Cover Document
Cover Document - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 19, 2018 | |
Document Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Entity Registrant Name | AMERIPRISE FINANCIAL INC | |
Entity Common Stock, Shares Outstanding | 139,356,365 |
Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 19, 2018 | |
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-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 139,356,365 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues | ||||
Management and financial advice fees | $ 1,739 | $ 1,639 | $ 5,099 | $ 4,694 |
Distribution fees | 470 | 435 | 1,403 | 1,301 |
Net investment income | 386 | 372 | 1,201 | 1,154 |
Premiums | 363 | 348 | 1,063 | 1,035 |
Other revenues | 358 | 232 | 950 | 802 |
Total revenues | 3,316 | 3,026 | 9,716 | 8,986 |
Banking and deposit interest expense | 24 | 12 | 60 | 34 |
Total net revenues | 3,292 | 3,014 | 9,656 | 8,952 |
Expenses | ||||
Distribution expenses | 920 | 850 | 2,727 | 2,504 |
Interest credited to fixed accounts | 178 | 176 | 499 | 509 |
Benefits, claims, losses and settlement expenses | 729 | 474 | 1,858 | 1,652 |
Amortization of deferred acquisition costs | 25 | 48 | 180 | 189 |
Interest and debt expense | 50 | 52 | 181 | 154 |
General and administrative expense | 802 | 781 | 2,379 | 2,325 |
Total expenses | 2,704 | 2,381 | 7,824 | 7,333 |
Pretax income | 588 | 633 | 1,832 | 1,619 |
Income tax provision | 85 | 126 | 273 | 316 |
Net income | $ 503 | $ 507 | $ 1,559 | $ 1,303 |
Basic | ||||
Net income (in dollars per share) | $ 3.48 | $ 3.31 | $ 10.61 | $ 8.40 |
Diluted | ||||
Net income (in dollars per share) | $ 3.43 | $ 3.26 | $ 10.45 | $ 8.27 |
Supplemental Disclosures | ||||
Total other-than-temporary impairment losses on securities | $ 0 | $ 0 | $ 0 | $ (1) |
Portion of loss recognized in other comprehensive income (before taxes) | 0 | 0 | 0 | 0 |
Net impairment losses recognized in net investment income | $ 0 | $ 0 | $ 0 | $ (1) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 503 | $ 507 | $ 1,559 | $ 1,303 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | (3) | 16 | (18) | 46 |
Net unrealized gains (losses) on securities | (62) | (4) | (454) | 60 |
Net unrealized gains (losses) on derivatives | 0 | 1 | 0 | 2 |
Defined benefit plans | 0 | 0 | 0 | 5 |
Other | 0 | 0 | 0 | (1) |
Total other comprehensive income (loss), net of tax | (65) | 13 | (472) | 112 |
Total comprehensive income | $ 438 | $ 520 | $ 1,087 | $ 1,415 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Total assets | $ 145,191 | $ 147,480 |
Liabilities | ||
Policyholder account balances, future policy benefits and claims | 29,204 | 29,904 |
Separate account liabilities | 86,592 | 87,368 |
Total liabilities | 139,573 | 141,485 |
Ameriprise Financial, Inc. | ||
Common shares | 3 | 3 |
Additional paid-in capital | 8,214 | 8,085 |
Retained earnings | 12,498 | 11,326 |
Treasury shares, at cost | (14,853) | (13,648) |
Accumulated other comprehensive income, net of tax | (244) | 229 |
Total equity | 5,618 | 5,995 |
Total liabilities and equity | 145,191 | 147,480 |
Ameriprise Financial [Member] | ||
Assets | ||
Cash and cash equivalents | 2,389 | 2,484 |
Investments | 35,610 | 35,925 |
Separate account assets | 86,592 | 87,368 |
Receivables | 6,042 | 5,762 |
Deferred acquisition costs | 2,832 | 2,676 |
Restricted and segregated cash and investments | 2,493 | 3,147 |
Other assets | 7,828 | 7,826 |
Liabilities | ||
Policyholder account balances, future policy benefits and claims | 29,204 | 29,904 |
Separate account liabilities | 86,592 | 87,368 |
Customer deposits | 10,758 | 10,303 |
Short-term borrowings | 201 | 200 |
Long-term debt | 2,870 | 2,891 |
Accounts payable and accrued expenses | 1,867 | 1,975 |
Other liabilities | 6,697 | 6,575 |
Consolidated investment entities [Member] | ||
Assets | ||
Cash and cash equivalents | 89 | 136 |
Investments | 1,310 | 2,131 |
Receivables | 5 | 25 |
Other assets | 1 | 0 |
Liabilities | ||
Long-term debt | 1,370 | 2,206 |
Other liabilities | $ 14 | $ 63 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
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 | 328,430,252 | 327,506,935 |
Treasury shares | 188,610,627 | 180,872,271 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Common shares [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Treasury shares [Member] | AOCI Attributable to Parent [Member] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of change in accounting policies | Accounting Standards Update 2014-09 [Member] | $ (3) | $ (3) | ||||
Beginning balance, restated | 6,289 | $ 3 | $ 7,765 | 10,348 | $ (12,027) | $ 200 |
Beginning balance (in shares) at Dec. 31, 2016 | 154,759,904 | |||||
Beginning balance at Dec. 31, 2016 | 6,292 | $ 3 | 7,765 | 10,351 | (12,027) | 200 |
Comprehensive income (loss) [Abstract] | ||||||
Net income | 1,303 | 1,303 | ||||
Other comprehensive income (loss), net of tax | 112 | 112 | ||||
Total comprehensive income | 1,415 | |||||
Dividends to shareholders | (379) | (379) | ||||
Repurchase of common shares (in shares) | (10,184,145) | |||||
Repurchase of common shares | (1,323) | (1,323) | ||||
Share-based compensation plans (in shares) | 3,761,769 | |||||
Share-based compensation plans | 304 | 252 | 52 | |||
Ending balance (in shares) at Sep. 30, 2017 | 148,337,528 | |||||
Ending balance at Sep. 30, 2017 | 6,306 | $ 3 | 8,017 | 11,272 | (13,298) | 312 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of change in accounting policies | Cumulative effect of change in accounting policies - Recognition and measurement of financial instruments | 1 | |||||
Beginning balance (in shares) at Dec. 31, 2017 | 146,634,664 | |||||
Beginning balance at Dec. 31, 2017 | 5,995 | $ 3 | 8,085 | 11,326 | (13,648) | 229 |
Comprehensive income (loss) [Abstract] | ||||||
Net income | 1,559 | 1,559 | ||||
Other comprehensive income (loss), net of tax | (472) | (472) | ||||
Total comprehensive income | 1,087 | |||||
Dividends to shareholders | (388) | (388) | ||||
Repurchase of common shares (in shares) | (8,526,715) | |||||
Repurchase of common shares | (1,265) | (1,265) | ||||
Share-based compensation plans (in shares) | 1,711,676 | |||||
Share-based compensation plans | 189 | 129 | 60 | |||
Ending balance (in shares) at Sep. 30, 2018 | 139,819,625 | |||||
Ending balance at Sep. 30, 2018 | 5,618 | $ 3 | $ 8,214 | 12,498 | $ (14,853) | (244) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of change in accounting policies | Cumulative effect of change in accounting policies - Recognition and measurement of financial instruments | $ 0 | $ 1 | $ (1) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 1,559 | $ 1,303 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation, amortization and accretion, net | 152 | 176 |
Deferred income tax expense (benefit) | 8 | (58) |
Share-based compensation | 105 | 91 |
Net realized investment (gains) losses | (16) | (37) |
Net trading (gains) losses | (9) | (5) |
Loss from equity method investments | 44 | 41 |
Net (gains) losses of consolidated investment entities | (29) | 3 |
Changes in operating assets and liabilities: | ||
Restricted and segregated investments | 349 | 1 |
Deferred acquisition costs | (61) | (31) |
Other investments, net | (4) | (139) |
Policyholder account balances, future policy benefits and claims, net | (523) | (353) |
Derivatives, net of collateral | 353 | 589 |
Receivables | (264) | (445) |
Brokerage deposits | (488) | (47) |
Accounts payable and accrued expenses | (98) | (19) |
Other, net | 31 | 109 |
Net cash provided by (used in) operating activities | 1,109 | 1,179 |
Available-for-Sale securities: | ||
Proceeds from sales | 412 | 335 |
Maturities, sinking fund payments and calls | 5,127 | 3,583 |
Purchases | (6,463) | (3,722) |
Proceeds from sales, maturities and repayments of mortgage loans | 236 | 348 |
Funding of mortgage loans | (164) | (372) |
Proceeds from sales and collections of other investments | 607 | 211 |
Purchase of other investments | (538) | (351) |
Purchase of investments by consolidated investment entities | (327) | (1,092) |
Proceeds from sales, maturities and repayments of investments by consolidated investment entities | 920 | 1,087 |
Purchase of land, buildings, equipment and software | (117) | (125) |
Other, net | (42) | (8) |
Net cash provided by (used in) investing activities | (349) | (106) |
Investment certificates: | ||
Proceeds from additions | 4,440 | 3,595 |
Maturities, withdrawals and cash surrenders | (3,497) | (3,158) |
Policyholder account balances: | ||
Deposits and other additions | 1,511 | 1,538 |
Net transfers from (to) separate accounts | (89) | (120) |
Surrenders and other benefits | (1,406) | (1,413) |
Cash paid for purchased options with deferred premiums | (182) | (187) |
Cash received from purchased options with deferred premiums | 161 | 42 |
Repayments of long-term debt | (9) | (8) |
Dividends paid to shareholders | (380) | (368) |
Repurchase of common shares | (1,192) | (1,161) |
Exercise of stock options | 2 | 13 |
Borrowings of Consolidated Investment Entities | 566 | |
Repayments of debt by consolidated investment entities | (1,132) | (59) |
Proceeds from (Payments for) Other Financing Activities | 3 | |
Net cash provided by (used in) financing activities | (1,204) | (1,286) |
Effect of exchange rate changes on cash | (3) | 32 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (447) | (181) |
Cash, cash equivalents and restricted cash, beginning balance | 5,144 | 5,392 |
Cash, cash equivalents and restricted cash, ending balance | $ 4,697 | $ 5,211 |
Supplemental Cash Flow Disclosu
Supplemental Cash Flow Disclosures - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Supplemental Cash Flow Information [Abstract] | ||
Income taxes paid, net | $ 295 | $ 387 |
Non-cash Investing Activity: | ||
Partnership commitments not yet remitted | 1 | 9 |
Ameriprise Financial [Member] | ||
Supplemental Cash Flow Information [Abstract] | ||
Interest paid | 154 | 130 |
Consolidated investment entities [Member] | ||
Supplemental Cash Flow Information [Abstract] | ||
Interest paid | $ 90 | $ 65 |
Supplemental Cash Flow Disclo_2
Supplemental Cash Flow Disclosures - Cash Reconciliation - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Less: Restricted and segregated investments | $ (274) | $ (623) |
Total cash, cash equivalents and restricted cash per consolidated statements of cash flows | 4,697 | 5,144 |
Ameriprise Financial [Member] | ||
Cash and cash equivalents | 2,389 | 2,484 |
Restricted and segregated cash and investments | 2,493 | 3,147 |
Consolidated investment entities [Member] | ||
Cash and cash equivalents | $ 89 | $ 136 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Ameriprise Financial, Inc. is a holding company, which primarily conducts business through its subsidiaries to provide financial planning, products and services that are designed to be utilized as solutions for clients’ cash and liquidity, asset accumulation, income, protection and estate and wealth transfer needs. The foreign operations of Ameriprise Financial, Inc. are conducted primarily through 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. The interim financial information in this report has not been audited. In the opinion of management, all adjustments necessary for fair statement of the consolidated results of operations and financial position for the interim periods have been made. Except for the out-of-period correction described below and the prior period adjustments for the retrospective adoption of the new revenue recognition accounting standard, all adjustments made were of a normal recurring nature. In the first quarter of 2017, the Company recorded a $20 million decrease to income tax provision related to an out-of-period correction for a reversal of a tax reserve. The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Results of operations reported for interim periods are not necessarily indicative of results for the entire year. These Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 , filed with the Securities and Exchange Commission (“SEC”) on February 23, 2018 (“ 2017 10-K”). The Company evaluated events or transactions that may have occurred after the balance sheet date for potential recognition or disclosure through the date the financial statements were issued. No subsequent events or transactions were identified. On January 1, 2018, the Company retrospectively adopted the new accounting standard for revenue recognition. See Note 2 and Note 3 for further information on the new accounting standard and the Company’s revenue from contracts with customers. The following tables present the impact to the consolidated statements of operations for the prior periods presented: Three Months Ended September 30, 2017 Previously Reported Effect of Change As Adjusted (in millions) Revenues Management and financial advice fees $ 1,626 $ 13 $ 1,639 Distribution fees 437 (2 ) 435 Net investment income 372 — 372 Premiums 348 — 348 Other revenues 210 22 232 Total revenues 2,993 33 3,026 Banking and deposit interest expense 12 — 12 Total net revenues 2,981 33 3,014 Expenses Distribution expenses 850 — 850 Interest credited to fixed accounts 176 — 176 Benefits, claims, losses and settlement expenses 474 — 474 Amortization of deferred acquisition costs 48 — 48 Interest and debt expense 52 — 52 General and administrative expense 753 28 781 Total expenses 2,353 28 2,381 Pretax income 628 5 633 Income tax provision 125 1 126 Net income $ 503 $ 4 $ 507 Nine Months Ended September 30, 2017 Previously Reported Effect of Change As Adjusted (in millions) Revenues Management and financial advice fees $ 4,669 $ 25 $ 4,694 Distribution fees 1,310 (9 ) 1,301 Net investment income 1,154 — 1,154 Premiums 1,035 — 1,035 Other revenues 733 69 802 Total revenues 8,901 85 8,986 Banking and deposit interest expense 34 — 34 Total net revenues 8,867 85 8,952 Expenses Distribution expenses 2,505 (1 ) 2,504 Interest credited to fixed accounts 509 — 509 Benefits, claims, losses and settlement expenses 1,652 — 1,652 Amortization of deferred acquisition costs 189 — 189 Interest and debt expense 154 — 154 General and administrative expense 2,244 81 2,325 Total expenses 7,253 80 7,333 Pretax income 1,614 5 1,619 Income tax provision 315 1 316 Net income $ 1,299 $ 4 $ 1,303 The impact to the consolidated balance sheet as of December 31, 2017 was a $10 million increase to total assets, a $13 million increase to total liabilities and a $3 million |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adoption of New Accounting Standards Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“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. 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 determined that certain payments received primarily related to franchise advisor fees should be presented as revenue rather than a reduction of expense. The adoption of the standard did not have other material impacts on the Company’s consolidated results of operations and financial condition. The impact of the change was an increase to revenues of $33 million and $85 million and an increase to expenses of $28 million and $80 million for the three months and nine months ended September 30, 2017 , respectively. See Note 3 for new disclosures on revenue from contracts with customers. 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 these 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. Future Adoption of New Accounting Standards Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the FASB updated the accounting standard related to long-duration insurance contracts. The guidance revises key elements of the measurement models and disclosure requirements for long-duration insurance contracts issued by insurers and reinsurers. The guidance establishes a significant new category of benefit features called market risk benefits that protect the contract holder from other-than-nominal capital market risk and expose the insurer to that risk. Insurers will have to measure market risk benefits at fair value. Market risk benefits include variable annuity guaranteed benefits (i.e. guaranteed minimum death, withdrawal, withdrawal for life, accumulation and income benefits). The portion of the change in fair value attributable to a change in the instrument-specific credit risk of market risk benefits in a liability position will be recorded in other comprehensive income (“OCI”). Significant changes also relate to the measurement of the liability for future policy benefits for nonparticipating traditional long-duration insurance contracts and immediate annuities with a life contingent feature include the following: • Insurers will be required to review and update the cash flow assumptions used to measure the liability for future policy benefits rather than using assumptions locked in at contract inception. The review of assumptions to measure the liability for all future policy benefits will be required annually at the same time each year, or more frequently if suggested by experience. The effect of updating assumptions will be measured on a retrospective catch-up basis and presented separate from the ongoing policyholder benefit expense in the statement of operations in the period the update is made. This new unlocking process will be required for the Company’s term and whole life insurance, disability income, long term care insurance and immediate annuities with a life contingent feature . • The discount rate used to measure the liability for future policy benefits will be standardized. The current requirement to use a discount rate reflecting expected investment yields will change to an upper-medium grade (low credit risk) fixed income corporate instrument yield (generally interpreted as an “A” rating) reflecting the duration characteristics of the liability. Entities will be required to update the discount rate at each reporting date with the effect of discount rate changes reflected in OCI. • The current premium deficiency test is being replaced with a net premium ratio cap of 100%. If the net premium ratio (i.e. the ratio of the present value of total expected benefits and related expenses to the present value of total expected premiums) exceeds 100%, insurers are required to recognize a loss in the statement of operations in the period. Contracts from different issue years will no longer be permitted to be grouped to determine contracts in a loss position. In addition, the update requires d eferred acquisition costs (“DAC”) and deferred sales inducement costs (“DSIC”) relating to all long-duration contracts and most investment contracts to be amortized on a straight-line basis over the expected life of the contract independent of profit emergence. Under the new guidance, interest will not accrue to the deferred balance and DAC and DSIC will not be subject to an impairment test. The update requires significant additional disclosures, including disaggregated rollforwards of the liability for future policy benefits, policyholder account balances, market risk benefits, DAC and DSIC, as well as qualitative and quantitative information about expected cash flows, estimates and assumptions. The update is effective for interim and annual periods beginning after December 15, 2020. The standard should be applied to the liability for future policy benefits and DAC and DSIC on a modified retrospective basis and applied to market risk benefits on a retrospective basis with the option to apply full retrospective transition if certain criteria are met. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated results of operations, financial condition and disclosures. Fair Value Measurement – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB updated the accounting standards related to disclosures for fair value measurements. The update eliminates the following disclosures: 1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, 2) the policy of timing of transfers between levels of the fair value hierarchy, and 3) the valuation processes for Level 3 fair value measurements. The new disclosures include changes in unrealized gains and losses for the period included in OCI for recurring Level 3 fair value measurements of instruments held at the end of the reporting period and the range and weighted average used to develop significant unobservable inputs and how the weighted average was calculated. The new disclosures are required on a prospective basis; all other provisions should be applied retrospectively. The update is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted for the entire standard or only the provisions that eliminate or modify disclosure requirements. The Company is currently evaluating the impact of the standard on its disclosures. The update does not have an impact on the Company’s consolidated results of operations or financial condition. Compensation – Retirement Benefits – Defined Benefit Plans – General – Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB updated the accounting standards related to disclosures for sponsors of defined benefit plans. The update requires disclosure of the weighted-average interest crediting rate for cash balance plans and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The update also eliminates the disclosure of the amounts in accumulated other comprehensive income (“AOCI”) expected to be recognized as components of net period benefit cost over the next fiscal year. The update is effective for annual periods ending after December 15, 2020, and should be applied retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its disclosures. The update does not have an impact on the Company’s consolidated results of operations or financial condition. Intangibles – Goodwill and Other – Internal-Use Software – Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB updated the accounting standards related to customer’s accounting for implementation costs incurred in a cloud computing arrangement (“CCA”) that is a service contract. The update requires implementation costs for a CCA to be evaluated for capitalization using the same approach as implementation costs associated with internal-use software. The update also addresses presentation, measurement and impairment of capitalized implementation costs in a CCA that is a service contract. The update requires new disclosures on the nature of hosting arrangements that are service contracts, significant judgements made when applying the guidance and quantitative disclosures, including amounts capitalized, amortized and impaired. The update is effective for interim and annual periods beginning after December 15, 2019, and can be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated results of operations, financial condition and disclosures. Income Statement – Reporting Comprehensive Income – Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB updated the accounting standards related to the presentation of tax effects stranded in OCI. The update allows a reclassification from AOCI to retained earnings for tax effects stranded in AOCI resulting from the legislation commonly referred to as the Tax Cuts and Jobs Act (“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 does not plan to reclassify the stranded tax effects in OCI. As such, the update will not have an impact on the Company’s consolidated results of operations and 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 – Nonrefundable Fees and Other Costs – Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB updated the accounting standards to shorten the amortization period for certain purchased callable debt securities held at a premium. Under 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. Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments In June 2016, the FASB updated the accounting standards related to accounting for credit losses on certain types of financial instruments. The update replaces the current incurred loss model for estimating credit losses with a new model that requires an entity to estimate the credit losses expected over the life of the asset. 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 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 discloses information related to operating lease arrangements within Note 23 of the 2017 |
Revenue from Contract with Cust
Revenue from Contract with Customer (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from contracts with customers [Text Block] | Revenue from Contracts with Customers On January 1, 2018, the Company adopted the new accounting standard for revenue from contracts with customers on a retrospective basis. See Note 2 for additional information on the adoption of the new accounting standard. The following tables present revenue disaggregated by segment on an adjusted operating basis with a reconciliation of segment revenues to those reported on the Consolidated Statements of Operations: Three Months Ended September 30, 2018 Advice & Wealth Management Asset Management Annuities Protection Corporate & Other Total Segments Non-operating Revenue Total (in millions) Management and financial advice fees: Asset management fees: Retail $ — $ 479 $ — $ — $ — $ 479 $ — $ 479 Institutional — 125 — — — 125 — 125 Advisory fees 740 — — — — 740 — 740 Financial planning fees 75 — — — — 75 — 75 Transaction and other fees 87 48 15 2 — 152 — 152 Total management and financial advice fees 902 652 15 2 — 1,571 — 1,571 Distribution fees: Mutual funds 182 64 — — — 246 — 246 Insurance and annuity 220 44 85 9 — 358 — 358 Other products 156 — — — — 156 — 156 Total distribution fees 558 108 85 9 — 760 — 760 Other revenues 43 — — — — 43 — 43 Total revenue from contracts with customers 1,503 760 100 11 — 2,374 — 2,374 Revenue from other sources (1) 85 12 528 600 49 1,274 26 1,300 Total segment gross revenues 1,588 772 628 611 49 3,648 26 3,674 Less: Banking and deposit interest expense 24 — — — 2 26 — 26 Total segment net revenues 1,564 772 628 611 47 3,622 26 3,648 Less: intersegment revenues 235 13 91 17 (2 ) 354 2 356 Total net revenues $ 1,329 $ 759 $ 537 $ 594 $ 49 $ 3,268 $ 24 $ 3,292 Three Months Ended September 30, 2017 Advice & Wealth Management Asset Management Annuities Protection Corporate & Other Total Segments Non-operating Revenue Total (in millions) Management and financial advice fees: Asset management fees: Retail $ — $ 467 $ — $ — $ — $ 467 $ — $ 467 Institutional — 140 — — — 140 — 140 Advisory fees 641 — — — — 641 — 641 Financial planning fees 71 — — — — 71 — 71 Transaction and other fees 89 51 14 3 — 157 — 157 Total management and financial advice fees 801 658 14 3 — 1,476 — 1,476 Distribution fees: Mutual funds 186 68 — — — 254 — 254 Insurance and annuity 212 43 82 10 — 347 — 347 Other products 120 — — — — 120 — 120 Total distribution fees 518 111 82 10 — 721 — 721 Other revenues 36 — — — — 36 — 36 Total revenue from contracts with customers 1,355 769 96 13 — 2,233 — 2,233 Revenue from other sources (1) 67 15 530 465 51 1,128 18 1,146 Total segment gross revenues 1,422 784 626 478 51 3,361 18 3,379 Less: Banking and deposit interest expense 12 — — — 1 13 — 13 Total segment net revenues 1,410 784 626 478 50 3,348 18 3,366 Less: intersegment revenues 233 12 88 16 (1 ) 348 4 352 Total net revenues $ 1,177 $ 772 $ 538 $ 462 $ 51 $ 3,000 $ 14 $ 3,014 Nine Months Ended September 30, 2018 Advice & Wealth Management Asset Management Annuities Protection Corporate & Other Total Segments Non-operating Revenue Total (in millions) Management and financial advice fees: Asset management fees: Retail $ — $ 1,431 $ — $ — $ — $ 1,431 $ — $ 1,431 Institutional — 345 — — — 345 — 345 Advisory fees 2,137 — — — — 2,137 — 2,137 Financial planning fees 223 — — — — 223 — 223 Transaction and other fees 268 144 44 6 — 462 — 462 Total management and financial advice fees 2,628 1,920 44 6 — 4,598 — 4,598 Distribution fees: Mutual funds 556 201 — — — 757 — 757 Insurance and annuity 673 131 253 27 — 1,084 — 1,084 Other products 448 — — — — 448 — 448 Total distribution fees 1,677 332 253 27 — 2,289 — 2,289 Other revenues 131 2 — — — 133 — 133 Total revenue from contracts with customers 4,436 2,254 297 33 — 7,020 — 7,020 Revenue from other sources (1) 232 51 1,566 1,630 164 3,643 142 3,785 Total segment gross revenues 4,668 2,305 1,863 1,663 164 10,663 142 10,805 Less: Banking and deposit interest expense 60 — — — 4 64 — 64 Total segment net revenues 4,608 2,305 1,863 1,663 160 10,599 142 10,741 Less: intersegment revenues 722 37 271 46 (3 ) 1,073 12 1,085 Total net revenues $ 3,886 $ 2,268 $ 1,592 $ 1,617 $ 163 $ 9,526 $ 130 $ 9,656 Nine Months Ended September 30, 2017 Advice & Wealth Management Asset Management Annuities Protection Corporate & Other Total Segments Non-operating Revenue Total (in millions) Management and financial advice fees: Asset management fees: Retail $ — $ 1,367 $ — $ — $ — $ 1,367 $ — $ 1,367 Institutional — 347 — — — 347 — 347 Advisory fees 1,817 — — — — 1,817 — 1,817 Financial planning fees 210 — — — — 210 — 210 Transaction and other fees 271 155 42 6 — 474 — 474 Total management and financial advice fees 2,298 1,869 42 6 — 4,215 — 4,215 Distribution fees: Mutual funds 572 219 — — — 791 — 791 Insurance and annuity 621 125 242 25 — 1,013 — 1,013 Other products 348 — — — — 348 — 348 Total distribution fees 1,541 344 242 25 — 2,152 — 2,152 Other revenues 119 1 — — — 120 — 120 Total revenue from contracts with customers 3,958 2,214 284 31 — 6,487 — 6,487 Revenue from other sources (1) 183 42 1,577 1,485 164 3,451 102 3,553 Total segment gross revenues 4,141 2,256 1,861 1,516 164 9,938 102 10,040 Less: Banking and deposit interest expense 34 — — — 2 36 — 36 Total segment net revenues 4,107 2,256 1,861 1,516 162 9,902 102 10,004 Less: intersegment revenues 701 35 259 46 (1 ) 1,040 12 1,052 Total net revenues $ 3,406 $ 2,221 $ 1,602 $ 1,470 $ 163 $ 8,862 $ 90 $ 8,952 (1) Revenues not included in the scope of the revenue from contracts with customers standard. The amounts primarily consist of revenue associated with the manufacturing of insurance and annuity products or financial instruments. The following discussion describes the nature, timing, and uncertainty of revenues and cash flows arising from the Company’s contracts with customers on a consolidated basis. Management and Financial Advice Fees Asset Management Fees The Company earns revenue for performing asset management services for retail and institutional clients. The revenue is earned based on a fixed or tiered rate applied, as a percentage, to assets under management. Assets under management vary with market fluctuations and client behavior. The asset management performance obligation is considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. Asset management fees are accrued, invoiced and collected on a monthly or quarterly basis. The Company’s asset management contracts for Open Ended Investment Companies (“OEICs”) in the UK and Société d'Investissement à Capital Variable (“SICAVs”) in Europe include performance obligations for asset management and fund distribution services. The amounts received for these services are reported as management and financial advice fees. The revenue recognition pattern is the same for both performance obligations as the fund distribution services revenue is variably constrained due to factors outside the Company’s control including market volatility and client behavior (such as how long clients hold their investment) and not recognized until assets under management are known. The Company may also earn performance-based management fees on institutional accounts, hedge funds, collateralized loan obligations (“CLOs”), OEICs, SICAVs and property funds based on a percentage of account returns in excess of either a benchmark index or a contractually specified level. This revenue is variable and impacted primarily by the performance of the assets being managed compared to the benchmark index or contractually specified level. The revenue is not recognized until it is probable that a significant reversal will not occur. Performance-based management fees are invoiced on a quarterly or annual basis. Advisory Fees The Company earns revenue for performing investment advisory services for certain brokerage customer’s discretionary and non-discretionary managed accounts. The revenue is earned based on a contractual fixed rate applied, as a percentage, to the market value of assets held in the account. The investment advisory performance obligation is considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. Advisory fees are accrued daily and invoiced or charged on a monthly or quarterly basis. Financial Planning Fees The Company earns revenue for providing financial plans to its clients. The revenue earned for each financial plan is either a fixed fee (received monthly, quarterly or annually) or a variable fee (received monthly or quarterly) based on a contractual fixed rate applied, as a percentage, to assets held in a client’s investment advisory account. The financial planning fee is based on the complexity of a client’s financial and life situation and his or her advisor’s experience. The performance obligation is satisfied at the time the financial plan is delivered to the customer. The Company records a contract liability for the unearned revenue when cash is received before the plan is delivered. The financial plan contracts with clients are annual contracts. Amounts recorded as a contract liability are recognized as revenue when the financial plan is delivered, which occurs within the annual period. For fixed fee arrangements, revenue is recognized when the financial plan is delivered. The Company accrues revenue for any amounts that have not been received at the time the financial plan is delivered. For variable fee arrangements, revenue is recognized for cash that has been received when the financial plan is delivered. The amount received after the plan is delivered is variably constrained due to factors outside the Company’s control including market volatility and client behavior. The revenue is recognized when it is probable that a significant reversal will not occur that is generally each month or quarter end as