | ||
Weighted average exercise price exercisable (in dollars per share) | $ 92.72 | ||
Weighted average remaining contractual life of options outstanding | 7 years | 6 years 8 months | |
Weighted average remaining contractual life of options exercisable | 5 years 9 months | ||
Aggregate intrinsic value of options outstanding (in dollars) | $ 413 | $ 241 | |
Aggregate intrinsic value of options exercisable | 243 | ||
Intrinsic value of options exercised | $ 222 | $ 37 | $ 111 |
Share-Based Compensation (Full
Share-Based Compensation (Full Value Share Award Activity) (Details 4) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of equity instruments other than options vested in period (in dollars) | $ 97 | $ 103 | $ 133 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Non-vested at beginning of the period (in shares) | 1.3 | ||
Granted (in shares) | 0.5 | ||
Deferred (in shares) | 0.2 | ||
Vested (in shares) | (0.7) | ||
Forfeited (in shares) | (0.1) | ||
Non-vested at end of the period (in shares) | 1.2 | 1.3 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant-date fair value, non-vested at the beginning of the period (in dollars per share) | $ 99.37 | ||
Weighted average grant-date fair value, granted during the period (in dollars per share) | 127.08 | ||
Weighted average grant-date fair value, deferred during the period (in dollars per share) | 134.01 | ||
Weighted average grant-date fair value, vested during the period (in dollars per share) | 113.59 | ||
Weighted average grant-date fair value, forfeited during the period (in dollars per share) | 106.43 | ||
Weighted average grant-date fair value, non-vested at the end of the period (in dollars per share) | $ 107.52 | $ 99.37 | |
Restricted stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
Restricted stock [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Restricted stock [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
RSA RSU and DSU awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant-date fair value, non-vested at the beginning of the period (in dollars per share) | $ 88.61 | 128.43 | |
Weighted average grant-date fair value, non-vested at the end of the period (in dollars per share) | 124.51 | 88.61 | $ 128.43 |
Advisor deferral plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant-date fair value, non-vested at the beginning of the period (in dollars per share) | 94.55 | 123.88 | |
Weighted average grant-date fair value, non-vested at the end of the period (in dollars per share) | $ 134.58 | $ 94.55 | $ 123.88 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period to attain PSU goals against peers | 3 years | ||
Service condition period | 3 years | ||
Units outstanding | 0.2 | 0.2 | 0.2 |
Value of shares settled | $ 13 | $ 15 | $ 27 |
Performance Shares [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of PSUs earned | 200.00% | ||
Performance Shares [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of PSUs earned | 0.00% | ||
Franchise Advisor Deferral Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Franchise Advisor Deferral Plan [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum shares which may be issued under incentive plan (in shares) | 12.5 | ||
Franchise Advisor Top Performer Stock Award [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Franchise Consultant Growth Bonus [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Employee Advisor Deferral Program [Member] | Share-based bonus awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum shares which may be issued under incentive plan (in shares) | 3 |
Share-Based Compensation (Threa
Share-Based Compensation (Threadneedle Equity Incentive Plan) (Details 5) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity Incentive Plan and Equity Participation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee service share-based compensation, cash flow effect, cash used to settle awards | $ 0 | $ 2 | $ 28 |
Shareholders' Equity Comprehens
Shareholders' Equity Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Net unrealized securities gains, before tax [Abstract] | ||||
Net unrealized securities gains (losses) arising during the period before tax | [1] | $ 243 | $ 339 | $ (1,027) |
Reclassification of net securities (gains) losses included in net income before tax | [2] | (55) | (22) | (6) |
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables before tax | (180) | (242) | 480 | |
Net unrealized securities gains before tax | 8 | 75 | (553) | |
Net unrealized derivatives losses, before tax [Abstract] | ||||
Reclassification of net derivative losses included in net income before tax | [3] | 5 | 6 | 1 |
Net unrealized derivatives losses before tax | 5 | 6 | 1 | |
Defined benefit plans, before tax [Abstract] | ||||
Prior service credit before tax | 2 | (2) | ||
Net loss arising during the period before tax | 38 | (45) | (24) | |
Defined benefit plans before tax | 40 | (45) | (26) | |
Foreign currency translation before tax | 74 | (117) | (46) | |
Other comprehensive income attributable to Ameriprise Financial before tax | (1) | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 126 | (81) | (624) | |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Noncontrolling Interest | (60) | |||
Other Comprehensive Income (Loss), before Tax | (684) | |||
Net unrealized securities gains, tax impact [Abstract] | ||||
Net unrealized securities (gains) losses arising during the period tax impact | [1] | (77) | (121) | 359 |
Reclassification of net securities gains (losses) included in net income tax impact | [2] | 19 | 8 | 2 |
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables tax impact | 57 | 85 | (168) | |
Net unrealized securities gains tax impact | (1) | (28) | 193 | |
Net unrealized derivatives losses, tax impact [Abstract] | ||||
Reclassification of net derivative losses included in net income tax impact | [3] | (2) | (2) | 0 |
Net unrealized derivatives losses tax impact | (2) | (2) | 0 | |
Defined benefit plans, net of tax [Abstract] | ||||
Prior service credit tax impact | (1) | 0 | ||
Net loss arising during the period tax | (11) | 11 | 6 | |
Defined benefit plans tax impact | (12) | 11 | 6 | |
Foreign currency translation tax impact | (82) | 41 | 16 | |
Other comprehensive income attributable to Ameriprise Financial tax impact | 0 | |||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (97) | 22 | 215 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Noncontrolling Interest | 0 | |||
Other Comprehensive Income (Loss), Tax | 215 | |||
Net unrealized securities gains, net of tax [Abstract] | ||||
Net unrealized securities gains (losses) arising during the period, net of tax | [1] | 166 | 218 | (668) |
Reclassification of net securities (gains) losses included in net income net of tax | [2] | (36) | (14) | (4) |
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables net of tax | (123) | (157) | 312 | |
Net unrealized securities gains net of tax | 7 | 47 | (360) | |
Net unrealized derivative losses, net of tax [Abstract] | ||||
Reclassification of net derivative losses included in net income net of tax | [3] | 3 | 4 | 1 |
Net unrealized derivatives losses net of tax | 3 | 4 | 1 | |
Defined benefit plans, net of tax [Abstract] | ||||
Prior service credit net of tax | 1 | (2) | ||
Net loss arising during the period net of tax | 27 | (34) | (18) | |
Defined benefit plans net of tax | 28 | (34) | (20) | |
Foreign currency translation net of tax | (8) | (76) | (30) | |
Other comprehensive income attributable to Ameriprise Financial net of tax | (1) | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 29 | (59) | (409) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | (60) | |||
Total other comprehensive income (loss), net of tax | 29 | (59) | (469) | |
Net investment income [Member] | ||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | 2 | 1 | 4 | |
Interest and debt expense [Member] | ||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | $ (5) | $ (6) | $ (5) | |
[1] | Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period. | |||
[2] | Reclassification amounts are recorded in net investment income. | |||
[3] | Includes a $2 million, $1 million and $4 million pretax gain reclassified to interest and debt expenses and a $5 million, $6 million and $5 million pretax loss reclassified to net investment income for the years ended December 31, 2017, 2016 and 2015, respectively. |
Shareholders' Equity AOCI Rollf
Shareholders' Equity AOCI Rollforward (Details 2) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | $ 200 | $ 253 | $ 662 | |||
OCI before reclassifications | 54 | (54) | (411) | |||
Amounts reclassified from AOCI | (25) | (5) | 2 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 29 | (59) | (409) | |||
Ending balance | 229 | 200 | 253 | |||
Net unrealized securities gains [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | 479 | [1] | 426 | [1] | 786 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | 6 | |||||
OCI before reclassifications | 43 | 61 | (356) | |||
Amounts reclassified from AOCI | (36) | (14) | (4) | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 7 | 47 | (360) | |||
Ending balance | [1] | 486 | 479 | 426 | ||
Noncredit related impairments on AFS securities | 1 | 4 | 4 | |||
AOCI Attributable to Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 6 | |||||
Net unrealized derivatives losses [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | 5 | 1 | 0 | |||
Amounts reclassified from AOCI | 3 | 4 | 1 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 3 | 4 | 1 | |||
