Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-32525 | ||
Entity Registrant Name | AMERIPRISE FINANCIAL, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 13-3180631 | ||
Entity Address, Address Line One | 1099 Ameriprise Financial Center | ||
Entity Address, City or Town | Minneapolis | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55474 | ||
City Area Code | (612) | ||
Local Phone Number | 671-3131 | ||
Title of 12(b) Security | Common Stock (par value $.01 per share) | ||
Trading Symbol | AMP | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 19 | ||
Entity Common Stock, Shares Outstanding | 123,244,405 | ||
Entity Central Index Key | 0000820027 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS Consolidated Statement of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues [Abstract] | |||
Net investment income | $ 1,463 | $ 1,596 | $ 1,509 |
Premiums | 1,214 | 1,426 | 1,394 |
Other revenues | 1,279 | 1,249 | 1,105 |
Gain on disposal of business | 213 | 0 | 0 |
Total revenues | 13,103 | 12,924 | 12,180 |
Banking and deposit interest expense | 136 | 89 | 48 |
Total net revenues | 12,967 | 12,835 | 12,132 |
Expenses | |||
Distribution expenses | 3,810 | 3,637 | 3,397 |
Interest credited to fixed accounts | 669 | 674 | 656 |
Benefits, claims, losses and settlement expenses | 2,576 | 2,302 | 2,233 |
Amortization of deferred acquisition costs | 179 | 322 | 267 |
Interest and debt expense | 214 | 245 | 207 |
General and administrative expense | 3,287 | 3,171 | 3,158 |
Total expenses | 10,735 | 10,351 | 9,918 |
Income from continuing operations before income tax provision | 2,232 | 2,484 | 2,214 |
Income tax provision | 339 | 386 | 734 |
Net income | $ 1,893 | $ 2,098 | $ 1,480 |
Earnings Per Share, Basic: | |||
Net income (in dollars per basic share) | $ 14.12 | $ 14.41 | $ 9.60 |
Earnings Per Share, Diluted: | |||
Net income (in dollars per diluted share) | $ 13.92 | $ 14.20 | $ 9.44 |
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale [Abstract] | |||
Total other-than-temporary impairment losses on securities | $ (29) | $ (1) | |
Portion of loss recognized in other comprehensive income (loss) (before taxes) | 7 | $ 0 | 0 |
Net impairment losses recognized in net investment income | (22) | (1) | |
Management and financial advice fees [Member] | |||
Revenues [Abstract] | |||
Revenue from Contract with Customer, Including Assessed Tax | 7,015 | 6,776 | 6,415 |
Distribution fees [Member] | |||
Revenues [Abstract] | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 1,919 | $ 1,877 | $ 1,757 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,893 | $ 2,098 | $ 1,480 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | 17 | (31) | (8) |
Net unrealized gains (losses) on securities | 556 | (465) | 7 |
Net unrealized gains (losses) on derivatives | (2) | 0 | 3 |
Defined benefit plans | (18) | (23) | 28 |
Other | 0 | 0 | (1) |
Total other comprehensive income (loss), net of tax | 553 | (519) | 29 |
Total comprehensive income | $ 2,446 | $ 1,579 | $ 1,509 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Total assets | $ 151,828 | $ 137,216 |
Liabilities: | ||
Policyholder account balances, future policy benefits and claims | 30,512 | 30,124 |
Separate account liabilities | 87,488 | 77,925 |
Total liabilities | 146,099 | 131,628 |
Ameriprise Financial, Inc.: | ||
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 329,842,827 and 328,537,214, respectively) | 3 | 3 |
Additional paid-in capital | 8,461 | 8,260 |
Retained earnings | 14,279 | 12,909 |
Treasury shares, at cost (205,903,593 and 192,206,467 shares, respectively) | (17,276) | (15,293) |
Accumulated other comprehensive income, net of tax | 262 | (291) |
Total equity | 5,729 | 5,588 |
Total liabilities and equity | 151,828 | 137,216 |
Ameriprise Financial [Member] | ||
Assets | ||
Cash and cash equivalents | 3,709 | 2,931 |
Investments | 37,915 | 35,825 |
Separate account assets | 87,488 | 77,925 |
Receivables | 7,202 | 6,173 |
Deferred acquisition costs | 2,698 | 2,776 |
Restricted and segregated cash and investments | 2,386 | 2,910 |
Other assets | 8,698 | 6,792 |
Liabilities: | ||
Policyholder account balances, future policy benefits and claims | 30,512 | 30,124 |
Separate account liabilities | 87,488 | 77,925 |
Customer deposits | 14,430 | 11,545 |
Short-term borrowings | 201 | 201 |
Long-term debt | 3,097 | 2,867 |
Accounts payable and accrued liabilities | 1,884 | 1,862 |
Other liabilities | 6,775 | 5,239 |
Consolidated investment entities [Member] | ||
Assets | ||
Cash and cash equivalents | 118 | 166 |
Investments | 1,606 | 1,706 |
Receivables | 8 | 12 |
Liabilities: | ||
Long-term debt | 1,628 | 1,743 |
Other liabilities | $ 84 | $ 122 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | 329,842,827 | 328,537,214 | |
Treasury shares | 205,903,593 | 192,206,467 | |
Consolidated investment entities [Member] | |||
Receivables, fair value (in dollars) | $ 8 | $ 12 | |
Other assets, fair value (in dollars) | 0 | 0 | |
Debt, fair value (in dollars) | [1] | 1,628 | 1,743 |
Other liabilities, fair value (in dollars) | $ 84 | $ 122 | |
[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 $1.7 billion as of both December 31, 2019 and 2018 . |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Common Shares [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Shares [Member] | Accumulated Other Comprehensive Income [Member] |
Comprehensive income (loss): | ||||||
Stockholders' Equity Attributable to Parent | $ 6,289 | $ 3 | $ 7,765 | $ 10,348 | $ (12,027) | $ 200 |
Balances (in shares) at Dec. 31, 2016 | 154,759,904 | |||||
Balances at Dec. 31, 2016 | 6,289 | $ 3 | 7,765 | 10,348 | (12,027) | 200 |
Comprehensive income (loss): | ||||||
Net income | 1,480 | 1,480 | ||||
Other comprehensive income (loss), net of tax | 29 | 29 | ||||
Total comprehensive income (loss) | 1,509 | |||||
Dividends to shareholders | (502) | (502) | ||||
Repurchase of common shares | (1,675) | (1,675) | ||||
Repurchase of common shares (in shares) | (12,388,348) | |||||
Share-based compensation plans | 374 | 320 | 54 | |||
Share-based compensation plans (in shares) | 4,263,108 | |||||
Balances (in shares) at Dec. 31, 2017 | 146,634,664 | |||||
Comprehensive income (loss): | ||||||
Stockholders' Equity Attributable to Parent | 6,289 | $ 3 | 7,765 | 10,348 | (12,027) | 200 |
Cumulative Effect of New Accounting Principle in Period of Adoption | (1) | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | Cumulative effect of adoption of equity securities guidance | 0 | 1 | (1) | |||
Stockholders' Equity Attributable to Parent | 5,995 | 3 | 8,085 | 11,326 | (13,648) | 229 |
Balances at Dec. 31, 2017 | 5,995 | $ 3 | 8,085 | 11,326 | (13,648) | 229 |
Comprehensive income (loss): | ||||||
Net income | 2,098 | 2,098 | ||||
Other comprehensive income (loss), net of tax | (519) | (519) | ||||
Total comprehensive income (loss) | 1,579 | |||||
Dividends to shareholders | (516) | (516) | ||||
Repurchase of common shares | (1,705) | (1,705) | ||||
Repurchase of common shares (in shares) | (12,124,840) | |||||
Share-based compensation plans | 235 | 175 | 60 | |||
Share-based compensation plans (in shares) | 1,820,923 | |||||
Balances (in shares) at Dec. 31, 2018 | 136,330,747 | |||||
Comprehensive income (loss): | ||||||
Stockholders' Equity Attributable to Parent | 5,995 | $ 3 | 8,085 | 11,326 | (13,648) | 229 |
Cumulative Effect of New Accounting Principle in Period of Adoption | Cumulative effect of adoption of premium amort on purchased callable debt | (5) | (5) | ||||
Stockholders' Equity Attributable to Parent | 5,588 | 3 | 8,260 | 12,909 | (15,293) | (291) |
Balances at Dec. 31, 2018 | 5,588 | $ 3 | 8,260 | 12,909 | (15,293) | (291) |
Comprehensive income (loss): | ||||||
Net income | 1,893 | 1,893 | ||||
Other comprehensive income (loss), net of tax | 553 | 553 | ||||
Total comprehensive income (loss) | 2,446 | |||||
Dividends to shareholders | (518) | (518) | ||||
Repurchase of common shares | (2,039) | (2,039) | ||||
Repurchase of common shares (in shares) | (14,396,367) | |||||
Share-based compensation plans | 257 | 201 | 56 | |||
Share-based compensation plans (in shares) | 2,004,854 | |||||
Balances (in shares) at Dec. 31, 2019 | 123,939,234 | |||||
Comprehensive income (loss): | ||||||
Stockholders' Equity Attributable to Parent | 5,588 | $ 3 | 8,260 | 12,909 | (15,293) | (291) |
Stockholders' Equity Attributable to Parent | $ 5,729 | $ 3 | $ 8,461 | $ 14,279 | $ (17,276) | $ 262 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Cash Flows [Abstract] | |||
Net income | $ 1,893 | $ 2,098 | $ 1,480 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization and accretion, net | 183 | 198 | 234 |
Deferred income tax expense (benefit) | (308) | 25 | 156 |
Share-based compensation | 135 | 144 | 121 |
Gain (Loss) on Disposition of Business before Affinity Payment | (313) | ||
Net realized investment (gains) losses | (16) | (9) | (50) |
Net trading (gains) losses | (10) | (12) | (7) |
Loss from equity method investments | 95 | 63 | 100 |
Other-than-temporary impairments and provision for loan losses | 22 | ||
Net (gains) losses of consolidated investment entities | 9 | (47) | 5 |
Changes in operating assets and liabilities: | |||
Restricted and segregated investments | 124 | 499 | (348) |
Deferred acquisition costs | (112) | 4 | (35) |
Policyholder account balances, future policy benefits and claims, net | 358 | 528 | (441) |
Derivatives, net of collateral | 415 | (144) | 595 |
Receivables | 324 | (398) | (457) |
Brokerage deposits | (519) | (255) | (198) |
Accounts payable and accrued expenses | 46 | (100) | 206 |
Other operating assets and liabilities of consolidated investment entities, net | (12) | 29 | |
Other, net | 27 | (26) | 162 |
Net Cash Provided by (Used in) Operating Activities | 2,341 | 2,597 | 1,523 |
Available-for-Sale securities: | |||
Proceeds from sales | 242 | 435 | 454 |
Maturities, sinking fund payments and calls | 8,202 | 6,738 | 4,957 |
Purchases | (11,911) | (8,346) | (5,419) |
Proceeds from sales, maturities and repayments of mortgage loans | 272 | 295 | 699 |
Funding of mortgage loans | (354) | (235) | (479) |
Proceeds from sales, maturities and collections of other investments | 276 | 722 | 329 |
Purchase of other investments | (288) | (653) | (519) |
Purchase of investments by consolidated investment entities | (644) | (411) | (1,268) |
Proceeds from sales, maturities and repayments of investments by consolidated investment entities | 684 | 1,086 | 1,349 |
Purchase of land, buildings, equipment and software | (143) | (162) | (162) |
Proceeds from Divestiture of Businesses, Net of Cash Divested | 934 | ||
Proceeds from Divestiture of Businesses | 1,100 | ||
Cash paid for written options with deferred premiums | (308) | (133) | (82) |
Cash received from written options with deferred premiums | 170 | 133 | 77 |
Cash paid for deposit receivable | (349) | ||
Cash received for deposit receivable | 98 | ||
Other, net | (115) | (56) | (107) |
Net cash (used in) provided by investing activities | (3,234) | (587) | (171) |
Investment certificates: | |||
Proceeds from additions | 5,110 | 6,238 | 4,725 |
Maturities, withdrawals and cash surrenders | (5,489) | (4,745) | (4,262) |
Policyholder account balances: | |||
Deposits and other additions | 2,152 | 1,933 | 2,059 |
Net transfers to (from) separate accounts | (86) | (75) | (157) |
Surrenders and other benefits | (1,728) | (1,904) | (1,893) |
Change in banking deposits, net | 3,788 | ||
Cash paid for purchased options with deferred premiums | (396) | (228) | (282) |
Cash received for purchased options with deferred premiums | 206 | 254 | 116 |
Issuance of long-term debt, net of issuance costs | 497 | ||
Repayments of long-term debt | (313) | (13) | (11) |
Dividends paid to shareholders | (504) | (506) | (491) |
Repurchase of common shares | (1,943) | (1,630) | (1,485) |
Exercise of stock options | 3 | 2 | 15 |
Borrowings of Consolidated Investment Entities | 936 | ||
Repayments of debt by consolidated investment entities | (84) | (1,528) | (118) |
Other, net | 1 | 3 | (1) |
Net cash provided by (used in) financing activities | 1,214 | (1,263) | (1,785) |
Effect of exchange rate changes on cash | 9 | (8) | 35 |
Net increase (decrease) in cash and cash equivalents, including amounts restricted | 330 | 739 | (398) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning balance | 5,883 | 5,144 | 5,542 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, ending balance | $ 6,213 | $ 5,883 | $ 5,144 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS Supplemental Cash Flow Disclosures - Cash Reconciliation - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Less: Restricted and segregated investments | $ 0 | $ (124) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 6,213 | 5,883 |
Ameriprise Financial [Member] | ||
Cash and cash equivalents | 3,709 | 2,931 |
Restricted and segregated cash, cash equivalents and investments | 2,386 | 2,910 |
Consolidated investment entities [Member] | ||
Cash and cash equivalents | $ 118 | $ 166 |
CONSOLIDATED STATEMENTS OF CA_3
CONSOLIDATED STATEMENTS OF CASH FLOWS Supplemental Cash Flow Disclosures - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income taxes paid (received), net | $ 609 | $ 538 | $ 418 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 13 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 41 | ||
Non-cash Investing Activity: | |||
Partnership commitments not yet remitted | 4 | 1 | 9 |
Investments transferred in connection with reinsurance transaction | 1,265 | ||
Ameriprise Financial [Member] | |||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 272 | 221 | 181 |
Consolidated investment entities [Member] | |||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 84 | $ 120 | $ 88 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
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 accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). In 2017, the Company recorded the following out-of-period corrections: • an $87 million decrease to other comprehensive income (“OCI”) related to deferred taxes on currency translations adjustments. • a $12 million out-of-period correction related to a variable annuity model assumption that decreased amortization of deferred acquisition costs (“DAC”) by $8 million and decreased benefits, claims, losses and settlement expenses by $4 million . • a $20 million decrease to income tax provision for a reversal of a tax reserve. The impact of these corrections was not material to prior period financial statements. The Company evaluated events or transactions that may have occurred after the balance sheet date for potential recognition or disclosure through the date the financial statements were issued. No subsequent events or transactions were identified. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Principles of Consolidation A VIE is an entity that either has equity investors that lack certain essential characteristics of a controlling financial interest (including substantive voting rights, the obligation to absorb the entity’s losses, or the rights to receive the entity’s returns) or has equity investors that do not provide sufficient financial resources for the entity to support its activities. Voting interest entities (“VOEs”) are those entities that do not qualify as a VIE. The Company consolidates VOEs in which it holds a greater than 50% voting interest. The Company generally accounts for entities using the equity method when it holds a greater than 20% but less than 50% voting interest or when the Company exercises significant influence over the entity. All other investments that are not reported at fair value as trading or Available-for-Sale securities are accounted for under the cost method when the Company owns less than a 20% voting interest and does not exercise significant influence. A VIE is consolidated by the reporting entity that determines it has both: • the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and • the obligation to absorb potentially significant losses or the right to receive potentially significant benefits to the VIE. All VIEs are assessed for consolidation under this framework. When evaluating entities for consolidation, the Company considers its contractual rights in determining whether it has the power to direct the activities of the VIE that most significantly impact the VIEs economic performance. In determining whether the Company has this power, it considers whether it is acting in a role that enables it to direct the activities that most significantly impact the economic performance of an entity or if it is acting in an agent role. In determining whether the Company has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Company considers an analysis of its rights to receive benefits such as investment returns and its obligation to absorb losses associated with any investment in the VIE in conjunction with other qualitative factors. Management and incentive fees that are at market and commensurate with the level of services provided, and where the Company does not hold other interests in the VIE that would absorb more than an insignificant amount of the VIE’s expected losses or receive more than an insignificant amount of the VIE’s expected residual returns, are not considered a variable interest and are excluded from the analysis. The consolidation guidance has a scope exception for reporting entities with interests in registered money market funds which do not have an explicit support agreement. Foreign Currency Translation Net assets of foreign subsidiaries, whose functional currency is other than the U.S. dollar, are translated into U.S. dollars based upon exchange rates prevailing at the end of each period. Revenues and expenses are translated at daily exchange rates during the period. The resulting translation adjustment, along with any related hedge and tax effects, are included in accumulated other comprehensive income (“AOCI”). The determination of the functional currency is based on the primary economic environment in which the entity operates. Gains and losses from foreign currency transactions are included in the consolidated results of operations. Amounts Based on Estimates and Assumptions Accounting estimates are an integral part of the Consolidated Financial Statements. In part, they are based upon assumptions concerning future events. Among the more significant are those that relate to investment securities valuation and recognition of other-than-temporary impairments, DAC and the corresponding recognition of DAC amortization, valuation of derivative instruments and hedging activities, litigation reserves, future policy benefits and claims reserves and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ. Cash and Cash Equivalents Cash equivalents include time deposits and other highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less. Investments Available-for-Sale Securities Available -for-Sale securities are carried at fair value with unrealized gains (losses) recorded in AOCI, net of impacts to DAC, deferred sales inducement costs (“DSIC”), unearned revenue, benefit reserves, reinsurance recoverables and income taxes. Gains and losses are recognized on a trade date basis in the Consolidated Statements of Operations upon disposition of the securities. When the fair value of an investment is less than its amortized cost, the Company assesses whether or not: (i) it has the intent to sell the security (made a decision to sell) or (ii) it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If either of these conditions exist, an other-than-temporary impairment is considered to have occurred and the Company recognizes an other-than-temporary impairment for the difference between the investment’s amortized cost and its fair value through earnings. For securities that do not meet the above criteria and the Company does not expect to recover a security’s amortized cost, the security is also considered other-than-temporarily impaired. For these securities, the Company separates the total impairment into the credit loss component and the amount of the loss related to other factors. The amount of the total other-than-temporary impairment related to credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to other factors is recognized in OCI, net of impacts to DAC, DSIC, unearned revenue, benefit reserves, reinsurance recoverables and income taxes. For Available-for-Sale securities that have recognized an other-than-temporary impairment through earnings, the difference between the amortized cost and the cash flows expected to be collected is accreted as interest income if through subsequent evaluation there is a sustained increase in the cash flow expected. Subsequent increases and decreases in the fair value of Available-for-Sale securities are included in OCI. The Company provides a supplemental disclosure on the face of its Consolidated Statements of Operations that presents: (i) total other-than-temporary impairment losses recognized during the period and (ii) the portion of other-than-temporary impairment losses recognized in OCI. The sum of these amounts represents the credit-related portion of other-than-temporary impairments that were recognized in earnings during the period. The portion of other-than-temporary losses recognized in OCI includes: (i) the portion of other-than-temporary impairment losses related to factors other than credit recognized during the period and (ii) reclassifications of other-than-temporary impairment losses previously determined to be related to factors other than credit that are determined to be credit-related in the current period. The amount presented on the Consolidated Statements of Operations as the portion of other-than-temporary losses recognized in OCI excludes subsequent increases and decreases in the fair value of these securities. For all securities that are considered temporarily impaired, the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. The Company believes that it will collect all principal and interest due on all investments that have amortized cost in excess of fair value that are considered only temporarily impaired. Factors the Company considers in determining whether declines in the fair value of fixed maturity securities are other-than-temporary include: (i) the extent to which the market value is below amortized cost; (ii) the duration of time in which there has been a significant decline in value; (iii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iv) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors. In order to determine the amount of the credit loss component for corporate debt securities considered other-than-temporarily impaired, a best estimate of the present value of cash flows expected to be collected discounted at the security’s effective interest rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and the Company’s position in the debtor’s overall capital structure. For structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities, asset backed securities and other structured investments), the Company also considers factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections in assessing potential other-than-temporary impairments of these investments. Based upon these factors, securities that have indicators of potential other-than-temporary impairment are subject to detailed review by management. Securities for which declines are considered temporary continue to be monitored by management until management determines there is no current risk of an other-than-temporary impairment. Other Investments Other investments primarily reflect the Company’s interests in affordable housing partnerships, trading securities, seed money investments, syndicated loans, marketable equity securities and credit card receivables. Affordable housing partnerships and seed money investments are accounted for under the equity method. Trading securities, which primarily include common stocks and bonds, are carried at fair value with unrealized and realized gains (losses) recorded in net investment income. Marketable equity securities are recorded at fair value with changes in fair value reflected in net investment income. Financing Receivables Commercial Mortgage Loans, Syndicated Loans and Credit Card Receivables Commercial mortgage loans, syndicated loans and credit card receivables are reflected within investments at amortized cost less the allowance for loan losses. Syndicated loans represent the Company’s investment in below investment grade loan syndications. Interest income is accrued on the unpaid principal balances of the loans as earned. Other Loans Other loans primarily consist of policy loans, advisor loans and brokerage margin loans. When originated, policy loan balances do not exceed the cash surrender value of the underlying products. As there is minimal risk of loss related to policy loans, the Company does not record an allowance for loan losses. Policy loans are reflected within investments at the unpaid principal balance, plus accrued interest. The Company offers loans to financial advisors primarily for recruiting, transitional cost assistance and retention purposes. These loans are generally repaid over a five- to nine-year period. Advisor loans are recorded within receivables at principal less an allowance for loan losses. Interest income is recognized as earned and reflected in other revenues. R ecoverability of these loans is assessed through analysis of financial advisor retention, loan collection and other criteria. In the event that the financial advisor is no longer affiliated with the Company, any unpaid balance of such loan becomes immediately due. The Company’s broker dealer subsidiaries enter into lending arrangements with clients through the normal course of business, which are primarily based on customer margin levels. Margin loans are reported at the unpaid principal balance within receivables. The Company monitors the market value of collateral supporting the margin loans and requests additional collateral when necessary in order to mitigate the risk of loss. Deposit Receivable For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability related to insurance risk in accordance with applicable accounting standards. If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits made are included in receivables. As amounts are received, consistent with the underlying contracts, the deposit receivable is adjusted. The deposit receivable is accreted using the interest method and the accretion is reported in other revenues. See Note 7 for additional information on the deposit receivable. Nonaccrual Loans Generally , loans are evaluated for or placed on nonaccrual status when either the collection of interest or principal has become 90 days past due or is otherwise considered doubtful of collection. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Interest payments received on loans on nonaccrual status are generally applied to principal unless the remaining principal balance has been determined to be fully collectible. Commercial mortgage loans are evaluated for impairment when the loan is considered for nonaccrual status, restructured or foreclosure proceedings are initiated on the property. If it is determined that the fair value is less than the current loan balance, it is written down to fair value less estimated selling costs. Foreclosed property is recorded as real estate owned in other assets. Allowance for Loan Losses Management determines the adequacy of the allowance for loan losses based on the overall loan portfolio composition, recent and historical loss experience, and other pertinent factors, including when applicable, internal risk ratings, loan-to-value (“LTV”) ratios, FICO scores of the borrower, debt service coverage and occupancy rates, along with current economic and market conditions. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change. The Company determines the amount of the allowance based on management’s assessment of relative risk characteristics of the loan portfolio. The allowance is recorded for homogeneous loan categories on a pool basis, based on an analysis of product mix and risk characteristics of the portfolio, including geographic concentration, bankruptcy experiences, and historical losses, adjusted for current trends and market conditions. While the Company attributes portions of the allowance to specific loan pools as part of the allowance estimation process, the entire allowance is available to absorb losses inherent in the total loan portfolio. The allowance is increased through provisions charged to net investment income and reduced/increased by net charge-offs/recoveries. In determining the allowance for loan losses for advisor loans, the Company considers its historical collection experience as well as other factors including amounts due at termination, the reasons for the terminated relationship, length of time since termination, and the former financial advisor’s overall financial position. Concerns regarding the recoverability of these loans primarily arise in the event that the financial advisor is no longer affiliated with the Company. When the review of these factors indicates that further collection activity is highly unlikely, the outstanding balance of the loan is written-off and the related allowance is reduced. The provision for loan losses on advisor loans is recorded in distribution expenses. Impaired Loans The Company considers a loan to be impaired when, based on current information and events, it is probable the Company will not be able to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. Impaired loans may also include loans that have been modified in troubled debt restructurings as a concession to borrowers experiencing financial difficulties. Management evaluates for impairment all restructured loans and loans with higher impairment risk factors. Factors used by the Company to determine whether all amounts due on commercial mortgage loans will be collected, include but are not limited to, the financial condition of the borrower, performance of the underlying properties, collateral and/or guarantees on the loan, and the borrower’s estimated future ability to pay based on property type and geographic location. The impairment recognized is measured as the excess of the loan’s recorded investment over: (i) the present value of its expected principal and interest payments discounted at the loan’s effective interest rate, (ii) the fair value of collateral or (iii) the loan’s observable market price. Restructured Loans A loan is classified as a restructured loan when the Company makes certain concessionary modifications to contractual terms for borrowers experiencing financial difficulties. When the interest rate, minimum payments, and/or due dates have been modified in an attempt to make the loan more affordable to a borrower experiencing financial difficulties, the modification is considered a troubled debt restructuring. Generally, performance prior to the restructuring or significant events that coincide with the restructuring are considered in assessing whether the borrower can meet the new terms which may result in the loan being returned to accrual status at the time of the restructuring or after a performance period. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status. Separate Account Assets and Liabilities Separate account assets represent funds held for the benefit of and separate account liabilities represent the obligation to the variable annuity contractholders and variable life insurance policyholders who have a contractual right to receive the benefits of their contract or policy and bear the related investment risk. Gains and losses on separate account assets accrue directly to the contractholder or policyholder and are not reported in the Company’s Consolidated Statements of Operations. Separate account assets are recorded at fair value and separate account liabilities are equal to the assets recognized. Included in separate account assets and liabilities is the fair value of the pooled pension funds that are offered by Threadneedle. Restricted and Segregated Cash, Cash Equivalents and Investments Amounts segregated under federal and other regulations are held in special reserve bank accounts for the exclusive benefit of the Company’s brokerage customers. Cash and cash equivalents included in restricted and segregated cash, cash equivalents and investments are presented as part of cash balances in the Company’s Consolidated Statements of Cash Flows. Land, Buildings, Equipment and Software Land , buildings, equipment and internally developed or purchased software are carried at cost less accumulated depreciation or amortization and are reflected within other assets. The Company uses the straight-line method of depreciation and amortization over periods ranging from three to 39 years . As of December 31, 2019 and 2018 , land, buildings, equipment and software were $610 million and $635 million , respectively, net of accumulated depreciation of $1.8 billion and $2.0 billion , respectively. Depreciation and amortization expense for the years ended December 31, 2019 , 2018 and 2017 was $147 million , $146 million and $141 million , respectively. Leases The Company has operating and finance leases for corporate and field offices. The Company determines if an arrangement is a lease at inception or modification. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and corresponding lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate to determine the present value of the future lease payments. The incremental borrowing rate is determined at lease commencement date using a secured rate for a similar term as the period of the lease. Certain lease incentives such as free rent periods are recorded as a reduction of the ROU asset. Lease costs for operating ROU assets is recognized on a straight-line basis over the lease term. Certain leases include one or more options to renew with terms that can extend the lease from one year to 20 years . The exercise of any lease renewal option is at the sole discretion of the Company. Renewal options are included in the ROU assets and lease liabilities when they either provide an economic incentive to renew or when the costs related to the termination of a lease outweigh the benefits of signing a new lease. Operating and finance ROU assets are reflected in other assets. Operating lease liabilities and finance lease liabilities are reflected in other liabilities and long-term debt, respectively. Goodwill and Other Intangible Assets Goodwill represents the amount of an acquired company’s acquisition cost in excess of the fair value of assets acquired and liabilities assumed. The Company evaluates goodwill for impairment annually on the measurement date of July 1 and whenever events and circumstances indicate that an impairment may have occurred, such as a significant adverse change in the business climate or a decision to sell or dispose of a reporting unit. Impairment is the amount carrying value exceeds fair value and is evaluated at the reporting unit level. The Company assesses various qualitative factors to determine whether impairment is likely to have occurred. If impairment were to occur, the Company would use the discounted cash flow method, a variation of the income approach. Intangible assets are amortized over their estimated useful lives unless they are deemed to have indefinite useful lives. The Company evaluates the definite lived intangible assets remaining useful lives annually and tests for impairment whenever events and circumstances indicate that an impairment may have occurred, such as a significant adverse change in the business climate. For definite lived intangible assets, impairment to fair value is recognized if the carrying amount is not recoverable. Indefinite lived intangibles are also tested for impairment annually or whenever circumstances indicate an impairment may have occurred. Goodwill and other intangible assets are reflected in other assets. Derivative Instruments and Hedging Activities Freestanding derivative instruments are recorded at fair value and are reflected in other assets or other liabilities. The Company’s policy is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. The Company primarily uses derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. The Company occasionally designates derivatives as (i) hedges of changes in the fair value of assets, liabilities, or firm commitments (“fair value hedges”), (ii) hedges of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedges”), or (iii) hedges of foreign currency exposures of net investments in foreign operations (“net investment hedges in foreign operations”). Derivative instruments that are entered into for hedging purposes are designated as such at the time the Company enters into the contract. For all derivative instruments that are designated for hedging activities, the Company documents all of the hedging relationships between the hedge instruments and the hedged items at the inception of the relationships. Management also documents its risk management objectives and strategies for entering into the hedge transactions. The Company assesses, at inception and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of hedged items. If it is determined that a derivative is no longer highly effective as a hedge, the Company will discontinue the application of hedge accounting. For derivative instruments that do not qualify for hedge accounting or are not designated as accounting hedges, changes in fair value are recognized in current period earnings. Changes in fair value of derivatives are presented in the Consolidated Statements of Operations based on the nature and use of the instrument. Changes in fair value of derivatives used as economic hedges are presented in the Consolidated Statements of Operations with the corresponding change in the hedged asset or liability. For derivative instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as changes in the fair value of the hedged assets, liabilities or firm commitments, are recognized on a net basis in current period earnings. The carrying value of the hedged item is adjusted for the change in fair value from the designated hedged risk. If a fair value hedge designation is removed or the hedge is terminated prior to maturity, previous adjustments to the carrying value of the hedged item are recognized into earnings over the remaining life of the hedged item. For derivative instruments that qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is reported in AOCI and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Operations with the hedged instrument or transaction impact. Any ineffective portion of the gain or loss is reported in current period earnings as a component of net investment income. If a hedge designation is removed or a hedge is terminated prior to maturity, the amount previously recorded in AOCI is reclassified to earnings over the period that the hedged item impacts earnings. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in AOCI are recognized in earnings immediately. For derivative instruments that qualify as net investment hedges in foreign operations, the effective portion of the change in fair value of the derivatives is recorded in AOCI as part of the foreign currency translation adjustment. Any ineffective portion of the net investment hedges in foreign operations is recognized in net investment income during the period of change. The equity component of indexed annuities, indexed universal life (“IUL”) and stock market certificate obligations are considered embedded derivatives. Additionally, certain annuities contain guaranteed minimum accumulation benefit (“GMAB”) and guaranteed minimum withdrawal benefit (“GMWB”) provisions. The GMAB and the non-life contingent benefits associated with GMWB provisions are also considered embedded derivatives. See Note 15 for information regarding the Company’s fair value measurement of derivative instruments and Note 17 for the impact of derivatives on the Consolidated Statements of Operations. Deferred Acquisition Costs The Company incurs costs in connection with acquiring new and renewal insurance and annuity businesses. The portion of these costs which are incremental and direct to the acquisition of a new or renewal insurance policy or annuity contract are deferred. Significant costs capitalized include sales based compensation related to the acquisition of new and renewal insurance policies and annuity contracts, medical inspection costs for successful sales, and a portion of employee compensation and benefit costs based upon the amount of time spent on successful sales. Sales based compensation paid to advisors and employees and third-party distributors is capitalized. Employee compensation and benefits costs which are capitalized relate primarily to sales efforts, underwriting and processing. All other costs which are not incremental direct costs of acquiring an insurance policy or annuity contract are expensed as incurred. The DAC associated with insurance policies or annuity contracts that are significantly modified or internally replaced with another contract are accounted for as contract terminations. These transactions are anticipated in establishing amortization periods and other valuation assumptions. The Company monitors other DAC amortization assumptions, such as persistency, mortality, morbidity, interest margin, variable annuity benefit utilization and maintenance expense levels each quarter and, when assessed independently, each could impact the Company’s DAC balances. The analysis of DAC balances and the corresponding amortization is a dynamic process that considers all relevant factors and assumptions described previously. Unless the Company’s management identifies a significant deviation over the course of the quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year. Non-Traditional Long-Duration Products For non-traditional long-duration products (including variable and fixed deferred annuity contracts, universal life (“UL”) and variable universal life (“VUL”) insurance products), DAC are amortized based on projections of estimated gross profits (“EGPs”) over amortization periods equal to the approximate life of the business. EGPs vary based on persistency rates (assumptions at which contractholders and policyholders are expected to surrender, make withdrawals from and make deposits to their contracts), mortality levels, client asset value growth rates (based on equity and bond market performance), variable annuity benefit utilization and interest margins (the spread between earned rates on invested assets and rates credited to contractholder and policyholder accounts) and are management’s best estimates. Management regularly monitors financial market conditions and actual contractholder and policyholder behavior experience and compares them to its assumptions. These assumptions are updated whenever it appears that earlier estimates should be revised. When assumptions are changed, the percentage of EGPs used to amortize DAC might also change. A change in the required amortization percentage is applied retrospectively; an increase in amortization percentage will result in a decrease in the DAC balance and an increase in DAC amortization expense, while a decrease in amortization percentage will result in an increase in the DAC balance and a decrease in DAC amortization expense. The impact on results of operations of changing assumptions can be either positive or negative in any particular period and is reflected in the period in which such changes are made. At each balance sheet date, the DAC balance is adjusted for the effect that would result from the realization of unrealized gains or losses on securities impacting EGPs, with the related change recognized through AOCI. The client asset value growth rates are the rates at which variable annuity and VUL insurance contract values invested in separate accounts are assumed to appreciate in the future. The rates used vary by equity and fixed income investments. Management reviews and, where appropriate, adjusts its assumptions with respect to client asset value growth rates on a regular basis. The Company typically uses a five-year mean reversion process as a guideline in setting near-term equity fund growth rates based on a long-term view of financial market performance as well as recent actual performance. The suggested near-term equity fund growth rate is reviewed quarterly to ensure consistency with management’s assessment of anticipated equity marke |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements [Text Block] | Recent Accounting Pronouncements Adoption of New Accounting Standards Leases – Recognition of Lease Assets and Liabilities on Balance Sheet In February 2016, the Financial Accounting Standards Board (“FASB”) updated the accounting standards for leases. The update was issued to increase transparency and comparability for the accounting of lease transactions. The standard requires 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 standard was effective for interim and annual periods beginning after December 15, 2018. Entities had the option to adopt the standard using a modified retrospective approach at either the beginning of the earliest period presented or as of the date of adoption. The Company adopted the standard using a modified retrospective approach as of January 1, 2019. The Company also elected the package of practical expedients permitted under the transition guidance within the accounting standard that allows entities to carryforward their historical lease classification and to not reassess contracts for embedded leases among other things. The Company recorded a right-of-use asset of $274 million and a corresponding lease liability of $295 million substantially related to real estate leases. The amount the lease liability exceeds the right-of-use asset primarily reflects lease incentives recorded as a reduction of the right-of-use asset that were previously recorded as a liability. The adoption of the standard did not have other material impacts on the Company’s consolidated results of operations or financial condition. See Note 18 for additional disclosures on leases. 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 AOCI. The update allows a reclassification from AOCI to retained earnings for tax effects stranded in AOCI resulting from the Tax Act. The election of the update was optional. The update was effective for fiscal years beginning after December 15, 2018. Entities could 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. The Company adopted the standard on January 1, 2019 and elected not to reclassify the stranded tax effects in AOCI. 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 was effective for interim and annual periods beginning after December 15, 2018, and was required to be applied on a modified retrospective basis. The Company adopted the standard on January 1, 2019. The adoption did not have a material impact on the Company’s consolidated results of operations or 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 previous guidance, premiums were 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 was effective for interim and annual periods beginning after December 15, 2018, and was required to 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. The Company adopted the standard on January 1, 2019. The adoption did not have a material impact on the Company’s consolidated results of operations or financial condition. Revenue from Contracts with Customers In May 2014, the FASB updated the accounting standards for revenue from contracts with customers. The update provides a five-step revenue recognition model for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers (unless the contracts are in the scope of other standards). The standard also updates the accounting for certain costs associated with obtaining and fulfilling a customer contract and requires disclosure of quantitative and qualitative information that enables users of financial statements to understand the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. The standard was effective for interim and annual periods beginning after December 15, 2017. The standard was permitted to 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 impact of the change was an increase to revenues of $105 million and an increase to expenses of $105 million for the year ended December 31, 2017 . See Note 4 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 was 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. 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 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. The Company early adopted the standard in the fourth quarter of 2018 on a retrospective basis. The adoption did not have an impact on the Company’s consolidated results of operations or financial condition. 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 to eliminate or modify disclosure requirements. The Company early adopted the provisions of the standard to eliminate or modify disclosure requirements in the fourth quarter of 2018. The update does not have an impact on the Company’s consolidated results of operations or financial condition. Compensation – Stock Compensation In March 2016, the FASB updated the accounting standards related to employee share-based payments. The update requires all excess tax benefits and tax deficiencies to be recognized as income tax expense or benefit in the income statement. This change is required to be applied prospectively to excess tax benefits and tax deficiencies resulting from settlements after the date of adoption. No adjustment is recorded for any excess tax benefits or tax deficiencies previously recorded in additional paid in capital. The update also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows. This provision can be applied on either a prospective or retrospective basis. The update permits entities to make an accounting policy election to recognize forfeitures as they occur rather than estimating forfeitures to determine the recognition of expense for share-based payment awards. The standard was effective for interim and annual periods beginning after December 15, 2016. The Company adopted the standard on January 1, 2017 on a prospective basis, except for the cash flow statement provision, which the Company applied on a retrospective basis. During periods in which the settlement date value differs materially from the grant date fair value of certain share-based payment awards, the Company may experience volatility in income tax recognized in its consolidated results of operations. During the year ended December 31, 2017 , the Company recognized net excess tax benefits of $70 million as a reduction to the income tax provision in the consolidated statements of operations. The Company maintained its accounting policy of estimating forfeitures. As a result of the adoption of the standard, net excess tax benefits of $70 million for the year ended December 31, 2017 are included in the Other, net line within operating cash flows on the Company’s consolidated statements of cash flows. Future Adoption of New Accounting Standards Income Taxes – Simplifying the Accounting for Income Taxes In December 2019, the FASB updated the accounting standards to simplify the accounting for income taxes. The update eliminates certain exceptions to accounting principles related to intraperiod tax allocation (prospective basis), deferred tax liabilities related to outside basis differences (modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption) and year-to-date losses in interim periods (prospective basis). The update also amends existing guidance related to situations when an entity receives a step-up in the tax basis of goodwill (prospective basis), allocation of income tax expense when members of a consolidated tax filing group issue separate financial statements (retrospective basis for all periods presented), interim recognition of enactment of tax laws or rate changes (prospective basis) and franchise taxes and other taxes partially based on income (retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption). The standard is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The method of adoption is noted parenthetically after each amendment above. The Company is currently evaluating the impact of the standard on its consolidated results of operations and financial condition. Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the FASB updated the accounting standard related to long-duration insurance contracts. The guidance revises key elements of the measurement models and disclosure requirements for long-duration insurance contracts issued by insurers and reinsurers. The guidance establishes a significant new category of benefit features called market risk benefits that protect the contractholder from other-than-nominal capital market risk and expose the insurer to that risk. Insurers will have to measure market risk benefits at fair value. Market risk benefits include variable annuity guaranteed benefits (i.e. guaranteed minimum death, withdrawal, withdrawal for life, accumulation and income benefits). The portion of the change in fair value attributable to a change in the instrument-specific credit risk of market risk benefits in a liability position will be recorded in OCI. Significant changes also relate to the measurement of the liability for future policy benefits for nonparticipating traditional long-duration insurance contracts and immediate annuities with a life contingent feature 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 DAC and 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, 2021. 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. 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. The Company adopted the standard using a prospective approach on January 1, 2020. The adoption of this update did not 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 Company adopted the standard on January 1, 2020. The adoption of this update did not 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. 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 adopted the standard on January 1, 2020. The adoption of this update did not have a material impact on the Company’s consolidated results of operations or financial condition. |