the advisory account balance uncertainty is resolved. Contract liabilities for financial planning fees, which are included in other liabilities in the Consolidated Balance Sheets, were $128 million and $134 million as of September 30, 2018 and December 31, 2017 , respectively. The Company pays sales commissions to advisors when a new financial planning contract is obtained or when an existing contract is renewed. The sales commissions paid to the advisors prior to financial plan delivery are considered costs to obtain a contract with a customer and are initially capitalized. When the performance obligation to deliver the financial plan is satisfied, the commission is recognized as distribution expense. Capitalized costs to obtain these contracts are reported in other assets in the Consolidated Balance Sheets, and were $105 million and $109 million as of September 30, 2018 and December 31, 2017 , respectively. Transaction and Other Fees The Company earns revenue for providing customer support, shareholder and administrative services (including transfer agent services) for affiliated mutual funds and networking, sub-accounting and administrative services for unaffiliated mutual funds. The Company also receives revenue for providing custodial services and account maintenance services on brokerage and retirement accounts that are not included in an advisory relationship. Transfer agent and administrative revenue is earned based on either a fixed rate applied, as a percentage, to assets under management or an annual fixed fee for each fund position. Networking and sub-accounting revenue is earned based on either an annual fixed fee for each account or an annual fixed fee for each fund position. Custodial and account maintenance revenue is generally earned based on a quarterly or annual fixed fee for each account. Each of the customer support and administrative services performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. Transaction and other fees (other than custodial service fees) are invoiced or charged to brokerage accounts on a monthly or quarterly basis. Custodial service fees are invoiced or charged to brokerage accounts on an annual basis. Contract liabilities for custodial service fees, which are included in other liabilities in the Consolidated Balance Sheets, were $16 million and nil as of September 30, 2018 and December 31, 2017 , respectively. The Company earns revenue for providing trade execution services to franchise advisors. The trade execution performance obligation is satisfied at the time of each trade and the revenue is primarily earned based on a fixed fee per trade. These fees are invoiced and collected on a semi-monthly basis. Distribution Fees Mutual Funds and Insurance and Annuity Products The Company earns revenue for selling affiliated and unaffiliated mutual funds, fixed and variable annuities and insurance products. The performance obligation is satisfied at the time of each individual sale. A portion of the revenue is based on a fixed rate applied, as a percentage, to amounts invested at the time of sale. The remaining revenue is recognized over the time the client owns the investment or holds the contract and is generally earned based on a fixed rate applied, as a percentage, to the net asset value of the fund, or the value of the insurance policy or annuity contract. The ongoing revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company’s control including market volatility and client behavior (such as how long clients hold their investment, insurance policy or annuity contract). The revenue will not be recognized until it is probable that a significant reversal will not occur. The Company earns revenue for providing unaffiliated partners an opportunity to educate the Company’s advisors or to support availability and distribution of their products on the Company’s platforms. These payments allow the outside parties to train and support the advisors, explain the features of their products and distribute marketing and educational materials, and support trading and operational systems necessary to enable the Company’s client servicing and production distribution efforts. The Company earns revenue for placing and maintaining unaffiliated fund partners and insurance companies’ products on the Company’s sales platform (subject to the Company’s due diligence standards). The revenue is primarily earned based on a fixed fee or a fixed rate applied, as a percentage, to the market value of assets invested. These performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. These fees are invoiced and collected on monthly basis. Other Products The Company earns revenue for selling unaffiliated alternative products. The performance obligation is satisfied at the time of each individual sale. A portion of the revenue is based on a fixed rate applied, as a percentage, to amounts invested at the time of sale. The remaining revenue is recognized over the time the client owns the investment and is earned generally based on a fixed rate applied, as a percentage, to the market value of the investment. The ongoing revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company’s control including market volatility and client behavior (such as how long clients hold their investment). The revenue will not be recognized until it is probable that a significant reversal will not occur. The Company earns revenue from brokerage clients for the execution of requested trades. The performance obligation is satisfied at the time of trade execution and amounts are received on the settlement date. The revenue varies for each trade based on various factors that include the type of investment, dollar amount of the trade and how the trade is executed (online or broker assisted). The Company earns revenue for placing clients’ deposits in its brokerage sweep program with third-party banks. The amount received from the third-party banks is impacted by short-term interest rates. The performance obligation with the financial institutions that participate in the sweep program is considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. The revenue is earned daily and settled monthly based on a rate applied, as a percentage, to the deposits placed. Other Revenues The Company earns revenue from fees charged to franchise advisors for providing various services the advisors need to manage and grow their practices. The primary services include: licensing of intellectual property and software, compliance supervision, insurance coverage, technology services and support, consulting and other services. The services are either provided by the Company or third- party providers. The Company controls the services provided by third parties as it has the right to direct the third parties to perform the services, is primarily responsible for performing the services and sets the prices the advisors are charged. The Company recognizes revenue for the gross amount of the fees received from the advisors. The fees are primarily collected monthly as a reduction of commission payments. Intellectual property and software licenses, along with compliance supervision, insurance coverage, and technology services and support are primarily earned based on a monthly fixed fee. These services are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. The consulting and other services performance obligations are satisfied as the services are delivered and revenue is earned based upon the level of service requested. Prior to the implementation of the revenue recognition standard, fees received from the advisors for software licenses, compliance supervision, technology services and support, consulting, and other services were recorded as a reduction to the Company’s expenses to provide the services and totaled $26 million and $24 million for the three months ended September 30, 2018 and 2017 , respectively, and $79 million and $75 million for the nine months ended September 30, 2018 and 2017 , respectively. Receivables Receivables for revenue from contracts with customers are recognized when the performance obligation is satisfied and the Company has an unconditional right to the revenue. Receivables related to revenues from contracts with customers were $670 million and $657 million as of September 30, 2018 and December 31, 2017 |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2018 | |
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 CLOs, hedge funds, property funds and certain non-U.S. series funds (OEICs and SICAVs) (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. 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 $7 million and $6 million as of September 30, 2018 and December 31, 2017 , 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 as of both September 30, 2018 and December 31, 2017 . Hedge Funds and other Private Funds The Company has determined that consolidation is not required for hedge funds and other private 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 as of both September 30, 2018 and December 31, 2017 . 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 $70 million and $25 million as of September 30, 2018 and December 31, 2017 , 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 $364 million and $408 million as of September 30, 2018 and December 31, 2017 , respectively. The Company had a $57 million and a $97 million liability recorded as of September 30, 2018 and December 31, 2017 , 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 11 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: September 30, 2018 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Corporate debt securities $ — $ 9 $ — $ 9 Common stocks 5 1 6 12 Other investments 4 — — 4 Syndicated loans — 1,164 121 1,285 Total investments 9 1,174 127 1,310 Receivables — 5 — 5 Other assets — 1 — 1 Total assets at fair value $ 9 $ 1,180 $ 127 $ 1,316 Liabilities Debt (1) $ — $ 1,370 $ — $ 1,370 Other liabilities — 14 — 14 Total liabilities at fair value $ — $ 1,384 $ — $ 1,384 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) $ — $ 2,206 $ — $ 2,206 Other liabilities — 63 — 63 Total liabilities at fair value $ — $ 2,269 $ — $ 2,269 (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 $1.3 billion and $2.2 billion as of September 30, 2018 and December 31, 2017 , respectively. The following tables provide a summary of changes in Level 3 assets held by consolidated investment entities measured at fair value on a recurring basis: Common Stocks Syndicated Loans (in millions) Balance, July 1, 2018 $ 4 $ 111 Total gains (losses) included in: Net income 2 (1) 1 (1) Purchases — 9 Sales — (3 ) Settlements — (10 ) Transfers into Level 3 — 52 Transfers out of Level 3 — (39 ) Balance, September 30, 2018 $ 6 $ 121 Changes in unrealized gains (losses) included in income relating to assets held at $ 2 (1) $ — Common Stocks Syndicated Loans (in millions) Balance, July 1, 2017 $ 7 $ 185 Total gains (losses) included in: Net income 1 (1) (1 ) (1) Purchases — 6 Sales — (12 ) Settlements — (3 ) Transfers into Level 3 — 84 Transfers out of Level 3 (4 ) (77 ) Balance, September 30, 2017 $ 4 $ 182 Changes in unrealized gains (losses) included in income relating to assets held at $ 1 (1) $ — Common Stocks Syndicated Loans (in millions) Balance, January 1, 2018 $ 4 $ 180 Total gains (losses) included in: Net income 6 (1) 2 (1) Purchases — 51 Sales (4 ) (39 ) Settlements — (40 ) Transfers into Level 3 4 130 Transfers out of Level 3 (4 ) (163 ) Balance, September 30, 2018 $ 6 $ 121 Changes in unrealized gains (losses) included in income relating to assets held at $ 4 (1) $ — Corporate Debt Securities Common Stocks Syndicated Loans (in millions) Balance, January 1, 2017 $ — $ 5 $ 254 Total gains (losses) included in: Net income — 1 (1) — Purchases — 3 133 Sales (2 ) (1 ) (27 ) Settlements — — (56 ) Transfers into Level 3 2 2 197 Transfers out of Level 3 — (6 ) (319 ) Balance, September 30, 2017 $ — $ 4 $ 182 Changes in unrealized gains (losses) included in income relating to assets held at $ — $ 1 (1) $ (2 ) (1) (1) Included in net investment income in the Consolidated Statements of Operations. Securities and loans transferred from Level 3 primarily represent assets with fair values that are now obtained from a third-party pricing service with observable inputs or priced in active markets. Transfers out of Level 3 for the nine months ended September 30, 2018 included $2 million of common stock and $24 million of syndicated loans related to the deconsolidation of a CLO. 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 September 30, 2018 and December 31, 2017 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 11 for a description of the Company’s determination of the fair value of corporate debt securities, common stocks and other investments. Receivables For receivables of the consolidated CLOs, the carrying value approximates fair value as the nature of these assets has historically been short term and the receivables have been collectible. The fair value of these receivables is classified as Level 2. Liabilities Debt The fair value of the CLOs’ assets, typically syndicated bank loans, is more observable than the fair value of the CLOs’ debt tranches for which market activity is limited and less transparent. As a result, the fair value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The fair value of the CLOs’ debt is classified as Level 2. Other Liabilities Other liabilities consist primarily of securities purchased but not yet settled held by consolidated CLOs. The carrying value approximates fair value as the nature of these liabilities has historically been short term. The fair value of these liabilities is classified as Level 2. Fair Value Option The Company has elected the fair value option for the financial assets and liabilities of the consolidated CLOs. Management believes that the use of the fair value option better matches the changes in fair value of assets and liabilities related to the CLOs. The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected: September 30, December 31, (in millions) Syndicated loans Unpaid principal balance $ 1,307 $ 2,140 Excess unpaid principal over fair value (22 ) (71 ) Fair value $ 1,285 $ 2,069 Fair value of loans more than 90 days past due $ — $ 24 Fair value of loans in nonaccrual status — 24 Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both 3 35 Debt Unpaid principal balance $ 1,513 $ 2,340 Excess unpaid principal over fair value (143 ) (134 ) Carrying value (1) $ 1,370 $ 2,206 (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 $1.3 billion and $2.2 billion as of September 30, 2018 and December 31, 2017 , 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 and $(1) million for the three months ended September 30, 2018 and 2017 , respectively. 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 $29 million and $(3) million for the nine months ended September 30, 2018 and 2017 , respectively. Debt of the consolidated investment entities and the stated interest rates were as follows: Carrying Value Weighted Average Interest Rate September 30, December 31, September 30, December 31, (in millions) Debt of consolidated CLOs due 2025-2030 $ 1,370 $ 2,206 3.5 % 2.8 % The debt of the consolidated CLOs has both fixed and floating interest rates, which range from 0% to 11.0% |
Investments
Investments | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments [Text Block] | Investments The following is a summary of Ameriprise Financial investments: September 30, December 31, (in millions) Available-for-Sale securities, at fair value $ 30,840 $ 30,927 Mortgage loans, net 2,684 2,756 Policy and certificate loans 854 845 Other investments 1,232 1,397 Total $ 35,610 $ 35,925 Other investments primarily reflect the Company’s interests in affordable housing partnerships, trading securities, seed money investments, syndicated loans and held-to-maturity certificates of deposit with original or remaining maturities at the time of purchase of more than 90 days but less than 12 months. As of January 1, 2018, marketable equity securities were reclassified from Available-for-Sale securities to other investments due to the adoption of a new accounting standard on the recognition and measurement of financial instruments. The carrying value of held-to-maturity certificates of deposit was nil and $205 million as of September 30, 2018 and December 31, 2017 , respectively, which approximates fair value due to the short time between the purchase of the instrument and its expected realization. The following is a summary of net investment income: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in millions) Investment income on fixed maturities $ 339 $ 340 $ 1,002 $ 1,012 Net realized gains (losses) 4 (3 ) 15 35 Affordable housing partnerships (24 ) (17 ) (49 ) (42 ) Other 43 26 132 70 Consolidated investment entities 24 26 101 79 Total $ 386 $ 372 $ 1,201 $ 1,154 Available-for-Sale securities distributed by type were as follows: Description of Securities September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Noncredit OTTI (1) (in millions) Corporate debt securities $ 13,880 $ 658 $ (147 ) $ 14,391 $ — Residential mortgage backed securities 6,310 27 (112 ) 6,225 — Commercial mortgage backed securities 4,713 16 (134 ) 4,595 — Asset backed securities 1,459 30 (12 ) 1,477 2 State and municipal obligations 2,190 183 (14 ) 2,359 — U.S. government and agencies obligations 1,495 — — 1,495 — Foreign government bonds and obligations 296 10 (8 ) 298 — Total $ 30,343 $ 924 $ (427 ) $ 30,840 $ 2 Description of Securities December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses 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 agencies 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 (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 September 30, 2018 and December 31, 2017 , investment securities with a fair value of $1.9 billion and $1.7 billion , respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $1.0 billion and $803 million , respectively, may be sold, pledged or rehypothecated by the counterparty. As of September 30, 2018 and December 31, 2017 , fixed maturity securities comprised approximately 87% and 86% , respectively, 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 September 30, 2018 and December 31, 2017 , the Company’s internal analysts rated $823 million and $979 million , respectively, of securities using criteria similar to those used by NRSROs. A summary of fixed maturity securities by rating was as follows: Ratings September 30, 2018 December 31, 2017 Amortized Cost Fair Value Percent of Total Fair Value Amortized Cost Fair Value Percent of Total Fair Value (in millions, except percentages) AAA $ 12,764 $ 12,551 41 % $ 11,293 $ 11,331 37 % AA 1,659 1,801 6 1,898 2,114 7 A 4,158 4,394 14 4,760 5,243 17 BBB 10,807 11,140 36 10,317 10,989 35 Below investment grade (1) 955 954 3 1,219 1,243 4 Total fixed maturities $ 30,343 $ 30,840 100 % $ 29,487 $ 30,920 100 % (1) The amortized cost and fair value of below investment grade securities includes interest in CLOs managed by the Company of $7 million and $9 million , respectively, at September 30, 2018 , and $6 million and $7 million , respectively, at December 31, 2017 . These securities are not rated but are included in below investment grade due to their risk characteristics. As of September 30, 2018 and December 31, 2017 , approximately 35% and 37% , 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 September 30, 2018 Less than 12 months 12 months or more Total Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses (in millions, except number of securities) Corporate debt securities 366 $ 5,808 $ (105 ) 79 $ 840 $ (42 ) 445 $ 6,648 $ (147 ) Residential mortgage backed securities 177 3,137 (48 ) 145 1,675 (64 ) 322 4,812 (112 ) Commercial mortgage backed securities 116 1,987 (61 ) 85 1,245 (73 ) 201 3,232 (134 ) Asset backed securities 49 722 (7 ) 24 206 (5 ) 73 928 (12 ) State and municipal obligations 165 391 (7 ) 80 214 (7 ) 245 605 (14 ) Foreign government bonds and obligations 15 53 (3 ) 14 17 (5 ) 29 70 (8 ) Total 888 $ 12,098 $ (231 ) 427 $ 4,197 $ (196 ) 1,315 $ 16,295 $ (427 ) Description of Securities December 31, 2017 Less than 12 months 12 months or more Total Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses (in millions, except number of securities) Corporate debt securities 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 stocks — — — 4 1 (1 ) 4 1 (1 ) Total 434 $ 5,312 $ (34 ) 337 $ 3,381 $ (92 ) 771 $ 8,693 $ (126 ) 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 an increase in interest rates as well as slightly wider 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: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in millions) Beginning balance $ — $ 2 $ 2 $ 69 Credit losses for which an other-than-temporary impairment was previously recognized — — — 1 Reductions for securities sold during the period (realized) — — — (68 ) Ending balance $ — $ 2 $ 2 $ 2 Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in earnings were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in millions) Gross realized investment gains $ 4 $ 6 $ 15 $ 50 Gross realized investment losses — (2 ) (1 ) (6 ) Other-than-temporary impairments — — — (1 ) Total $ 4 $ 4 $ 14 $ 43 Other-than-temporary impairments for the nine months ended September 30, 2017 primarily related to credit losses on asset backed securities. See Note 14 for a rollforward of net unrealized investment gains (losses) included in AOCI. Available-for-Sale securities by contractual maturity as of September 30, 2018 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 3,251 $ 3,265 Due after one year through five years 6,187 6,192 Due after five years through 10 years 3,912 3,882 Due after 10 years 4,511 5,204 17,861 18,543 Residential mortgage backed securities 6,310 6,225 Commercial mortgage backed securities 4,713 4,595 Asset backed securities 1,459 1,477 Total $ 30,343 $ 30,840 Actual |
Financing Receivables
Financing Receivables | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Financing Receivables [Text Block] | Financing Receivables The Company’s financing receivables primarily include commercial mortgage loans, syndicated loans, policy loans, certificate loans, advisor loans and margin loans. Commercial mortgage loans, syndicated loans, policy loans and certificate loans are reflected in investments. Advisor loans and margin loans are recorded in receivables. Allowance for Loan Losses Policy and certificate loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy and certificate loans, the Company does not record an allowance for loan losses. The Company monitors collateral supporting margin loans and requests additional collateral when necessary in order to mitigate the risk of loss. As there is minimal risk of loss related to margin loans, the allowance for loan losses is immaterial. Commercial Mortgage Loans and Syndicated Loans The following table presents a rollforward of the allowance for loan losses for the nine months ended and the ending balance of the allowance for loan losses by impairment method: September 30, 2018 2017 (in millions) Beginning balance $ 26 $ 29 Charge-offs (2 ) — Provisions — (1 ) Ending balance $ 24 $ 28 Individually evaluated for impairment $ — $ 3 Collectively evaluated for impairment 24 25 The recorded investment in financing receivables by impairment method was as follows: September 30, December 31, (in millions) Individually evaluated for impairment $ 16 $ 17 Collectively evaluated for impairment 3,227 3,258 Total $ 3,243 $ 3,275 As of September 30, 2018 and December 31, 2017 , the Company’s recorded investment in financing receivables individually evaluated for impairment for which there was no related allowance for loan losses was $16 million and $17 million , respectively. Unearned income, unamortized premiums and discounts, and net unamortized deferred fees and costs are not material to the Company’s total loan balance. During the three months ended September 30, 2018 and 2017 , the Company purchased $36 million and $18 million , respectively, of syndicated loans, and sold $13 million and $12 million , respectively, of syndicated loans. During the nine months ended September 30, 2018 and 2017 , the Company purchased $181 million and $154 million , respectively, of syndicated loans, and sold $49 million and $16 million , respectively, of syndicated loans. The Company has not acquired any loans with deteriorated credit quality as of the acquisition date. Loans to Financial Advisors As of September 30, 2018 and December 31, 2017 , principal amounts outstanding for advisor loans were $537 million and $509 million , respectively, and allowance for loan losses were $24 million and $23 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 $18 million and $19 million as of September 30, 2018 and December 31, 2017 , respectively. The allowance for loan losses on these loans was $12 million as of both September 30, 2018 and December 31, 2017 . Credit Quality Information Nonperforming loans, which are generally loans 90 days or more past due, were $15 million and $19 million as of September 30, 2018 and December 31, 2017 , 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 September 30, 2018 and December 31, 2017 . 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 September 30, December 31, September 30, December 31, (in millions) East North Central $ 213 $ 215 8 % 8 % East South Central 96 90 4 3 Middle Atlantic 188 192 7 7 Mountain 240 256 9 9 New England 63 74 2 3 Pacific 806 812 30 29 South Atlantic 735 768 27 28 West North Central 222 235 8 8 West South Central 140 133 5 5 2,703 2,775 100 % 100 % Less: allowance for loan losses 19 19 Total $ 2,684 $ 2,756 Concentrations of credit risk of commercial mortgage loans by property type were as follows: Loans Percentage September 30, December 31, September 30, December 31, (in millions) Apartments $ 602 $ 566 22 % 20 % Hotel 44 40 2 1 Industrial 452 476 17 17 Mixed use 47 44 2 2 Office 441 492 16 18 Retail 900 937 33 34 Other 217 220 8 8 2,703 2,775 100 % 100 % Less: allowance for loan losses 19 19 Total $ 2,684 $ 2,756 Syndicated Loans The recorded investment in syndicated loans as of September 30, 2018 and December 31, 2017 was $540 million and $498 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 as of September 30, 2018 and December 31, 2017 were $1 million and $5 million , respectively. Troubled Debt Restructurings The recorded investment in restructured loans was not material as of both September 30, 2018 and December 31, 2017 . The troubled debt restructurings did not have a material impact to the Company’s allowance for loan losses or income recognized for the three months and nine months ended September 30, 2018 and 2017 . There are no |
Deferred Acquisition Costs and
Deferred Acquisition Costs and Deferred Sales Inducement Costs | 9 Months Ended |
Sep. 30, 2018 | |
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 the 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 in the third quarter of 2018 primarily reflected updated mortality assumptions on universal life (“UL”) and variable universal life (“VUL”) insurance products and lower surrender rate assumptions on variable annuities, partially offset by an unfavorable impact from updates to assumptions on utilization of guaranteed withdrawal benefits. The impact of unlocking to DAC in the third quarter of 2017 primarily reflected improved persistency and mortality on UL and VUL insurance products and a correction related to a variable annuity model assumption partially offset by updates to market-related inputs to the living benefit valuation. The balances of and changes in DAC were as follows: 2018 2017 (in millions) Balance at January 1 $ 2,676 $ 2,648 Capitalization of acquisition costs 241 220 Amortization, excluding the impact of valuation assumptions review (213 ) (201 ) Amortization, impact of valuation assumptions review 33 12 Impact of change in net unrealized (gains) losses on securities 95 (18 ) Balance at September 30 $ 2,832 $ 2,661 The balances of and changes in DSIC, which is included in other assets, were as follows: 2018 2017 (in millions) Balance at January 1 $ 276 $ 302 Capitalization of sales inducement costs 2 3 Amortization, excluding the impact of valuation assumptions review (26 ) (26 ) Amortization, impact of valuation assumptions review — (1 ) Impact of change in net unrealized (gains) losses on securities 16 1 Balance at September 30 $ 268 $ 279 |
Policyholder Account Balances,
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
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: September 30, December 31, (in millions) Policyholder account balances Fixed annuities (1) $ 9,499 $ 9,934 Variable annuity fixed sub-accounts 5,127 5,166 VUL/UL insurance 3,057 3,047 Indexed universal life (“IUL”) insurance 1,649 1,384 Other life insurance 689 720 Total policyholder account balances 20,021 20,251 Future policy benefits Variable annuity guaranteed minimum withdrawal benefits (“GMWB”) (125 ) (2) 463 Variable annuity guaranteed minimum accumulation benefits (“GMAB”) (83 ) (3) (80 ) (3) Other annuity liabilities 26 78 Fixed annuity life contingent liabilities 1,464 1,484 Life and disability income insurance 1,219 1,221 Long term care insurance 4,997 4,896 VUL/UL and other life insurance additional liabilities 807 688 Total future policy benefits 8,305 8,750 Policy claims and other policyholders’ funds 878 903 Total policyholder account balances, future policy benefits and claims $ 29,204 $ 29,904 (1) Includes fixed deferred annuities, non-life contingent fixed payout annuities and indexed annuity host contracts. (2) Includes the fair value of GMWB embedded derivatives that was a net asset as of September 30, 2018 reported as a contra liability. (3) Includes the fair value of GMAB embedded derivatives that was a net asset as of both September 30, 2018 and December 31, 2017 reported as a contra liability. Separate account liabilities consisted of the following: September 30, December 31, (in millions) Variable annuity $ 74,317 $ 75,174 VUL insurance 7,338 7,352 Other insurance 33 34 Threadneedle investment liabilities 4,904 4,808 Total $ 86,592 $ 87,368 |
Variable Annuity and Insurance
Variable Annuity and Insurance Guarantees | 9 Months Ended |
Sep. 30, 2018 | |
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 guaranteed minimum death benefit (“GMDB”) provisions. The Company also offers variable annuities with death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as gain gross-up (“GGU”) benefits. In addition, the Company offers contracts with GMWB and GMAB provisions. The Company previously offered contracts containing guaranteed minimum income benefit (“GMIB”) provisions. Certain UL policies offered by the Company provide secondary guarantee benefits. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities: Variable Annuity Guarantees by Benefit Type (1) September 30, 2018 December 31, 2017 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 $ 61,379 $ 59,441 $ 12 67 $ 61,418 $ 59,461 $ 9 66 Five/six-year reset 8,504 5,781 11 66 8,870 6,149 12 66 One-year ratchet 6,215 5,864 19 69 6,548 6,187 11 69 Five-year ratchet 1,471 1,416 1 65 1,563 1,506 1 65 Other 1,126 1,107 63 72 1,099 1,075 50 72 Total — GMDB $ 78,695 $ 73,609 $ 106 67 $ 79,498 $ 74,378 $ 83 66 GGU death benefit $ 1,105 $ 1,055 $ 129 70 $ 1,118 $ 1,067 $ 133 70 GMIB $ 208 $ 192 $ 7 69 $ 233 $ 216 $ 7 69 GMWB: GMWB $ 2,252 $ 2,245 $ 1 72 $ 2,508 $ 2,500 $ 1 71 GMWB for life 44,871 44,776 217 68 44,375 44,259 129 67 Total — GMWB $ 47,123 $ 47,021 $ 218 68 $ 46,883 $ 46,759 $ 130 67 GMAB $ 2,762 $ 2,758 $ — 59 $ 3,086 $ 3,083 $ — 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. 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: September 30, 2018 December 31, 2017 Net Amount Weighted Average Attained Age Net Amount Weighted Average Attained Age (in millions, except age) UL secondary guarantees $ 6,499 66 $ 6,460 65 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, 2017 $ 16 $ 8 $ 1,017 $ (24 ) $ 434 Incurred claims 3 — (478 ) (49 ) 59 Paid claims (3 ) (1 ) — — (22 ) Balance at September 30, 2017 $ 16 $ 7 $ 539 $ (73 ) $ 471 Balance at January 1, 2018 $ 17 $ 6 $ 463 $ (80 ) $ 489 Incurred claims 5 — (588 ) (3 ) 171 Paid claims (4 ) — — — (19 ) Balance at September 30, 2018 $ 18 $ 6 $ (125 ) $ (83 ) $ 641 (1) The incurred claims for GMWB and GMAB include the change in the fair value of the liabilities (contra liabilities) less paid claims. The liabilities for guaranteed benefits are supported by general account assets. The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: September 30, December 31, (in millions) Mutual funds: Equity $ 44,968 $ 46,038 Bond 22,846 23,529 Other 6,059 5,109 Total mutual funds $ 73,873 $ 74,676 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, December 31, September 30, December 31, (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 28 38 Other (1) (8 ) 3 Total long-term debt 2,870 2,891 Short-term borrowings: Federal Home Loan Bank (“FHLB”) advances 151 150 2.3 1.5 Repurchase agreements 50 50 2.3 1.4 Total short-term borrowings 201 200 Total $ 3,071 $ 3,091 (1) Amounts include adjustments for fair value hedges on the Company’s long-term debt and unamortized discount and debt issuance costs. See Note 13 for information on the Company’s fair value hedges. 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 September 30, 2018 and December 31, 2017 , the Company has pledged $53 million and $43 million , respectively, of agency residential mortgage backed securities and nil and $8 million , respectively, of commercial mortgage backed securities. The remaining maturity of outstanding repurchase agreements was less than three months as of September 30, 2018 and less than one month as of December 31, 2017 . 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 $788 million and $750 million as of September 30, 2018 and December 31, 2017 , respectively. The remaining maturity of outstanding FHLB advances was less than three months as of September 30, 2018 and less than four months as of December 31, 2017 . The stated interest rate of the FHLB advances is a weighted average annualized interest rate on 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 $1.0 billion upon satisfaction of certain approval requirements. As of both September 30, 2018 and December 31, 2017 , the Company had no borrowings outstanding and $1 million of letters of credit issued against the facility. 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 September 30, 2018 and December 31, 2017 |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