Ending balance | 8 | 5 | 1 | |||
Defined benefit plans [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | (125) | (91) | (71) | |||
OCI before reclassifications | 20 | (39) | (25) | |||
Amounts reclassified from AOCI | 8 | 5 | 5 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 28 | (34) | (20) | |||
Ending balance | (97) | (125) | (91) | |||
Foreign currency translation [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | (159) | (83) | (53) | |||
OCI before reclassifications | (8) | (76) | (30) | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (8) | (76) | (30) | |||
Ending balance | (167) | (159) | (83) | |||
Accumulated Net Unrealized From Other Investment Gain Loss [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | 0 | 0 | 0 | |||
OCI before reclassifications | (1) | 0 | 0 | |||
Amounts reclassified from AOCI | 0 | 0 | 0 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (1) | 0 | 0 | |||
Ending balance | $ (1) | $ 0 | $ 0 | |||
[1] | Includes $1 million, $4 million and $4 million of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities at December 31, 2017, 2016 and 2015, respectively. |
Shareholders' Equity Changes in
Shareholders' Equity Changes in Stockholders' Equity (Details 3) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2017 | |
Stock repurchase program, authorized amount | $ 2,500 | $ 2,500 | ||
Remaining balance under stock repurchase program | $ 2,085 | |||
Number of shares reacquired through surrender of restricted shares | 0.3 | 0.3 | 0.4 | |
Value of shares reacquired through surrender of restricted shares | $ 33 | $ 29 | $ 49 | |
Number of shares reacquired through net settlement of options | 2.2 | 0.5 | 0.7 | |
Aggregate value of shares reacquired through net settlement of options | $ 298 | $ 48 | $ 92 | |
Treasury shares reissued for restricted stock award grants and Ameriprise Financial Franchise Advisor Deferred Compensation Plan | 0.8 | 0.9 | 1 | |
Open Market Share Repurchases [Member] | ||||
Repurchase of common shares (in shares) | 9.9 | 17.6 | 13.9 | |
Repurchase of common shares | $ 1,344 | $ 1,674 | $ 1,674 |
Earnings per Share Attributa118
Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders (Basic & Diluted) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||||||||
Net income | $ 1,480 | $ 1,314 | $ 1,687 | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 125 | ||||||||
Net income attributable to Ameriprise Financial | $ 1,480 | $ 1,314 | $ 1,562 | ||||||||
Denominator: | |||||||||||
Basic: Weighted-average common shares outstanding | 151 | 153 | 155.1 | 157.5 | 160.4 | 164 | 168.3 | 172.6 | 154.1 | 166.3 | 181.7 |
Effect of potentially dilutive nonqualified stock options and other share-based awards (in shares) | 2.6 | 1.9 | 2.5 | ||||||||
Diluted: Weighted-average common shares outstanding | 153.8 | 155.4 | 157.5 | 160.1 | 162.4 | 165.8 | 170.1 | 174.4 | 156.7 | 168.2 | 184.2 |
Earnings Per Share, Basic: | |||||||||||
Net income (in dollars per basic share) | $ 1.20 | $ 3.29 | $ 2.53 | $ 2.56 | $ 2.49 | $ 1.31 | $ 1.99 | $ 2.11 | $ 9.60 | $ 7.90 | $ 8.60 |
Earnings Per Share, Diluted: | |||||||||||
Net income (in dollars per diluted share) | $ 1.18 | $ 3.24 | $ 2.50 | $ 2.52 | $ 2.46 | $ 1.30 | $ 1.97 | $ 2.09 | $ 9.44 | $ 7.81 | $ 8.48 |
Antidilutive options excluded from computation of earnings per share | 0 | 1.5 | 1.7 |
Regulatory Requirements (Narrat
Regulatory Requirements (Narrative) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)subsidiary | Dec. 31, 2016USD ($) | |
Regulatory Requirements | ||
Aggregate amount of unrestricted net assets | $ 900 | |
Permitted practice impact to statutory surplus | $ 3 | |
Number of broker-dealer subsidiaries | subsidiary | 5 | |
Ameriprise Certificate Company [Member] | ||
Regulatory Requirements | ||
Requirement of qualified assets under Investment Company Act of 1940 | $ 6,400 | $ 5,900 |
Actual amount of qualified assets | 6,900 | 6,300 |
RiverSource Life [Member] | ||
Regulatory Requirements | ||
Statutory unassigned surplus (deficit) | $ (306) | 275 |
Percentage of previous year-end statutory capital and surplus (as a percent) | 10.00% | |
Statutory capital and surplus | $ 2,400 | 3,000 |
Government debt securities on deposit with states under legal requirements | 4 | 4 |
IDS Property Casualty [Member] | ||
Regulatory Requirements | ||
Statutory capital and surplus | 781 | $ 800 |
Ameriprise Certificate Company [Member] | Ameriprise Financial, Inc | ||
Regulatory Requirements | ||
Maximum commitment under Capital Support Agreement | $ 50 |
Regulatory Requirements (Table)
Regulatory Requirements (Table) (Details 2) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
RiverSource Life [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory net gain from operations | [1] | $ 958 | $ 834 | $ 1,033 |
Statutory net income (loss) | [1] | 222 | 322 | 633 |
IDS Property Casualty [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory net income (loss) | $ (10) | $ (8) | $ (44) | |
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmI4YzQxODUyMTM5NTQ1MWNhOTFjNDUyMThjZWM2OWM0fFRleHRTZWxlY3Rpb246NDZERDU5MUZBMUY5RUIwRUEyM0QzQTBGMEZBRTAyODYM} |
Income Taxes (Income Tax Compon
Income Taxes (Income Tax Components) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current income tax: | |||
Federal | $ 468 | $ 245 | $ 509 |
State and local | 58 | 44 | 36 |
Foreign | 52 | 23 | 41 |
Total current income tax | 578 | 312 | 586 |
Deferred income tax: | |||
Federal | 169 | (36) | (124) |
State and local | (5) | 3 | (4) |
Foreign | (8) | (1) | (3) |
Total deferred income tax | 156 | (34) | (131) |
Total income tax provision | 734 | $ 278 | $ 455 |
Expense related to the enactment of the Tax Act | 286 | ||
Remeasurement of deferred tax assets and liabilities to Tax Act's statutory 21% | 221 | ||
Expense for the foreign provisions of the Tax Act | 57 | ||
Remeasurement of tax contingencies related to the Tax Act | $ 8 |
Income Taxes (Geographic Source
Income Taxes (Geographic Sources) (Details 1) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Geographic sources of pretax income | |||||||||||
United States | $ 1,988 | $ 1,412 | $ 1,710 | ||||||||
Foreign | 226 | 180 | 432 | ||||||||
Income from continuing operations before income tax provision | $ 600 | $ 628 | $ 511 | $ 475 | $ 469 | $ 238 | $ 410 | $ 475 | $ 2,214 | $ 1,592 | $ 2,142 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Income Tax Provision) (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of the income tax provision | |||
Tax at U.S. statutory rate (as a percent) | 35.00% | 35.00% | 35.00% |
Changes in taxes resulting from: | |||
Impact of the Tax Act (as a percent) | 13.00% | ||
Dividend received deduction (as a percent) | (5.80%) | (7.60%) | (6.70%) |
Low income housing tax credit (as a percent) | (3.40%) | (4.20%) | (3.00%) |
Incentive compensation (as a percent) | (3.00%) | ||
Foreign taxes (as a percent) | (2.00%) | (2.50%) | 0.00% |
Foreign tax credits, net of addback (as a percent) | (0.00%) | (1.60%) | (2.10%) |
Taxes applicable to prior years (as a percent) | 0.00% | (3.10%) | 0.00% |
State taxes, net of federal benefit (as a percent) | 0.00% | 1.90% | 0.00% |
Net income (loss) attributable to noncontrolling interests (as a percent) | 0.00% | 0.00% | (2.00%) |
Other, net (as a percent) | (0.70%) | (0.50%) | 0.10% |
Income tax provision (as a percent) | 33.10% | 17.40% | 21.30% |
Expense related to the enactment of the Tax Act | $ 286 | ||
Net excess tax benefit recognized in income tax provisions | 70 | ||
Benefits Tax Planning and Completion of Audits | $ 27 | ||
Income taxes expense from continuing operations related to Tax Act | 278 | ||
Tax Act provisional tax to remeasure deferred tax assets and liabilities | 221 | ||
Provisional tax related to the foreign provisions of the Tax Act | 57 | ||
Accumulated Earnings of Foreign Subsidiaries | $ 429 |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Tax Assets and Liabilities) (Details 3) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income tax assets: | ||
Liabilities for policyholder account balances, future policy benefits and claims | $ 620 | $ 1,177 |
Deferred compensation | 345 | 439 |
Investment related | 245 | 253 |
Postretirement benefits | 34 | 62 |
Deferred Tax Assets, Unrealized Currency Losses | 0 | 73 |
Other | 66 | 68 |
Gross deferred income tax assets | 1,310 | 2,072 |
Less: Valuation allowance | 17 | 11 |
Total deferred income tax assets | 1,293 | 2,061 |
Deferred income tax liabilities: | ||
Deferred acquisition costs | 446 | 717 |
Net unrealized gains on Available-for-Sale securities | 162 | 264 |
Depreciation expense | 93 | 146 |
Deferred sales inducement costs | 62 | 113 |
Intangible assets | 93 | 126 |
Goodwill | 52 | 74 |
Other | 7 | 2 |
Gross deferred income tax liabilities | 915 | 1,442 |
Net deferred income tax liabilities | 378 | 619 |
State net operating losses | 17 | |
Valuation allowance | $ 17 | $ 11 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits Information) (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||
Unrecognized tax benefits, net of federal tax benefits, that would impact the effective tax rate | $ 58 | $ 46 | $ 57 |
Increase (decrease) in interest and penalties | 0 | 43 | 3 |
Payable related to accrued interest and penalties | 8 | 8 | |
Reconciliation of gross unrecognized tax benefits (expense) | |||
Beginning balance | 115 | 161 | 242 |
Additions based on tax positions related to the current year | 16 | 15 | 18 |
Additions for tax positions of prior years | 3 | 33 | 48 |