Revenue from Contract with Cust
Revenue from Contract with Customer Revenue from Contract with Customer (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue from Contracts with Customers 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: Year Ended December 31, 2019 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 $ — $ 1,783 $ — $ — $ — $ 1,783 $ — $ 1,783 Institutional — 495 — — — 495 — 495 Advisory fees 3,156 — — — — 3,156 — 3,156 Financial planning fees 330 — — — — 330 — 330 Transaction and other fees 355 189 55 8 — 607 — 607 Total management and financial advice fees 3,841 2,467 55 8 — 6,371 — 6,371 Distribution fees: Mutual funds 726 237 — — — 963 — 963 Insurance and annuity 875 171 329 28 6 1,409 — 1,409 Other products 680 — — — — 680 — 680 Total distribution fees 2,281 408 329 28 6 3,052 — 3,052 Other revenues 177 4 — — — 181 — 181 Total revenue from contracts with customers 6,299 2,879 384 36 6 9,604 — 9,604 Revenue from other sources (1) 436 34 2,075 1,011 1,096 4,652 265 4,917 Total segment gross revenues 6,735 2,913 2,459 1,047 1,102 14,256 265 14,521 Less: Banking and deposit interest expense 136 — — — 8 144 — 144 Total segment net revenues 6,599 2,913 2,459 1,047 1,094 14,112 265 14,377 Less: intersegment revenues 924 55 367 62 (6 ) 1,402 8 1,410 Total net revenues $ 5,675 $ 2,858 $ 2,092 $ 985 $ 1,100 $ 12,710 $ 257 $ 12,967 Year Ended December 31, 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 $ — $ 1,874 $ — $ — $ — $ 1,874 $ — $ 1,874 Institutional — 453 — — — 453 — 453 Advisory fees 2,865 — — — — 2,865 — 2,865 Financial planning fees 318 — — — — 318 — 318 Transaction and other fees 355 190 57 8 — 610 — 610 Total management and financial advice fees 3,538 2,517 57 8 — 6,120 — 6,120 Distribution fees: Mutual funds 729 260 — — — 989 — 989 Insurance and annuity 890 173 332 28 7 1,430 — 1,430 Other products 622 — — — — 622 — 622 Total distribution fees 2,241 433 332 28 7 3,041 — 3,041 Other revenues 171 3 — 1 — 175 — 175 Total revenue from contracts with customers 5,950 2,953 389 37 7 9,336 — 9,336 Revenue from other sources (1) 328 58 2,087 1,059 1,335 4,867 158 5,025 Total segment gross revenues 6,278 3,011 2,476 1,096 1,342 14,203 158 14,361 Less: Banking and deposit interest expense 89 — — — 6 95 — 95 Total segment net revenues 6,189 3,011 2,476 1,096 1,336 14,108 158 14,266 Less: intersegment revenues 952 50 356 61 (5 ) 1,414 17 1,431 Total net revenues $ 5,237 $ 2,961 $ 2,120 $ 1,035 $ 1,341 $ 12,694 $ 141 $ 12,835 Year Ended December 31, 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 $ — $ 1,851 $ — $ — $ — $ 1,851 $ — $ 1,851 Institutional — 495 — — — 495 — 495 Advisory fees 2,494 — — — — 2,494 — 2,494 Financial planning fees 297 — — — — 297 — 297 Transaction and other fees 362 202 57 8 — 629 — 629 Total management and financial advice fees 3,153 2,548 57 8 — 5,766 — 5,766 Distribution fees: Mutual funds 765 289 — — — 1,054 — 1,054 Insurance and annuity 855 169 327 28 5 1,384 — 1,384 Other products 475 — — — — 475 — 475 Total distribution fees 2,095 458 327 28 5 2,913 — 2,913 Other revenues 164 2 — — — 166 — 166 Total revenue from contracts with customers 5,412 3,008 384 36 5 8,845 — 8,845 Revenue from other sources (1) 252 64 2,115 947 1,232 4,610 154 4,764 Total segment gross revenues 5,664 3,072 2,499 983 1,237 13,455 154 13,609 Less: Banking and deposit interest expense 48 — — — 3 51 — 51 Total segment net revenues 5,616 3,072 2,499 983 1,234 13,404 154 13,558 Less: intersegment revenues 953 47 351 62 (2 ) 1,411 15 1,426 Total net revenues $ 4,663 $ 3,025 $ 2,148 $ 921 $ 1,236 $ 11,993 $ 139 $ 12,132 (1) Revenues not included in the scope of the revenue from contracts with customers standard. The amounts primarily consist of revenue associated with insurance and annuity products or financial instruments. Prior period revenues for the Protection and Corporate segments in the table above have been restated to reflect the transfer of AAH results to the Corporate segment in the first quarter of 2019. See Note 19 for additional information on the sale of AAH. 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 contract 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 $143 million and $138 million as of December 31, 2019 and 2018 , 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 $116 million and $112 million as of December 31, 2019 and 2018 , 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 nil as of both December 31, 2019 and 2018 . 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). This ongoing revenue may be recognized for many years after the initial sale. 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 $103 million for the year ended December 31, 2017 . 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 $400 million and $644 million as of December 31, 2019 and 2018 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2019 | |
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 and other private 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. Other than future funding commitments that are legally binding, the Company has no obligation to provide financial or other support to the non-consolidated VIEs beyond its investment nor has the Company provided any support to these entities. See Note 26 for information on future funding commitments. See Note 2 for further discussion of the Company’s accounting policy on consolidation. CLOs CLOs are asset backed financing entities collateralized by a pool of assets, primarily syndicated loans and, to a lesser extent, high-yield bonds. Multiple tranches of debt securities are issued by a CLO, offering investors various maturity and credit risk characteristics. The debt securities issued by the CLOs are non-recourse to the Company. The CLO’s debt holders have recourse only to the assets of the CLO. The assets of the CLOs cannot be used by the Company. Scheduled debt payments are based on the performance of the CLO’s collateral pool. The Company earns management fees from the CLOs based on the value of the CLO’s collateral pool and, in certain instances, may also receive incentive fees. The fee arrangement is at market and commensurate with the level of effort required to provide those services. The Company has invested in a portion of the unrated, junior subordinated notes of certain CLOs. The Company consolidates certain CLOs where it is the primary beneficiary and has the power to direct the activities that most significantly impact the economic performance of the CLO. The Company's maximum exposure to loss with respect to non-consolidated CLOs is limited to its amortized cost, which was $4 million and $5 million as of December 31, 2019 and 2018 , respectively. The Company classifies these investments as Available-for-Sale securities. See Note 6 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 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 property funds is reflected in other investments and was $12 million and $18 million as of December 31, 2019 and 2018 , respectively. Hedge Funds and other Private Funds The Company does not consolidate 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 nil and $7 million as of December 31, 2019 and 2018 , respectively. Non-U.S. Series Funds The Company manages non-U.S. series funds, which are considered VIEs. For investment management services, the Company earns management fees based on the market value of assets under management, and in certain instances may also receive performance-based fees. The fee arrangement is at market and commensurate with the level of effort required to provide those services. The Company does not consolidate these funds and its maximum exposure to loss is limited to its carrying value. The carrying value of the Company’s investment in these funds is reflected in other investments and was $15 million and $30 million as of December 31, 2019 and 2018 , 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 $270 million and $352 million as of December 31, 2019 and 2018 , respectively. The Company had a $15 million and a $43 million liability recorded as of December 31, 2019 and 2018 , respectively, related to original purchase commitments not yet remitted to the VIEs. The Company has not provided any additional support and is not contractually obligated to provide additional support to the VIEs beyond the funding commitments. Structured Investments The Company invests in structured investments which are considered VIEs for which it is not the sponsor. These structured investments typically invest in fixed income instruments and are managed by third parties and include asset backed securities, commercial and residential mortgage backed securities. The Company classifies these investments as Available-for-Sale securities. The Company has determined that it is not the primary beneficiary of these structures due to the size of the Company’s investment in the entities and position in the capital structure of these entities. The Company's maximum exposure to loss as a result of its investment in these structured investments is limited to its amortized cost. See Note 6 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 15 for the definition of the three levels of the fair value hierarchy. The following tables present the balances of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis: December 31, 2019 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Corporate debt securities $ — $ 8 $ — $ 8 Common stocks 1 — — 1 Syndicated loans — 1,454 143 1,597 Total investments 1 1,462 143 1,606 Receivables — 8 — 8 Total assets at fair value $ 1 $ 1,470 $ 143 $ 1,614 Liabilities Debt (1) $ — $ 1,628 $ — $ 1,628 Other liabilities — 84 — 84 Total liabilities at fair value $ — $ 1,712 $ — $ 1,712 December 31, 2018 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Corporate debt securities $ — $ 9 $ — $ 9 Common stocks 1 1 — 2 Other investments 4 — — 4 Syndicated loans — 1,465 226 1,691 Total investments 5 1,475 226 1,706 Receivables — 12 — 12 Total assets at fair value $ 5 $ 1,487 $ 226 $ 1,718 Liabilities Debt (1) $ — $ 1,743 $ — $ 1,743 Other liabilities — 122 — 122 Total liabilities at fair value $ — $ 1,865 $ — $ 1,865 (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 $1.7 billion as of both December 31, 2019 and 2018 . The following tables provide a summary of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis: Syndicated Loans (in millions) Balance, January 1, 2019 $ 226 Total gains (losses) included in: Net income (2 ) (1) Purchases 91 Sales (11 ) Settlements (68 ) Transfers into Level 3 272 Transfers out of Level 3 (365 ) Balance, December 31, 2019 $ 143 Changes in unrealized gains (losses) included in income relating to assets held at December 31, 2019 $ (3 ) (1) Common Stocks Syndicated Loans (in millions) Balance, January 1, 2018 $ 4 $ 180 Total gains (losses) included in: Net income 6 (1) (1 ) (1) Purchases — 97 Sales (10 ) (41 ) Settlements — (52 ) Transfers into Level 3 4 173 Transfers out of Level 3 (2 ) (160 ) Consolidation of consolidated investment entities — 54 Deconsolidation of consolidated investment entities (2 ) (24 ) Balance, December 31, 2018 $ — $ 226 Changes in unrealized gains (losses) included in income relating to assets held at December 31, 2018 $ — $ (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 — 3 146 Sales (2 ) (2 ) (28 ) Settlements — — (70 ) Transfers into Level 3 2 7 266 Transfers out of Level 3 — (8 ) (388 ) Balance, December 31, 2017 $ — $ 4 $ 180 Changes in unrealized gains (losses) included in income relating to assets held at December 31, 2017 $ — $ (1 ) (1) $ (1 ) (1) (1) Included in net investment income in the Consolidated Statements of Operations. Securities and loans transferred from Level 3 primarily represent assets with fair values that are now obtained from a third-party pricing service with observable inputs or priced in active markets. Securities and loans transferred to Level 3 represent assets with fair values that are now based on a single non-binding broker quote. All Level 3 measurements as of December 31, 2019 and 2018 were obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company. Determination of Fair Value Assets Investments The fair value of syndicated loans obtained from third-party pricing services using a market approach with observable inputs is classified as Level 2. The fair value of syndicated loans obtained from third-party pricing services with a single non-binding broker quote as the underlying valuation source is classified as Level 3. The underlying inputs used in non-binding broker quotes are not readily available to the Company. See Note 15 for a description of the Company’s determination of the fair value of corporate debt securities, common stocks and other investments. Receivables For receivables of the consolidated CLOs, the carrying value approximates fair value as the nature of these assets has historically been short term and the receivables have been collectible. The fair value of these receivables is classified as Level 2. Liabilities Debt The fair value of the CLOs’ assets, typically syndicated bank loans, is more observable than the fair value of the CLOs’ debt tranches for which market activity is limited and less transparent. As a result, the fair value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets and is classified as Level 2. Other Liabilities Other liabilities consist primarily of securities purchased but not yet settled held by consolidated CLOs. The carrying value approximates fair value as the nature of these liabilities has historically been short term. The fair value of these liabilities is classified as Level 2. Fair Value Option The Company has elected the fair value option for the financial assets and liabilities of the consolidated CLOs. Management believes that the use of the fair value option better matches the changes in fair value of assets and liabilities related to the CLOs. The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected: December 31, 2019 2018 (in millions) Syndicated loans Unpaid principal balance $ 1,678 $ 1,743 Excess unpaid principal over fair value (81 ) (52 ) Fair value $ 1,597 $ 1,691 Fair value of loans more than 90 days past due $ 4 $ — Fair value of loans in nonaccrual status 42 — Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both 18 — Debt Unpaid principal balance $ 1,761 $ 1,951 Excess unpaid principal over fair value (133 ) (208 ) Carrying value (1) $ 1,628 $ 1,743 (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 $1.7 billion as of both December 31, 2019 and 2018 . 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 $(9) million , $47 million and $(5) million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Debt of the consolidated investment entities and the stated interest rates were as follows: Carrying Value Weighted Average Interest Rate December 31, December 31, 2019 2018 2019 2018 (in millions) Debt of consolidated CLOs due 2025-2030 $ 1,628 $ 1,743 3.5 % 3.7 % The debt of the consolidated CLOs has both fixed and floating interest rates, which range from 0% to 10.6% |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments [Text Block] | Investments The following is a summary of investments: December 31, 2019 2018 (in millions) Available-for-Sale securities, at fair value $ 33,129 $ 31,058 Mortgage loans, net 2,778 2,696 Policy loans 868 861 Other investments 1,140 1,210 Total $ 37,915 $ 35,825 The following is a summary of net investment income: Years Ended December 31, 2019 2018 2017 (in millions) Investment income on fixed maturities $ 1,378 $ 1,353 $ 1,349 Net realized gains (losses) (8 ) 10 46 Affordable housing partnerships (98 ) (58 ) (100 ) Other 97 154 108 Consolidated investment entities 94 137 106 Total $ 1,463 $ 1,596 $ 1,509 Available-for-Sale securities distributed by type were as follows: Description of Securities December 31, 2019 Amortized Gross Gross Fair Value Noncredit OTTI (1) (in millions) Corporate debt securities $ 10,847 $ 1,344 $ (4 ) $ 12,187 $ — Residential mortgage backed securities 9,954 94 (19 ) 10,029 — Commercial mortgage backed securities 5,473 96 (6 ) 5,563 — Asset backed securities 1,968 42 (4 ) 2,006 1 State and municipal obligations 1,131 238 (2 ) 1,367 — U.S. government and agency obligations 1,679 1 — 1,680 — Foreign government bonds and obligations 254 19 (2 ) 271 — Other securities 26 — — 26 — Total $ 31,332 $ 1,834 $ (37 ) $ 33,129 $ 1 Description of Securities December 31, 2018 Amortized Gross Gross Fair Value Noncredit (1) (in millions) Corporate debt securities $ 13,741 $ 555 $ (230 ) $ 14,066 $ — Residential mortgage backed securities 6,373 34 (78 ) 6,329 — Commercial mortgage backed securities 4,975 18 (116 ) 4,877 — Asset backed securities 1,373 36 (11 ) 1,398 1 State and municipal obligations 2,166 192 (13 ) 2,345 — U.S. government and agency obligations 1,745 — — 1,745 — Foreign government bonds and obligations 298 9 (9 ) 298 — Total $ 30,671 $ 844 $ (457 ) $ 31,058 $ 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 December 31, 2019 and 2018 , investment securities with a fair value of $2.2 billion and $1.5 billion , respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $576 million and $510 million , respectively, may be sold, pledged or rehypothecated by the counterparty. As of both December 31, 2019 and 2018 , fixed maturity securities comprised approximately 87% of Ameriprise Financial investments. Rating agency designations are based on the availability of ratings from Nationally Recognized Statistical Rating Organizations (“NRSROs”), including Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”) and Fitch Ratings Ltd. (“Fitch”). The Company uses the median of available ratings from Moody’s, S&P and Fitch, or, if fewer than three ratings are available, the lower rating is used. When ratings from Moody’s, S&P and Fitch are unavailable, the Company may utilize ratings from other NRSROs or rate the securities internally. As of December 31, 2019 and 2018 , the Company’s internal analysts rated $624 million and $755 million , respectively, of securities using criteria similar to those used by NRSROs. A summary of fixed maturity securities by rating was as follows: Ratings December 31, 2019 December 31, 2018 Amortized Fair Value Percent of Total Fair Value Amortized Fair Value Percent of Total Fair Value (in millions, except percentages) AAA $ 18,256 $ 18,437 56 % $ 13,399 $ 13,252 43 % AA 1,113 1,304 4 1,571 1,723 5 A 3,008 3,474 10 3,667 3,899 13 BBB 8,178 9,102 28 11,102 11,290 36 Below investment grade (1) 777 812 2 932 894 3 Total fixed maturities $ 31,332 $ 33,129 100 % $ 30,671 $ 31,058 100 % (1) The amortized cost and fair value of below investment grade securities includes interest in CLOs managed by the Company of $5 million and $6 million , respectively, as of both December 31, 2019 and 2018 . These securities are not rated but are included in below investment grade due to their risk characteristics. As of December 31, 2019 and 2018 , approximately 45% and 36% , respectively, of securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any issuer were greater than 10% of total equity. The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position: Description of Securities December 31, 2019 Less than 12 months 12 months or more Total Number of Securities Fair Unrealized Number of Securities Fair Unrealized Number of Securities Fair Unrealized (in millions, except number of securities) Corporate debt securities 13 $ 66 $ (1 ) 23 $ 173 $ (3 ) 36 $ 239 $ (4 ) Residential mortgage backed securities 150 4,328 (10 ) 118 1,164 (9 ) 268 5,492 (19 ) Commercial mortgage backed securities 52 1,622 (3 ) 31 314 (3 ) 83 1,936 (6 ) Asset backed securities 34 598 (3 ) 16 213 (1 ) 50 811 (4 ) State and municipal obligations 5 23 — 4 57 (2 ) 9 80 (2 ) Foreign government bonds and obligations 1 — — 10 15 (2 ) 11 15 (2 ) Total 255 $ 6,637 $ (17 ) 202 $ 1,936 $ (20 ) 457 $ 8,573 $ (37 ) Description of Securities December 31, 2018 Less than 12 months 12 months or more Total Number of Securities Fair Unrealized Number of Securities Fair Unrealized Number of Securities Fair Unrealized (in millions, except number of securities) Corporate debt securities 345 $ 5,522 $ (152 ) 148 $ 1,717 $ (78 ) 493 $ 7,239 $ (230 ) Residential mortgage backed securities 142 2,029 (18 ) 175 2,132 (60 ) 317 4,161 (78 ) Commercial mortgage backed securities 104 2,062 (30 ) 112 1,806 (86 ) 216 3,868 (116 ) Asset backed securities 38 491 (6 ) 35 396 (5 ) 73 887 (11 ) State and municipal obligations 81 255 (4 ) 100 254 (9 ) 181 509 (13 ) Foreign government bonds and obligations 17 86 (4 ) 14 17 (5 ) 31 103 (9 ) Total 727 $ 10,445 $ (214 ) 584 $ 6,322 $ (243 ) 1,311 $ 16,767 $ (457 ) 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 attributable to lower interest rates as well as tighter credit spreads. The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Operations for OTTI related to credit losses on Available-for-Sale securities for which a portion of the securities’ total OTTI was recognized in OCI: December 31, 2019 2018 2017 (in millions) Beginning balance $ 2 $ 2 $ 69 Credit losses for which an other-than-temporary impairment was not previously recognized 15 — — Credit losses for which an other-than-temporary impairment was previously recognized 2 — 1 Reductions for securities sold during the period (realized) (1 ) — (68 ) Ending balance $ 18 $ 2 $ 2 Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in earnings were as follows: Years Ended December 31, 2019 2018 2017 (in millions) Gross realized investment gains $ 30 $ 18 $ 63 Gross realized investment losses (14 ) (9 ) (7 ) Other-than-temporary impairments (22 ) — (1 ) Total $ (6 ) $ 9 $ 55 Other-than temporary impairments for the year ended December 31, 2019 primarily related to credit losses on corporate debt securities and investments held by AAH. The Company recognized an impairment of $5 million in the first quarter of 2019 on investments held by AAH as the Company no longer intended to hold the securities until the recovery of fair value to book value. See Note 19 for additional information on the sale of AAH. Other-than temporary impairments for the year ended December 31, 2017 primarily related to credit losses on asset backed securities. See Note 21 for a rollforward of net unrealized investment gains (losses) included in AOCI. Available-for-Sale securities by contractual maturity as of December 31, 2019 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 2,471 $ 2,476 Due after one year through five years 4,723 4,900 Due after five years through 10 years 2,667 2,890 Due after 10 years 4,076 5,265 13,937 15,531 Residential mortgage backed securities 9,954 10,029 Commercial mortgage backed securities 5,473 5,563 Asset backed securities 1,968 2,006 Total $ 31,332 $ 33,129 |
Financing Receivables
Financing Receivables | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Financing Receivables [Text Block] | Financing Receivables The Company’s financing receivables primarily include commercial mortgage loans, syndicated loans, policy loans, advisor loans, margin loans, credit card receivables and the deposit receivable. See Note 2 for information regarding the Company’s accounting policies related to loans and the allowance for loan losses. Allowance for Loan Losses Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy 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. The Company does not have an allowance for loan losses for the deposit receivable as the receivable is supported by a trust and there is minimal risk of loss. Commercial Mortgage Loans and Syndicated Loans The following table presents a rollforward of the allowance for loan losses for the years ended and the ending balance of the allowance for loan losses by impairment method: December 31, 2019 2018 2017 (in millions) Beginning balance $ 24 $ 26 $ 29 Charge-offs (1 ) (2 ) (2 ) Provisions — — (1 ) Ending balance $ 23 $ 24 $ 26 Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 23 24 26 The recorded investment in financing receivables by impairment method was as follows: December 31, 2019 2018 (in millions) Individually evaluated for impairment $ 17 $ 24 Collectively evaluated for impairment 3,323 3,239 Total $ 3,340 $ 3,263 As of December 31, 2019 and 2018 , the Company’s recorded investment in financing receivables individually evaluated for impairment for which there was no related allowance for loan losses was $17 million and $24 million , respectively. Unearned income, unamortized premiums and discounts, and net unamortized deferred fees and costs are not material to the Company’s total loan balance. During the years ended December 31, 2019 , 2018 and 2017 , the Company purchased $162 million , $221 million and $200 million , respectively, and sold $54 million , $51 million and $267 million , respectively, of loans. The loans purchased consisted of syndicated loans. The loans sold during 2019 and 2018 consisted of syndicated loans. The loans sold during 2017 primarily consisted of consumer mortgage loans. The Company recorded a loss of $7 million on the sale of consumer mortgage loans during the year ended December 31, 2017 . The Company has not acquired any loans with deteriorated credit quality as of the acquisition date. Financial Advisor Loans The Company offers loans to financial advisors for transitional cost assistance. Repayment of the loan is dependent on the retention of the financial advisor. In the event a financial advisor is no longer affiliated with the Company, any unpaid balances become immediately due. As of December 31, 2019 and 2018 , principal amounts outstanding for advisor loans were $645 million and $558 million , respectively. As of December 31, 2019 and 2018 , allowance for loan losses were $28 million and $25 million , respectively. The allowance for loan losses related to loans to financial advisors is not included in the tabular disclosures above. Of the gross balance outstanding, the portion associated with financial advisors who are no longer affiliated with the Company was $15 million and $18 million as of December 31, 2019 and 2018 , respectively. The allowance for loan losses on these loans was $10 million and $13 million as of December 31, 2019 and 2018 , respectively. Credit Card Receivables In the third quarter of 2019, Ameriprise Bank, FSB acquired a credit card portfolio from a third party bank. The credit cards are co-branded with Ameriprise Financial, Inc. and issued to the Company’s customers by the third party. The principal amount outstanding of credit card receivables was $96 million as of December 31, 2019 . The allowance for loan losses was not material as of December 31, 2019 . Credit Quality Information Nonperforming loans were $25 million and $16 million as of December 31, 2019 and 2018 , 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 less than 1% of total commercial mortgage loans as of both December 31, 2019 and 2018 . Loans with the highest risk rating represent distressed loans which the Company has identified as impaired or expects to become delinquent or enter into foreclosure within the next six months. In addition, the Company reviews the concentrations of credit risk by region and property type. Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows: Loans Percentage December 31, December 31, 2019 2018 2019 2018 (in millions) East North Central $ 239 $ 216 9 % 8 % East South Central 121 107 4 4 Middle Atlantic 182 187 6 7 Mountain 251 237 9 9 New England 54 62 2 2 Pacific 831 814 30 30 South Atlantic 723 731 26 27 West North Central 214 213 8 8 West South Central 182 148 6 5 2,797 2,715 100 % 100 % Less: allowance for loan losses 19 19 Total $ 2,778 $ 2,696 Concentrations of credit risk of commercial mortgage loans by property type were as follows: Loans Percentage December 31, December 31, 2019 2018 2019 2018 (in millions) Apartments $ 692 $ 621 25 % 23 % Hotel 51 43 2 1 Industrial 429 453 15 17 Mixed use 78 54 3 2 Office 419 435 15 16 Retail 931 897 33 33 Other 197 212 7 8 2,797 2,715 100 % 100 % Less: allowance for loan losses 19 19 Total $ 2,778 $ 2,696 Syndicated Loans The recorded investment in syndicated loans as of December 31, 2019 and 2018 was $543 million and $548 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 December 31, 2019 and 2018 were $11 million and nil , respectively. Troubled Debt Restructurings The recorded investment in restructured loans was not material as of both December 31, 2019 and 2018 . Troubled debt restructurings did not have a material impact to the Company’s allowance for loan losses or income recognized for the years ended December 31, 2019 , 2018 and 2017 . There are no commitments to lend additional funds to borrowers whose loans have been restructured. Deposit Receivable The deposit receivable was $1.5 billion as of December 31, 2019 . In the first quarter of 2019, the Company reinsured approximately $1.7 billion of fixed annuity polices sold through third parties, which is approximately 20% of in force fixed annuity account balances. The arrangement contains investment guidelines and a trust to meet the Company’s risk management objectives. The transaction was effective as of January 1, 2019. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance [Text Block] | Reinsurance The Company reinsures a portion of the insurance risks associated with its traditional life, DI and LTC insurance products through reinsurance agreements with unaffiliated reinsurance companies. Reinsurance contracts do not relieve the Company from its primary obligation to policyholders. The Company generally reinsures 90% of the death benefit liability for new term life insurance policies beginning in 2001 and new individual UL and VUL insurance policies beginning in 2002. Policies issued prior to these dates are not subject to these same reinsurance levels. However, for IUL policies issued after September 1, 2013 and VUL policies issued after January 1, 2014, the Company generally reinsures 50% of the death benefit liability. Similarly, the Company reinsures 50% of the death benefit and morbidity liabilities related to its UL product with LTC benefits. The maximum amount of life insurance risk the Company will retain is $10 million on a single life and $10 million on any flexible premium survivorship life policy; however, reinsurance agreements are in place such that retaining more than $1.5 million of insurance risk on a single life or a flexible premium survivorship life policy is very unusual. Risk on UL and VUL policies is reinsured on a yearly renewable term basis. Risk on most term life policies starting in 2001 is reinsured on a coinsurance basis, a type of reinsurance in which the reinsurer participates proportionally in all material risks and premiums associated with a policy. For existing LTC policies, the Company has continued ceding 50% of the risk on a coinsurance basis to subsidiaries of Genworth Financial, Inc. (“Genworth”) and retains the remaining risk. For RiverSource Life of NY, this reinsurance arrangement applies for 1996 and later issues only. Under these agreements, the Company has the right, but never the obligation, to recapture some, or all, of the risk ceded to Genworth. Generally, the Company retains at most $5,000 per month of risk per life on DI policies sold on policy forms introduced in most states starting in 2007 and reinsures the remainder of the risk on a coinsurance basis with unaffiliated reinsurance companies. The Company retains all risk for new claims on DI contracts sold on other policy forms introduced prior to 2007. The Company also retains all risk on accidental death benefit claims and substantially all risk associated with waiver of premium provisions. As of both December 31, 2019 and 2018 , traditional life and UL insurance policies in force were $195.1 billion , of which $142.8 billion and $142.4 billion as of December 31, 2019 and 2018 were reinsured at the respective year ends. The effect of reinsurance on premiums for the Company’s traditional long-duration contracts was as follows: Years Ended December 31, 2019 2018 2017 (in millions) Direct premiums $ 621 $ 621 $ 637 Reinsurance ceded (224 ) (225 ) (227 ) Net premiums $ 397 $ 396 $ 410 Cost of insurance and administrative charges for non-traditional long-duration products are reflected in other revenues and were net of reinsurance ceded of $132 million , $126 million and $114 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The effect of reinsurance on premiums for the Company’s short-duration contracts was as follows: Years Ended December 31, 2019 (1) 2018 2017 (in millions) Written premiums Direct $ 864 $ 1,101 $ 1,119 Ceded (23 ) (55 ) (171 ) Total net written premiums $ 841 $ 1,046 $ 948 Earned premiums Direct $ 841 $ 1,124 $ 1,107 Ceded (24 ) (94 ) (123 ) Total net earned premiums $ 817 $ 1,030 $ 984 (1) 2019 amounts include AAH premiums as of September 30, 2019 prior to the sale. The amount of claims recovered through reinsurance on all contracts was $407 million , $402 million and $357 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Receivables included $3.2 billion of reinsurance recoverables as of both December 31, 2019 and 2018 , respectively, including $2.5 billion related to LTC risk ceded to Genworth, respectively. Policyholder account balances, future policy benefits and claims include $466 million and $484 million related to previously assumed reinsurance arrangements as of December 31, 2019 and 2018 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets [Text Block] | Goodwill and Other Intangible Assets Goodwill and intangible assets deemed to have indefinite lives are not amortized but are instead subject to impairment tests. There was a $5 million impairment of indefinite-lived intangible assets recorded for the year ended December 31, 2019 . There were no impairments for the years ended December 31, 2018 and 2017 . The changes in the carrying amount of goodwill reported in the Company’s main operating segments were as follows: Advice & Wealth Management Asset Annuities Protection Consolidated (in millions) Balance at January 1, 2018 $ 279 $ 805 $ 46 $ 45 $ 1,175 Foreign currency translation — (16 ) — — (16 ) Purchase price adjustments — (1 ) — — (1 ) Balance at December 31, 2018 279 788 46 45 1,158 Foreign currency translation — 10 — — 10 Purchase price adjustments — (1 ) — — (1 ) Balance at December 31, 2019 $ 279 $ 797 $ 46 $ 45 $ 1,167 As of December 31, 2019 and 2018 , the carrying amount of indefinite-lived intangible assets included $641 million and $646 million , respectively, of investment management contracts. As of both December 31, 2019 and 2018 , the carrying amount of indefinite-lived intangible assets included $69 million of trade names. Definite-lived intangible assets consisted of the following: December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Customer relationships $ 192 $ (146 ) $ 46 $ 184 $ (134 ) $ 50 Contracts 219 (202 ) 17 215 (193 ) 22 Other 197 (147 ) 50 168 (124 ) 44 Total $ 608 $ (495 ) $ 113 $ 567 $ (451 ) $ 116 Definite-lived intangible assets acquired during the year ended December 31, 2019 were $35 million with a weighted average amortization period of 5.5 years . The aggregate amortization expense for definite-lived intangible assets during the years ended December 31, 2019 , 2018 and 2017 was $37 million , $30 million and $27 million , respectively. In 2019 , 2018 and 2017 , the Company did not record any impairment charges on definite-lived intangible assets. Estimated intangible amortization expense as of December 31, 2019 for the next five years is as follows: (in millions) 2020 $ 28 2021 25 2022 21 2023 18 2024 6 |
Deferred Acquisition Costs and
Deferred Acquisition Costs and Deferred Sales Inducement Costs | 12 Months Ended |
Dec. 31, 2019 | |
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 updates market-related inputs and implements model changes related to the living benefit valuation. In addition, management conducts its annual review of life insurance and annuity valuation assumptions relative to current experience and management expectations including modeling changes. These aforementioned changes are collectively referred to as unlocking. The impact of unlocking to DAC for the year ended December 31, 2019 primarily reflected updates to interest rate assumptions, partially offset by a favorable impact from lower surrenders on annuity contracts with a withdrawal benefit. The impact of unlocking to DAC for the year ended December 31, 2018 primarily reflected updated mortality assumptions on UL and 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 for the year ended December 31, 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: 2019 2018 2017 (in millions) Balance at January 1 $ 2,776 $ 2,676 $ 2,648 Capitalization of acquisition costs 291 318 302 Amortization, excluding the impact of valuation assumptions review (165 ) (355 ) (279 ) Amortization, impact of valuation assumptions review (14 ) 33 12 Impact of change in net unrealized (gains) losses on securities (175 ) 104 (7 ) Disposal of business (15 ) — — Balance at December 31 $ 2,698 $ 2,776 $ 2,676 The balances of and changes in DSIC, which is included in other assets, were as follows: 2019 2018 2017 (in millions) Balance at January 1 $ 251 $ 276 $ 302 Capitalization of sales inducement costs 1 2 4 Amortization, excluding the impact of valuation assumptions review (15 ) (43 ) (35 ) Amortization, impact of valuation assumptions review — — (1 ) Impact of change in net unrealized (gains) losses on securities (19 ) 16 6 Balance at December 31 $ 218 $ 251 $ 276 |
Policyholder Account Balances,
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities [Text Block] | Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities Policyholder account balances, future policy benefits and claims consisted of the following: December 31, 2019 2018 (in millions) Policyholder account balances Fixed annuities (1) $ 8,909 $ 9,338 Variable annuity fixed sub-accounts 5,103 5,129 UL/VUL insurance 3,110 3,063 IUL insurance 2,025 1,728 Other life insurance 646 683 Total policyholder account balances 19,793 19,941 Future policy benefits Variable annuity GMWB 1,462 875 Variable annuity GMAB (2) (39 ) (19 ) Other annuity liabilities 139 26 Fixed annuity life contingent liabilities 1,444 1,459 Life and DI insurance 1,212 1,221 LTC insurance 5,302 4,981 UL/VUL and other life insurance additional liabilities 1,033 749 Total future policy benefits 10,553 9,292 Policy claims and other policyholders’ funds 166 891 Total policyholder account balances, future policy benefits and claims $ 30,512 $ 30,124 (1) Includes fixed deferred annuities, non-life contingent fixed payout annuities and indexed annuity host contracts. (2) Includes the fair value of GMAB embedded derivatives that was a net asset as of both December 31, 2019 and 2018 reported as a contra liability. Fixed Annuities Fixed annuities include deferred, payout and indexed annuity contracts. Deferred contracts offer a guaranteed minimum rate of interest and security of the principal invested. Payout contracts guarantee a fixed income payment for life or the term of the contract. Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates, ranging from 2.71% to 9.38% as of December 31, 2019 , depending on year of issue, with an average rate of approximately 3.83% . The Company generally invests the proceeds from the annuity contracts in fixed rate securities. The Company’s equity indexed annuity (“EIA”) product is a single premium fixed deferred annuity. The Company discontinued new sales of EIAs in 2007. The contract was issued with an initial term of seven years and interest earnings are linked to the performance of the S&P 500 ® Index. This annuity has a minimum interest rate guarantee of 3% on 90% of the initial premium, adjusted for any surrenders. The Company generally invests the proceeds from the annuity contracts in fixed rate securities and hedges the equity risk with derivative instruments. The Company’s fixed index annuity product is a fixed annuity that includes an indexed account. The rate of interest credited above the minimum guarantee for funds allocated to the indexed account is linked to the performance of the specific index for the indexed account (subject to a cap). The Company offers S&P 500 ® Index and MSCI ® EAFE Index account options. Both options offer two crediting durations, one-year and two-year. The contractholder may allocate all or a portion of the policy value to a fixed or indexed account. The portion of the policy allocated to the indexed account is accounted for as an embedded derivative. The Company hedges the interest credited rate including equity and interest rate risk related to the indexed account with derivative instruments. The contractholder can choose to add a GMWB for life rider for an additional fee. See Note 17 for additional information regarding the Company’s derivative instruments used to hedge the risk related to indexed annuities. Variable Annuities Purchasers of variable annuities can select from a variety of investment options and can elect to allocate a portion to a fixed account. A vast majority of the premiums received for variable annuity contracts are held in separate accounts where the assets are held for the exclusive benefit of those contractholders. Most of the variable annuity contracts currently issued by the Company contain one or more guaranteed benefits, including GMWB, GMAB, GMDB and GGU provisions. The Company previously offered contracts with GMIB provisions. See Notes 2 and 12 for additional information regarding the Company’s variable annuity guarantees. The Company does not currently hedge its risk under the GGU and GMIB provisions. See Notes 15 and 17 for additional information regarding the Company’s derivative instruments used to hedge risks related to GMWB, GMAB and GMDB provisions. Insurance Liabilities UL/VUL is the largest group of insurance policies written by the Company. Purchasers of UL accumulate cash value that increases by a fixed interest rate. Purchasers of VUL can select from a variety of investment options and can elect to allocate a portion to a fixed account or a separate account. A vast majority of the premiums received for VUL policies are held in separate accounts where the assets are held for the exclusive benefit of those policyholders. IUL is a UL policy that includes an indexed account. The rate of credited interest above the minimum guarantee for funds allocated to the indexed account is linked to the performance of the specific index for the indexed account (subject to a cap and floor). The Company offers an S&P 500 ® Index account option and a blended multi-index account option comprised of the S&P 500 Index, the MSCI ® EAFE Index and the MSCI EM Index. Both options offer two crediting durations, one-year and two-year. The policyholder may allocate all or a portion of the policy value to a fixed or any available indexed account. The portion of the policy allocated to the indexed account is accounted for as an embedded derivative at fair value. The Company hedges the interest credited rate including equity and interest rate risk related to the indexed account with derivative instruments. See Note 17 for additional information regarding the Company’s derivative instruments used to hedge the risk related to IUL. The Company also offers term life insurance as well as DI products. The Company no longer offers standalone LTC products and whole life insurance but has in force policies from prior years. Insurance liabilities include accumulation values, incurred but not reported claims, obligations for anticipated future claims, unpaid reported claims and claim adjustment expenses. The liability for estimates of benefits that will become payable on future claims on term life, whole life and DI policies is based on the net level premium and LTC policies is based on a gross premium valuation reflecting management’s current best estimate assumptions. Both include the anticipated interest rates earned on assets supporting the liability. Anticipated interest rates for term and whole life ranged from 3% to 10% as of December 31, 2019 . Anticipated interest rates for DI policies ranged from 3.5% to 7.5% as of December 31, 2019 and for LTC policies ranged from 5.8% to 6.8% as of December 31, 2019 . The liability for unpaid reported claims on DI and LTC policies includes an estimate of the present value of obligations for continuing benefit payments. The discount rates used to calculate present values are based on average interest rates earned on assets supporting the liability for unpaid amounts and were 4.5% and 6.0% for DI and LTC claims, respectively, as of December 31, 2019 . Portions of the Company’s UL and VUL policies have product features that result in profits followed by losses from the insurance component of the policy. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the policy. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. Separate Account Liabilities Separate account liabilities consisted of the following: December 31, 2019 2018 (in millions) Variable annuity $ 74,965 $ 66,913 VUL insurance 7,429 6,451 Other insurance 31 29 Threadneedle investment liabilities 5,063 4,532 Total $ 87,488 $ 77,925 Threadneedle Investment Liabilities Threadneedle provides a range of unitized pooled pension funds, which invest in property, stocks, bonds and cash. The investments are selected by the clients and are based on the level of risk they are willing to assume. All investment performance, net of fees, is passed through to the investors. The value of the liabilities represents the fair value of the pooled pension funds. |
Variable Annuity and Insurance
Variable Annuity and Insurance Guarantees | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Variable annuity and insurance guarantees [Text Block] | Variable Annuity and Insurance Guarantees The majority of the variable annuity contracts offered by the Company contain GMDB provisions. The Company also offers variable annuities with GGU, GMWB and GMAB provisions. The Company previously offered contracts containing GMIB provisions. See Notes 2 and 11 for additional information regarding the Company’s variable annuity guarantees. The GMDB and GGU provisions provide a specified minimum return upon death of the contractholder. The death benefit payable is the greater of (i) the contract value less any purchase payment credits subject to recapture less a pro-rata portion of any rider fees, or (ii) the GMDB provisions specified in the contract. The Company has the following primary GMDB provisions: • Return of premium — provides purchase payments minus adjusted partial surrenders. • Reset — provides that the value resets to the account value every sixth contract anniversary minus adjusted partial surrenders. This provision was often provided in combination with the return of premium provision and is no longer offered. • Ratchet — provides that the value ratchets up to the maximum account value at specified anniversary intervals, plus subsequent purchase payments less adjusted partial surrenders. The variable annuity contracts with GMWB riders typically have account values that are based on an underlying portfolio of mutual funds, the values of which fluctuate based on fund performance. At issue the guaranteed amount is equal to the amount deposited but the guarantee may be increased annually to the account value (a “step-up”) in the case of favorable market performance or by a benefit credit if the contract includes this provision. The Company has GMWB riders in force, which contain one or more of the following provisions: • Withdrawals at a specified rate per year until the amount withdrawn is equal to the guaranteed amount. • Withdrawals at a specified rate per year for the life of the contractholder (“GMWB for life”). • Withdrawals at a specified rate per year for joint contractholders while either is alive. • Withdrawals based on performance of the contract. • Withdrawals based on the age withdrawals begin. • Credits are applied annually for a specified number of years to increase the guaranteed amount as long as withdrawals have not been taken. Variable annuity contractholders age 79 or younger at contract issue can also obtain a principal-back guarantee by purchasing the optional GMAB rider for an additional charge. The GMAB rider guarantees that, regardless of market performance at the end of the 10 -year waiting period, the contract value will be no less than the original investment or a specified percentage of the highest anniversary value, adjusted for withdrawals. If the contract value is less than the guarantee at the end of the 10 -year period, a lump sum will be added to the contract value to make the contract value equal to the guarantee value. Certain UL policies offered by the Company provide secondary guarantee benefits. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities: Variable Annuity Guarantees by Benefit Type (1) December 31, 2019 December 31, 2018 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 $ 62,909 $ 60,967 $ 5 67 $ 55,810 $ 53,872 $ 417 67 Five/six-year reset 7,983 5,263 7 67 7,670 4,941 112 67 One-year ratchet 5,935 5,600 7 70 5,560 5,210 417 70 Five-year ratchet 1,396 1,340 — 66 1,307 1,251 23 66 Other 1,192 1,174 65 73 1,033 1,014 148 72 Total — GMDB $ 79,415 $ 74,344 $ 84 67 $ 71,380 $ 66,288 $ 1,117 67 GGU death benefit $ 1,115 $ 1,063 $ 133 71 $ 992 $ 940 $ 112 70 GMIB $ 186 $ 172 $ 6 70 $ 180 $ 164 $ 12 69 GMWB: GMWB $ 1,999 $ 1,993 $ 1 73 $ 1,990 $ 1,984 $ 3 72 GMWB for life 46,799 46,691 272 68 40,966 40,876 742 68 Total — GMWB $ 48,798 $ 48,684 $ 273 68 $ 42,956 $ 42,860 $ 745 68 GMAB $ 2,528 $ 2,524 $ — 60 $ 2,456 $ 2,450 $ 24 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: December 31, 2019 December 31, 2018 Net Amount at Risk Weighted Average Attained Age Net Amount at Risk Weighted Average Attained Age (in millions, except age) UL secondary guarantees $ 6,550 67 $ 6,513 66 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 5 — (554 ) (56 ) 84 Paid claims (4 ) (2 ) — — (29 ) Balance at December 31, 2017 17 6 463 (80 ) 489 Incurred claims 8 2 412 61 201 Paid claims (6 ) — — — (31 ) Balance at December 31, 2018 19 8 875 (19 ) 659 Incurred claims 2 (1 ) 587 (20 ) 141 Paid claims (5 ) — — — (42 ) Balance at December 31, 2019 $ 16 $ 7 $ 1,462 $ (39 ) $ 758 (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: December 31, 2019 2018 (in millions) Mutual funds: Equity $ 44,739 $ 39,764 Bond 23,374 21,190 Other 6,471 5,568 Total mutual funds $ 74,584 $ 66,522 No gains or losses were recognized on assets transferred to separate accounts for the years ended December 31, 2019 , 2018 and 2017 . |