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: September 30, 2018 Level 1 Level 2 Level 3 Total (in millions) Assets Cash equivalents $ 168 $ 1,793 $ — $ 1,961 Available-for-Sale securities: Corporate debt securities — 13,399 992 14,391 Residential mortgage backed securities — 6,116 109 6,225 Commercial mortgage backed securities — 4,595 — 4,595 Asset backed securities — 1,468 9 1,477 State and municipal obligations — 2,359 — 2,359 U.S. government and agency obligations 1,495 — — 1,495 Foreign government bonds and obligations — 298 — 298 Total Available-for-Sale securities 1,495 28,235 1,110 30,840 Equity securities 1 1 — 2 Equity securities at net asset value (“NAV”) 6 (1) Trading securities 17 27 — 44 Separate account assets at NAV 86,592 (1) Investments segregated for regulatory purposes 274 — — 274 Other assets: Interest rate derivative contracts — 617 — 617 Equity derivative contracts 87 2,598 — 2,685 Credit derivative contracts — 7 — 7 Foreign exchange derivative contracts 2 43 — 45 Total other assets 89 3,265 — 3,354 Total assets at fair value $ 2,044 $ 33,321 $ 1,110 $ 123,073 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 4 $ 11 $ 15 IUL embedded derivatives — — 684 684 GMWB and GMAB embedded derivatives — — (686 ) (686 ) (2) Total policyholder account balances, future policy benefits and claims — 4 9 13 (3) Customer deposits — 12 — 12 Other liabilities: Interest rate derivative contracts 1 602 — 603 Equity derivative contracts 14 3,223 — 3,237 Foreign exchange derivative contracts 1 27 — 28 Other 20 10 29 59 Total other liabilities 36 3,862 29 3,927 Total liabilities at fair value $ 36 $ 3,878 $ 38 $ 3,952 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 agencies obligations 503 — — 503 Foreign government bonds and obligations — 314 — 314 Common stocks 1 — — 1 Common stocks at 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 ) (4) Total policyholder account balances, future policy benefits and claims — 5 552 557 (5) 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 (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 $178 million of individual contracts in a liability position and $864 million of individual contracts in an asset position as of September 30, 2018 . (3) The Company’s adjustment for nonperformance risk resulted in a $(370) million cumulative increase (decrease) to the embedded derivatives as of September 30, 2018 . (4) 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 as of December 31, 2017 . (5) The Company’s adjustment for nonperformance risk resulted in a $(399) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2017 . 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 Other Derivatives Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance, July 1, 2018 $ 1,040 $ 120 $ 52 $ 31 $ 1,243 $ 2 Total gains (losses) included in: Net income — — — — — (2 ) (1) Other comprehensive income (loss) (2 ) — — 1 (1 ) — Purchases — 20 — — 20 — Settlements (46 ) (5 ) — (1 ) (52 ) — Transfers out of Level 3 — (26 ) (52 ) (22 ) (100 ) — Balance, September 30, 2018 $ 992 $ 109 $ — $ 9 $ 1,110 $ — Changes in unrealized gains (losses) relating to assets held at September 30, 2018 $ — $ — $ — $ — $ — $ (2 ) (1) Policyholder Account Balances, Future Policy Benefits and Claims Other Liabilities Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, July 1, 2018 $ 8 $ 620 $ (425 ) $ 203 $ 29 Total (gains) losses included in: Net income — 55 (2) (344 ) (1) (289 ) — Issues 3 24 90 117 — Settlements — (15 ) (7 ) (22 ) — Balance, September 30, 2018 $ 11 $ 684 $ (686 ) $ 9 $ 29 Changes in unrealized (gains) losses relating to liabilities held at September 30, 2018 $ — $ 55 (2) $ (347 ) (1) $ (292 ) $ — Available-for-Sale Securities Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Common Stocks Total (in millions) Balance, July 1, 2017 $ 1,333 $ 172 $ — $ 33 $ — $ 1,538 Total gains (losses) included in: Other comprehensive income (1 ) 1 — (2 ) 1 (1 ) Purchases 39 — 65 10 — 114 Settlements (104 ) (9 ) — — — (113 ) Transfers into Level 3 — 20 — 13 — 33 Transfers out of Level 3 — (19 ) — (19 ) — (38 ) Balance, September 30, 2017 $ 1,267 $ 165 $ 65 $ 35 $ 1 $ 1,533 Changes in unrealized gains (losses) relating to assets held at September 30, 2017 $ — $ — $ — $ — $ — $ — Policyholder Account Balances, Future Policy Benefits and Claims Other Liabilities IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, July 1, 2017 $ 527 $ 272 $ 799 $ 14 Total (gains) losses included in: Net income 35 (2) (309 ) (1) (274 ) — Issues 26 84 110 13 Settlements (11 ) (2 ) (13 ) — Balance, September 30, 2017 $ 577 $ 45 $ 622 $ 27 Changes in unrealized (gains) losses relating to liabilities held at September 30, 2017 $ 35 (2) $ (307 ) (1) $ (272 ) $ — Available-for-Sale Securities Other Derivatives Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance, January 1, 2018 $ 1,139 $ 155 $ — $ 7 $ 1,301 $ — Total gains (losses) included in: Net income (1 ) — — — (1 ) (4) (3 ) (1) Other comprehensive income (loss) (28 ) 1 — 1 (26 ) — Purchases 15 20 52 32 119 3 Settlements (133 ) (24 ) — (1 ) (158 ) — Transfers into Level 3 — — — 2 2 — Transfers out of Level 3 — (43 ) (52 ) (32 ) (127 ) — Balance, September 30, 2018 $ 992 $ 109 $ — $ 9 $ 1,110 $ — Changes in unrealized gains (losses) relating to assets held at September 30, 2018 $ (1 ) $ — $ — $ — $ (1 ) (4) $ (3 ) (1) Policyholder Account Balances, Future Policy Benefits and Claims Other Liabilities Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2018 $ — $ 601 $ (49 ) $ 552 $ 28 Total (gains) losses included in: Net income — 56 (2) (875 ) (1) (819 ) 1 (3) Issues 11 65 257 333 — Settlements — (38 ) (19 ) (57 ) — Balance, September 30, 2018 $ 11 $ 684 $ (686 ) $ 9 $ 29 Changes in unrealized (gains) losses relating to liabilities held at September 30, 2018 $ — $ 56 (2) $ (868 ) (1) $ (812 ) $ — 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: Other comprehensive income 1 2 — — 1 4 Purchases 109 132 65 64 — 370 Settlements (154 ) (34 ) — (15 ) — (203 ) Transfers into Level 3 — 20 — 27 8 55 Transfers out of Level 3 — (223 ) — (109 ) (9 ) (341 ) Balance, September 30, 2017 $ 1,267 $ 165 $ 65 $ 35 $ 1 $ 1,533 Changes in unrealized gains (losses) relating to assets held at September 30, 2017 $ — $ — $ — $ (1 ) $ — $ (1 ) (4) Policyholder Account Balances, Future Policy Benefits and Claims Other Liabilities IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2017 $ 464 $ 614 $ 1,078 $ 13 Total (gains) losses included in: Net income 75 (2) (798 ) (1) (723 ) 1 (3) Issues 70 238 308 13 Settlements (32 ) (9 ) (41 ) — Balance, September 30, 2017 $ 577 $ 45 $ 622 $ 27 Changes in unrealized (gains) losses relating to liabilities held at September 30, 2017 $ 75 (2) $ (771 ) (1) $ (696 ) $ — (1) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. (2) Included in interest credited to fixed accounts in the Consolidated Statements of Operations. (3) Included in general and administrative expense in the Consolidated Statements of Operations. (4) Included in net investment income 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 $(58) million and $(37) million , net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the three months ended September 30, 2018 and 2017 , respectively. The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $(10) million and $(91) million , net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the nine months ended September 30, 2018 and 2017 , 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: September 30, 2018 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 991 Discounted cash flow Yield/spread to U.S. Treasuries 0.7 % – 2.4% 1.1 % Asset backed securities $ 9 Discounted cash flow Annual short-term default rate 2.3% Annual long-term default rate 2.5% – 3.5% 3.0 % Discount rate 11.5% Constant prepayment rate 5.0 % – 10.0% 10.0 % Loss recovery 36.4 % – 63.6% 63.6 % IUL embedded derivatives $ 684 Discounted cash flow Nonperformance risk (1) 83 bps Indexed annuity embedded derivatives $ 11 Discounted cash flow Surrender rate 0.0 % – 50.0% Nonperformance risk (1) 83 bps GMWB and GMAB embedded derivatives $ (686 ) Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0 % – 36.0% Surrender rate 0.1 % – 73.4% Market volatility (3) 3.7 % – 15.5% Nonperformance risk (1) 83 bps Contingent consideration liabilities $ 29 Discounted cash flow Discount rate 9.0% 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 liabilities $ 28 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 nonperformance risk and surrender rate used in the fair value measurement of the indexed annuity embedded derivatives in isolation would result in a significantly lower (higher) liability value. Significant increases (decreases) in utilization and volatility used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would 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, Equity 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, commercial mortgage backed securities and asset backed securities. The fair value of corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and certain asset backed securities classified as Level 3 is typically based on a single non-binding broker quote. The underlying inputs used for some of the non-binding broker quotes are not readily available to the Company. The Company’s privately placed corporate bonds are typically based on a single non-binding broker quote. The fair value of 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 fair value of certain derivatives measured using pricing models which include significant unobservable inputs are classified as Level 3 within the fair value hierarchy. Other derivative contracts consist of the Company’s macro hedge derivatives that contain settlement provisions linked to both equity returns and interest rates. See Note 13 for further information on the macro hedge program. The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial as of both September 30, 2018 and December 31, 2017 . See Note 12 and Note 13 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 equity indexed annuity 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 (“SMC”). 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 as of both September 30, 2018 and December 31, 2017 . See Note 12 and Note 13 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). The balance of affordable housing partnerships measured at fair value on a nonrecurring basis was $132 million and $166 million as of September 30, 2018 and December 31, 2017 , respectively, and is classified as Level 3 in the fair value hierarchy. Asset and Liabilities Not Reported at Fair Value The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value: September 30, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,684 $ — $ — $ 2,620 $ 2,620 Policy and certificate loans 854 — — 805 805 Receivables 1,653 118 1,023 503 1,644 Restricted and segregated cash 2,219 2,219 — — 2,219 Other investments and assets 559 — 525 37 562 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 9,786 $ — $ — $ 9,846 $ 9,846 Investment certificate reserves 7,319 — — 7,303 7,303 Brokerage customer deposits 3,427 3,427 — — 3,427 Separate account liabilities at NAV 5,275 5,275 (1) Debt and other liabilities 3,249 124 3,055 72 3,251 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 (2) 725 — 677 49 726 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 (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) Amounts have been corrected to include certificates of deposit with original or remaining maturities at the time of purchase of more than 90 days but less than 12 months of $205 million as of December 31, 2017. The certificates of deposit are classified as Level 2 and recorded at cost, which is a reasonable estimate of fair value because of the short time between the purchase of the instrument and its expected realization. See Note 6 for additional information on mortgage loans, policy loans and certificate loans. Receivables include brokerage margin loans, securities borrowed and loans to financial advisors. Restricted and segregated cash includes cash segregated under federal and other regulations held in special reserve bank accounts for the exclusive benefit of the Company’s brokerage customers. Other investments and assets primarily include syndicated loans, certificate of deposits with original or remaining maturities at the time of purchase of more than 90 days but less than 12 months, the Company’s membership in the FHLB and investments related to the Community Reinvestment Act. See Note 6 for additional information on syndicated loans. |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
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 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: September 30, 2018 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 Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,327 $ — $ 3,327 $ (2,895 ) $ (413 ) $ (5 ) $ 14 OTC cleared 10 — 10 (9 ) — — 1 Exchange-traded 17 — 17 (1 ) — — 16 Total derivatives 3,354 — 3,354 (2,905 ) (413 ) (5 ) 31 Securities borrowed 118 — 118 (15 ) — (100 ) 3 Total $ 3,472 $ — $ 3,472 $ (2,920 ) $ (413 ) $ (105 ) $ 34 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 Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,520 $ — $ 3,520 $ (2,653 ) $ (760 ) $ (88 ) $ 19 OTC cleared 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 (1) Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements: September 30, 2018 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,856 $ — $ 3,856 $ (2,895 ) $ (117 ) $ (843 ) $ 1 OTC cleared 9 — 9 (9 ) — — — Exchange-traded 3 — 3 (1 ) — — 2 Total derivatives 3,868 — 3,868 (2,905 ) (117 ) (843 ) 3 Securities loaned 124 — 124 (15 ) — (105 ) 4 Repurchase agreements 51 — 51 — — (51 ) — Total $ 4,043 $ — $ 4,043 $ (2,920 ) $ (117 ) $ (999 ) $ 7 December 31, 2017 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,309 $ — $ 3,309 $ (2,653 ) $ (70 ) $ (579 ) $ 7 OTC cleared 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 (1) Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. In the tables above, the amount of assets or liabilities presented are offset first by financial instruments that have the right of offset under master netting or similar arrangements, then any remaining amount is reduced by the amount of cash and securities collateral. The actual collateral may be greater than amounts presented in the tables. When the fair value of collateral accepted by the Company is less than the amount due to the Company, there is a risk of loss if the counterparty fails to perform or provide additional collateral. To mitigate this risk, the Company monitors collateral values regularly and requires additional collateral when necessary. When the value of collateral pledged by the Company declines, it may be required to post additional collateral. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2018 | |
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 12 for additional information regarding the estimated fair value of the Company’s freestanding derivatives after considering the effect of master netting arrangements and collateral. 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: September 30, 2018 December 31, 2017 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 $ 8 $ — $ 675 $ 23 $ — Foreign exchange contracts — — — 87 — 4 Total qualifying hedges 675 8 — 762 23 4 Derivatives not designated as hedging instruments Interest rate contracts 59,482 609 603 66,043 1,081 416 Equity contracts 56,352 2,685 3,237 59,292 2,423 2,883 Credit contracts 862 7 — 721 — 2 Foreign exchange contracts 4,307 45 28 4,163 36 23 Other contracts 1,350 — — 452 — — Total non-designated hedges 122,353 3,346 3,868 130,671 3,540 3,324 Embedded derivatives GMWB and GMAB (4) N/A — (686 ) N/A — (49 ) IUL N/A — 684 N/A — 601 Indexed annuities N/A — 15 N/A — 5 SMC N/A — 12 N/A — 10 Total embedded derivatives N/A — 25 N/A — 567 Total derivatives $ 123,028 $ 3,354 $ 3,893 $ 131,433 $ 3,563 $ 3,895 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 $870 million and $1.3 billion as of September 30, 2018 and December 31, 2017 , respectively. See Note 12 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 September 30, 2018 included $178 million of individual contracts in a liability position and $864 million of individual contracts in an asset position. 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. See Note 11 for additional information regarding the Company’s fair value measurement of derivative instruments. As of September 30, 2018 and December 31, 2017 , investment securities with a fair value of $5 million and $89 million , respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $5 million and $89 million , respectively, may be sold, pledged or rehypothecated by the Company. As of both September 30, 2018 and December 31, 2017 , the Company had sold, pledged or rehypothecated nil of these securities. In addition, as of both September 30, 2018 and December 31, 2017 , 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 tables present 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) Three Months Ended September 30, 2018 Interest rate contracts $ 6 $ — $ — $ — $ (205 ) $ — Equity contracts (1 ) 1 17 34 (229 ) 3 Credit contracts — — — — 4 — Foreign exchange contracts 1 — — — — (5 ) Other contracts — — — — (2 ) — GMWB and GMAB embedded derivatives — — — — 261 — IUL embedded derivatives — — — (40 ) — — SMC embedded derivatives — (2 ) — — — — Total gain (loss) $ 6 $ (1 ) $ 17 $ (6 ) $ (171 ) $ (2 ) Nine Months Ended September 30, 2018 Interest rate contracts $ 28 $ — $ — $ — $ (738 ) $ — Equity contracts (1 ) 2 22 37 (341 ) 5 Credit contracts — — — — 22 — Foreign exchange contracts 1 — — — (1 ) (13 ) Other contracts — — — — (4 ) — GMWB and GMAB embedded derivatives — — — — 637 — IUL embedded derivatives — — — (18 ) — — SMC embedded derivatives — (2 ) — — — — Total gain (loss) $ 28 $ — $ 22 $ 19 $ (425 ) $ (8 ) 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) Three Months Ended September 30, 2017 Interest rate contracts $ (1 ) $ — $ — $ — $ 14 $ — Equity contracts (10 ) 1 13 18 (261 ) 2 Credit contracts — — — — (3 ) — Foreign exchange contracts — — 1 — 1 1 Other contracts — — — — (2 ) — GMWB and GMAB embedded derivatives — — — — 227 — IUL embedded derivatives — — — (24 ) — — SMC embedded derivatives — (1 ) — — — — Total gain (loss) $ (11 ) $ — $ 14 $ (6 ) $ (24 ) $ 3 Nine Months Ended September 30, 2017 Interest rate contracts $ (8 ) $ — $ — $ — $ 61 $ — Equity contracts (7 ) 3 36 50 (920 ) 7 Credit contracts — — — — (22 ) — Foreign exchange contracts — — 3 — (27 ) 5 Other contracts — — — — (2 ) — GMWB and GMAB embedded derivatives — — — — 569 — IUL embedded derivatives — — — (43 ) — — SMC embedded derivatives — (3 ) — — — — Total gain (loss) $ (15 ) $ — $ 39 $ 7 $ (341 ) $ 12 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 using options (equity index, interest rate swaptions, etc.), swaps (interest rate, total return, etc.) and futures. The deferred premium associated with certain of the above options and swaptions is paid or received semi-annually over the life of the contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of September 30, 2018 : Premiums Payable Premiums Receivable (in millions) 2018 (1) $ 54 $ 31 2019 294 171 2020 216 132 2021 187 119 2022 225 200 2023 - 2027 545 59 Total $ 1,521 $ 712 (1) 2018 amounts represent the amounts payable and receivable for the period from October 1, 2018 to December 31, 2018 . Actual timing and payment amounts may differ due to future settlements, modifications or exercises of the contracts prior to the full premium being paid or received. The Company has a macro hedge program to provide protection against the statutory tail scenario risk arising from variable annuity reserves on its statutory surplus and to cover some of the residual risks not covered by other hedging activities. As a means of economically hedging these risks, the Company may use a combination of futures, options, swaps and swaptions. Certain of the macro hedge derivatives 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 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 three months and nine months ended September 30, 2018 and 2017 , amounts recognized in earnings related to cash flow hedges due to ineffectiveness were not material. The estimated net amount of existing pretax gains as of September 30, 2018 that the Company expects to reclassify to earnings within the next twelve months is $1 million , which consists of $1 million of pretax gains to be recorded as a reduction to interest and debt expense and nil 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 17 years and relates to forecasted debt interest payments. See Note 14 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 Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in millions) Interest rate contracts Interest and debt expense $ 3 $ 4 $ 9 $ 12 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 three months ended September 30, 2018 and 2017 , the Company recognized a gain of $7 million and a loss of $4 million , respectively, in OCI. For the nine months ended September 30, 2018 and 2017 , the Company recognized a gain of $13 million and a loss of $3 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 12 for additional information on the Company’s credit exposure related to derivative assets. Certain of the Company’s derivative contracts contain provisions that adjust the level of collateral the Company is required to post based on the Company’s 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 September 30, 2018 and December 31, 2017 , the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $483 million and $372 million , respectively. The aggregate fair value of assets posted as collateral for such instruments as of September 30, 2018 and December 31, 2017 was $482 million and $369 million , respectively. If the credit contingent provisions of derivative contracts in a net liability position as of September 30, 2018 and December 31, 2017 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 $1 million and $3 million |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity [Text Block] | Shareholders’ Equity The following tables provide the amounts related to each component of OCI: Three Months Ended September 30, 2018 2017 Pretax Income Tax Benefit (Expense) Net of Tax 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) $ (106 ) $ 25 $ (81 ) $ 60 $ (22 ) $ 38 Reclassification of net securities (gains) losses included in net income (2) (4 ) 1 (3 ) (4 ) 1 (3 ) Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables 28 (6 ) 22 (61 ) 22 (39 ) Net unrealized securities gains (losses) (82 ) 20 (62 ) (5 ) 1 (4 ) 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: Net gain (loss) arising during the period — — — — — — Defined benefit plans — — — — — — Foreign currency translation (5 ) 2 (3 ) 25 (9 ) 16 Other — — — — — — Total other comprehensive income (loss) $ (87 ) $ 22 $ (65 ) $ 21 $ (8 ) $ 13 Nine Months Ended September 30, 2018 2017 Pretax Income Tax Benefit (Expense) Net of Tax 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) $ (924 ) $ 207 $ (717 ) $ 304 $ (107 ) $ 197 Reclassification of net securities (gains) losses included in net income (2) (14 ) 3 (11 ) (43 ) 15 (28 ) Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables 347 (73 ) 274 (168 ) 59 (109 ) Net unrealized securities gains (losses) (591 ) 137 (454 ) 93 (33 ) 60 Net unrealized derivatives gains (losses) : Reclassification of net derivative (gains) losses included in net income (4) — — — 3 (1 ) 2 Net unrealized derivatives gains (losses) — — — 3 (1 ) 2 Defined benefit plans: Net gain (loss) arising during the period — — — 7 (2 ) 5 Defined benefit plans — — — 7 (2 ) 5 Foreign currency translation (21 ) 3 (18 ) 71 (25 ) 46 Other — — — (1 ) — (1 ) Total other comprehensive income (loss) $ (612 ) $ 140 $ (472 ) $ 173 $ (61 ) $ 112 (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) Pretax amounts are recorded in net investment income. (3) Includes nil pretax gain reclassified to interest and debt expense for both the three months ended September 30, 2018 and 2017 , and nil and $1 million pretax loss reclassified to net investment income for the three months ended September 30, 2018 and 2017 , respectively. (4) Includes a $1 million pretax gain reclassified to interest and debt expense for both the nine months ended September 30, 2018 and 2017 , and a $1 million and $3 million pretax loss reclassified to net investment income for the nine months ended September 30, 2018 and 2017 , respectively. 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 tables present the changes in the balances of each component of AOCI, net of tax: Net Unrealized Securities Gains (Losses) Net Unrealized Derivatives Gains (Losses) Defined Benefit Plans Foreign Currency Translation Other Total (in millions) Balance, July 1, 2018 $ 93 $ 8 $ (97 ) $ (182 ) $ (1 ) $ (179 ) OCI before reclassifications (59 ) — — (3 ) — (62 ) Amounts reclassified from AOCI (3 ) — — — — (3 ) Total OCI (62 ) — — (3 ) — (65 ) Balance, September 30, 2018 $ 31 (1) $ 8 $ (97 ) $ (185 ) $ (1 ) $ (244 ) Balance, January 1, 2018 $ 486 $ 8 $ (97 ) $ (167 ) $ (1 ) $ 229 Cumulative effect of change in accounting policies (1 ) — — — — (1 ) OCI before reclassifications (443 ) — — (18 ) — (461 ) Amounts reclassified from AOCI (11 ) — — — — (11 ) Total OCI (454 ) — — (18 ) — (472 ) Balance, September 30, 2018 $ 31 (1) $ 8 $ (97 ) $ (185 ) $ (1 ) $ (244 ) Net Unrealized Securities Gains (Losses) Net Unrealized Derivatives Gains (Losses) Defined Benefit Plans Foreign Currency Translation Other Total (in millions) Balance at July 1, 2017 $ 543 $ 6 $ (120 ) $ (129 ) $ (1 ) $ 299 OCI before reclassifications (1 ) — — 16 — 15 Amounts reclassified from AOCI (3 ) 1 — — — (2 ) Total OCI (4 ) 1 — 16 — 13 Balance, September 30, 2017 $ 539 (1) $ 7 $ (120 ) $ (113 ) $ (1 ) $ 312 Balance, January 1, 2017 $ 479 $ 5 $ (125 ) $ (159 ) $ — $ 200 OCI before reclassifications 88 — — 46 (1 ) 133 Amounts reclassified from AOCI (28 ) 2 5 — — (21 ) Total OCI 60 2 5 46 (1 ) 112 Balance, September 30, 2017 $ 539 (1) $ 7 $ (120 ) $ (113 ) $ (1 ) $ 312 (1) Includes $1 million and $8 million of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities as of September 30, 2018 and September 30, 2017 , respectively. For the nine months ended September 30, 2018 and 2017 , the Company repurchased a total of 7.7 million shares and 8.0 million shares, respectively, of its common stock for an aggregate cost of $1.1 billion and $1.0 billion , respectively. 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 September 30, 2018 , the Company had $944 million remaining under its share repurchase authorization. The Company may also reacquire shares of its common stock under its share-based compensation plans related to restricted stock awards and certain option exercises. The holders of restricted shares may elect to surrender a portion of their shares on the vesting date to cover their income tax obligation. These vested restricted shares are reacquired by the Company and the Company’s payment of the holders’ income tax obligations are recorded as a treasury share purchase. For the nine months ended September 30, 2018 and 2017 , the Company reacquired 0.3 million shares and 0.3 million shares, respectively, of its common stock through the surrender of shares upon vesting and paid in the aggregate $43 million and $33 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 nine months ended September 30, 2018 and 2017 , the Company reacquired 0.5 million shares and 1.9 million shares, respectively, of its common stock through the net settlement of options for an aggregate value of $82 million and $248 million , respectively. During both the nine months ended September 30, 2018 and 2017 , the Company reissued 0.8 million |
Regulatory Requirements
Regulatory Requirements | 9 Months Ended |
Sep. 30, 2018 | |
Insurance [Abstract] | |
Regulatory Requirements [Text Block] | Regulatory Requirements The Company’s insurance subsidiaries 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. RiverSource Life received approval from the Minnesota Department of Commerce to apply a permitted statutory accounting practice, effective July 1, 2017 through June 30, 2019, for certain derivative instruments used to economically hedge the interest rate exposure of certain variable annuity products that do not qualify for statutory hedge accounting. The permitted practice 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. As of September 30, 2018 and December 31, 2017 , application of this permitted practice resulted in an increase (decrease) to RiverSource Life’s statutory surplus of approximately $377 million and $(3) million |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Text Block] | Income Taxes In December of 2017, the Tax Act reduced federal income tax rates from 35% to 21% for tax years after 2017. The Company’s effective tax rate was 14.4% and 19.9% for the three months ended September 30, 2018 and 2017 , respectively. The Company’s effective tax rate was 14.9% and 19.5% for the nine months ended September 30, 2018 and 2017 , respectively. The effective tax rate for the three months ended September 30, 2018 is lower than the statutory rate as a result of low income housing tax credits and a $20 million benefit due to the finalization of the prior year’s tax return. The effective tax rate for the nine months ended September 30, 2018 is lower than the statutory rate as a result of tax preferred items including low income housing tax credits, stock compensation and the dividends received deduction, as well as the $20 million benefit due to the finalization of the prior year’s tax return. The effective tax rate for the three months ended September 30, 2017 was lower than the statutory rate as a result of tax preferred items including the dividends received deduction, low income housing tax credits, stock compensation and lower taxes on net income from foreign subsidiaries. The effective tax rate for the nine months ended September 30, 2017 was lower than the statutory rate as a result of tax preferred items including the dividends received deduction, low income housing tax credits, stock compensation and lower taxes on net income from foreign subsidiaries, as well as a $20 million benefit in the first quarter of 2017 related to an out-of-period correction for a reversal of a tax reserve. The decrease in the effective tax rate for the three months ended September 30, 2018 compared to the prior year period is primarily due to the reduced federal income tax rate and the $20 million benefit due to the finalization of the prior year’s tax return, partially offset by decreases in the dividends received deduction and benefits from stock compensation. The decrease in the effective tax rate for the nine months ended September 30, 2018 compared to the prior year period is primarily due to the reduced federal income tax rate, partially offset by decreases in the dividends received deduction, benefits from stock compensation and foreign taxes. 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 was able to provide reasonable estimates of the Tax Act’s impact; accordingly, the Company recorded provisional tax amounts of $221 million to remeasure certain deferred tax assets and liabilities and $57 million for the foreign provisions of the Tax Act as of December 31, 2017. In the third quarter of 2018, the Company finalized its accounting related to the Tax Act and recorded a $3 million benefit related to the foreign provisions. Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $18 million , net of federal benefit, which will expire beginning December 31, 2018. The Company is required to establish a valuation allowance for any portion of the deferred tax assets that management believes will not be realized. Significant judgment is required in determining if a valuation allowance should be established, and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business. Consideration is given to, among other things in making this determination, (i) future taxable income exclusive of reversing temporary differences and carryforwards, (ii) future reversals of existing taxable temporary differences, (iii) taxable income in prior carryback years, and (iv) tax planning strategies. Based on analysis of the Company’s tax position, management believes it is more likely than not that the Company will not realize certain state deferred tax assets and state net operating losses and therefore a valuation allowance has been established. The valuation allowance was $18 million and $17 million as of September 30, 2018 and December 31, 2017 , respectively. As of September 30, 2018 and December 31, 2017 , the Company had $80 million and $76 million , respectively, of gross unrecognized tax benefits. If recognized, approximately $61 million and $58 million , net of federal tax benefits, of unrecognized tax benefits as of September 30, 2018 and December 31, 2017 , respectively, would affect the effective tax rate. It is reasonably possible that the total amount of unrecognized tax benefits will change in the next 12 months. The Company estimates that the total amount of gross unrecognized tax benefits may decrease by $30 million to $40 million in the next 12 months primarily due to resolution of audits and statute expirations. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized nil and a net increase of $1 million in interest and penalties for the three months and nine months ended September 30, 2018 , respectively. The Company recognized nil and a net increase of $1 million in interest and penalties for the three months and nine months ended September 30, 2017 , respectively. As of September 30, 2018 and December 31, 2017 , the Company had a payable of $9 million and $8 million , respectively, related to accrued interest and penalties. The Company or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. In the first quarter of 2018 |