Reductions for tax positions of prior years | (57) | (87) | (147) |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | (1) | (7) | 0 |
Ending balance | 76 | $ 115 | $ 161 |
Minimum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Decrease in gross amount of unrecognized tax benefits due to resolution of IRS examinations | 20 | ||
Maximum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Decrease in gross amount of unrecognized tax benefits due to resolution of IRS examinations | $ 30 |
Retirement Plans and Profit 126
Retirement Plans and Profit Sharing Arrangements (Text) (Details) - USD ($) $ in Millions | Feb. 28, 2010 | Dec. 31, 2017 | Dec. 31, 2016 |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Benefits Paid | $ (12) | $ (8) | |
Benefits paid | (12) | (8) | |
Actuarial (gain) loss | $ 39 | 65 | |
Yield period of U.S. Treasury Note | 5 years | ||
Minimum crediting rate (as a percent) | 5.00% | ||
Period of graded schedule for vesting | 3 years | ||
Minimum threshold percentage for amortization of actuarial gains and losses | 10.00% | ||
Unrecognized actuarial gain (loss) recognized in accumulated other comprehensive income | $ (99) | ||
Unrecognized prior service credit (cost) recognized in accumulated other comprehensive income | 0 | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (2) | ||
Estimated future amortization of actuarial gain (loss) | (7) | ||
Estimated amounts that will be amortized from AOCI into net periodic benefit cost - prior service credit (cost) | $ 0 | ||
Defined Benefit Plan, Assets, Target Allocations | |||
Range of the difference between the actual allocation and target allocations (as a percent) | 5.00% | ||
Pension Plans [Member] | Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Eligible Contribution | 2.50% | 2.50% | |
Pension Plans [Member] | Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Eligible Contribution | 10.00% | 5.00% | |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefits paid | $ (1) | (4) | |
Actuarial (gain) loss | 1 | ||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Other Change | 0 | (2) | |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 0 | $ 2 | |
Unrecognized actuarial gain (loss) recognized in accumulated other comprehensive income | 3 | ||
Unrecognized prior service credit (cost) recognized in accumulated other comprehensive income | 1 | ||
Estimated future amortization of actuarial gain (loss) | $ 0 | ||
Equity securities [Member] | Pension Plans [Member] | |||
Defined Benefit Plan, Assets, Target Allocations | |||
Target allocations (as a percent) | 70.00% | ||
Target allocations for pooled pension funds (as a percent) | 83.00% | ||
Debt securities [Member] | Pension Plans [Member] | |||
Defined Benefit Plan, Assets, Target Allocations | |||
Target allocations (as a percent) | 20.00% | ||
Target allocations for pooled pension funds (as a percent) | 17.00% | ||
Other assets [Member] | Pension Plans [Member] | |||
Defined Benefit Plan, Assets, Target Allocations | |||
Target allocations (as a percent) | 10.00% |
Retirement Plans and Profit 127
Retirement Plans and Profit Sharing Arrangements (Net Periodic Pension Cost) (Details 1) - Pension Plans [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined benefit plans: | |||
Service cost | $ 47 | $ 44 | $ 46 |
Interest cost | 28 | 29 | 27 |
Expected return on plan assets | (45) | (41) | (40) |
Amortization of prior service costs | (1) | (1) | (1) |
Amortization of net loss | 10 | 6 | 9 |
Other | 3 | 4 | 4 |
Net periodic benefit cost | $ 42 | $ 41 | $ 45 |
Retirement Plans and Profit 128
Retirement Plans and Profit Sharing Arrangements (Benefit Obligation and Fair Value) (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Plans [Member] | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | $ 899 | $ 812 | |
Service cost | 47 | 44 | $ 46 |
Interest cost | 28 | 29 | 27 |
Benefits paid | (12) | (8) | |
Actuarial (gain) loss | 39 | 65 | |
Settlements | (21) | (18) | |
Foreign currency rate changes | 15 | (25) | |
Benefit obligation at end of year | 995 | 899 | 812 |
Change in fair value of plan assets | |||
Fair value of plan assets at the beginning of the year | 628 | 608 | |
Actual return on plan assets | 107 | 62 | |
Employer contributions | 32 | 13 | |
Benefits paid | 12 | 8 | |
Settlements | (21) | (18) | |
Foreign currency rate changes | 14 | (29) | |
Fair value of plan assets at the end of the year | 748 | 628 | 608 |
Other Postretirement Benefits Plan [Member] | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 15 | 18 | |
Interest cost | 0 | 1 | |
Benefits paid | (1) | (4) | |
Actuarial (gain) loss | 1 | ||
Plan change | 0 | (2) | |
Participant contributions | 0 | 2 | |
Benefit obligation at end of year | $ 15 | $ 15 | $ 18 |
Retirement Plans and Profit 129
Retirement Plans and Profit Sharing Arrangements (Amounts recognized in Balance Sheet) (Details 3) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Pension Plans [Member] | ||
Amounts recognized in the Consolidated Balance Sheets | ||
Benefit liability | $ (253) | $ (271) |
Benefit asset | 6 | 0 |
Net amount recognized | (247) | (271) |
Other Postretirement Benefits Plan [Member] | ||
Amounts recognized in the Consolidated Balance Sheets | ||
Benefit liability | (15) | (15) |
Benefit asset | 0 | 0 |
Net amount recognized | $ (15) | $ (15) |
Retirement Plans and Profit 130
Retirement Plans and Profit Sharing Arrangements (Benefit Obligations that Exceeded the Fair Value) (Details 4) - Pension Plans [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 916 | $ 822 |
Plans with accumulated benefit obligations in excess of plan assets: | ||
Accumulated benefit obligation | 759 | 684 |
Fair value of plan assets | 562 | 469 |
Plans with projected benefit obligations in excess of plan assets: | ||
Projected benefit obligation | 816 | 899 |
Fair value of plan assets | $ 562 | $ 628 |
Retirement Plans and Profit 131
Retirement Plans and Profit Sharing Arrangements (Weighted Average Assumptions) (Details 5) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Plans [Member] | |||
Weighted average assumptions used to determine benefit obligations for pension plans | |||
Discount rates (as a percent) | 3.32% | 3.66% | |
Rates of increase in compensation levels (as a percent) | 4.29% | 4.39% | |
Weighted average assumptions used to determine net periodic benefit cost for pension plans | |||
Discount rates (as a percent) | 3.64% | 3.67% | 3.43% |
Rates of increase in compensation levels (as a percent) | 4.39% | 4.43% | 4.41% |
Expected long term rates of return on assets (as a percent) | 7.13% | 6.98% | 7.10% |
Other Postretirement Benefits Plan [Member] | |||
Weighted average assumptions used to determine benefit obligations for pension plans | |||
Discount rates (as a percent) | 3.41% | 3.77% |
Retirement Plans and Profit 132
Retirement Plans and Profit Sharing Arrangements (Assets Measured at Fair Value) (Details 6) - Pension Plans [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 748 | $ 628 | $ 608 | |
Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 291 | 241 | ||
Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 412 | 344 | ||
Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. large cap stocks [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 189 | 149 | ||
U.S. large cap stocks [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 95 | 73 | ||
U.S. large cap stocks [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 94 | 76 | ||
U.S. small cap stocks [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 80 | 73 | ||
U.S. small cap stocks [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 76 | 69 | ||
U.S. small cap stocks [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 4 | 4 | ||
Non-U.S. large cap stocks [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 71 | 56 | ||
Non-U.S. large cap stocks [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 28 | 22 | ||
Non-U.S. large cap stocks [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 43 | 34 | ||
Non-U.S. small cap stocks [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 28 | 21 | ||
Non-U.S. small cap stocks [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 28 | 21 | ||
Emerging markets [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 51 | 37 | ||
Emerging markets [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 19 | 14 | ||
Emerging markets [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 32 | 23 | ||
U.S. investment grade bonds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 38 | 36 | ||
U.S. investment grade bonds [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 27 | 26 | ||
U.S. investment grade bonds [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 11 | 10 | ||
U.S. high yield bonds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 26 | 24 | ||
U.S. high yield bonds [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 26 | 24 | ||
Non-U.S. investment grade bonds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 16 | 14 | ||
Non-U.S. investment grade bonds [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 16 | 14 | ||
Real estate investment trusts [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 18 | 17 | |
Hedge funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 27 | 26 | |
Pooled pension funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 166 | 142 | ||
Pooled pension funds [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 166 | 142 | ||
AVC assets (pooled pension funds) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 20 | 17 | ||