Customer Deposits
Customer Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Customer deposits [Text Block] | Customer Deposits Customer deposits consisted of the following: December 31, 2019 2018 (in millions) Fixed rate certificates $ 7,032 $ 7,377 Stock market certificates 456 476 Stock market embedded derivative 7 6 Other 27 33 Less: accrued interest classified in other liabilities (21 ) (7 ) Total investment certificate reserves 7,501 7,885 Banking and brokerage deposits 6,929 3,660 Total $ 14,430 $ 11,545 Investment Certificates The Company offers fixed rate investment certificates primarily in amounts ranging from $1,000 to $2 million with interest crediting rate terms ranging from 3 to 48 months. Investment certificates may be purchased either with a lump sum payment or installment payments. Certificate owners are entitled to receive a fixed sum at either maturity or upon demand depending on the type of certificate. Payments from certificate owners are credited to investment certificate reserves, which generally accumulate interest at specified percentage rates. Certain investment certificates allow for a surrender charge on premature surrenders. Reserves for certificates that do not allow for a surrender charge were $2.7 billion as of December 31, 2019 . The Company generally invests the proceeds from investment certificates in fixed and variable rate securities. Certain investment certificate products have returns tied to the performance of equity markets. The Company guarantees the principal for purchasers who hold the certificate for the full term and purchasers may participate in increases in the stock market based on the S&P 500 ® Index, up to a maximum return. Purchasers can choose 100% participation in the market index up to the cap or 25% participation plus fixed interest with a combined total up to the cap. Current first term certificates have maximum returns of 2.75% to 13.25% , depending on the term length. The equity component of these certificates is considered an embedded derivative and is accounted for separately. See Note 17 for additional information about derivative instruments used to economically hedge the equity price risk related to the Company’s stock market certificates. Banking and Brokerage Deposits Banking and brokerage deposits are amounts due on demand to customers related to free credit balances, funds deposited by customers and funds accruing to customers as a result of trades or contracts. The Company pays interest on certain customer credit balances and the interest is included in banking and deposit interest expense. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt [Text Block] | Debt The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows: Outstanding Balance Stated Interest Rate December 31, December 31, 2019 2018 2019 2018 (in millions) Long-term debt: Senior notes due 2019 $ — $ 300 — % 7.3 % Senior notes due 2020 750 750 5.3 5.3 Senior notes due 2022 500 — 3.0 — 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 Finance lease liabilities 57 25 N/A N/A Other (1) (10 ) (8 ) N/A N/A Total long-term debt 3,097 2,867 Short-term borrowings: Federal Home Loan Bank (“FHLB”) advances 201 151 1.8 2.6 Repurchase agreements — 50 — 2.6 Total short-term borrowings 201 201 Total $ 3,298 $ 3,068 N/A Not Applicable. (1) Amounts include adjustments for fair value hedges on the Company’s long-term debt and unamortized discount and debt issuance costs. See Note 17 for information on the Company’s fair value hedges. Long-Term Debt On March 22, 2019, the Company issued $500 million of unsecured senior notes due March 22, 2022 and incurred debt issuance costs of $3 million . Interest payments are due semi-annually in arrears on March 22 and September 22, commencing on September 22, 2019. The Company repaid $300 million principal amount of its 7.3% senior notes at maturity on June 28, 2019. The Company’s senior notes due 2020, 2022, 2023, 2024 and 2026 may be redeemed, in whole or in part, at any time prior to maturity at a price equal to the greater of the principal amount and the present value of remaining scheduled payments, discounted to the redemption date, plus accrued interest. Short-term Borrowings The Company enters into repurchase agreements in exchange for cash, which it accounts for as secured borrowings and pledges Available-for-Sale securities to collateralize its obligations under the repurchase agreements. As of December 31, 2018 the Company had pledged $52 million of agency residential mortgage backed securities. The remaining maturity of outstanding repurchase agreements was less than three months as of December 31, 2018 . 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 and bank subsidiaries are members 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 and residential mortgage backed securities as collateral to access these borrowings. The fair value of the securities pledged is recorded in investments and was $905 million and $780 million , of commercial mortgage backed securities, and $184 million and nil , of residential mortgage backed securities, as of December 31, 2019 and 2018 , respectively. The remaining maturity of outstanding FHLB advances was less than two months as of December 31, 2019 and less than three months as of December 31, 2018 . The stated interest rate of the FHLB advances is a weighted average annualized interest rate on the outstanding borrowings as of the balance sheet date. On October 12, 2017, the Company entered into an amended and restated credit agreement that provides for an unsecured revolving credit facility of up to $750 million that expires in October 2022. Under the terms of the credit agreement for the facility, the Company may increase the amount of this facility up to $1 billion upon satisfaction of certain approval requirements. As of both December 31, 2019 and 2018 , the Company had no borrowings outstanding and $1 million of letters of credit issued against these facilities. The Company’s credit facility contains various administrative, reporting, legal and financial covenants. The Company was in compliance with all such covenants as of both December 31, 2019 and 2018 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Values of assets and liabilities [Text Block] | Fair Values of Assets and Liabilities GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability is not exchanged subject to a forced liquidation or distressed sale. Valuation Hierarchy The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. Level 2 Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities. Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The following tables present the balances of assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis: December 31, 2019 Level 1 Level 2 Level 3 Total (in millions) Assets Cash equivalents $ 267 $ 2,924 $ — $ 3,191 Available-for-Sale securities: Corporate debt securities — 11,437 750 12,187 Residential mortgage backed securities — 10,012 17 10,029 Commercial mortgage backed securities — 5,563 — 5,563 Asset backed securities — 1,987 19 2,006 State and municipal obligations — 1,367 — 1,367 U.S. government and agency obligations 1,680 — — 1,680 Foreign government bonds and obligations — 271 — 271 Other securities — 26 — 26 Total Available-for-Sale securities 1,680 30,663 786 33,129 Equity securities 1 — — 1 Investments at NAV 6 (1) Trading and other securities 12 26 — 38 Separate account assets at NAV 87,488 (1) Investments and cash equivalents segregated for regulatory purposes 14 — — 14 Other assets: Interest rate derivative contracts — 1,455 — 1,455 Equity derivative contracts 162 2,722 — 2,884 Credit derivative contracts — 4 — 4 Foreign exchange derivative contracts 1 17 — 18 Total other assets 163 4,198 — 4,361 Total assets at fair value $ 2,137 $ 37,811 $ 786 $ 128,228 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 3 $ 43 $ 46 IUL embedded derivatives — — 881 881 GMWB and GMAB embedded derivatives — — 763 763 (2) Total policyholder account balances, future policy benefits and claims — 3 1,687 1,690 (3) Customer deposits — 14 — 14 Other liabilities: Interest rate derivative contracts — 418 — 418 Equity derivative contracts 36 3,062 — 3,098 Foreign exchange derivative contracts 1 8 — 9 Other 6 4 44 54 Total other liabilities 43 3,492 44 3,579 Total liabilities at fair value $ 43 $ 3,509 $ 1,731 $ 5,283 December 31, 2018 Level 1 Level 2 Level 3 Total (in millions) Assets Cash equivalents $ 155 $ 2,350 $ — $ 2,505 Available-for-Sale securities: Corporate debt securities — 13,153 913 14,066 Residential mortgage backed securities — 6,193 136 6,329 Commercial mortgage backed securities — 4,857 20 4,877 Asset backed securities — 1,392 6 1,398 State and municipal obligations — 2,345 — 2,345 U.S. government and agency obligations 1,745 — — 1,745 Foreign government bonds and obligations — 298 — 298 Total Available-for-Sale securities 1,745 28,238 1,075 31,058 Equity securities — 1 — 1 Investments at NAV 6 (1) Trading and other securities 36 38 — 74 Separate account assets at NAV 77,925 (1) Investments and cash equivalents segregated for regulatory purposes 301 — — 301 Other assets: Interest rate derivative contracts — 796 — 796 Equity derivative contracts 191 1,527 — 1,718 Foreign exchange derivative contracts 5 55 — 60 Total other assets 196 2,378 — 2,574 Total assets at fair value $ 2,433 $ 33,005 $ 1,075 $ 114,444 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 3 $ 14 $ 17 IUL embedded derivatives — — 628 628 GMWB and GMAB embedded derivatives — — 328 328 (4) Total policyholder account balances, future policy benefits and claims — 3 970 973 (5) Customer deposits — 6 — 6 Other liabilities: Interest rate derivative contracts — 424 — 424 Equity derivative contracts 78 2,076 — 2,154 Credit derivative contracts — 18 — 18 Foreign exchange derivative contracts 4 31 — 35 Other 13 6 30 49 Total other liabilities 95 2,555 30 2,680 Total liabilities at fair value $ 95 $ 2,564 $ 1,000 $ 3,659 (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 $981 million of individual contracts in a liability position and $218 million of individual contracts in an asset position as of December 31, 2019 . (3) The Company’s adjustment for nonperformance risk resulted in a $(502) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2019 . (4) The fair value of the GMWB and GMAB embedded derivatives included $646 million of individual contracts in a liability position and $318 million of individual contracts in an asset position as of December 31, 2018 . (5) The Company’s adjustment for nonperformance risk resulted in a $(726) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2018 . The following tables provide a summary of changes in Level 3 assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis: Available-for-Sale Securities Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance, January 1, 2019 $ 913 $ 136 $ 20 $ 6 $ 1,075 Total gains (losses) included in: Net income (1 ) — — — (1 ) (1) Other comprehensive income (loss) 31 — — (1 ) 30 Purchases 55 477 — 18 550 Settlements (248 ) (12 ) — — (260 ) Transfers into Level 3 — — — 14 14 Transfers out of Level 3 — (584 ) (20 ) (18 ) (622 ) Balance, December 31, 2019 $ 750 $ 17 $ — $ 19 $ 786 Changes in unrealized gains (losses) relating to assets held at December 31, 2019 $ (1 ) $ — $ — $ — $ (1 ) (1) Policyholder Account Balances, Other Liabilities Indexed Annuity Embedded Derivatives IUL GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2019 $ 14 $ 628 $ 328 $ 970 $ 30 Total (gains) losses included in: Net income 8 (2) 209 (2) 80 (3) 297 (3 ) (4) Issues 21 113 361 495 18 Settlements — (69 ) (6 ) (75 ) (1 ) Balance, December 31, 2019 $ 43 $ 881 $ 763 $ 1,687 $ 44 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2019 $ — $ 209 (2) $ 82 (3) $ 291 $ — Available-for-Sale Securities Other Derivatives Contracts 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 ) (1) (3 ) (3) Other comprehensive income (loss) (26 ) 1 — 1 (24 ) — Purchases 15 70 72 32 189 3 Settlements (214 ) (29 ) — (1 ) (244 ) — Transfers into Level 3 — — — 2 2 — Transfers out of Level 3 — (61 ) (52 ) (35 ) (148 ) — Balance, December 31, 2018 $ 913 $ 136 $ 20 $ 6 $ 1,075 $ — Changes in unrealized gains (losses) relating to assets held at December 31, 2018 $ (1 ) $ — $ — $ — $ (1 ) (1) $ — Policyholder Account Balances, Other Liabilities Indexed Annuity Embedded Derivatives IUL GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2018 $ — $ 601 $ (49 ) $ 552 $ 28 Total (gains) losses included in: Net income (3 ) (2) (9 ) (2) 49 (3) 37 2 (4) Issues 17 90 350 457 — Settlements — (54 ) (22 ) (76 ) — Balance, December 31, 2018 $ 14 $ 628 $ 328 $ 970 $ 30 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2018 $ — $ (9 ) (2) $ 47 (3) $ 38 $ — Available-for-Sale Securities Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Common Stocks Total (in millions) Balance, January 1, 2017 $ 1,311 $ 268 $ — $ 68 $ 1 $ 1,648 Total gains (losses) included in: Net income — — — — 1 1 (1) Other comprehensive income (loss) (8 ) 1 — (4 ) — (11 ) Purchases 138 132 65 64 — 399 Sales — — — — (1 ) (1 ) Settlements (302 ) (43 ) — (29 ) — (374 ) Transfers into Level 3 — 20 — 27 8 55 Transfers out of Level 3 — (223 ) (65 ) (119 ) (9 ) (416 ) Balance, December 31, 2017 $ 1,139 $ 155 $ — $ 7 $ — $ 1,301 Changes in unrealized gains (losses) relating to assets held at December 31, 2017 $ — $ — $ — $ (1 ) $ — $ (1 ) (1) Policyholder Account Balances, Other Liabilities IUL GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2017 $ 464 $ 614 $ 1,078 $ 13 Total (gains) losses included in: Net income 87 (2) (977 ) (3) (890 ) 2 (4) Issues 92 326 418 13 Settlements (42 ) (12 ) (54 ) — Balance, December 31, 2017 $ 601 $ (49 ) $ 552 $ 28 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2017 $ 87 (2) $ (946 ) (3) $ (859 ) $ — (1) Included in net investment income in the Consolidated Statements of Operations. (2) Included in interest credited to fixed accounts in the Consolidated Statements of Operations. (3) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. (4) Included in general and administrative expense in the Consolidated Statements of Operations. The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $(190) million , $281 million and $(71) million , net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the years ended December 31, 2019 , 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 following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities: December 31, 2019 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 749 Discounted cash flow Yield/spread to U.S. Treasuries 0.8 % – 2.8% 1.2 % Asset backed securities $ 5 Discounted cash flow Annual short-term default rate 3.3% Annual long-term default rate 3.0% Discount rate 12.0% Constant prepayment rate 5.0 % – 10.0% 10.0 % Loss recovery 36.4 % – 63.6% 63.6 % IUL embedded derivatives $ 881 Discounted cash flow Nonperformance risk (1) 65 bps Indexed annuity embedded derivatives $ 43 Discounted cash flow Surrender rate 0.0 % – 50.0% Nonperformance risk (1) 65 bps GMWB and GMAB embedded derivatives $ 763 Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0% – 36.0% Surrender rate 0.1% – 73.5% Market volatility (3) 3.7% – 15.9% Nonperformance risk (1) 65 bps Contingent consideration liabilities $ 44 Discounted cash flow Discount rate 9.0% December 31, 2018 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 912 Discounted cash flow Yield/spread to U.S. Treasuries 1.0 % – 3.6% 1.5 % Asset backed securities $ 6 Discounted cash flow Annual short-term default rate 2.3% Annual long-term default rate 2.5 % – 3.0% 2.9 % Discount rate 11.5% Constant prepayment rate 5.0 % – 10.0% 10.0 % Loss recovery 36.4 % – 63.6% 63.6 % IUL embedded derivatives $ 628 Discounted cash flow Nonperformance risk (1) 119 bps Indexed annuity embedded derivatives $ 14 Discounted cash flow Surrender rate 0.0% – 50.0% Nonperformance risk (1) 119 bps GMWB and GMAB embedded derivatives $ 328 Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0% – 36.0% Surrender rate 0.1% – 73.4% Market volatility (3) 4.0% – 16.1% Nonperformance risk (1) 119 bps Contingent consideration liabilities $ 30 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. Uncertainty of Fair Value Measurements Significant increases (decreases) in the yield/spread to U.S. Treasuries used in the fair value measurement of Level 3 corporate debt securities in isolation would have resulted in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the annual default rate and discount rate used in the fair value measurement of Level 3 asset backed securities in isolation, generally, would have resulted in a significantly lower (higher) fair value measurement and significant increases (decreases) in loss recovery in isolation would have resulted in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the constant prepayment rate in isolation would have resulted in a significantly lower (higher) fair value measurement. Significant increases (decreases) in nonperformance risk used in the fair value measurement of the IUL embedded derivatives in isolation would have resulted in a significantly lower (higher) fair value measurement. Significant increases (decreases) in nonperformance risk and surrender rate used in the fair value measurement of the indexed annuity embedded derivatives in isolation would have resulted in a significantly lower (higher) liability value. Significant increases (decreases) in utilization and volatility used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would have resulted in a significantly higher (lower) liability value. Significant increases (decreases) in nonperformance risk and surrender rate used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would have resulted in a significantly lower (higher) liability value. Utilization of guaranteed withdrawals and surrender rates vary with the type of rider, the duration of the policy, the age of the contractholder, the distribution channel and whether the value of the guaranteed benefit exceeds the contract accumulation value. Significant increases (decreases) in the discount rate used in the fair value measurement of the contingent consideration liability in isolation would have resulted 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 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 and Cash Equivalents Segregated for Regulatory Purposes Investments and cash equivalents 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 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, foreign currency forwards and the majority of options. The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial as of December 31, 2019 and 2018 . See Note 16 and Note 17 for further information on the credit risk of derivative instruments and related collateral. Liabilities Policyholder Account Balances, Future Policy Benefits and Claims There is no active market for the transfer of the Company’s embedded derivatives attributable to the provisions of certain variable annuity riders, index annuity and IUL products. The Company values the embedded derivatives attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculate fair value as the present value of future expected benefit payments less the present value of future expected rider fees attributable to the embedded derivative feature. The projected cash flows used by these models include observable capital market assumptions and incorporate significant unobservable inputs related to implied volatility as well as contractholder behavior assumptions that include margins for risk, all of which the Company believes 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 ac count 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 fixed index annuity and IUL products. The Company uses a discounted cash flow model to determine the fair value of the embedded derivatives associated with the provisions of its equity index annuity product. The projected cash flows generated by this model are based on significant observable inputs related to interest rates, volatilities and equity index levels and, therefore, are classified as Level 2. The 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. 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 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, foreign currency forwards and the majority of options. The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial as of December 31, 2019 and 2018 . See Note 16 and Note 17 for further information on the credit risk of derivative instruments and related collateral. Securities sold but not yet purchased represent obligations of the Company to deliver specified securities that it does not yet own, creating a liability to purchase the security in the market at prevailing prices. 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 nationally-recognized pricing services, or other model-based valuation techniques such as the present value of cash flows. Level 1 securities sold but not yet purchased primarily include U.S Treasuries traded in active markets. Level 2 securities sold but not yet purchased primarily include corporate bonds. 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 $158 million and $112 million as of December 31, 2019 and 2018 , 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: December 31, 2019 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,778 $ — $ — $ 2,833 $ 2,833 Policy loans 868 — — 810 810 Receivables 3,168 102 934 2,229 3,265 Restricted and segregated cash 2,372 2,372 — — 2,372 Other investments and assets 671 — 626 46 672 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 9,110 $ — $ — $ 10,061 $ 10,061 Investment certificate reserves 7,508 — — 7,497 7,497 Banking and brokerage deposits 6,929 6,929 — — 6,929 Separate account liabilities — investment contracts 5,403 — 5,403 — 5,403 Debt and other liabilities 3,374 104 3,372 21 3,497 December 31, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,696 $ — $ — $ 2,661 $ 2,661 Policy loans 861 — — 810 810 Receivables 1,677 179 965 489 1,633 Restricted and segregated cash 2,609 2,609 — — 2,609 Other investments and assets 572 — 491 60 551 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 9,609 $ — $ — $ 9,672 $ 9,672 Investment certificate reserves 7,886 — — 7,845 7,845 Brokerage deposits 3,660 3,660 — — 3,660 Separate account liabilities — investment contracts 4,843 — 4,843 — 4,843 (1) Debt and other liabilities 3,296 188 3,059 57 3,304 (1) The fair value of separate account liabilities - investment contracts as of December 31, 2018 was previously incorrectly omitted from the fair value hierarchy based on use of NAV per share as a practical expedient. Receivables include the deposit receivable, 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, credit card receivables, certificate of deposits with original or remaining maturities at the time of purchase of more than 90 days, the Company’s membership in the FHLB and investments related to the Community Reinvestment Act. See Note 7 for additional information on mortgage loans, policy loans, syndicated loans, credit card receivables and the deposit receivable. Policyholder account balances, future policy benefit and claims include fixed annuities in deferral status, non-life contingent fixed annuities in payout status, indexed annuity host contracts and the fixed portion of a small number of variable annuity contracts classified as investment contracts. See Note 11 for additional information on these liabilities. Investment certificate reserves represent customer deposits for fixed rate certificates and stock market certificates. Banking and brokerage deposits are amounts payable to customers related to free credit balances, funds deposited by customers and funds accruing to customers as a result of trades or contracts. Separate account liabilities are primarily investment contracts in pooled pension funds offered by Threadneedle. Debt and other liabilities include the Company’s long-term debt, short-term borrowings, securities loaned and future funding commitments to affordable housing partnerships and other real estate partnerships. See Note 14 for further information on the Company’s long-term debt and short-term borrowings. |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
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: December 31, 2019 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 4,258 $ — $ 4,258 $ (2,933 ) $ (1,244 ) $ (73 ) $ 8 OTC cleared 21 — 21 (21 ) — — — Exchange-traded 82 — 82 (5 ) — — 77 Total derivatives 4,361 — 4,361 (2,959 ) (1,244 ) (73 ) 85 Securities borrowed 102 — 102 (14 ) — (85 ) 3 Total $ 4,463 $ — $ 4,463 $ (2,973 ) $ (1,244 ) $ (158 ) $ 88 December 31, 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 Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 2,525 $ — $ 2,525 $ (2,075 ) $ (403 ) $ (26 ) $ 21 OTC cleared 34 — 34 (23 ) — — 11 Exchange-traded 15 — 15 (1 ) — — 14 Total derivatives 2,574 — 2,574 (2,099 ) (403 ) (26 ) 46 Securities borrowed 179 — 179 (37 ) — (139 ) 3 Total $ 2,753 $ — $ 2,753 $ (2,136 ) $ (403 ) $ (165 ) $ 49 (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: December 31, 2019 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,473 $ — $ 3,473 $ (2,933 ) $ — $ (540 ) $ — OTC cleared 41 — 41 (21 ) — — 20 Exchange-traded 11 — 11 (5 ) — — 6 Total derivatives 3,525 — 3,525 (2,959 ) — (540 ) 26 Securities loaned 104 — 104 (14 ) — (87 ) 3 Total $ 3,629 $ — $ 3,629 $ (2,973 ) $ — $ (627 ) $ 29 December 31, 2018 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 2,597 $ — $ 2,597 $ (2,075 ) $ (89 ) $ (430 ) $ 3 OTC cleared 24 — 24 (23 ) — — 1 Exchange-traded 10 — 10 (1 ) — — 9 Total derivatives 2,631 — 2,631 (2,099 ) (89 ) (430 ) 13 Securities loaned 188 — 188 (37 ) — (146 ) 5 Repurchase agreements 50 — 50 — — (50 ) — Total $ 2,869 $ — $ 2,869 $ (2,136 ) $ (89 ) $ (626 ) $ 18 (1) Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. In the tables above, the amount of assets or liabilities presented are offset first by financial instruments that have the right of offset under master netting or similar arrangements, then any remaining amount is reduced by the amount of cash and securities collateral. The actual collateral may be greater than amounts presented in the tables. When the fair value of collateral accepted by the Company is less than the amount due to the Company, there is a risk of loss if the counterparty fails to perform or provide additional collateral. To mitigate this risk, the Company monitors collateral values regularly and requires additional collateral when necessary. When the value of collateral pledged by the Company declines, it may be required to post additional collateral. Freestanding derivative instruments are reflected in other assets and other liabilities. Cash collateral pledged by the Company is reflected in other assets and cash collateral accepted by the Company is reflected in other liabilities. Repurchase agreements are reflected in short-term borrowings. Securities borrowing and lending agreements are reflected in receivables and other liabilities, respectively. See Note 17 for additional disclosures related to the Company’s derivative instruments, Note 14 for additional disclosures related to the Company’s repurchase agreements and Note 5 for information related to derivatives held by consolidated investment entities. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2019 | |
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. Certain of the Company’s freestanding derivative instruments are subject to master netting arrangements. The Company’s policy on the recognition of derivatives on the Consolidated Balance Sheets is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. See Note 16 for additional information regarding the estimated fair value of the Company’s freestanding derivatives after considering the effect of master netting arrangements and collateral. The Company uses derivatives as economic hedges and accounting hedges. The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives: December 31, 2019 December 31, 2018 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 - fair value hedges $ 375 $ 3 $ — $ 675 $ 7 $ — Foreign exchange contracts - net investment hedges 93 — 3 103 1 — Total qualifying hedges 468 3 3 778 8 — Derivatives not designated as hedging instruments Interest rate contracts 57,979 1,452 418 58,244 789 424 Equity contracts 61,921 2,884 3,098 54,079 1,718 2,154 Credit contracts 1,419 4 — 1,209 — 18 Foreign exchange contracts 3,412 18 6 4,908 59 35 Other contracts 1 — — 2 — — Total non-designated hedges 124,732 4,358 3,522 118,442 2,566 2,631 Embedded derivatives GMWB and GMAB (4) N/A — 763 N/A — 328 IUL N/A — 881 N/A — 628 Indexed annuities N/A — 46 N/A — 17 SMC N/A — 14 N/A — 6 Total embedded derivatives N/A — 1,704 N/A — 979 Total derivatives $ 125,200 $ 4,361 $ 5,229 $ 119,220 $ 2,574 $ 3,610 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 $2.3 billion and $1.4 billion as of December 31, 2019 and 2018 , respectively. See Note 16 for additional information related to master netting arrangements and cash collateral. See Note 5 for information about derivatives held by consolidated VIEs. (4) The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2019 included $981 million of individual contracts in a liability position and $218 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2018 included $646 million of individual contracts in a liability position and $318 million of individual contracts in an asset position. See Note 15 for additional information regarding the Company’s fair value measurement of derivative instruments. As of December 31, 2019 and 2018 , investment securities with a fair value of $84 million and $28 million , respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $84 million and $28 million , respectively, may be sold, pledged or rehypothecated by the Company. As of both December 31, 2019 and 2018 , the Company had sold, pledged or rehypothecated none of these securities. In addition, as of both December 31, 2019 and 2018 , non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets. Derivatives Not Designated as Hedges The following table presents a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Operations: Net Investment Income Banking and Deposit Interest Expense Distribution Expenses Interest Credited to Fixed Accounts Benefits, Claims, Losses and Settlement Expenses General and Administrative Expense (in millions) Year Ended December 31, 2019 Interest rate contracts $ (34 ) $ — $ — $ — $ 1,097 $ — Equity contracts — 11 99 117 (1,547 ) 16 Credit contracts — — — — (73 ) — Foreign exchange contracts — — — — (30 ) (1 ) Other contracts — — — — — — GMWB and GMAB embedded derivatives — — — — (435 ) — IUL embedded derivatives — — — (140 ) — — Indexed annuity embedded derivatives — — — (8 ) — — SMC embedded derivatives — (9 ) — — — — Total gain (loss) $ (34 ) $ 2 $ 99 $ (31 ) $ (988 ) $ 15 Year Ended December 31, 2018 Interest rate contracts $ 12 $ — $ — $ — $ (312 ) $ — Equity contracts — (4 ) (42 ) (49 ) 302 (7 ) Credit contracts — — — — 7 — Foreign exchange contracts (2 ) — — — 1 (9 ) Other contracts — — — — (3 ) — GMWB and GMAB embedded derivatives — — — — (377 ) — IUL embedded derivatives — — — 63 — — Indexed annuity embedded derivatives — — — 3 — — SMC embedded derivatives — 4 — — — — Total gain (loss) $ 10 $ — $ (42 ) $ 17 $ (382 ) $ (16 ) Year Ended December 31, 2017 Interest rate contracts $ (3 ) $ — $ — $ — $ 1 $ — Equity contracts (10 ) 4 54 75 (1,081 ) 11 Credit contracts — — — — (22 ) — Foreign exchange contracts — — 3 — (23 ) 6 Other contracts — — — — (2 ) — GMWB and GMAB embedded derivatives — — — — 663 — IUL embedded derivatives — — — (45 ) — — SMC embedded derivatives — (4 ) — — — — Total gain (loss) $ (13 ) $ — $ 57 $ 30 $ (464 ) $ 17 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 December 31, 2019 : Premiums Payable Premiums Receivable (in millions) 2020 $ 214 $ 133 2021 152 112 2022 204 198 2023 126 58 2024 70 10 2025-2029 351 7 Total $ 1,117 $ 518 Actual timing and payment amounts may differ due to future settlements, modifications or exercises of the contracts prior to the full premium being paid or received. The Company has a macro hedge program to provide protection against the statutory tail scenario risk arising from variable annuity reserves on its statutory surplus and to cover some of the residual risks not covered by other hedging activities. As a means of economically hedging these risks, the Company may use a combination of futures, options, swaps and swaptions. Certain of the macro hedge derivatives may contain settlement provisions linked to both equity returns and interest rates. The Company’s macro hedge derivatives that contain settlement provisions linked to both equity returns and interest rates, if any, are shown in other contracts in the tables above. 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 and total return swaps to economically hedge its exposure related to compensation plans. The Company enters into interest rate swaps to offset interest rate changes on unrealized gains or losses for certain investments. Cash Flow Hedges The Company has designated derivative instruments as a cash flow hedge of interest rate exposure on forecasted debt interest payments. For derivative instruments that qualify as cash flow hedges, the gain or loss on the derivative instruments is reported in AOCI and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented within the same line item as the earnings impact of the hedged item in interest and debt expense. Prior to the adoption of the new accounting standard Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities on January 1, 2019, the Company recorded the effective portion of the gain or loss on the derivative instruments in AOCI and any ineffective portion in current period earnings. See Note 3 for additional information on the adoption of the new accounting standard. For the years ended December 31, 2019 , 2018 and 2017 , the amounts reclassified from AOCI to earnings related to cash flow hedges were immaterial. The estimated net amount recorded in AOCI as of December 31, 2019 that the Company expects to reclassify to earnings as a reduction to interest and debt expense within the next twelve months is $1 million . Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is 16 years and relates to forecasted debt interest payments. See Note 21 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 interest rate swap related to the senior notes due June 2019 was settled during the second quarter when the debt was repaid. The swaps have identical terms as the underlying debt being hedged. The Company recognizes gains and losses on the derivatives and the related hedged items within interest and debt expense. See Note 14 for the cumulative basis adjustments for fair value hedges. The following table is a summary of the impact of derivatives designated as hedges on the Consolidated Statements of Operations: Years Ended December 31, 2019 2018 Total interest and debt expense per Consolidated Statements of Operations $ 214 $ 245 Gain (loss) on interest rate contracts designated as fair value hedges: Hedged items $ 5 $ 15 Derivatives designated as fair value hedges (5 ) (15 ) Gain (loss) on interest rate contracts designated as cash flow hedges: Amount of gain (loss) reclassified from AOCI into income $ 2 $ — Net Investment Hedges The Company entered into, and designated as net investment hedges in foreign operations, forward contracts to hedge a portion of the Company’s foreign currency exchange rate risk associated with its investment in Threadneedle. As the Company determined that the forward contracts are effective, the change in fair value of the derivatives is recognized in AOCI as part of the foreign currency translation adjustment. For the years ended December 31, 2019 and 2018 , the Company recognized a loss of $2 million and a gain of $14 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 16 for additional information on the Company’s credit exposure related to derivative assets. Certain of the Company’s derivative contracts contain provisions that adjust the level of collateral the Company is required to post based on the Company’s debt rating (or based on the financial strength of the Company’s life insurance subsidiaries for contracts in which those subsidiaries are the counterparty). Additionally, certain of the Company’s derivative contracts contain provisions that allow the counterparty to terminate the contract if the Company’s debt does not maintain a specific credit rating (generally an investment grade rating) or the Company’s life insurance subsidiary does not maintain a specific financial strength rating. If these termination provisions were to be triggered, the Company’s counterparty could require immediate settlement of any net liability position. As of December 31, 2019 and 2018 , the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $189 million and $171 million , respectively. The aggregate fair value of assets posted as collateral for such instruments as of December 31, 2019 and 2018 was $189 million and $170 million , respectively. If the credit contingent provisions of derivative contracts in a net liability position as of December 31, 2019 and 2018 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 nil and $1 million , respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation [Text Block] | Share-Based Compensation The Company’s share-based compensation plans consist of the Amended and Restated Ameriprise Financial 2005 Incentive Compensation Plan (the “2005 ICP”), the Ameriprise Financial 2008 Employment Incentive Equity Award Plan (the “2008 Plan”), the Ameriprise Financial Franchise Advisor Deferred Compensation Plan (“Franchise Advisor Deferral Plan”) and the Ameriprise Advisor Group Deferred Compensation Plan (“Advisor Group Deferral Plan”). The components of the Company’s share-based compensation expense, net of forfeitures, were as follows: December 31, 2019 2018 2017 (in millions) Stock option $ 31 $ 35 $ 32 Restricted stock 22 24 24 Restricted stock units 82 85 65 Liability awards 53 2 45 Total $ 188 $ 146 $ 166 For the years ended December 31, 2019 , 2018 and 2017 , total income tax benefit recognized by the Company related to share-based compensation expense was $40 million , $31 million and $58 million , respectively. As of December 31, 2019 , there was $124 million of total unrecognized compensation cost related to non-vested awards under the Company’s share-based compensation plans, which is expected to be recognized over a weighted-average period of 3.0 years . Amended and Restated Ameriprise Financial 2005 Incentive Compensation Plan The 2005 ICP, which was amended and approved by shareholders on April 30, 2014, provides for the grant of cash and equity incentive awards to directors, employees and independent contractors, including stock options, restricted stock awards, restricted stock units, stock appreciation rights, performance shares and similar awards designed to comply with the applicable federal regulations and laws of jurisdiction. Under the 2005 ICP, a maximum of 54.4 million shares may be issued. Of this total, no more than 4.5 million shares may be issued after April 30, 2014 for full value awards, which are awards other than stock options and stock appreciation rights. Shares issued under the 2005 ICP may be authorized and unissued shares or treasury shares. Ameriprise Financial 2008 Employment Incentive Equity Award Plan The 2008 Plan is designed to align employees’ interests with those of the shareholders of the Company and attract and retain new employees. The 2008 Plan provides for the grant of equity incentive awards to new employees, primarily those, who became employees in connection with a merger or acquisition, including stock options, restricted stock awards, restricted stock units, and other equity-based awards designed to comply with the applicable federal and foreign regulations and laws of jurisdiction. Under the 2008 Plan, a maximum of 6.0 million shares may be issued. Stock Options Stock options granted under the 2005 ICP and the 2008 Plan have an exercise price not less than 100% of the current fair market value of a share of the Company’s common stock on the grant date and a maximum term of 10 years . Stock options granted generally vest ratably over three to four years . Vesting of option awards may be accelerated based on age and length of service. Stock options granted are expensed on a straight-line basis over the vesting period based on the fair value of the awards on the date of grant. The grant date fair value of the options is calculated using a Black-Scholes option-pricing model. The following weighted average assumptions were used for stock option grants: 2019 2018 2017 Dividend yield 3.0 % 2.3 % 2.3 % Expected volatility 27 % 24 % 30 % Risk-free interest rate 2.4 % 2.4 % 1.9 % Expected life of stock option (years) 5.0 5.0 5.0 The dividend yield assumption represents the Company’s expected dividend yield based on its historical dividend payouts and management’s expectations. The expected volatility is based on the Company’s historical and implied volatilities. The risk-free interest rate for periods within the expected option life is based on the U.S. Treasury yield curve at the grant date. The expected life of the option is based on the Company’s past experience and other considerations. The weighted average grant date fair value for options granted during 2019 , 2018 and 2017 was $24.67 , $35.01 and $28.33 , respectively. A summary of the Company’s stock option activity for 2019 is presented below (shares and intrinsic value in millions): Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1 6.1 $ 115.73 6.7 $ 57 Granted 1.3 126.89 Exercised (1.0 ) 86.90 Forfeited (0.1 ) 148.23 Outstanding at December 31 6.3 122.12 6.6 292 Exercisable at December 31 4.0 111.32 5.5 227 The intrinsic value of a stock option is the amount by which the fair value of the underlying stock exceeds the exercise price of the option. The total intrinsic value of options exercised was $61 million , $58 million and $222 million during the years ended December 31, 2019 , 2018 and 2017 , respectively. Restricted Stock Awards Restricted stock awards granted under the 2005 ICP and 2008 Plan generally vest ratably over three to four years or at the end of five years . Compensation expense for restricted stock awards is based on the market price of Ameriprise Financial common stock on the date of grant and is amortized on a straight-line basis over the vesting period. Quarterly dividends are paid on restricted stock, as declared by the Company’s Board of Directors, during the vesting period and are not subject to forfeiture. Restricted Stock Units and Deferred Share Units The 2005 ICP provides for the grant of deferred share units to non-employee directors of the Company and the 2005 ICP and 2008 Plan provide for the grant of restricted stock units or deferred share units to employees. The director awards are fully vested upon issuance and are settled for Ameriprise Financial common stock upon the director’s termination of service. The employee awards generally vest ratably over three to four years . Compensation expense for deferred share units and restricted stock units is based on the market price of Ameriprise Financial stock on the date of grant. Restricted stock units and deferred stock units granted to employees are expensed on a straight-line basis over the vesting period or on an accelerated basis if certain age and length of service requirements are met. Deferred share units granted to non-employee directors are expensed immediately. Dividends are paid on restricted stock units, as declared by the Company’s Board of Directors, during the vesting period and are not subject to forfeiture. Dividend equivalents are issued on deferred share units, as dividends are declared by the Company's Board of Directors, and are not paid until distribution of the award. Dividend equivalents on the director awards are not subject to forfeiture, but on employee awards they are forfeited if the award is forfeited. Ameriprise Financial Deferred Compensation Plan The Ameriprise Financial Deferred Compensation Plan (“DCP”) under the 2005 ICP gives certain employees the choice to defer a portion of their eligible compensation, which can be invested in investment options as provided by the DCP, including the Ameriprise Financial Stock Fund. The DCP is an unfunded non-qualified deferred compensation plan under section 409A of the Internal Revenue Code. The Company provides a match on certain deferrals. Participant deferrals vest immediately and the Company match vests after three years. Distributions are made in shares of the Company’s common stock for the portion of the deferral invested in the Ameriprise Financial Stock Fund and the Company match, for which the Company has recorded in equity. The DCP does allow for accelerated vesting of the share-based awards in cases of death, disability and qualified retirement. Compensation expense related to the Company match is recognized on a straight-line basis over the vesting period or on an accelerated basis if certain age and length of service requirements are met. Dividend equivalents are issued on deferrals into the Ameriprise Financial Stock Fund and the Company match. Dividend equivalents related to deferrals are not subject to forfeiture, whereas dividend equivalents related to the Company match are subject to forfeiture until fully vested. Ameriprise Financial Franchise Advisor Deferral Plan The Franchise Advisor Deferral Plan gives certain advisors the choice to defer a portion of their commissions into Ameriprise Financial stock or other investment options. The Franchise Advisor Deferral Plan is an unfunded non-qualified deferred compensation plan under section 409A of the Internal Revenue Code. The Franchise Advisor Deferral Plan allows for the grant of share-based awards of up to 12.5 million shares of common stock. The number of units awarded is based on the performance measures, deferral percentage and the market value of Ameriprise Financial common stock on the deferral date as defined by the plan. Share-based awards are fully vested and are not subject to forfeitures. In addition to the voluntary deferral, certain advisors are eligible to earn additional deferred stock awards on commissions over a specified threshold or based on the success of the advisors they coach. The awards vest ratably over three or four years . The Franchise Advisor Deferral Plan allows for accelerated vesting of the share-based awards based on age and years as an advisor. Commission expense is recognized on a straight-line basis over the vesting period. Share units receive dividend equivalents, as dividends are declared by the Company’s Board of Directors, until distribution and are subject to forfeiture until vested. Ameriprise Advisor Group Deferred Compensation Plan The Advisor Group Deferral Plan, which was created in April 2009, allows for employee advisors to receive share-based bonus awards which are subject to future service requirements and forfeitures. The Advisor Group Deferral Plan is an unfunded non-qualified deferred compensation plan under section 409A of the Internal Revenue Code. The Advisor Group Deferral Plan also gives qualifying employee advisors the choice to defer a portion of their base salary or commissions. This deferral can be in the form of Ameriprise Financial stock or other investment options. Deferrals are not subject to future service requirements or forfeitures. Under the Advisor Group Deferral Plan, a maximum of 3.0 million shares may be issued. Awards granted under the Advisor Group Deferral Plan may be settled in cash and/or shares of the Company’s common stock according to the award’s terms. Share units receive dividend equivalents, as dividends are declared by the Company’s Board of Directors, until distribution and are subject to forfeiture until vested. Full Value Share Award Activity A summary of activity for the Company’s restricted stock awards, restricted stock units granted to employees (including advisors), compensation and commission deferrals into stock and deferred share units for 2019 is presented below (shares in millions): Shares Weighted Average Grant-date Fair Value Non-vested shares at January 1 1.1 $ 130.17 Granted 0.8 130.84 Deferred 0.2 140.57 Vested (0.8 ) 128.86 Forfeited (0.1 ) 131.47 Non-vested shares at December 31 1.2 133.40 The deferred shares in the table above primarily relate to franchise advisor voluntary deferrals of their commissions into Ameriprise Financial stock under the Franchise Advisor Deferral Plan that are fully vested at the deferral date. The fair value of full value share awards vested during the years ended December 31, 2019 , 2018 and 2017 was $107 million , $128 million and $97 million , respectively. The weighted average grant date fair value for restricted shares, restricted stock units and deferred share units during 2019 , 2018 and 2017 was $129.30 , $172.69 and $124.51 , respectively. The weighted average grant date fair value for franchise advisor and advisor group deferrals during 2019 , 2018 and 2017 was $136.81 , $144.37 and $134.58 , respectively. Performance Share Units Under the 2005 ICP, the Company’s Executive Leadership Team may be awarded a target number of performance share units (“PSUs”). PSUs will be earned only to the extent that the Company attains certain goals relating to the Company’s performance and relative total shareholder returns against peers over a three -year period. The awards also have a three -year service condition with cliff vesting with an accelerated service condition based on age and length of service. The actual number of PSUs ultimately earned could vary from zero , if performance goals are not met, to as much as 200% of the target for awards made prior to 2018 and 175% of the target for awards made in 2018 or later, if performance goals are significantly exceeded. The value of each target PSU is equal to the value of one share of Ameriprise Financial common stock. The total amount of target PSUs outstanding at the end of December 31, 2019 , 2018 and 2017 was 0.4 million , 0.3 million and 0.2 million , respectively. The PSUs are liability awards. During the years ended December 31, 2019 , 2018 and 2017 , the value of shares settled for PSU awards was $19 million , $16 million and $13 million , respectively. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity [Text Block] | Shareholders’ Equity The following tables provide the amounts related to each component of OCI: Year Ended December 31, 2019 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ 1,404 $ (309 ) $ 1,095 Reclassification of net (gains) losses on securities included in net income (2) 6 (1 ) 5 Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables (688 ) 144 (544 ) Net unrealized gains (losses) on securities 722 (166 ) 556 Net unrealized gains (losses) on derivatives: Reclassification of net (gains) losses on derivatives included in net income (3) (3 ) 1 (2 ) Net unrealized gains (losses) on derivatives (3 ) 1 (2 ) Defined benefit plans: Prior service credit 14 (3 ) 11 Net gain (loss) arising during the period (36 ) 7 (29 ) Defined benefit plans (22 ) 4 (18 ) Foreign currency translation 18 (1 ) 17 Total other comprehensive income (loss) $ 715 $ (162 ) $ 553 Year Ended December 31, 2018 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ (1,039 ) $ 237 $ (802 ) Reclassification of net (gains) losses on securities included in net income (2) (9 ) 2 (7 ) Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables 435 (91 ) 344 Net unrealized gains (losses) on securities (613 ) 148 (465 ) Defined benefit plans: Net gain (loss) arising during the period (30 ) 7 (23 ) Defined benefit plans (30 ) 7 (23 ) Foreign currency translation (32 ) 1 (31 ) Total other comprehensive income (loss) $ (675 ) $ 156 $ (519 ) Year Ended December 31, 2017 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ 243 $ (77 ) $ 166 Reclassification of net (gains) losses on securities included in net income (2) (55 ) 19 (36 ) Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables (180 ) 57 (123 ) Net unrealized gains (losses) on securities 8 (1 ) 7 Net unrealized gains (losses) on derivatives: Reclassification of net (gains) losses on derivatives included in net income (3) 5 (2 ) 3 Net unrealized gains (losses) on derivatives 5 (2 ) 3 Defined benefit plans: Prior service credit 2 (1 ) 1 Net gain (loss) arising during the period 38 (11 ) 27 Defined benefit plans 40 (12 ) 28 Foreign currency translation 74 (82 ) (4) (8 ) Other (1 ) — (1 ) Total other comprehensive income (loss) $ 126 $ (97 ) $ 29 (1) Includes OTTI losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period. (2) Reclassification amounts are recorded in net investment income. (3) Includes a $2 million , $2 million and $2 million pretax gain reclassified to interest and debt expenses and nil , a $2 million and $5 million pretax loss reclassified to net investment income for the years ended December 31, 2019 , 2018 and 2017 , respectively. (4) Includes an $87 million decrease to OCI related to deferred taxes on currency translations adjustments. Other comprehensive income (loss) related to net unrealized gains (losses) on securities 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 OTTI losses to credit losses; and (iii) other adjustments primarily consisting of changes in insurance and annuity asset and liability balances, such as DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates. The following table presents the changes in the balances of each component of AOCI, net of tax: Net Unrealized Gains (Losses) on Securities Net Unrealized Gains (Losses) on Derivatives Defined Benefit Plans Foreign Currency Translation Other Total (in millions) Balance, January 1, 2017 $ 479 (1) $ 5 $ (125 ) $ (159 ) $ — $ 200 OCI before reclassifications 43 — 20 (8 ) (1 ) 54 Amounts reclassified from AOCI (36 ) 3 8 — — (25 ) Total OCI 7 3 28 (8 ) (1 ) 29 Balance, December 31, 2017 486 (1) 8 (97 ) (167 ) (1 ) 229 Cumulative effect of adoption of equity securities guidance (1 ) — — — — (1 ) OCI before reclassifications (458 ) — (36 ) (31 ) — (525 ) Amounts reclassified from AOCI (7 ) — 13 — — 6 Total OCI (465 ) — (23 ) (31 ) — (519 ) Balance, December 31, 2018 20 (1) 8 (120 ) (198 ) (1 ) (291 ) OCI before reclassifications 551 — (28 ) 17 — 540 Amounts reclassified from AOCI 5 (2 ) 10 — — 13 Total OCI 556 (2 ) (18 ) 17 — 553 Balance, December 31, 2019 $ 576 (1) $ 6 $ (138 ) $ (181 ) $ (1 ) $ 262 (1) Includes $1 million , $1 million and $1 million of noncredit related impairments on securities and net unrealized gains (losses) on previously impaired securities as of December 31, 2019 , 2018 and 2017 , respectively. For the years ended December 31, 2019 , 2018 and 2017 , the Company repurchased a total of 13.4 million shares, 11.3 million shares and 9.9 million shares, respectively, of its common stock for an aggregate cost of $1.9 billion , $1.6 billion and $1.3 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, which was exhausted in the second quarter of 2019. In February 2019, the Company’s Board of Directors authorized an additional repurchase up to $2.5 billion of the Company’s common stock through March 31, 2021. As of December 31, 2019 , the Company had $1.1 billion remaining under its share repurchase authorization. The Company may also reacquire shares of its common stock under its share-based compensation plans related to restricted stock awards and certain option exercises. The holders of restricted shares may elect to surrender a portion of their shares on the vesting date to cover their income tax obligation. These vested restricted shares are reacquired by the Company and the Company’s payment of the holders’ income tax obligations are recorded as a treasury share purchase. For the years ended December 31, 2019 , 2018 and 2017 , the Company reacquired 0.3 million shares, 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 $34 million , $44 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 years ended December 31, 2019 , 2018 and 2017 , the Company reacquired 0.7 million shares, 0.5 million shares and 2.2 million shares, respectively, of its common stock through the net settlement of options for an aggregate value of $106 million , $85 million and $298 million , respectively. For the years ended December 31, 2019 , 2018 and 2017 , respectively, the Company reissued 0.7 million , 0.8 million and 0.8 million |