Guarantees and Contingencies
Guarantees and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees and contingencies [Text Block] | Contingencies The Company and its subsidiaries are involved in the normal course of business in legal, regulatory and arbitration proceedings, including class actions, concerning matters arising in connection with the conduct of its activities as a diversified financial services firm. These include proceedings specific to the Company as well as proceedings generally applicable to business practices in the industries in which it operates. The Company can also be subject to litigation arising out of its general business activities, such as its investments, contracts, leases and employment relationships. Uncertain economic conditions, heightened and sustained volatility in the financial markets and significant financial reform legislation may increase the likelihood that clients and other persons or regulators may present or threaten legal claims or that regulators increase the scope or frequency of examinations of the Company or the financial services industry generally. As with other financial services firms, the level of regulatory activity and inquiry concerning the Company’s businesses remains elevated. From time to time, the Company receives requests for information from, and/or has been subject to examination or claims by, the SEC, 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; and transaction monitoring systems and controls. 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. 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. As of September 30, 2018 and December 31, 2017 , the estimated liability was $13 million and $14 million , respectively. As of both September 30, 2018 and December 31, 2017 , the related premium tax asset was $12 million |
Earnings per Share Attributable
Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per share attributable to Ameriprise Financial, Inc. common shareholders [Text Block] | Earnings per Share The computation of basic and diluted earnings per share is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in millions, except per share amounts) Numerator: Net income $ 503 $ 507 $ 1,559 $ 1,303 Denominator: Basic: Weighted-average common shares outstanding 144.4 153.0 147.0 155.2 Effect of potentially dilutive nonqualified stock options and other share-based awards 2.1 2.4 2.2 2.4 Diluted: Weighted-average common shares outstanding 146.5 155.4 149.2 157.6 Earnings per share: Basic $ 3.48 $ 3.31 $ 10.61 $ 8.40 Diluted $ 3.43 $ 3.26 $ 10.45 $ 8.27 The calculation of diluted earnings per share excludes the incremental effect of 1.0 million options as of September 30, 2018 due to their anti-dilutive effect. There was no incremental effect as of September 30, 2017 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
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. Prior period results have been restated for the retrospective adoption of the new revenue recognition accounting standard as discussed in Note 1 and Note 2. 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. Management uses segment adjusted 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, adjusted operating earnings is the Company’s measure of segment performance. Adjusted operating earnings should not be viewed as a substitute for GAAP pretax income. The Company believes the presentation of segment adjusted 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. Adjusted operating earnings is defined as adjusted operating net revenues less adjusted operating expenses. Adjusted operating net revenues and adjusted operating expenses exclude 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. Adjusted 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. Adjusted 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: September 30, December 31, (in millions) Advice & Wealth Management $ 13,826 $ 13,270 Asset Management 8,264 8,401 Annuities 96,260 98,276 Protection 17,985 18,039 Corporate & Other 8,856 9,494 Total assets $ 145,191 $ 147,480 Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in millions) Adjusted operating net revenues: Advice & Wealth Management $ 1,564 $ 1,410 $ 4,608 $ 4,107 Asset Management 772 784 2,305 2,256 Annuities 628 626 1,863 1,861 Protection 611 478 1,663 1,516 Corporate & Other 47 50 160 162 Less: Eliminations (1)(2) 354 348 1,073 1,040 Total segment adjusted operating net revenues 3,268 3,000 9,526 8,862 Net realized gains (losses) 4 (3 ) 15 35 Revenue attributable to CIEs 22 23 93 70 Market impact on IUL benefits, net (8 ) (5 ) (5 ) (7 ) Market impact of hedges on investments 6 (1 ) 27 (8 ) Total net revenues per consolidated statements of operations $ 3,292 $ 3,014 $ 9,656 $ 8,952 (1) Represents the elimination of intersegment revenues recognized for the three months ended September 30, 2018 and 2017 in each segment as follows: Advice & Wealth Management ( $235 million and $233 million , respectively); Asset Management ( $13 million and $12 million , respectively); Annuities ( $91 million and $88 million , respectively); Protection ( $17 million and $16 million , respectively); and Corporate & Other ( $(2) million and $(1) million , respectively). (2) Represents the elimination of intersegment revenues recognized for the nine months ended September 30, 2018 and 2017 in each segment as follows: Advice & Wealth Management ( $722 million and $701 million , respectively); Asset Management ( $37 million and $35 million , respectively); Annuities ( $271 million and $259 million , respectively); Protection ( $46 million and $46 million , respectively); and Corporate & Other ( $(3) million and $(1) million , respectively). Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in millions) Adjusted operating earnings: Advice & Wealth Management $ 355 $ 299 $ 1,021 $ 838 Asset Management 197 204 575 530 Annuities 153 281 414 562 Protection 61 55 176 169 Corporate & Other (121 ) (136 ) (242 ) (292 ) Total segment adjusted operating earnings 645 703 1,944 1,807 Net realized gains (losses) 4 (3 ) 15 33 Net income (loss) attributable to CIEs — — — 2 Market impact on variable annuity guaranteed benefits, net (45 ) (55 ) (130 ) (198 ) Market impact on IUL benefits, net (13 ) (10 ) (8 ) (16 ) Market impact of hedges on investments 6 (1 ) 27 (8 ) Integration and restructuring charges (9 ) (1 ) (16 ) (1 ) Pretax income per consolidated statements of operations $ 588 $ 633 $ 1,832 $ 1,619 |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncement or Change in Accounting Principle, Retrospective Adjustments [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The following tables present the impact to the consolidated statements of operations for the prior periods presented: Three Months Ended September 30, 2017 Previously Reported Effect of Change As Adjusted (in millions) Revenues Management and financial advice fees $ 1,626 $ 13 $ 1,639 Distribution fees 437 (2 ) 435 Net investment income 372 — 372 Premiums 348 — 348 Other revenues 210 22 232 Total revenues 2,993 33 3,026 Banking and deposit interest expense 12 — 12 Total net revenues 2,981 33 3,014 Expenses Distribution expenses 850 — 850 Interest credited to fixed accounts 176 — 176 Benefits, claims, losses and settlement expenses 474 — 474 Amortization of deferred acquisition costs 48 — 48 Interest and debt expense 52 — 52 General and administrative expense 753 28 781 Total expenses 2,353 28 2,381 Pretax income 628 5 633 Income tax provision 125 1 126 Net income $ 503 $ 4 $ 507 Nine Months Ended September 30, 2017 Previously Reported Effect of Change As Adjusted (in millions) Revenues Management and financial advice fees $ 4,669 $ 25 $ 4,694 Distribution fees 1,310 (9 ) 1,301 Net investment income 1,154 — 1,154 Premiums 1,035 — 1,035 Other revenues 733 69 802 Total revenues 8,901 85 8,986 Banking and deposit interest expense 34 — 34 Total net revenues 8,867 85 8,952 Expenses Distribution expenses 2,505 (1 ) 2,504 Interest credited to fixed accounts 509 — 509 Benefits, claims, losses and settlement expenses 1,652 — 1,652 Amortization of deferred acquisition costs 189 — 189 Interest and debt expense 154 — 154 General and administrative expense 2,244 81 2,325 Total expenses 7,253 80 7,333 Pretax income 1,614 5 1,619 Income tax provision 315 1 316 Net income $ 1,299 $ 4 $ 1,303 |
Revenue from Contract with Cu_2
Revenue from Contract with Customer (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenues [Table Text Block] | The following tables present revenue disaggregated by segment on an adjusted operating basis with a reconciliation of segment revenues to those reported on the Consolidated Statements of Operations: Three Months Ended September 30, 2018 Advice & Wealth Management Asset Management Annuities Protection Corporate & Other Total Segments Non-operating Revenue Total (in millions) Management and financial advice fees: Asset management fees: Retail $ — $ 479 $ — $ — $ — $ 479 $ — $ 479 Institutional — 125 — — — 125 — 125 Advisory fees 740 — — — — 740 — 740 Financial planning fees 75 — — — — 75 — 75 Transaction and other fees 87 48 15 2 — 152 — 152 Total management and financial advice fees 902 652 15 2 — 1,571 — 1,571 Distribution fees: Mutual funds 182 64 — — — 246 — 246 Insurance and annuity 220 44 85 9 — 358 — 358 Other products 156 — — — — 156 — 156 Total distribution fees 558 108 85 9 — 760 — 760 Other revenues 43 — — — — 43 — 43 Total revenue from contracts with customers 1,503 760 100 11 — 2,374 — 2,374 Revenue from other sources (1) 85 12 528 600 49 1,274 26 1,300 Total segment gross revenues 1,588 772 628 611 49 3,648 26 3,674 Less: Banking and deposit interest expense 24 — — — 2 26 — 26 Total segment net revenues 1,564 772 628 611 47 3,622 26 3,648 Less: intersegment revenues 235 13 91 17 (2 ) 354 2 356 Total net revenues $ 1,329 $ 759 $ 537 $ 594 $ 49 $ 3,268 $ 24 $ 3,292 Three Months Ended September 30, 2017 Advice & Wealth Management Asset Management Annuities Protection Corporate & Other Total Segments Non-operating Revenue Total (in millions) Management and financial advice fees: Asset management fees: Retail $ — $ 467 $ — $ — $ — $ 467 $ — $ 467 Institutional — 140 — — — 140 — 140 Advisory fees 641 — — — — 641 — 641 Financial planning fees 71 — — — — 71 — 71 Transaction and other fees 89 51 14 3 — 157 — 157 Total management and financial advice fees 801 658 14 3 — 1,476 — 1,476 Distribution fees: Mutual funds 186 68 — — — 254 — 254 Insurance and annuity 212 43 82 10 — 347 — 347 Other products 120 — — — — 120 — 120 Total distribution fees 518 111 82 10 — 721 — 721 Other revenues 36 — — — — 36 — 36 Total revenue from contracts with customers 1,355 769 96 13 — 2,233 — 2,233 Revenue from other sources (1) 67 15 530 465 51 1,128 18 1,146 Total segment gross revenues 1,422 784 626 478 51 3,361 18 3,379 Less: Banking and deposit interest expense 12 — — — 1 13 — 13 Total segment net revenues 1,410 784 626 478 50 3,348 18 3,366 Less: intersegment revenues 233 12 88 16 (1 ) 348 4 352 Total net revenues $ 1,177 $ 772 $ 538 $ 462 $ 51 $ 3,000 $ 14 $ 3,014 Nine Months Ended September 30, 2018 Advice & Wealth Management Asset Management Annuities Protection Corporate & Other Total Segments Non-operating Revenue Total (in millions) Management and financial advice fees: Asset management fees: Retail $ — $ 1,431 $ — $ — $ — $ 1,431 $ — $ 1,431 Institutional — 345 — — — 345 — 345 Advisory fees 2,137 — — — — 2,137 — 2,137 Financial planning fees 223 — — — — 223 — 223 Transaction and other fees 268 144 44 6 — 462 — 462 Total management and financial advice fees 2,628 1,920 44 6 — 4,598 — 4,598 Distribution fees: Mutual funds 556 201 — — — 757 — 757 Insurance and annuity 673 131 253 27 — 1,084 — 1,084 Other products 448 — — — — 448 — 448 Total distribution fees 1,677 332 253 27 — 2,289 — 2,289 Other revenues 131 2 — — — 133 — 133 Total revenue from contracts with customers 4,436 2,254 297 33 — 7,020 — 7,020 Revenue from other sources (1) 232 51 1,566 1,630 164 3,643 142 3,785 Total segment gross revenues 4,668 2,305 1,863 1,663 164 10,663 142 10,805 Less: Banking and deposit interest expense 60 — — — 4 64 — 64 Total segment net revenues 4,608 2,305 1,863 1,663 160 10,599 142 10,741 Less: intersegment revenues 722 37 271 46 (3 ) 1,073 12 1,085 Total net revenues $ 3,886 $ 2,268 $ 1,592 $ 1,617 $ 163 $ 9,526 $ 130 $ 9,656 Nine Months Ended September 30, 2017 Advice & Wealth Management Asset Management Annuities Protection Corporate & Other Total Segments Non-operating Revenue Total (in millions) Management and financial advice fees: Asset management fees: Retail $ — $ 1,367 $ — $ — $ — $ 1,367 $ — $ 1,367 Institutional — 347 — — — 347 — 347 Advisory fees 1,817 — — — — 1,817 — 1,817 Financial planning fees 210 — — — — 210 — 210 Transaction and other fees 271 155 42 6 — 474 — 474 Total management and financial advice fees 2,298 1,869 42 6 — 4,215 — 4,215 Distribution fees: Mutual funds 572 219 — — — 791 — 791 Insurance and annuity 621 125 242 25 — 1,013 — 1,013 Other products 348 — — — — 348 — 348 Total distribution fees 1,541 344 242 25 — 2,152 — 2,152 Other revenues 119 1 — — — 120 — 120 Total revenue from contracts with customers 3,958 2,214 284 31 — 6,487 — 6,487 Revenue from other sources (1) 183 42 1,577 1,485 164 3,451 102 3,553 Total segment gross revenues 4,141 2,256 1,861 1,516 164 9,938 102 10,040 Less: Banking and deposit interest expense 34 — — — 2 36 — 36 Total segment net revenues 4,107 2,256 1,861 1,516 162 9,902 102 10,004 Less: intersegment revenues 701 35 259 46 (1 ) 1,040 12 1,052 Total net revenues $ 3,406 $ 2,221 $ 1,602 $ 1,470 $ 163 $ 8,862 $ 90 $ 8,952 (1) |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of assets and liabilities held by consolidated investment entities 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: September 30, 2018 Level 1 Level 2 Level 3 Total (in millions) Assets Cash equivalents $ 168 $ 1,793 $ — $ 1,961 Available-for-Sale securities: Corporate debt securities — 13,399 992 14,391 Residential mortgage backed securities — 6,116 109 6,225 Commercial mortgage backed securities — 4,595 — 4,595 Asset backed securities — 1,468 9 1,477 State and municipal obligations — 2,359 — 2,359 U.S. government and agency obligations 1,495 — — 1,495 Foreign government bonds and obligations — 298 — 298 Total Available-for-Sale securities 1,495 28,235 1,110 30,840 Equity securities 1 1 — 2 Equity securities at net asset value (“NAV”) 6 (1) Trading securities 17 27 — 44 Separate account assets at NAV 86,592 (1) Investments segregated for regulatory purposes 274 — — 274 Other assets: Interest rate derivative contracts — 617 — 617 Equity derivative contracts 87 2,598 — 2,685 Credit derivative contracts — 7 — 7 Foreign exchange derivative contracts 2 43 — 45 Total other assets 89 3,265 — 3,354 Total assets at fair value $ 2,044 $ 33,321 $ 1,110 $ 123,073 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 4 $ 11 $ 15 IUL embedded derivatives — — 684 684 GMWB and GMAB embedded derivatives — — (686 ) (686 ) (2) Total policyholder account balances, future policy benefits and claims — 4 9 13 (3) Customer deposits — 12 — 12 Other liabilities: Interest rate derivative contracts 1 602 — 603 Equity derivative contracts 14 3,223 — 3,237 Foreign exchange derivative contracts 1 27 — 28 Other 20 10 29 59 Total other liabilities 36 3,862 29 3,927 Total liabilities at fair value $ 36 $ 3,878 $ 38 $ 3,952 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 agencies obligations 503 — — 503 Foreign government bonds and obligations — 314 — 314 Common stocks 1 — — 1 Common stocks at 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 ) (4) Total policyholder account balances, future policy benefits and claims — 5 552 557 (5) 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 (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 $178 million of individual contracts in a liability position and $864 million of individual contracts in an asset position as of September 30, 2018 . (3) The Company’s adjustment for nonperformance risk resulted in a $(370) million cumulative increase (decrease) to the embedded derivatives as of September 30, 2018 . (4) 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 as of December 31, 2017 . (5) The Company’s adjustment for nonperformance risk resulted in a $(399) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2017 . |
Schedule of debt of the consolidated investment entities and the stated interest rates [Table Text Block] | The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows: Outstanding Balance Stated Interest Rate September 30, December 31, September 30, December 31, (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 28 38 Other (1) (8 ) 3 Total long-term debt 2,870 2,891 Short-term borrowings: Federal Home Loan Bank (“FHLB”) advances 151 150 2.3 1.5 Repurchase agreements 50 50 2.3 1.4 Total short-term borrowings 201 200 Total $ 3,071 $ 3,091 (1) |
Consolidated investment entities [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis [Table Text Block] | The following tables present the balances of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis: September 30, 2018 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Corporate debt securities $ — $ 9 $ — $ 9 Common stocks 5 1 6 12 Other investments 4 — — 4 Syndicated loans — 1,164 121 1,285 Total investments 9 1,174 127 1,310 Receivables — 5 — 5 Other assets — 1 — 1 Total assets at fair value $ 9 $ 1,180 $ 127 $ 1,316 Liabilities Debt (1) $ — $ 1,370 $ — $ 1,370 Other liabilities — 14 — 14 Total liabilities at fair value $ — $ 1,384 $ — $ 1,384 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) $ — $ 2,206 $ — $ 2,206 Other liabilities — 63 — 63 Total liabilities at fair value $ — $ 2,269 $ — $ 2,269 (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 $1.3 billion and $2.2 billion as of September 30, 2018 and December 31, 2017 |
Schedule of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis [Table Text Block] | The following tables provide a summary of changes in Level 3 assets held by consolidated investment entities measured at fair value on a recurring basis: Common Stocks Syndicated Loans (in millions) Balance, July 1, 2018 $ 4 $ 111 Total gains (losses) included in: Net income 2 (1) 1 (1) Purchases — 9 Sales — (3 ) Settlements — (10 ) Transfers into Level 3 — 52 Transfers out of Level 3 — (39 ) Balance, September 30, 2018 $ 6 $ 121 Changes in unrealized gains (losses) included in income relating to assets held at $ 2 (1) $ — Common Stocks Syndicated Loans (in millions) Balance, July 1, 2017 $ 7 $ 185 Total gains (losses) included in: Net income 1 (1) (1 ) (1) Purchases — 6 Sales — (12 ) Settlements — (3 ) Transfers into Level 3 — 84 Transfers out of Level 3 (4 ) (77 ) Balance, September 30, 2017 $ 4 $ 182 Changes in unrealized gains (losses) included in income relating to assets held at $ 1 (1) $ — Common Stocks Syndicated Loans (in millions) Balance, January 1, 2018 $ 4 $ 180 Total gains (losses) included in: Net income 6 (1) 2 (1) Purchases — 51 Sales (4 ) (39 ) Settlements — (40 ) Transfers into Level 3 4 130 Transfers out of Level 3 (4 ) (163 ) Balance, September 30, 2018 $ 6 $ 121 Changes in unrealized gains (losses) included in income relating to assets held at $ 4 (1) $ — Corporate Debt Securities Common Stocks Syndicated Loans (in millions) Balance, January 1, 2017 $ — $ 5 $ 254 Total gains (losses) included in: Net income — 1 (1) — Purchases — 3 133 Sales (2 ) (1 ) (27 ) Settlements — — (56 ) Transfers into Level 3 2 2 197 Transfers out of Level 3 — (6 ) (319 ) Balance, September 30, 2017 $ — $ 4 $ 182 Changes in unrealized gains (losses) included in income relating to assets held at $ — $ 1 (1) $ (2 ) (1) (1) |
Schedule of fair value and unpaid principal balance of assets and liabilities carried at fair value under the fair value option [Table Text Block] | The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected: September 30, December 31, (in millions) Syndicated loans Unpaid principal balance $ 1,307 $ 2,140 Excess unpaid principal over fair value (22 ) (71 ) Fair value $ 1,285 $ 2,069 Fair value of loans more than 90 days past due $ — $ 24 Fair value of loans in nonaccrual status — 24 Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both 3 35 Debt Unpaid principal balance $ 1,513 $ 2,340 Excess unpaid principal over fair value (143 ) (134 ) Carrying value (1) $ 1,370 $ 2,206 (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 $1.3 billion and $2.2 billion as of September 30, 2018 and December 31, 2017 |
Schedule of debt of the consolidated investment entities and the stated interest rates [Table Text Block] | Debt of the consolidated investment entities and the stated interest rates were as follows: Carrying Value Weighted Average Interest Rate September 30, December 31, September 30, December 31, (in millions) Debt of consolidated CLOs due 2025-2030 $ 1,370 $ 2,206 3.5 % 2.8 % |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments [Table Text Block] | The following is a summary of Ameriprise Financial investments: September 30, December 31, (in millions) Available-for-Sale securities, at fair value $ 30,840 $ 30,927 Mortgage loans, net 2,684 2,756 Policy and certificate loans 854 845 Other investments 1,232 1,397 Total $ 35,610 $ 35,925 |
Summary of Net Investment Income [Table Text Block] | The following is a summary of net investment income: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in millions) Investment income on fixed maturities $ 339 $ 340 $ 1,002 $ 1,012 Net realized gains (losses) 4 (3 ) 15 35 Affordable housing partnerships (24 ) (17 ) (49 ) (42 ) Other 43 26 132 70 Consolidated investment entities 24 26 101 79 Total $ 386 $ 372 $ 1,201 $ 1,154 |
Available-for-Sale Securities Disclosure [Table Text Block] | Available-for-Sale securities distributed by type were as follows: Description of Securities September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Noncredit OTTI (1) (in millions) Corporate debt securities $ 13,880 $ 658 $ (147 ) $ 14,391 $ — Residential mortgage backed securities 6,310 27 (112 ) 6,225 — Commercial mortgage backed securities 4,713 16 (134 ) 4,595 — Asset backed securities 1,459 30 (12 ) 1,477 2 State and municipal obligations 2,190 183 (14 ) 2,359 — U.S. government and agencies obligations 1,495 — — 1,495 — Foreign government bonds and obligations 296 10 (8 ) 298 — Total $ 30,343 $ 924 $ (427 ) $ 30,840 $ 2 Description of Securities December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses 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 agencies 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 (1) |
Fixed Maturity Securities by Rating Disclosure [Table Text Block] | A summary of fixed maturity securities by rating was as follows: Ratings September 30, 2018 December 31, 2017 Amortized Cost Fair Value Percent of Total Fair Value Amortized Cost Fair Value Percent of Total Fair Value (in millions, except percentages) AAA $ 12,764 $ 12,551 41 % $ 11,293 $ 11,331 37 % AA 1,659 1,801 6 1,898 2,114 7 A 4,158 4,394 14 4,760 5,243 17 BBB 10,807 11,140 36 10,317 10,989 35 Below investment grade (1) 955 954 3 1,219 1,243 4 Total fixed maturities $ 30,343 $ 30,840 100 % $ 29,487 $ 30,920 100 % (1) The amortized cost and fair value of below investment grade securities includes interest in CLOs managed by the Company of $7 million and $9 million , respectively, at September 30, 2018 , and $6 million and $7 million , respectively, at December 31, 2017 |
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 September 30, 2018 Less than 12 months 12 months or more Total Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses (in millions, except number of securities) Corporate debt securities 366 $ 5,808 $ (105 ) 79 $ 840 $ (42 ) 445 $ 6,648 $ (147 ) Residential mortgage backed securities 177 3,137 (48 ) 145 1,675 (64 ) 322 4,812 (112 ) Commercial mortgage backed securities 116 1,987 (61 ) 85 1,245 (73 ) 201 3,232 (134 ) Asset backed securities 49 722 (7 ) 24 206 (5 ) 73 928 (12 ) State and municipal obligations 165 391 (7 ) 80 214 (7 ) 245 605 (14 ) Foreign government bonds and obligations 15 53 (3 ) 14 17 (5 ) 29 70 (8 ) Total 888 $ 12,098 $ (231 ) 427 $ 4,197 $ (196 ) 1,315 $ 16,295 $ (427 ) Description of Securities December 31, 2017 Less than 12 months 12 months or more Total Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses (in millions, except number of securities) Corporate debt securities 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 stocks — — — 4 1 (1 ) 4 1 (1 ) Total 434 $ 5,312 $ (34 ) 337 $ 3,381 $ (92 ) 771 $ 8,693 $ (126 ) |
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: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in millions) Beginning balance $ — $ 2 $ 2 $ 69 Credit losses for which an other-than-temporary impairment was previously recognized — — — 1 Reductions for securities sold during the period (realized) — — — (68 ) Ending balance $ — $ 2 $ 2 $ 2 |
Net Realized Gains and Losses on Available-for-Sale Securities 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: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in millions) Gross realized investment gains $ 4 $ 6 $ 15 $ 50 Gross realized investment losses — (2 ) (1 ) (6 ) Other-than-temporary impairments — — — (1 ) Total $ 4 $ 4 $ 14 $ 43 |
Available-for-Sale Securities Contractual Maturity Disclosure [Table Text Block] | Available-for-Sale securities by contractual maturity as of September 30, 2018 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 3,251 $ 3,265 Due after one year through five years 6,187 6,192 Due after five years through 10 years 3,912 3,882 Due after 10 years 4,511 5,204 17,861 18,543 Residential mortgage backed securities 6,310 6,225 Commercial mortgage backed securities 4,713 4,595 Asset backed securities 1,459 1,477 Total $ 30,343 $ 30,840 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 nine months ended and the ending balance of the allowance for loan losses by impairment method: September 30, 2018 2017 (in millions) Beginning balance $ 26 $ 29 Charge-offs (2 ) — Provisions — (1 ) Ending balance $ 24 $ 28 Individually evaluated for impairment $ — $ 3 Collectively evaluated for impairment 24 25 |
Schedule of Recorded Investment in Financing Receivables by Impairment Method [Table Text Block] | The recorded investment in financing receivables by impairment method was as follows: September 30, December 31, (in millions) Individually evaluated for impairment $ 16 $ 17 Collectively evaluated for impairment 3,227 3,258 Total $ 3,243 $ 3,275 |
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 September 30, December 31, September 30, December 31, (in millions) East North Central $ 213 $ 215 8 % 8 % East South Central 96 90 4 3 Middle Atlantic 188 192 7 7 Mountain 240 256 9 9 New England 63 74 2 3 Pacific 806 812 30 29 South Atlantic 735 768 27 28 West North Central 222 235 8 8 West South Central 140 133 5 5 2,703 2,775 100 % 100 % Less: allowance for loan losses 19 19 Total $ 2,684 $ 2,756 |
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 September 30, December 31, September 30, December 31, (in millions) Apartments $ 602 $ 566 22 % 20 % Hotel 44 40 2 1 Industrial 452 476 17 17 Mixed use 47 44 2 2 Office 441 492 16 18 Retail 900 937 33 34 Other 217 220 8 8 2,703 2,775 100 % 100 % Less: allowance for loan losses 19 19 Total $ 2,684 $ 2,756 |
Deferred Acquisition Costs an_2
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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: 2018 2017 (in millions) Balance at January 1 $ 2,676 $ 2,648 Capitalization of acquisition costs 241 220 Amortization, excluding the impact of valuation assumptions review (213 ) (201 ) Amortization, impact of valuation assumptions review 33 12 Impact of change in net unrealized (gains) losses on securities 95 (18 ) Balance at September 30 $ 2,832 $ 2,661 |
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: 2018 2017 (in millions) Balance at January 1 $ 276 $ 302 Capitalization of sales inducement costs 2 3 Amortization, excluding the impact of valuation assumptions review (26 ) (26 ) Amortization, impact of valuation assumptions review — (1 ) Impact of change in net unrealized (gains) losses on securities 16 1 Balance at September 30 $ 268 $ 279 |
Policyholder Account Balances_2
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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: September 30, December 31, (in millions) Policyholder account balances Fixed annuities (1) $ 9,499 $ 9,934 Variable annuity fixed sub-accounts 5,127 5,166 VUL/UL insurance 3,057 3,047 Indexed universal life (“IUL”) insurance 1,649 1,384 Other life insurance 689 720 Total policyholder account balances 20,021 20,251 Future policy benefits Variable annuity guaranteed minimum withdrawal benefits (“GMWB”) (125 ) (2) 463 Variable annuity guaranteed minimum accumulation benefits (“GMAB”) (83 ) (3) (80 ) (3) Other annuity liabilities 26 78 Fixed annuity life contingent liabilities 1,464 1,484 Life and disability income insurance 1,219 1,221 Long term care insurance 4,997 4,896 VUL/UL and other life insurance additional liabilities 807 688 Total future policy benefits 8,305 8,750 Policy claims and other policyholders’ funds 878 903 Total policyholder account balances, future policy benefits and claims $ 29,204 $ 29,904 (1) Includes fixed deferred annuities, non-life contingent fixed payout annuities and indexed annuity host contracts. (2) Includes the fair value of GMWB embedded derivatives that was a net asset as of September 30, 2018 reported as a contra liability. (3) Includes the fair value of GMAB embedded derivatives that was a net asset as of both September 30, 2018 and December 31, 2017 |
Schedule of Separate Account Liabilities by Policy Type [Table Text Block] | Separate account liabilities consisted of the following: September 30, December 31, (in millions) Variable annuity $ 74,317 $ 75,174 VUL insurance 7,338 7,352 Other insurance 33 34 Threadneedle investment liabilities 4,904 4,808 Total $ 86,592 $ 87,368 |
Variable Annuity and Insuranc_2
Variable Annuity and Insurance Guarantees (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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) September 30, 2018 December 31, 2017 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 $ 61,379 $ 59,441 $ 12 67 $ 61,418 $ 59,461 $ 9 66 Five/six-year reset 8,504 5,781 11 66 8,870 6,149 12 66 One-year ratchet 6,215 5,864 19 69 6,548 6,187 11 69 Five-year ratchet 1,471 1,416 1 65 1,563 1,506 1 65 Other 1,126 1,107 63 72 1,099 1,075 50 72 Total — GMDB $ 78,695 $ 73,609 $ 106 67 $ 79,498 $ 74,378 $ 83 66 GGU death benefit $ 1,105 $ 1,055 $ 129 70 $ 1,118 $ 1,067 $ 133 70 GMIB $ 208 $ 192 $ 7 69 $ 233 $ 216 $ 7 69 GMWB: GMWB $ 2,252 $ 2,245 $ 1 72 $ 2,508 $ 2,500 $ 1 71 GMWB for life 44,871 44,776 217 68 44,375 44,259 129 67 Total — GMWB $ 47,123 $ 47,021 $ 218 68 $ 46,883 $ 46,759 $ 130 67 GMAB $ 2,762 $ 2,758 $ — 59 $ 3,086 $ 3,083 $ — 59 (1) |
Schedule of Net Amount of Risk UL Secondary Guarantees [Table Text Block] | The following table provides information related to insurance guarantees for which the Company has established additional liabilities: September 30, 2018 December 31, 2017 Net Amount Weighted Average Attained Age Net Amount Weighted Average Attained Age (in millions, except age) UL secondary guarantees $ 6,499 66 $ 6,460 65 |
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, 2017 $ 16 $ 8 $ 1,017 $ (24 ) $ 434 Incurred claims 3 — (478 ) (49 ) 59 Paid claims (3 ) (1 ) — — (22 ) Balance at September 30, 2017 $ 16 $ 7 $ 539 $ (73 ) $ 471 Balance at January 1, 2018 $ 17 $ 6 $ 463 $ (80 ) $ 489 Incurred claims 5 — (588 ) (3 ) 171 Paid claims (4 ) — — — (19 ) Balance at September 30, 2018 $ 18 $ 6 $ (125 ) $ (83 ) $ 641 (1) |
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: September 30, December 31, (in millions) Mutual funds: Equity $ 44,968 $ 46,038 Bond 22,846 23,529 Other 6,059 5,109 Total mutual funds $ 73,873 $ 74,676 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, December 31, September 30, December 31, (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 28 38 Other (1) (8 ) 3 Total long-term debt 2,870 2,891 Short-term borrowings: Federal Home Loan Bank (“FHLB”) advances 151 150 2.3 1.5 Repurchase agreements 50 50 2.3 1.4 Total short-term borrowings 201 200 Total $ 3,071 $ 3,091 (1) |
Fair Values of Assets and Lia_2