AVC assets (pooled pension funds) [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 20 | 17 | ||
Cash equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 18 | 16 | ||
Cash equivalents [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 18 | $ 16 | ||
[1] | Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. See Note 2 for further information. |
Retirement Plans and Profit 133
Retirement Plans and Profit Sharing Arrangements (Expected Benefit Payments) (Details 7) $ in Millions | Dec. 31, 2017USD ($) |
Pension Plans [Member] | |
Expected benefit payments to retirees | |
2,017 | $ 83 |
2,018 | 62 |
2,019 | 61 |
2,020 | 74 |
2,021 | 70 |
2022-2026 | 390 |
Estimated future employer contributions in next fiscal year | 26 |
Other Postretirement Benefits Plan [Member] | |
Expected benefit payments to retirees | |
2,017 | 1 |
2,018 | 1 |
2,019 | 1 |
2,020 | 1 |
2,021 | 1 |
2022-2026 | 5 |
Estimated future employer contributions in next fiscal year | $ 1 |
Retirement Plans and Profit 134
Retirement Plans and Profit Sharing Arrangements (Defined Contribution Plan) (Details 8) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution, percent of employees' gross pay | 5.00% | ||
Employer contribution requisite service period | 60 days | ||
United States [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan expense | $ 49 | $ 48 | $ 47 |
Non-US [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan expense | $ 5 | $ 6 | $ 6 |
Ameriprise Financial Inc 401(k) Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Period of graded schedule for vesting of employer contributions | 5 years |
Commitments, Guarantees and 135
Commitments, Guarantees and Contingencies Aggregate Minimum Rentals (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Commitments and Contingencies Disclosure [Abstract] | ||||
2,017 | $ 69 | |||
2,018 | 58 | |||
2,019 | 48 | |||
2,020 | 35 | |||
2,021 | 27 | |||
Thereafter | 78 | |||
Total | [1] | 315 | ||
Operating lease expense | $ 84 | $ 59 | $ 67 | |
[1] | Minimum payments have not been reduced by minimum sublease rentals due in the future under noncancelable subleases. |
Commitments, Guarantees and 136
Commitments, Guarantees and Contingencies Future Funding Commitments (Details 2) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Commercial mortgage loans | $ 31 | $ 78 |
Consumer mortgage loans | 0 | 185 |
Consumer lines of credit | 2 | 2 |
Affordable housing partnerships | 123 | 177 |
Total funding commitments | $ 156 | $ 442 |
Commitments, Guarantees and 137
Commitments, Guarantees and Contingencies Loss Contingencies (Details 3) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Insurance-related Assessments [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Undiscounted Amount of Insurance-related Assessment Liability | $ 14 | $ 16 |
Loss contingency for guaranty fund assessments premium tax asset offset | 12 | $ 14 |
Otkritie Capital International LTD and JSC Otkririe Holding v. Threadneedle Asset Management LTD. and Threadneedle Management Services Ltd. [Member] | ||
Loss Contingencies [Line Items] | ||
Loss contingency for damages sought by plantiff | $ 106 | |
Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Minimum interest rate guarantees in fixed accounts | 1.00% | |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Minimum interest rate guarantees in fixed accounts | 5.00% |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Summary of assets by segment | ||
Total assets | $ 147,470 | $ 139,821 |
Advice & Wealth Management [Member] | ||
Summary of assets by segment | ||
Total assets | 13,270 | 12,654 |
Asset Management [Member] | ||
Summary of assets by segment | ||
Total assets | 8,393 | 7,254 |
Annuities [Member] | ||
Summary of assets by segment | ||
Total assets | 98,276 | 93,481 |
Protection [Member] | ||
Summary of assets by segment | ||
Total assets | 18,039 | 16,780 |
Corporate & Other [Member] | ||
Summary of assets by segment | ||
Total assets | $ 9,492 | $ 9,652 |
Segment Information (Details 2)
Segment Information (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Summary of segment operating results | ||||||||||||
Total segment operating revenues | $ 11,888 | $ 11,535 | $ 11,734 | |||||||||
Net Realized Gains (Losses) | 46 | 6 | 4 | |||||||||
Revenues attributable to CIEs | 94 | 128 | 446 | |||||||||
Market impact on IUL benefits, net | 1 | 24 | 7 | |||||||||
Market impact of hedges on investments | (2) | 3 | (21) | |||||||||
Total net revenues | $ 3,160 | $ 2,981 | $ 2,985 | $ 2,901 | $ 3,062 | $ 2,998 | $ 2,871 | $ 2,765 | 12,027 | 11,696 | 12,170 | |
Reconciliation of operating profit (loss) from segments to consolidated | ||||||||||||
Total segment operating earnings | 2,403 | 1,765 | 2,254 | |||||||||
Net Realized Gains (Losses) including DAC offset | 44 | 6 | 4 | |||||||||
Net income (loss) attributable to CIEs | 2 | (2) | 125 | |||||||||
Market impact on variable annuity living benefits, net | (232) | (216) | (214) | |||||||||
Market impact on IUL benefits, net | 4 | 36 | (1) | |||||||||
Market impact of hedges on investments | (2) | 3 | (21) | |||||||||
Integration and restructuring charges | (5) | (5) | ||||||||||
Income from continuing operations before income tax provision | $ 600 | $ 628 | $ 511 | $ 475 | $ 469 | $ 238 | $ 410 | $ 475 | 2,214 | 1,592 | 2,142 | |
Advice & Wealth Management [Member] | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment operating revenues | 5,506 | 5,036 | 5,013 | |||||||||
Reconciliation of operating profit (loss) from segments to consolidated | ||||||||||||
Total segment operating earnings | 1,163 | 911 | 859 | |||||||||
Asset Management [Member] | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment operating revenues | 3,077 | 2,964 | 3,254 | |||||||||
Reconciliation of operating profit (loss) from segments to consolidated | ||||||||||||
Total segment operating earnings | 740 | 621 | 761 | |||||||||
Annuities [Member] | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment operating revenues | 2,499 | 2,463 | 2,541 | |||||||||
Reconciliation of operating profit (loss) from segments to consolidated | ||||||||||||
Total segment operating earnings | 710 | 329 | 650 | |||||||||
Protection [Member] | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment operating revenues | 2,044 | 2,241 | 2,131 | |||||||||
Reconciliation of operating profit (loss) from segments to consolidated | ||||||||||||
Total segment operating earnings | 216 | 263 | 198 | |||||||||
Corporate & Other [Member] | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment operating revenues | 173 | 237 | 256 | |||||||||
Reconciliation of operating profit (loss) from segments to consolidated | ||||||||||||
Total segment operating earnings | (426) | (359) | (214) | |||||||||
Eliminations | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment operating revenues | [1] | (1,411) | (1,406) | (1,461) | ||||||||
Consolidation, Eliminations [Member] | Advice & Wealth Management [Member] | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment operating revenues | 953 | 982 | 1,035 | |||||||||
Consolidation, Eliminations [Member] | Asset Management [Member] | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment operating revenues | 47 | 44 | 43 | |||||||||
Consolidation, Eliminations [Member] | Annuities [Member] | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment operating revenues | 351 | 333 | 340 | |||||||||
Consolidation, Eliminations [Member] | Protection [Member] | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment operating revenues | 62 | 46 | 42 | |||||||||
Consolidation, Eliminations [Member] | Corporate & Other [Member] | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment operating revenues | $ (2) | $ 1 | $ 1 | |||||||||
[1] | Represents the elimination of intersegment revenues recognized for the years ended December 31, 2017, 2016 and 2015 in each segment as follows: Advice and Wealth Management ($953, $982 and $1,035, respectively); Asset Management ($47, $44 and $43, respectively); Annuities ($351, $333 and $340, respectively); Protection ($62, $46 and $42, respectively); and Corporate & Other ($(2), $1 and $1, respectively). |
Quarterly Financial Data (Un140
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenues | $ 3,160 | $ 2,981 | $ 2,985 | $ 2,901 | $ 3,062 | $ 2,998 | $ 2,871 | $ 2,765 | $ 12,027 | $ 11,696 | $ 12,170 |
Pretax income | 600 | 628 | 511 | 475 | 469 | 238 | 410 | 475 | $ 2,214 | $ 1,592 | $ 2,142 |
Net Income (Loss) Available to Common Stockholders, Basic | $ 181 | $ 503 | $ 393 | $ 403 | $ 400 | $ 215 | $ 335 | $ 364 | |||
Earnings Per Share [Abstract] | |||||||||||
Net income (in dollars per basic share) | $ 1.20 | $ 3.29 | $ 2.53 | $ 2.56 | $ 2.49 | $ 1.31 | $ 1.99 | $ 2.11 | $ 9.60 | $ 7.90 | $ 8.60 |
Net income (in dollars per diluted share) | $ 1.18 | $ 3.24 | $ 2.50 | $ 2.52 | $ 2.46 | $ 1.30 | $ 1.97 | $ 2.09 | $ 9.44 | $ 7.81 | $ 8.48 |
Weighted average common shares outstanding | |||||||||||
Basic | 151 | 153 | 155.1 | 157.5 | 160.4 | 164 | 168.3 | 172.6 | 154.1 | 166.3 | 181.7 |
Diluted | 153.8 | 155.4 | 157.5 | 160.1 | 162.4 | 165.8 | 170.1 | 174.4 | 156.7 | 168.2 | 184.2 |
Cash dividends declared per common share | $ 0.83 | $ 0.83 | $ 0.83 | $ 0.75 | $ 0.75 | $ 0.75 | $ 0.75 | $ 0.67 | $ 3.24 | $ 2.92 | $ 2.59 |
Common share price: | |||||||||||
High (in dollars per share) | 173.62 | 149.99 | 133.02 | 135.20 | 119.32 | 101.81 | 102.74 | 105.47 | 173.62 | 119.32 | |