Earnings per Share Attributable
Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders | Earnings per Share The computations of basic and diluted earnings per share is as follows: Years Ended December 31, 2019 2018 2017 (in millions, except per share amounts) Numerator: Net income $ 1,893 $ 2,098 $ 1,480 Denominator: Basic: Weighted-average common shares outstanding 134.1 145.6 154.1 Effect of potentially dilutive nonqualified stock options and other share-based awards 1.9 2.1 2.6 Diluted: Weighted-average common shares outstanding 136.0 147.7 156.7 Earnings per share attributable to Ameriprise Financial, Inc. common shareholders: Basic $ 14.12 $ 14.41 $ 9.60 Diluted $ 13.92 $ 14.20 $ 9.44 The calculation of diluted earnings per share excludes the incremental effect of 1.0 million , 3.2 million and nil options as of December 31, 2019 , 2018 and 2017 , respectively, due to their anti-dilutive effect. |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Regulatory Requirements [Text Block] | Regulatory Requirements Restrictions on the transfer of funds exist under regulatory requirements applicable to certain of the Company’s subsidiaries. As of December 31, 2019 , the aggregate amount of unrestricted net assets was approximately $1.9 billion . The National Association of Insurance Commissioners (“NAIC”) defines Risk-Based Capital (“RBC”) requirements for insurance companies. The RBC requirements are used by the NAIC and state insurance regulators to identify companies that merit regulatory actions designed to protect policyholders. These requirements apply to the Company’s life insurance companies. The Company’s life insurance companies each met their respective minimum RBC requirements. The Company’s life insurance companies are required to prepare statutory financial statements in accordance with the accounting practices prescribed or permitted by the insurance departments of their respective states of domicile, which vary materially from GAAP. Prescribed statutory accounting practices include publications of the NAIC, as well as state laws, regulations and general administrative rules. The more significant differences from GAAP include charging policy acquisition costs to expense as incurred, establishing annuity and insurance reserves using different actuarial methods and assumptions, valuing investments on a different basis and excluding certain assets from the balance sheet by charging them directly to surplus, such as a portion of the net deferred income tax assets. RiverSource Life received approval from the Minnesota Department of Commerce to apply a permitted statutory accounting practice, effective July 1, 2017 through June 30, 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. The permitted practice allowed RiverSource Life to defer a portion of the change in fair value, net investment income and realized gains or losses generated from designated derivatives to the extent the amounts do not offset the current period interest-rate related change in the variable annuity statutory reserve liability. The deferred amount could be amortized over ten years using the straight-line method with the ability to accelerate amortization at management’s discretion. As of June 30, 2019, RiverSource Life elected to accelerate amortization of the net deferred amount associated with its permitted practice. State insurance statutes contain limitations as to the amount of dividends that insurers may make without providing prior notification to state regulators. For RiverSource Life, payments in excess of unassigned surplus, as determined in accordance with accounting practices prescribed by the State of Minnesota, require advance notice to the Minnesota Department of Commerce, RiverSource Life’s primary regulator, and are subject to potential disapproval. RiverSource Life’s statutory unassigned surplus aggregated $326 million and $642 million as of December 31, 2019 and 2018 , respectively. In addition, dividends whose fair market value, together with that of other dividends made within the preceding 12 months, exceed the greater of the previous year’s statutory net gain from operations or 10% of the previous year-end statutory capital and surplus are referred to as “extraordinary dividends.” Extraordinary dividends also require advance notice to the Minnesota Department of Commerce, and are subject to potential disapproval. Statutory capital and surplus for RiverSource Life was $2.9 billion and $3.3 billion as of December 31, 2019 and 2018 , respectively. Statutory net gain from operations and net income (loss) are summarized as follows: Years Ended December 31, 2019 2018 2017 (in millions) RiverSource Life Statutory net gain from operations $ 1,505 $ 1,686 $ 958 Statutory net income (loss) 786 1,628 222 Government debt securities of $4 million as of both December 31, 2019 and 2018 held by the Company’s life insurance subsidiaries were on deposit with various states as required by law. Ameriprise Certificate Company (“ACC”) is registered as an investment company under the Investment Company Act of 1940 (the “1940 Act”). ACC markets and sells investment certificates to clients. ACC is subject to various capital requirements under the 1940 Act, laws of the State of Minnesota and understandings with the Securities and Exchange Commission (“SEC”) and the Minnesota Department of Commerce. The terms of the investment certificates issued by ACC and the provisions of the 1940 Act also require the maintenance by ACC of qualified assets. Under the provisions of its certificates and the 1940 Act, ACC was required to have qualified assets (as that term is defined in Section 28(b) of the 1940 Act) in the amount of $7.5 billion and $7.9 billion as of December 31, 2019 and 2018 , respectively. ACC had qualified assets of $8.0 billion and $8.4 billion as of December 31, 2019 and 2018 , respectively. Ameriprise Financial and ACC entered into a Capital Support Agreement on March 2, 2009, pursuant to which Ameriprise Financial agrees to commit such capital to ACC as is necessary to satisfy applicable minimum capital requirements. Effective April 30, 2014, this agreement was amended to revise the maximum commitment to $50 million . For the years ended December 31, 2019 and 2018 , ACC did not draw upon the Capital Support Agreement and had met all applicable capital requirements. Threadneedle’s required capital is predominantly based on the requirements specified by its regulator, the Financial Conduct Authority (“FCA”), under its Capital Adequacy Requirements for asset managers. The Company has four broker-dealer subsidiaries as of December 31, 2019 , American Enterprise Investment Services Inc., Ameriprise Financial Services, LLC (previously Ameriprise Financial Services, Inc. until January 2020), RiverSource Distributors, Inc. and Columbia Management Investment Distributors, Inc. The broker-dealers are subject to the net capital requirements of the Financial Industry Regulatory Authority (“FINRA”) and the Uniform Net Capital requirements of the SEC under Rule 15c3-1 of the Securities Exchange Act of 1934. Ameriprise Trust Company is subject to capital adequacy requirements under the laws of the State of Minnesota as enforced by the Minnesota Department of Commerce. Ameriprise Bank, FSB (“Ameriprise Bank”) is subject to regulation by the Comptroller of Currency (“OCC”) and the Federal Deposit Insurance Corporation in its role as insurer of its deposits. Ameriprise Bank is required to maintain sufficient capital under specific capital rules in compliance with OCC regulations and polices, in addition to other rules and regulations governing all aspects of the banking business. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Text Block] | Income Taxes The components of income tax provision attributable to continuing operations were as follows: Years Ended December 31, 2019 2018 2017 (in millions) Current income tax Federal $ 531 $ 275 $ 468 State and local 80 45 58 Foreign 36 41 52 Total current income tax 647 361 578 Deferred income tax Federal (297 ) 20 169 State and local (13 ) 2 (5 ) Foreign 2 3 (8 ) Total deferred income tax (308 ) 25 156 Total income tax provision $ 339 $ 386 $ 734 On December 22, 2017, the Tax Act was signed into law. The provision for income taxes for the year ended December 31, 2017 included an expense of $286 million due to the enactment of the Tax Act. The $286 million expense included: 1) a $221 million expense for the remeasurement of deferred tax assets and liabilities to the Tax Act’s statutory rate of 21%; 2) a $57 million expense for the foreign provisions of the Tax Act, including a deemed repatriation tax of the Company’s total post-1986 earnings and profits (“E&P”); and 3) an $8 million expense for the remeasurement of tax contingencies, specifically state tax contingencies and interest accrued for tax contingencies. In 2018, the Company finalized its accounting related to the Tax Act and recorded a $3 million benefit related to foreign provisions. The geographic sources of pretax income from continuing operations were as follows: Years Ended December 31, 2019 2018 2017 (in millions) United States $ 2,045 $ 2,263 $ 1,988 Foreign 187 221 226 Total $ 2,232 $ 2,484 $ 2,214 The principal reasons that the aggregate income tax provision attributable to continuing operations is different from that computed by using the U.S. statutory rates of 21% for 2019 and 2018 and 35% for 2017 were as follows: Years Ended December 31, 2019 2018 2017 Tax at U.S. statutory rate 21.0 % 21.0 % 35.0 % Changes in taxes resulting from: Low income housing tax credits (3.6 ) (3.2 ) (3.4 ) State taxes, net of federal benefit 2.4 1.5 — Foreign tax credits, net of addback (2.2 ) (1.1 ) — Dividends received deduction (1.8 ) (1.6 ) (5.8 ) Impact of the Tax Act — — 13.0 Incentive compensation — — (3.0 ) Foreign taxes — — (2.0 ) Other, net (0.6 ) (1.1 ) (0.7 ) Income tax provision 15.2 % 15.5 % 33.1 % The decrease in the Company’s effective tax rate for the year ended December 31, 2018 compared to 2017 was primarily the result of the decrease in the federal statutory rate and a $286 million expense in 2017 due to provisions of the Tax Act, partially offset by lower levels of the dividends received deduction and a decrease in the benefit for net excess tax benefits related to employee share-based payments . Accumulated earnings of certain foreign subsidiaries, which totaled $17 million as of December 31, 2019 , are intended to be permanently reinvested outside the United States. The expected incremental tax expense on these earnings relates to potential unrecoverable foreign withholding taxes if the earnings are distributed. As of December 31, 2019, this potential future cost is estimated to be immaterial. Deferred income tax assets and liabilities result from temporary differences between the assets and liabilities measured for GAAP reporting versus income tax return purposes. Deferred income tax assets and liabilities are measured at the statutory rate of 21% as of both December 31, 2019 and 2018. The significant components of the Company’s deferred income tax assets and liabilities, which are included net within other assets or other liabilities on the Consolidated Balance Sheets, were as follows: December 31, 2019 2018 (in millions) Deferred income tax assets Liabilities for policyholder account balances, future policy benefits and claims $ 945 $ 725 Deferred compensation 406 329 Investment related 188 145 Right of use lease liability 59 — Postretirement benefits 45 44 Other 47 57 Gross deferred income tax assets 1,690 1,300 Less: valuation allowance 19 20 Total deferred income tax assets 1,671 1,280 Deferred income tax liabilities Deferred acquisition costs 456 437 Net unrealized gains on Available-for-Sale securities 186 30 Intangible assets 115 104 Depreciation expense 94 101 Goodwill 64 60 Right of use lease asset 54 — Deferred sales inducement costs 50 53 Other 6 6 Gross deferred income tax liabilities 1,025 791 Net deferred income tax assets $ 646 $ 489 Included in the Company’s deferred income tax assets are tax benefits primarily related to state net operating losses of $16 million , net of federal benefit, which will expire beginning December 31, 2020 . Based on analysis of the Company’s tax position, management believes it is more likely than not that the Company will not realize certain state net operating losses of $13 million , state deferred tax assets of $4 million and foreign deferred tax assets of $2 million ; therefore, a valuation allowance of $19 million has been established. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows: 2019 2018 2017 (in millions) Balance at January 1 $ 92 $ 76 $ 115 Additions based on tax positions related to the current year 15 22 16 Additions for tax positions of prior years 39 9 3 Reductions for tax positions of prior years (17 ) (3 ) (57 ) Audit settlements (29 ) (12 ) (1 ) Balance at December 31 $ 100 $ 92 $ 76 If recognized, approximately $67 million , $70 million and $58 million , net of federal tax benefits, of unrecognized tax benefits as of December 31, 2019 , 2018 , and 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 $40 million to $50 million in the next 12 months primarily due to Internal Revenue Service (“IRS”) settlements and state exams. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized a net decrease of $2 million , a net increase of $2 million , and nil in interest and penalties for the years ended December 31, 2019 , 2018 , and 2017 , respectively. As of December 31, 2019 and 2018 , the Company had a payable of $8 million and $10 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 third quarter of 2019, the federal statutes of limitation closed for the 2014 and 2015 tax years. The Company’s tax returns for 2014 and 2015 are effectively settled except for one issue which was claimed on amended returns filed in the second quarter of 2019. The IRS is currently auditing the Company’s U.S. income tax returns for 2016 and 2017. The Company’s state income tax returns are currently under examination by various jurisdictions for years ranging from 2009 through 2017. In the United Kingdom (“UK”), Her Majesty’s Revenue and Customs is performing a business risk review of the company’s UK subsidiaries for the 2016 tax year. |
Retirement Plans and Profit Sha
Retirement Plans and Profit Sharing Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Plans and Profit Sharing Arrangements [Text Block] | Retirement Plans and Profit Sharing Arrangements Defined Benefit Plans Pension Plans and Other Postretirement Benefits The Company’s U.S. non-advisor employees are generally eligible for the Ameriprise Financial Retirement Plan (the “Retirement Plan”), a noncontributory defined benefit plan which is a qualified plan under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). Funding of costs for the Retirement Plan complies with the applicable minimum funding requirements specified by ERISA and is held in a trust. The Retirement Plan is a cash balance plan by which the employees’ accrued benefits are based on notional account balances, which are maintained for each individual. Each pay period these balances are credited with an amount equal to a percentage of eligible compensation as defined by the Retirement Plan (which includes, but is not limited to, base pay, performance based incentive pay, commissions, shift differential and overtime). Prior to March 1, 2010, the percentage ranged from 2.5% to 10% based on employees’ age plus years of service. Effective March 1, 2010, the percentage ranges from 2.5% to 5% based on employees’ years of service. Employees eligible for the plan at the time of the change will continue to receive the same percentage they were receiving until the new schedule becomes more favorable. Employees’ balances are also credited with a fixed rate of interest that is updated each January 1 and is based on the average of the daily five -year U.S. Treasury Note yields for the previous October 1 through November 30, with a minimum crediting rate of 5% . Employees are fully vested after three years of service or upon retirement at or after age 65, disability or death while employed. Employees have the option to receive annuity payments or a lump sum payout of vested balance at termination or retirement. The Retirement Plan’s year-end is September 30. Effective April 2020, the Company will no longer enroll employees in the Retirement Plan. Instead, newly eligible employees will receive a company contribution to the Ameriprise Financial 401(k) Plan (the “401(k) Plan”). Active participants in the Retirement Plan as of April 2020 will continue to receive company allocations to the Retirement Plan each pay period. However, the company allocations to the Retirement Plan will not increase from the percentage received as of April 2020. These plan changes are reflected in the obligations disclosed as of December 31, 2019. In addition, the Company sponsors the Ameriprise Financial Supplemental Retirement Plan (the “SRP”), an unfunded non-qualified deferred compensation plan subject to Section 409A of the Internal Revenue Code. This plan is for certain highly compensated employees to replace the benefit that cannot be provided by the Retirement Plan due to IRS limits. The SRP generally parallels the Retirement Plan but offers different payment options. The Company also sponsors unfunded defined benefit postretirement plans that provide health care and life insurance to retired U.S. employees. On December 31, 2016, the access to retiree health care coverage was closed to all active employees who had previously met the qualification requirements. Instead, only existing retirees, as of January 1, 2017, qualifying for the plan and electing coverage will be provided a fixed amount to subsidize health care insurance purchased through other providers. Net periodic postretirement benefit costs were not material for the years ended December 31, 2019 , 2018 and 2017 . Most employees outside the U.S. are covered by local retirement plans, some of which are funded, while other employees receive payments at the time of retirement or termination under applicable labor laws or agreements. All components of the net periodic benefit cost are recorded in general and administrative expense and were as follows: Years Ended December 31, 2019 2018 2017 (in millions) Service cost $ 44 $ 48 $ 47 Interest cost 36 30 28 Expected return on plan assets (53 ) (48 ) (45 ) Amortization of prior service costs — — (1 ) Amortization of net loss 5 11 10 Other 8 5 3 Net periodic benefit cost $ 40 $ 46 $ 42 The prior service costs are amortized on a straight-line basis over the average remaining service period of active participants. Actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation or the market-related value of assets are amortized on a straight-line basis over the expected average remaining service period of active participants. The following table provides a reconciliation of changes in the benefit obligation: Pension Plans Other Postretirement Plans 2019 2018 2019 2018 (in millions) Benefit obligation, January 1 $ 967 $ 995 $ 14 $ 15 Service cost 44 48 — — Interest cost 36 30 — 1 Plan change (15 ) — — — Benefits paid (9 ) (9 ) (1 ) (1 ) Actuarial (gain) loss 131 (59 ) 1 (1 ) Curtailments (7 ) — — — Settlements (42 ) (29 ) — — Foreign currency rate changes 6 (9 ) — — Benefit obligation, December 31 $ 1,111 $ 967 $ 14 $ 14 The actuarial loss for pension plans for 2019 was primarily due to a decrease in the discount rate assumption as of December 31, 2019 compared to the prior year-end, as well as demographic experience during the Retirement Plan year. The actuarial gain for pension plans for 2018 was primarily due to an increase in the discount rate assumption as of December 31, 2018 compared to the prior year-end, partially offset by demographic experience during the Retirement Plan year. The following table provides a reconciliation of changes in the fair value of assets: Pension Plans 2019 2018 (in millions) Fair value of plan assets, January 1 $ 728 $ 748 Actual return on plan assets 130 (59 ) Employer contributions 24 86 Benefits paid (9 ) (9 ) Settlements (42 ) (29 ) Foreign currency rate changes 7 (9 ) Fair value of plan assets, December 31 $ 838 $ 728 The Company complies with the minimum funding requirements in all countries. The following table provides the amounts recognized in the Consolidated Balance Sheets as of December 31, which equal the funded status of the plans: Pension Plans Other Postretirement Plans 2019 2018 2019 2018 (in millions) Benefit liability $ (278 ) $ (256 ) $ (14 ) $ (14 ) Benefit asset 5 17 — — Net amount recognized $ (273 ) $ (239 ) $ (14 ) $ (14 ) The accumulated benefit obligation for all pension plans as of December 31, 2019 and 2018 was $1.1 billion and $905 million , respectively. The following table provides information for pension plans with benefit obligations in excess of plan assets: December 31, 2019 2018 (in millions) Pension plans with accumulated benefit obligations in excess of plan assets Accumulated benefit obligation $ 875 $ 762 Fair value of plan assets 644 559 Pension plans with projected benefit obligations in excess of plan assets Projected benefit obligation $ 922 $ 815 Fair value of plan assets 644 559 The weighted average assumptions used to determine benefit obligations were as follows: Pension Plans Other Postretirement Plans 2019 2018 2019 2018 Discount rates 2.97 % 4.01 % 2.99 % 4.11 % Rates of increase in compensation levels 4.01 4.25 N/A N/A Interest crediting rates for cash balance plans 5.00 5.00 N/A N/A The weighted average assumptions used to determine net periodic benefit cost of pension plans were as follows: 2019 2018 2017 Discount rates 4.00 % 3.30 % 3.64 % Rates of increase in compensation levels 4.25 4.29 4.39 Expected long-term rates of return on assets 7.18 7.11 7.13 Interest crediting rates for cash balance plans 5.00 5.00 5.00 In developing the expected long-term rate of return on assets, management evaluated input from an external consulting firm, including their projection of asset class return expectations and long-term inflation assumptions. The Company also considered historical returns on the plans’ assets. Discount rates are based on yields available on high-quality corporate bonds that would generate cash flows necessary to pay the benefits when due. The Company’s pension plans’ assets are invested in an aggregate diversified portfolio to minimize the impact of any adverse or unexpected results from a security class on the entire portfolio. Diversification is interpreted to include diversification by asset type, performance and risk characteristics and number of investments. When appropriate and consistent with the objectives of the plans, derivative instruments may be used to mitigate risk or provide further diversification, subject to the investment policies of the plans. Asset classes and ranges considered appropriate for investment of the plans’ assets are determined by each plan’s investment committee. The target allocations are 70% equity securities, 20% debt securities and 10% all other types of investments, except for the assets in pooled pension funds which are 83% equity securities and 17% debt securities and additional voluntary contribution assets outside the U.S. which are allocated at the discretion of the individual and will be converted at retirement into the defined benefit pension plan. Actual allocations will generally be within 5% of these targets. As of December 31, 2019 , there were no significant holdings of any single issuer and the exposure to derivative instruments was not significant. The following tables present the Company’s pension plan assets measured at fair value on a recurring basis: Asset Category December 31, 2019 Level 1 Level 2 Level 3 Total (in millions) Equity securities: U.S. large cap stocks $ 119 $ — $ — $ 119 U.S. small cap stocks 91 — — 91 Non-U.S. large cap stocks 32 — — 32 Debt securities: U.S. investment grade bonds 43 24 — 67 U.S. high yield bonds 6 — — 6 Non-U.S. investment grade bonds 16 — — 16 Cash equivalents at NAV 30 (1) Collective investment funds at NAV 232 (1) Real estate investment trusts at NAV 20 (1) Hedge funds at NAV 29 (1) Pooled pension funds at NAV 196 (1) Total $ 307 $ 24 $ — $ 838 Asset Category December 31, 2018 Level 1 Level 2 Level 3 Total (in millions) Equity securities: U.S. large cap stocks $ 90 $ — $ — $ 90 U.S. small cap stocks 70 — — 70 Non-U.S. large cap stocks 25 — — 25 Non-U.S. small cap stocks 22 — — 22 Debt securities: U.S. investment grade bonds 39 23 — 62 U.S. high yield bonds 5 — — 5 Non-U.S. investment grade bonds 15 — — 15 Cash equivalents at NAV 36 (1) Collective investment funds at NAV 188 (1) Real estate investment trusts at NAV 19 (1) Hedge funds at NAV 27 (1) Pooled pension funds at NAV 169 (1) Total $ 266 $ 23 $ — $ 728 (1) Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. Equity securities are managed to track the performance of common market indices for both U.S. and non-U.S. securities, primarily across large cap, small cap and emerging market asset classes. Debt securities are managed to track the performance of common market indices for both U.S. and non-U.S. investment grade bonds as well as a pool of U.S. high yield bonds. Collective investment funds include equity and debt securities. Real estate funds are managed to track the performance of a broad population of investment grade non-agricultural income producing properties. The Company’s investments in hedge funds include investments in a multi-strategy fund and an off-shore fund managed to track the performance of broad fund of fund indices. Pooled pension funds are managed to track a specific benchmark based on the investment objectives of the fund. Cash equivalents consist of holdings in a money market fund that seeks to equal the return of the three month U.S. Treasury bill. The fair value of equity securities using quoted prices in active markets is classified as Level 1. Level 1 debt securities include U.S. Treasuries and actively traded mutual funds. Level 2 debt securities include mortgage and asset backed securities, agency securities and corporate debt securities. The fair value of the Level 2 securities is determined based on a market approach using observable inputs. The amounts recognized in AOCI, net of tax, as of December 31, 2019 but not recognized as components of net periodic benefit cost included an unrecognized actuarial loss of $151 million , an unrecognized prior service credit of $11 million , and a currency exchange rate adjustment of $2 million related to the Company’s pension plans. The Company’s other postretirement plans included an unrecognized actuarial gain of $3 million and an unrecognized prior service credit of $1 million . See Note 21 for a rollforward of AOCI related to the Company’s defined benefit plans. The Company’s pension plans expect to make benefit payments to retirees as follows: Pension Plans Other Postretirement Plans (in millions) 2020 $ 86 $ 1 2021 62 1 2022 67 1 2023 83 1 2024 72 1 2025-2029 381 5 The Company expects to contribute $16 million and $1 million to its pension plans and other postretirement plans, respectively, in 2020 . Defined Contribution Plans The Company’s employees are generally eligible to participate in the 401(k) Plan. The 401(k) Plan allows eligible employees to make contributions through payroll deductions up to IRS limits and invest their contributions in one or more of the 401(k) Plan investment options, which include the Ameriprise Financial Stock Fund. The Company provides a dollar for dollar match up to the first 5% of eligible compensation an employee contributes on a pretax and/or Roth 401(k) basis for each annual period. Effective April 2020, employees not eligible to participate in the Retirement Plan will receive a 2% company contribution to their 401(k) Plan once they become eligible for contributions. Under the 401(k) Plan, employees become eligible for contributions under the plan during the pay period they reach 60 days of service. Match contributions are fully vested after five years of service, vesting ratably over the first five years of service, or upon retirement at or after age 65, disability or death while employed. The Company’s defined contribution plan expense was $56 million , $56 million and $49 million in 2019 , 2018 and 2017 , respectively. Employees outside the U.S. who are not covered by the 401(k) may be covered by local defined contribution plans which are subject to applicable laws and rules of the country where the plan is administered. The Company’s expense related to defined contribution plans outside the U.S. was $6 million , $6 million and $5 million in 2019 , 2018 and 2017 |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies Commitments, Guarantees and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Contingencies and Guarantees [Text Block] | Commitments, Guarantees and Contingencies Commitments The following table presents the Company’s funding commitments as of December 31: 2019 2018 (in millions) Commercial mortgage loans $ 60 $ 57 Affordable housing and other real estate partnerships 22 59 Private funds 12 — Consumer lines of credit 1 1 Total funding commitments $ 95 $ 117 Guarantees The Company’s life and annuity products all have minimum interest rate guarantees in their fixed accounts. As of December 31, 2019 , t hese guarantees range from 1% to 5% . Contingencies The Company and its subsidiaries are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection with the conduct of its activities 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 legal proceedings arising out of its general business activities, such as its investments, contracts, leases and employment relationships. Uncertain economic conditions, heightened and sustained volatility in the financial markets and significant financial reform legislation may increase the likelihood that clients and other persons or regulators may present or threaten legal claims or that regulators increase the scope or frequency of examinations of the Company or the financial services industry generally. As with other financial services firms, the level of regulatory activity and inquiry concerning the Company’s businesses remains elevated. From time to time, the Company receives requests for information from, and/or has been subject to examination or claims by, the SEC, the Financial Industry Regulatory Authority, the OCC, the UK Financial Conduct Authority, the FRB, 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 typically 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 and other associated persons; 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 are subject to uncertainties and, as such, it is inherently difficult to determine whether any loss is probable or even reasonably possible, or to reasonably estimate the amount of any loss. The Company cannot predict with certainty if, how or when any such proceedings will be initiated or resolved. Matters frequently need to be more developed before a loss or range of loss can be reasonably estimated for any proceeding. An adverse outcome in one or more 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. The Company discloses the nature of the contingency when management believes there is at least a reasonable possibility that the outcome may be material to the Company’s consolidated financial statements and, where feasible, an estimate of the possible loss. In such cases, there still may be an exposure to loss in excess of any amounts reasonably estimated and accrued. When a loss contingency is not both probable and reasonably estimable, the Company does not establish an accrued liability, but continues to monitor, in conjunction with any outside counsel handling a matter, further developments that would make such loss contingency both probable and reasonably estimable. Once the Company establishes an accrued liability with respect to a loss contingency, the Company continues to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established, and any appropriate adjustments are made each quarter. Guaranty Fund Assessments RiverSource Life 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 both December 31, 2019 and 2018 , the estimated liability was $12 million . As of December 31, 2019 and 2018 , the related premium tax asset was $10 million and $11 million , respectively. The expected period over which guaranty fund assessments will be made and the related tax credits recovered is not known. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions [Text Block] | Related Party Transactions The Company may engage in transactions in the ordinary course of business with significant shareholders or their subsidiaries, between the Company and its directors and officers or with other companies whose directors or officers may also serve as directors or officers for the Company or its subsidiaries. The Company carries out these transactions on customary terms. The Company’s executive officers and directors may have transactions with the Company or its subsidiaries involving financial products and insurance services. All obligations arising from these transactions are in the ordinary course of the Company’s business and are on the same terms in effect for comparable transactions with the general public. Such obligations involve normal risks of collection and do not have features or terms that are unfavorable to the Company or its subsidiaries. These transactions have not had a material impact on the Company’s consolidated results of operations or financial condition. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
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. The accounting policies of the segments are the same as those of the Company, except for operating adjustments defined below, the method of capital allocation, the accounting for gains (losses) from intercompany revenues and expenses and not providing for income taxes on a segment basis. The largest source of intersegment revenues and expenses is retail distribution services, where segments are charged transfer pricing rates that approximate arm’s length market prices for distribution through the Advice & Wealth Management segment. The Advice & Wealth Management segment provides distribution services for affiliated and non-affiliated products and services. The Asset Management segment provides investment management services for the Company’s owned assets and client assets, and accordingly charges investment and advisory management fees to the other segments. All intersegment activity is eliminated in the Company’s consolidated results. All costs related to shared services are allocated to the segments based on a rate times volume or fixed basis. The Advice & Wealth Management segment provides financial planning and advice, as well as full-service brokerage services, primarily to retail clients through the Company’s advisors. These services are centered on long-term, personal relationships between the Company’s advisors and its clients and focus on helping clients achieve their financial goals. The Company’s advisors provide a distinctive approach to financial planning and have access to a broad selection of both affiliated and non-affiliated products to help clients meet their financial needs and goals. A significant portion of revenues in this segment are fee-based and driven by the level of client assets, which is impacted by both market movements and net asset flows. The Company also earns net investment income on owned assets primarily from certificate and banking products. This segment earns revenues (distribution fees) for distributing non-affiliated products and intersegment revenues (distribution fees) for distributing the Company’s affiliated products and services provided to its retail clients. Intersegment expenses for this segment include expenses for investment management services provided by the Asset Management segment. The Asset Management segment provides investment management, advice and products to retail, high net worth and institutional clients on a global scale through the Columbia Threadneedle Investments ® brand, which represents the combined capabilities, resources and reach of Columbia Management Investment Advisers, LLC (“Columbia Management”) and Threadneedle. Columbia Management primarily provides products and services in the U.S. and Threadneedle primarily provides products and services internationally. The Company offers U.S. retail clients with a range of products through both unaffiliated third party financial institutions and the Advice & Wealth Management segment. The Company provides institutional products and services through its institutional sales force. Retail products for non-U.S. investors are primarily distributed through third-party financial institutions and unaffiliated financial advisors. Retail products include U.S. mutual funds and their non-U.S. equivalents, exchange-traded funds and variable product funds underlying insurance and annuity separate accounts. Institutional asset management services are designed to meet specific client objectives and may involve a range of products, including those that focus on traditional asset classes, separately managed accounts, individually managed accounts, CLOs, hedge fund or alternative strategies, collective funds and property funds. CLOs, hedge fund or alternative strategies and certain private funds are often classified as alternative assets. Revenues in this segment are primarily earned as fees based on managed asset balances, which are impacted by market movements, net asset flows, asset allocation and product mix. The Company may also earn performance fees from certain accounts where investment performance meets or exceeds certain pre-identified targets. The Asset Management segment also provides intercompany asset management services for Ameriprise Financial subsidiaries. The fees for all such services are reflected within the Asset Management segment results through intersegment transfer pricing. Intersegment expenses for this segment include distribution expenses for services provided by the Advice & Wealth Management and Annuities and Protection segments. The Annuities segment provides variable and fixed annuity products of RiverSource Life companies to individual clients. The Company provides variable and fixed annuity products through its advisors. Revenues for the Company’s variable annuity products are primarily earned as fees based on underlying account balances, which are impacted by both market movements and net asset flows. Revenues for the Company’s fixed deferred annuity products are primarily earned as net investment income on the RiverSource Life companies’ general account assets supporting fixed account balances, with profitability significantly impacted by the spread between net investment income earned and interest credited on the fixed account balances. The Company also earns net investment income on general account assets supporting reserves for immediate annuities with a non-life contingent feature and for certain guaranteed benefits offered with variable annuities and on capital supporting the business. Revenues for the Company’s immediate annuities with a life contingent feature are earned as premium revenue. Intersegment revenues for this segment reflect fees paid by the Asset Management segment for marketing support and other services provided in connection with the availability of variable insurance trust funds (“VIT Funds”) under the variable annuity contracts. Intersegment expenses for this segment include distribution expenses for services provided by the Advice & Wealth Management segment, as well as expenses for investment management services provided by the Asset Management segment. The Protection segment offers a variety of products to address the protection and risk management needs of the Company’s retail clients including life and DI insurance. Life and DI products are primarily provided through the Company’s advisors. The Company issues insurance policies through its RiverSource life insurance subsidiaries. The primary sources of revenues for this segment are premiums, fees and charges that the Company receives to assume insurance-related risk. The Company earns net investment income on owned assets supporting insurance reserves and capital supporting the business. The Company also receives fees based on the level of the RiverSource Life companies’ separate account assets supporting VUL investment options. This segment earns intersegment revenues from fees paid by the Asset Management segment for marketing support and other services provided in connection with the availability of VIT Funds under the VUL contracts. Intersegment expenses for this segment include distribution expenses for services provided by the Advice & Wealth Management segment, as well as expenses for investment management services provided by the Asset Management segment. The Corporate & Other segment consists of net investment income or loss on corporate level assets, including excess capital held in the Company’s subsidiaries and other unallocated equity and other revenues as well as unallocated corporate expenses. The Corporate & Other segment also includes the results of the Company’s closed block long term care business. The Corporate & Other segment also includes revenues and expenses of consolidated investment entities, which are excluded on an operating basis. Beginning in the first quarter of 2019, the results of AAH, which had been reported as part of the Protection segment, were reflected in the Corporate & Other segment. Prior periods presented have been restated to reflect the change. The Company sold AAH on October 1, 2019. 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. Effective first quarter of 2019, management has excluded mean reversion related impacts from the Company’s adjusted operating measures. Prior periods have been updated to reflect this change to be consistent with the current period presentation. The mean reversion related impact is defined as the impact on variable annuity and VUL products for the difference between assumed and updated separate account investment performance on DAC, DSIC, unearned revenue amortization, reinsurance accrual and additional insurance benefit reserves. 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), mean reversion related impacts, integration and restructuring charges, gain or loss on disposal of a business that is not considered discontinued operations, results of discontinued operations 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: December 31, 2019 2018 (in millions) Advice & Wealth Management $ 17,607 $ 14,480 Asset Management 8,226 7,558 Annuities 98,195 88,771 Protection 16,980 17,126 Corporate & Other 10,820 9,281 Total assets $ 151,828 $ 137,216 Years Ended December 31, 2019 2018 2017 (in millions) Adjusted operating net revenues: Advice & Wealth Management $ 6,599 $ 6,189 $ 5,616 Asset Management 2,913 3,011 3,072 Annuities 2,459 2,476 2,499 Protection 1,047 1,096 983 Corporate & Other 1,094 1,336 1,234 Less: Eliminations (1) 1,402 1,414 1,411 Total segment adjusted operating net revenues 12,710 12,694 11,993 Net realized gains (losses) (6 ) 10 46 Revenue attributable to consolidated investment entities 88 127 94 Market impact on IUL benefits, net — (7 ) 1 Market impact of hedges on investments (35 ) 11 (2 ) Integration and restructuring charges (3 ) — — Gain on disposal of business 213 — — Total net revenues per consolidated statements of operations $ 12,967 $ 12,835 $ 12,132 (1) Represents the elimination of intersegment revenues recognized for the years ended December 31, 2019 , 2018 and 2017 in each segment as follows: Advice and Wealth Management ( $924 , $952 and $953 , respectively); Asset Management ( $55 , $50 and $47 , respectively); Annuities ( $367 , $356 and $351 , respectively); Protection ( $62 , $61 and $62 , respectively); and Corporate & Other ( $(6) , $(5) and $(2) , respectively). Years Ended December 31, 2019 2018 2017 (in millions) Adjusted operating earnings: Advice & Wealth Management $ 1,509 $ 1,389 $ 1,163 Asset Management 661 728 740 Annuities 497 496 629 Protection 261 255 256 Corporate & Other (320 ) (304 ) (468 ) Total segment adjusted operating earnings 2,608 2,564 2,320 Net realized gains (losses) (4 ) 9 44 Net income (loss) attributable to consolidated investment entities 1 (1 ) 2 Market impact on variable annuity guaranteed benefits, net (579 ) (31 ) (232 ) Market impact on IUL benefits, net (12 ) (17 ) 4 Market impact on fixed annuity benefits — 1 — Mean reversion related impacts 57 (33 ) 83 Market impact of hedges on investments (35 ) 11 (2 ) Integration and restructuring charges (17 ) (19 ) (5 ) Gain on disposal of business 213 — — Pretax income per consolidated statements of operations $ 2,232 $ 2,484 $ 2,214 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) [Text Block] | Quarterly Financial Data (Unaudited) 2019 2018 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31 (in millions, except per share data) Net revenues $ 3,287 $ 3,317 $ 3,245 $ 3,118 $ 3,179 $ 3,292 $ 3,196 $ 3,168 Pretax income 534 641 587 470 652 588 548 696 Net income 463 543 492 395 539 503 462 594 Earnings per share: Basic $ 3.59 $ 4.09 $ 3.61 $ 2.85 $ 3.81 $ 3.48 $ 3.14 $ 3.97 Diluted $ 3.53 $ 4.04 $ 3.57 $ 2.82 $ 3.76 $ 3.43 $ 3.10 $ 3.91 Weighted average common shares outstanding: Basic 129.0 132.7 136.1 138.8 141.5 144.4 147.0 149.5 Diluted 131.3 134.5 138.0 140.1 143.2 146.5 149.0 152.1 Cash dividends declared per common share $ 0.97 $ 0.97 $ 0.97 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.83 |
SCHEDULE I - CONDENSED FINANCIA