Fair Values of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of balances of assets and liabilities measured at fair value on a recurring basis | The following tables present the balances of assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis: September 30, 2018 Level 1 Level 2 Level 3 Total (in millions) Assets Cash equivalents $ 168 $ 1,793 $ — $ 1,961 Available-for-Sale securities: Corporate debt securities — 13,399 992 14,391 Residential mortgage backed securities — 6,116 109 6,225 Commercial mortgage backed securities — 4,595 — 4,595 Asset backed securities — 1,468 9 1,477 State and municipal obligations — 2,359 — 2,359 U.S. government and agency obligations 1,495 — — 1,495 Foreign government bonds and obligations — 298 — 298 Total Available-for-Sale securities 1,495 28,235 1,110 30,840 Equity securities 1 1 — 2 Equity securities at net asset value (“NAV”) 6 (1) Trading securities 17 27 — 44 Separate account assets at NAV 86,592 (1) Investments segregated for regulatory purposes 274 — — 274 Other assets: Interest rate derivative contracts — 617 — 617 Equity derivative contracts 87 2,598 — 2,685 Credit derivative contracts — 7 — 7 Foreign exchange derivative contracts 2 43 — 45 Total other assets 89 3,265 — 3,354 Total assets at fair value $ 2,044 $ 33,321 $ 1,110 $ 123,073 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 4 $ 11 $ 15 IUL embedded derivatives — — 684 684 GMWB and GMAB embedded derivatives — — (686 ) (686 ) (2) Total policyholder account balances, future policy benefits and claims — 4 9 13 (3) Customer deposits — 12 — 12 Other liabilities: Interest rate derivative contracts 1 602 — 603 Equity derivative contracts 14 3,223 — 3,237 Foreign exchange derivative contracts 1 27 — 28 Other 20 10 29 59 Total other liabilities 36 3,862 29 3,927 Total liabilities at fair value $ 36 $ 3,878 $ 38 $ 3,952 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 agencies obligations 503 — — 503 Foreign government bonds and obligations — 314 — 314 Common stocks 1 — — 1 Common stocks at 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 ) (4) Total policyholder account balances, future policy benefits and claims — 5 552 557 (5) 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 (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 $178 million of individual contracts in a liability position and $864 million of individual contracts in an asset position as of September 30, 2018 . (3) The Company’s adjustment for nonperformance risk resulted in a $(370) million cumulative increase (decrease) to the embedded derivatives as of September 30, 2018 . (4) 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 as of December 31, 2017 . (5) The Company’s adjustment for nonperformance risk resulted in a $(399) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2017 . |
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | The following tables provide a summary of changes in Level 3 assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis: Available-for-Sale Securities Other Derivatives Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance, July 1, 2018 $ 1,040 $ 120 $ 52 $ 31 $ 1,243 $ 2 Total gains (losses) included in: Net income — — — — — (2 ) (1) Other comprehensive income (loss) (2 ) — — 1 (1 ) — Purchases — 20 — — 20 — Settlements (46 ) (5 ) — (1 ) (52 ) — Transfers out of Level 3 — (26 ) (52 ) (22 ) (100 ) — Balance, September 30, 2018 $ 992 $ 109 $ — $ 9 $ 1,110 $ — Changes in unrealized gains (losses) relating to assets held at September 30, 2018 $ — $ — $ — $ — $ — $ (2 ) (1) Policyholder Account Balances, Future Policy Benefits and Claims Other Liabilities Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, July 1, 2018 $ 8 $ 620 $ (425 ) $ 203 $ 29 Total (gains) losses included in: Net income — 55 (2) (344 ) (1) (289 ) — Issues 3 24 90 117 — Settlements — (15 ) (7 ) (22 ) — Balance, September 30, 2018 $ 11 $ 684 $ (686 ) $ 9 $ 29 Changes in unrealized (gains) losses relating to liabilities held at September 30, 2018 $ — $ 55 (2) $ (347 ) (1) $ (292 ) $ — Available-for-Sale Securities Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Common Stocks Total (in millions) Balance, July 1, 2017 $ 1,333 $ 172 $ — $ 33 $ — $ 1,538 Total gains (losses) included in: Other comprehensive income (1 ) 1 — (2 ) 1 (1 ) Purchases 39 — 65 10 — 114 Settlements (104 ) (9 ) — — — (113 ) Transfers into Level 3 — 20 — 13 — 33 Transfers out of Level 3 — (19 ) — (19 ) — (38 ) Balance, September 30, 2017 $ 1,267 $ 165 $ 65 $ 35 $ 1 $ 1,533 Changes in unrealized gains (losses) relating to assets held at September 30, 2017 $ — $ — $ — $ — $ — $ — Policyholder Account Balances, Future Policy Benefits and Claims Other Liabilities IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, July 1, 2017 $ 527 $ 272 $ 799 $ 14 Total (gains) losses included in: Net income 35 (2) (309 ) (1) (274 ) — Issues 26 84 110 13 Settlements (11 ) (2 ) (13 ) — Balance, September 30, 2017 $ 577 $ 45 $ 622 $ 27 Changes in unrealized (gains) losses relating to liabilities held at September 30, 2017 $ 35 (2) $ (307 ) (1) $ (272 ) $ — Available-for-Sale Securities Other Derivatives Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance, January 1, 2018 $ 1,139 $ 155 $ — $ 7 $ 1,301 $ — Total gains (losses) included in: Net income (1 ) — — — (1 ) (4) (3 ) (1) Other comprehensive income (loss) (28 ) 1 — 1 (26 ) — Purchases 15 20 52 32 119 3 Settlements (133 ) (24 ) — (1 ) (158 ) — Transfers into Level 3 — — — 2 2 — Transfers out of Level 3 — (43 ) (52 ) (32 ) (127 ) — Balance, September 30, 2018 $ 992 $ 109 $ — $ 9 $ 1,110 $ — Changes in unrealized gains (losses) relating to assets held at September 30, 2018 $ (1 ) $ — $ — $ — $ (1 ) (4) $ (3 ) (1) Policyholder Account Balances, Future Policy Benefits and Claims Other Liabilities Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2018 $ — $ 601 $ (49 ) $ 552 $ 28 Total (gains) losses included in: Net income — 56 (2) (875 ) (1) (819 ) 1 (3) Issues 11 65 257 333 — Settlements — (38 ) (19 ) (57 ) — Balance, September 30, 2018 $ 11 $ 684 $ (686 ) $ 9 $ 29 Changes in unrealized (gains) losses relating to liabilities held at September 30, 2018 $ — $ 56 (2) $ (868 ) (1) $ (812 ) $ — 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: Other comprehensive income 1 2 — — 1 4 Purchases 109 132 65 64 — 370 Settlements (154 ) (34 ) — (15 ) — (203 ) Transfers into Level 3 — 20 — 27 8 55 Transfers out of Level 3 — (223 ) — (109 ) (9 ) (341 ) Balance, September 30, 2017 $ 1,267 $ 165 $ 65 $ 35 $ 1 $ 1,533 Changes in unrealized gains (losses) relating to assets held at September 30, 2017 $ — $ — $ — $ (1 ) $ — $ (1 ) (4) Policyholder Account Balances, Future Policy Benefits and Claims Other Liabilities IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2017 $ 464 $ 614 $ 1,078 $ 13 Total (gains) losses included in: Net income 75 (2) (798 ) (1) (723 ) 1 (3) Issues 70 238 308 13 Settlements (32 ) (9 ) (41 ) — Balance, September 30, 2017 $ 577 $ 45 $ 622 $ 27 Changes in unrealized (gains) losses relating to liabilities held at September 30, 2017 $ 75 (2) $ (771 ) (1) $ (696 ) $ — (1) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. (2) Included in interest credited to fixed accounts in the Consolidated Statements of Operations. (3) Included in general and administrative expense in the Consolidated Statements of Operations. (4) |
Fair Value Measurement Inputs and Valuation Techniques [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: September 30, 2018 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 991 Discounted cash flow Yield/spread to U.S. Treasuries 0.7 % – 2.4% 1.1 % Asset backed securities $ 9 Discounted cash flow Annual short-term default rate 2.3% Annual long-term default rate 2.5% – 3.5% 3.0 % Discount rate 11.5% Constant prepayment rate 5.0 % – 10.0% 10.0 % Loss recovery 36.4 % – 63.6% 63.6 % IUL embedded derivatives $ 684 Discounted cash flow Nonperformance risk (1) 83 bps Indexed annuity embedded derivatives $ 11 Discounted cash flow Surrender rate 0.0 % – 50.0% Nonperformance risk (1) 83 bps GMWB and GMAB embedded derivatives $ (686 ) Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0 % – 36.0% Surrender rate 0.1 % – 73.4% Market volatility (3) 3.7 % – 15.5% Nonperformance risk (1) 83 bps Contingent consideration liabilities $ 29 Discounted cash flow Discount rate 9.0% 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 liabilities $ 28 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) |
Schedule of carrying value and the estimated fair value of financial instruments that are not reported at fair value | The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value: September 30, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,684 $ — $ — $ 2,620 $ 2,620 Policy and certificate loans 854 — — 805 805 Receivables 1,653 118 1,023 503 1,644 Restricted and segregated cash 2,219 2,219 — — 2,219 Other investments and assets 559 — 525 37 562 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 9,786 $ — $ — $ 9,846 $ 9,846 Investment certificate reserves 7,319 — — 7,303 7,303 Brokerage customer deposits 3,427 3,427 — — 3,427 Separate account liabilities at NAV 5,275 5,275 (1) Debt and other liabilities 3,249 124 3,055 72 3,251 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 (2) 725 — 677 49 726 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 (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) Amounts have been corrected to include certificates of deposit with original or remaining maturities at the time of purchase of more than 90 days but less than 12 months of $205 million |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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: September 30, 2018 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 Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,327 $ — $ 3,327 $ (2,895 ) $ (413 ) $ (5 ) $ 14 OTC cleared 10 — 10 (9 ) — — 1 Exchange-traded 17 — 17 (1 ) — — 16 Total derivatives 3,354 — 3,354 (2,905 ) (413 ) (5 ) 31 Securities borrowed 118 — 118 (15 ) — (100 ) 3 Total $ 3,472 $ — $ 3,472 $ (2,920 ) $ (413 ) $ (105 ) $ 34 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 Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,520 $ — $ 3,520 $ (2,653 ) $ (760 ) $ (88 ) $ 19 OTC cleared 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 (1) |
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: September 30, 2018 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,856 $ — $ 3,856 $ (2,895 ) $ (117 ) $ (843 ) $ 1 OTC cleared 9 — 9 (9 ) — — — Exchange-traded 3 — 3 (1 ) — — 2 Total derivatives 3,868 — 3,868 (2,905 ) (117 ) (843 ) 3 Securities loaned 124 — 124 (15 ) — (105 ) 4 Repurchase agreements 51 — 51 — — (51 ) — Total $ 4,043 $ — $ 4,043 $ (2,920 ) $ (117 ) $ (999 ) $ 7 December 31, 2017 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,309 $ — $ 3,309 $ (2,653 ) $ (70 ) $ (579 ) $ 7 OTC cleared 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 (1) Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) | |
Schedule of gross fair value of derivative instruments, including embedded derivatives [Table Text Block] | The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives: September 30, 2018 December 31, 2017 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 $ 8 $ — $ 675 $ 23 $ — Foreign exchange contracts — — — 87 — 4 Total qualifying hedges 675 8 — 762 23 4 Derivatives not designated as hedging instruments Interest rate contracts 59,482 609 603 66,043 1,081 416 Equity contracts 56,352 2,685 3,237 59,292 2,423 2,883 Credit contracts 862 7 — 721 — 2 Foreign exchange contracts 4,307 45 28 4,163 36 23 Other contracts 1,350 — — 452 — — Total non-designated hedges 122,353 3,346 3,868 130,671 3,540 3,324 Embedded derivatives GMWB and GMAB (4) N/A — (686 ) N/A — (49 ) IUL N/A — 684 N/A — 601 Indexed annuities N/A — 15 N/A — 5 SMC N/A — 12 N/A — 10 Total embedded derivatives N/A — 25 N/A — 567 Total derivatives $ 123,028 $ 3,354 $ 3,893 $ 131,433 $ 3,563 $ 3,895 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 $870 million and $1.3 billion as of September 30, 2018 and December 31, 2017 , respectively. See Note 12 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 September 30, 2018 included $178 million of individual contracts in a liability position and $864 million of individual contracts in an asset position. 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. |
Schedule of gain (loss) on derivative instruments, including embedded derivatives [Table Text Block] | The following tables present 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) Three Months Ended September 30, 2018 Interest rate contracts $ 6 $ — $ — $ — $ (205 ) $ — Equity contracts (1 ) 1 17 34 (229 ) 3 Credit contracts — — — — 4 — Foreign exchange contracts 1 — — — — (5 ) Other contracts — — — — (2 ) — GMWB and GMAB embedded derivatives — — — — 261 — IUL embedded derivatives — — — (40 ) — — SMC embedded derivatives — (2 ) — — — — Total gain (loss) $ 6 $ (1 ) $ 17 $ (6 ) $ (171 ) $ (2 ) Nine Months Ended September 30, 2018 Interest rate contracts $ 28 $ — $ — $ — $ (738 ) $ — Equity contracts (1 ) 2 22 37 (341 ) 5 Credit contracts — — — — 22 — Foreign exchange contracts 1 — — — (1 ) (13 ) Other contracts — — — — (4 ) — GMWB and GMAB embedded derivatives — — — — 637 — IUL embedded derivatives — — — (18 ) — — SMC embedded derivatives — (2 ) — — — — Total gain (loss) $ 28 $ — $ 22 $ 19 $ (425 ) $ (8 ) 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) Three Months Ended September 30, 2017 Interest rate contracts $ (1 ) $ — $ — $ — $ 14 $ — Equity contracts (10 ) 1 13 18 (261 ) 2 Credit contracts — — — — (3 ) — Foreign exchange contracts — — 1 — 1 1 Other contracts — — — — (2 ) — GMWB and GMAB embedded derivatives — — — — 227 — IUL embedded derivatives — — — (24 ) — — SMC embedded derivatives — (1 ) — — — — Total gain (loss) $ (11 ) $ — $ 14 $ (6 ) $ (24 ) $ 3 Nine Months Ended September 30, 2017 Interest rate contracts $ (8 ) $ — $ — $ — $ 61 $ — Equity contracts (7 ) 3 36 50 (920 ) 7 Credit contracts — — — — (22 ) — Foreign exchange contracts — — 3 — (27 ) 5 Other contracts — — — — (2 ) — GMWB and GMAB embedded derivatives — — — — 569 — IUL embedded derivatives — — — (43 ) — — SMC embedded derivatives — (3 ) — — — — Total gain (loss) $ (15 ) $ — $ 39 $ 7 $ (341 ) $ 12 |
Schedule of payments to make and receive for options [Table Text Block] | The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of September 30, 2018 : Premiums Payable Premiums Receivable (in millions) 2018 (1) $ 54 $ 31 2019 294 171 2020 216 132 2021 187 119 2022 225 200 2023 - 2027 545 59 Total $ 1,521 $ 712 (1) 2018 amounts represent the amounts payable and receivable for the period from October 1, 2018 to December 31, 2018 |
Fair value hedges [Member] | |
Derivative Instruments, Gain (Loss) | |
Schedule of gain (loss) on derivative instruments, including embedded derivatives [Table Text Block] | The following table presents the amounts recognized in income related to fair value hedges: Derivatives designated as hedging instruments Location of Gain Recorded into Income Amount of Gain Recognized in Income on Derivatives Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in millions) Interest rate contracts Interest and debt expense $ 3 $ 4 $ 9 $ 12 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of components of OCI [Table Text Block] | The following tables provide the amounts related to each component of OCI: Three Months Ended September 30, 2018 2017 Pretax Income Tax Benefit (Expense) Net of Tax 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) $ (106 ) $ 25 $ (81 ) $ 60 $ (22 ) $ 38 Reclassification of net securities (gains) losses included in net income (2) (4 ) 1 (3 ) (4 ) 1 (3 ) Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables 28 (6 ) 22 (61 ) 22 (39 ) Net unrealized securities gains (losses) (82 ) 20 (62 ) (5 ) 1 (4 ) 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: Net gain (loss) arising during the period — — — — — — Defined benefit plans — — — — — — Foreign currency translation (5 ) 2 (3 ) 25 (9 ) 16 Other — — — — — — Total other comprehensive income (loss) $ (87 ) $ 22 $ (65 ) $ 21 $ (8 ) $ 13 Nine Months Ended September 30, 2018 2017 Pretax Income Tax Benefit (Expense) Net of Tax 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) $ (924 ) $ 207 $ (717 ) $ 304 $ (107 ) $ 197 Reclassification of net securities (gains) losses included in net income (2) (14 ) 3 (11 ) (43 ) 15 (28 ) Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables 347 (73 ) 274 (168 ) 59 (109 ) Net unrealized securities gains (losses) (591 ) 137 (454 ) 93 (33 ) 60 Net unrealized derivatives gains (losses) : Reclassification of net derivative (gains) losses included in net income (4) — — — 3 (1 ) 2 Net unrealized derivatives gains (losses) — — — 3 (1 ) 2 Defined benefit plans: Net gain (loss) arising during the period — — — 7 (2 ) 5 Defined benefit plans — — — 7 (2 ) 5 Foreign currency translation (21 ) 3 (18 ) 71 (25 ) 46 Other — — — (1 ) — (1 ) Total other comprehensive income (loss) $ (612 ) $ 140 $ (472 ) $ 173 $ (61 ) $ 112 (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) Pretax amounts are recorded in net investment income. (3) Includes nil pretax gain reclassified to interest and debt expense for both the three months ended September 30, 2018 and 2017 , and nil and $1 million pretax loss reclassified to net investment income for the three months ended September 30, 2018 and 2017 , respectively. (4) Includes a $1 million pretax gain reclassified to interest and debt expense for both the nine months ended September 30, 2018 and 2017 , and a $1 million and $3 million pretax loss reclassified to net investment income for the nine months ended September 30, 2018 and 2017 |
Schedule of amounts reclassified from AOCI [Table Text Block] | The following tables present the changes in the balances of each component of AOCI, net of tax: Net Unrealized Securities Gains (Losses) Net Unrealized Derivatives Gains (Losses) Defined Benefit Plans Foreign Currency Translation Other Total (in millions) Balance, July 1, 2018 $ 93 $ 8 $ (97 ) $ (182 ) $ (1 ) $ (179 ) OCI before reclassifications (59 ) — — (3 ) — (62 ) Amounts reclassified from AOCI (3 ) — — — — (3 ) Total OCI (62 ) — — (3 ) — (65 ) Balance, September 30, 2018 $ 31 (1) $ 8 $ (97 ) $ (185 ) $ (1 ) $ (244 ) Balance, January 1, 2018 $ 486 $ 8 $ (97 ) $ (167 ) $ (1 ) $ 229 Cumulative effect of change in accounting policies (1 ) — — — — (1 ) OCI before reclassifications (443 ) — — (18 ) — (461 ) Amounts reclassified from AOCI (11 ) — — — — (11 ) Total OCI (454 ) — — (18 ) — (472 ) Balance, September 30, 2018 $ 31 (1) $ 8 $ (97 ) $ (185 ) $ (1 ) $ (244 ) Net Unrealized Securities Gains (Losses) Net Unrealized Derivatives Gains (Losses) Defined Benefit Plans Foreign Currency Translation Other Total (in millions) Balance at July 1, 2017 $ 543 $ 6 $ (120 ) $ (129 ) $ (1 ) $ 299 OCI before reclassifications (1 ) — — 16 — 15 Amounts reclassified from AOCI (3 ) 1 — — — (2 ) Total OCI (4 ) 1 — 16 — 13 Balance, September 30, 2017 $ 539 (1) $ 7 $ (120 ) $ (113 ) $ (1 ) $ 312 Balance, January 1, 2017 $ 479 $ 5 $ (125 ) $ (159 ) $ — $ 200 OCI before reclassifications 88 — — 46 (1 ) 133 Amounts reclassified from AOCI (28 ) 2 5 — — (21 ) Total OCI 60 2 5 46 (1 ) 112 Balance, September 30, 2017 $ 539 (1) $ 7 $ (120 ) $ (113 ) $ (1 ) $ 312 (1) Includes $1 million and $8 million of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities as of September 30, 2018 and September 30, 2017 |
Earnings per Share Attributab_2
Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per common share [Table Text Block] | The computation of basic and diluted earnings per share is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in millions, except per share amounts) Numerator: Net income $ 503 $ 507 $ 1,559 $ 1,303 Denominator: Basic: Weighted-average common shares outstanding 144.4 153.0 147.0 155.2 Effect of potentially dilutive nonqualified stock options and other share-based awards 2.1 2.4 2.2 2.4 Diluted: Weighted-average common shares outstanding 146.5 155.4 149.2 157.6 Earnings per share: Basic $ 3.48 $ 3.31 $ 10.61 $ 8.40 Diluted $ 3.43 $ 3.26 $ 10.45 $ 8.27 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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: September 30, December 31, (in millions) Advice & Wealth Management $ 13,826 $ 13,270 Asset Management 8,264 8,401 Annuities 96,260 98,276 Protection 17,985 18,039 Corporate & Other 8,856 9,494 Total assets $ 145,191 $ 147,480 Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in millions) Adjusted operating net revenues: Advice & Wealth Management $ 1,564 $ 1,410 $ 4,608 $ 4,107 Asset Management 772 784 2,305 2,256 Annuities 628 626 1,863 1,861 Protection 611 478 1,663 1,516 Corporate & Other 47 50 160 162 Less: Eliminations (1)(2) 354 348 1,073 1,040 Total segment adjusted operating net revenues 3,268 3,000 9,526 8,862 Net realized gains (losses) 4 (3 ) 15 35 Revenue attributable to CIEs 22 23 93 70 Market impact on IUL benefits, net (8 ) (5 ) (5 ) (7 ) Market impact of hedges on investments 6 (1 ) 27 (8 ) Total net revenues per consolidated statements of operations $ 3,292 $ 3,014 $ 9,656 $ 8,952 (1) Represents the elimination of intersegment revenues recognized for the three months ended September 30, 2018 and 2017 in each segment as follows: Advice & Wealth Management ( $235 million and $233 million , respectively); Asset Management ( $13 million and $12 million , respectively); Annuities ( $91 million and $88 million , respectively); Protection ( $17 million and $16 million , respectively); and Corporate & Other ( $(2) million and $(1) million , respectively). (2) Represents the elimination of intersegment revenues recognized for the nine months ended September 30, 2018 and 2017 in each segment as follows: Advice & Wealth Management ( $722 million and $701 million , respectively); Asset Management ( $37 million and $35 million , respectively); Annuities ( $271 million and $259 million , respectively); Protection ( $46 million and $46 million , respectively); and Corporate & Other ( $(3) million and $(1) million , respectively). Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in millions) Adjusted operating earnings: Advice & Wealth Management $ 355 $ 299 $ 1,021 $ 838 Asset Management 197 204 575 530 Annuities 153 281 414 562 Protection 61 55 176 169 Corporate & Other (121 ) (136 ) (242 ) (292 ) Total segment adjusted operating earnings 645 703 1,944 1,807 Net realized gains (losses) 4 (3 ) 15 33 Net income (loss) attributable to CIEs — — — 2 Market impact on variable annuity guaranteed benefits, net (45 ) (55 ) (130 ) (198 ) Market impact on IUL benefits, net (13 ) (10 ) (8 ) (16 ) Market impact of hedges on investments 6 (1 ) 27 (8 ) Integration and restructuring charges (9 ) (1 ) (16 ) (1 ) Pretax income per consolidated statements of operations $ 588 $ 633 $ 1,832 $ 1,619 |
Basis of Presentation Basis o_2
Basis of Presentation Basis of Presentation (Out-of-period-correction) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Management and financial advice fees | $ 1,739 | $ 1,639 | $ 5,099 | $ 4,694 |
Distribution fees | 470 | 435 | 1,403 | 1,301 |
Net investment income | 386 | 372 | 1,201 | 1,154 |
Premiums | 363 | 348 | 1,063 | 1,035 |
Other revenues | 358 | 232 | 950 | 802 |
Total revenues | 3,316 | 3,026 | 9,716 | 8,986 |
Banking and deposit interest expense | 24 | 12 | 60 | 34 |
Total net revenues | 3,292 | 3,014 | 9,656 | 8,952 |
Distribution expenses | 920 | 850 | 2,727 | 2,504 |
Interest credited to fixed accounts | 178 | 176 | 499 | 509 |
Benefits, claims, losses and settlement expenses | 729 | 474 | 1,858 | 1,652 |
Amortization of deferred acquisition costs | 25 | 48 | 180 | 189 |
Interest and debt expense | 50 | 52 | 181 | 154 |
General and administrative expense | 802 | 781 | 2,379 | 2,325 |
Total expenses | 2,704 | 2,381 | 7,824 | 7,333 |
Pretax income | 588 | 633 | 1,832 | 1,619 |
Income tax provision | 85 | 126 | 273 | 316 |
Net income | $ 503 | 507 | $ 1,559 | 1,303 |
Income Tax Provision [Member] | ||||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Benefit related to an out-of-period correction for a reversal of a tax reserve | 20 | |||
Previously reported [Member] | ||||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Management and financial advice fees | 1,626 | 4,669 | ||
Distribution fees | 437 | 1,310 | ||
Net investment income | 372 | 1,154 | ||
Premiums | 348 | 1,035 | ||
Other revenues | 210 | 733 | ||
Total revenues | 2,993 | 8,901 | ||
Banking and deposit interest expense | 12 | 34 | ||
Total net revenues | 2,981 | 8,867 | ||
Distribution expenses | 850 | 2,505 | ||
Interest credited to fixed accounts | 176 | 509 | ||
Benefits, claims, losses and settlement expenses | 474 | 1,652 | ||
Amortization of deferred acquisition costs | 48 | 189 | ||
Interest and debt expense | 52 | 154 | ||
General and administrative expense | 753 | 2,244 | ||
Total expenses | 2,353 | 7,253 | ||
Pretax income | 628 | 1,614 | ||
Income tax provision | 125 | 315 | ||
Net income | 503 | 1,299 | ||
Accounting Standards Update 2014-09 [Member] | Effect of change [Member] | ||||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Management and financial advice fees | 13 | 25 | ||
Distribution fees | (2) | (9) | ||
Other revenues | 22 | 69 | ||
Total revenues | 33 | 85 | ||
Total net revenues | 33 | 85 | ||
Distribution expenses | 0 | (1) | ||
General and administrative expense | 28 | 81 | ||
Total expenses | 28 | 80 | ||
Pretax income | 5 | 5 | ||
Income tax provision | 1 | 1 | ||
Net income | $ 4 | $ 4 |
Basis of Presentation Basis o_3
Basis of Presentation Basis of Presentation (Revenue Recognition) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Management and financial advice fees | $ 1,739 | $ 1,639 | $ 5,099 | $ 4,694 | |
Distribution fees | 470 | 435 | 1,403 | 1,301 | |
Net investment income | 386 | 372 | 1,201 | 1,154 | |
Premiums | 363 | 348 | 1,063 | 1,035 | |
Other revenues | 358 | 232 | 950 | 802 | |
Total revenues | 3,316 | 3,026 | 9,716 | 8,986 | |
Banking and deposit interest expense | 24 | 12 | 60 | 34 | |
Total net revenues | 3,292 | 3,014 | 9,656 | 8,952 | |
Distribution expenses | 920 | 850 | 2,727 | 2,504 | |
Interest credited to fixed accounts | 178 | 176 | 499 | 509 | |
Benefits, claims, losses and settlement expenses | 729 | 474 | 1,858 | 1,652 | |
Amortization of deferred acquisition costs | 25 | 48 | 180 | 189 | |
Interest and debt expense | 50 | 52 | 181 | 154 | |
General and administrative expense | 802 | 781 | 2,379 | 2,325 | |
Total expenses | 2,704 | 2,381 | 7,824 | 7,333 | |
Pretax income | 588 | 633 | 1,832 | 1,619 | |
Income tax provision | 85 | 126 | 273 | 316 | |
Net income | 503 | 507 | 1,559 | 1,303 | |
Total assets | 145,191 | 145,191 | $ 147,480 | ||
Total liabilities | 139,573 | 139,573 | 141,485 | ||
Retained earnings | $ (12,498) | $ (12,498) | (11,326) | ||
Effect of change [Member] | Revenue from contracts with customers standard [Member] | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Management and financial advice fees | 13 | 25 | |||
Distribution fees | (2) | (9) | |||
Other revenues | 22 | 69 | |||
Total revenues | 33 | 85 | |||
Total net revenues | 33 | 85 | |||
Distribution expenses | 0 | (1) | |||
General and administrative expense | 28 | 81 | |||
Total expenses | 28 | 80 | |||
Pretax income | 5 | 5 | |||
Income tax provision | 1 | 1 | |||
Net income | 4 | 4 | |||
Total assets | 10 | ||||
Total liabilities | 13 | ||||
Retained earnings | $ (3) | ||||
Previously reported [Member] | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Management and financial advice fees | 1,626 | 4,669 | |||
Distribution fees | 437 | 1,310 | |||
Net investment income | 372 | 1,154 | |||
Premiums | 348 | 1,035 | |||
Other revenues | 210 | 733 | |||
Total revenues | 2,993 | 8,901 | |||
Banking and deposit interest expense | 12 | 34 | |||
Total net revenues | 2,981 | 8,867 | |||
Distribution expenses | 850 | 2,505 | |||
Interest credited to fixed accounts | 176 | 509 | |||
Benefits, claims, losses and settlement expenses | 474 | 1,652 | |||
Amortization of deferred acquisition costs | 48 | 189 | |||
Interest and debt expense | 52 | 154 | |||
General and administrative expense | 753 | 2,244 | |||
Total expenses | 2,353 | 7,253 | |||
Pretax income | 628 | 1,614 | |||
Income tax provision | 125 | 315 | |||
Net income | $ 503 | $ 1,299 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements Revenue from Contracts with Customers ASU 2014-09 (Details) - Revenue from contracts with customers standard [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Sales Revenue, Net [Member] | ||
Impact of fees previously recorded as a reduction of expenses | $ 33 | $ 85 |
General and administrative expense [Member] | ||
Impact of fees previously recorded as a reduction of expenses | $ 28 | $ 80 |
Revenue from Contract with Cu_3
Revenue from Contract with Customer (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | $ 2,374 | $ 2,233 | $ 7,020 | $ 6,487 | |||||
Other Revenues | [1] | 1,300 | 1,146 | 3,785 | 3,553 | ||||
Total segment gross revenues | 3,674 | 3,379 | 10,805 | 10,040 | |||||
Less: Banking and deposit interest expense | 26 | 13 | 64 | 36 | |||||
Total segment net revenues before eliminations | 3,648 | 3,366 | 10,741 | 10,004 | |||||
Total net revenues | 3,292 | 3,014 | 9,656 | 8,952 | |||||
Intersegment revenues, eliminations [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Eliminations | 356 | 352 | 1,085 | 1,052 | |||||
Total management and financial advice fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 1,571 | 1,476 | 4,598 | 4,215 | |||||
Asset management fees - Retail [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 479 | 467 | 1,431 | 1,367 | |||||
Asset management fees - Institutional [Member] [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 125 | 140 | 345 | 347 | |||||
Advisory fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 740 | 641 | 2,137 | 1,817 | |||||
Financial planning fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 75 | 71 | 223 | 210 | |||||
Transaction and other fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 152 | 157 | 462 | 474 | |||||
Total Distribution Fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 760 | 721 | 2,289 | 2,152 | |||||
Mutual funds [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 246 | 254 | 757 | 791 | |||||
Insurance and annuity [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 358 | 347 | 1,084 | 1,013 | |||||
Other products [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 156 | 120 | 448 | 348 | |||||
Other revenues [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 43 | 36 | 133 | 120 | |||||
Total Segment [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 2,374 | 2,233 | 7,020 | 6,487 | |||||
Other Revenues | [1] | 1,274 | 1,128 | 3,643 | 3,451 | ||||
Total segment gross revenues | 3,648 | 3,361 | 10,663 | 9,938 | |||||
Less: Banking and deposit interest expense | 26 | 13 | 64 | 36 | |||||
Total segment net revenues before eliminations | 3,622 | 3,348 | 10,599 | 9,902 | |||||
Eliminations | 354 | [2] | 348 | [2] | 1,073 | [3] | 1,040 | [3] | |
Total net revenues | 3,268 | 3,000 | 9,526 | 8,862 | |||||
Total Segment [Member] | Total management and financial advice fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 1,571 | 1,476 | 4,598 | 4,215 | |||||
Total Segment [Member] | Asset management fees - Retail [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 479 | 467 | 1,431 | 1,367 | |||||
Total Segment [Member] | Asset management fees - Institutional [Member] [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 125 | 140 | 345 | 347 | |||||
Total Segment [Member] | Advisory fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 740 | 641 | 2,137 | 1,817 | |||||
Total Segment [Member] | Financial planning fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 75 | 71 | 223 | 210 | |||||
Total Segment [Member] | Transaction and other fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 152 | 157 | 462 | 474 | |||||
Total Segment [Member] | Total Distribution Fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 760 | 721 | 2,289 | 2,152 | |||||
Total Segment [Member] | Mutual funds [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 246 | 254 | 757 | 791 | |||||
Total Segment [Member] | Insurance and annuity [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 358 | 347 | 1,084 | 1,013 | |||||
Total Segment [Member] | Other products [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 156 | 120 | 448 | 348 | |||||
Total Segment [Member] | Other revenues [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 43 | 36 | 133 | 120 | |||||
Advice and Wealth Management [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 1,503 | 1,355 | 4,436 | 3,958 | |||||
Other Revenues | [1] | 85 | 67 | 232 | 183 | ||||
Total segment gross revenues | 1,588 | 1,422 | 4,668 | 4,141 | |||||
Less: Banking and deposit interest expense | 24 | 12 | 60 | 34 | |||||
Total segment net revenues before eliminations | 1,564 | 1,410 | 4,608 | 4,107 | |||||
Total net revenues | 1,329 | 1,177 | 3,886 | 3,406 | |||||
Advice and Wealth Management [Member] | Intersegment revenues, eliminations [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Eliminations | 235 | 233 | 722 | 701 | |||||
Advice and Wealth Management [Member] | Total management and financial advice fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 902 | 801 | 2,628 | 2,298 | |||||
Advice and Wealth Management [Member] | Advisory fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 740 | 641 | 2,137 | 1,817 | |||||
Advice and Wealth Management [Member] | Financial planning fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 75 | 71 | 223 | 210 | |||||
Advice and Wealth Management [Member] | Transaction and other fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 87 | 89 | 268 | 271 | |||||
Advice and Wealth Management [Member] | Total Distribution Fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 558 | 518 | 1,677 | 1,541 | |||||
Advice and Wealth Management [Member] | Mutual funds [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 182 | 186 | 556 | 572 | |||||
Advice and Wealth Management [Member] | Insurance and annuity [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 220 | 212 | 673 | 621 | |||||
Advice and Wealth Management [Member] | Other products [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 156 | 120 | 448 | 348 | |||||
Advice and Wealth Management [Member] | Other revenues [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 43 | 36 | 131 | 119 | |||||
Asset Management [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 760 | 769 | 2,254 | 2,214 | |||||
Other Revenues | [1] | 12 | 15 | 51 | 42 | ||||
Total segment gross revenues | 772 | 784 | 2,305 | 2,256 | |||||
Total segment net revenues before eliminations | 772 | 784 | 2,305 | 2,256 | |||||
Total net revenues | 759 | 772 | 2,268 | 2,221 | |||||
Asset Management [Member] | Intersegment revenues, eliminations [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Eliminations | 13 | 12 | 37 | 35 | |||||
Asset Management [Member] | Total management and financial advice fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 652 | 658 | 1,920 | 1,869 | |||||
Asset Management [Member] | Asset management fees - Retail [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 479 | 467 | 1,431 | 1,367 | |||||