Low (in dollars per share) | $ 147.79 | $ 128.06 | $ 118.84 | $ 110.56 | $ 86.25 | $ 84.93 | $ 84.92 | $ 76 | $ 147.79 | $ 86.25 |
SCHEDULE I - CONDENSED FINAN141
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Statement of Operations)(Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||||||||||
Management and financial advice fees | $ 6,392 | $ 5,778 | $ 5,950 | ||||||||
Other revenues | 1,010 | 1,095 | 1,260 | ||||||||
Total revenues | 12,075 | 11,735 | 12,200 | ||||||||
Banking and deposit interest expense | 48 | 39 | 30 | ||||||||
Total net revenues | $ 3,160 | $ 2,981 | $ 2,985 | $ 2,901 | $ 3,062 | $ 2,998 | $ 2,871 | $ 2,765 | 12,027 | 11,696 | 12,170 |
Expenses | |||||||||||
Benefits, claims, losses and settlement expenses | 2,233 | 2,646 | 2,261 | ||||||||
Distribution expenses | 3,399 | 3,202 | 3,276 | ||||||||
Interest and debt expense | 207 | 241 | 387 | ||||||||
General and administrative expense | 3,051 | 2,977 | 3,082 | ||||||||
Total expenses | 9,813 | 10,104 | 10,028 | ||||||||
Income tax benefit | 734 | 278 | 455 | ||||||||
Net income attributable to Ameriprise Financial | 1,480 | 1,314 | 1,562 | ||||||||
Other comprehensive income (loss), net of tax | 29 | (59) | (469) | ||||||||
Comprehensive income attributable to Ameriprise Financial | 1,509 | 1,255 | 1,153 | ||||||||
Ameriprise Financial, Inc: | |||||||||||
Revenues | |||||||||||
Management and financial advice fees | (1) | (1) | (1) | ||||||||
Net investment income | 11 | 14 | 2 | ||||||||
Other revenues | 11 | 9 | 14 | ||||||||
Total revenues | 21 | 22 | 15 | ||||||||
Banking and deposit interest expense | 5 | 1 | 0 | ||||||||
Total net revenues | 16 | 21 | 15 | ||||||||
Expenses | |||||||||||
Benefits, claims, losses and settlement expenses | 76 | 41 | 13 | ||||||||
Distribution expenses | 18 | 0 | 0 | ||||||||
Interest and debt expense | 116 | 113 | 124 | ||||||||
General and administrative expense | 249 | 192 | 193 | ||||||||
Total expenses | 459 | 346 | 330 | ||||||||
Pretax loss before equity in earnings of subsidiaries | (443) | (325) | (315) | ||||||||
Income tax benefit | (47) | (146) | (123) | ||||||||
Loss before equity in earnings of subsidiaries | (396) | (179) | (192) | ||||||||
Equity in earnings of subsidiaries | 1,876 | 1,493 | 1,754 | ||||||||
Net income attributable to Ameriprise Financial | 1,480 | 1,314 | 1,562 | ||||||||
Other comprehensive income (loss), net of tax | 29 | (59) | (409) | ||||||||
Comprehensive income attributable to Ameriprise Financial | $ 1,509 | $ 1,255 | $ 1,153 |
SCHEDULE I - CONDENSED FINAN142
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Balance Sheet) (Details 1) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Land, buildings, equipment and software, net of accumulated depreciation of $1,055 and $993, respectively | $ 626 | $ 607 | ||
Total assets | 147,470 | 139,821 | ||
Liabilities: | ||||
Total liabilities | 141,472 | 133,529 | ||
Shareholders' Equity: | ||||
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 327,506,935 and 324,006,315, respectively) | 3 | 3 | ||
Additional paid-in capital | 8,085 | 7,765 | ||
Retained earnings | 11,329 | 10,351 | ||
Treasury shares, at cost (169,246,411 and 151,789,486 shares, respectively) | (13,648) | (12,027) | ||
Accumulated other comprehensive income, net of tax, including amounts applicable to equity investment in subsidiaries | 229 | 200 | $ 253 | $ 662 |
Total liabilities and equity | 147,470 | 139,821 | ||
Ameriprise Financial, Inc: | ||||
Assets | ||||
Cash and cash equivalents | 494 | 754 | $ 661 | $ 1,257 |
Investments | 341 | 314 | ||
Loans to subsidiaries | 227 | 167 | ||
Due from subsidiaries | 382 | 452 | ||
Receivables | 5 | 10 | ||
Land, buildings, equipment and software, net of accumulated depreciation of $1,055 and $993, respectively | 236 | 221 | ||
Restricted and segregated cash | 0 | 24 | ||
Investment in subsidiaries | 8,060 | 7,739 | ||
Other assets | 1,146 | 1,240 | ||
Total assets | 10,891 | 10,921 | ||
Liabilities: | ||||
Accounts payable and accrued liabilities | 627 | 524 | ||
Due to subsidiaries | 74 | 88 | ||
Borrowings from subsidiaries | 363 | 364 | ||
Long-term debt | 2,891 | 2,917 | ||
Other liabilities | 938 | 736 | ||
Total liabilities | 4,893 | 4,629 | ||
Shareholders' Equity: | ||||
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 327,506,935 and 324,006,315, respectively) | 3 | 3 | ||
Additional paid-in capital | 8,085 | 7,765 | ||
Retained earnings | 11,329 | 10,351 | ||
Treasury shares, at cost (169,246,411 and 151,789,486 shares, respectively) | (13,648) | (12,027) | ||
Accumulated other comprehensive income, net of tax, including amounts applicable to equity investment in subsidiaries | 229 | 200 | ||
Total Ameriprise Financial, Inc. shareholders' equity | 5,998 | 6,292 | ||
Total liabilities and equity | $ 10,891 | $ 10,921 |
SCHEDULE I - CONDENSED FINAN143
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Balance Sheet - Parenthetical) (Details 2) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Accumulated depreciation | $ 1,900 | $ 1,800 |
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 | 327,506,935 | 324,006,315 |
Treasury shares | 180,872,271 | 169,246,411 |
Ameriprise Financial, Inc: | ||
Accumulated depreciation | $ 1,111 | $ 1,055 |
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 | 327,506,935 | 324,006,315 |
Treasury shares | 180,872,271 | 169,246,411 |
SCHEDULE I - CONDENSED FINAN144
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Statement of Cash Flows) (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities | |||
Net income attributable to Ameriprise Financial | $ 1,480 | $ 1,314 | $ 1,562 |
Net cash provided by (used in) operating activities | 1,701 | 2,353 | 2,691 |
Available-for-Sale securities: | |||
Proceeds from sales | 454 | 366 | 294 |
Maturities, sinking fund payments and calls | 4,957 | 4,421 | 4,542 |
Purchases | (5,419) | (6,498) | (4,562) |
Purchase of other investments | (487) | (291) | (306) |
Purchase of land, buildings, equipment and software | (162) | (92) | (133) |
Other, net | (112) | 101 | 16 |
Net cash (used in) provided by investing activities | (199) | (805) | (509) |
Cash Flows from Financing Activities | |||
Dividends paid to shareholders | (491) | (479) | (465) |
Repurchase of common shares | (1,485) | (1,707) | (1,741) |
Cash paid for purchased options with deferred premiums | (282) | (341) | (392) |
Issuance of long-term debt, net of issuance costs | 0 | 496 | 0 |
Repayments of long-term debt | (11) | (257) | (409) |
Exercise of stock options | 15 | 9 | 16 |
Other, net | (1) | 3 | 3 |
Net cash provided by (used in) financing activities | (1,785) | (1,142) | (2,396) |
Net increase (decrease) in cash and cash equivalents | (248) | 331 | (235) |
Supplemental Disclosures: | |||
Income taxes paid (received), net | 418 | 155 | 439 |
Ameriprise Financial, Inc: | |||
Cash Flows from Operating Activities | |||
Net income attributable to Ameriprise Financial | 1,480 | 1,314 | 1,562 |
Equity in earnings of subsidiaries | (1,876) | (1,493) | (1,754) |
Dividends received from subsidiaries | 1,698 | 1,465 | 1,485 |
Other operating activities, primarily with subsidiaries | 712 | 528 | 262 |
Net cash provided by (used in) operating activities | 2,014 | 1,814 | 1,555 |
Available-for-Sale securities: | |||
Proceeds from sales | 0 | 55 | 112 |
Maturities, sinking fund payments and calls | 44 | 277 | 506 |
Purchases | (77) | (129) | (28) |
Proceeds from sale of other investments | 3 | 0 | 62 |
Purchase of other investments | 0 | 0 | (5) |
Purchase of land, buildings, equipment and software | (69) | (49) | (47) |
Contributions to subsidiaries | (79) | (197) | (271) |
Return of capital from subsidiaries | 47 | 187 | 146 |
Repayment of loans from subsidiaries | 1,277 | 1,910 | 2,897 |
Issuance of loans to subsidiaries | (1,337) | (1,910) | (2,897) |
Other, net | (91) | 59 | 6 |
Net cash (used in) provided by investing activities | (282) | 203 | 481 |
Cash Flows from Financing Activities | |||
Dividends paid to shareholders | (491) | (479) | (465) |
Repurchase of common shares | (1,485) | (1,707) | (1,741) |
Cash paid for purchased options with deferred premiums | (19) | (22) | (19) |
Issuance of long-term debt, net of issuance costs | 0 | 496 | 0 |
Repayments of long-term debt | (11) | (257) | (409) |
Borrowings from subsidiaries | 15 | 0 | 3 |
Repayments of borrowings from subsidiaries | (15) | 0 | (18) |
Exercise of stock options | 15 | 9 | 16 |
Other, net | (1) | 36 | 1 |
Net cash provided by (used in) financing activities | (1,992) | (1,924) | (2,632) |
Net increase (decrease) in cash and cash equivalents | (260) | 93 | (596) |
Cash and cash equivalents at beginning of period | 754 | 661 | 1,257 |
Cash and cash equivalents at end of period | 494 | 754 | 661 |
Supplemental Disclosures: | |||
Interest paid on debt | 128 | 121 | 154 |
Income taxes paid (received), net | (368) | (112) | 378 |
Non-cash dividends from subsidiaries | $ 0 | $ 11 | $ 52 |
SCHEDULE I - CONDENSED FINAN145
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Footnotes) (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Ameriprise Financial, Inc: | |||
Guarantees, Commitments and Contingencies | |||
Maximum borrowing capacity under the line of credit | $ 366 | ||
Debt | |||
Repurchase agreements, debt | 50 | $ 50 | |
Short-term borrowings | 150 | 150 | |
Current borrowing capacity under the line of credit | 1,000 | ||
Outstanding line of credit with parent as borrower | 0 | ||
Accounting Changes and Error Corrections [Abstract] | |||
Proceeds from Lines of Credit | 15 | 0 | $ 3 |