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Parent Company Only) | Schedule I — Condensed Financial Information of Registrant (Parent Company Only) Years Ended December 31, 2019 2018 2017 (in millions) Revenues Management and financial advice fees $ (1 ) $ (1 ) $ (1 ) Net investment income 9 34 11 Other revenues 14 4 8 Gain on disposal of business 213 — — Total revenues 235 37 18 Banking and deposit interest expense 9 7 5 Total net revenues 226 30 13 Expenses Benefits, claims, losses and settlement expenses 49 4 76 Distribution expenses 24 4 18 Interest and debt expense 126 120 116 General and administrative expense 244 210 246 Total expenses 443 338 456 Pretax loss before equity in earnings of subsidiaries (217 ) (308 ) (443 ) Income tax benefit (38 ) (73 ) (47 ) Loss before equity in earnings of subsidiaries (179 ) (235 ) (396 ) Equity in earnings of subsidiaries 2,072 2,333 1,876 Net income 1,893 2,098 1,480 Other comprehensive income (loss), net of tax 553 (519 ) 29 Total comprehensive income $ 2,446 $ 1,579 $ 1,509 See Notes to Condensed Financial Information of Registrant. Schedule I — Condensed Financial Information of Registrant (Parent Company Only) December 31, 2019 2018 (in millions, except share amounts) Assets Cash and cash equivalents $ 730 $ 476 Investments 1,430 467 Loans to subsidiaries 361 372 Due from subsidiaries 305 288 Receivables 5 5 Land, buildings, equipment, and software, net of accumulated depreciation of $952 and $1,168, respectively 207 237 Investments in subsidiaries 6,665 7,231 Other assets 1,136 1,209 Total assets $ 10,839 $ 10,285 Liabilities and Shareholders’ Equity Liabilities: Accounts payable and accrued expenses $ 797 $ 636 Due to subsidiaries 137 146 Borrowings from subsidiaries 401 346 Long-term debt 3,097 2,867 Other liabilities 678 702 Total liabilities 5,110 4,697 Shareholders’ Equity: Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 329,842,827 and 328,537,214, respectively) 3 3 Additional paid-in capital 8,461 8,260 Retained earnings 14,279 12,909 Treasury shares, at cost (205,903,593 and 192,206,467 shares, respectively) (17,276 ) (15,293 ) Accumulated other comprehensive income (loss), net of tax, including amounts applicable to equity investments in subsidiaries 262 (291 ) Total shareholders’ equity 5,729 5,588 Total liabilities and equity $ 10,839 $ 10,285 See Notes to Condensed Financial Information of Registrant. Schedule I — Condensed Financial Information of Registrant Condensed Statements of Cash Flows (Parent Company Only) Years Ended December 31, 2019 2018 2017 (in millions) Cash Flows from Operating Activities Net income $ 1,893 $ 2,098 $ 1,480 Equity in earnings of subsidiaries (2,072 ) (2,333 ) (1,876 ) Dividends received from subsidiaries 2,721 2,093 1,589 Gain on disposal of business before affinity partner payment (313 ) — — Other operating activities, primarily with subsidiaries 596 57 712 Net cash provided by operating activities 2,825 1,915 1,905 Cash Flows from Investing Activities Available-for-Sale securities: Maturities, sinking fund payments and calls 204 94 44 Purchases (1,153 ) (222 ) (77 ) Proceeds from sale of other investments 6 — 3 Purchase of other investments (12 ) — — Purchase of land, buildings, equipment and software (42 ) (62 ) (69 ) Proceeds from disposal of business 1,138 — — Contributions to subsidiaries (368 ) (73 ) (79 ) Return of capital from subsidiaries 18 454 47 Repayment of loans to subsidiaries 2,468 1,623 1,277 Issuance of loans to subsidiaries (2,457 ) (1,768 ) (1,337 ) Other, net (65 ) 2 (91 ) Net cash provided by investing activities (263 ) 48 (282 ) Cash Flows from Financing Activities Dividends paid to shareholders (504 ) (506 ) (491 ) Repurchase of common shares (1,943 ) (1,630 ) (1,485 ) Cash paid for purchased options with deferred premiums (107 ) (20 ) (19 ) Issuance of long-term debt, net of issuance costs 497 — — Repayments of long-term debt (313 ) (13 ) (11 ) Borrowings from subsidiaries 132 472 124 Repayments of borrowings from subsidiaries (79 ) (273 ) (15 ) Exercise of stock options 3 2 15 Other, net 6 (13 ) (1 ) Net cash used in financing activities (2,308 ) (1,981 ) (1,883 ) Net increase (decrease) in cash and cash equivalents 254 (18 ) (260 ) Cash and cash equivalents at beginning of year 476 494 754 Cash and cash equivalents at end of year $ 730 $ 476 $ 494 Supplemental Disclosures: Interest paid on debt $ 123 $ 126 $ 128 Income taxes paid (received), net (109 ) (27 ) (368 ) Non-cash dividends from subsidiaries 81 195 109 See Notes to Condensed Financial Information of Registrant. Schedule I — Condensed Financial Information of Registrant Notes to Condensed Financial Information of Registrant (Parent Company Only) 1. Basis of Presentation The accompanying Condensed Financial Statements include the accounts of Ameriprise Financial, Inc. (the “Parent Company”) and, on an equity basis, its subsidiaries and affiliates. The financial statements have been prepared in accordance with U.S. generally accepted accounting principles. The financial information of the Parent Company should be read in conjunction with the Consolidated Financial Statements and Notes of Ameriprise Financial. Parent Company revenues and expenses, other than compensation and benefits and debt and interest expense, are primarily related to intercompany transactions with subsidiaries and affiliates. The change in the fair value of derivative instruments used as hedges is reflected in the Parent Company Only Condensed Statements of Operations. For certain of these derivatives, the change in the hedged item is reflected in the subsidiaries’ Statements of Operations. The change in fair value of certain derivatives used to economically hedge risk related to GMWB provisions is included in benefits, claims, losses and settlement expenses, while the underlying benefits, claims, losses and settlement expenses are reflected in equity in earnings of subsidiaries. 2. Investments In December 2018, the Parent Company invested in the residual tranche of an asset backed security structure issued by Ameriprise Advisor Financing, LLC, a subsidiary of the Parent Company. The asset backed securities are collateralized by a portfolio of loans issued to advisors affiliated with AFS, a subsidiary of the Parent Company. The fair value of the residual tranche was $94 million and $90 million as of December 31, 2019 and 2018 , respectively, and is reported in Investments on the Parent Company’s Condensed Balance Sheets. For the year ended December 31, 2019, interest income was $6 million and is reported in Net investment income on the Parent Company’s Condensed Statements of Operations. 3. Debt All of the debt of Ameriprise Financial is borrowings of the Parent Company, except as indicated below. • As of December 31, 2018, the debt of Ameriprise Financial included $50 million of repurchase agreements, which were accounted for as secured borrowings. • As of December 31, 2019 and 2018 , Ameriprise Financial had $200 million and $150 million , respectively, of borrowings from the Federal Home Loan Bank of Des Moines, which is collateralized with commercial mortgage backed securities and residential mortgage backed securities . 4. Borrowings from Subsidiaries The Parent Company has intercompany lending arrangements with its subsidiaries. At the end of each business day, taking into consideration all legal and regulatory requirements associated with its subsidiaries, the Parent Company is entitled to draw on all funds in specified bank accounts. Repayment of all or a portion of the funds is due on demand. The Parent Company also has revolving credit agreements with its subsidiaries as the borrower aggregating $1.3 billion and $1.2 billion as of December 31, 2019 and 2018 , respectively, of which $50 million and nil was outstanding as of December 31, 2019 and 2018 , respectively. 5. Guarantees, Commitments and Contingencies The Parent Company is the guarantor for operating leases of certain subsidiaries. All consolidated legal, regulatory and arbitration proceedings, including class actions of Ameriprise Financial, Inc. and its consolidated subsidiaries are potential or current obligations of the Parent Company. The Parent Company has committed revolving credit agreements with its subsidiaries as the lender aggregating $364 million as of December 31, 2019 . The Parent Company and Ameriprise Certificate Company (“ACC”) entered into a Capital Support Agreement on March 2, 2009, pursuant to which the Parent Company agrees to commit such capital to ACC as is necessary to satisfy applicable minimum capital requirements. Effective April 30, 2014, this agreement was amended to revise the maximum commitment to $50 million . For the years ended December 31, 2019 , 2018 and 2017 , ACC did not draw upon the Capital Support Agreement and had met all applicable capital requirements. Ameriprise Financial Services, LLC (“AFS”) (previously Ameriprise Financial Services, Inc.) entered into a FINRA approved subordinated loan agreement with the Parent Company on December 15, 2014 for regulatory net capital purposes. The agreement consists of a $200 million secured demand note. The note is secured by cash and securities equal to the principal value of the note pledged by the Parent Company. For the year ended December 31, 2019 , AFS had not made a demand of the principal amount. Ameriprise Enterprise Investment Services, Inc. (“AEIS”) entered into a FINRA approved subordinated loan agreement with the Parent Company on January 25, 2017 for regulatory net capital purposes. Under this agreement, AEIS borrowed $60 million |
Leases Leases
Leases Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Leases The following table presents the balances for operating and finance ROU assets and lease liabilities: Leases Balance Sheet Classification December 31, 2019 Assets Operating lease assets Other assets $ 215 Finance lease assets Other assets 52 Total lease assets $ 267 Liabilities Operating lease liabilities Other liabilities $ 243 Finance lease liabilities Long-term debt 57 Total lease liabilities $ 300 The components of lease expense include operating and finance lease costs. For the year ended December 31, 2019 , operating lease costs were $58 million . For the year ended December 31, 2019 , finance lease costs consisted of $8 million in amortization and $2 million of interest expense. Amortization is recorded in general and administrative expenses and interest expense is recorded in interest and debt expense in the Consolidated Statements of Operations. Maturities of lease liabilities, weighted-average remaining term and weighted-average discount rate are as follows: Maturity of Lease Liabilities December 31, 2019 Finance Leases Operating Leases (in millions) 2020 $ 14 $ 55 2021 10 50 2022 10 42 2023 10 35 2024 10 24 Thereafter 9 63 Total lease payments 63 269 Less: Interest (6 ) (26 ) Present value of lease liabilities $ 57 $ 243 Weighted-average remaining lease term (years) 5.8 6.1 Weighted-average discount rate 3.4 % 3.0 % Maturities of lease liabilities prior to the adoption of new lease guidance were as follows: Maturity of Lease Liabilities December 31, 2018 Operating Leases (in millions) 2019 $ 61 2020 53 2021 40 2022 33 2023 26 Thereafter 65 Total lease payments $ 278 For the year ended December 31, 2019 , operating cash flows included $62 million of cash paid for amounts included in the measurement of operating lease liabilities and $2 million of cash paid for amounts included in the measurement of finance lease liabilities. For the year ended December 31, 2019 , financing cash flows included $13 million |
Disposal of Business Disposal o
Disposal of Business Disposal of Business | 12 Months Ended |
Dec. 31, 2019 | |
Disposal of business [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Disposal of Business On October 1, 2019, the Company completed the sale of AAH to American Family Insurance Mutual Holding Company (American Family Insurance). The Company received gross proceeds of $1.1 billion in cash at closing. After a payment to an affinity partner, the net proceeds were $1.0 billion . The Company recognized a gain on disposal of $213 million in the fourth quarter of 2019, which is net of the $100 million |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation A VIE is an entity that either has equity investors that lack certain essential characteristics of a controlling financial interest (including substantive voting rights, the obligation to absorb the entity’s losses, or the rights to receive the entity’s returns) or has equity investors that do not provide sufficient financial resources for the entity to support its activities. Voting interest entities (“VOEs”) are those entities that do not qualify as a VIE. The Company consolidates VOEs in which it holds a greater than 50% voting interest. The Company generally accounts for entities using the equity method when it holds a greater than 20% but less than 50% voting interest or when the Company exercises significant influence over the entity. All other investments that are not reported at fair value as trading or Available-for-Sale securities are accounted for under the cost method when the Company owns less than a 20% voting interest and does not exercise significant influence. A VIE is consolidated by the reporting entity that determines it has both: • the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and • the obligation to absorb potentially significant losses or the right to receive potentially significant benefits to the VIE. All VIEs are assessed for consolidation under this framework. When evaluating entities for consolidation, the Company considers its contractual rights in determining whether it has the power to direct the activities of the VIE that most significantly impact the VIEs economic performance. In determining whether the Company has this power, it considers whether it is acting in a role that enables it to direct the activities that most significantly impact the economic performance of an entity or if it is acting in an agent role. In determining whether the Company has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Company considers an analysis of its rights to receive benefits such as investment returns and its obligation to absorb losses associated with any investment in the VIE in conjunction with other qualitative factors. Management and incentive fees that are at market and commensurate with the level of services provided, and where the Company does not hold other interests in the VIE that would absorb more than an insignificant amount of the VIE’s expected losses or receive more than an insignificant amount of the VIE’s expected residual returns, are not considered a variable interest and are excluded from the analysis. The consolidation guidance has a scope exception for reporting entities with interests in registered money market funds which do not have an explicit support agreement. |
Foreign Currency Translation | Foreign Currency Translation Net assets of foreign subsidiaries, whose functional currency is other than the U.S. dollar, are translated into U.S. dollars based upon exchange rates prevailing at the end of each period. Revenues and expenses are translated at daily exchange rates during the period. The resulting translation adjustment, along with any related hedge and tax effects, are included in accumulated other comprehensive income (“AOCI”). The determination of the functional currency is based on the primary economic environment in which the entity operates. Gains and losses from foreign currency transactions are included in the consolidated results of operations. |
Amounts Based on Estimates and Assumptions | Amounts Based on Estimates and Assumptions Accounting estimates are an integral part of the Consolidated Financial Statements. In part, they are based upon assumptions concerning future events. Among the more significant are those that relate to investment securities valuation and recognition of other-than-temporary impairments, DAC and the corresponding recognition of DAC amortization, valuation of derivative instruments and hedging activities, litigation reserves, future policy benefits and claims reserves and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents include time deposits and other highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less. |
Investments | Investments Available-for-Sale Securities Available -for-Sale securities are carried at fair value with unrealized gains (losses) recorded in AOCI, net of impacts to DAC, deferred sales inducement costs (“DSIC”), unearned revenue, benefit reserves, reinsurance recoverables and income taxes. Gains and losses are recognized on a trade date basis in the Consolidated Statements of Operations upon disposition of the securities. When the fair value of an investment is less than its amortized cost, the Company assesses whether or not: (i) it has the intent to sell the security (made a decision to sell) or (ii) it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If either of these conditions exist, an other-than-temporary impairment is considered to have occurred and the Company recognizes an other-than-temporary impairment for the difference between the investment’s amortized cost and its fair value through earnings. For securities that do not meet the above criteria and the Company does not expect to recover a security’s amortized cost, the security is also considered other-than-temporarily impaired. For these securities, the Company separates the total impairment into the credit loss component and the amount of the loss related to other factors. The amount of the total other-than-temporary impairment related to credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to other factors is recognized in OCI, net of impacts to DAC, DSIC, unearned revenue, benefit reserves, reinsurance recoverables and income taxes. For Available-for-Sale securities that have recognized an other-than-temporary impairment through earnings, the difference between the amortized cost and the cash flows expected to be collected is accreted as interest income if through subsequent evaluation there is a sustained increase in the cash flow expected. Subsequent increases and decreases in the fair value of Available-for-Sale securities are included in OCI. The Company provides a supplemental disclosure on the face of its Consolidated Statements of Operations that presents: (i) total other-than-temporary impairment losses recognized during the period and (ii) the portion of other-than-temporary impairment losses recognized in OCI. The sum of these amounts represents the credit-related portion of other-than-temporary impairments that were recognized in earnings during the period. The portion of other-than-temporary losses recognized in OCI includes: (i) the portion of other-than-temporary impairment losses related to factors other than credit recognized during the period and (ii) reclassifications of other-than-temporary impairment losses previously determined to be related to factors other than credit that are determined to be credit-related in the current period. The amount presented on the Consolidated Statements of Operations as the portion of other-than-temporary losses recognized in OCI excludes subsequent increases and decreases in the fair value of these securities. For all securities that are considered temporarily impaired, the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. The Company believes that it will collect all principal and interest due on all investments that have amortized cost in excess of fair value that are considered only temporarily impaired. Factors the Company considers in determining whether declines in the fair value of fixed maturity securities are other-than-temporary include: (i) the extent to which the market value is below amortized cost; (ii) the duration of time in which there has been a significant decline in value; (iii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iv) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors. In order to determine the amount of the credit loss component for corporate debt securities considered other-than-temporarily impaired, a best estimate of the present value of cash flows expected to be collected discounted at the security’s effective interest rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and the Company’s position in the debtor’s overall capital structure. For structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities, asset backed securities and other structured investments), the Company also considers factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections in assessing potential other-than-temporary impairments of these investments. Based upon these factors, securities that have indicators of potential other-than-temporary impairment are subject to detailed review by management. Securities for which declines are considered temporary continue to be monitored by management until management determines there is no current risk of an other-than-temporary impairment. Other Investments Other investments primarily reflect the Company’s interests in affordable housing partnerships, trading securities, seed money investments, syndicated loans, marketable equity securities and credit card receivables. Affordable housing partnerships and seed money investments are accounted for under the equity method. Trading securities, which primarily include common stocks and bonds, are carried at fair value with unrealized and realized gains (losses) recorded in net investment income. Marketable equity securities are recorded at fair value with changes in fair value reflected in net investment income. |
Financing Receivables | Financing Receivables Commercial Mortgage Loans, Syndicated Loans and Credit Card Receivables Commercial mortgage loans, syndicated loans and credit card receivables are reflected within investments at amortized cost less the allowance for loan losses. Syndicated loans represent the Company’s investment in below investment grade loan syndications. Interest income is accrued on the unpaid principal balances of the loans as earned. Other Loans Other loans primarily consist of policy loans, advisor loans and brokerage margin loans. When originated, policy loan balances do not exceed the cash surrender value of the underlying products. As there is minimal risk of loss related to policy loans, the Company does not record an allowance for loan losses. Policy loans are reflected within investments at the unpaid principal balance, plus accrued interest. The Company offers loans to financial advisors primarily for recruiting, transitional cost assistance and retention purposes. These loans are generally repaid over a five- to nine-year period. Advisor loans are recorded within receivables at principal less an allowance for loan losses. Interest income is recognized as earned and reflected in other revenues. R ecoverability of these loans is assessed through analysis of financial advisor retention, loan collection and other criteria. In the event that the financial advisor is no longer affiliated with the Company, any unpaid balance of such loan becomes immediately due. The Company’s broker dealer subsidiaries enter into lending arrangements with clients through the normal course of business, which are primarily based on customer margin levels. Margin loans are reported at the unpaid principal balance within receivables. The Company monitors the market value of collateral supporting the margin loans and requests additional collateral when necessary in order to mitigate the risk of loss. Deposit Receivable For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability related to insurance risk in accordance with applicable accounting standards. If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits made are included in receivables. As amounts are received, consistent with the underlying contracts, the deposit receivable is adjusted. The deposit receivable is accreted using the interest method and the accretion is reported in other revenues. See Note 7 for additional information on the deposit receivable. Nonaccrual Loans Generally , loans are evaluated for or placed on nonaccrual status when either the collection of interest or principal has become 90 days past due or is otherwise considered doubtful of collection. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Interest payments received on loans on nonaccrual status are generally applied to principal unless the remaining principal balance has been determined to be fully collectible. Commercial mortgage loans are evaluated for impairment when the loan is considered for nonaccrual status, restructured or foreclosure proceedings are initiated on the property. If it is determined that the fair value is less than the current loan balance, it is written down to fair value less estimated selling costs. Foreclosed property is recorded as real estate owned in other assets. Allowance for Loan Losses Management determines the adequacy of the allowance for loan losses based on the overall loan portfolio composition, recent and historical loss experience, and other pertinent factors, including when applicable, internal risk ratings, loan-to-value (“LTV”) ratios, FICO scores of the borrower, debt service coverage and occupancy rates, along with current economic and market conditions. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change. The Company determines the amount of the allowance based on management’s assessment of relative risk characteristics of the loan portfolio. The allowance is recorded for homogeneous loan categories on a pool basis, based on an analysis of product mix and risk characteristics of the portfolio, including geographic concentration, bankruptcy experiences, and historical losses, adjusted for current trends and market conditions. While the Company attributes portions of the allowance to specific loan pools as part of the allowance estimation process, the entire allowance is available to absorb losses inherent in the total loan portfolio. The allowance is increased through provisions charged to net investment income and reduced/increased by net charge-offs/recoveries. In determining the allowance for loan losses for advisor loans, the Company considers its historical collection experience as well as other factors including amounts due at termination, the reasons for the terminated relationship, length of time since termination, and the former financial advisor’s overall financial position. Concerns regarding the recoverability of these loans primarily arise in the event that the financial advisor is no longer affiliated with the Company. When the review of these factors indicates that further collection activity is highly unlikely, the outstanding balance of the loan is written-off and the related allowance is reduced. The provision for loan losses on advisor loans is recorded in distribution expenses. Impaired Loans The Company considers a loan to be impaired when, based on current information and events, it is probable the Company will not be able to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. Impaired loans may also include loans that have been modified in troubled debt restructurings as a concession to borrowers experiencing financial difficulties. Management evaluates for impairment all restructured loans and loans with higher impairment risk factors. Factors used by the Company to determine whether all amounts due on commercial mortgage loans will be collected, include but are not limited to, the financial condition of the borrower, performance of the underlying properties, collateral and/or guarantees on the loan, and the borrower’s estimated future ability to pay based on property type and geographic location. The impairment recognized is measured as the excess of the loan’s recorded investment over: (i) the present value of its expected principal and interest payments discounted at the loan’s effective interest rate, (ii) the fair value of collateral or (iii) the loan’s observable market price. Restructured Loans A loan is classified as a restructured loan when the Company makes certain concessionary modifications to contractual terms for borrowers experiencing financial difficulties. When the interest rate, minimum payments, and/or due dates have been modified in an attempt to make the loan more affordable to a borrower experiencing financial difficulties, the modification is considered a troubled debt restructuring. Generally, performance prior to the restructuring or significant events that coincide with the restructuring are considered in assessing whether the borrower can meet the new terms which may result in the loan being returned to accrual status at the time of the restructuring or after a performance period. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status. |
Separate Account Assets and Liabilities | Separate Account Assets and Liabilities Separate account assets represent funds held for the benefit of and separate account liabilities represent the obligation to the variable annuity contractholders and variable life insurance policyholders who have a contractual right to receive the benefits of their contract or policy and bear the related investment risk. Gains and losses on separate account assets accrue directly to the contractholder or policyholder and are not reported in the Company’s Consolidated Statements of Operations. Separate account assets are recorded at fair value and separate account liabilities are equal to the assets recognized. Included in separate account assets and liabilities is the fair value of the pooled pension funds that are offered by Threadneedle. |
Restricted and Segregated Cash and Investments | Restricted and Segregated Cash, Cash Equivalents and Investments Amounts segregated under federal and other regulations are held in special reserve bank accounts for the exclusive benefit of the Company’s brokerage customers. Cash and cash equivalents included in restricted and segregated cash, cash equivalents and investments are presented as part of cash balances in the Company’s Consolidated Statements of Cash Flows. |
Land, Buildings, Equipment and Software | Land, Buildings, Equipment and Software Land , buildings, equipment and internally developed or purchased software are carried at cost less accumulated depreciation or amortization and are reflected within other assets. The Company uses the straight-line method of depreciation and amortization over periods ranging from three to 39 years . As of December 31, 2019 and 2018 , land, buildings, equipment and software were $610 million and $635 million , respectively, net of accumulated depreciation of $1.8 billion and $2.0 billion , respectively. Depreciation and amortization expense for the years ended December 31, 2019 , 2018 and 2017 was $147 million , $146 million and $141 million |
Lessee, Leases | Leases The Company has operating and finance leases for corporate and field offices. The Company determines if an arrangement is a lease at inception or modification. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and corresponding lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate to determine the present value of the future lease payments. The incremental borrowing rate is determined at lease commencement date using a secured rate for a similar term as the period of the lease. Certain lease incentives such as free rent periods are recorded as a reduction of the ROU asset. Lease costs for operating ROU assets is recognized on a straight-line basis over the lease term. Certain leases include one or more options to renew with terms that can extend the lease from one year to 20 years . The exercise of any lease renewal option is at the sole discretion of the Company. Renewal options are included in the ROU assets and lease liabilities when they either provide an economic incentive to renew or when the costs related to the termination of a lease outweigh the benefits of signing a new lease. Operating and finance ROU assets are reflected in other assets. Operating lease liabilities and finance lease liabilities are reflected in other liabilities and long-term debt, respectively. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the amount of an acquired company’s acquisition cost in excess of the fair value of assets acquired and liabilities assumed. The Company evaluates goodwill for impairment annually on the measurement date of July 1 and whenever events and circumstances indicate that an impairment may have occurred, such as a significant adverse change in the business climate or a decision to sell or dispose of a reporting unit. Impairment is the amount carrying value exceeds fair value and is evaluated at the reporting unit level. The Company assesses various qualitative factors to determine whether impairment is likely to have occurred. If impairment were to occur, the Company would use the discounted cash flow method, a variation of the income approach. Intangible assets are amortized over their estimated useful lives unless they are deemed to have indefinite useful lives. The Company evaluates the definite lived intangible assets remaining useful lives annually and tests for impairment whenever events and circumstances indicate that an impairment may have occurred, such as a significant adverse change in the business climate. For definite lived intangible assets, impairment to fair value is recognized if the carrying amount is not recoverable. Indefinite lived intangibles are also tested for impairment annually or whenever circumstances indicate an impairment may have occurred. Goodwill and other intangible assets are reflected in other assets. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Freestanding derivative instruments are recorded at fair value and are reflected in other assets or other liabilities. The Company’s policy is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. The Company primarily uses derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. The Company occasionally designates derivatives as (i) hedges of changes in the fair value of assets, liabilities, or firm commitments (“fair value hedges”), (ii) hedges of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedges”), or (iii) hedges of foreign currency exposures of net investments in foreign operations (“net investment hedges in foreign operations”). Derivative instruments that are entered into for hedging purposes are designated as such at the time the Company enters into the contract. For all derivative instruments that are designated for hedging activities, the Company documents all of the hedging relationships between the hedge instruments and the hedged items at the inception of the relationships. Management also documents its risk management objectives and strategies for entering into the hedge transactions. The Company assesses, at inception and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of hedged items. If it is determined that a derivative is no longer highly effective as a hedge, the Company will discontinue the application of hedge accounting. For derivative instruments that do not qualify for hedge accounting or are not designated as accounting hedges, changes in fair value are recognized in current period earnings. Changes in fair value of derivatives are presented in the Consolidated Statements of Operations based on the nature and use of the instrument. Changes in fair value of derivatives used as economic hedges are presented in the Consolidated Statements of Operations with the corresponding change in the hedged asset or liability. For derivative instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as changes in the fair value of the hedged assets, liabilities or firm commitments, are recognized on a net basis in current period earnings. The carrying value of the hedged item is adjusted for the change in fair value from the designated hedged risk. If a fair value hedge designation is removed or the hedge is terminated prior to maturity, previous adjustments to the carrying value of the hedged item are recognized into earnings over the remaining life of the hedged item. For derivative instruments that qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is reported in AOCI and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Operations with the hedged instrument or transaction impact. Any ineffective portion of the gain or loss is reported in current period earnings as a component of net investment income. If a hedge designation is removed or a hedge is terminated prior to maturity, the amount previously recorded in AOCI is reclassified to earnings over the period that the hedged item impacts earnings. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in AOCI are recognized in earnings immediately. For derivative instruments that qualify as net investment hedges in foreign operations, the effective portion of the change in fair value of the derivatives is recorded in AOCI as part of the foreign currency translation adjustment. Any ineffective portion of the net investment hedges in foreign operations is recognized in net investment income during the period of change. The equity component of indexed annuities, indexed universal life (“IUL”) and stock market certificate obligations are considered embedded derivatives. Additionally, certain annuities contain guaranteed minimum accumulation benefit (“GMAB”) and guaranteed minimum withdrawal benefit (“GMWB”) provisions. The GMAB and the non-life contingent benefits associated with GMWB provisions are also considered embedded derivatives. See Note 15 for information regarding the Company’s fair value measurement of derivative instruments and Note 17 for the impact of derivatives on the Consolidated Statements of Operations. |
Deferred Acquisition Costs | Deferred Acquisition Costs The Company incurs costs in connection with acquiring new and renewal insurance and annuity businesses. The portion of these costs which are incremental and direct to the acquisition of a new or renewal insurance policy or annuity contract are deferred. Significant costs capitalized include sales based compensation related to the acquisition of new and renewal insurance policies and annuity contracts, medical inspection costs for successful sales, and a portion of employee compensation and benefit costs based upon the amount of time spent on successful sales. Sales based compensation paid to advisors and employees and third-party distributors is capitalized. Employee compensation and benefits costs which are capitalized relate primarily to sales efforts, underwriting and processing. All other costs which are not incremental direct costs of acquiring an insurance policy or annuity contract are expensed as incurred. The DAC associated with insurance policies or annuity contracts that are significantly modified or internally replaced with another contract are accounted for as contract terminations. These transactions are anticipated in establishing amortization periods and other valuation assumptions. The Company monitors other DAC amortization assumptions, such as persistency, mortality, morbidity, interest margin, variable annuity benefit utilization and maintenance expense levels each quarter and, when assessed independently, each could impact the Company’s DAC balances. The analysis of DAC balances and the corresponding amortization is a dynamic process that considers all relevant factors and assumptions described previously. Unless the Company’s management identifies a significant deviation over the course of the quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year. Non-Traditional Long-Duration Products For non-traditional long-duration products (including variable and fixed deferred annuity contracts, universal life (“UL”) and variable universal life (“VUL”) insurance products), DAC are amortized based on projections of estimated gross profits (“EGPs”) over amortization periods equal to the approximate life of the business. EGPs vary based on persistency rates (assumptions at which contractholders and policyholders are expected to surrender, make withdrawals from and make deposits to their contracts), mortality levels, client asset value growth rates (based on equity and bond market performance), variable annuity benefit utilization and interest margins (the spread between earned rates on invested assets and rates credited to contractholder and policyholder accounts) and are management’s best estimates. Management regularly monitors financial market conditions and actual contractholder and policyholder behavior experience and compares them to its assumptions. These assumptions are updated whenever it appears that earlier estimates should be revised. When assumptions are changed, the percentage of EGPs used to amortize DAC might also change. A change in the required amortization percentage is applied retrospectively; an increase in amortization percentage will result in a decrease in the DAC balance and an increase in DAC amortization expense, while a decrease in amortization percentage will result in an increase in the DAC balance and a decrease in DAC amortization expense. The impact on results of operations of changing assumptions can be either positive or negative in any particular period and is reflected in the period in which such changes are made. At each balance sheet date, the DAC balance is adjusted for the effect that would result from the realization of unrealized gains or losses on securities impacting EGPs, with the related change recognized through AOCI. The client asset value growth rates are the rates at which variable annuity and VUL insurance contract values invested in separate accounts are assumed to appreciate in the future. The rates used vary by equity and fixed income investments. Management reviews and, where appropriate, adjusts its assumptions with respect to client asset value growth rates on a regular basis. The Company typically uses a five-year mean reversion process as a guideline in setting near-term equity fund growth rates based on a long-term view of financial market performance as well as recent actual performance. The suggested near-term equity fund growth rate is reviewed quarterly to ensure consistency with management’s assessment of anticipated equity market performance. DAC amortization expense recorded in a period when client asset value growth rates exceed management’s near-term estimate will typically be less than in a period when growth rates fall short of management’s near-term estimate. Traditional Long-Duration Products For traditional long-duration products (including traditional life and disability income (“DI”) insurance products), DAC are generally amortized as a percentage of premiums over amortization periods equal to the premium paying period. The assumptions made in calculating the DAC balance and DAC amortization expense are consistent with those used in determining the liabilities. For traditional life and DI insurance products, the assumptions provide for adverse deviations in experience and are revised only if management concludes experience will be so adverse that DAC are not recoverable. If management concludes that DAC are not recoverable, DAC are reduced to the amount that is recoverable based on best estimate assumptions and there is a corresponding expense recorded in the Consolidated Statements of Operations. |
Deferred Sales Inducement Costs | Deferred Sales Inducement Costs Sales inducement costs consist of bonus interest credits and premium credits added to certain annuity contract and insurance policy values. These benefits are capitalized to the extent they are incremental to amounts that would be credited on similar contracts without the applicable feature. The amounts capitalized are amortized using the same methodology and assumptions used to amortize DAC. DSIC is recorded in other assets, and amortization of DSIC is recorded in benefits, claims, losses and settlement expenses. |
Reinsurance | Reinsurance The Company cedes insurance risk to other insurers under reinsurance agreements. The Company evaluates the financial condition of its reinsurers prior to entering into new reinsurance contracts and on a periodic basis during the contract term. Reinsurance premiums paid and benefits received are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Reinsurance premiums for traditional life, long term care (“LTC”), DI and auto and home, net of the change in any prepaid reinsurance asset, are reported as a reduction of premiums. UL and VUL reinsurance premiums are reported as a reduction of other revenues. In addition, for UL and VUL insurance policies, the net cost of reinsurance ceded, which represents the discounted amount of the expected cash flows between the reinsurer and the Company, is classified as an asset or contra asset and amortized over the estimated life of the policies in proportion to the estimated gross profits and is subject to retrospective adjustment in a manner similar to retrospective adjustment of DAC. The assumptions used to project the expected cash flows are consistent with those used for DAC valuation for the same contracts. Changes in the net cost of reinsurance are reflected as a component of other revenues. Reinsurance recoveries are reported as components of benefits, claims, losses and settlement expenses. Insurance liabilities are reported before the effects of reinsurance. Policyholder account balances, future policy benefits and claims recoverable under reinsurance contracts are recorded within receivables. The Company also assumes life insurance and fixed annuity risk from other insurers in limited circumstances. Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Liabilities for assumed business are recorded within policyholder account balances, future policy benefits and claims. See Note 8 for additional information on reinsurance. |
Policyholder Account Balances, Future Policy Benefits and Claims | Policyholder Account Balances, Future Policy Benefits and Claims The Company establishes reserves to cover the risks associated with non-traditional and traditional long-duration products and short-duration products. Non-traditional long-duration products include variable annuity contracts, fixed annuity contracts and UL and VUL policies. Traditional long-duration products include term life, whole life, DI and LTC insurance products. Prior to the sale of Ameriprise Auto & Home (“AAH”), reserves for short-duration products were established to provide adequately for incurred losses primarily related to auto and home policies. See Note 19 for additional information on the sale of AAH. Guarantees accounted for as insurance liabilities include guaranteed minimum death benefit (“GMDB”), gain gross-up (“GGU”), guaranteed minimum income benefit (“GMIB”) and the life contingent benefits associated with GMWB. In addition, UL and VUL policies with product features that result in profits followed by losses are accounted for as insurance liabilities. Guarantees accounted for as embedded derivatives include GMAB and the non-life contingent benefits associated with GMWB. In addition, the portion of indexed annuities and IUL policies allocated to the indexed account is accounted for as an embedded derivative. Changes in future policy benefits and claims are reflected in earnings in the period adjustments are made. Where applicable, benefit amounts expected to be recoverable from reinsurance companies who share in the risk are separately recorded as reinsurance recoverable within receivables. Non-Traditional Long-Duration Products The liabilities for non-traditional long-duration products include fixed account values on variable and fixed annuities and UL and VUL policies, liabilities for guaranteed benefits associated with variable annuities and embedded derivatives for variable annuities, indexed annuities and IUL products. Liabilities for fixed account values on variable and fixed deferred annuities and UL and VUL policies are equal to accumulation values, which are the cumulative gross deposits and credited interest less withdrawals and various charges. A portion of the Company’s UL and VUL policies have product features that result in profits followed by losses from the insurance component of the contract. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the contract. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. The liability for these future losses is determined by estimating the death benefits in excess of account value and recognizing the excess over the estimated life based on expected assessments (e.g. cost of insurance charges, contractual administrative charges, similar fees and investment margin). See Note 12 for information regarding the liability for contracts with secondary guarantees. Liabilities for indexed annuity products and indexed accounts of IUL products are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options. The GMDB and GGU liability is determined by estimating the expected value of death benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees). If elected by the contract owner and after a stipulated waiting period from contract issuance, a GMIB guarantees a minimum lifetime annuity based on a specified rate of contract accumulation value growth and predetermined annuity purchase rates. The GMIB liability is determined each period by estimating the expected value of annuitization benefits in excess of the projected contract accumulation value at the date of annuitization and recognizing the excess over the estimated life based on expected assessments. The liability for the life contingent benefits associated with GMWB provisions is determined by estimating the expected value of benefits that are contingent upon survival after the account value is equal to zero and recognizing the benefits over the estimated life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees). In determining the liabilities for GMDB, GGU, GMIB and the life contingent benefits associated with GMWB, the Company projects these benefits and contract assessments using actuarial models to simulate various equity market scenarios. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency, benefit utilization and investment margins and are consistent with those used for DAC valuation for the same contracts. As with DAC, unless the Company’s management identifies a significant deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year. See Note 12 for information regarding variable annuity guarantees. Liabilities for fixed annuities in a benefit or payout status utilize assumptions established as of the date the payout phase is initiated. The liabilities are the present value of future estimated payments reduced for mortality (which is based on industry mortality tables with modifications based on the Company’s experience) and discounted with interest rates. Embedded Derivatives The fair value of embedded derivatives related to GMAB and the non-life contingent benefits associated with GMWB provisions fluctuate based on equity, interest rate and credit markets and the estimate of the Company’s nonperformance risk, which can cause these embedded derivatives to be either an asset or a liability. The fair value of embedded derivatives related to indexed annuities and IUL fluctuate based on equity markets and interest rates and the estimate of the Company’s nonperformance risk and is a liability. See Note 15 for information regarding the fair value measurement of embedded derivatives. Traditional Long-Duration Products The liabilities for traditional long-duration products include liabilities for unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that will become payable on term life, whole life, DI and LTC policies as claims are incurred in the future. Liabilities for unpaid amounts on reported life insurance claims are equal to the death benefits payable under the policies. Liabilities for unpaid amounts on reported DI and LTC claims include any periodic or other benefit amounts due and accrued, along with estimates of the present value of obligations for continuing benefit payments. These unpaid amounts are calculated using anticipated claim continuance rates based on established industry tables, adjusted as appropriate for the Company’s experience. The discount rates used to calculate present values are based on average interest rates earned on assets supporting the liability for unpaid amounts. Liabilities for estimated benefits payable on claims that have been incurred but not yet reported are based on periodic analysis of the actual time lag between when a claim occurs and when it is reported. Liabilities for estimates of benefits that will become payable on future claims on term life, whole life and DI insurance policies are based on the net level premium and LTC policies are based on a gross premium valuation reflecting management’s current best estimate assumptions. Net level premium includes anticipated premium payments, mortality and morbidity rates, policy persistency and interest rates earned on assets supporting the liability. Gross premium valuation includes expected premium rate increases, benefit reductions, morbidity rates, policy persistency and interest rates earned on assets supporting the liability. Anticipated mortality and morbidity rates are based on established industry mortality and morbidity tables, with modifications based on the Company’s experience. Anticipated premium payments and persistency rates vary by policy form, issue age, policy duration and certain other pricing factors. For term life, whole life, DI and LTC policies, the Company utilizes best estimate assumptions as of the date the policy is issued with provisions for the risk of adverse deviation, as appropriate. After the liabilities are initially established, management performs premium deficiency tests using best estimate assumptions without provisions for adverse deviation annually in the third quarter of each year unless management identifies a material deviation over the course of quarterly monitoring. If the liabilities determined based on these best estimate assumptions are greater than the net reserves (i.e., GAAP reserves net of any DAC balance), the existing net reserves are adjusted by first reducing the DAC balance by the amount of the deficiency or to zero through a charge to current period earnings. If the deficiency is more than the DAC balance, then the net reserves are increased by the excess through a charge to current period earnings. If a premium deficiency is recognized, the assumptions as of the date of the loss recognition are locked in and used in subsequent periods. The assumptions for LTC insurance products are management’s best estimate as of the date of loss recognition and thus no longer provide for adverse deviations in experience. See Note 11 for information regarding the liabilities for traditional long-duration products. Short-Duration Products Prior to the sale of AAH, liabilities for short-duration products primarily included auto and home reserves comprised of amounts determined from loss reports on individual claims, as well as amounts based on historical loss experience for losses incurred but not yet reported. Such liabilities were based on estimates. The Company’s methods for making such estimates and for establishing the resulting liabilities were continually reviewed, and any adjustments were reflected in earnings in the period such adjustments were made. |