Asset Management [Member] | Asset management fees - Institutional [Member] [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 125 | 140 | 345 | 347 | |||||
Asset Management [Member] | Transaction and other fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 48 | 51 | 144 | 155 | |||||
Asset Management [Member] | Total Distribution Fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 108 | 111 | 332 | 344 | |||||
Asset Management [Member] | Mutual funds [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 64 | 68 | 201 | 219 | |||||
Asset Management [Member] | Insurance and annuity [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 44 | 43 | 131 | 125 | |||||
Asset Management [Member] | Other revenues [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 2 | 1 | |||||||
Annuities [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 100 | 96 | 297 | 284 | |||||
Other Revenues | [1] | 528 | 530 | 1,566 | 1,577 | ||||
Total segment gross revenues | 628 | 626 | 1,863 | 1,861 | |||||
Total segment net revenues before eliminations | 628 | 626 | 1,863 | 1,861 | |||||
Total net revenues | 537 | 538 | 1,592 | 1,602 | |||||
Annuities [Member] | Intersegment revenues, eliminations [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Eliminations | 91 | 88 | 271 | 259 | |||||
Annuities [Member] | Total management and financial advice fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 15 | 14 | 44 | 42 | |||||
Annuities [Member] | Transaction and other fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 15 | 14 | 44 | 42 | |||||
Annuities [Member] | Total Distribution Fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 85 | 82 | 253 | 242 | |||||
Annuities [Member] | Insurance and annuity [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 85 | 82 | 253 | 242 | |||||
Protection [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 11 | 13 | 33 | 31 | |||||
Other Revenues | [1] | 600 | 465 | 1,630 | 1,485 | ||||
Total segment gross revenues | 611 | 478 | 1,663 | 1,516 | |||||
Total segment net revenues before eliminations | 611 | 478 | 1,663 | 1,516 | |||||
Total net revenues | 594 | 462 | 1,617 | 1,470 | |||||
Protection [Member] | Intersegment revenues, eliminations [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Eliminations | 17 | 16 | 46 | 46 | |||||
Protection [Member] | Total management and financial advice fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 2 | 3 | 6 | 6 | |||||
Protection [Member] | Transaction and other fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 2 | 3 | 6 | 6 | |||||
Protection [Member] | Total Distribution Fees [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 9 | 10 | 27 | 25 | |||||
Protection [Member] | Insurance and annuity [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue from contracts with customers | 9 | 10 | 27 | 25 | |||||
Corporate and Other [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Other Revenues | [1] | 49 | 51 | 164 | 164 | ||||
Total segment gross revenues | 49 | 51 | 164 | 164 | |||||
Less: Banking and deposit interest expense | 2 | 1 | 4 | 2 | |||||
Total segment net revenues before eliminations | 47 | 50 | 160 | 162 | |||||
Total net revenues | 49 | 51 | 163 | 163 | |||||
Corporate and Other [Member] | Intersegment revenues, eliminations [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Eliminations | (2) | (1) | (3) | (1) | |||||
Non-operating Revenue [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Other Revenues | [1] | 26 | 18 | 142 | 102 | ||||
Total segment gross revenues | 26 | 18 | 142 | 102 | |||||
Total segment net revenues before eliminations | 26 | 18 | 142 | 102 | |||||
Total net revenues | 24 | 14 | 130 | 90 | |||||
Non-operating Revenue [Member] | Intersegment revenues, eliminations [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Eliminations | $ 2 | $ 4 | $ 12 | $ 12 | |||||
[1] | Revenues not included in the scope of the revenue from contracts with customers standard. The amounts primarily consist of revenue associated with the manufacturing of insurance and annuity products or financial instruments. | ||||||||
[2] | Represents the elimination of intersegment revenues recognized for the three months ended September 30, 2018 and 2017 in each segment as follows: Advice & Wealth Management ( $235 million and $233 million , respectively); Asset Management ( $13 million and $12 million , respectively); Annuities ( $91 million and $88 million , respectively); Protection ( $17 million and $16 million , respectively); and Corporate & Other ( $(2) million and $(1) million | ||||||||
[3] | Represents the elimination of intersegment revenues recognized for the nine months ended September 30, 2018 and 2017 in each segment as follows: Advice & Wealth Management ( $722 million and $701 million , respectively); Asset Management ( $37 million and $35 million , respectively); Annuities ( $271 million and $259 million , respectively); Protection ( $46 million and $46 million , respectively); and Corporate & Other ( $(3) million and $(1) million |
Revenue from Contracts with Cus
Revenue from Contracts with Customers (In-Text) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||
Receivables for revenue from contracts with customers | $ 670 | $ 670 | $ 657 | ||
Financial planning fees [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | 128 | 128 | 134 | ||
Capitalized contract costs | 105 | 105 | 109 | ||
Transaction and other fees [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | 16 | 16 | $ 0 | ||
Revenue from contracts with customers standard [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Impact of fees previously recorded as a reduction of expenses | $ 26 | $ 24 | $ 79 | $ 75 |
Variable Interest Entities (Ass
Variable Interest Entities (Asset & Liability Balances) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | ||
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 | 7 | $ 6 | |
Nonconsolidated VIEs [Member] | Property funds [Member] | |||
Liabilities | |||
Carrying value of nonconsolidated VIEs assets | 24 | 24 | |
Nonconsolidated VIEs [Member] | Sponsored hedge funds and private equity funds [Member] | |||
Liabilities | |||
Carrying value of nonconsolidated VIEs assets | 7 | 7 | |
Nonconsolidated VIEs [Member] | Non-U.S. series funds [Member] | |||
Liabilities | |||
Carrying value of nonconsolidated VIEs assets | 70 | 25 | |
Nonconsolidated VIEs [Member] | Affordable housing partnerships and other real estate partnerships[Member] | |||
Liabilities | |||
Carrying value of nonconsolidated VIEs assets | 364 | 408 | |
Carrying value of nonconsolidated VIE liabilities | 57 | 97 | |
Consolidated investment entities [Member] | |||
Liabilities | |||
Debt | [1] | 1,370 | 2,206 |
Estimated fair value of CLO debt | 1,300 | 2,200 | |
Recurring basis [Member] | Consolidated investment entities [Member] | |||
Assets | |||
Investments | 1,310 | 2,131 | |
Receivables | 5 | 25 | |
Other assets | 1 | ||
Total assets at fair value | 1,316 | 2,156 | |
Liabilities | |||
Debt | [1] | 1,370 | 2,206 |
Other liabilities | 14 | 63 | |
Total liabilities at fair value | 1,384 | 2,269 | |
Recurring basis [Member] | Consolidated investment entities [Member] | Corporate debt securities [Member] | |||
Assets | |||
Investments | 9 | 27 | |
Recurring basis [Member] | Consolidated investment entities [Member] | Common stocks [Member] | |||
Assets | |||
Investments | 12 | 30 | |
Recurring basis [Member] | Consolidated investment entities [Member] | Other investments [Member] | |||
Assets | |||
Investments | 4 | 5 | |
Recurring basis [Member] | Consolidated investment entities [Member] | Syndicated loans [Member] | |||
Assets | |||
Investments | 1,285 | 2,069 | |
Recurring basis [Member] | Consolidated investment entities [Member] | Level 1 [Member] | |||
Assets | |||
Investments | 9 | 23 | |
Total assets at fair value | 9 | 23 | |
Recurring basis [Member] | Consolidated investment entities [Member] | Level 1 [Member] | Common stocks [Member] | |||
Assets | |||
Investments | 5 | 18 | |
Recurring basis [Member] | Consolidated investment entities [Member] | Level 1 [Member] | Other investments [Member] | |||
Assets | |||
Investments | 4 | 5 | |
Recurring basis [Member] | Consolidated investment entities [Member] | Level 2 [Member] | |||
Assets | |||
Investments | 1,174 | 1,924 | |
Receivables | 5 | 25 | |
Other assets | 1 | ||
Total assets at fair value | 1,180 | 1,949 | |
Liabilities | |||
Debt | [1] | 1,370 | 2,206 |
Other liabilities | 14 | 63 | |
Total liabilities at fair value | 1,384 | 2,269 | |
Recurring basis [Member] | Consolidated investment entities [Member] | Level 2 [Member] | Corporate debt securities [Member] | |||
Assets | |||
Investments | 9 | 27 | |
Recurring basis [Member] | Consolidated investment entities [Member] | Level 2 [Member] | Common stocks [Member] | |||
Assets | |||
Investments | 1 | 8 | |
Recurring basis [Member] | Consolidated investment entities [Member] | Level 2 [Member] | Syndicated loans [Member] | |||
Assets | |||
Investments | 1,164 | 1,889 | |
Recurring basis [Member] | Consolidated investment entities [Member] | Level 3 [Member] | |||
Assets | |||
Investments | 127 | 184 | |
Total assets at fair value | 127 | 184 | |
Recurring basis [Member] | Consolidated investment entities [Member] | Level 3 [Member] | Common stocks [Member] | |||
Assets | |||
Investments | 6 | 4 | |
Recurring basis [Member] | Consolidated investment entities [Member] | Level 3 [Member] | Syndicated loans [Member] | |||
Assets | |||
Investments | $ 121 | $ 180 | |
[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 $1.3 billion and $2.2 billion as of September 30, 2018 and December 31, 2017 |
Variable Interest Entities (Cha
Variable Interest Entities (Changes in Level 3 Assets and Liabilities) (Details 2) - Consolidated investment entities [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Transfers from Level 1 to Level 2, assets | $ 0 | $ 0 | $ 0 | $ 0 | |
Transfers from Level 2 to Level 1, assets | 0 | 0 | 0 | 0 | |
Transfers from Level 1 to Level 2, liabilities | 0 | 0 | 0 | 0 | |
Transfers from Level 2 to Level 1, liabilities | 0 | 0 | 0 | 0 | |
Common stocks [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 4 | 7 | 4 | 5 | |
Total gains (losses) included in net income | [1] | 2 | 1 | 6 | 1 |
Purchases | 3 | ||||
Sales | (4) | (1) | |||
Transfers into Level 3 | 4 | 2 | |||
Transfers out of Level 3 | (4) | (4) | (6) | ||
Balance, at the end of the period | 6 | 4 | 6 | 4 | |
Changes in unrealized gains (losses) included in income relating to assets held at end of period | [1] | 2 | 1 | 4 | 1 |
Transfers out of Level 3 from deconsolidation of collateralized loan obligations | 2 | ||||
Syndicated loans [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 111 | 185 | 180 | 254 | |
Total gains (losses) included in net income | [1] | 1 | (1) | 2 | |
Purchases | 9 | 6 | 51 | 133 | |
Sales | (3) | (12) | (39) | (27) | |
Settlements | (10) | (3) | (40) | (56) | |
Transfers into Level 3 | 52 | 84 | 130 | 197 | |
Transfers out of Level 3 | (39) | (77) | (163) | (319) | |
Balance, at the end of the period | $ 121 | 182 | 121 | 182 | |
Changes in unrealized gains (losses) included in income relating to assets held at end of period | [1] | (2) | |||
Transfers out of Level 3 from deconsolidation of collateralized loan obligations | $ 24 | ||||
Corporate debt securities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 0 | ||||
Sales | (2) | ||||
Transfers into Level 3 | 2 | ||||
Balance, at the end of the period | $ 0 | $ 0 | |||
[1] | Included in net investment income in the Consolidated Statements of Operations. |
Variable Interest Entities (FV
Variable Interest Entities (FV Options for consolidated CDOs) (Details 3) - Consolidated investment entities [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | ||
Fair value and unpaid principal balance of assets and liabilities carried at fair value under the fair value option | ||||||
Estimated fair value of CLO debt | $ 1,300 | $ 1,300 | $ 2,200 | |||
Syndicated loans [Abstract] | ||||||
Unpaid principal balance | 1,307 | 1,307 | 2,140 | |||
Excess unpaid principal over fair value | (22) | (22) | (71) | |||
Fair value | 1,285 | 1,285 | 2,069 | |||
Fair value of loans more than 90 days past due | 0 | 0 | 24 | |||
Fair value of loans in nonaccrual status | 0 | 0 | 24 | |||
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both | 3 | 3 | 35 | |||
Debt [Abstract] | ||||||
Unpaid principal balance | 1,513 | 1,513 | 2,340 | |||
Excess unpaid principal over fair value | (143) | (143) | (134) | |||
Carrying value | [1] | 1,370 | 1,370 | $ 2,206 | ||
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 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 | $ 5 | $ (1) | $ 29 | $ (3) | ||
[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 $1.3 billion and $2.2 billion as of September 30, 2018 and December 31, 2017 |
Variable Interest Entities (CLO
Variable Interest Entities (CLO Debt) (Details 4) - Consolidated investment entities [Member] - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value | $ 1,370 | $ 2,206 |
Collateralized Loan Obligations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value | $ 1,370 | $ 2,206 |
Weighted average interest rate | 3.50% | 2.80% |
Collateralized Loan Obligations [Member] | Minimum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated interest rate according to the terms of CDO structure | 0.00% | |
Collateralized Loan Obligations [Member] | Maximum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated interest rate according to the terms of CDO structure | 11.00% |
Investments (Holdings info) (De
Investments (Holdings info) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Held-to-maturity Securities [Member] | ||
Certificates of Deposit, at Carrying Value | $ 0 | $ 205 |
Ameriprise Financial [Member] | ||
Investments | 35,610 | 35,925 |
Ameriprise Financial [Member] | Available-for-sale securities [Member] | ||
Investments | 30,840 | 30,927 |
Ameriprise Financial [Member] | Mortgage loans, net [Member] | ||
Investments | 2,684 | 2,756 |
Ameriprise Financial [Member] | Policy and certificate loans [Member] | ||
Investments | 854 | 845 |
Ameriprise Financial [Member] | Other investments [Member] | ||
Investments | $ 1,232 | $ 1,397 |
Investments (Net Inv Inc summar
Investments (Net Inv Inc summary) (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Investment income on fixed maturities | $ 339 | $ 340 | $ 1,002 | $ 1,012 |
Net realized gains (losses) | 4 | (3) | 15 | 35 |
Affordable housing partnerships | (24) | (17) | (49) | (42) |
Other | 43 | 26 | 132 | 70 |
Consolidated investment entities | 24 | 26 | 101 | 79 |
Total | $ 386 | $ 372 | $ 1,201 | $ 1,154 |
Investments (AFS by Type) (Deta
Investments (AFS by Type) (Details 3) - Ameriprise Financial [Member] - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |
Investments | |||
Amortized cost | $ 30,343 | $ 29,492 | |
Gross unrealized gains | 924 | 1,561 | |
Gross unrealized losses | (427) | (126) | |
Fair value | 30,840 | 30,927 | |
Noncredit OTTI | [1] | 2 | 1 |
Fair value of securities owned and pledged as collateral | 1,900 | 1,700 | |
Fair value of securities owned and pledged as collateral which are eligible for rehypothecation | $ 1,000 | $ 803 | |
Fixed maturity securities as percentage of total investments | 87.00% | 86.00% | |
Corporate debt securities [Member] | |||
Investments | |||
Amortized cost | $ 13,880 | $ 13,976 | |
Gross unrealized gains | 658 | 1,131 | |
Gross unrealized losses | (147) | (32) | |
Fair value | 14,391 | 15,075 | |
Residential mortgage backed securities [Member] | |||
Investments | |||
Amortized cost | 6,310 | 6,585 | |
Gross unrealized gains | 27 | 63 | |
Gross unrealized losses | (112) | (37) | |
Fair value | 6,225 | 6,611 | |
Noncredit OTTI | [1] | 0 | |
Commercial mortgage backed securities [Member] | |||
Investments | |||
Amortized cost | 4,713 | 4,362 | |
Gross unrealized gains | 16 | 48 | |
Gross unrealized losses | (134) | (36) | |
Fair value | 4,595 | 4,374 | |
Asset backed securities [Member] | |||
Investments | |||
Amortized cost | 1,459 | 1,549 | |
Gross unrealized gains | 30 | 36 | |
Gross unrealized losses | (12) | (5) | |
Fair value | 1,477 | 1,580 | |
Noncredit OTTI | [1] | 2 | 1 |
State and municipal obligations [Member] | |||
Investments | |||
Amortized cost | 2,190 | 2,215 | |
Gross unrealized gains | 183 | 259 | |
Gross unrealized losses | (14) | (11) | |
Fair value | 2,359 | 2,463 | |
U.S. government and agencies obligations [Member] | |||
Investments | |||
Amortized cost | 1,495 | 502 | |
Gross unrealized gains | 0 | 1 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 1,495 | 503 | |
Foreign government bonds and obligations [Member] | |||
Investments | |||
Amortized cost | 296 | 298 | |
Gross unrealized gains | 10 | 20 | |
Gross unrealized losses | (8) | (4) | |
Fair value | $ 298 | 314 | |
Common stocks [Member] | |||
Investments | |||
Amortized cost | 5 | ||
Gross unrealized gains | 3 | ||
Gross unrealized losses | (1) | ||
Fair value | 7 | ||
Noncredit OTTI | [1] | $ 0 | |
[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) - Ameriprise Financial [Member] $ in Millions | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Investments | |||
Fixed Maturity Investments Rated Internally | $ 823 | $ 979 | |
Percentage of GNMA, FNMA and FHLMC securities rated AAA | 35.00% | 37.00% | |
Number of holdings of other than GNMA, FNMA, and FHLMC having greater than 10% of total equity | 0 | 0 | |
AAA [Member] | |||
Investments | |||
Amortized cost | $ 12,764 | $ 11,293 | |
Fair value | $ 12,551 | $ 11,331 | |
Percent of total fair value | 41.00% | 37.00% | |
AA [Member] | |||
Investments | |||
Amortized cost | $ 1,659 | $ 1,898 | |
Fair value | $ 1,801 | $ 2,114 | |
Percent of total fair value | 6.00% | 7.00% | |
A [Member] | |||
Investments | |||
Amortized cost | $ 4,158 | $ 4,760 | |
Fair value | $ 4,394 | $ 5,243 | |
Percent of total fair value | 14.00% | 17.00% | |
BBB [Member] | |||
Investments | |||
Amortized cost | $ 10,807 | $ 10,317 | |
Fair value | $ 11,140 | $ 10,989 | |
Percent of total fair value | 36.00% | 35.00% | |
Below investment grade [Member] | |||
Investments | |||
Amortized cost | [1] | $ 955 | $ 1,219 |
Fair value | [1] | $ 954 | $ 1,243 |
Percent of total fair value | 3.00% | 4.00% | |
Total fixed maturities [Member] | |||
Investments | |||
Amortized cost | $ 30,343 | $ 29,487 | |
Fair value | $ 30,840 | $ 30,920 | |
Percent of total fair value | 100.00% | 100.00% | |
Interest in CLOs managed by the Company [Member] | Below investment grade [Member] | |||
Investments | |||
Amortized cost | $ 7 | $ 6 | |
Fair value | $ 9 | $ 7 | |
[1] | The amortized cost and fair value of below investment grade securities includes interest in CLOs managed by the Company of $7 million and $9 million , respectively, at September 30, 2018 , and $6 million and $7 million , respectively, at December 31, 2017 |
Investments (EITF info) (Detail
Investments (EITF info) (Details 5) - Ameriprise Financial [Member] $ in Millions | Sep. 30, 2018USD ($)Positions | Dec. 31, 2017USD ($)Positions |
Number of securities | ||
Less than 12 months | Positions | 888 | 434 |
12 months or more | Positions | 427 | 337 |
Total | Positions | 1,315 | 771 |
Fair Value | ||
Less than 12 months | $ 12,098 | $ 5,312 |
12 months or more | 4,197 | 3,381 |
Total | 16,295 | 8,693 |
Unrealized losses | ||
Less than 12 months | (231) | (34) |
12 months or more | (196) | (92) |
Total | $ (427) | $ (126) |
Corporate debt securities [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 366 | 150 |
12 months or more | Positions | 79 | 70 |
Total | Positions | 445 | 220 |
Fair Value | ||
Less than 12 months | $ 5,808 | $ 1,791 |
12 months or more | 840 | 740 |
Total | 6,648 | 2,531 |
Unrealized losses | ||
Less than 12 months | (105) | (8) |
12 months or more | (42) | (24) |
Total | $ (147) | $ (32) |
Residential mortgage backed securities [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 177 | 102 |
12 months or more | Positions | 145 | 130 |
Total | Positions | 322 | 232 |
Fair Value | ||
Less than 12 months | $ 3,137 | $ 1,772 |
12 months or more | 1,675 | 1,467 |
Total | 4,812 | 3,239 |
Unrealized losses | ||
Less than 12 months | (48) | (11) |
12 months or more | (64) | (26) |
Total | $ (112) | $ (37) |
Commercial mortgage backed securities [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 116 | 67 |
12 months or more | Positions | 85 | 58 |
Total | Positions | 201 | 125 |
Fair Value | ||
Less than 12 months | $ 1,987 | $ 1,178 |
12 months or more | 1,245 | 783 |
Total | 3,232 | 1,961 |
Unrealized losses | ||
Less than 12 months | (61) | (12) |
12 months or more | (73) | (24) |
Total | $ (134) | $ (36) |
Asset backed securities [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 49 | 36 |
12 months or more | Positions | 24 | 26 |
Total | Positions | 73 | 62 |
Fair Value | ||
Less than 12 months | $ 722 | $ 424 |
12 months or more | 206 | 187 |
Total | 928 | 611 |
Unrealized losses | ||
Less than 12 months | (7) | (2) |
12 months or more | (5) | (3) |
Total | $ (12) | $ (5) |
State and municipal obligations [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 165 | 76 |
12 months or more | Positions | 80 | 34 |
Total | Positions | 245 | 110 |
Fair Value | ||
Less than 12 months | $ 391 | $ 141 |
12 months or more | 214 | 180 |
Total | 605 | 321 |
Unrealized losses | ||
Less than 12 months | (7) | (1) |
12 months or more | (7) | (10) |
Total | $ (14) | $ (11) |
Foreign government bonds and obligations [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 15 | 3 |
12 months or more | Positions | 14 | 15 |
Total | Positions | 29 | 18 |
Fair Value | ||
Less than 12 months | $ 53 | $ 6 |
12 months or more | 17 | 23 |
Total | 70 | 29 |
Unrealized losses | ||
Less than 12 months | (3) | 0 |
12 months or more | (5) | (4) |
Total | $ (8) | $ (4) |
Common stocks [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 0 | |
12 months or more | Positions | 4 | |
Total | Positions | 4 | |
Fair Value | ||
Less than 12 months | $ 0 | |
12 months or more | 1 | |
Total | 1 | |
Unrealized losses | ||
Less than 12 months | 0 | |
12 months or more | (1) | |
Total | $ (1) |
Investments (OTTI rollforward)
Investments (OTTI rollforward) (Details 6) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
OTTI Credit Losses Recognized in Earnings Rollforward | ||||
Beginning balance | $ 0 | $ 2 | $ 2 | $ 69 |
Credit losses for which an other-than-temporary impairment was previously recognized | 0 | 0 | 0 | 1 |
Reductions for securities sold during the period (realized) | 0 | 0 | 0 | (68) |
Ending balance | $ 2 | $ 2 | $ 2 | $ 2 |
Investments (Realized GL Info)
Investments (Realized GL Info) (Details 7) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investments | ||||
Other-than-temporary impairments | $ 0 | $ 0 | $ 0 | $ (1) |
Ameriprise Financial [Member] | ||||
Investments | ||||
Gross realized gains | 4 | 6 | 15 | 50 |
Gross realized losses | 0 | (2) | (1) | (6) |
Other-than-temporary impairments | 0 | 0 | 0 | (1) |
Total | $ 4 | $ 4 | $ 14 | $ 43 |
Investments (AFS contractual ma
Investments (AFS contractual maturity) (Details 8) - Ameriprise Financial [Member] - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Amortized cost | ||
Due within one year | $ 3,251 | |
Due after one year through five years | 6,187 | |
Due after five years through 10 years | 3,912 | |
Due after 10 years | 4,511 | |
Total having single maturity dates | 17,861 | |
Amortized cost | 30,343 | $ 29,492 |
Fair value | ||
Due within one year | 3,265 | |
Due after one year through five years | 6,192 | |
Due after five years through 10 years | 3,882 | |
Due after 10 years | 5,204 | |
Total having single maturity dates | 18,543 | |
Fair value | 30,840 | 30,927 |
Residential mortgage backed securities [Member] | ||
Amortized cost | ||
Without single maturity dates | 6,310 | |
Amortized cost | 6,310 | 6,585 |
Fair value | ||
Without single maturity dates | 6,225 | |
Fair value | 6,225 | 6,611 |
Commercial mortgage backed securities [Member] | ||
Amortized cost | ||
Without single maturity dates | 4,713 | |
Amortized cost | 4,713 | 4,362 |
Fair value | ||
Without single maturity dates | 4,595 | |
Fair value | 4,595 | 4,374 |
Asset backed securities [Member] | ||
Amortized cost | ||
Without single maturity dates | 1,459 | |
Amortized cost | 1,459 | 1,549 |
Fair value | ||
Without single maturity dates | 1,477 | |
Fair value | $ 1,477 | $ 1,580 |
Financing Receivables (Allowanc
Financing Receivables (Allowance for Loan Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Rollforward of the allowance for loan losses | |||||
Beginning balance | $ 26 | $ 29 | |||
Financing Receivable, Allowance for Credit Losses, Write-downs | (2) | 0 | |||
Provision for Loan, Lease, and Other Losses | 0 | (1) | |||
Ending balance | $ 24 | $ 28 | 24 | 28 | |
Individually evaluated for impairment | 0 | 3 | 0 | 3 | |
Collectively evaluated for impairment | 24 | 25 | 24 | 25 | |
Credit quality information [Line Items] | |||||
Individually evaluated for impairment | 16 | 16 | $ 17 | ||
Collectively evaluated for impairment | 3,227 | 3,227 | 3,258 | ||
Total | 3,243 | 3,243 | 3,275 | ||
Recorded investment in financing receivables individually evaluated for impairment with no related allowance for loan losses | 16 | 16 | 17 | ||
Syndicated loans [Member] | |||||
Credit quality information [Line Items] | |||||
Total | 540 | 540 | 498 | ||
Loans purchased | 36 | 18 | 181 | 154 | |
Loans sold | 13 | $ 12 | 49 | $ 16 | |
Loans to financial advisors [Member] [Member] | |||||
Credit quality information [Line Items] | |||||
Principal amounts outstanding for advisor loans | 537 | 537 | 509 | ||
Allowance for loan losses related to loans to financial advisors | 24 | 24 | 23 | ||
Principal amounts outstanding for advisor loans no longer affiliated with the Ameriprise Financial | 18 | 18 | 19 | ||
Allowance for loan losses related to loans to financial advisors no longer affiliated with Ameriprise Financial | $ 12 | $ 12 | $ 12 |
Financing Receivables (Credit Q
Financing Receivables (Credit Quality Information Text) (Details 2) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | $ 3,243 | $ 3,275 |
90 days or more past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonperforming loans | 15 | 19 |
Commercial mortgage loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | $ 2,703 | $ 2,775 |
Percentage of commercial mortgage loans with highest risk rating | 0.00% | 0.00% |
Syndicated loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | $ 540 | $ 498 |
Syndicated loans [Member] | 90 days or more past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonperforming loans | $ 1 | $ 5 |
Financing Receivables (Credit_2
Financing Receivables (Credit Quality Information Tables) (Details 3) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 3,243 | $ 3,275 | ||
Less: allowance for loan losses | 24 | 26 | $ 28 | $ 29 |
Commercial mortgage loans [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | 2,703 | 2,775 | ||
Less: allowance for loan losses | 19 | 19 | ||
Total loans, net | $ 2,684 | $ 2,756 | ||
Percentage of gross commercial mortgage loans | 100.00% | 100.00% | ||
Commercial mortgage loans [Member] | Apartment Building [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 602 | $ 566 | ||
Percentage of gross commercial mortgage loans | 22.00% | 20.00% | ||
Commercial mortgage loans [Member] | Hotel [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 44 | $ 40 | ||
Percentage of gross commercial mortgage loans | 2.00% | 1.00% | ||
Commercial mortgage loans [Member] | Industrial [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 452 | $ 476 | ||
Percentage of gross commercial mortgage loans | 17.00% | 17.00% | ||
Commercial mortgage loans [Member] | Mixed use [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 47 | $ 44 | ||
Percentage of gross commercial mortgage loans | 2.00% | 2.00% | ||
Commercial mortgage loans [Member] | Office [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 441 | $ 492 | ||
Percentage of gross commercial mortgage loans | 16.00% | 18.00% | ||
Commercial mortgage loans [Member] | Retail [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 900 | $ 937 | ||
Percentage of gross commercial mortgage loans | 33.00% | 34.00% | ||
Commercial mortgage loans [Member] | Other [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 217 | $ 220 | ||
Percentage of gross commercial mortgage loans | 8.00% | 8.00% | ||
Commercial mortgage loans [Member] | East North Central [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 213 | $ 215 | ||
Percentage of gross commercial mortgage loans | 8.00% | 8.00% | ||
Commercial mortgage loans [Member] | East South Central [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 96 | $ 90 | ||
Percentage of gross commercial mortgage loans | 4.00% | 3.00% | ||
Commercial mortgage loans [Member] | Middle Atlantic [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 188 | $ 192 | ||
Percentage of gross commercial mortgage loans | 7.00% | 7.00% | ||
Commercial mortgage loans [Member] | Mountain [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 240 | $ 256 | ||
Percentage of gross commercial mortgage loans | 9.00% | 9.00% | ||
Commercial mortgage loans [Member] | New England [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 63 | $ 74 | ||
Percentage of gross commercial mortgage loans | 2.00% | 3.00% | ||
Commercial mortgage loans [Member] | Pacific [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 806 | $ 812 | ||
Percentage of gross commercial mortgage loans | 30.00% | 29.00% | ||
Commercial mortgage loans [Member] | South Atlantic [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 735 | $ 768 | ||
Percentage of gross commercial mortgage loans | 27.00% | 28.00% | ||
Commercial mortgage loans [Member] | West North Central [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 222 | $ 235 | ||
Percentage of gross commercial mortgage loans | 8.00% | 8.00% | ||
Commercial mortgage loans [Member] | West South Central [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 140 | $ 133 | ||
Percentage of gross commercial mortgage loans | 5.00% | 5.00% | ||
Syndicated loans [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 540 | $ 498 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Nonperforming loans | 15 | 19 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Syndicated loans [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Nonperforming loans | $ 1 | $ 5 |
Financing Receivables Financing
Financing Receivables Financing Receivables (Troubled Debt Restructurings) (Details 4) | Sep. 30, 2018USD ($) |
Receivables [Abstract] | |
Commitments to lend additional funds to borrowers whose loans have been restructured | $ 0 |
Deferred Acquisition Costs an_3
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Details) - Ameriprise Financial [Member] - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Balances of and changes in DAC [Roll Forward] | ||
Balance, at the beginning of the period | $ 2,676 | $ 2,648 |
Capitalization of acquisition costs | 241 | 220 |
Amortization, excluding the impact of valuation assumptions review | (213) | (201) |
Amortization, impact of valuation assumptions review | 33 | 12 |
Impact of change in net unrealized (gains) losses on securities | 95 | (18) |
Balance, at the end of the period | 2,832 | 2,661 |
Balances of and changes in DSIC [Roll Forward] | ||
Balance at the beginning of the period | 276 | 302 |
Capitalization of sales inducement costs | 2 | 3 |
Amortization, excluding the impact of valuation assumptions review | (26) | (26) |
Amortization, impact of valuation assumptions review | 0 | (1) |
Impact of change in net unrealized (gains) losses on securities | 16 | 1 |
Balance at the end of the period | $ 268 | $ 279 |
Policyholder Account Balances_3
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Balances by product) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | ||
Policyholder account balances | $ 20,021 | $ 20,251 | ||
Future policy benefits | 8,305 | 8,750 | ||
Policy claims and other policyholders' funds | 878 | 903 | ||
Policyholder account balances, future policy benefits and claims | 29,204 | 29,904 | ||
Fixed annuities [Member] | ||||
Policyholder account balances | [1] | 9,499 | 9,934 | |
Variable annuity fixed sub-accounts [Member] | ||||
Policyholder account balances | 5,127 | 5,166 | ||
VUL/UL insurance [Member] | ||||
Policyholder account balances | 3,057 | 3,047 | ||
IUL [Member] | ||||
Policyholder account balances | 1,649 | 1,384 | ||
Other life insurance [Member] | ||||
Policyholder account balances | 689 | 720 | ||
Variable annuity GMWB [Member] | ||||
Future policy benefits | (125) | [2] | 463 | |
Variable annuity GMAB [Member] | ||||
Future policy benefits | [3] | (83) | (80) | |
Other annuity liabilities [Member] | ||||
Future policy benefits | 26 | 78 | ||
Fixed annuities life contingent liabilities [Member] | ||||
Future policy benefits | 1,464 | 1,484 | ||
Life and disability income insurance [Member] | ||||
Future policy benefits | 1,219 | 1,221 | ||
Long term care insurance [Member] | ||||
Future policy benefits | 4,997 | 4,896 | ||
VUL/UL and other life insurance additional liabilities [Member] | ||||
Future policy benefits | $ 807 | $ 688 | ||
[1] | Includes fixed deferred annuities, non-life contingent fixed payout annuities and indexed annuity host contracts. | |||
[2] | Includes the fair value of GMWB embedded derivatives that was a net asset as of September 30, 2018 | |||
[3] | Includes the fair value of GMAB embedded derivatives that was a net asset as of both September 30, 2018 and December 31, 2017 |
Policyholder Account Balances_4
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Separate Account Liabilities) (Details 2) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Separate Accounts Disclosure [Abstract] | ||
Variable annuity | $ 74,317 | $ 75,174 |
VUL insurance | 7,338 | 7,352 |
Other insurance | 33 | 34 |
Threadneedle investment liabilities | 4,904 | 4,808 |
Total | $ 86,592 | $ 87,368 |
Variable Annuity and Insuranc_3