Ameriprise Certificate Company [Member] | Ameriprise Financial, Inc: | |||
Guarantees, Commitments and Contingencies | |||
Maximum commitment under Capital Support Agreement | 50 | ||
IDS Property Casualty [Member] | Ameriprise Financial, Inc: | |||
Guarantees, Commitments and Contingencies | |||
Maximum commitment under Capital Support Agreement | 150 | ||
Ameriprise Financial Services, Inc. [Member] | Ameriprise Financial, Inc: | |||
Guarantees, Commitments and Contingencies | |||
Secured demand notes | $ 200 | ||
Assets Held under Capital Leases [Member] | |||
Accounting Changes and Error Corrections [Abstract] | |||
Quantifying Misstatement in Current Year Financial Statements, Amount | (70) | ||
Assets Held under Capital Leases [Member] | Ameriprise Financial, Inc: | |||
Accounting Changes and Error Corrections [Abstract] | |||
Quantifying Misstatement in Current Year Financial Statements, Amount | (70) | ||
Capital Lease Obligations [Member] | |||
Accounting Changes and Error Corrections [Abstract] | |||
Quantifying Misstatement in Current Year Financial Statements, Amount | $ (60) | ||
Capital Lease Obligations [Member] | Ameriprise Financial, Inc: | |||
Accounting Changes and Error Corrections [Abstract] | |||
Quantifying Misstatement in Current Year Financial Statements, Amount | (60) | ||
Retained Earnings [Member] | Ameriprise Financial, Inc: | |||
Accounting Changes and Error Corrections [Abstract] | |||
Quantifying Misstatement in Current Year Financial Statements, Amount | $ (10) |
Fair Value of Assets and Lia146
Fair Value of Assets and Liabilities Fair Vaues of Assets and Liabilities (Recurring) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | ||||
Assets | |||||
Investments segregated for regulatory purposes | $ 623 | $ 425 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Individual contracts in a liability position | [1],[2] | 3,895 | 4,262 | ||
Individual contracts in an asset position | [3] | 3,563 | 3,446 | ||
Cumulative increase(decrease) in embedded derivatives due to nonperformance | (399) | (498) | |||
GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Individual contracts in a liability position | 443 | 880 | |||
Individual contracts in an asset position | 492 | 266 | |||
Ameriprise Financial [Member] | |||||
Assets | |||||
Available-for-sale securities | 30,927 | 30,719 | |||
Separate account assets measured at NAV | 87,368 | 80,210 | |||
Ameriprise Financial [Member] | Corporate Debt Securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 15,075 | 16,236 | |||
Ameriprise Financial [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 6,611 | 6,918 | |||
Ameriprise Financial [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 4,374 | 3,367 | |||
Ameriprise Financial [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 1,580 | 1,549 | |||
Ameriprise Financial [Member] | State and municipal obligations [Member] | |||||
Assets | |||||
Available-for-sale securities | 2,463 | 2,358 | |||
Ameriprise Financial [Member] | U.S. government and agencies obligations [Member] | |||||
Assets | |||||
Available-for-sale securities | 503 | 8 | |||
Ameriprise Financial [Member] | Foreign government bonds and obligations [Member] | |||||
Assets | |||||
Available-for-sale securities | 314 | 261 | |||
Ameriprise Financial [Member] | Common stocks [Member] | |||||
Assets | |||||
Available-for-sale securities | 7 | 22 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | |||||
Assets | |||||
Cash equivalents | 2,172 | 1,826 | |||
Available-for-sale securities | 30,927 | 30,719 | |||
Trading securities | 44 | 25 | |||
Separate account assets measured at NAV | [4] | 87,368 | 80,210 | ||
Investments segregated for regulatory purposes | 623 | 425 | |||
Other assets | 3,563 | 3,446 | |||
Total assets at fair value | 124,697 | 116,651 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Policyholder account balances, future policy benefits and claims | 557 | [5] | 1,083 | [6] | |
Customer deposits | 10 | 8 | |||
Other liabilities | 3,371 | 3,195 | |||
Total liabilities at fair value | 3,938 | 4,286 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Other liabilities [Member] | |||||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Other liabilities | 43 | 24 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Interest rate derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1,104 | 1,778 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Other liabilities | 416 | 989 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Equity derivate dontracts [Member] | |||||
Assets | |||||
Other assets | 2,423 | 1,574 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Other liabilities | 2,883 | 2,135 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Credit Risk Contract [Member] | |||||
Assets | |||||
Other assets | 1 | ||||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Other liabilities | 2 | ||||
Ameriprise Financial [Member] | Recurring basis [Member] | Foreign exchange derivative contracts [Member] | |||||
Assets | |||||
Other assets | 36 | 93 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Other liabilities | 27 | 47 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Indexed annuity embedded derivatives [Member] | |||||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Policyholder account balances, future policy benefits and claims | 5 | 5 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | IUL embedded derivatives [Member] | |||||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Policyholder account balances, future policy benefits and claims | 601 | 464 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Policyholder account balances, future policy benefits and claims | (49) | [7] | 614 | [8] | |
Ameriprise Financial [Member] | Recurring basis [Member] | Corporate Debt Securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 15,075 | 16,236 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 6,611 | 6,918 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 4,374 | 3,367 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 1,580 | 1,549 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | State and municipal obligations [Member] | |||||
Assets | |||||
Available-for-sale securities | 2,463 | 2,358 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | U.S. government and agencies obligations [Member] | |||||
Assets | |||||
Available-for-sale securities | 503 | 8 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Foreign government bonds and obligations [Member] | |||||
Assets | |||||
Available-for-sale securities | 314 | 261 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Common stocks [Member] | |||||
Assets | |||||
Available-for-sale securities | 1 | 17 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Common stocks measured at NAV [Member] | |||||
Assets | |||||
Available-for-sale securities | [4] | 6 | 5 | ||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | |||||
Assets | |||||
Cash equivalents | 147 | 30 | |||
Available-for-sale securities | 504 | 16 | |||
Trading securities | 10 | 9 | |||
Investments segregated for regulatory purposes | 623 | 425 | |||
Other assets | 65 | 56 | |||
Total assets at fair value | 1,349 | 536 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Other liabilities | 21 | 10 | |||
Total liabilities at fair value | 21 | 10 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | Other liabilities [Member] | |||||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Other liabilities | 9 | 3 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | Interest rate derivative contracts [Member] | |||||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Other liabilities | 1 | 2 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | Equity derivate dontracts [Member] | |||||
Assets | |||||
Other assets | 63 | 43 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Other liabilities | 7 | 3 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | Foreign exchange derivative contracts [Member] | |||||
Assets | |||||
Other assets | 2 | 13 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Other liabilities | 4 | 2 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | U.S. government and agencies obligations [Member] | |||||
Assets | |||||
Available-for-sale securities | 503 | 8 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | Common stocks [Member] | |||||
Assets | |||||
Available-for-sale securities | 1 | 8 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | |||||
Assets | |||||
Cash equivalents | 2,025 | 1,796 | |||
Available-for-sale securities | 29,116 | 29,050 | |||
Trading securities | 34 | 16 | |||
Other assets | 3,498 | 3,390 | |||
Total assets at fair value | 34,673 | 34,252 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Policyholder account balances, future policy benefits and claims | 5 | 5 | |||
Customer deposits | 10 | 8 | |||
Other liabilities | 3,322 | 3,172 | |||
Total liabilities at fair value | 3,337 | 3,185 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Other liabilities [Member] | |||||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Other liabilities | 6 | 8 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Interest rate derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1,104 | 1,778 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Other liabilities | 415 | 987 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Equity derivate dontracts [Member] | |||||
Assets | |||||