Unearned Revenue Liability | Unearned Revenue Liability The Company’s UL and VUL policies require payment of fees or other policyholder assessments in advance for services to be provided in future periods. These charges are deferred as unearned revenue and amortized using EGPs, similar to DAC. The unearned revenue liability is recorded in other liabilities and the amortization is recorded in other revenues. For clients who pay financial planning fees prior to the advisor’s delivery of the financial plan, the financial planning fees received in advance are deferred as unearned revenue until the plan is delivered to the client. |
Share-Based Compensation | Share-Based Compensation The Company measures and recognizes the cost of share-based awards granted to employees and directors based on the grant-date fair value of the award and recognizes the expense (net of estimated forfeitures) on a straight-line basis over the vesting period. Excess tax benefits or deficiencies are created upon distribution or exercise of awards and are recognized as income tax expense or benefit in the income statement. The fair value of each option is estimated on the grant date using a Black-Scholes option-pricing model. The Company recognizes the cost of performance share units granted to the Company’s Executive Leadership Team on a fair value basis until fully vested. |
Income Taxes | Income Taxes The Company’s provision for income taxes represents the net amount of income taxes that the Company expects to pay or to receive from various taxing jurisdictions in connection with its operations. The Company provides for income taxes based on amounts that the Company believes it will ultimately owe taking into account the recognition and measurement for uncertain tax positions. Inherent in the provision for income taxes are estimates and judgments regarding the tax treatment of certain items. In connection with the provision for income taxes, the Consolidated Financial Statements reflect certain amounts related to deferred tax assets and liabilities, which result from temporary differences between the assets and liabilities measured for financial statement purposes versus the assets and liabilities measured for tax return purposes. The Company is required to establish a valuation allowance for any portion of its deferred tax assets that management believes will not be realized. Significant judgment is required in determining if a valuation allowance should be established and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business. Consideration is given to, among other things in making this determination: (i) future taxable income exclusive of reversing temporary differences and carryforwards; (ii) future reversals of existing taxable temporary differences; (iii) taxable income in prior carryback years; and (iv) tax planning strategies. Management may need to identify and implement appropriate planning strategies to ensure its ability to realize deferred tax assets and reduce the likelihood of the establishment of a valuation allowance with respect to such assets. See Note 24 for additional information on the Company’s valuation allowance. Changes in tax rates and tax law are accounted for in the period of enactment. Deferred tax assets and liabilities are adjusted for the effect of a change in tax laws or rates and the effect is included in income. See Note 24 for further discussion on the enactment of the legislation commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”) and the impact to the Company’s provision for income taxes for the year ended December 31, 2017. |
Revenue Recognition | Revenue Recognition See Note 4 for discussion of accounting policies on revenue from contracts with customers in accordance with ASU 2014-09 Revenue from Contracts with Customers (“ASU 2014-09”). The following discussion includes the Company’s accounting policies on recognition of revenues outside the scope of ASU 2014-09. Mortality and expense risk fees are generally calculated as a percentage of the fair value of assets held in separate accounts and recognized when assessed. Interest income is accrued as earned using the effective interest method, which makes an adjustment of the yield for security premiums and discounts on all performing fixed maturity securities classified as Available-for-Sale so that the related security or loan recognizes a constant rate of return on the outstanding balance throughout its term. When actual prepayments differ significantly from originally anticipated prepayments, the retrospective effective yield is recalculated to reflect actual payments to date and updated future payment assumptions and a catch-up adjustment is recorded in the current period. In addition, the new effective yield, which reflects anticipated future payments, is used prospectively. Realized gains and losses on securities, other than trading securities and equity method investments, are recognized using the specific identification method on a trade date basis. Prior to the sale of AAH, premiums on auto and home insurance were net of reinsurance premiums and recognized ratably over the coverage period. Premiums on traditional life, health insurance and immediate annuities with a life contingent feature are net of reinsurance ceded and are recognized as revenue when due. Variable annuity guaranteed benefit rider charges and cost of insurance charges on UL and VUL insurance (net of reinsurance premiums and cost of reinsurance for universal life insurance products) are recognized as revenue when assessed. |
Revenue from Contract with Cu_2
Revenue from Contract with Customer Revenue from Contract with Customer (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [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: Year Ended December 31, 2019 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 $ — $ 1,783 $ — $ — $ — $ 1,783 $ — $ 1,783 Institutional — 495 — — — 495 — 495 Advisory fees 3,156 — — — — 3,156 — 3,156 Financial planning fees 330 — — — — 330 — 330 Transaction and other fees 355 189 55 8 — 607 — 607 Total management and financial advice fees 3,841 2,467 55 8 — 6,371 — 6,371 Distribution fees: Mutual funds 726 237 — — — 963 — 963 Insurance and annuity 875 171 329 28 6 1,409 — 1,409 Other products 680 — — — — 680 — 680 Total distribution fees 2,281 408 329 28 6 3,052 — 3,052 Other revenues 177 4 — — — 181 — 181 Total revenue from contracts with customers 6,299 2,879 384 36 6 9,604 — 9,604 Revenue from other sources (1) 436 34 2,075 1,011 1,096 4,652 265 4,917 Total segment gross revenues 6,735 2,913 2,459 1,047 1,102 14,256 265 14,521 Less: Banking and deposit interest expense 136 — — — 8 144 — 144 Total segment net revenues 6,599 2,913 2,459 1,047 1,094 14,112 265 14,377 Less: intersegment revenues 924 55 367 62 (6 ) 1,402 8 1,410 Total net revenues $ 5,675 $ 2,858 $ 2,092 $ 985 $ 1,100 $ 12,710 $ 257 $ 12,967 Year Ended December 31, 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 $ — $ 1,874 $ — $ — $ — $ 1,874 $ — $ 1,874 Institutional — 453 — — — 453 — 453 Advisory fees 2,865 — — — — 2,865 — 2,865 Financial planning fees 318 — — — — 318 — 318 Transaction and other fees 355 190 57 8 — 610 — 610 Total management and financial advice fees 3,538 2,517 57 8 — 6,120 — 6,120 Distribution fees: Mutual funds 729 260 — — — 989 — 989 Insurance and annuity 890 173 332 28 7 1,430 — 1,430 Other products 622 — — — — 622 — 622 Total distribution fees 2,241 433 332 28 7 3,041 — 3,041 Other revenues 171 3 — 1 — 175 — 175 Total revenue from contracts with customers 5,950 2,953 389 37 7 9,336 — 9,336 Revenue from other sources (1) 328 58 2,087 1,059 1,335 4,867 158 5,025 Total segment gross revenues 6,278 3,011 2,476 1,096 1,342 14,203 158 14,361 Less: Banking and deposit interest expense 89 — — — 6 95 — 95 Total segment net revenues 6,189 3,011 2,476 1,096 1,336 14,108 158 14,266 Less: intersegment revenues 952 50 356 61 (5 ) 1,414 17 1,431 Total net revenues $ 5,237 $ 2,961 $ 2,120 $ 1,035 $ 1,341 $ 12,694 $ 141 $ 12,835 Year Ended December 31, 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 $ — $ 1,851 $ — $ — $ — $ 1,851 $ — $ 1,851 Institutional — 495 — — — 495 — 495 Advisory fees 2,494 — — — — 2,494 — 2,494 Financial planning fees 297 — — — — 297 — 297 Transaction and other fees 362 202 57 8 — 629 — 629 Total management and financial advice fees 3,153 2,548 57 8 — 5,766 — 5,766 Distribution fees: Mutual funds 765 289 — — — 1,054 — 1,054 Insurance and annuity 855 169 327 28 5 1,384 — 1,384 Other products 475 — — — — 475 — 475 Total distribution fees 2,095 458 327 28 5 2,913 — 2,913 Other revenues 164 2 — — — 166 — 166 Total revenue from contracts with customers 5,412 3,008 384 36 5 8,845 — 8,845 Revenue from other sources (1) 252 64 2,115 947 1,232 4,610 154 4,764 Total segment gross revenues 5,664 3,072 2,499 983 1,237 13,455 154 13,609 Less: Banking and deposit interest expense 48 — — — 3 51 — 51 Total segment net revenues 5,616 3,072 2,499 983 1,234 13,404 154 13,558 Less: intersegment revenues 953 47 351 62 (2 ) 1,411 15 1,426 Total net revenues $ 4,663 $ 3,025 $ 2,148 $ 921 $ 1,236 $ 11,993 $ 139 $ 12,132 (1) Revenues not included in the scope of the revenue from contracts with customers standard. The amounts primarily consist of revenue associated with insurance and annuity products or financial instruments. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Assets and liabilities measured at fair value | |
Schedule of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis | The following tables present the balances of assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis: December 31, 2019 Level 1 Level 2 Level 3 Total (in millions) Assets Cash equivalents $ 267 $ 2,924 $ — $ 3,191 Available-for-Sale securities: Corporate debt securities — 11,437 750 12,187 Residential mortgage backed securities — 10,012 17 10,029 Commercial mortgage backed securities — 5,563 — 5,563 Asset backed securities — 1,987 19 2,006 State and municipal obligations — 1,367 — 1,367 U.S. government and agency obligations 1,680 — — 1,680 Foreign government bonds and obligations — 271 — 271 Other securities — 26 — 26 Total Available-for-Sale securities 1,680 30,663 786 33,129 Equity securities 1 — — 1 Investments at NAV 6 (1) Trading and other securities 12 26 — 38 Separate account assets at NAV 87,488 (1) Investments and cash equivalents segregated for regulatory purposes 14 — — 14 Other assets: Interest rate derivative contracts — 1,455 — 1,455 Equity derivative contracts 162 2,722 — 2,884 Credit derivative contracts — 4 — 4 Foreign exchange derivative contracts 1 17 — 18 Total other assets 163 4,198 — 4,361 Total assets at fair value $ 2,137 $ 37,811 $ 786 $ 128,228 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 3 $ 43 $ 46 IUL embedded derivatives — — 881 881 GMWB and GMAB embedded derivatives — — 763 763 (2) Total policyholder account balances, future policy benefits and claims — 3 1,687 1,690 (3) Customer deposits — 14 — 14 Other liabilities: Interest rate derivative contracts — 418 — 418 Equity derivative contracts 36 3,062 — 3,098 Foreign exchange derivative contracts 1 8 — 9 Other 6 4 44 54 Total other liabilities 43 3,492 44 3,579 Total liabilities at fair value $ 43 $ 3,509 $ 1,731 $ 5,283 December 31, 2018 Level 1 Level 2 Level 3 Total (in millions) Assets Cash equivalents $ 155 $ 2,350 $ — $ 2,505 Available-for-Sale securities: Corporate debt securities — 13,153 913 14,066 Residential mortgage backed securities — 6,193 136 6,329 Commercial mortgage backed securities — 4,857 20 4,877 Asset backed securities — 1,392 6 1,398 State and municipal obligations — 2,345 — 2,345 U.S. government and agency obligations 1,745 — — 1,745 Foreign government bonds and obligations — 298 — 298 Total Available-for-Sale securities 1,745 28,238 1,075 31,058 Equity securities — 1 — 1 Investments at NAV 6 (1) Trading and other securities 36 38 — 74 Separate account assets at NAV 77,925 (1) Investments and cash equivalents segregated for regulatory purposes 301 — — 301 Other assets: Interest rate derivative contracts — 796 — 796 Equity derivative contracts 191 1,527 — 1,718 Foreign exchange derivative contracts 5 55 — 60 Total other assets 196 2,378 — 2,574 Total assets at fair value $ 2,433 $ 33,005 $ 1,075 $ 114,444 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 3 $ 14 $ 17 IUL embedded derivatives — — 628 628 GMWB and GMAB embedded derivatives — — 328 328 (4) Total policyholder account balances, future policy benefits and claims — 3 970 973 (5) Customer deposits — 6 — 6 Other liabilities: Interest rate derivative contracts — 424 — 424 Equity derivative contracts 78 2,076 — 2,154 Credit derivative contracts — 18 — 18 Foreign exchange derivative contracts 4 31 — 35 Other 13 6 30 49 Total other liabilities 95 2,555 30 2,680 Total liabilities at fair value $ 95 $ 2,564 $ 1,000 $ 3,659 (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 $981 million of individual contracts in a liability position and $218 million of individual contracts in an asset position as of December 31, 2019 . (3) The Company’s adjustment for nonperformance risk resulted in a $(502) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2019 . (4) The fair value of the GMWB and GMAB embedded derivatives included $646 million of individual contracts in a liability position and $318 million of individual contracts in an asset position as of December 31, 2018 . (5) The Company’s adjustment for nonperformance risk resulted in a $(726) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2018 . |
Schedule of debt of the consolidated investment entities and the stated interest rates | The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows: Outstanding Balance Stated Interest Rate December 31, December 31, 2019 2018 2019 2018 (in millions) Long-term debt: Senior notes due 2019 $ — $ 300 — % 7.3 % Senior notes due 2020 750 750 5.3 5.3 Senior notes due 2022 500 — 3.0 — 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 Finance lease liabilities 57 25 N/A N/A Other (1) (10 ) (8 ) N/A N/A Total long-term debt 3,097 2,867 Short-term borrowings: Federal Home Loan Bank (“FHLB”) advances 201 151 1.8 2.6 Repurchase agreements — 50 — 2.6 Total short-term borrowings 201 201 Total $ 3,298 $ 3,068 N/A Not Applicable. (1) Amounts include adjustments for fair value hedges on the Company’s long-term debt and unamortized discount and debt issuance costs. See Note 17 for information on the Company’s fair value hedges. |
Consolidated investment entities [Member] | |
Assets and liabilities measured at fair value | |
Schedule of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis | The following tables present the balances of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis: December 31, 2019 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Corporate debt securities $ — $ 8 $ — $ 8 Common stocks 1 — — 1 Syndicated loans — 1,454 143 1,597 Total investments 1 1,462 143 1,606 Receivables — 8 — 8 Total assets at fair value $ 1 $ 1,470 $ 143 $ 1,614 Liabilities Debt (1) $ — $ 1,628 $ — $ 1,628 Other liabilities — 84 — 84 Total liabilities at fair value $ — $ 1,712 $ — $ 1,712 December 31, 2018 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Corporate debt securities $ — $ 9 $ — $ 9 Common stocks 1 1 — 2 Other investments 4 — — 4 Syndicated loans — 1,465 226 1,691 Total investments 5 1,475 226 1,706 Receivables — 12 — 12 Total assets at fair value $ 5 $ 1,487 $ 226 $ 1,718 Liabilities Debt (1) $ — $ 1,743 $ — $ 1,743 Other liabilities — 122 — 122 Total liabilities at fair value $ — $ 1,865 $ — $ 1,865 (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 $1.7 billion as of both December 31, 2019 and 2018 . |
Schedule of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis | The following tables provide a summary of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis: Syndicated Loans (in millions) Balance, January 1, 2019 $ 226 Total gains (losses) included in: Net income (2 ) (1) Purchases 91 Sales (11 ) Settlements (68 ) Transfers into Level 3 272 Transfers out of Level 3 (365 ) Balance, December 31, 2019 $ 143 Changes in unrealized gains (losses) included in income relating to assets held at December 31, 2019 $ (3 ) (1) Common Stocks Syndicated Loans (in millions) Balance, January 1, 2018 $ 4 $ 180 Total gains (losses) included in: Net income 6 (1) (1 ) (1) Purchases — 97 Sales (10 ) (41 ) Settlements — (52 ) Transfers into Level 3 4 173 Transfers out of Level 3 (2 ) (160 ) Consolidation of consolidated investment entities — 54 Deconsolidation of consolidated investment entities (2 ) (24 ) Balance, December 31, 2018 $ — $ 226 Changes in unrealized gains (losses) included in income relating to assets held at December 31, 2018 $ — $ (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 — 3 146 Sales (2 ) (2 ) (28 ) Settlements — — (70 ) Transfers into Level 3 2 7 266 Transfers out of Level 3 — (8 ) (388 ) Balance, December 31, 2017 $ — $ 4 $ 180 Changes in unrealized gains (losses) included in income relating to assets held at December 31, 2017 $ — $ (1 ) (1) $ (1 ) (1) (1) Included in net investment income in the Consolidated Statements of Operations. |
Schedule of fair value and unpaid principal balance of assets and liabilities carried at fair value under the fair value option | The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected: December 31, 2019 2018 (in millions) Syndicated loans Unpaid principal balance $ 1,678 $ 1,743 Excess unpaid principal over fair value (81 ) (52 ) Fair value $ 1,597 $ 1,691 Fair value of loans more than 90 days past due $ 4 $ — Fair value of loans in nonaccrual status 42 — Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both 18 — Debt Unpaid principal balance $ 1,761 $ 1,951 Excess unpaid principal over fair value (133 ) (208 ) Carrying value (1) $ 1,628 $ 1,743 (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 $1.7 billion as of both December 31, 2019 and 2018 . |
Schedule of debt of the consolidated investment entities and the stated interest rates | Debt of the consolidated investment entities and the stated interest rates were as follows: Carrying Value Weighted Average Interest Rate December 31, December 31, 2019 2018 2019 2018 (in millions) Debt of consolidated CLOs due 2025-2030 $ 1,628 $ 1,743 3.5 % 3.7 % |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments [Table Text Block] | The following is a summary of investments: December 31, 2019 2018 (in millions) Available-for-Sale securities, at fair value $ 33,129 $ 31,058 Mortgage loans, net 2,778 2,696 Policy loans 868 861 Other investments 1,140 1,210 Total $ 37,915 $ 35,825 |
Summary of Net Investment Income [Table Text Block] | The following is a summary of net investment income: Years Ended December 31, 2019 2018 2017 (in millions) Investment income on fixed maturities $ 1,378 $ 1,353 $ 1,349 Net realized gains (losses) (8 ) 10 46 Affordable housing partnerships (98 ) (58 ) (100 ) Other 97 154 108 Consolidated investment entities 94 137 106 Total $ 1,463 $ 1,596 $ 1,509 |
Available-for-Sale Securities Disclosure [Table Text Block] | Available-for-Sale securities distributed by type were as follows: Description of Securities December 31, 2019 Amortized Gross Gross Fair Value Noncredit OTTI (1) (in millions) Corporate debt securities $ 10,847 $ 1,344 $ (4 ) $ 12,187 $ — Residential mortgage backed securities 9,954 94 (19 ) 10,029 — Commercial mortgage backed securities 5,473 96 (6 ) 5,563 — Asset backed securities 1,968 42 (4 ) 2,006 1 State and municipal obligations 1,131 238 (2 ) 1,367 — U.S. government and agency obligations 1,679 1 — 1,680 — Foreign government bonds and obligations 254 19 (2 ) 271 — Other securities 26 — — 26 — Total $ 31,332 $ 1,834 $ (37 ) $ 33,129 $ 1 Description of Securities December 31, 2018 Amortized Gross Gross Fair Value Noncredit (1) (in millions) Corporate debt securities $ 13,741 $ 555 $ (230 ) $ 14,066 $ — Residential mortgage backed securities 6,373 34 (78 ) 6,329 — Commercial mortgage backed securities 4,975 18 (116 ) 4,877 — Asset backed securities 1,373 36 (11 ) 1,398 1 State and municipal obligations 2,166 192 (13 ) 2,345 — U.S. government and agency obligations 1,745 — — 1,745 — Foreign government bonds and obligations 298 9 (9 ) 298 — Total $ 30,671 $ 844 $ (457 ) $ 31,058 $ 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. |
Investments with Fixed Maturities Disclosure [Table Text Block] | A summary of fixed maturity securities by rating was as follows: Ratings December 31, 2019 December 31, 2018 Amortized Fair Value Percent of Total Fair Value Amortized Fair Value Percent of Total Fair Value (in millions, except percentages) AAA $ 18,256 $ 18,437 56 % $ 13,399 $ 13,252 43 % AA 1,113 1,304 4 1,571 1,723 5 A 3,008 3,474 10 3,667 3,899 13 BBB 8,178 9,102 28 11,102 11,290 36 Below investment grade (1) 777 812 2 932 894 3 Total fixed maturities $ 31,332 $ 33,129 100 % $ 30,671 $ 31,058 100 % (1) The amortized cost and fair value of below investment grade securities includes interest in CLOs managed by the Company of $5 million and $6 million , respectively, as of both December 31, 2019 and 2018 . These securities are not rated but are included in below investment grade due to their risk characteristics. |
Available-for-Sale Securities Continuous Unrealized Loss Disclosure [Table Text Block] | The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position: Description of Securities December 31, 2019 Less than 12 months 12 months or more Total Number of Securities Fair Unrealized Number of Securities Fair Unrealized Number of Securities Fair Unrealized (in millions, except number of securities) Corporate debt securities 13 $ 66 $ (1 ) 23 $ 173 $ (3 ) 36 $ 239 $ (4 ) Residential mortgage backed securities 150 4,328 (10 ) 118 1,164 (9 ) 268 5,492 (19 ) Commercial mortgage backed securities 52 1,622 (3 ) 31 314 (3 ) 83 1,936 (6 ) Asset backed securities 34 598 (3 ) 16 213 (1 ) 50 811 (4 ) State and municipal obligations 5 23 — 4 57 (2 ) 9 80 (2 ) Foreign government bonds and obligations 1 — — 10 15 (2 ) 11 15 (2 ) Total 255 $ 6,637 $ (17 ) 202 $ 1,936 $ (20 ) 457 $ 8,573 $ (37 ) Description of Securities December 31, 2018 Less than 12 months 12 months or more Total Number of Securities Fair Unrealized Number of Securities Fair Unrealized Number of Securities Fair Unrealized (in millions, except number of securities) Corporate debt securities 345 $ 5,522 $ (152 ) 148 $ 1,717 $ (78 ) 493 $ 7,239 $ (230 ) Residential mortgage backed securities 142 2,029 (18 ) 175 2,132 (60 ) 317 4,161 (78 ) Commercial mortgage backed securities 104 2,062 (30 ) 112 1,806 (86 ) 216 3,868 (116 ) Asset backed securities 38 491 (6 ) 35 396 (5 ) 73 887 (11 ) State and municipal obligations 81 255 (4 ) 100 254 (9 ) 181 509 (13 ) Foreign government bonds and obligations 17 86 (4 ) 14 17 (5 ) 31 103 (9 ) Total 727 $ 10,445 $ (214 ) 584 $ 6,322 $ (243 ) 1,311 $ 16,767 $ (457 ) |
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 OTTI related to credit losses on Available-for-Sale securities for which a portion of the securities’ total OTTI was recognized in OCI: December 31, 2019 2018 2017 (in millions) Beginning balance $ 2 $ 2 $ 69 Credit losses for which an other-than-temporary impairment was not previously recognized 15 — — Credit losses for which an other-than-temporary impairment was previously recognized 2 — 1 Reductions for securities sold during the period (realized) (1 ) — (68 ) Ending balance $ 18 $ 2 $ 2 |
Available-for-Sale Securities Recognized in Earnings Disclosure [Table Text Block] | Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in earnings were as follows: Years Ended December 31, 2019 2018 2017 (in millions) Gross realized investment gains $ 30 $ 18 $ 63 Gross realized investment losses (14 ) (9 ) (7 ) Other-than-temporary impairments (22 ) — (1 ) Total $ (6 ) $ 9 $ 55 |
Available-for-Sale Securities Contractual Maturity Disclosure [Table Text Block] | Available-for-Sale securities by contractual maturity as of December 31, 2019 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 2,471 $ 2,476 Due after one year through five years 4,723 4,900 Due after five years through 10 years 2,667 2,890 Due after 10 years 4,076 5,265 13,937 15,531 Residential mortgage backed securities 9,954 10,029 Commercial mortgage backed securities 5,473 5,563 Asset backed securities 1,968 2,006 Total $ 31,332 $ 33,129 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Rollforward of the allowance for loan losses [Table Text Block] | The following table presents a rollforward of the allowance for loan losses for the years ended and the ending balance of the allowance for loan losses by impairment method: December 31, 2019 2018 2017 (in millions) Beginning balance $ 24 $ 26 $ 29 Charge-offs (1 ) (2 ) (2 ) Provisions — — (1 ) Ending balance $ 23 $ 24 $ 26 Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 23 24 26 |
Schedule of recorded investment in financing receivables by impairment method and type of loan [Table Text Block] | The recorded investment in financing receivables by impairment method was as follows: December 31, 2019 2018 (in millions) Individually evaluated for impairment $ 17 $ 24 Collectively evaluated for impairment 3,323 3,239 Total $ 3,340 $ 3,263 |
Schedule of commercial mortgage loans by geographic region [Table Text Block] | Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows: Loans Percentage December 31, December 31, 2019 2018 2019 2018 (in millions) East North Central $ 239 $ 216 9 % 8 % East South Central 121 107 4 4 Middle Atlantic 182 187 6 7 Mountain 251 237 9 9 New England 54 62 2 2 Pacific 831 814 30 30 South Atlantic 723 731 26 27 West North Central 214 213 8 8 West South Central 182 148 6 5 2,797 2,715 100 % 100 % Less: allowance for loan losses 19 19 Total $ 2,778 $ 2,696 |
Schedule of commercial mortgage loans by property type [Table Text Block] | Concentrations of credit risk of commercial mortgage loans by property type were as follows: Loans Percentage December 31, December 31, 2019 2018 2019 2018 (in millions) Apartments $ 692 $ 621 25 % 23 % Hotel 51 43 2 1 Industrial 429 453 15 17 Mixed use 78 54 3 2 Office 419 435 15 16 Retail 931 897 33 33 Other 197 212 7 8 2,797 2,715 100 % 100 % Less: allowance for loan losses 19 19 Total $ 2,778 $ 2,696 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |
Schedule of effect of reinsurance on premiums - traditional long-duration products[Table Text Block] | The effect of reinsurance on premiums for the Company’s traditional long-duration contracts was as follows: Years Ended December 31, 2019 2018 2017 (in millions) Direct premiums $ 621 $ 621 $ 637 Reinsurance ceded (224 ) (225 ) (227 ) Net premiums $ 397 $ 396 $ 410 |
Schedule of effect of reinsurance on premiums - short-duration products [Table Text Block] | The effect of reinsurance on premiums for the Company’s short-duration contracts was as follows: Years Ended December 31, 2019 (1) 2018 2017 (in millions) Written premiums Direct $ 864 $ 1,101 $ 1,119 Ceded (23 ) (55 ) (171 ) Total net written premiums $ 841 $ 1,046 $ 948 Earned premiums Direct $ 841 $ 1,124 $ 1,107 Ceded (24 ) (94 ) (123 ) Total net earned premiums $ 817 $ 1,030 $ 984 (1) 2019 amounts include AAH premiums as of September 30, 2019 prior to the sale. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill reported in operating segments [Table Text Block] | The changes in the carrying amount of goodwill reported in the Company’s main operating segments were as follows: Advice & Wealth Management Asset Annuities Protection Consolidated (in millions) Balance at January 1, 2018 $ 279 $ 805 $ 46 $ 45 $ 1,175 Foreign currency translation — (16 ) — — (16 ) Purchase price adjustments — (1 ) — — (1 ) Balance at December 31, 2018 279 788 46 45 1,158 Foreign currency translation — 10 — — 10 Purchase price adjustments — (1 ) — — (1 ) Balance at December 31, 2019 $ 279 $ 797 $ 46 $ 45 $ 1,167 |
Definite-lived intangible assets [Table Text Block] | Definite-lived intangible assets consisted of the following: December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Customer relationships $ 192 $ (146 ) $ 46 $ 184 $ (134 ) $ 50 Contracts 219 (202 ) 17 215 (193 ) 22 Other 197 (147 ) 50 168 (124 ) 44 Total $ 608 $ (495 ) $ 113 $ 567 $ (451 ) $ 116 |
Estimated intangible amortization expenses [Table Text Block] | Estimated intangible amortization expense as of December 31, 2019 for the next five years is as follows: (in millions) 2020 $ 28 2021 25 2022 21 2023 18 2024 6 |
Deferred Acquisition Costs an_2
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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: 2019 2018 2017 (in millions) Balance at January 1 $ 2,776 $ 2,676 $ 2,648 Capitalization of acquisition costs 291 318 302 Amortization, excluding the impact of valuation assumptions review (165 ) (355 ) (279 ) Amortization, impact of valuation assumptions review (14 ) 33 12 Impact of change in net unrealized (gains) losses on securities (175 ) 104 (7 ) Disposal of business (15 ) — — Balance at December 31 $ 2,698 $ 2,776 $ 2,676 |
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: 2019 2018 2017 (in millions) Balance at January 1 $ 251 $ 276 $ 302 Capitalization of sales inducement costs 1 2 4 Amortization, excluding the impact of valuation assumptions review (15 ) (43 ) (35 ) Amortization, impact of valuation assumptions review — — (1 ) Impact of change in net unrealized (gains) losses on securities (19 ) 16 6 Balance at December 31 $ 218 $ 251 $ 276 |
Policyholder Account Balances_2
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | |
Policyholder Account Balances, Future Policy Benefits and Unpaid Claims Disclosure [Table Text Block] | Policyholder account balances, future policy benefits and claims consisted of the following: December 31, 2019 2018 (in millions) Policyholder account balances Fixed annuities (1) $ 8,909 $ 9,338 Variable annuity fixed sub-accounts 5,103 5,129 UL/VUL insurance 3,110 3,063 IUL insurance 2,025 1,728 Other life insurance 646 683 Total policyholder account balances 19,793 19,941 Future policy benefits Variable annuity GMWB 1,462 875 Variable annuity GMAB (2) (39 ) (19 ) Other annuity liabilities 139 26 Fixed annuity life contingent liabilities 1,444 1,459 Life and DI insurance 1,212 1,221 LTC insurance 5,302 4,981 UL/VUL and other life insurance additional liabilities 1,033 749 Total future policy benefits 10,553 9,292 Policy claims and other policyholders’ funds 166 891 Total policyholder account balances, future policy benefits and claims $ 30,512 $ 30,124 (1) Includes fixed deferred annuities, non-life contingent fixed payout annuities and indexed annuity host contracts. (2) Includes the fair value of GMAB embedded derivatives that was a net asset as of both December 31, 2019 and 2018 reported as a contra liability. |
Schedule of Separate Account Liabilities by Policy Type [Table Text Block] | Separate account liabilities consisted of the following: December 31, 2019 2018 (in millions) Variable annuity $ 74,965 $ 66,913 VUL insurance 7,429 6,451 Other insurance 31 29 Threadneedle investment liabilities 5,063 4,532 Total $ 87,488 $ 77,925 |
Variable Annuity and Insuranc_2
Variable Annuity and Insurance Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Schedule of variable annuity guarantees [Table Text Block] | The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities: Variable Annuity Guarantees by Benefit Type (1) December 31, 2019 December 31, 2018 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 $ 62,909 $ 60,967 $ 5 67 $ 55,810 $ 53,872 $ 417 67 Five/six-year reset 7,983 5,263 7 67 7,670 4,941 112 67 One-year ratchet 5,935 5,600 7 70 5,560 5,210 417 70 Five-year ratchet 1,396 1,340 — 66 1,307 1,251 23 66 Other 1,192 1,174 65 73 1,033 1,014 148 72 Total — GMDB $ 79,415 $ 74,344 $ 84 67 $ 71,380 $ 66,288 $ 1,117 67 GGU death benefit $ 1,115 $ 1,063 $ 133 71 $ 992 $ 940 $ 112 70 GMIB $ 186 $ 172 $ 6 70 $ 180 $ 164 $ 12 69 GMWB: GMWB $ 1,999 $ 1,993 $ 1 73 $ 1,990 $ 1,984 $ 3 72 GMWB for life 46,799 46,691 272 68 40,966 40,876 742 68 Total — GMWB $ 48,798 $ 48,684 $ 273 68 $ 42,956 $ 42,860 $ 745 68 GMAB $ 2,528 $ 2,524 $ — 60 $ 2,456 $ 2,450 $ 24 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. |
Schedule of net amount at risk UL secondary guarantees [Table Text Block] | The following table provides information related to insurance guarantees for which the Company has established additional liabilities: December 31, 2019 December 31, 2018 Net Amount at Risk Weighted Average Attained Age Net Amount at Risk Weighted Average Attained Age (in millions, except age) UL secondary guarantees $ 6,550 67 $ 6,513 66 |
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 5 — (554 ) (56 ) 84 Paid claims (4 ) (2 ) — — (29 ) Balance at December 31, 2017 17 6 463 (80 ) 489 Incurred claims 8 2 412 61 201 Paid claims (6 ) — — — (31 ) Balance at December 31, 2018 19 8 875 (19 ) 659 Incurred claims 2 (1 ) 587 (20 ) 141 Paid claims (5 ) — — — (42 ) Balance at December 31, 2019 $ 16 $ 7 $ 1,462 $ (39 ) $ 758 (1) The incurred claims for GMWB and GMAB include the change in the fair value of the liabilities (contra liabilities) less paid claims. |
Schedule of separate account balances by asset type [Table Text Block] | The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: December 31, 2019 2018 (in millions) Mutual funds: Equity $ 44,739 $ 39,764 Bond 23,374 21,190 Other 6,471 5,568 Total mutual funds $ 74,584 $ 66,522 |
Customer Deposits (Tables)
Customer Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of customer deposits [Table Text Block] | Customer deposits consisted of the following: December 31, 2019 2018 (in millions) Fixed rate certificates $ 7,032 $ 7,377 Stock market certificates 456 476 Stock market embedded derivative 7 6 Other 27 33 Less: accrued interest classified in other liabilities (21 ) (7 ) Total investment certificate reserves 7,501 7,885 Banking and brokerage deposits 6,929 3,660 Total $ 14,430 $ 11,545 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt [Table Text Block] | The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows: Outstanding Balance Stated Interest Rate December 31, December 31, 2019 2018 2019 2018 (in millions) Long-term debt: Senior notes due 2019 $ — $ 300 — % 7.3 % Senior notes due 2020 750 750 5.3 5.3 Senior notes due 2022 500 — 3.0 — 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 Finance lease liabilities 57 25 N/A N/A Other (1) (10 ) (8 ) N/A N/A Total long-term debt 3,097 2,867 Short-term borrowings: Federal Home Loan Bank (“FHLB”) advances 201 151 1.8 2.6 Repurchase agreements — 50 — 2.6 Total short-term borrowings 201 201 Total $ 3,298 $ 3,068 N/A Not Applicable. (1) Amounts include adjustments for fair value hedges on the Company’s long-term debt and unamortized discount and debt issuance costs. See Note 17 for information on the Company’s fair value hedges. |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of balances of assets and liabilities measured at fair value on a recurring basis[Table Text Block] | The following tables present the balances of assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis: December 31, 2019 Level 1 Level 2 Level 3 Total (in millions) Assets Cash equivalents $ 267 $ 2,924 $ — $ 3,191 Available-for-Sale securities: Corporate debt securities — 11,437 750 12,187 Residential mortgage backed securities — 10,012 17 10,029 Commercial mortgage backed securities — 5,563 — 5,563 Asset backed securities — 1,987 19 2,006 State and municipal obligations — 1,367 — 1,367 U.S. government and agency obligations 1,680 — — 1,680 Foreign government bonds and obligations — 271 — 271 Other securities — 26 — 26 Total Available-for-Sale securities 1,680 30,663 786 33,129 Equity securities 1 — — 1 Investments at NAV 6 (1) Trading and other securities 12 26 — 38 Separate account assets at NAV 87,488 (1) Investments and cash equivalents segregated for regulatory purposes 14 — — 14 Other assets: Interest rate derivative contracts — 1,455 — 1,455 Equity derivative contracts 162 2,722 — 2,884 Credit derivative contracts — 4 — 4 Foreign exchange derivative contracts 1 17 — 18 Total other assets 163 4,198 — 4,361 Total assets at fair value $ 2,137 $ 37,811 $ 786 $ 128,228 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 3 $ 43 $ 46 IUL embedded derivatives — — 881 881 GMWB and GMAB embedded derivatives — — 763 763 (2) Total policyholder account balances, future policy benefits and claims — 3 1,687 1,690 (3) Customer deposits — 14 — 14 Other liabilities: Interest rate derivative contracts — 418 — 418 Equity derivative contracts 36 3,062 — 3,098 Foreign exchange derivative contracts 1 8 — 9 Other 6 4 44 54 Total other liabilities 43 3,492 44 3,579 Total liabilities at fair value $ 43 $ 3,509 $ 1,731 $ 5,283 December 31, 2018 Level 1 Level 2 Level 3 Total (in millions) Assets Cash equivalents $ 155 $ 2,350 $ — $ 2,505 Available-for-Sale securities: Corporate debt securities — 13,153 913 14,066 Residential mortgage backed securities — 6,193 136 6,329 Commercial mortgage backed securities — 4,857 20 4,877 Asset backed securities — 1,392 6 1,398 State and municipal obligations — 2,345 — 2,345 U.S. government and agency obligations 1,745 — — 1,745 Foreign government bonds and obligations — 298 — 298 Total Available-for-Sale securities 1,745 28,238 1,075 31,058 Equity securities — 1 — 1 Investments at NAV 6 (1) Trading and other securities 36 38 — 74 Separate account assets at NAV 77,925 (1) Investments and cash equivalents segregated for regulatory purposes 301 — — 301 Other assets: Interest rate derivative contracts — 796 — 796 Equity derivative contracts 191 1,527 — 1,718 Foreign exchange derivative contracts 5 55 — 60 Total other assets 196 2,378 — 2,574 Total assets at fair value $ 2,433 $ 33,005 $ 1,075 $ 114,444 Liabilities Policyholder account balances, future policy benefits and claims: Indexed annuity embedded derivatives $ — $ 3 $ 14 $ 17 IUL embedded derivatives — — 628 628 GMWB and GMAB embedded derivatives — — 328 328 (4) Total policyholder account balances, future policy benefits and claims — 3 970 973 (5) Customer deposits — 6 — 6 Other liabilities: Interest rate derivative contracts — 424 — 424 Equity derivative contracts 78 2,076 — 2,154 Credit derivative contracts — 18 — 18 Foreign exchange derivative contracts 4 31 — 35 Other 13 6 30 49 Total other liabilities 95 2,555 30 2,680 Total liabilities at fair value $ 95 $ 2,564 $ 1,000 $ 3,659 (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 $981 million of individual contracts in a liability position and $218 million of individual contracts in an asset position as of December 31, 2019 . (3) The Company’s adjustment for nonperformance risk resulted in a $(502) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2019 . (4) The fair value of the GMWB and GMAB embedded derivatives included $646 million of individual contracts in a liability position and $318 million of individual contracts in an asset position as of December 31, 2018 . (5) The Company’s adjustment for nonperformance risk resulted in a $(726) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2018 . |
Summary of changes in level 3 assets and liabilities measured at fair value on a recurring basis [Table Text Block] | The following tables provide a summary of changes in Level 3 assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis: Available-for-Sale Securities Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance, January 1, 2019 $ 913 $ 136 $ 20 $ 6 $ 1,075 Total gains (losses) included in: Net income (1 ) — — — (1 ) (1) Other comprehensive income (loss) 31 — — (1 ) 30 Purchases 55 477 — 18 550 Settlements (248 ) (12 ) — — (260 ) Transfers into Level 3 — — — 14 14 Transfers out of Level 3 — (584 ) (20 ) (18 ) (622 ) Balance, December 31, 2019 $ 750 $ 17 $ — $ 19 $ 786 Changes in unrealized gains (losses) relating to assets held at December 31, 2019 $ (1 ) $ — $ — $ — $ (1 ) (1) Policyholder Account Balances, Other Liabilities Indexed Annuity Embedded Derivatives IUL GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2019 $ 14 $ 628 $ 328 $ 970 $ 30 Total (gains) losses included in: Net income 8 (2) 209 (2) 80 (3) 297 (3 ) (4) Issues 21 113 361 495 18 Settlements — (69 ) (6 ) (75 ) (1 ) Balance, December 31, 2019 $ 43 $ 881 $ 763 $ 1,687 $ 44 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2019 $ — $ 209 (2) $ 82 (3) $ 291 $ — Available-for-Sale Securities Other Derivatives Contracts 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 ) (1) (3 ) (3) Other comprehensive income (loss) (26 ) 1 — 1 (24 ) — Purchases 15 70 72 32 189 3 Settlements (214 ) (29 ) — (1 ) (244 ) — Transfers into Level 3 — — — 2 2 — Transfers out of Level 3 — (61 ) (52 ) (35 ) (148 ) — Balance, December 31, 2018 $ 913 $ 136 $ 20 $ 6 $ 1,075 $ — Changes in unrealized gains (losses) relating to assets held at December 31, 2018 $ (1 ) $ — $ — $ — $ (1 ) (1) $ — Policyholder Account Balances, Other Liabilities Indexed Annuity Embedded Derivatives IUL GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2018 $ — $ 601 $ (49 ) $ 552 $ 28 Total (gains) losses included in: Net income (3 ) (2) (9 ) (2) 49 (3) 37 2 (4) Issues 17 90 350 457 — Settlements — (54 ) (22 ) (76 ) — Balance, December 31, 2018 $ 14 $ 628 $ 328 $ 970 $ 30 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2018 $ — $ (9 ) (2) $ 47 (3) $ 38 $ — Available-for-Sale Securities Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Common Stocks Total (in millions) Balance, January 1, 2017 $ 1,311 $ 268 $ — $ 68 $ 1 $ 1,648 Total gains (losses) included in: Net income — — — — 1 1 (1) Other comprehensive income (loss) (8 ) 1 — (4 ) — (11 ) Purchases 138 132 65 64 — 399 Sales — — — — (1 ) (1 ) Settlements (302 ) (43 ) — (29 ) — (374 ) Transfers into Level 3 — 20 — 27 8 55 Transfers out of Level 3 — (223 ) (65 ) (119 ) (9 ) (416 ) Balance, December 31, 2017 $ 1,139 $ 155 $ — $ 7 $ — $ 1,301 Changes in unrealized gains (losses) relating to assets held at December 31, 2017 $ — $ — $ — $ (1 ) $ — $ (1 ) (1) Policyholder Account Balances, Other Liabilities IUL GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2017 $ 464 $ 614 $ 1,078 $ 13 Total (gains) losses included in: Net income 87 (2) (977 ) (3) (890 ) 2 (4) Issues 92 326 418 13 Settlements (42 ) (12 ) (54 ) — Balance, December 31, 2017 $ 601 $ (49 ) $ 552 $ 28 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2017 $ 87 (2) $ (946 ) (3) $ (859 ) $ — (1) Included in net investment income in the Consolidated Statements of Operations. (2) Included in interest credited to fixed accounts in the Consolidated Statements of Operations. (3) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. (4) Included in general and administrative expense in the Consolidated Statements of Operations. |
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: December 31, 2019 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 749 Discounted cash flow Yield/spread to U.S. Treasuries 0.8 % – 2.8% 1.2 % Asset backed securities $ 5 Discounted cash flow Annual short-term default rate 3.3% Annual long-term default rate 3.0% Discount rate 12.0% Constant prepayment rate 5.0 % – 10.0% 10.0 % Loss recovery 36.4 % – 63.6% 63.6 % IUL embedded derivatives $ 881 Discounted cash flow Nonperformance risk (1) 65 bps Indexed annuity embedded derivatives $ 43 Discounted cash flow Surrender rate 0.0 % – 50.0% Nonperformance risk (1) 65 bps GMWB and GMAB embedded derivatives $ 763 Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0% – 36.0% Surrender rate 0.1% – 73.5% Market volatility (3) 3.7% – 15.9% Nonperformance risk (1) 65 bps Contingent consideration liabilities $ 44 Discounted cash flow Discount rate 9.0% December 31, 2018 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 912 Discounted cash flow Yield/spread to U.S. Treasuries 1.0 % – 3.6% 1.5 % Asset backed securities $ 6 Discounted cash flow Annual short-term default rate 2.3% Annual long-term default rate 2.5 % – 3.0% 2.9 % Discount rate 11.5% Constant prepayment rate 5.0 % – 10.0% 10.0 % Loss recovery 36.4 % – 63.6% 63.6 % IUL embedded derivatives $ 628 Discounted cash flow Nonperformance risk (1) 119 bps Indexed annuity embedded derivatives $ 14 Discounted cash flow Surrender rate 0.0% – 50.0% Nonperformance risk (1) 119 bps GMWB and GMAB embedded derivatives $ 328 Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0% – 36.0% Surrender rate 0.1% – 73.4% Market volatility (3) 4.0% – 16.1% Nonperformance risk (1) 119 bps Contingent consideration liabilities $ 30 Discounted cash flow Discount rate 9.0% (1) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. (2) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. (3) Market volatility is implied volatility of fund of funds and managed volatility funds. |
Schedule of carrying value and the estimated fair value of financial instruments that are not reported at fair value [Table Text Block] | The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value: December 31, 2019 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,778 $ — $ — $ 2,833 $ 2,833 Policy loans 868 — — 810 810 Receivables 3,168 102 934 2,229 3,265 Restricted and segregated cash 2,372 2,372 — — 2,372 Other investments and assets 671 — 626 46 672 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 9,110 $ — $ — $ 10,061 $ 10,061 Investment certificate reserves 7,508 — — 7,497 7,497 Banking and brokerage deposits 6,929 6,929 — — 6,929 Separate account liabilities — investment contracts 5,403 — 5,403 — 5,403 Debt and other liabilities 3,374 104 3,372 21 3,497 December 31, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,696 $ — $ — $ 2,661 $ 2,661 Policy loans 861 — — 810 810 Receivables 1,677 179 965 489 1,633 Restricted and segregated cash 2,609 2,609 — — 2,609 Other investments and assets 572 — 491 60 551 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 9,609 $ — $ — $ 9,672 $ 9,672 Investment certificate reserves 7,886 — — 7,845 7,845 Brokerage deposits 3,660 3,660 — — 3,660 Separate account liabilities — investment contracts 4,843 — 4,843 — 4,843 (1) Debt and other liabilities 3,296 188 3,059 57 3,304 (1) The fair value of separate account liabilities - investment contracts as of December 31, 2018 was previously incorrectly omitted from the fair value hierarchy based on use of NAV per share as a practical expedient. |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Offsetting [Abstract] | |
Schedule of gross and net information about the Company's assets subject to master netting arrangements [Table Text Block] | The following tables present the gross and net information about the Company’s assets subject to master netting arrangements: December 31, 2019 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 4,258 $ — $ 4,258 $ (2,933 ) $ (1,244 ) $ (73 ) $ 8 OTC cleared 21 — 21 (21 ) — — — Exchange-traded 82 — 82 (5 ) — — 77 Total derivatives 4,361 — 4,361 (2,959 ) (1,244 ) (73 ) 85 Securities borrowed 102 — 102 (14 ) — (85 ) 3 Total $ 4,463 $ — $ 4,463 $ (2,973 ) $ (1,244 ) $ (158 ) $ 88 December 31, 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 Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 2,525 $ — $ 2,525 $ (2,075 ) $ (403 ) $ (26 ) $ 21 OTC cleared 34 — 34 (23 ) — — 11 Exchange-traded 15 — 15 (1 ) — — 14 Total derivatives 2,574 — 2,574 (2,099 ) (403 ) (26 ) 46 Securities borrowed 179 — 179 (37 ) — (139 ) 3 Total $ 2,753 $ — $ 2,753 $ (2,136 ) $ (403 ) $ (165 ) $ 49 (1) Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
Schedule of gross and net information about the Company's liabilities subject to master netting arrangements [Table Text Block] | The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements: December 31, 2019 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 3,473 $ — $ 3,473 $ (2,933 ) $ — $ (540 ) $ — OTC cleared 41 — 41 (21 ) — — 20 Exchange-traded 11 — 11 (5 ) — — 6 Total derivatives 3,525 — 3,525 (2,959 ) — (540 ) 26 Securities loaned 104 — 104 (14 ) — (87 ) 3 Total $ 3,629 $ — $ 3,629 $ (2,973 ) $ — $ (627 ) $ 29 December 31, 2018 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 2,597 $ — $ 2,597 $ (2,075 ) $ (89 ) $ (430 ) $ 3 OTC cleared 24 — 24 (23 ) — — 1 Exchange-traded 10 — 10 (1 ) — — 9 Total derivatives 2,631 — 2,631 (2,099 ) (89 ) (430 ) 13 Securities loaned 188 — 188 (37 ) — (146 ) 5 Repurchase agreements 50 — 50 — — (50 ) — Total $ 2,869 $ — $ 2,869 $ (2,136 ) $ (89 ) $ (626 ) $ 18 (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) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) | |