Variable Annuity and Insurance Guarantees (VA Guarantees Details) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | ||
GMDB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 78,695 | $ 79,498 |
Contract value in separate accounts | [1] | 73,609 | 74,378 |
Net amount at risk | [1] | $ 106 | $ 83 |
Weighted average attained age | [1] | 67 years | 66 years |
GMDB [Member] | Return of premium [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 61,379 | $ 61,418 |
Contract value in separate accounts | [1] | 59,441 | 59,461 |
Net amount at risk | [1] | $ 12 | $ 9 |
Weighted average attained age | [1] | 67 years | 66 years |
GMDB [Member] | Five/six-year reset [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 8,504 | $ 8,870 |
Contract value in separate accounts | [1] | 5,781 | 6,149 |
Net amount at risk | [1] | $ 11 | $ 12 |
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] | $ 6,215 | $ 6,548 |
Contract value in separate accounts | [1] | 5,864 | 6,187 |
Net amount at risk | [1] | $ 19 | $ 11 |
Weighted average attained age | [1] | 69 years | 69 years |
GMDB [Member] | Five-year ratchet [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 1,471 | $ 1,563 |
Contract value in separate accounts | [1] | 1,416 | 1,506 |
Net amount at risk | [1] | $ 1 | $ 1 |
Weighted average attained age | [1] | 65 years | 65 years |
GMDB [Member] | Other [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 1,126 | $ 1,099 |
Contract value in separate accounts | [1] | 1,107 | 1,075 |
Net amount at risk | [1] | $ 63 | $ 50 |
Weighted average attained age | [1] | 72 years | 72 years |
GGU death benefit [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 1,105 | $ 1,118 |
Contract value in separate accounts | [1] | 1,055 | 1,067 |
Net amount at risk | [1] | $ 129 | $ 133 |
Weighted average attained age | [1] | 70 years | 70 years |
GMIB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 208 | $ 233 |
Contract value in separate accounts | [1] | 192 | 216 |
Net amount at risk | [1] | $ 7 | $ 7 |
Weighted average attained age | [1] | 69 years | 69 years |
GMWB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 47,123 | $ 46,883 |
Contract value in separate accounts | [1] | 47,021 | 46,759 |
Net amount at risk | [1] | $ 218 | $ 130 |
Weighted average attained age | [1] | 68 years | 67 years |
GMWB [Member] | GMWB standard benefit [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 2,252 | $ 2,508 |
Contract value in separate accounts | [1] | 2,245 | 2,500 |
Net amount at risk | [1] | $ 1 | $ 1 |
Weighted average attained age | [1] | 72 years | 71 years |
GMWB [Member] | GMWB for life [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 44,871 | $ 44,375 |
Contract value in separate accounts | [1] | 44,776 | 44,259 |
Net amount at risk | [1] | $ 217 | $ 129 |
Weighted average attained age | [1] | 68 years | 67 years |
GMAB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 2,762 | $ 3,086 |
Contract value in separate accounts | [1] | 2,758 | 3,083 |
Net amount at risk | [1] | $ 0 | $ 0 |
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. |
Variable Annuity and Insuranc_4
Variable Annuity and Insurance Guarantees (IUL Secondary Guarantees) (Details) - UL secondary guarantees [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Insurance Guarantees by Benefit Type | ||
Net amount at risk | $ 6,499 | $ 6,460 |
Weighted average attained age | 66 years | 65 years |
Variable Annuity and Insuranc_5
Variable Annuity and Insurance Guarantees (Liability Rollforward) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | ||
GMDB and GGU [Member] | |||
Changes in Additional Liabilities for Variable Annuity and Insurance Guarantees | |||
Balance, at the beginning of the period | $ 17 | $ 16 | |
Incurred claims | 5 | 3 | |
Paid claims | (4) | (3) | |
Balance, at the end of the period | 18 | 16 | |
GMIB [Member] | |||
Changes in Additional Liabilities for Variable Annuity and Insurance Guarantees | |||
Balance, at the beginning of the period | 6 | 8 | |
Paid claims | 0 | (1) | |
Balance, at the end of the period | 6 | 7 | |
GMWB [Member] | |||
Changes in Additional Liabilities for Variable Annuity and Insurance Guarantees | |||
Balance, at the beginning of the period | 463 | 1,017 | |
Incurred claims | [1] | (588) | (478) |
Balance, at the end of the period | (125) | 539 | |
GMAB [Member] | |||
Changes in Additional Liabilities for Variable Annuity and Insurance Guarantees | |||
Balance, at the beginning of the period | (80) | (24) | |
Incurred claims | [1] | (3) | (49) |
Balance, at the end of the period | (83) | (73) | |
UL [Member] | |||
Changes in Additional Liabilities for Variable Annuity and Insurance Guarantees | |||
Balance, at the beginning of the period | 489 | 434 | |
Incurred claims | 171 | 59 | |
Paid claims | (19) | (22) | |
Balance, at the end of the period | $ 641 | $ 471 | |
[1] | The incurred claims for GMWB and GMAB include the change in the fair value of the liabilities (contra liabilities) less paid claims. |
Variable Annuity and Insuranc_6
Variable Annuity and Insurance Guarantees (Separate Account Balances by Type) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Mutual funds | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | $ 73,873 | $ 74,676 |
Equity [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | 44,968 | 46,038 |
Bond [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | 22,846 | 23,529 |
Other [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | $ 6,059 | $ 5,109 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - Ameriprise Financial [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | ||
Debt and stated interest rates | |||
Long-term debt | $ 2,870 | $ 2,891 | |
Total long-term debt | 2,870 | 2,891 | |
Short-term borrowings | 201 | 200 | |
Total | 3,071 | 3,091 | |
Federal Home Loan Bank [Member] | |||
Debt and stated interest rates | |||
Short-term borrowings | $ 151 | $ 150 | |
Stated interest rate (as a percent) short-term debt | 2.30% | 1.50% | |
Remaining maturity of outstanding amount of short term borrowings | 3 months | 4 months | |
Repurchase agreements [Member] | |||
Debt and stated interest rates | |||
Short-term borrowings | $ 50 | $ 50 | |
Stated interest rate (as a percent) short-term debt | 2.30% | 1.40% | |
Remaining maturity of outstanding amount of short term borrowings | 3 months | 1 month | |
Senior notes due 2019 [Member] | |||
Debt and stated interest rates | |||
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 | |||
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 | |||
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 | |||
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 | |||
Long-term debt | $ 500 | $ 500 | |
Stated interest rate (as a percent) long-term debt | 2.90% | 2.90% | |
Capitalized lease obligations [Member] | |||
Debt and stated interest rates | |||
Capitalized lease obligations | $ 28 | $ 38 | |
Other [Member] | |||
Debt and stated interest rates | |||
Other | [1] | (8) | 3 |
Residential mortgage backed securities [Member] | Repurchase agreements [Member] | |||
Debt and stated interest rates | |||
Securities pledged as collateral | 53 | 43 | |
Commercial mortgage backed securities [Member] | Federal Home Loan Bank [Member] | |||
Debt and stated interest rates | |||
Securities pledged as collateral | 788 | 750 | |
Commercial mortgage backed securities [Member] | Repurchase agreements [Member] | |||
Debt and stated interest rates | |||
Securities pledged as collateral | $ 0 | $ 8 | |
[1] | Amounts include adjustments for fair value hedges on the Company’s long-term debt and unamortized discount and debt issuance costs. See Note 13 for information on the Company’s fair value hedges. |
Line of Credit Narrative (Detai
Line of Credit Narrative (Details 2) - Ameriprise Financial [Member] - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Oct. 12, 2017 |
Line of Credit Facility | |||
Current borrowing capacity for line of credit facility | $ 750 | ||
Maximum borrowing capacity for line of credit facility | $ 1,000 | ||
Line of credit borrowings outstanding | $ 0 | $ 0 | |
Outstanding letters of credit issued against line of credit facility | $ 1 | $ 1 |
Fair Values of Assets and Lia_3
Fair Values of Assets and Liabilities (Recurring) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2017 | ||||
Assets | |||||
Investments segregated for regulatory purposes | $ 274 | $ 623 | |||
Liabilities | |||||
Individual contracts in a liability position | [1],[2] | 3,893 | 3,895 | ||
Individual contracts in an asset position | [3] | 3,354 | 3,563 | ||
Cumulative increase (decrease) in embedded derivatives due to nonperformance | (370) | (399) | |||
GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities | |||||
Individual contracts in a liability position | 178 | 443 | |||
Individual contracts in an asset position | 864 | 492 | |||
Ameriprise Financial [Member] | |||||
Assets | |||||
Available-for-Sale securities | 30,840 | 30,927 | |||
Separate account assets at NAV | 86,592 | 87,368 | |||
Ameriprise Financial [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 14,391 | 15,075 | |||
Ameriprise Financial [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 6,225 | 6,611 | |||
Ameriprise Financial [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 4,595 | 4,374 | |||
Ameriprise Financial [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 1,477 | 1,580 | |||
Ameriprise Financial [Member] | State and municipal obligations [Member] | |||||
Assets | |||||
Available-for-Sale securities | 2,359 | 2,463 | |||
Ameriprise Financial [Member] | U.S. government and agencies obligations [Member] | |||||
Assets | |||||
Available-for-Sale securities | 1,495 | 503 | |||
Ameriprise Financial [Member] | Foreign government bonds and obligations [Member] | |||||
Assets | |||||
Available-for-Sale securities | 298 | 314 | |||
Ameriprise Financial [Member] | Common stocks [Member] | |||||
Assets | |||||
Available-for-Sale securities | 7 | ||||
Ameriprise Financial [Member] | Recurring basis [Member] | |||||
Assets | |||||
Cash equivalents | 1,961 | 2,172 | |||
Available-for-Sale securities | 30,840 | 30,927 | |||
Equity securities | 2 | ||||
Equity securities at NAV | [4] | 6 | |||
Trading securities | 44 | 44 | |||
Separate account assets at NAV | [4] | 86,592 | 87,368 | ||
Investments segregated for regulatory purposes | 274 | 623 | |||
Other assets | 3,354 | 3,563 | |||
Total assets at fair value | 123,073 | 124,697 | |||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 13 | [5] | 557 | [6] | |
Customer deposits | 12 | 10 | |||
Other liabilities | 3,927 | 3,371 | |||
Total liabilities at fair value | 3,952 | 3,938 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Other liabilities [Member] | |||||
Liabilities | |||||
Other liabilities | 59 | 43 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Indexed annuity embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 15 | 5 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | IUL embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 684 | 601 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | (686) | [7] | (49) | [8] | |
Ameriprise Financial [Member] | Recurring basis [Member] | Interest rate derivative contracts [Member] | |||||
Assets | |||||
Other assets | 617 | 1,104 | |||
Liabilities | |||||
Other liabilities | 603 | 416 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Equity derivative contracts [Member] | |||||
Assets | |||||
Other assets | 2,685 | 2,423 | |||
Liabilities | |||||
Other liabilities | 3,237 | 2,883 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Credit derivative contracts [Member] | |||||
Assets | |||||
Other assets | 7 | ||||
Liabilities | |||||
Other liabilities | 2 | ||||
Ameriprise Financial [Member] | Recurring basis [Member] | Foreign exchange derivative contracts [Member] | |||||
Assets | |||||
Other assets | 45 | 36 | |||
Liabilities | |||||
Other liabilities | 28 | 27 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 14,391 | 15,075 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 6,225 | 6,611 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 4,595 | 4,374 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 1,477 | 1,580 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | State and municipal obligations [Member] | |||||
Assets | |||||
Available-for-Sale securities | 2,359 | 2,463 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | U.S. government and agencies obligations [Member] | |||||
Assets | |||||
Available-for-Sale securities | 1,495 | 503 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Foreign government bonds and obligations [Member] | |||||
Assets | |||||
Available-for-Sale securities | 298 | 314 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Common stocks [Member] | |||||
Assets | |||||
Available-for-Sale securities | 1 | ||||
Ameriprise Financial [Member] | Recurring basis [Member] | Common stocks at NAV [Member] | |||||
Assets | |||||
Available-for-Sale securities | [4] | 6 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | |||||
Assets | |||||
Cash equivalents | 168 | 147 | |||
Available-for-Sale securities | 1,495 | 504 | |||
Equity securities | 1 | ||||
Trading securities | 17 | 10 | |||
Investments segregated for regulatory purposes | 274 | 623 | |||
Other assets | 89 | 65 | |||
Total assets at fair value | 2,044 | 1,349 | |||
Liabilities | |||||
Other liabilities | 36 | 21 | |||
Total liabilities at fair value | 36 | 21 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | Other liabilities [Member] | |||||
Liabilities | |||||
Other liabilities | 20 | 9 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | Interest rate derivative contracts [Member] | |||||
Liabilities | |||||
Other liabilities | 1 | 1 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | Equity derivative contracts [Member] | |||||
Assets | |||||
Other assets | 87 | 63 | |||
Liabilities | |||||
Other liabilities | 14 | 7 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | Foreign exchange derivative contracts [Member] | |||||
Assets | |||||
Other assets | 2 | 2 | |||
Liabilities | |||||
Other liabilities | 1 | 4 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | U.S. government and agencies obligations [Member] | |||||
Assets | |||||
Available-for-Sale securities | 1,495 | 503 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | Common stocks [Member] | |||||
Assets | |||||
Available-for-Sale securities | 1 | ||||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | |||||
Assets | |||||
Cash equivalents | 1,793 | 2,025 | |||
Available-for-Sale securities | 28,235 | 29,116 | |||
Equity securities | 1 | ||||
Trading securities | 27 | 34 | |||
Other assets | 3,265 | 3,498 | |||
Total assets at fair value | 33,321 | 34,673 | |||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 4 | 5 | |||
Customer deposits | 12 | 10 | |||
Other liabilities | 3,862 | 3,322 | |||
Total liabilities at fair value | 3,878 | 3,337 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Other liabilities [Member] | |||||
Liabilities | |||||
Other liabilities | 10 | 6 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Indexed annuity embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 4 | 5 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Interest rate derivative contracts [Member] | |||||
Assets | |||||
Other assets | 617 | 1,104 | |||
Liabilities | |||||
Other liabilities | 602 | 415 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Equity derivative contracts [Member] | |||||
Assets | |||||
Other assets | 2,598 | 2,360 | |||
Liabilities | |||||
Other liabilities | 3,223 | 2,876 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Credit derivative contracts [Member] | |||||
Assets | |||||
Other assets | 7 | ||||
Liabilities | |||||
Other liabilities | 2 | ||||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Foreign exchange derivative contracts [Member] | |||||
Assets | |||||
Other assets | 43 | 34 | |||
Liabilities | |||||
Other liabilities | 27 | 23 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 13,399 | 13,936 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 6,116 | 6,456 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 4,595 | 4,374 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 1,468 | 1,573 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | State and municipal obligations [Member] | |||||
Assets | |||||
Available-for-Sale securities | 2,359 | 2,463 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Foreign government bonds and obligations [Member] | |||||
Assets | |||||
Available-for-Sale securities | 298 | 314 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | |||||
Assets | |||||
Available-for-Sale securities | 1,110 | 1,301 | |||
Total assets at fair value | 1,110 | 1,301 | |||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 9 | 552 | |||
Other liabilities | 29 | 28 | |||
Total liabilities at fair value | 38 | 580 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | Other liabilities [Member] | |||||
Liabilities | |||||
Other liabilities | 29 | 28 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | Indexed annuity embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 11 | ||||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | IUL embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 684 | 601 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | (686) | (49) | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 992 | 1,139 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 109 | 155 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | $ 9 | $ 7 | |||
[1] | 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 $870 million and $1.3 billion as of September 30, 2018 and December 31, 2017 | ||||
[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 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 $(370) million cumulative increase (decrease) to the embedded derivatives as of September 30, 2018 | ||||
[6] | The Company’s adjustment for nonperformance risk resulted in a $(399) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2017 | ||||
[7] | The fair value of the GMWB and GMAB embedded derivatives included $178 million of individual contracts in a liability position and $864 million of individual contracts in an asset position as of September 30, 2018 | ||||
[8] | The fair value of the GMWB and GMAB embedded derivatives included $443 million of individual contracts in a liability position and $492 million of individual contracts in an asset position as of December 31, 2017 |
Fair Values of Assets and Lia_4
Fair Values of Assets and Liabilities (Level 3 rollforwards-Assets) (Details 2) - Ameriprise Financial [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |||||
Transfers from Level 1 to Level 2, assets | $ 0 | $ 0 | $ 0 | $ 0 | |
Transfers from Level 2 to Level 1, assets | 0 | 0 | 0 | 0 | |
Corporate debt securities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 1,040 | 1,333 | 1,139 | 1,311 | |
Total gains (losses) included in net income | (1) | ||||
Total gains (losses) included in other comprehensive income (loss) | (2) | (1) | (28) | 1 | |
Purchases | 39 | 15 | 109 | ||
Settlements | (46) | (104) | (133) | (154) | |
Balance, at the end of the period | 992 | 1,267 | 992 | 1,267 | |
Changes in unrealized gains (losses) relating to assets held at end of period | (1) | ||||
Residential mortgage backed securities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 120 | 172 | 155 | 268 | |
Total gains (losses) included in other comprehensive income (loss) | 1 | 1 | 2 | ||
Purchases | 20 | 20 | 132 | ||
Settlements | (5) | (9) | (24) | (34) | |
Transfers into Level 3 | 20 | 20 | |||
Transfers out of Level 3 | (26) | (19) | (43) | (223) | |
Balance, at the end of the period | 109 | 165 | 109 | 165 | |
Commercial mortgage backed securities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 52 | 0 | 0 | 0 | |
Purchases | 65 | 52 | 65 | ||
Transfers out of Level 3 | (52) | (52) | |||
Balance, at the end of the period | 0 | 65 | 0 | 65 | |
Asset backed securities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 31 | 33 | 7 | 68 | |
Total gains (losses) included in other comprehensive income (loss) | 1 | (2) | 1 | ||
Purchases | 10 | 32 | 64 | ||
Settlements | (1) | (1) | (15) | ||
Transfers into Level 3 | 13 | 2 | 27 | ||
Transfers out of Level 3 | (22) | (19) | (32) | (109) | |
Balance, at the end of the period | 9 | 35 | 9 | 35 | |
Changes in unrealized gains (losses) relating to assets held at end of period | (1) | ||||
Common stocks [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 0 | 1 | |||
Total gains (losses) included in other comprehensive income (loss) | 1 | 1 | |||
Transfers into Level 3 | 8 | ||||
Transfers out of Level 3 | (9) | ||||
Balance, at the end of the period | 1 | 1 | |||
Total available-for-sale securities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 1,243 | 1,538 | 1,301 | 1,648 | |
Total gains (losses) included in net income | [1] | (1) | |||
Total gains (losses) included in other comprehensive income (loss) | (1) | (1) | (26) | 4 | |
Purchases | 20 | 114 | 119 | 370 | |
Settlements | (52) | (113) | (158) | (203) | |
Transfers into Level 3 | 33 | 2 | 55 | ||
Transfers out of Level 3 | (100) | (38) | (127) | (341) | |
Balance, at the end of the period | 1,110 | $ 1,533 | 1,110 | 1,533 | |
Changes in unrealized gains (losses) relating to assets held at end of period | [1] | (1) | $ (1) | ||
Other Contract [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 2 | 0 | |||
Total gains (losses) included in net income | [2] | (2) | (3) | ||
Purchases | 3 | ||||
Balance, at the end of the period | 0 | 0 | |||
Changes in unrealized gains (losses) relating to assets held at end of period | [2] | $ (2) | $ (3) | ||
[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 Values of Assets and Lia_5
Fair Values of Assets and Liabilities (Level 3 rollforwards-Liabilities) (Details 3) - Ameriprise Financial [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||
Transfers from Level 1 to Level 2, liabilities | $ 0 | $ 0 | $ 0 | $ 0 | |
Transfers from Level 2 to Level 1, liabilities | 0 | 0 | 0 | 0 | |
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||
Gain (Loss) on Embedded Derivative, Net | (58) | (37) | (10) | (91) | |
Indexed annuity embedded derivatives [Member] | |||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 8 | 0 | |||
Issues | 3 | 11 | |||
Balance, at the end of the period | 11 | 11 | |||
IUL embedded derivatives [Member] | |||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 620 | 527 | 601 | 464 | |
Total gains (losses) included in net income | [1] | 55 | 35 | 56 | 75 |
Issues | 24 | 26 | 65 | 70 | |
Settlements | (15) | (11) | (38) | (32) | |
Balance, at the end of the period | 684 | 577 | 684 | 577 | |
Changes in unrealized (gains) losses relating to liabilities held at end of period | [1] | 55 | 35 | 56 | 75 |
GMWB and GMAB embedded derivatives [Member] | |||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | (425) | 272 | (49) | 614 | |
Total gains (losses) included in net income | [2] | (344) | (309) | (875) | (798) |
Issues | 90 | 84 | 257 | 238 | |
Settlements | (7) | (2) | (19) | (9) | |
Balance, at the end of the period | (686) | 45 | (686) | 45 | |
Changes in unrealized (gains) losses relating to liabilities held at end of period | [2] | (347) | (307) | (868) | (771) |
Policyholder account balances, future policy benefits and claims [Member] | |||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 203 | 799 | 552 | 1,078 | |
Total gains (losses) included in net income | (289) | (274) | (819) | (723) | |
Issues | 117 | 110 | 333 | 308 | |
Settlements | (22) | (13) | (57) | (41) | |
Balance, at the end of the period | 9 | 622 | 9 | 622 | |
Changes in unrealized (gains) losses relating to liabilities held at end of period | (292) | (272) | (812) | (696) | |
Contingent consideration liabilities [Member] | |||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 29 | 14 | 28 | 13 | |
Total gains (losses) included in net income | [3] | 1 | 1 | ||
Issues | 13 | 13 | |||
Balance, at the end of the period | $ 29 | $ 27 | $ 29 | $ 27 | |
[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 Liabil
Fair Value of Assets and Liabilities (Unobservable inputs) (Details 4) - Level 3 [Member] - Ameriprise Financial [Member] - Discounted cash flow [Member] $ in Millions | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Corporate debt securities [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Corporate debt securities (private placements), fair value | $ 991 | $ 1,138 | |
Corporate debt securities [Member] | Minimum [Member] | Yield/spread to U.S. Treasuries [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Corporate debt securities, (private placements), measurement inputs | 0.007 | 0.007 | |
Corporate debt securities [Member] | Maximum [Member] | Yield/spread to U.S. Treasuries [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Corporate debt securities, (private placements), measurement inputs | 0.024 | 0.023 | |
Corporate debt securities [Member] | Weighted average [Member] | Yield/spread to U.S. Treasuries [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Corporate debt securities, (private placements), measurement inputs | 0.011 | 0.011 | |
Asset-backed securities [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Asset backed securities, fair value | $ 9 | $ 7 | |
Asset-backed securities [Member] | Annual short-term default rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Asset backed securities, measurement inputs | 0.023 | 0.038 | |
Asset-backed securities [Member] | Discount rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Asset backed securities, measurement inputs | 0.115 | 0.105 | |
Asset-backed securities [Member] | Minimum [Member] | Annual long-term default rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Asset backed securities, measurement inputs | 0.025 | 0.025 | |
Asset-backed securities [Member] | Minimum [Member] | Constant prepayment rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Asset backed securities, measurement inputs | 0.050 | 0.050 | |
Asset-backed securities [Member] | Minimum [Member] | Loss recovery [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Asset backed securities, measurement inputs | 0.364 | 0.364 | |
Asset-backed securities [Member] | Maximum [Member] | Annual long-term default rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Asset backed securities, measurement inputs | 0.035 | 0.030 | |
Asset-backed securities [Member] | Maximum [Member] | Constant prepayment rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Asset backed securities, measurement inputs | 0.100 | 0.100 | |
Asset-backed securities [Member] | Maximum [Member] | Loss recovery [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Asset backed securities, measurement inputs | 0.636 | 0.636 | |
Asset-backed securities [Member] | Weighted average [Member] | Annual long-term default rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Asset backed securities, measurement inputs | 0.030 | 0.027 | |
Asset-backed securities [Member] | Weighted average [Member] | Constant prepayment rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Asset backed securities, measurement inputs | 0.100 | 0.099 | |
Asset-backed securities [Member] | Weighted average [Member] | Loss recovery [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Asset backed securities, measurement inputs | 0.636 | 0.632 | |
IUL embedded derivatives [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivatives, fair value | $ 684 | $ 601 | |
IUL embedded derivatives [Member] | Nonperformance risk [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivatives, measurement inputs | [1] | 0.0083 | 0.0071 |
Indexed annuity embedded derivatives [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivatives, fair value | $ 11 | ||
Indexed annuity embedded derivatives [Member] | Nonperformance risk [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivatives, measurement inputs | [1] | 0.0083 | |
Indexed annuity embedded derivatives [Member] | Minimum [Member] | Surrender rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivatives, measurement inputs | 0 | ||
Indexed annuity embedded derivatives [Member] | Maximum [Member] | Surrender rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivatives, measurement inputs | 0.500 | ||
GMWB and GMAB embedded derivatives [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivatives, fair value | $ (686) | $ (49) | |
GMWB and GMAB embedded derivatives [Member] | Nonperformance risk [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivatives, measurement inputs | [1] | 0.0083 | 0.0071 |
GMWB and GMAB embedded derivatives [Member] | Minimum [Member] | Surrender rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivatives, measurement inputs | 0.001 | 0.001 | |
GMWB and GMAB embedded derivatives [Member] | Minimum [Member] | Utilization of guaranteed withdrawals [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivatives, measurement inputs | [2] | 0 | 0 |
GMWB and GMAB embedded derivatives [Member] | Minimum [Member] | Market volatility [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivatives, measurement inputs | [3] | 0.037 | 0.037 |
GMWB and GMAB embedded derivatives [Member] | Maximum [Member] | Surrender rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivatives, measurement inputs | 0.734 | 0.747 | |
GMWB and GMAB embedded derivatives [Member] | Maximum [Member] | Utilization of guaranteed withdrawals [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivatives, measurement inputs | [2] | 0.360 | 0.420 |
GMWB and GMAB embedded derivatives [Member] | Maximum [Member] | Market volatility [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivatives, measurement inputs | [3] | 0.155 | 0.161 |
Contingent consideration liabilities [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Contigent consideration liabilities, fair value | $ 29 | $ 28 | |
Contingent consideration liabilities [Member] | Discount rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Contingent consideration liabilities, measurement input | 9.00% | 9.00% | |
[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 Values of Assets and Lia_6
Fair Values of Assets and Liabilities Fair Value of Assets & Liabilities (Non-Recurring) (Details) - Nonconsolidated VIEs [Member] - Affordable housing partnerships and other real estate partnerships[Member] - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Affordable housing partnerships, carrying value | $ 364 | $ 408 |
Non-recurring basis [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Affordable housing partnerships, carrying value | $ 132 | $ 166 |
Fair Values of Assets and Lia_7
Fair Values of Assets and Liabilities (Financial Instruments not at FV) (Details 5) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | ||
Financial Liabilities | ||||
Separate account liabilities | $ 86,592 | $ 87,368 | ||
Ameriprise Financial [Member] | ||||
Financial Liabilities | ||||
Separate account liabilities | 86,592 | 87,368 | ||
Ameriprise Financial [Member] | Carrying Value [Member] | ||||
Financial Assets | ||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 2,684 | 2,756 | ||
Policy and certificate loans | 854 | 845 | ||
Margin loans and securities borrowed | 1,653 | 1,537 | ||
Restricted Cash and Cash Equivalents | 2,219 | 2,524 | ||
Other Investments and Other Assets | 559 | 725 | [1] | |
Financial Liabilities | ||||
Policyholder account balances, future policy benefits and claims | 9,786 | 10,246 | ||
Investment Certificate Reserves | 7,319 | 6,390 | ||
Brokerage Customer Deposits | 3,427 | 3,915 | ||
Separate account liabilities | 5,275 | 5,177 | ||
Debt and Other Liabilities | 3,249 | 3,290 | ||
Recurring basis [Member] | Ameriprise Financial [Member] | ||||
Financial Assets | ||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 2,620 | 2,752 | ||
Policy and certificate loans | 805 | 801 | ||
Margin loans and securities borrowed | 1,644 | 1,536 | ||
Restricted Cash and Cash Equivalents | 2,219 | 2,524 | ||
Other Investments and Other Assets | 562 | 726 | [1] | |
Financial Liabilities | ||||
Policyholder account balances, future policy benefits and claims | 9,846 | 10,755 | ||
Investment Certificate Reserves | 7,303 | 6,374 | ||
Brokerage Customer Deposits | 3,427 | 3,915 | ||
Separate account liabilities | [2] | 5,275 | 5,177 | |
Debt and Other Liabilities | 3,251 | 3,417 | ||
Certificates of deposit with original or remaining maturities at the time of purchase of more than 90 days but less then 12 months | 205 | |||
Recurring basis [Member] | Ameriprise Financial [Member] | Level 1 [Member] | ||||
Financial Assets | ||||
Margin loans and securities borrowed | 118 | 103 | ||
Restricted Cash and Cash Equivalents | 2,219 | 2,524 | ||
Financial Liabilities | ||||
Brokerage Customer Deposits | 3,427 | 3,915 | ||
Debt and Other Liabilities | 124 | 118 | ||
Recurring basis [Member] | Ameriprise Financial [Member] | Level 2 [Member] | ||||
Financial Assets | ||||
Margin loans and securities borrowed | 1,023 | 946 | ||
Other Investments and Other Assets | 525 | 677 | [1] | |
Financial Liabilities | ||||
Debt and Other Liabilities | 3,055 | 3,180 | ||
Recurring basis [Member] | Ameriprise Financial [Member] | Level 3 [Member] | ||||
Financial Assets | ||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 2,620 | 2,752 | ||
Policy and certificate loans | 805 | 801 | ||
Margin loans and securities borrowed | 503 | 487 | ||
Other Investments and Other Assets | 37 | 49 | [1] | |
Financial Liabilities | ||||
Policyholder account balances, future policy benefits and claims | 9,846 | 10,755 | ||
Investment Certificate Reserves | 7,303 | 6,374 | ||
Debt and Other Liabilities | $ 72 | $ 119 | ||
[1] | Amounts have been corrected to include certificates of deposit with original or remaining maturities at the time of purchase of more than 90 days but less than 12 months of $205 million | |||
[2] | Amounts are comprised of certain financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. |
Assets Subject to Netting (Deta