Other assets | 2,360 | 1,531 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Other liabilities | 2,876 | 2,132 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Credit Risk Contract [Member] | |||||
Assets | |||||
Other assets | 1 | ||||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Other liabilities | 2 | ||||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Foreign exchange derivative contracts [Member] | |||||
Assets | |||||
Other assets | 34 | 80 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Other liabilities | 23 | 45 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Indexed annuity embedded derivatives [Member] | |||||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Policyholder account balances, future policy benefits and claims | 5 | 5 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Corporate Debt Securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 13,936 | 14,925 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 6,456 | 6,650 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 4,374 | 3,367 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 1,573 | 1,481 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | State and municipal obligations [Member] | |||||
Assets | |||||
Available-for-sale securities | 2,463 | 2,358 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Foreign government bonds and obligations [Member] | |||||
Assets | |||||
Available-for-sale securities | 314 | 261 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Common stocks [Member] | |||||
Assets | |||||
Available-for-sale securities | 8 | ||||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | |||||
Assets | |||||
Available-for-sale securities | 1,301 | 1,648 | |||
Total assets at fair value | 1,301 | 1,648 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Policyholder account balances, future policy benefits and claims | 552 | 1,078 | |||
Other liabilities | 28 | 13 | |||
Total liabilities at fair value | 580 | 1,091 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | Other liabilities [Member] | |||||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Other liabilities | 28 | 13 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | IUL embedded derivatives [Member] | |||||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Policyholder account balances, future policy benefits and claims | 601 | 464 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Policyholder account balances, future policy benefits and claims | (49) | 614 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | Corporate Debt Securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 1,139 | 1,311 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 155 | 268 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | $ 7 | 68 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | Common stocks [Member] | |||||
Assets | |||||
Available-for-sale securities | $ 1 | ||||
[1] | The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and indexed annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. The fair value of the SMC embedded derivative liability is included in Customer deposits on the Consolidated Balance Sheets. | ||||
[2] | The fair value of the Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $1.3 billion and $1.5 billion as of December 31, 2017 and 2016, respectively. See Note 15 for additional information related to master netting arrangements and cash collateral. See Note 4 for information about derivatives held by consolidated VIEs. | ||||
[3] | The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. | ||||
[4] | Amounts are comprised of certain financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. | ||||
[5] | The Company’s adjustment for nonperformance risk resulted in a $(399) million cumulative increase (decrease) to the embedded derivatives at December 31, 2017. | ||||
[6] | The Company’s adjustment for nonperformance risk resulted in a $(498) million cumulative increase (decrease) to the embedded derivatives at December 31, 2016. | ||||
[7] | The fair value of the GMWB and GMAB embedded derivatives included $443 million of individual contracts in a liability position and $492 million of individual contracts in an asset position at December 31, 2017. | ||||
[8] | The fair value of the GMWB and GMAB embedded derivatives included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position at December 31, 2016. |
Fair Value of Assets and Lia147
Fair Value of Assets and Liabilities Fair Value of Assets and Liabilities (Level 3 rollforwards-Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transfers from Level 1 to Level 2, Assets | $ 0 | $ 0 | $ 0 | |
Transfers from Level 2 to Level 1, Assets | 0 | 0 | 0 | |
Ameriprise Financial [Member] | Corporate Debt Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 1,311 | 1,425 | 1,518 | |
Total gains (losses) included in net income | (1) | (2) | ||
Total gains (losses) included in other comprehensive income (loss) | (8) | (21) | ||
Purchases | 138 | 54 | 189 | |
Settlements | (302) | (168) | (248) | |
Transfers into Level 3 | 1 | |||
Transfers out of Level 3 | (11) | |||
Balance, at the end of the period | 1,139 | 1,311 | 1,425 | |
Changes in unrealized gains (losses) included in income relating to assets held at end of period | 1 | (2) | ||
Ameriprise Financial [Member] | Residential mortgage backed securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 268 | 218 | 206 | |
Total gains (losses) included in net income | 1 | |||
Total gains (losses) included in other comprehensive income (loss) | 1 | (1) | (2) | |
Purchases | 132 | 209 | 334 | |
Settlements | (43) | (67) | (55) | |
Transfers into Level 3 | 20 | |||
Transfers out of Level 3 | (223) | (92) | (265) | |
Balance, at the end of the period | 155 | 268 | 218 | |
Changes in unrealized gains (losses) included in income relating to assets held at end of period | 1 | |||
Ameriprise Financial [Member] | Commercial mortgage backed securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 0 | 3 | 91 | |
Purchases | 65 | 42 | 41 | |
Settlements | (3) | (7) | ||
Transfers into Level 3 | 6 | |||
Transfers out of Level 3 | (65) | (42) | (128) | |
Balance, at the end of the period | 0 | 0 | 3 | |
Ameriprise Financial [Member] | Asset backed securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 68 | 162 | 169 | |
Total gains (losses) included in net income | (1) | 1 | ||
Total gains (losses) included in other comprehensive income (loss) | (4) | (4) | (2) | |
Purchases | 64 | 58 | 72 | |
Settlements | (29) | (2) | (22) | |
Transfers into Level 3 | 27 | 12 | 14 | |
Transfers out of Level 3 | (119) | (178) | (70) | |
Balance, at the end of the period | 7 | 68 | 162 | |
Changes in unrealized gains (losses) included in income relating to assets held at end of period | (1) | (1) | 1 | |
Ameriprise Financial [Member] | Asset backed securities [Member] | Cumulative effect of change in accounting policies [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 21 | |||
Balance, at the end of the period | 21 | |||
Ameriprise Financial [Member] | Common stocks [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 1 | 0 | 2 | |
Total gains (losses) included in net income | 1 | |||
Sales | (1) | |||
Transfers into Level 3 | 8 | 1 | ||
Transfers out of Level 3 | (9) | (2) | ||
Balance, at the end of the period | 0 | 1 | 0 | |
Ameriprise Financial [Member] | Total available-for-sale securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 1,648 | 1,808 | 1,986 | |
Total gains (losses) included in net income | [1] | 1 | (1) | (1) |
Total gains (losses) included in other comprehensive income (loss) | (11) | (5) | (25) | |
Purchases | 399 | 363 | 636 | |
Sales | (1) | |||
Settlements | (374) | (240) | (332) | |
Transfers into Level 3 | 55 | 14 | 20 | |
Transfers out of Level 3 | (416) | (312) | (476) | |
Balance, at the end of the period | 1,301 | 1,648 | 1,808 | |
Changes in unrealized gains (losses) included in income relating to assets held at end of period | [1] | (1) | 1 | (1) |
Ameriprise Financial [Member] | Total available-for-sale securities [Member] | Cumulative effect of change in accounting policies [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 21 | |||
Balance, at the end of the period | 21 | |||
Ameriprise Financial [Member] | Trading securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 0 | 1 | ||
Total gains (losses) included in net income | [1] | (1) | ||
Balance, at the end of the period | 0 | |||
Ameriprise Financial [Member] | Other derivative contracts [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | $ 0 | 0 | ||
Total gains (losses) included in net income | [2] | (2) | ||
Purchases | 2 | |||
Balance, at the end of the period | 0 | $ 0 | ||
Changes in unrealized gains (losses) included in income relating to assets held at end of period | [2] | $ (2) | ||
[1] | Included in net investment income in the Consolidated Statements of Operations. | |||
[2] | Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. |
Fair Value of Assets and Lia148
Fair Value of Assets and Liabilities Fair Value of Assets and Liabilities (Level 3 rollforwards-Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transfers from Level 1 to Level 2, Liabilities | $ 0 | $ 0 | $ 0 | |
Transfers from Level 2 to Level 1, Liabilities | 0 | 0 | 0 | |
Ameriprise Financial [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net increase (decrease) to pretax income of nonperformance risk on fair value of embedded derivative liability | (71) | 98 | 74 | |
Ameriprise Financial [Member] | IUL embedded derivatives [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 464 | 364 | 242 | |