Schedule of gross fair value of derivative instruments, including embedded derivatives [Table Text Block] | The Company uses derivatives as economic hedges and accounting hedges. The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives: December 31, 2019 December 31, 2018 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 - fair value hedges $ 375 $ 3 $ — $ 675 $ 7 $ — Foreign exchange contracts - net investment hedges 93 — 3 103 1 — Total qualifying hedges 468 3 3 778 8 — Derivatives not designated as hedging instruments Interest rate contracts 57,979 1,452 418 58,244 789 424 Equity contracts 61,921 2,884 3,098 54,079 1,718 2,154 Credit contracts 1,419 4 — 1,209 — 18 Foreign exchange contracts 3,412 18 6 4,908 59 35 Other contracts 1 — — 2 — — Total non-designated hedges 124,732 4,358 3,522 118,442 2,566 2,631 Embedded derivatives GMWB and GMAB (4) N/A — 763 N/A — 328 IUL N/A — 881 N/A — 628 Indexed annuities N/A — 46 N/A — 17 SMC N/A — 14 N/A — 6 Total embedded derivatives N/A — 1,704 N/A — 979 Total derivatives $ 125,200 $ 4,361 $ 5,229 $ 119,220 $ 2,574 $ 3,610 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 $2.3 billion and $1.4 billion as of December 31, 2019 and 2018 , respectively. See Note 16 for additional information related to master netting arrangements and cash collateral. See Note 5 for information about derivatives held by consolidated VIEs. (4) The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2019 included $981 million of individual contracts in a liability position and $218 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2018 included $646 million of individual contracts in a liability position and $318 million of individual contracts in an asset position. |
Schedule of gain (loss) on derivative instruments [Table Text Block] | The following table presents a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Operations: Net Investment Income Banking and Deposit Interest Expense Distribution Expenses Interest Credited to Fixed Accounts Benefits, Claims, Losses and Settlement Expenses General and Administrative Expense (in millions) Year Ended December 31, 2019 Interest rate contracts $ (34 ) $ — $ — $ — $ 1,097 $ — Equity contracts — 11 99 117 (1,547 ) 16 Credit contracts — — — — (73 ) — Foreign exchange contracts — — — — (30 ) (1 ) Other contracts — — — — — — GMWB and GMAB embedded derivatives — — — — (435 ) — IUL embedded derivatives — — — (140 ) — — Indexed annuity embedded derivatives — — — (8 ) — — SMC embedded derivatives — (9 ) — — — — Total gain (loss) $ (34 ) $ 2 $ 99 $ (31 ) $ (988 ) $ 15 Year Ended December 31, 2018 Interest rate contracts $ 12 $ — $ — $ — $ (312 ) $ — Equity contracts — (4 ) (42 ) (49 ) 302 (7 ) Credit contracts — — — — 7 — Foreign exchange contracts (2 ) — — — 1 (9 ) Other contracts — — — — (3 ) — GMWB and GMAB embedded derivatives — — — — (377 ) — IUL embedded derivatives — — — 63 — — Indexed annuity embedded derivatives — — — 3 — — SMC embedded derivatives — 4 — — — — Total gain (loss) $ 10 $ — $ (42 ) $ 17 $ (382 ) $ (16 ) Year Ended December 31, 2017 Interest rate contracts $ (3 ) $ — $ — $ — $ 1 $ — Equity contracts (10 ) 4 54 75 (1,081 ) 11 Credit contracts — — — — (22 ) — Foreign exchange contracts — — 3 — (23 ) 6 Other contracts — — — — (2 ) — GMWB and GMAB embedded derivatives — — — — 663 — IUL embedded derivatives — — — (45 ) — — SMC embedded derivatives — (4 ) — — — — Total gain (loss) $ (13 ) $ — $ 57 $ 30 $ (464 ) $ 17 |
Schedule of payments to make and receive for options [Table Text Block] | The deferred premium associated with certain of the above options and swaptions is paid or received semi-annually over the life of the contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of December 31, 2019 : Premiums Payable Premiums Receivable (in millions) 2020 $ 214 $ 133 2021 152 112 2022 204 198 2023 126 58 2024 70 10 2025-2029 351 7 Total $ 1,117 $ 518 |
Schedule of impact of fair value hedges | The following table is a summary of the impact of derivatives designated as hedges on the Consolidated Statements of Operations: Years Ended December 31, 2019 2018 Total interest and debt expense per Consolidated Statements of Operations $ 214 $ 245 Gain (loss) on interest rate contracts designated as fair value hedges: Hedged items $ 5 $ 15 Derivatives designated as fair value hedges (5 ) (15 ) Gain (loss) on interest rate contracts designated as cash flow hedges: Amount of gain (loss) reclassified from AOCI into income $ 2 $ — |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Components of share-based compensation expense, net of forfeitures [Table Text Block] | The components of the Company’s share-based compensation expense, net of forfeitures, were as follows: December 31, 2019 2018 2017 (in millions) Stock option $ 31 $ 35 $ 32 Restricted stock 22 24 24 Restricted stock units 82 85 65 Liability awards 53 2 45 Total $ 188 $ 146 $ 166 |
Weighted average assumptions used for stock option grants [Table Text Block] | The following weighted average assumptions were used for stock option grants: 2019 2018 2017 Dividend yield 3.0 % 2.3 % 2.3 % Expected volatility 27 % 24 % 30 % Risk-free interest rate 2.4 % 2.4 % 1.9 % Expected life of stock option (years) 5.0 5.0 5.0 |
Summary of stock option activity [Table Text Block] | A summary of the Company’s stock option activity for 2019 is presented below (shares and intrinsic value in millions): Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1 6.1 $ 115.73 6.7 $ 57 Granted 1.3 126.89 Exercised (1.0 ) 86.90 Forfeited (0.1 ) 148.23 Outstanding at December 31 6.3 122.12 6.6 292 Exercisable at December 31 4.0 111.32 5.5 227 |
Summary of restricted stock award activity [Table Text Block] | A summary of activity for the Company’s restricted stock awards, restricted stock units granted to employees (including advisors), compensation and commission deferrals into stock and deferred share units for 2019 is presented below (shares in millions): Shares Weighted Average Grant-date Fair Value Non-vested shares at January 1 1.1 $ 130.17 Granted 0.8 130.84 Deferred 0.2 140.57 Vested (0.8 ) 128.86 Forfeited (0.1 ) 131.47 Non-vested shares at December 31 1.2 133.40 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of other comprehensive income (loss) [Table Text Block] | The following tables provide the amounts related to each component of OCI: Year Ended December 31, 2019 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ 1,404 $ (309 ) $ 1,095 Reclassification of net (gains) losses on securities included in net income (2) 6 (1 ) 5 Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables (688 ) 144 (544 ) Net unrealized gains (losses) on securities 722 (166 ) 556 Net unrealized gains (losses) on derivatives: Reclassification of net (gains) losses on derivatives included in net income (3) (3 ) 1 (2 ) Net unrealized gains (losses) on derivatives (3 ) 1 (2 ) Defined benefit plans: Prior service credit 14 (3 ) 11 Net gain (loss) arising during the period (36 ) 7 (29 ) Defined benefit plans (22 ) 4 (18 ) Foreign currency translation 18 (1 ) 17 Total other comprehensive income (loss) $ 715 $ (162 ) $ 553 Year Ended December 31, 2018 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ (1,039 ) $ 237 $ (802 ) Reclassification of net (gains) losses on securities included in net income (2) (9 ) 2 (7 ) Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables 435 (91 ) 344 Net unrealized gains (losses) on securities (613 ) 148 (465 ) Defined benefit plans: Net gain (loss) arising during the period (30 ) 7 (23 ) Defined benefit plans (30 ) 7 (23 ) Foreign currency translation (32 ) 1 (31 ) Total other comprehensive income (loss) $ (675 ) $ 156 $ (519 ) Year Ended December 31, 2017 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ 243 $ (77 ) $ 166 Reclassification of net (gains) losses on securities included in net income (2) (55 ) 19 (36 ) Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables (180 ) 57 (123 ) Net unrealized gains (losses) on securities 8 (1 ) 7 Net unrealized gains (losses) on derivatives: Reclassification of net (gains) losses on derivatives included in net income (3) 5 (2 ) 3 Net unrealized gains (losses) on derivatives 5 (2 ) 3 Defined benefit plans: Prior service credit 2 (1 ) 1 Net gain (loss) arising during the period 38 (11 ) 27 Defined benefit plans 40 (12 ) 28 Foreign currency translation 74 (82 ) (4) (8 ) Other (1 ) — (1 ) Total other comprehensive income (loss) $ 126 $ (97 ) $ 29 (1) Includes OTTI losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period. (2) Reclassification amounts are recorded in net investment income. (3) Includes a $2 million , $2 million and $2 million pretax gain reclassified to interest and debt expenses and nil , a $2 million and $5 million pretax loss reclassified to net investment income for the years ended December 31, 2019 , 2018 and 2017 , respectively. (4) Includes an $87 million decrease to OCI related to deferred taxes on currency translations adjustments. |
Information related to amounts reclassified from AOCI [Table Text Block] | The following table presents the changes in the balances of each component of AOCI, net of tax: Net Unrealized Gains (Losses) on Securities Net Unrealized Gains (Losses) on Derivatives Defined Benefit Plans Foreign Currency Translation Other Total (in millions) Balance, January 1, 2017 $ 479 (1) $ 5 $ (125 ) $ (159 ) $ — $ 200 OCI before reclassifications 43 — 20 (8 ) (1 ) 54 Amounts reclassified from AOCI (36 ) 3 8 — — (25 ) Total OCI 7 3 28 (8 ) (1 ) 29 Balance, December 31, 2017 486 (1) 8 (97 ) (167 ) (1 ) 229 Cumulative effect of adoption of equity securities guidance (1 ) — — — — (1 ) OCI before reclassifications (458 ) — (36 ) (31 ) — (525 ) Amounts reclassified from AOCI (7 ) — 13 — — 6 Total OCI (465 ) — (23 ) (31 ) — (519 ) Balance, December 31, 2018 20 (1) 8 (120 ) (198 ) (1 ) (291 ) OCI before reclassifications 551 — (28 ) 17 — 540 Amounts reclassified from AOCI 5 (2 ) 10 — — 13 Total OCI 556 (2 ) (18 ) 17 — 553 Balance, December 31, 2019 $ 576 (1) $ 6 $ (138 ) $ (181 ) $ (1 ) $ 262 (1) Includes $1 million , $1 million and $1 million of noncredit related impairments on securities and net unrealized gains (losses) on previously impaired securities as of December 31, 2019 , 2018 and 2017 , respectively. |
Earnings per Share Attributab_2
Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Common Share | The computations of basic and diluted earnings per share is as follows: Years Ended December 31, 2019 2018 2017 (in millions, except per share amounts) Numerator: Net income $ 1,893 $ 2,098 $ 1,480 Denominator: Basic: Weighted-average common shares outstanding 134.1 145.6 154.1 Effect of potentially dilutive nonqualified stock options and other share-based awards 1.9 2.1 2.6 Diluted: Weighted-average common shares outstanding 136.0 147.7 156.7 Earnings per share attributable to Ameriprise Financial, Inc. common shareholders: Basic $ 14.12 $ 14.41 $ 9.60 Diluted $ 13.92 $ 14.20 $ 9.44 |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Summary of Statutory Net Gain from Operations and Net Income [Table Text Block] | Statutory net gain from operations and net income (loss) are summarized as follows: Years Ended December 31, 2019 2018 2017 (in millions) RiverSource Life Statutory net gain from operations $ 1,505 $ 1,686 $ 958 Statutory net income (loss) 786 1,628 222 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax provision (benefit) [Table Text Block] | The components of income tax provision attributable to continuing operations were as follows: Years Ended December 31, 2019 2018 2017 (in millions) Current income tax Federal $ 531 $ 275 $ 468 State and local 80 45 58 Foreign 36 41 52 Total current income tax 647 361 578 Deferred income tax Federal (297 ) 20 169 State and local (13 ) 2 (5 ) Foreign 2 3 (8 ) Total deferred income tax (308 ) 25 156 Total income tax provision $ 339 $ 386 $ 734 |
Schedule of geographic sources of pretax income [Table Text Block] | The geographic sources of pretax income from continuing operations were as follows: Years Ended December 31, 2019 2018 2017 (in millions) United States $ 2,045 $ 2,263 $ 1,988 Foreign 187 221 226 Total $ 2,232 $ 2,484 $ 2,214 |
Reconciliation of the income tax provision [Table Text Block] | The principal reasons that the aggregate income tax provision attributable to continuing operations is different from that computed by using the U.S. statutory rates of 21% for 2019 and 2018 and 35% for 2017 were as follows: Years Ended December 31, 2019 2018 2017 Tax at U.S. statutory rate 21.0 % 21.0 % 35.0 % Changes in taxes resulting from: Low income housing tax credits (3.6 ) (3.2 ) (3.4 ) State taxes, net of federal benefit 2.4 1.5 — Foreign tax credits, net of addback (2.2 ) (1.1 ) — Dividends received deduction (1.8 ) (1.6 ) (5.8 ) Impact of the Tax Act — — 13.0 Incentive compensation — — (3.0 ) Foreign taxes — — (2.0 ) Other, net (0.6 ) (1.1 ) (0.7 ) Income tax provision 15.2 % 15.5 % 33.1 % |
Schedule of significant components of deferred income tax assets and liabilities [Table Text Block] | The significant components of the Company’s deferred income tax assets and liabilities, which are included net within other assets or other liabilities on the Consolidated Balance Sheets, were as follows: December 31, 2019 2018 (in millions) Deferred income tax assets Liabilities for policyholder account balances, future policy benefits and claims $ 945 $ 725 Deferred compensation 406 329 Investment related 188 145 Right of use lease liability 59 — Postretirement benefits 45 44 Other 47 57 Gross deferred income tax assets 1,690 1,300 Less: valuation allowance 19 20 Total deferred income tax assets 1,671 1,280 Deferred income tax liabilities Deferred acquisition costs 456 437 Net unrealized gains on Available-for-Sale securities 186 30 Intangible assets 115 104 Depreciation expense 94 101 Goodwill 64 60 Right of use lease asset 54 — Deferred sales inducement costs 50 53 Other 6 6 Gross deferred income tax liabilities 1,025 791 Net deferred income tax assets $ 646 $ 489 |
Reconciliation of gross unrecognized tax benefits (expense) [Table Text Block] | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows: 2019 2018 2017 (in millions) Balance at January 1 $ 92 $ 76 $ 115 Additions based on tax positions related to the current year 15 22 16 Additions for tax positions of prior years 39 9 3 Reductions for tax positions of prior years (17 ) (3 ) (57 ) Audit settlements (29 ) (12 ) (1 ) Balance at December 31 $ 100 $ 92 $ 76 |
Retirement Plans and Profit S_2
Retirement Plans and Profit Sharing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plans | |
Reconciliation of the changes in the defined postretirement benefit plan obligation [Table Text Block] | The following table provides a reconciliation of changes in the benefit obligation: Pension Plans Other Postretirement Plans 2019 2018 2019 2018 (in millions) Benefit obligation, January 1 $ 967 $ 995 $ 14 $ 15 Service cost 44 48 — — Interest cost 36 30 — 1 Plan change (15 ) — — — Benefits paid (9 ) (9 ) (1 ) (1 ) Actuarial (gain) loss 131 (59 ) 1 (1 ) Curtailments (7 ) — — — Settlements (42 ) (29 ) — — Foreign currency rate changes 6 (9 ) — — Benefit obligation, December 31 $ 1,111 $ 967 $ 14 $ 14 |
Schedule of amounts recognized in the Consolidated Balance Sheets [Table Text Block] | The following table provides the amounts recognized in the Consolidated Balance Sheets as of December 31, which equal the funded status of the plans: Pension Plans Other Postretirement Plans 2019 2018 2019 2018 (in millions) Benefit liability $ (278 ) $ (256 ) $ (14 ) $ (14 ) Benefit asset 5 17 — — Net amount recognized $ (273 ) $ (239 ) $ (14 ) $ (14 ) |
Accumulated benefit obligations in excess of the fair value of plan assets [Table Text Block] | The following table provides information for pension plans with benefit obligations in excess of plan assets: December 31, 2019 2018 (in millions) Pension plans with accumulated benefit obligations in excess of plan assets Accumulated benefit obligation $ 875 $ 762 Fair value of plan assets 644 559 Pension plans with projected benefit obligations in excess of plan assets Projected benefit obligation $ 922 $ 815 Fair value of plan assets 644 559 |
Schedule of weighted average assumptions used to determine benefit obligations [Table Text Block] | The weighted average assumptions used to determine benefit obligations were as follows: Pension Plans Other Postretirement Plans 2019 2018 2019 2018 Discount rates 2.97 % 4.01 % 2.99 % 4.11 % Rates of increase in compensation levels 4.01 4.25 N/A N/A Interest crediting rates for cash balance plans 5.00 5.00 N/A N/A |
Defined Benefit Plan, Assumptions [Table Text Block] | The weighted average assumptions used to determine net periodic benefit cost of pension plans were as follows: 2019 2018 2017 Discount rates 4.00 % 3.30 % 3.64 % Rates of increase in compensation levels 4.25 4.29 4.39 Expected long-term rates of return on assets 7.18 7.11 7.13 Interest crediting rates for cash balance plans 5.00 5.00 5.00 |
Schedule of pension plan assets measured at fair value on a recurring basis [Table Text Block] | The following tables present the Company’s pension plan assets measured at fair value on a recurring basis: Asset Category December 31, 2019 Level 1 Level 2 Level 3 Total (in millions) Equity securities: U.S. large cap stocks $ 119 $ — $ — $ 119 U.S. small cap stocks 91 — — 91 Non-U.S. large cap stocks 32 — — 32 Debt securities: U.S. investment grade bonds 43 24 — 67 U.S. high yield bonds 6 — — 6 Non-U.S. investment grade bonds 16 — — 16 Cash equivalents at NAV 30 (1) Collective investment funds at NAV 232 (1) Real estate investment trusts at NAV 20 (1) Hedge funds at NAV 29 (1) Pooled pension funds at NAV 196 (1) Total $ 307 $ 24 $ — $ 838 Asset Category December 31, 2018 Level 1 Level 2 Level 3 Total (in millions) Equity securities: U.S. large cap stocks $ 90 $ — $ — $ 90 U.S. small cap stocks 70 — — 70 Non-U.S. large cap stocks 25 — — 25 Non-U.S. small cap stocks 22 — — 22 Debt securities: U.S. investment grade bonds 39 23 — 62 U.S. high yield bonds 5 — — 5 Non-U.S. investment grade bonds 15 — — 15 Cash equivalents at NAV 36 (1) Collective investment funds at NAV 188 (1) Real estate investment trusts at NAV 19 (1) Hedge funds at NAV 27 (1) Pooled pension funds at NAV 169 (1) Total $ 266 $ 23 $ — $ 728 (1) |
Schedule of expected benefit payments to retirees under retirement plans [Table Text Block] | The Company’s pension plans expect to make benefit payments to retirees as follows: Pension Plans Other Postretirement Plans (in millions) 2020 $ 86 $ 1 2021 62 1 2022 67 1 2023 83 1 2024 72 1 2025-2029 381 5 |
Pension Plans [Member] | |
Defined Benefit Plans | |
Schedule of components of net periodic pension cost [Table Text Block] | All components of the net periodic benefit cost are recorded in general and administrative expense and were as follows: Years Ended December 31, 2019 2018 2017 (in millions) Service cost $ 44 $ 48 $ 47 Interest cost 36 30 28 Expected return on plan assets (53 ) (48 ) (45 ) Amortization of prior service costs — — (1 ) Amortization of net loss 5 11 10 Other 8 5 3 Net periodic benefit cost $ 40 $ 46 $ 42 |
Reconciliation of the changes in the fair value of plan assets for the pension plans [Table Text Block] | The following table provides a reconciliation of changes in the fair value of assets: Pension Plans 2019 2018 (in millions) Fair value of plan assets, January 1 $ 728 $ 748 Actual return on plan assets 130 (59 ) Employer contributions 24 86 Benefits paid (9 ) (9 ) Settlements (42 ) (29 ) Foreign currency rate changes 7 (9 ) Fair value of plan assets, December 31 $ 838 $ 728 |
Commitments, Guarantees and C_2
Commitments, Guarantees and Contingencies Commitments, Guarantees and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Unused Commitments to Extend Credit [Table Text Block] | The following table presents the Company’s funding commitments as of December 31: 2019 2018 (in millions) Commercial mortgage loans $ 60 $ 57 Affordable housing and other real estate partnerships 22 59 Private funds 12 — Consumer lines of credit 1 1 Total funding commitments $ 95 $ 117 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information [Table Text Block] | The following tables summarize selected financial information by segment and reconcile segment totals to those reported on the consolidated financial statements: December 31, 2019 2018 (in millions) Advice & Wealth Management $ 17,607 $ 14,480 Asset Management 8,226 7,558 Annuities 98,195 88,771 Protection 16,980 17,126 Corporate & Other 10,820 9,281 Total assets $ 151,828 $ 137,216 Years Ended December 31, 2019 2018 2017 (in millions) Adjusted operating net revenues: Advice & Wealth Management $ 6,599 $ 6,189 $ 5,616 Asset Management 2,913 3,011 3,072 Annuities 2,459 2,476 2,499 Protection 1,047 1,096 983 Corporate & Other 1,094 1,336 1,234 Less: Eliminations (1) 1,402 1,414 1,411 Total segment adjusted operating net revenues 12,710 12,694 11,993 Net realized gains (losses) (6 ) 10 46 Revenue attributable to consolidated investment entities 88 127 94 Market impact on IUL benefits, net — (7 ) 1 Market impact of hedges on investments (35 ) 11 (2 ) Integration and restructuring charges (3 ) — — Gain on disposal of business 213 — — Total net revenues per consolidated statements of operations $ 12,967 $ 12,835 $ 12,132 (1) Represents the elimination of intersegment revenues recognized for the years ended December 31, 2019 , 2018 and 2017 in each segment as follows: Advice and Wealth Management ( $924 , $952 and $953 , respectively); Asset Management ( $55 , $50 and $47 , respectively); Annuities ( $367 , $356 and $351 , respectively); Protection ( $62 , $61 and $62 , respectively); and Corporate & Other ( $(6) , $(5) and $(2) , respectively). Years Ended December 31, 2019 2018 2017 (in millions) Adjusted operating earnings: Advice & Wealth Management $ 1,509 $ 1,389 $ 1,163 Asset Management 661 728 740 Annuities 497 496 629 Protection 261 255 256 Corporate & Other (320 ) (304 ) (468 ) Total segment adjusted operating earnings 2,608 2,564 2,320 Net realized gains (losses) (4 ) 9 44 Net income (loss) attributable to consolidated investment entities 1 (1 ) 2 Market impact on variable annuity guaranteed benefits, net (579 ) (31 ) (232 ) Market impact on IUL benefits, net (12 ) (17 ) 4 Market impact on fixed annuity benefits — 1 — Mean reversion related impacts 57 (33 ) 83 Market impact of hedges on investments (35 ) 11 (2 ) Integration and restructuring charges (17 ) (19 ) (5 ) Gain on disposal of business 213 — — Pretax income per consolidated statements of operations $ 2,232 $ 2,484 $ 2,214 |
Quarterly Financial Data Quarte
Quarterly Financial Data Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | 2019 2018 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31 (in millions, except per share data) Net revenues $ 3,287 $ 3,317 $ 3,245 $ 3,118 $ 3,179 $ 3,292 $ 3,196 $ 3,168 Pretax income 534 641 587 470 652 588 548 696 Net income 463 543 492 395 539 503 462 594 Earnings per share: Basic $ 3.59 $ 4.09 $ 3.61 $ 2.85 $ 3.81 $ 3.48 $ 3.14 $ 3.97 Diluted $ 3.53 $ 4.04 $ 3.57 $ 2.82 $ 3.76 $ 3.43 $ 3.10 $ 3.91 Weighted average common shares outstanding: Basic 129.0 132.7 136.1 138.8 141.5 144.4 147.0 149.5 Diluted 131.3 134.5 138.0 140.1 143.2 146.5 149.0 152.1 Cash dividends declared per common share $ 0.97 $ 0.97 $ 0.97 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.83 |
SCHEDULE I - CONDENSED FINANC_2
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Statements of Operations [Table Text Block] | Schedule I — Condensed Financial Information of Registrant (Parent Company Only) Years Ended December 31, 2019 2018 2017 (in millions) Revenues Management and financial advice fees $ (1 ) $ (1 ) $ (1 ) Net investment income 9 34 11 Other revenues 14 4 8 Gain on disposal of business 213 — — Total revenues 235 37 18 Banking and deposit interest expense 9 7 5 Total net revenues 226 30 13 Expenses Benefits, claims, losses and settlement expenses 49 4 76 Distribution expenses 24 4 18 Interest and debt expense 126 120 116 General and administrative expense 244 210 246 Total expenses 443 338 456 Pretax loss before equity in earnings of subsidiaries (217 ) (308 ) (443 ) Income tax benefit (38 ) (73 ) (47 ) Loss before equity in earnings of subsidiaries (179 ) (235 ) (396 ) Equity in earnings of subsidiaries 2,072 2,333 1,876 Net income 1,893 2,098 1,480 Other comprehensive income (loss), net of tax 553 (519 ) 29 Total comprehensive income $ 2,446 $ 1,579 $ 1,509 See Notes to Condensed Financial Information of Registrant. |
Condensed Balance Sheets [Table Text Block] | Schedule I — Condensed Financial Information of Registrant (Parent Company Only) December 31, 2019 2018 (in millions, except share amounts) Assets Cash and cash equivalents $ 730 $ 476 Investments 1,430 467 Loans to subsidiaries 361 372 Due from subsidiaries 305 288 Receivables 5 5 Land, buildings, equipment, and software, net of accumulated depreciation of $952 and $1,168, respectively 207 237 Investments in subsidiaries 6,665 7,231 Other assets 1,136 1,209 Total assets $ 10,839 $ 10,285 Liabilities and Shareholders’ Equity Liabilities: Accounts payable and accrued expenses $ 797 $ 636 Due to subsidiaries 137 146 Borrowings from subsidiaries 401 346 Long-term debt 3,097 2,867 Other liabilities 678 702 Total liabilities 5,110 4,697 Shareholders’ Equity: Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 329,842,827 and 328,537,214, respectively) 3 3 Additional paid-in capital 8,461 8,260 Retained earnings 14,279 12,909 Treasury shares, at cost (205,903,593 and 192,206,467 shares, respectively) (17,276 ) (15,293 ) Accumulated other comprehensive income (loss), net of tax, including amounts applicable to equity investments in subsidiaries 262 (291 ) Total shareholders’ equity 5,729 5,588 Total liabilities and equity $ 10,839 $ 10,285 See Notes to Condensed Financial Information of Registrant. |
Condensed Statements of Cash Flows [Table Text Block] | Schedule I — Condensed Financial Information of Registrant Condensed Statements of Cash Flows (Parent Company Only) Years Ended December 31, 2019 2018 2017 (in millions) Cash Flows from Operating Activities Net income $ 1,893 $ 2,098 $ 1,480 Equity in earnings of subsidiaries (2,072 ) (2,333 ) (1,876 ) Dividends received from subsidiaries 2,721 2,093 1,589 Gain on disposal of business before affinity partner payment (313 ) — — Other operating activities, primarily with subsidiaries 596 57 712 Net cash provided by operating activities 2,825 1,915 1,905 Cash Flows from Investing Activities Available-for-Sale securities: Maturities, sinking fund payments and calls 204 94 44 Purchases (1,153 ) (222 ) (77 ) Proceeds from sale of other investments 6 — 3 Purchase of other investments (12 ) — — Purchase of land, buildings, equipment and software (42 ) (62 ) (69 ) Proceeds from disposal of business 1,138 — — Contributions to subsidiaries (368 ) (73 ) (79 ) Return of capital from subsidiaries 18 454 47 Repayment of loans to subsidiaries 2,468 1,623 1,277 Issuance of loans to subsidiaries (2,457 ) (1,768 ) (1,337 ) Other, net (65 ) 2 (91 ) Net cash provided by investing activities (263 ) 48 (282 ) Cash Flows from Financing Activities Dividends paid to shareholders (504 ) (506 ) (491 ) Repurchase of common shares (1,943 ) (1,630 ) (1,485 ) Cash paid for purchased options with deferred premiums (107 ) (20 ) (19 ) Issuance of long-term debt, net of issuance costs 497 — — Repayments of long-term debt (313 ) (13 ) (11 ) Borrowings from subsidiaries 132 472 124 Repayments of borrowings from subsidiaries (79 ) (273 ) (15 ) Exercise of stock options 3 2 15 Other, net 6 (13 ) (1 ) Net cash used in financing activities (2,308 ) (1,981 ) (1,883 ) Net increase (decrease) in cash and cash equivalents 254 (18 ) (260 ) Cash and cash equivalents at beginning of year 476 494 754 Cash and cash equivalents at end of year $ 730 $ 476 $ 494 Supplemental Disclosures: Interest paid on debt $ 123 $ 126 $ 128 Income taxes paid (received), net (109 ) (27 ) (368 ) Non-cash dividends from subsidiaries 81 195 109 See Notes to Condensed Financial Information of Registrant. |
Leases Leases (Tables)
Leases Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease Assets and Liabilities [Table Text Block] | The following table presents the balances for operating and finance ROU assets and lease liabilities: Leases Balance Sheet Classification December 31, 2019 Assets Operating lease assets Other assets $ 215 Finance lease assets Other assets 52 Total lease assets $ 267 Liabilities Operating lease liabilities Other liabilities $ 243 Finance lease liabilities Long-term debt 57 Total lease liabilities $ 300 |
Maturity of Lease Liabilities [Table Text Block] | Maturity of Lease Liabilities December 31, 2019 Finance Leases Operating Leases (in millions) 2020 $ 14 $ 55 2021 10 50 2022 10 42 2023 10 35 2024 10 24 Thereafter 9 63 Total lease payments 63 269 Less: Interest (6 ) (26 ) Present value of lease liabilities $ 57 $ 243 Weighted-average remaining lease term (years) 5.8 6.1 Weighted-average discount rate 3.4 % 3.0 % Maturities of lease liabilities prior to the adoption of new lease guidance were as follows: Maturity of Lease Liabilities December 31, 2018 Operating Leases (in millions) 2019 $ 61 2020 53 2021 40 2022 33 2023 26 Thereafter 65 Total lease payments $ 278 |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Out-of-period-correction) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Operating Income (Loss) [Member] | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 12 |
DAC [Member] | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | 8 |
Benefits, Claims, Losses and Settlement Expenses [Member] | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | 4 |
Income Tax Provision [Member] | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | 20 |
Other Comprehensive Income (Loss) [Member] | Decrease to other comprehensive income related to deferred taxes on currency translation adjustments [Member] | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 87 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Principles of Consolidation | |||
Maximum percentage of voting interest required to be held to be accounted for, under the cost method | 20.00% | ||
Financing Receivables | |||
Nonaccrual status period for loans | 90 days | ||
Land, Buildings, Equipment and Software | |||
Land, buildings, equipment and software, net of accumulated depreciation | $ 610 | $ 635 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 1,800 | 2,000 | |
Depreciation and amortization expense for the year | $ 147 | $ 146 | $ 141 |
Minimum [Member] | |||
Principles of Consolidation | |||
Voting interest required for consolidation | 50.00% | ||
Percentage of voting interest required to be held to be accounted for under the equity method | 20.00% | ||
Land, Buildings, Equipment and Software | |||
Amortization periods | 3 years | ||
Lease renewal term | 1 year | ||
Maximum [Member] | |||
Principles of Consolidation | |||
Percentage of voting interest required to be held to be accounted for under the equity method | 50.00% | ||
Land, Buildings, Equipment and Software | |||
Amortization periods | 39 years | ||
Lease renewal term | 20 years |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements Leases (ASU 2016-02) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Operating lease liability | $ 243 | $ 278 |
Accounting Standards Update 2016-02 [Member] | ||
Right-of-Use Asset | 274 | |
Operating lease liability | $ 295 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements Revenue from Contracts with Customers ASU 2014-09 (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Accounting Standards Update 2014-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 103 |
Revenue Benchmark [Member] | Accounting Standards Update 2014-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 105 |
General and administrative expense [Member] | Accounting Standards Update 2014-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 105 |
Recent Accounting Pronounceme_4
Recent Accounting Pronouncements Stock Compensation ASU 2016-09 (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Stock Compensation [Abstract] | |
Net Excess Tax Benefits Recognized in Income Tax Provision | $ 70 |
Excess Tax Benefit from Share-based Compensation, Operating Activities | $ 70 |
Revenue from Contract with Cu_3
Revenue from Contract with Customer Revenue from Contract with Customer (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disaggregation of Revenue [Line Items] | ||||||||||||
Less: Banking and deposit interest expense | $ 136 | $ 89 | $ 48 | |||||||||
Total segment net revenues | 12,710 | 12,694 | 11,993 | |||||||||
Total net revenues | $ 3,287 | $ 3,317 | $ 3,245 | $ 3,118 | $ 3,179 | $ 3,292 | $ 3,196 | $ 3,168 | 12,967 | 12,835 | 12,132 | |
Consolidation, Eliminations [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total segment net revenues | 1,410 | 1,431 | 1,426 | |||||||||
Total before eliminations [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 9,604 | 9,336 | 8,845 | |||||||||
Revenue from other sources | [1] | 4,917 | 5,025 | 4,764 | ||||||||
Total segment gross revenues | 14,521 | 14,361 | 13,609 | |||||||||
Less: Banking and deposit interest expense | 144 | 95 | 51 | |||||||||
Total segment net revenues | 14,377 | 14,266 | 13,558 | |||||||||
Total before eliminations [Member] | Management and financial advice fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 6,371 | 6,120 | 5,766 | |||||||||
Total before eliminations [Member] | Management and financial advice fees [Member] | Asset Management: Retail [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 1,783 | 1,874 | 1,851 | |||||||||
Total before eliminations [Member] | Management and financial advice fees [Member] | Asset Management: Institutional [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 495 | 453 | 495 | |||||||||
Total before eliminations [Member] | Management and financial advice fees [Member] | Advisory fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 3,156 | 2,865 | 2,494 | |||||||||
Total before eliminations [Member] | Management and financial advice fees [Member] | Financial Planning Fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 330 | 318 | 297 | |||||||||
Total before eliminations [Member] | Management and financial advice fees [Member] | Transaction and other fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 607 | 610 | 629 | |||||||||
Total before eliminations [Member] | Distribution fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 3,052 | 3,041 | 2,913 | |||||||||
Total before eliminations [Member] | Distribution fees [Member] | Mutual Funds [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 963 | 989 | 1,054 | |||||||||
Total before eliminations [Member] | Distribution fees [Member] | Insurance and annuity products [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 1,409 | 1,430 | 1,384 | |||||||||
Total before eliminations [Member] | Distribution fees [Member] | Other products [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 680 | 622 | 475 | |||||||||
Total before eliminations [Member] | Other revenues [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 181 | 175 | 166 | |||||||||
Total Segment [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 9,604 | 9,336 | 8,845 | |||||||||
Revenue from other sources | [1] | 4,652 | 4,867 | 4,610 | ||||||||
Total segment gross revenues | 14,256 | 14,203 | 13,455 | |||||||||
Less: Banking and deposit interest expense | 144 | 95 | 51 | |||||||||
Total segment net revenues | 14,112 | 14,108 | 13,404 | |||||||||
Total net revenues | 12,710 | 12,694 | 11,993 | |||||||||
Total Segment [Member] | Consolidation, Eliminations [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total segment net revenues | 1,402 | 1,414 | 1,411 | |||||||||
Total Segment [Member] | Management and financial advice fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 6,371 | 6,120 | 5,766 | |||||||||
Total Segment [Member] | Management and financial advice fees [Member] | Asset Management: Retail [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 1,783 | 1,874 | 1,851 | |||||||||
Total Segment [Member] | Management and financial advice fees [Member] | Asset Management: Institutional [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 495 | 453 | 495 | |||||||||
Total Segment [Member] | Management and financial advice fees [Member] | Advisory fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 3,156 | 2,865 | 2,494 | |||||||||
Total Segment [Member] | Management and financial advice fees [Member] | Financial Planning Fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 330 | 318 | 297 | |||||||||
Total Segment [Member] | Management and financial advice fees [Member] | Transaction and other fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 607 | 610 | 629 | |||||||||
Total Segment [Member] | Distribution fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 3,052 | 3,041 | 2,913 | |||||||||
Total Segment [Member] | Distribution fees [Member] | Mutual Funds [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 963 | 989 | 1,054 | |||||||||
Total Segment [Member] | Distribution fees [Member] | Insurance and annuity products [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 1,409 | 1,430 | 1,384 | |||||||||
Total Segment [Member] | Distribution fees [Member] | Other products [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 680 | 622 | 475 | |||||||||
Total Segment [Member] | Other revenues [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 181 | 175 | 166 | |||||||||
Advice & Wealth Management [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 6,299 | 5,950 | 5,412 | |||||||||
Revenue from other sources | [1] | 436 | 328 | 252 | ||||||||
Total segment gross revenues | 6,735 | 6,278 | 5,664 | |||||||||
Less: Banking and deposit interest expense | 136 | 89 | 48 | |||||||||
Total segment net revenues | 6,599 | 6,189 | 5,616 | |||||||||
Total net revenues | 5,675 | 5,237 | 4,663 | |||||||||
Advice & Wealth Management [Member] | Consolidation, Eliminations [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total segment net revenues | 924 | 952 | 953 | |||||||||
Advice & Wealth Management [Member] | Management and financial advice fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 3,841 | 3,538 | 3,153 | |||||||||
Advice & Wealth Management [Member] | Management and financial advice fees [Member] | Advisory fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 3,156 | 2,865 | 2,494 | |||||||||
Advice & Wealth Management [Member] | Management and financial advice fees [Member] | Financial Planning Fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 330 | 318 | 297 | |||||||||
Advice & Wealth Management [Member] | Management and financial advice fees [Member] | Transaction and other fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 355 | 355 | 362 | |||||||||
Advice & Wealth Management [Member] | Distribution fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 2,281 | 2,241 | 2,095 | |||||||||
Advice & Wealth Management [Member] | Distribution fees [Member] | Mutual Funds [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 726 | 729 | 765 | |||||||||
Advice & Wealth Management [Member] | Distribution fees [Member] | Insurance and annuity products [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 875 | 890 | 855 | |||||||||
Advice & Wealth Management [Member] | Distribution fees [Member] | Other products [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 680 | 622 | 475 | |||||||||
Advice & Wealth Management [Member] | Other revenues [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 177 | 171 | 164 | |||||||||
Asset Management [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 2,879 | 2,953 | 3,008 | |||||||||
Revenue from other sources | [1] | 34 | 58 | 64 | ||||||||
Total segment gross revenues | 2,913 | 3,011 | 3,072 | |||||||||
Total segment net revenues | 2,913 | 3,011 | 3,072 | |||||||||
Total net revenues | 2,858 | 2,961 | 3,025 | |||||||||
Asset Management [Member] | Consolidation, Eliminations [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total segment net revenues | 55 | 50 | 47 | |||||||||
Asset Management [Member] | Management and financial advice fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 2,467 | 2,517 | 2,548 | |||||||||
Asset Management [Member] | Management and financial advice fees [Member] | Asset Management: Retail [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 1,783 | 1,874 | 1,851 | |||||||||
Asset Management [Member] | Management and financial advice fees [Member] | Asset Management: Institutional [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 495 | 453 | 495 | |||||||||
Asset Management [Member] | Management and financial advice fees [Member] | Transaction and other fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 189 | 190 | 202 | |||||||||
Asset Management [Member] | Distribution fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 408 | 433 | 458 | |||||||||
Asset Management [Member] | Distribution fees [Member] | Mutual Funds [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 237 | 260 | 289 | |||||||||
Asset Management [Member] | Distribution fees [Member] | Insurance and annuity products [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 171 | 173 | 169 | |||||||||
Asset Management [Member] | Other revenues [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 4 | 3 | 2 | |||||||||
Annuities [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 384 | 389 | 384 | |||||||||
Revenue from other sources | [1] | 2,075 | 2,087 | 2,115 | ||||||||
Total segment gross revenues | 2,459 | 2,476 | 2,499 | |||||||||
Total segment net revenues | 2,459 | 2,476 | 2,499 | |||||||||
Total net revenues | 2,092 | 2,120 | 2,148 | |||||||||
Annuities [Member] | Consolidation, Eliminations [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total segment net revenues | 367 | 356 | 351 | |||||||||
Annuities [Member] | Management and financial advice fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 55 | 57 | 57 | |||||||||
Annuities [Member] | Management and financial advice fees [Member] | Transaction and other fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 55 | 57 | 57 | |||||||||
Annuities [Member] | Distribution fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 329 | 332 | 327 | |||||||||
Annuities [Member] | Distribution fees [Member] | Insurance and annuity products [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 329 | 332 | 327 | |||||||||
Protection [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 36 | 37 | 36 | |||||||||
Revenue from other sources | [1] | 1,011 | 1,059 | 947 | ||||||||
Total segment gross revenues | 1,047 | 1,096 | 983 | |||||||||
Total segment net revenues | 1,047 | 1,096 | 983 | |||||||||
Total net revenues | 985 | 1,035 | 921 | |||||||||
Protection [Member] | Consolidation, Eliminations [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total segment net revenues | 62 | 61 | 62 | |||||||||
Protection [Member] | Management and financial advice fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 8 | 8 | 8 | |||||||||
Protection [Member] | Management and financial advice fees [Member] | Transaction and other fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 8 | 8 | 8 | |||||||||
Protection [Member] | Distribution fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 28 | 28 | 28 | |||||||||
Protection [Member] | Distribution fees [Member] | Insurance and annuity products [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 28 | 28 | 28 | |||||||||
Protection [Member] | Other revenues [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 1 | |||||||||||
Corporate Segment [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 6 | 7 | 5 | |||||||||
Revenue from other sources | [1] | 1,096 | 1,335 | 1,232 | ||||||||
Total segment gross revenues | 1,102 | 1,342 | 1,237 | |||||||||
Less: Banking and deposit interest expense | 8 | 6 | 3 | |||||||||
Total segment net revenues | 1,094 | 1,336 | 1,234 | |||||||||
Total net revenues | 1,100 | 1,341 | 1,236 | |||||||||
Corporate Segment [Member] | Consolidation, Eliminations [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total segment net revenues | (6) | (5) | (2) | |||||||||
Corporate Segment [Member] | Distribution fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 6 | 7 | 5 | |||||||||
Corporate Segment [Member] | Distribution fees [Member] | Insurance and annuity products [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from contracts with customers | 6 | 7 | 5 | |||||||||
Non-Operating [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from other sources | [1] | 265 | 158 | 154 | ||||||||
Total segment gross revenues | 265 | 158 | 154 | |||||||||
Total segment net revenues | 265 | 158 | 154 | |||||||||
Total net revenues | 257 | 141 | 139 | |||||||||
Non-Operating [Member] | Consolidation, Eliminations [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total segment net revenues | $ 8 | $ 17 | $ 15 | |||||||||
[1] | Revenues not included in the scope of the revenue from contracts with customers standard. The amounts primarily consist of revenue associated with insurance and annuity products or financial instruments. |
Revenue from Contract with Cu_4
Revenue from Contract with Customer Revenue from Contract with Customer (In-Text) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Receivables for revenue from contracts with customers | $ 400 | $ 644 | |
Financial Planning Fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Contract liabilities | 143 | 138 | |
Capitalized contract cost, net | 116 | 112 | |
Transaction and other fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Contract liabilities | $ 0 | $ 0 | |
Accounting Standards Update 2014-09 [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Impact of fees previously recorded as a reduction of expenses | $ 103 |
Variable Interest Entities (Ass
Variable Interest Entities (Asset & Liability Balances) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Nonconsolidated VIEs [Member] | Investment in non-consolidated CLOs [Member] | |||
Liabilities | |||
Carrying value of nonconsolidated VIEs, assets | $ 4 | $ 5 | |
Nonconsolidated VIEs [Member] | Property Funds [Member] | |||
Liabilities | |||
Carrying value of nonconsolidated VIEs, assets | 12 | 18 | |
Nonconsolidated VIEs [Member] | Sponsored hedge funds and private equity funds [Member] | |||
Liabilities | |||
Carrying value of nonconsolidated VIEs, assets | 0 | 7 | |
Nonconsolidated VIEs [Member] | International Series Fund [Member] | |||
Liabilities | |||
Carrying value of nonconsolidated VIEs, assets | 15 | 30 | |
Nonconsolidated VIEs [Member] | Affordable housing partnerships [Member] | |||
Liabilities | |||
Carrying value of nonconsolidated VIEs, assets | 270 | 352 | |
Carrying value of nonconsolidated VIEs, liabilities | 15 | 43 | |
Consolidated investment entities [Member] | |||
Liabilities | |||
Debt | [1] | 1,628 | 1,743 |
Other liabilities | 84 | 122 | |
Estimated fair value of CLO debt | 1,700 | 1,700 | |
Consolidated investment entities [Member] | Recurring basis [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 1,606 | 1,706 | |
Receivables | 8 | 12 | |
Total assets at fair value | 1,614 | 1,718 | |
Liabilities | |||
Debt | [1] | 1,628 | 1,743 |
Other liabilities | 84 | 122 | |
Total liabilities at fair value | 1,712 | 1,865 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Corporate debt securities [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 8 | 9 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Common stocks [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 1 | 2 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Other investments [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 4 | ||
Consolidated investment entities [Member] | Recurring basis [Member] | Syndicated loans [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 1,597 | 1,691 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Level 1 [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 1 | 5 | |
Total assets at fair value | 1 | 5 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Level 1 [Member] | Common stocks [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 1 | 1 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Level 1 [Member] | Other investments [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 4 | ||
Consolidated investment entities [Member] | Recurring basis [Member] | Level 2 [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 1,462 | 1,475 | |
Receivables | 8 | 12 | |
Total assets at fair value | 1,470 | 1,487 | |
Liabilities | |||
Debt | [1] | 1,628 | 1,743 |
Other liabilities | 84 | 122 | |
Total liabilities at fair value | 1,712 | 1,865 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Level 2 [Member] | Corporate debt securities [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 8 | 9 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Level 2 [Member] | Common stocks [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 1 | ||
Consolidated investment entities [Member] | Recurring basis [Member] | Level 2 [Member] | Syndicated loans [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 1,454 | 1,465 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Level 3 [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | 143 | 226 | |
Total assets at fair value | 143 | 226 | |
Consolidated investment entities [Member] | Recurring basis [Member] | Level 3 [Member] | Syndicated loans [Member] | |||
Assets | |||
Investments, Fair Value Disclosure | $ 143 | $ 226 | |
[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 $1.7 billion as of both December 31, 2019 and 2018 . |
Variable Interest Entities (Cha
Variable Interest Entities (Change in Level 3 Assets and Liabilities) (Details 2) - Consolidated investment entities [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Corporate debt securities [Member] | ||||
Summary of changes in Level 3 assets held by consolidated investment entities | ||||
Balance, at the beginning of the period | $ 0 | $ 0 | ||
Sales | (2) | |||
Transfers into Level 3 | 2 | |||
Balance, at the end of the period | 0 | |||
Common stocks [Member] | ||||
Summary of changes in Level 3 assets held by consolidated investment entities | ||||
Balance, at the beginning of the period | $ 0 | 4 | 5 | |
Total gains (losses) included in net income | [1] | 6 | (1) | |
Purchases | 3 | |||
Sales | (10) | (2) | ||
Transfers into Level 3 | 4 | 7 | ||
Transfers out of Level 3 | (2) | (8) | ||
Transfers out of Level 3 from deconsolidation of collateralized loan obligations | (2) | |||
Balance, at the end of the period | 0 | 4 | ||
Changes in unrealized gains (losses) included in income relating to assets held at end of period | [1] | (1) | ||
Syndicated loans [Member] | ||||
Summary of changes in Level 3 assets held by consolidated investment entities | ||||
Balance, at the beginning of the period | 226 | 180 | 254 | |
Total gains (losses) included in net income | [1] | (2) | (1) | |
Purchases | 91 | 97 | 146 | |
Sales | (11) | (41) | (28) | |
Settlements | (68) | (52) | (70) | |
Transfers into Level 3 | 272 | 173 | 266 | |
Transfers out of Level 3 | (365) | (160) | (388) | |
Transfers into Level 3 from consolidation of collateralized loan obligations | 54 | |||
Transfers out of Level 3 from deconsolidation of collateralized loan obligations | (24) | |||
Balance, at the end of the period | 143 | 226 | 180 | |
Changes in unrealized gains (losses) included in income relating to assets held at end of period | [1] | $ (3) | $ (4) | $ (1) |
[1] | Included in net investment income in the Consolidated Statements of Operations. |
Variable Interest Entities (FV
Variable Interest Entities (FV Option for Consolidated CLOs) (Details 3) - Consolidated investment entities [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Syndicated loans [Abstract] | ||||
Unpaid principal balance | $ 1,678 | $ 1,743 | ||
Excess estimated unpaid principal over fair value | (81) | (52) | ||
Fair value | 1,597 | 1,691 | ||
Fair value of loans more than 90 days past due | 4 | 0 | ||
Fair value of loans in nonaccrual status | 42 | 0 | ||
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both | 18 | 0 | ||
Debt [Abstract] | ||||
Unpaid principal balance | 1,761 | 1,951 | ||
Excess estimated unpaid principal over fair value | (133) | (208) | ||