Assets Subject to Netting (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | ||
Derivatives [Abstract] | ||||
Gross amounts of recognized assets | [1] | $ 3,354 | $ 3,563 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | ||||
Financial instruments | [2] | (2,905) | (2,669) | |
Cash collateral | (413) | (760) | ||
Securities collateral | (5) | (88) | ||
Net amount | 31 | 46 | ||
Securities borrowed [Abstract] | ||||
Gross amounts of recognized assets | 118 | 103 | ||
Gross amounts not offset in the consolidated balance sheets [Abstract] | ||||
Financial instruments | [2] | (15) | (19) | |
Securities collateral | (100) | (82) | ||
Net amount | 3 | 2 | ||
Total [Abstract] | ||||
Gross amounts of recognized assets | 3,472 | 3,666 | ||
Gross amounts not offset in the consolidated balance sheets [Abstract] | ||||
Financial instruments | [2] | (2,920) | (2,688) | |
Cash collateral | (413) | (760) | ||
Securities collateral | (105) | (170) | ||
Net amount | 34 | 48 | ||
OTC [Member] | ||||
Derivatives [Abstract] | ||||
Gross amounts of recognized assets | 3,327 | 3,520 | ||
Gross amounts not offset in the consolidated balance sheets [Abstract] | ||||
Financial instruments | [2] | (2,895) | (2,653) | |
Cash collateral | (413) | (760) | ||
Securities collateral | (5) | (88) | ||
Net amount | 14 | 19 | ||
OTC cleared [Member] | ||||
Derivatives [Abstract] | ||||
Gross amounts of recognized assets | 10 | [3] | 21 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | ||||
Financial instruments | [2] | (9) | [3] | (15) |
Net amount | 1 | [3] | 6 | |
Exchange-traded [Member] | ||||
Derivatives [Abstract] | ||||
Gross amounts of recognized assets | 17 | 22 | ||
Gross amounts not offset in the consolidated balance sheets [Abstract] | ||||
Financial instruments | [2] | (1) | (1) | |
Cash collateral | 0 | |||
Net amount | $ 16 | $ 21 | ||
[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. | |||
[3] | . |
Liabilities Subject to Netting
Liabilities Subject to Netting (Details 2) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | ||
Derivatives [Abstract] | ||||
Gross amounts of recognized liabilities | [1],[2] | $ 3,893 | $ 3,895 | |
Securities loaned [Abstract] | ||||
Gross amounts of recognized liabilities | 124 | 118 | ||
Gross amounts not offset in the consolidated balance sheets [Abstract] | ||||
Financial instruments | (15) | [3] | (19) | |
Securities collateral | (105) | (94) | ||
Net amount | 4 | 5 | ||
Repurchase agreements [Abstract] | ||||
Gross amounts of recognized liabilities | 51 | 50 | ||
Gross amounts not offset in the consolidated balance sheets [Abstract] | ||||
Securities collateral | (51) | (50) | ||
Net amount | 0 | 0 | ||
Total [Abstract] | ||||
Gross amounts of recognized liabilities | 4,043 | 3,496 | ||
Gross amounts not offset in the consolidated balance sheets [Abstract] | ||||
Financial instruments | [3] | (2,920) | (2,688) | |
Cash collateral | (117) | (70) | ||
Securities collateral | (999) | (723) | ||
Net amount | 7 | 15 | ||
OTC [Member] | ||||
Derivatives [Abstract] | ||||
Gross amounts of recognized liabilities | 3,856 | 3,309 | ||
Gross amounts not offset in the consolidated balance sheets [Abstract] | ||||
Financial instruments | [3] | (2,895) | (2,653) | |
Cash collateral | (117) | (70) | ||
Securities collateral | (843) | (579) | ||
Net amount | 1 | 7 | ||
OTC cleared [Member] | ||||
Derivatives [Abstract] | ||||
Gross amounts of recognized liabilities | 9 | [4] | 16 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | ||||
Financial instruments | [3] | (9) | [4] | (15) |
Net amount | 0 | [4] | 1 | |
Exchange-traded [Member] | ||||
Derivatives [Abstract] | ||||
Gross amounts of recognized liabilities | 3 | 3 | ||
Gross amounts not offset in the consolidated balance sheets [Abstract] | ||||
Financial instruments | [3] | (1) | (1) | |
Net amount | 2 | 2 | ||
Total derivatives [Member] | ||||
Derivatives [Abstract] | ||||
Gross amounts of recognized liabilities | 3,868 | 3,328 | ||
Gross amounts not offset in the consolidated balance sheets [Abstract] | ||||
Financial instruments | [3] | (2,905) | (2,669) | |
Cash collateral | (117) | (70) | ||
Securities collateral | (843) | (579) | ||
Net amount | $ 3 | $ 10 | ||
[1] | 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 $870 million and $1.3 billion as of September 30, 2018 and December 31, 2017 | |||
[2] | The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and indexed annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. The fair value of the SMC embedded derivative liability is included in Customer deposits on the Consolidated Balance Sheets. | |||
[3] | Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. | |||
[4] |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Balance Sheet) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |
Derivatives and Hedging Activities | |||
Notional amount | $ 123,028 | $ 131,433 | |
Derivative liability after application of master netting arrangements and cash collateral including embedded derivative liabilities | 870 | 1,300 | |
Gross fair value of assets | [1] | 3,354 | 3,563 |
Gross fair value of liabilities | [2],[3] | 3,893 | 3,895 |
Fair value of investment securities received as collateral | 5 | 89 | |
Fair value of investment securities received as collateral that can be repledged | 5 | 89 | |
Fair value of investment securities received as collateral that were repledged | 0 | 0 | |
GMWB and GMAB embedded derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | 864 | 492 | |
Gross fair value of liabilities | 178 | 443 | |
GMWB and GMAB embedded derivatives [Member] | Policyholder account balances, future policy benefits and claims [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2],[3],[4] | (686) | (49) |
IUL embedded derivatives [Member] | Policyholder account balances, future policy benefits and claims [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2],[3] | 684 | 601 |
Indexed annuity embedded derivatives [Member] | Policyholder account balances, future policy benefits and claims [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2],[3] | 15 | 5 |
SMC embedded derivatives [Member] | Customer deposits [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2],[3] | 12 | 10 |
Total embedded derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2],[3] | 25 | 567 |
Designated as Hedging Instrument [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 675 | 762 | |
Designated as Hedging Instrument [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | [1] | 8 | 23 |
Designated as Hedging Instrument [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2],[3] | 0 | 4 |
Designated as Hedging Instrument [Member] | Interest rate contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 675 | 675 | |
Designated as Hedging Instrument [Member] | Interest rate contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | [1] | 8 | 23 |
Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 0 | 87 | |
Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2],[3] | 4 | |
Derivatives not designated as hedging instruments [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 122,353 | 130,671 | |
Derivatives not designated as hedging instruments [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | [1] | 3,346 | 3,540 |
Derivatives not designated as hedging instruments [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2],[3] | 3,868 | 3,324 |
Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 59,482 | 66,043 | |
Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | [1] | 609 | 1,081 |
Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2],[3] | 603 | 416 |
Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 56,352 | 59,292 | |
Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | [1] | 2,685 | 2,423 |
Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2],[3] | 3,237 | 2,883 |
Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 862 | 721 | |
Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | [1] | 7 | |
Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2],[3] | 2 | |
Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 4,307 | 4,163 | |
Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | [1] | 45 | 36 |
Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2],[3] | 28 | 23 |
Derivatives not designated as hedging instruments [Member] | Other contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | $ 1,350 | $ 452 | |
[1] | The fair value of freestanding derivative assets is included in Other assets 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 $870 million and $1.3 billion as of September 30, 2018 and December 31, 2017 | ||
[3] | 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. | ||
[4] | The fair value of the GMWB and GMAB embedded derivatives as of September 30, 2018 included $178 million of individual contracts in a liability position and $864 million of individual contracts in an asset position. 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 $492 million |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Income Statement) (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net investment income [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | $ 6 | $ (11) | $ 28 | $ (15) |
Net investment income [Member] | Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 6 | (1) | 28 | (8) |
Net investment income [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (1) | (10) | (1) | (7) |
Net investment income [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 1 | 1 | ||
Banking and deposit interest expense [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (1) | 0 | 0 | 0 |
Banking and deposit interest expense [Member] | SMC embedded derivatives [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (2) | (1) | (2) | (3) |
Banking and deposit interest expense [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 1 | 1 | 2 | 3 |
Distribution expenses [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 17 | 14 | 22 | 39 |
Distribution expenses [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 17 | 13 | 22 | 36 |
Distribution expenses [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 1 | 3 | ||
Interest credited to fixed accounts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (6) | (6) | 19 | 7 |
Interest credited to fixed accounts [Member] | IUL embedded derivatives [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (40) | (24) | (18) | (43) |
Interest credited to fixed accounts [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 34 | 18 | 37 | 50 |
Benefits, claims, losses and settlement expenses [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (171) | (24) | (425) | (341) |
Benefits, claims, losses and settlement expenses [Member] | GMWB and GMAB embedded derivatives [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 261 | 227 | 637 | 569 |
Benefits, claims, losses and settlement expenses [Member] | Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (205) | 14 | (738) | 61 |
Benefits, claims, losses and settlement expenses [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (229) | (261) | (341) | (920) |
Benefits, claims, losses and settlement expenses [Member] | Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 4 | (3) | 22 | (22) |
Benefits, claims, losses and settlement expenses [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 1 | (1) | (27) | |
Benefits, claims, losses and settlement expenses [Member] | Derivatives not designated as hedging instruments [Member] | Other contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (2) | (2) | (4) | (2) |
General and administrative expense [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (2) | 3 | (8) | 12 |
General and administrative expense [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 3 | 2 | 5 | 7 |
General and administrative expense [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | $ (5) | $ 1 | $ (13) | $ 5 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activites (Option Pay/Rec) (Details 3) $ in Millions | Sep. 30, 2018USD ($) | |
Summary of Option Premiums Payable and Receivable | ||
Premiums payable | $ 1,521 | |
Premiums receivable | 712 | |
2018 [Member] | ||
Summary of Option Premiums Payable and Receivable | ||
Premiums payable | 54 | [1] |
Premiums receivable | 31 | [1] |
2019 [Member] | ||
Summary of Option Premiums Payable and Receivable | ||
Premiums payable | 294 | |
Premiums receivable | 171 | |
2020 [Member] | ||
Summary of Option Premiums Payable and Receivable | ||
Premiums payable | 216 | |
Premiums receivable | 132 | |
2021 [Member] | ||
Summary of Option Premiums Payable and Receivable | ||
Premiums payable | 187 | |
Premiums receivable | 119 | |
2022 [Member] | ||
Summary of Option Premiums Payable and Receivable | ||
Premiums payable | 225 | |
Premiums receivable | 200 | |
2023-2027 [Member] | ||
Summary of Option Premiums Payable and Receivable | ||
Premiums payable | 545 | |
Premiums receivable | $ 59 | |
[1] | 2018 amounts represent the amounts payable and receivable for the period from October 1, 2018 to December 31, 2018 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities (Impact of Hedging Activity) (Details 4) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) | |||||
Cash flow hedge loss to be reclassified within twelve months recorded in net investment income | $ 0 | ||||
Derivative, Credit Risk Related Contingent Features [Abstract] | |||||
Aggregate fair value of derivative contracts in a net liability position containing such credit contingent instruments | $ 483 | 483 | $ 372 | ||
Aggregate fair value of assets posted as collateral for such instruments | 482 | 482 | 369 | ||
Aggregate fair value of additional assets required to be posted or needed to settle the instruments | 1 | 1 | $ 3 | ||
Cash flow hedges [Member] | |||||
Derivative Instruments, Gain (Loss) | |||||
Estimated reclassification of net pretax losses on cash flow hedges from accumulated other comprehensive income to earnings during the next 12 months | 1 | ||||
Cash flow hedge gain to be reclassified within twelve months to interest and debt expense | $ 1 | ||||
Longest period of time over which the entity hedges exposure to the variability in future cash flows | 17 years | ||||
Net investment hedges [Member] | |||||
Derivative Instruments, Gain (Loss) | |||||
Gain (loss) on net investment hedge | 7 | $ (4) | $ 13 | $ (3) | |
Interest rate contracts [Member] | Interest and debt expense [Member] | Fair value hedges [Member] | |||||
Derivative Instruments, Gain (Loss) | |||||
Amount of gain on fair value hedges recognized in income on derivatives | $ 3 | $ 4 | $ 9 | $ 12 |
Shareholders' Equity Comprehens
Shareholders' Equity Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||||||
Net unrealized securities gains, before tax [Abstract] | |||||||||
Net unrealized securities gains (losses) arising during the period, before tax | [1] | $ (106) | $ 60 | $ (924) | $ 304 | ||||
Reclassification of net securities (gains) losses included in net income, before tax | [2] | (4) | (4) | (14) | (43) | ||||
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, before tax | 28 | (61) | 347 | (168) | |||||
Net unrealized securities gains (losses), before tax | (82) | (5) | (591) | 93 | |||||
Net unrealized derivatives gains, before tax [Abstract] | |||||||||
Reclassification of net derivative (gains) losses included in net income, before tax | 0 | [3] | 1 | [3] | 0 | [4] | 3 | [4] | |
Net unrealized derivatives gains (losses), before tax | 0 | 1 | 0 | 3 | |||||
Defined benefit plans net gain (loss) arising during the period, before tax | 0 | 0 | 0 | 7 | |||||
Defined benefit plans, before tax | 0 | 0 | 0 | 7 | |||||
Foreign currency translation, before tax | (5) | 25 | (21) | 71 | |||||
Other, before tax | 0 | 0 | 0 | (1) | |||||
Total other comprehensive income (loss), before tax | (87) | 21 | (612) | 173 | |||||
Net unrealized securities gains (losses), tax impact [Abstract] | |||||||||
Net unrealized securities gains (losses) arising during the period, tax | [1] | 25 | (22) | 207 | (107) | ||||
Reclassification of net securities (gains) losses included in net income, tax | 1 | 1 | 3 | 15 | |||||
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, tax | (6) | 22 | (73) | 59 | |||||
Net unrealized securities gains (losses), tax | 20 | 1 | 137 | (33) | |||||
Net unrealized derivatives losses, tax impact [Abstract] | |||||||||
Reclassification of net derivative (gains) losses included in net income, tax | 0 | 0 | 0 | (1) | |||||
Net unrealized derivatives gains (losses), tax | 0 | 0 | 0 | (1) | |||||
Defined benefit plans net gain (loss) arising during the period, tax | 0 | 0 | 0 | (2) | |||||
Defined benefit plans, tax | 0 | 0 | 0 | (2) | |||||
Foreign currency translation, tax | 2 | (9) | 3 | (25) | |||||
Other, tax | 0 | 0 | 0 | 0 | |||||
Total other comprehensive income (loss), tax | 22 | (8) | 140 | (61) | |||||
Net unrealized securities gains (losses), net of tax [Abstract] | |||||||||
Net unrealized securities gains (losses) arising during the period, net of tax | [1] | (81) | 38 | (717) | 197 | ||||
Reclassification of net securities (gains) losses included in net income, net of tax | (3) | (3) | (11) | (28) | |||||
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, net of tax | 22 | (39) | 274 | (109) | |||||
Net unrealized securities gains (losses), net of tax | (62) | (4) | (454) | 60 | |||||
Net unrealized derivatives losses, net of tax [Abstract] | |||||||||
Reclassification of net derivative (gains) losses included in net income, net of tax | 0 | 1 | 0 | 2 | |||||
Net unrealized derivatives gains (losses), net of tax | 0 | 1 | 0 | 2 | |||||
Defined benefit plans net gain (loss) arising during the period, net of tax | 0 | 0 | 0 | 5 | |||||
Defined benefit plans, net of tax | 0 | 0 | 0 | 5 | |||||
Foreign currency translation adjustment, net of tax | (3) | 16 | (18) | 46 | |||||
Other, net of tax | 0 | 0 | 0 | (1) | |||||
Total other comprehensive income (loss), net of tax | (65) | 13 | (472) | 112 | |||||
Interest Expense, Borrowings [Member] | |||||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 0 | 1 | 1 | ||||||
Net investment income [Member] | |||||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 0 | $ 1 | $ 3 | ||||||
[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] | Pretax amounts are recorded in net investment income. | ||||||||
[3] | Includes nil pretax gain reclassified to interest and debt expense for both the three months ended September 30, 2018 and 2017 , and nil and $1 million pretax loss reclassified to net investment income for the three months ended September 30, 2018 and 2017 | ||||||||
[4] | Includes a $1 million pretax gain reclassified to interest and debt expense for both the nine months ended September 30, 2018 and 2017 , and a $1 million and $3 million pretax loss reclassified to net investment income for the nine months ended September 30, 2018 and 2017 |
AOCI Rollforward (Details 2)
AOCI Rollforward (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | $ (179) | $ 299 | $ 229 | $ 200 | ||
OCI before reclassifications | (62) | 15 | (461) | 133 | ||
Amounts reclassified from AOCI | (3) | (2) | (11) | (21) | ||
Total other comprehensive income (loss), net of tax | (65) | 13 | (472) | 112 | ||
Ending balance | (244) | 312 | (244) | 312 | ||
Net unrealized securities gains (losses) [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | 93 | 543 | 486 | 479 | ||
OCI before reclassifications | (59) | (1) | (443) | 88 | ||
Amounts reclassified from AOCI | (3) | (3) | (11) | (28) | ||
Total other comprehensive income (loss), net of tax | (62) | (4) | (454) | 60 | ||
Ending balance | [1] | 31 | 539 | 31 | 539 | |
AOCI Attributable to Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total other comprehensive income (loss), net of tax | (472) | 112 | ||||
Net unrealized derivatives gains (losses) [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | 8 | 6 | 8 | 5 | ||
OCI before reclassifications | 0 | 0 | 0 | 0 | ||
Amounts reclassified from AOCI | 0 | 1 | 0 | 2 | ||
Total other comprehensive income (loss), net of tax | 0 | 1 | 0 | 2 | ||
Ending balance | 8 | 7 | 8 | 7 | ||
Defined benefit plans [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | (97) | (120) | (97) | (125) | ||
OCI before reclassifications | 0 | 0 | 0 | 0 | ||
Amounts reclassified from AOCI | 0 | 0 | 0 | 5 | ||
Total other comprehensive income (loss), net of tax | 0 | 0 | 0 | 5 | ||
Ending balance | (97) | (120) | (97) | (120) | ||
Foreign currency translation [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | (182) | (129) | (167) | (159) | ||
OCI before reclassifications | (3) | 16 | (18) | 46 | ||
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | ||
Total other comprehensive income (loss), net of tax | (3) | 16 | (18) | 46 | ||
Ending balance | (185) | (113) | (185) | (113) | ||
Other [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | (1) | (1) | (1) | 0 | ||
OCI before reclassifications | 0 | 0 | 0 | (1) | ||
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | ||
Total other comprehensive income (loss), net of tax | 0 | 0 | 0 | (1) | ||
Ending balance | [1] | (1) | $ (1) | (1) | $ (1) | |
Cumulative effect of change in accounting policies - Recognition and measurement of financial instruments | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Cumulative effect of change in accounting policies | 0 | 0 | ||||
Cumulative effect of change in accounting policies - Recognition and measurement of financial instruments | Net unrealized securities gains (losses) [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Cumulative effect of change in accounting policies | $ (1) | |||||
Cumulative effect of change in accounting policies - Recognition and measurement of financial instruments | AOCI Attributable to Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Cumulative effect of change in accounting policies | $ 1 | $ 1 | $ (1) | |||
[1] | Includes $1 million and $8 million of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities as of September 30, 2018 and September 30, 2017 |
Changes in Shareholders' Equity
Changes in Shareholders' Equity (Details 3) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (244) | $ 312 | $ (244) | $ 312 | $ (179) | $ 229 | $ 299 | $ 200 | ||||
OCI before reclassifications | (62) | 15 | (461) | 133 | ||||||||
Amounts reclassified from AOCI | (3) | (2) | (11) | (21) | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 65 | (13) | 472 | (112) | ||||||||
Noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities | 1 | 8 | 1 | $ 8 | ||||||||
Stock repurchase program, authorized amount | 2,500 | 2,500 | ||||||||||
Remaining balance under stock repurchase program | 944 | $ 944 | ||||||||||
Number of shares reacquired through surrender of restricted shares | 0.3 | 0.3 | ||||||||||
Value of shares reacquired through surrender of restricted shares | $ 43 | $ 33 | ||||||||||
Number of shares reacquired through net settlement options | 0.5 | 1.9 | ||||||||||
Aggregate value of shares reacquired through net settlement options | $ 82 | $ 248 | ||||||||||
Treasury shares reissued for restricted stock award grants and Ameriprise Financial Franchise Advisor Deferred Compensation Plan | 0.8 | 0.8 | ||||||||||
Open market share repurchases [Member] | ||||||||||||
Repurchase of common shares (in shares) | 7.7 | 8 | ||||||||||
Repurchase of common shares | $ 1,100 | $ 1,000 | ||||||||||
Net unrealized securities gains (losses) [Member] | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 31 | [1] | 539 | [1] | 31 | [1] | 539 | [1] | 93 | 486 | 543 | 479 |
OCI before reclassifications | (59) | (1) | (443) | 88 | ||||||||
Amounts reclassified from AOCI | (3) | (3) | (11) | (28) | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 62 | 4 | 454 | (60) | ||||||||
Net unrealized derivatives gains (losses) [Member] | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 8 | 7 | 8 | 7 | 8 | 8 | 6 | 5 | ||||
OCI before reclassifications | 0 | 0 | 0 | 0 | ||||||||
Amounts reclassified from AOCI | 0 | 1 | 0 | 2 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 0 | (1) | 0 | (2) | ||||||||
Defined benefit plans [Member] | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (97) | (120) | (97) | (120) | (97) | (97) | (120) | (125) | ||||
OCI before reclassifications | 0 | 0 | 0 | 0 | ||||||||
Amounts reclassified from AOCI | 0 | 0 | 0 | 5 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | (5) | ||||||||
Foreign currency translation [Member] | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (185) | (113) | (185) | (113) | (182) | (167) | (129) | (159) | ||||
OCI before reclassifications | (3) | 16 | (18) | 46 | ||||||||
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 3 | (16) | 18 | (46) | ||||||||
Other [Member] | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1) | [1] | (1) | [1] | (1) | [1] | (1) | [1] | $ (1) | $ (1) | $ (1) | $ 0 |
OCI before reclassifications | 0 | 0 | 0 | (1) | ||||||||
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | $ 0 | $ 0 | $ 0 | $ 1 | ||||||||
[1] | Includes $1 million and $8 million of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities as of September 30, 2018 and September 30, 2017 |
Regulatory Requirements (Detail
Regulatory Requirements (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Insurance [Abstract] | ||
Permitted practice impact to statutory surplus | $ 377 | $ (3) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||||
Effective tax rate on income from continuing operations (as a percent) | 14.40% | 19.90% | 14.90% | 19.50% | |
Benefits Tax Planning and Completion of Audits | $ 20 | $ 20 | |||
Remeasurement of deferred tax assets and liabilities to Tax Act's statutory 21% | $ 221 | ||||
Expense for the foreign provisions of the Tax Act | 57 | ||||
Benefit for final adjustment related to Tax Act | 3 | ||||
Valuation allowance | 18 | 18 | 17 | ||
Gross unrecognized tax benefits | 80 | 80 | 76 | ||
Unrecognized tax benefits net of federal tax benefits that would affect the effective tax rate | 61 | 61 | 58 | ||
Increase (decrease) in interest and penalties | 0 | $ 0 | 1 | $ 1 | |
Payable related to accrued interest and penalties | 9 | 9 | $ 8 | ||
Minimum [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Decrease in gross unrecognized tax benefits due to resolution of audits and statute expirations | 30 | 30 | |||
Maximum [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Decrease in gross unrecognized tax benefits due to resolution of audits and statute expirations | 40 | 40 | |||
State and Local [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
State net operating losses | $ 18 | $ 18 | |||
Income Tax Provision [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Benefit related to an out-of-period correction for a reversal of a tax reserve | $ 20 |
Guarantees and Contingencies (D
Guarantees and Contingencies (Details) - Insurance-related Assessments [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Contingencies | ||
Liability related to guaranty fund assessments | $ 13 | $ 14 |
Related premium tax asset | $ 12 | $ 12 |
Earnings per Share Attributab_3
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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Net income | $ 503 | $ 507 | $ 1,559 | $ 1,303 |
Denominator: | ||||
Basic: Weighted-average common shares outstanding | 144.4 | 153 | 147 | 155.2 |
Effect of potentially dilutive nonqualified stock options and other share-based awards (in shares) | 2.1 | 2.4 | 2.2 | 2.4 |
Diluted: Weighted-average common shares outstanding | 146.5 | 155.4 | 149.2 | 157.6 |
Basic: | ||||
Net income (in dollars per share) | $ 3.48 | $ 3.31 | $ 10.61 | $ 8.40 |
Diluted: | ||||
Net income (in dollars per share) | $ 3.43 | $ 3.26 | $ 10.45 | $ 8.27 |
Effect of potentially dilutive nonqualified stock options and other share-based awards (in shares) | 1 | 0 |
Segment Information - Total Ass
Segment Information - Total Assets (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Summary of assets by segment | ||
Total assets | $ 145,191 | $ 147,480 |
Advice and Wealth Management [Member] | ||
Summary of assets by segment | ||
Total assets | 13,826 | 13,270 |
Asset Management [Member] | ||
Summary of assets by segment | ||
Total assets | 8,264 | 8,401 |
Annuities [Member] | ||
Summary of assets by segment | ||
Total assets | 96,260 | 98,276 |
Protection [Member] | ||
Summary of assets by segment | ||
Total assets | 17,985 | 18,039 |
Corporate and Other [Member] | ||
Summary of assets by segment | ||
Total assets | $ 8,856 | $ 9,494 |
Segment Information - Operating
Segment Information - Operating net revenues (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||||
Segment information [Line Items] | ||||||||
Total segment net revenues before eliminations | $ 3,648 | $ 3,366 | $ 10,741 | $ 10,004 | ||||
Summary of segment operating results [Abstract] | ||||||||
Net Realized Gains (Losses) | 4 | (3) | 15 | 35 | ||||
Revenues attributable to CIEs | 22 | 23 | 93 | 70 | ||||
Market impact on IUL benefits | (8) | (5) | (5) | (7) | ||||
Market impact of hedges on investments | 6 | (1) | 27 | (8) | ||||
Total net revenues | 3,292 | 3,014 | 9,656 | 8,952 | ||||
Reconciliation of operating profit (loss) from segments to consolidated | ||||||||
Total segment operating earnings | 645 | 703 | 1,944 | 1,807 | ||||
Net Realized Gains (Losses) including DAC offset | 4 | (3) | 15 | 33 | ||||
Net income (loss) attributable to CIEs | 2 | |||||||
Market impact on variable annuity guaranteed benefits | (45) | (55) | (130) | (198) | ||||
Market impact on IUL benefits | (13) | (10) | (8) | (16) | ||||
Market impact of hedges on investments | 6 | (1) | 27 | (8) | ||||
Integration Related Costs | (9) | (1) | (16) | (1) | ||||
Pretax income | 588 | 633 | 1,832 | 1,619 | ||||
Advice and Wealth Management [Member] | ||||||||
Segment information [Line Items] | ||||||||
Total segment net revenues before eliminations | 1,564 | 1,410 | 4,608 | 4,107 | ||||
Summary of segment operating results [Abstract] | ||||||||
Total net revenues | 1,329 | 1,177 | 3,886 | 3,406 | ||||
Reconciliation of operating profit (loss) from segments to consolidated | ||||||||
Total segment operating earnings | 355 | 299 | 1,021 | 838 | ||||
Asset Management [Member] | ||||||||
Segment information [Line Items] | ||||||||
Total segment net revenues before eliminations | 772 | 784 | 2,305 | 2,256 | ||||
Summary of segment operating results [Abstract] | ||||||||
Total net revenues | 759 | 772 | 2,268 | 2,221 | ||||
Reconciliation of operating profit (loss) from segments to consolidated | ||||||||
Total segment operating earnings | 197 | 204 | 575 | 530 | ||||
Annuities [Member] | ||||||||
Segment information [Line Items] | ||||||||
Total segment net revenues before eliminations | 628 | 626 | 1,863 | 1,861 | ||||
Summary of segment operating results [Abstract] | ||||||||
Total net revenues | 537 | 538 | 1,592 | 1,602 | ||||
Reconciliation of operating profit (loss) from segments to consolidated | ||||||||
Total segment operating earnings | 153 | 281 | 414 | 562 | ||||
Protection [Member] | ||||||||
Segment information [Line Items] | ||||||||
Total segment net revenues before eliminations | 611 | 478 | 1,663 | 1,516 | ||||
Summary of segment operating results [Abstract] | ||||||||
Total net revenues | 594 | 462 | 1,617 | 1,470 | ||||
Reconciliation of operating profit (loss) from segments to consolidated | ||||||||
Total segment operating earnings | 61 | 55 | 176 | 169 | ||||
Corporate and Other [Member] | ||||||||
Segment information [Line Items] | ||||||||
Total segment net revenues before eliminations | 47 | 50 | 160 | 162 | ||||
Summary of segment operating results [Abstract] | ||||||||
Total net revenues | 49 | 51 | 163 | 163 | ||||
Reconciliation of operating profit (loss) from segments to consolidated | ||||||||
Total segment operating earnings | (121) | (136) | (242) | (292) | ||||
Total Segment [Member] | ||||||||
Segment information [Line Items] | ||||||||
Total segment net revenues before eliminations | 3,622 | 3,348 | 10,599 | 9,902 | ||||
Eliminations | 354 | [1] | 348 | [1] | 1,073 | [2] | 1,040 | [2] |
Summary of segment operating results [Abstract] | ||||||||
Total net revenues | 3,268 | 3,000 | 9,526 | 8,862 | ||||
Intersegment revenues, eliminations [Member] | ||||||||
Segment information [Line Items] | ||||||||
Eliminations | 356 | 352 | 1,085 | 1,052 | ||||
Intersegment revenues, eliminations [Member] | Advice and Wealth Management [Member] | ||||||||
Segment information [Line Items] | ||||||||
Eliminations | 235 | 233 | 722 | 701 | ||||
Intersegment revenues, eliminations [Member] | Asset Management [Member] | ||||||||
Segment information [Line Items] | ||||||||
Eliminations | 13 | 12 | 37 | 35 | ||||
Intersegment revenues, eliminations [Member] | Annuities [Member] | ||||||||
Segment information [Line Items] | ||||||||
Eliminations | 91 | 88 | 271 | 259 | ||||
Intersegment revenues, eliminations [Member] | Protection [Member] | ||||||||
Segment information [Line Items] | ||||||||
Eliminations | 17 | 16 | 46 | 46 | ||||
Intersegment revenues, eliminations [Member] | Corporate and Other [Member] | ||||||||
Segment information [Line Items] | ||||||||
Eliminations | $ (2) | $ (1) | $ (3) | $ (1) | ||||
[1] | Represents the elimination of intersegment revenues recognized for the three months ended September 30, 2018 and 2017 in each segment as follows: Advice & Wealth Management ( $235 million and $233 million , respectively); Asset Management ( $13 million and $12 million , respectively); Annuities ( $91 million and $88 million , respectively); Protection ( $17 million and $16 million , respectively); and Corporate & Other ( $(2) million and $(1) million | |||||||
[2] | Represents the elimination of intersegment revenues recognized for the nine months ended September 30, 2018 and 2017 in each segment as follows: Advice & Wealth Management ( $722 million and $701 million , respectively); Asset Management ( $37 million and $35 million , respectively); Annuities ( $271 million and $259 million , respectively); Protection ( $46 million and $46 million , respectively); and Corporate & Other ( $(3) million and $(1) million |