Total gains (losses) included in net income | [1] | 87 | 13 | 27 |
Issues | 92 | 115 | 114 | |
Settlements | (42) | (28) | (19) | |
Balance, at the end of the period | 601 | 464 | 364 | |
Changes in unrealized gains/ (losses) included in income relating to liabilities held at end of period | [1] | 87 | 13 | 27 |
Ameriprise Financial [Member] | GMWB and GMAB embedded derivatives [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 614 | 851 | 479 | |
Total gains (losses) included in net income | [2] | (977) | (511) | 105 |
Issues | 326 | 295 | 271 | |
Settlements | (12) | (21) | (4) | |
Balance, at the end of the period | (49) | 614 | 851 | |
Changes in unrealized gains/ (losses) included in income relating to liabilities held at end of period | [2] | (946) | (448) | 127 |
Ameriprise Financial [Member] | Policyholder account balances, future policy benefits and claims [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 1,078 | 1,215 | 721 | |
Total gains (losses) included in net income | (890) | (498) | 132 | |
Issues | 418 | 410 | 385 | |
Settlements | (54) | (49) | (23) | |
Balance, at the end of the period | 552 | 1,078 | 1,215 | |
Changes in unrealized gains/ (losses) included in income relating to liabilities held at end of period | (859) | (435) | 154 | |
Ameriprise Financial [Member] | Contingent consideration liabilities [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 13 | 0 | ||
Total gains (losses) included in net income | [3] | 2 | ||
Issues | 13 | 13 | ||
Balance, at the end of the period | $ 28 | $ 13 | $ 0 | |
[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. | |||
[3] | Included in general and administrative expense in the Consolidated Statements of Operations. |
Fair Value of Assets and Lia149
Fair Value of Assets and Liabilities Fair Value of Assets and Liabilities (Unobservable Inputs) (Details) - Ameriprise Financial [Member] - Discounted Cash Flow Technique [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
IUL embedded derivatives [Member] | |||
Fair Value Inputs Assets (Liabilities) Quantitative Information [Line Items] | |||
Liabilities at fair value | $ 601 | $ 464 | |
Nonperformance risk (as a percent) | [1] | 0.71% | 0.82% |
GMWB and GMAB embedded derivatives [Member] | |||
Fair Value Inputs Assets (Liabilities) Quantitative Information [Line Items] | |||
Liabilities at fair value | $ (49) | $ 614 | |
Nonperformance risk (as a percent) | [1] | 0.71% | 0.82% |
GMWB and GMAB embedded derivatives [Member] | Minimum [Member] | |||
Fair Value Inputs Assets (Liabilities) Quantitative Information [Line Items] | |||
Utilization of guaranteed withdrawals (as a percent) | [2] | 0.00% | 0.00% |
Surrender rate (as a percent) | 0.10% | 0.10% | |
Market volatility (as a percent) | [3] | 3.70% | 5.30% |
GMWB and GMAB embedded derivatives [Member] | Maximum [Member] | |||
Fair Value Inputs Assets (Liabilities) Quantitative Information [Line Items] | |||
Utilization of guaranteed withdrawals (as a percent) | [2] | 42.00% | 75.60% |
Surrender rate (as a percent) | 74.70% | 66.40% | |
Market volatility (as a percent) | [3] | 16.10% | 21.20% |
Contingent consideration liabilities [Member] | |||
Fair Value Inputs Assets (Liabilities) Quantitative Information [Line Items] | |||
Liabilities at fair value | $ 28 | $ 13 | |
Contingent consideration liabilities [Member] | Minimum [Member] | |||
Fair Value Inputs Assets (Liabilities) Quantitative Information [Line Items] | |||
Discount rate | 9.00% | 9.00% | |
Corporate Debt Securities [Member] | |||
Fair Value Inputs Assets (Liabilities) Quantitative Information [Line Items] | |||
Assets at fair value | $ 1,138 | $ 1,308 | |
Corporate Debt Securities [Member] | Minimum [Member] | |||
Fair Value Inputs Assets (Liabilities) Quantitative Information [Line Items] | |||
Yield/spread to U.S. Treasuries (as a percent) | 0.70% | 0.90% | |
Corporate Debt Securities [Member] | Maximum [Member] | |||
Fair Value Inputs Assets (Liabilities) Quantitative Information [Line Items] | |||
Yield/spread to U.S. Treasuries (as a percent) | 2.30% | 2.50% | |
Corporate Debt Securities [Member] | Weighted Average [Member] | |||
Fair Value Inputs Assets (Liabilities) Quantitative Information [Line Items] | |||
Yield/spread to U.S. Treasuries (as a percent) | 1.10% | 1.30% | |
Asset-backed securities [Member] | |||
Fair Value Inputs Assets (Liabilities) Quantitative Information [Line Items] | |||
Assets at fair value | $ 7 | $ 14 | |
Asset-backed securities [Member] | Minimum [Member] | |||
Fair Value Inputs Assets (Liabilities) Quantitative Information [Line Items] | |||
Annual short-term default rate | 3.80% | 4.80% | |
Annual long-term default rate | 2.50% | 2.50% | |
Discount rate | 10.50% | 13.50% | |
Constant prepayment rate | 5.00% | 5.00% | |
Loss recovery (as a percent) | 36.40% | 36.40% | |
Asset-backed securities [Member] | Maximum [Member] | |||
Fair Value Inputs Assets (Liabilities) Quantitative Information [Line Items] | |||
Annual long-term default rate | 3.00% | ||
Constant prepayment rate | 10.00% | 10.00% | |
Loss recovery (as a percent) | 63.60% | 63.60% | |
Asset-backed securities [Member] | Weighted Average [Member] | |||
Fair Value Inputs Assets (Liabilities) Quantitative Information [Line Items] | |||
Annual long-term default rate | 2.70% | ||
Constant prepayment rate | 9.90% | 9.90% | |
Loss recovery (as a percent) | 63.20% | 62.80% | |
[1] | The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives | ||
[2] | The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. | ||
[3] | Market volatility is implied volatility of fund of funds and managed volatility funds. |
Fair Value of Assets and Lia150
Fair Value of Assets and Liabilities Fair Value of Assets & Liabilities (Non-Recurring) (Details) - Nonconsolidated VIEs [Member] - Affordable housing partnerships [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Affordable housing partnerships, impairments | $ 64 | |
Affordable housing partnerships, carrying value | 408 | $ 482 |
Nonrecurring basis [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Affordable housing partnerships, carrying value | $ 166 |
Fair Value of Assets and Lia151
Fair Value of Assets and Liabilities Fair Value of Assets and Liabilities (Financial Instruments not at FV) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | ||
Financial Liabilities | ||||
Separate account liabilities measured at NAV | $ 87,368 | $ 80,210 | ||
Ameriprise Financial [Member] | ||||
Financial Liabilities | ||||
Investment certificate reserves | 6,388 | 5,924 | ||
Separate account liabilities measured at NAV | 87,368 | 80,210 | ||
Ameriprise Financial [Member] | Carrying value [Member] | ||||
Financial Assets | ||||
Mortgage Loans, Net | 2,756 | 2,986 | ||
Policy and certificate loans | 845 | 831 | ||
Receivables | 1,537 | 1,407 | [1] | |
Restricted and segregated cash | 2,524 | 2,905 | ||
Other investments and assets | 520 | 508 | ||
Financial Liabilities | ||||
Policyholder account balances, future policy benefits and claims | 10,246 | 10,906 | ||
Investment certificate reserves | 6,390 | 5,927 | ||
Brokerage customer deposits | 3,915 | 4,112 | ||
Separate account liabilities measured at NAV | 5,177 | 4,253 | ||
Debt and other liabilities | 3,290 | 3,371 | ||
Ameriprise Financial [Member] | Recurring basis [Member] | ||||
Financial Assets | ||||
Mortgage Loans, Net | 2,752 | 2,972 | ||
Policy and certificate loans | 801 | 808 | ||
Receivables | 1,536 | 1,413 | [1] | |
Restricted and segregated cash | 2,524 | 2,905 | ||
Other investments and assets | 521 | 510 | ||
Fair value of advisor loans moved from level 2 to level 3 | 400 | |||
Financial Liabilities | ||||
Policyholder account balances, future policy benefits and claims | 10,755 | 11,417 | ||
Investment certificate reserves | 6,374 | 5,914 | ||
Brokerage customer deposits | 3,915 | 4,112 | ||
Separate account liabilities measured at NAV | [2] | 5,177 | 4,253 | |
Debt and other liabilities | 3,417 | 3,491 | ||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | ||||
Financial Assets | ||||
Receivables | 103 | 127 | [1] | |
Restricted and segregated cash | 2,524 | 2,905 | ||
Financial Liabilities | ||||
Brokerage customer deposits | 3,915 | 4,112 | ||
Debt and other liabilities | 118 | 146 | ||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | ||||
Financial Assets | ||||
Policy and certificate loans | 1 | |||
Receivables | 946 | 870 | [1] | |
Other investments and assets | 472 | 449 | ||
Financial Liabilities | ||||
Debt and other liabilities | 3,180 | 3,176 | ||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | ||||
Financial Assets | ||||
Mortgage Loans, Net | 2,752 | 2,972 | ||
Policy and certificate loans | 801 | 807 | ||
Receivables | 487 | 416 | [1] | |
Other investments and assets | 49 | 61 | ||
Financial Liabilities | ||||
Policyholder account balances, future policy benefits and claims | 10,755 | 11,417 | ||
Investment certificate reserves | 6,374 | 5,914 | ||
Debt and other liabilities | $ 119 | $ 169 | ||
[1] | In the third quarter of 2017, the Company corrected the classification of the fair value of advisor loans, net from Level 2 to Level 3 as the valuation includes a significant unobservable input. The fair value levels at December 31, 2016 have been revised to reflect this change. The fair value of advisor loans, net was $400 million at December 31, 2016. | |||
[2] | Amounts are comprised of certain financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. See Note 3 for further information. |