Fair value | [1] | 1,628 | 1,743 | |
Estimated fair value of CLO debt | 1,700 | 1,700 | ||
Net investment income [Member] | ||||
Debt [Abstract] | ||||
Total net gains (losses) recognized in net investment income related to changes in the fair v | $ (9) | $ 47 | $ (5) | |
[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 $1.7 billion as of both December 31, 2019 and 2018 . |
Variable Interest Entities (Deb
Variable Interest Entities (Debt Outstanding) (Details 4) - Consolidated investment entities [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt and stated interest rates | ||
Long-term debt | $ 1,628 | $ 1,743 |
Minimum [Member] | ||
Debt and stated interest rates | ||
Stated interest rate according to terms of CDO structure | 0.00% | |
Maximum [Member] | ||
Debt and stated interest rates | ||
Stated interest rate according to terms of CDO structure | 10.60% | |
Collateralized Loan Obligations [Member] | ||
Debt and stated interest rates | ||
Long-term debt | $ 1,628 | $ 1,743 |
Long-term Debt, Weighted Average Interest Rate | 3.50% | 3.70% |
Investments (Holdings info) (De
Investments (Holdings info) (Details) - Ameriprise Financial [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Investments | $ 37,915 | $ 35,825 |
Available-for-Sale securities, at fair value [Member] | ||
Investments | 33,129 | 31,058 |
Mortgage loans, net [Member] | ||
Investments | 2,778 | 2,696 |
Policy and certificate loans [Member] | ||
Investments | 868 | 861 |
Other investments [Member] | ||
Investments | $ 1,140 | $ 1,210 |
Investments (Net investment inc
Investments (Net investment income summary) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Investment income on fixed maturities | $ 1,378 | $ 1,353 | $ 1,349 |
Net realized gains (losses) | (8) | 10 | 46 |
Affordable housing partnerships | (98) | (58) | (100) |
Other | 97 | 154 | 108 |
Consolidated investment entities | 94 | 137 | 106 |
Total net investment income | $ 1,463 | $ 1,596 | $ 1,509 |
Investments (AFS by Type) (Deta
Investments (AFS by Type) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments | |||
Fair value of investment securities pledged as collateral | $ 2,200 | $ 1,500 | |
Fair value of investment securities pledged as collateral that may be repledged by the counterparty | 576 | 510 | |
Ameriprise Financial [Member] | |||
Investments | |||
Amortized cost | 31,332 | 30,671 | |
Gross unrealized gains | 1,834 | 844 | |
Gross unrealized losses | (37) | (457) | |
Available-for-sale securities | 33,129 | 31,058 | |
Noncredit OTTI | [1] | 1 | 1 |
Ameriprise Financial [Member] | Corporate debt securities [Member] | |||
Investments | |||
Amortized cost | 10,847 | 13,741 | |
Gross unrealized gains | 1,344 | 555 | |
Gross unrealized losses | (4) | (230) | |
Available-for-sale securities | 12,187 | 14,066 | |
Noncredit OTTI | [1] | 0 | |
Ameriprise Financial [Member] | Residential mortgage backed securities [Member] | |||
Investments | |||
Amortized cost | 9,954 | 6,373 | |
Gross unrealized gains | 94 | 34 | |
Gross unrealized losses | (19) | (78) | |
Available-for-sale securities | 10,029 | 6,329 | |
Noncredit OTTI | [1] | 0 | 0 |
Ameriprise Financial [Member] | Commercial mortgage backed securities [Member] | |||
Investments | |||
Amortized cost | 5,473 | 4,975 | |
Gross unrealized gains | 96 | 18 | |
Gross unrealized losses | (6) | (116) | |
Available-for-sale securities | 5,563 | 4,877 | |
Ameriprise Financial [Member] | Asset backed securities [Member] | |||
Investments | |||
Amortized cost | 1,968 | 1,373 | |
Gross unrealized gains | 42 | 36 | |
Gross unrealized losses | (4) | (11) | |
Available-for-sale securities | 2,006 | 1,398 | |
Noncredit OTTI | [1] | 1 | 1 |
Ameriprise Financial [Member] | State and municipal obligations [Member] | |||
Investments | |||
Amortized cost | 1,131 | 2,166 | |
Gross unrealized gains | 238 | 192 | |
Gross unrealized losses | (2) | (13) | |
Available-for-sale securities | 1,367 | 2,345 | |
Ameriprise Financial [Member] | U.S. government and agencies obligations [Member] | |||
Investments | |||
Amortized cost | 1,679 | 1,745 | |
Gross unrealized gains | 1 | 0 | |
Available-for-sale securities | 1,680 | 1,745 | |
Ameriprise Financial [Member] | Foreign government bonds and obligations [Member] | |||
Investments | |||
Amortized cost | 254 | 298 | |
Gross unrealized gains | 19 | 9 | |
Gross unrealized losses | (2) | (9) | |
Available-for-sale securities | 271 | $ 298 | |
Ameriprise Financial [Member] | Other investments [Member] | |||
Investments | |||
Amortized cost | 26 | ||
Available-for-sale securities | $ 26 | ||
[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) $ in Millions | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($)item | |
Investments | |||
Fixed maturity securities as percentage of total investments | 87.00% | ||
Number of holdings other than GNMA, FNMA, and FHLMC having greater than 10% of total equity | item | 0 | 0 | |
Holdings of Issuer Other than GNMA, FNMA and FHLMC as Percentage of Shareholders Equity Maximum | 10.00% | 10.00% | |
Ameriprise Financial [Member] | |||
Investments | |||
Amount of securities internally rated | $ 624 | $ 755 | |
Percentage of GNMA, FNMA and FHLMC securities rated AAA | 45.00% | 36.00% | |
Ameriprise Financial [Member] | AAA [Member] | |||
Investments | |||
Amortized cost | $ 18,256 | $ 13,399 | |
Fair value | $ 18,437 | $ 13,252 | |
Percent of total fair value | 56.00% | 43.00% | |
Ameriprise Financial [Member] | AA [Member] | |||
Investments | |||
Amortized cost | $ 1,113 | $ 1,571 | |
Fair value | $ 1,304 | $ 1,723 | |
Percent of total fair value | 4.00% | 5.00% | |
Ameriprise Financial [Member] | A [Member] | |||
Investments | |||
Amortized cost | $ 3,008 | $ 3,667 | |
Fair value | $ 3,474 | $ 3,899 | |
Percent of total fair value | 10.00% | 13.00% | |
Ameriprise Financial [Member] | BBB [Member] | |||
Investments | |||
Amortized cost | $ 8,178 | $ 11,102 | |
Fair value | $ 9,102 | $ 11,290 | |
Percent of total fair value | 28.00% | 36.00% | |
Ameriprise Financial [Member] | Below investment grade [Member] | |||
Investments | |||
Amortized cost | [1] | $ 777 | $ 932 |
Fair value | [1] | $ 812 | $ 894 |
Percent of total fair value | 2.00% | 3.00% | |
Ameriprise Financial [Member] | Fixed Maturities [Member] | |||
Investments | |||
Amortized cost | $ 31,332 | $ 30,671 | |
Fair value | $ 33,129 | $ 31,058 | |
Percent of total fair value | 100.00% | 100.00% | |
Ameriprise Financial [Member] | Interest in CLOs managed by the Company [Member] | Below investment grade [Member] | |||
Investments | |||
Amortized cost | $ 5 | ||
Fair value | $ 6 | ||
[1] | The amortized cost and fair value of below investment grade securities includes interest in CLOs managed by the Company of $5 million and $6 million , respectively, as of both December 31, 2019 and 2018 . These securities are not rated but are included in below investment grade due to their risk characteristics. |
Investments (EITF info-Number o
Investments (EITF info-Number of securities and unrealized losses) (Details) - Ameriprise Financial [Member] $ in Millions | Dec. 31, 2019USD ($)Positions | Dec. 31, 2018USD ($)Positions |
Number of securities | ||
Less than 12 months | Positions | 255 | 727 |
12 months or more | Positions | 202 | 584 |
Total | Positions | 457 | 1,311 |
Unrealized losses | ||
Less than 12 months | $ | $ 17 | $ 214 |
12 months or more | $ | 20 | 243 |
Total | $ | $ 37 | $ 457 |
Corporate debt securities [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 13 | 345 |
12 months or more | Positions | 23 | 148 |
Total | Positions | 36 | 493 |
Unrealized losses | ||
Less than 12 months | $ | $ 1 | $ 152 |
12 months or more | $ | 3 | 78 |
Total | $ | $ 4 | $ 230 |
Residential mortgage backed securities [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 150 | 142 |
12 months or more | Positions | 118 | 175 |
Total | Positions | 268 | 317 |
Unrealized losses | ||
Less than 12 months | $ | $ 10 | $ 18 |
12 months or more | $ | 9 | 60 |
Total | $ | $ 19 | $ 78 |
Commercial mortgage backed securities [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 52 | 104 |
12 months or more | Positions | 31 | 112 |
Total | Positions | 83 | 216 |
Unrealized losses | ||
Less than 12 months | $ | $ 3 | $ 30 |
12 months or more | $ | 3 | 86 |
Total | $ | $ 6 | $ 116 |
Asset backed securities [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 34 | 38 |
12 months or more | Positions | 16 | 35 |
Total | Positions | 50 | 73 |
Unrealized losses | ||
Less than 12 months | $ | $ 3 | $ 6 |
12 months or more | $ | 1 | 5 |
Total | $ | $ 4 | $ 11 |
State and municipal obligations [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 5 | 81 |
12 months or more | Positions | 4 | 100 |
Total | Positions | 9 | 181 |
Unrealized losses | ||
Less than 12 months | $ | $ 0 | $ 4 |
12 months or more | $ | 2 | 9 |
Total | $ | $ 2 | $ 13 |
Foreign government bonds and obligations [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 1 | 17 |
12 months or more | Positions | 10 | 14 |
Total | Positions | 11 | 31 |
Unrealized losses | ||
Less than 12 months | $ | $ 0 | $ 4 |
12 months or more | $ | 2 | 5 |
Total | $ | $ 2 | $ 9 |
Investments Investments (EITF i
Investments Investments (EITF info-Fair value) (Details) - Ameriprise Financial [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value [Line Items] | ||
Less than 12 months | $ 6,637 | $ 10,445 |
12 months or more | 1,936 | 6,322 |
Total | 8,573 | 16,767 |
Corporate debt securities [Member] | ||
Fair Value [Line Items] | ||
Less than 12 months | 66 | 5,522 |
12 months or more | 173 | 1,717 |
Total | 239 | 7,239 |
Residential mortgage backed securities [Member] | ||
Fair Value [Line Items] | ||
Less than 12 months | 4,328 | 2,029 |
12 months or more | 1,164 | 2,132 |
Total | 5,492 | 4,161 |
Commercial mortgage backed securities [Member] | ||
Fair Value [Line Items] | ||
Less than 12 months | 1,622 | 2,062 |
12 months or more | 314 | 1,806 |
Total | 1,936 | 3,868 |
Asset backed securities [Member] | ||
Fair Value [Line Items] | ||
Less than 12 months | 598 | 491 |
12 months or more | 213 | 396 |
Total | 811 | 887 |
State and municipal obligations [Member] | ||
Fair Value [Line Items] | ||
Less than 12 months | 23 | 255 |
12 months or more | 57 | 254 |
Total | 80 | 509 |
Foreign government bonds and obligations [Member] | ||
Fair Value [Line Items] | ||
Less than 12 months | 0 | 86 |
12 months or more | 15 | 17 |
Total | $ 15 | $ 103 |
Investments (OTTI rollforward)
Investments (OTTI rollforward) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2017 | |
Rollforward of the cumulative amounts recognized in the Consolidated Statements of Income for other-than-temporary impairments related to credit losses on securities | ||
Beginning balance | $ 2 | $ 69 |
Credit losses for which an other-than-temporary impairment was not previously recognized | 15 | |
Credit losses for which an other-than-temporary impairment was previously recognized | 2 | 1 |
Reductions for securities sold during the period (realized) | (1) | (68) |
Ending balance | $ 18 | $ 2 |
Investments (Realized GL Info)
Investments (Realized GL Info) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments | |||
Other-than-temporary impairments | $ (22) | $ (1) | |
Ameriprise Financial [Member] | |||
Investments | |||
Gross realized gains | 30 | $ 18 | 63 |
Gross realized losses | (14) | (9) | (7) |
Other-than-temporary impairments | (22) | (1) | |
Total | $ (6) | $ 9 | $ 55 |
Investments (AFS contractual ma
Investments (AFS contractual maturity) (Details) - Ameriprise Financial [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Due within one year | $ 2,471 | |
Due after one year through five years | 4,723 | |
Due after five years through 10 years | 2,667 | |
Due after 10 years | 4,076 | |
Total having single maturity dates | 13,937 | |
Amortized cost | 31,332 | $ 30,671 |
Fair Value | ||
Due within one year | 2,476 | |
Due after one year through five years | 4,900 | |
Due after five years through 10 years | 2,890 | |
Due after 10 years | 5,265 | |
Total having single maturity dates | 15,531 | |
Fair value | 33,129 | 31,058 |
Residential mortgage backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 9,954 | |
Amortized cost | 9,954 | 6,373 |
Fair Value | ||
Without single maturity dates | 10,029 | |
Fair value | 10,029 | 6,329 |
Commercial mortgage backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 5,473 | |
Amortized cost | 5,473 | 4,975 |
Fair Value | ||
Without single maturity dates | 5,563 | |
Fair value | 5,563 | 4,877 |
Asset backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 1,968 | |
Amortized cost | 1,968 | 1,373 |
Fair Value | ||
Without single maturity dates | 2,006 | |
Fair value | $ 2,006 | $ 1,398 |
Financing Receivables (Allowanc
Financing Receivables (Allowance for Loan Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Rollforward of the allowance for loan losses | |||
Beginning balance | $ 24 | $ 26 | $ 29 |
Charge-offs | (1) | (2) | (2) |
Provisions | 0 | 0 | (1) |
Ending balance | 23 | 24 | 26 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 23 | 24 | 26 |
Recorded investment in financing receivables by impairment method and type of loan | |||
Individually evaluated for impairment | 17 | 24 | |
Collectively evaluated for impairment | 3,323 | 3,239 | |
Total | 3,340 | 3,263 | |
Recorded investment in financing receivables individually evaluated for impairment with no related allowance for loan losses | 17 | 24 | |
Consumer loans [Member] | |||
Recorded investment in financing receivables by impairment method and type of loan | |||
Loans sold | 267 | ||
Loss on sale of financing receivables | (7) | ||
Syndicated loans [Member] | |||
Recorded investment in financing receivables by impairment method and type of loan | |||
Total | 543 | 548 | |
Loans purchased | 162 | 221 | $ 200 |
Loans sold | $ 54 | $ 51 |
Financing Receivables (Credit Q
Financing Receivables (Credit Quality Information Text) (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Credit quality information [Line Items] | |||
Credit card receivables | $ 96 | ||
Nonperforming loans | $ 0 | ||
Total loans, gross | 3,340 | 3,263 | |
90 days or more past due | |||
Credit quality information [Line Items] | |||
Nonperforming loans | 25 | 16 | |
Syndicated loans [Member] | |||
Credit quality information [Line Items] | |||
Loans purchased | 162 | 221 | $ 200 |
Loans sold | 54 | 51 | |
Total loans, gross | 543 | 548 | |
Syndicated loans [Member] | 90 days or more past due | |||
Credit quality information [Line Items] | |||
Nonperforming loans | 11 | ||
Loans to financial advisors [Member] | |||
Credit quality information [Line Items] | |||
Principal amounts outstanding for advisor loans | 645 | 558 | |
Allowance for loan losses related to loans to financial advisors | 28 | 25 | |
Principal amounts outstanding for advisor loans no longer affiliated with the Ameriprise Financial | 15 | 18 | |
Allowance for loan losses related to loans to financial advisors no longer affiliated with Ameriprise Financial | $ 10 | $ 13 | |
Consumer loans [Member] | |||
Credit quality information [Line Items] | |||
Loans sold | $ 267 | ||
Commercial mortgage loans [Member] | |||
Credit quality information [Line Items] | |||
Percentage of commercial mortgage loans with highest risk rating | 1.00% | 1.00% | |
Total loans, gross | $ 2,797 | $ 2,715 |
Financing Receivables (Credit_2
Financing Receivables (Credit Quality Information Tables) (Details 3) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Commercial mortgage loans | ||||
Total loans, gross | $ 3,340 | $ 3,263 | ||
Less: allowance for loan losses | 23 | 24 | $ 26 | $ 29 |
Commercial mortgage loans [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | 2,797 | 2,715 | ||
Less: allowance for loan losses | 19 | 19 | ||
Total loans, net | $ 2,778 | $ 2,696 | ||
Percentage of gross commercial mortgage loans | 100.00% | 100.00% | ||
Commercial mortgage loans [Member] | Apartments [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 692 | $ 621 | ||
Percentage of gross commercial mortgage loans | 25.00% | 23.00% | ||
Commercial mortgage loans [Member] | Hotel [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 51 | $ 43 | ||
Percentage of gross commercial mortgage loans | 2.00% | 1.00% | ||
Commercial mortgage loans [Member] | Industrial [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 429 | $ 453 | ||
Percentage of gross commercial mortgage loans | 15.00% | 17.00% | ||
Commercial mortgage loans [Member] | Mixed Use [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 78 | $ 54 | ||
Percentage of gross commercial mortgage loans | 3.00% | 2.00% | ||
Commercial mortgage loans [Member] | Office | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 419 | $ 435 | ||
Percentage of gross commercial mortgage loans | 15.00% | 16.00% | ||
Commercial mortgage loans [Member] | Retail | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 931 | $ 897 | ||
Percentage of gross commercial mortgage loans | 33.00% | 33.00% | ||
Commercial mortgage loans [Member] | Other | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 197 | $ 212 | ||
Percentage of gross commercial mortgage loans | 7.00% | 8.00% | ||
Commercial mortgage loans [Member] | East North Central [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 239 | $ 216 | ||
Percentage of gross commercial mortgage loans | 9.00% | 8.00% | ||
Commercial mortgage loans [Member] | East South Central [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 121 | $ 107 | ||
Percentage of gross commercial mortgage loans | 4.00% | 4.00% | ||
Commercial mortgage loans [Member] | Middle Atlantic [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 182 | $ 187 | ||
Percentage of gross commercial mortgage loans | 6.00% | 7.00% | ||
Commercial mortgage loans [Member] | Mountain [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 251 | $ 237 | ||
Percentage of gross commercial mortgage loans | 9.00% | 9.00% | ||
Commercial mortgage loans [Member] | New England [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 54 | $ 62 | ||
Percentage of gross commercial mortgage loans | 2.00% | 2.00% | ||
Commercial mortgage loans [Member] | Pacific [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 831 | $ 814 | ||
Percentage of gross commercial mortgage loans | 30.00% | 30.00% | ||
Commercial mortgage loans [Member] | South Atlantic [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 723 | $ 731 | ||
Percentage of gross commercial mortgage loans | 26.00% | 27.00% | ||
Commercial mortgage loans [Member] | West North Central [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 214 | $ 213 | ||
Percentage of gross commercial mortgage loans | 8.00% | 8.00% | ||
Commercial mortgage loans [Member] | West South Central [Member] | ||||
Commercial mortgage loans | ||||
Total loans, gross | $ 182 | $ 148 | ||
Percentage of gross commercial mortgage loans | 6.00% | 5.00% |
Financing Receivables (Troubled
Financing Receivables (Troubled Debt Restructurings) (Details 4) | Dec. 31, 2019USD ($) |
Receivables [Abstract] | |
Commitments to lend additional funds to borrowers for restructured loans | $ 0 |
Financing Receivables Financing
Financing Receivables Financing Receivables (Reinsurance Deposit Receivable) (Details) - USD ($) $ in Billions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2019 | |
Receivables [Abstract] | ||
Deposit receivable | $ 1.5 | |
Amount of fixed annuity policies reinsured | $ 1.7 |
Reinsurance (Product informatio
Reinsurance (Product information) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reinsurance Retention Policy [Line Items] | ||
Maximum amount of life policy risk retained by entity, net of reinsured amounts | $ 1,500,000 | |
Life insurance [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Percentage of risk reinsured | 90.00% | |
Life Insurance In Force, Net [Abstract] | ||
Traditional Life and UL insurance in force, gross | $ 195,100,000,000 | |
Traditional Life and UL insurance in force, reinsured | $ 142,800,000,000 | $ 142,400,000,000 |
IUL and VUL | ||
Reinsurance Retention Policy [Line Items] | ||
Percentage of risk reinsured | 50.00% | |
TrioSource UL insurance [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Percentage of risk reinsured | 50.00% | |
Single life insurance [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Maximum amount of life insurance risk retained by the entity | $ 10,000,000 | |
Flexible premium survivorship life insurance [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Maximum amount of life insurance risk retained by the entity | $ 10,000,000 | |
LTC [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Percentage of risk reinsured | 50.00% | |
DI [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Maximum amount of life insurance risk retained by the entity | $ 5,000 |
Reinsurance (Reinsurance on pre
Reinsurance (Reinsurance on premiums - long-duration contracts) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effects of Reinsurance [Line Items] | |||
Net premiums | $ 1,214 | $ 1,426 | $ 1,394 |
Traditional long-duration products [Member] | |||
Effects of Reinsurance [Line Items] | |||
Direct premiums | 621 | 621 | 637 |
Reinsurance ceded | (224) | (225) | (227) |
Net premiums | $ 397 | $ 396 | $ 410 |
Reinsurance (Reinsurance on p_2
Reinsurance (Reinsurance on premiums - short-duration contracts) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Earned Premiums [Abstract] | ||||
Net premiums | $ 1,214 | $ 1,426 | $ 1,394 | |
Property and casualty [Member] | ||||
Written Premiums [Abstract] | ||||
Direct written premiums | 864 | [1] | 1,101 | 1,119 |
Ceded written premiums | (23) | [1] | (55) | (171) |
Total net written premiums | 841 | [1] | 1,046 | 948 |
Earned Premiums [Abstract] | ||||
Direct earned premiums | 841 | [1] | 1,124 | 1,107 |
Ceded earned premiums | (24) | [1] | (94) | (123) |
Net premiums | $ 817 | [1] | $ 1,030 | $ 984 |
[1] | 2019 amounts include AAH premiums as of September 30, 2019 prior to the sale. |
Reinsurance (Ceded and recovere
Reinsurance (Ceded and recovered amounts) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effects of Reinsurance [Line Items] | |||
Reinsurance recovered from reinsurers | $ 407 | $ 402 | $ 357 |
Reinsurance recoverables | 3,200 | ||
Liabilities for assumed reinsurance arrangements | 466 | 484 | |
Non-traditional long-duration products [Member] | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance ceded offset within other revenues | 132 | $ 126 | $ 114 |
LTC [Member] | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance recoverable related to LTC risk ceded to Genworth | $ 2,500 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in the carrying amount of goodwill, by segment: | ||
Goodwill, balance at the beginning of the period | $ 1,158 | $ 1,175 |
Foreign currency translation | 10 | (16) |
Purchase price adjustment | (1) | (1) |
Goodwill, balance at the end of the period | 1,167 | 1,158 |
Advice & Wealth Management [Member] | ||
Changes in the carrying amount of goodwill, by segment: | ||
Goodwill, balance at the beginning of the period | 279 | 279 |
Goodwill, balance at the end of the period | 279 | 279 |
Asset Management [Member] | ||
Changes in the carrying amount of goodwill, by segment: | ||
Goodwill, balance at the beginning of the period | 788 | 805 |
Foreign currency translation | 10 | (16) |
Purchase price adjustment | (1) | (1) |
Goodwill, balance at the end of the period | 797 | 788 |
Annuities [Member] | ||
Changes in the carrying amount of goodwill, by segment: | ||
Goodwill, balance at the beginning of the period | 46 | 46 |
Goodwill, balance at the end of the period | 46 | 46 |
Protection [Member] | ||
Changes in the carrying amount of goodwill, by segment: | ||
Goodwill, balance at the beginning of the period | 45 | 45 |
Goodwill, balance at the end of the period | $ 45 | $ 45 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible assets | |||
Impairment of Intangible Assets (Excluding Goodwill) | $ 5 | ||
Carrying amount of indefinite-lived intangible assets | 641 | $ 646 | |
Carrying amount of indefinite-lived intangible assets - trade names | 69 | 69 | |
Gross Carrying Amount | 608 | 567 | |
Accumulated Amortization | (495) | (451) | |
Net Carrying Amount | 113 | 116 | |
Definite-lived intangible assets acquired during the year, amount assigned | $ 35 | ||
Definite-lived intangible assets acquired during the year, weighted-average amortization period | 5 years 6 months | ||
Aggregate amortization expense for definite-lived intangible assets | $ 37 | 30 | $ 27 |
Estimated intangible amortization expense for next five years: | |||
2020 | 28 | ||
2021 | 25 | ||
2022 | 21 | ||
2023 | 18 | ||
2024 | 6 | ||
Customer relationships [Member] | |||
Intangible assets | |||
Gross Carrying Amount | 192 | 184 | |
Accumulated Amortization | (146) | (134) | |
Net Carrying Amount | 46 | 50 | |
Contracts [Member] | |||
Intangible assets | |||
Gross Carrying Amount | 219 | 215 | |
Accumulated Amortization | (202) | (193) | |
Net Carrying Amount | 17 | 22 | |
Other [Member] | |||
Intangible assets | |||
Gross Carrying Amount | 197 | 168 | |
Accumulated Amortization | (147) | (124) | |
Net Carrying Amount | $ 50 | $ 44 |
Deferred Acquisition Costs an_3
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Details) - Ameriprise Financial [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Balances of and changes in DAC | |||
Balance at the beginning of the period | $ 2,776 | $ 2,676 | $ 2,648 |
Capitalization of acquisition costs | 291 | 318 | 302 |
Amortization, excluding the impact of valuation assumptions review | (165) | (355) | (279) |
Amortization, impact of valuation assumptions review | (14) | 33 | 12 |
Impact of change in net unrealized (gains) losses on securities | (175) | 104 | (7) |
Disposal of business | (15) | 0 | 0 |
Balance at the end of the period | 2,698 | 2,776 | 2,676 |
Balances of and changes in DSIC | |||
Balance at the beginning of the period | 251 | 276 | 302 |
Capitalization of sales inducement costs | 1 | 2 | 4 |
Amortization, excluding the impact of valuation assumptions review | (15) | (43) | (35) |
Amortization, impact of valuation assumptions review | 0 | 0 | (1) |
Impact of change in net unrealized (gains) losses on securities | (19) | 16 | 6 |
Balance at the end of the period | $ 218 | $ 251 | $ 276 |
Policyholder Account Balances_3
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Policyholder account balances | $ 19,793 | $ 19,941 | |
Future policy benefits | 10,553 | 9,292 | |
Policy claims and other policyholders' funds | 166 | 891 | |
Total policyholder account balances, future policy benefits and claims | 30,512 | 30,124 | |
Fixed annuities [Member] | |||
Policyholder account balances | [1] | 8,909 | 9,338 |
Variable annuity fixed sub-accounts [Member] | |||
Policyholder account balances | 5,103 | 5,129 | |
UL/VUL insurance [Member] | |||
Policyholder account balances | 3,110 | 3,063 | |
IUL insurance [Member] | |||
Policyholder account balances | 2,025 | 1,728 | |
Other life insurance [Member] | |||
Policyholder account balances | 646 | 683 | |
Variable annuity GMWB [Member] | |||
Future policy benefits | 1,462 | 875 | |
Variable annuity GMAB [Member] | |||
Future policy benefits | [2] | (39) | (19) |
Other annuity liabilities [Member] | |||
Future policy benefits | 139 | 26 | |
Fixed annuity life contingent liabilities [Member] | |||
Future policy benefits | 1,444 | 1,459 | |
Life and DI insurance [Member] | |||
Future policy benefits | 1,212 | 1,221 | |
LTC insurance [Member] | |||
Future policy benefits | 5,302 | 4,981 | |
UL/VUL and other life insurance additional liabilities [Member] | |||
Future policy benefits | $ 1,033 | $ 749 | |
[1] | Includes fixed deferred annuities, non-life contingent fixed payout annuities and indexed annuity host contracts. | ||
[2] | Includes the fair value of GMAB embedded derivatives that was a net asset as of both December 31, 2019 and 2018 reported as a contra liability. |
Policyholder Account Balances_4
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Text) (Details 2) | 12 Months Ended |
Dec. 31, 2019 | |
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |
Fixed annuities liabilities average interest rate | 3.83% |
EIA [Member] | |
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |
Contract initial term | 7 years |
Minimum interest rate guarantee | 3.00% |
Percentage of initial premium receiving interest guarantee | 90.00% |
DI [Member] | |
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |
Unpaid reported claims interest rate | 4.50% |
LTC insurance [Member] | |
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |
Unpaid reported claims interest rate | 6.00% |
Minimum [Member] | |
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |
Fixed annuities liabilities interest rates | 2.71% |
Minimum [Member] | Term and whole life insurance [Member] | |
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |
Anticipated interest rate for future claims | 3.00% |
Minimum [Member] | DI [Member] | |
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |
Anticipated interest rate for future claims | 3.50% |
Minimum [Member] | LTC insurance [Member] | |
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |
Anticipated interest rate for future claims | 5.80% |
Maximum [Member] | |
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |
Fixed annuities liabilities interest rates | 9.38% |
Maximum [Member] | Term and whole life insurance [Member] | |
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |
Anticipated interest rate for future claims | 10.00% |
Maximum [Member] | DI [Member] | |
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |
Anticipated interest rate for future claims | 7.50% |
Maximum [Member] | LTC insurance [Member] | |
Liability for Policyholder Account Balances and Future Policy Benefits and Policy Claims and Other Policyholders Funds [Line Items] | |
Anticipated interest rate for future claims | 6.80% |
Policyholder Account Balances_5
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Separate Account Liabilities) (Details 3) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Separate Account Liabilities | ||
Variable annuity | $ 74,965 | $ 66,913 |
VUL insurance | 7,429 | 6,451 |
Other insurance | 31 | 29 |
Threadneedle investment liabilities | 5,063 | 4,532 |
Total | $ 87,488 | $ 77,925 |
Variable Annuity and Insuranc_3
Variable Annuity and Insurance Guarantees (VA Guarantees Details Text) (Details) - GMAB [Member] | 12 Months Ended |
Dec. 31, 2019 | |
Variable Annuity Guarantees by Benefit Type | |
Maximum age of variable annuity contractholders | 79 years |
GMAB rider guarantees waiting period | 10 years |
Variable Annuity and Insuranc_4
Variable Annuity and Insurance Guarantees (VA Guarantee Details Table) (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
GMDB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 79,415 | $ 71,380 |
Contract value in separate accounts | [1] | 74,344 | 66,288 |
Net amount at risk | [1] | $ 84 | $ 1,117 |
Weighted average attained age | [1] | 67 years | 67 years |
GMDB [Member] | Return of premium [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 62,909 | $ 55,810 |
Contract value in separate accounts | [1] | 60,967 | 53,872 |
Net amount at risk | [1] | $ 5 | $ 417 |
Weighted average attained age | [1] | 67 years | 67 years |
GMDB [Member] | Five/six year reset [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 7,983 | $ 7,670 |
Contract value in separate accounts | [1] | 5,263 | 4,941 |
Net amount at risk | [1] | $ 7 | $ 112 |
Weighted average attained age | [1] | 67 years | 67 years |
GMDB [Member] | One-year ratchet [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 5,935 | $ 5,560 |
Contract value in separate accounts | [1] | 5,600 | 5,210 |
Net amount at risk | [1] | $ 7 | $ 417 |
Weighted average attained age | [1] | 70 years | 70 years |
GMDB [Member] | Five-year ratchet [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 1,396 | $ 1,307 |
Contract value in separate accounts | [1] | 1,340 | 1,251 |
Net amount at risk | [1] | $ 0 | $ 23 |
Weighted average attained age | [1] | 66 years | 66 years |
GMDB [Member] | Other [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 1,192 | $ 1,033 |
Contract value in separate accounts | [1] | 1,174 | 1,014 |
Net amount at risk | [1] | $ 65 | $ 148 |
Weighted average attained age | [1] | 73 years | 72 years |
GGU death benefit [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 1,115 | $ 992 |
Contract value in separate accounts | [1] | 1,063 | 940 |
Net amount at risk | [1] | $ 133 | $ 112 |
Weighted average attained age | [1] | 71 years | 70 years |
GMIB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 186 | $ 180 |
Contract value in separate accounts | [1] | 172 | 164 |
Net amount at risk | [1] | $ 6 | $ 12 |
Weighted average attained age | [1] | 70 years | 69 years |
GMWB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 48,798 | $ 42,956 |
Contract value in separate accounts | [1] | 48,684 | 42,860 |
Net amount at risk | [1] | $ 273 | $ 745 |
Weighted average attained age | [1] | 68 years | 68 years |
GMWB [Member] | GMWB standard benefit [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 1,999 | $ 1,990 |
Contract value in separate accounts | [1] | 1,993 | 1,984 |
Net amount at risk | [1] | $ 1 | $ 3 |
Weighted average attained age | [1] | 73 years | 72 years |
GMWB [Member] | GMWB for life [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 46,799 | $ 40,966 |
Contract value in separate accounts | [1] | 46,691 | 40,876 |
Net amount at risk | [1] | $ 272 | $ 742 |
Weighted average attained age | [1] | 68 years | 68 years |
GMAB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 2,528 | $ 2,456 |
Contract value in separate accounts | [1] | 2,524 | 2,450 |
Net amount at risk | [1] | $ 0 | $ 24 |
Weighted average attained age | [1] | 60 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_5
Variable Annuity and Insurance Guarantees (UL Secondary Guarantee) (Details 3) - UL secondary guarantees [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Insurance Guarantees by Benefit Type | ||
Net amount at risk | $ 6,550 | $ 6,513 |
Weighted average attained age | 67 years | 66 years |
Variable Annuity and Insuranc_6
Variable Annuity and Insurance Guarantees (Liability Rollforward) (Details 4) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
GMDB and GGU [Member] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | ||||
Balance, at the beginning of the period | $ 19 | $ 17 | $ 16 | |
Incurred claims | 2 | 8 | 5 | |
Paid claims | (5) | (6) | (4) | |
Balance, at the end of the period | 16 | 19 | 17 | |
GMIB [Member] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | ||||
Balance, at the beginning of the period | 8 | 6 | 8 | |
Incurred claims | (1) | 2 | 0 | |
Paid claims | 0 | 0 | (2) | |
Balance, at the end of the period | 7 | 8 | 6 | |
GMWB [Member] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | ||||
Balance, at the beginning of the period | 875 | 463 | 1,017 | |
Incurred claims | [1] | 587 | 412 | (554) |
Paid claims | 0 | 0 | 0 | |
Balance, at the end of the period | 1,462 | 875 | 463 | |
GMAB [Member] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | ||||
Balance, at the beginning of the period | (19) | (80) | (24) | |
Incurred claims | [1] | (20) | 61 | (56) |
Paid claims | 0 | 0 | 0 | |
Balance, at the end of the period | (39) | (19) | (80) | |
UL [Member] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | ||||
Balance, at the beginning of the period | 659 | 489 | 434 | |
Incurred claims | 141 | 201 | 84 | |
Paid claims | (42) | (31) | (29) | |
Balance, at the end of the period | $ 758 | $ 659 | $ 489 | |
[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_7
Variable Annuity and Insurance Guarantees (Separate Account Balance by Type) (Details 5) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Mutual funds | ||
Distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: | ||
Total mutual funds | $ 74,584 | $ 66,522 |
Equity | ||
Distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: | ||
Total mutual funds | 44,739 | 39,764 |
Bond | ||
Distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: | ||
Total mutual funds | 23,374 | 21,190 |
Other | ||
Distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: | ||
Total mutual funds | $ 6,471 | $ 5,568 |
Customer Deposits (Details)
Customer Deposits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Customer Deposits [Abstract] | ||
Amount of reserves that do not allow for a surrender charge | $ 2,700,000,000 | |
Percentage of participation in the market index in the first option | 100.00% | |
Percentage of participation in the market index in the second option | 25.00% | |
Minimum [Member] | ||
Customer Deposits [Abstract] | ||
Amount of fixed rate investment certificates | $ 1,000 | |
Term of fixed rate investment certificates | 3 months | |
Returns on current first term stock market certificates (as a percent) | 2.75% | |
Maximum [Member] | ||
Customer Deposits [Abstract] | ||
Amount of fixed rate investment certificates | $ 2,000,000 | |
Term of fixed rate investment certificates | 48 months | |
Returns on current first term stock market certificates (as a percent) | 13.25% | |
Ameriprise Financial [Member] | ||
Customer Deposits [Abstract] | ||
Fixed rate certificates | $ 7,032,000,000 | $ 7,377,000,000 |
Stock market certificates | 456,000,000 | 476,000,000 |
Stock market embedded derivative reserve | 7,000,000 | 6,000,000 |
Other | 27,000,000 | 33,000,000 |
Less: accrued interest classified in other liabilities | (21,000,000) | (7,000,000) |
Total investment certificate reserves | 7,501,000,000 | 7,885,000,000 |
Brokerage customer deposits | 6,929,000,000 | 3,660,000,000 |
Total | $ 14,430,000,000 | $ 11,545,000,000 |
Debt (Schedule of debt) (Detail
Debt (Schedule of debt) (Details) - Ameriprise Financial [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Jun. 28, 2019 | Dec. 31, 2018 | |
Debt and stated interest rates | ||||
Long-term debt | $ 3,097 | $ 2,867 | ||
Total Long-term Debt | 3,097 | 2,867 | ||
Short-term borrowings | 201 | 201 | ||
Total | 3,298 | 3,068 | ||
2020 | 750 | |||
2022 | 500 | |||
2023 | 750 | |||
2024 | 550 | |||
Thereafter | 500 | |||
Federal Home Loan Bank advances [Member] | ||||
Debt and stated interest rates | ||||
Short-term borrowings | $ 201 | $ 151 | ||
Stated interest rate (as a percent) short-term debt | 1.80% | 2.60% | ||
Repurchase agreements [Member] | ||||
Debt and stated interest rates | ||||
Short-term borrowings | $ 50 | |||
Stated interest rate (as a percent) short-term debt | 2.60% | |||
Senior notes due 2019 [Member] | ||||
Debt and stated interest rates | ||||
Long-term debt | $ 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 2022 [Member] | ||||
Debt and stated interest rates | ||||
Long-term debt | $ 500 | |||
Stated interest rate (as a percent) long-term debt | 3.00% | |||
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% | ||
Finance lease liabilities [Member] | ||||
Debt and stated interest rates | ||||
Finance lease liabilities | $ 57 | $ 25 | ||
Other [Member] | ||||
Debt and stated interest rates | ||||
Other | [1] | $ (10) | $ (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 17 for information on the Company’s fair value hedges. |
Debt (Narrative) (Details 2)
Debt (Narrative) (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 28, 2019 | |
Debt and stated interest rates | ||||||
Repayments of Long-term Debt | $ 313 | $ 13 | $ 11 | |||
Ameriprise Financial [Member] | Repurchase agreements [Member] | ||||||
Debt and stated interest rates | ||||||
Remaining maturity of outstanding amount for short term borrowings | 3 months | |||||
Ameriprise Financial [Member] | Repurchase agreements [Member] | Residential mortgage backed securities [Member] | ||||||
Debt and stated interest rates | ||||||
Securities pledged as collateral | $ 52 | |||||
Ameriprise Financial [Member] | Federal Home Loan Bank advances [Member] | ||||||
Debt and stated interest rates | ||||||
Remaining maturity of outstanding amount for short term borrowings | 2 months | 3 months | ||||
Ameriprise Financial [Member] | Federal Home Loan Bank advances [Member] | Residential mortgage backed securities [Member] | ||||||
Debt and stated interest rates | ||||||
Securities pledged as collateral | $ 184 | $ 0 | ||||
Ameriprise Financial [Member] | Federal Home Loan Bank advances [Member] | Commercial mortgage backed securities [Member] | ||||||
Debt and stated interest rates | ||||||
Securities pledged as collateral | $ 905 | $ 780 | ||||
Ameriprise Financial [Member] | Senior notes due 2022 [Member] | ||||||
Debt and stated interest rates | ||||||
Unsecured senior notes issued | $ 500 | |||||
Debt issuance costs | $ 3 | |||||
Stated interest rate (as a percent) long-term debt | 3.00% | |||||
Ameriprise Financial [Member] | Senior notes due 2019 [Member] | ||||||
Debt and stated interest rates | ||||||
Repayments of Long-term Debt | $ 300 | |||||
Stated interest rate (as a percent) long-term debt | 7.30% | 7.30% |
Debt Debt (Line of Credit Narra
Debt Debt (Line of Credit Narrative) (Details 3) - Ameriprise Financial [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||
Current borrowing capacity under the line of credit | $ 750 | |
Maximum borrowing capacity under the line of credit | 1,000 | |
Borrowings outstanding under credit facility | 0 | $ 0 |
Outstanding letters of credit issued against credit facility | $ 1 | $ 1 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities Fair Vaues of Assets and Liabilities (Recurring) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | ||||
Liabilities | |||||
Individual contracts in a liability position | [1],[2] | $ 5,229 | $ 3,610 | ||
Individual contracts in an asset position | [3] | 4,361 | 2,574 | ||
Cumulative increase(decrease) in embedded derivatives due to nonperformance | (502) | (726) | |||
GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities | |||||
Individual contracts in a liability position | 981 | 646 | |||
Individual contracts in an asset position | 218 | 318 | |||
Ameriprise Financial [Member] | |||||
Assets | |||||
Available-for-sale securities | 33,129 | 31,058 | |||
Separate account assets measured at NAV | 87,488 | 77,925 | |||
Investments and cash equivalents segregated for regulatory purposes | 2,386 | 2,910 | |||
Ameriprise Financial [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 12,187 | 14,066 | |||
Ameriprise Financial [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 10,029 | 6,329 | |||
Ameriprise Financial [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 5,563 | 4,877 | |||
Ameriprise Financial [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 2,006 | 1,398 | |||
Ameriprise Financial [Member] | State and municipal obligations [Member] | |||||
Assets | |||||
Available-for-sale securities | 1,367 | 2,345 | |||
Ameriprise Financial [Member] | U.S. government and agencies obligations [Member] | |||||
Assets | |||||
Available-for-sale securities | 1,680 | 1,745 | |||
Ameriprise Financial [Member] | Foreign government bonds and obligations [Member] | |||||
Assets | |||||
Available-for-sale securities | 271 | 298 | |||
Ameriprise Financial [Member] | Other investments [Member] | |||||
Assets | |||||
Available-for-sale securities | 26 | ||||
Ameriprise Financial [Member] | Recurring basis [Member] | |||||
Assets | |||||
Cash equivalents | 3,191 | 2,505 | |||
Available-for-sale securities | 33,129 | 31,058 | |||
Equity securities | 1 | 1 | |||
Investments measured at NAV | [4] | 6 | 6 | ||
Trading securities | 38 | 74 | |||
Separate account assets measured at NAV | [4] | 87,488 | 77,925 | ||
Investments and cash equivalents segregated for regulatory purposes | 14 | 301 | |||
Other assets | 4,361 | 2,574 | |||
Total assets at fair value | 128,228 | 114,444 | |||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 1,690 | [5] | 973 | [6] | |
Customer deposits | 14 | 6 | |||
Other liabilities | 3,579 | 2,680 | |||
Total liabilities at fair value | 5,283 | 3,659 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Other liabilities [Member] | |||||
Liabilities | |||||
Other liabilities | 54 | 49 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Interest rate derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1,455 | 796 | |||
Liabilities | |||||
Other liabilities | 418 | 424 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Equity derivate dontracts [Member] | |||||
Assets | |||||
Other assets | 2,884 | 1,718 | |||
Liabilities | |||||
Other liabilities | 3,098 | 2,154 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Credit Risk Contract [Member] | |||||
Assets | |||||
Other assets | 4 | ||||
Liabilities | |||||
Other liabilities | 18 | ||||
Ameriprise Financial [Member] | Recurring basis [Member] | Foreign exchange derivative contracts [Member] | |||||
Assets | |||||
Other assets | 18 | 60 | |||
Liabilities | |||||
Other liabilities | 9 | 35 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Indexed annuity embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 46 | 17 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | IUL embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 881 | 628 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 763 | [7] | 328 | [8] | |
Ameriprise Financial [Member] | Recurring basis [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 12,187 | 14,066 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 10,029 | 6,329 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 5,563 | 4,877 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 2,006 | 1,398 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | State and municipal obligations [Member] | |||||
Assets | |||||
Available-for-sale securities | 1,367 | 2,345 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | U.S. government and agencies obligations [Member] | |||||
Assets | |||||
Available-for-sale securities | 1,680 | 1,745 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Foreign government bonds and obligations [Member] | |||||
Assets | |||||
Available-for-sale securities | 271 | 298 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Other investments [Member] | |||||
Assets | |||||
Available-for-sale securities | 26 | ||||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | |||||
Assets | |||||
Cash equivalents | 267 | 155 | |||
Available-for-sale securities | 1,680 | 1,745 | |||
Equity securities | 1 | ||||
Trading securities | 12 | 36 | |||
Investments and cash equivalents segregated for regulatory purposes | 14 | 301 | |||
Other assets | 163 | 196 | |||
Total assets at fair value | 2,137 | 2,433 | |||
Liabilities | |||||
Other liabilities | 43 | 95 | |||
Total liabilities at fair value | 43 | 95 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | Other liabilities [Member] | |||||
Liabilities | |||||
Other liabilities | 6 | 13 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | Equity derivate dontracts [Member] | |||||
Assets | |||||
Other assets | 162 | 191 | |||
Liabilities | |||||
Other liabilities | 36 | 78 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | Foreign exchange derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1 | 5 | |||
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 | 1,680 | 1,745 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | |||||
Assets | |||||
Cash equivalents | 2,924 | 2,350 | |||
Available-for-sale securities | 30,663 | 28,238 | |||
Equity securities | 1 | ||||
Trading securities | 26 | 38 | |||
Other assets | 4,198 | 2,378 | |||
Total assets at fair value | 37,811 | 33,005 | |||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 3 | 3 | |||
Customer deposits | 14 | 6 | |||
Other liabilities | 3,492 | 2,555 | |||
Total liabilities at fair value | 3,509 | 2,564 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Other liabilities [Member] | |||||
Liabilities | |||||
Other liabilities | 4 | 6 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Interest rate derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1,455 | 796 | |||
Liabilities | |||||
Other liabilities | 418 | 424 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Equity derivate dontracts [Member] | |||||
Assets | |||||
Other assets | 2,722 | 1,527 | |||
Liabilities | |||||
Other liabilities | 3,062 | 2,076 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Credit Risk Contract [Member] | |||||
Assets | |||||
Other assets | 4 | ||||
Liabilities | |||||
Other liabilities | 18 | ||||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Foreign exchange derivative contracts [Member] | |||||
Assets | |||||
Other assets | 17 | 55 | |||
Liabilities | |||||
Other liabilities | 8 | 31 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Indexed annuity embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 3 | 3 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 11,437 | 13,153 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 10,012 | 6,193 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 5,563 | 4,857 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 1,987 | 1,392 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | State and municipal obligations [Member] | |||||
Assets | |||||
Available-for-sale securities | 1,367 | 2,345 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Foreign government bonds and obligations [Member] | |||||
Assets | |||||
Available-for-sale securities | 271 | 298 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Other investments [Member] | |||||
Assets | |||||
Available-for-sale securities | 26 | ||||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | |||||
Assets | |||||
Available-for-sale securities | 786 | 1,075 | |||
Total assets at fair value | 786 | 1,075 | |||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 1,687 | 970 | |||
Other liabilities | 44 | 30 | |||
Total liabilities at fair value | 1,731 | 1,000 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | Other liabilities [Member] | |||||
Liabilities | |||||
Other liabilities | 44 | 30 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | Indexed annuity embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 43 | 14 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | IUL embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 881 | 628 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 763 | 328 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 750 | 913 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 17 | 136 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | 20 | ||||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-sale securities | $ 19 | $ 6 | |||
[1] | The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and indexed annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. The fair value of the SMC embedded derivative liability is included in Customer deposits on the Consolidated Balance Sheets. | ||||
[2] | The fair value of the Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $2.3 billion and $1.4 billion as of December 31, 2019 and 2018 , respectively. See Note 16 for additional information related to master netting arrangements and cash collateral. See Note 5 for information about derivatives held by consolidated VIEs. | ||||
[3] | The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. | ||||
[4] | Amounts are comprised of certain financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. | ||||
[5] | The Company’s adjustment for nonperformance risk resulted in a $(502) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2019 . | ||||
[6] | The Company’s adjustment for nonperformance risk resulted in a $(726) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2018 . | ||||
[7] | The fair value of the GMWB and GMAB embedded derivatives included $981 million of individual contracts in a liability position and $218 million of individual contracts in an asset position as of December 31, 2019 . | ||||
[8] | The fair value of the GMWB and GMAB embedded derivatives included $646 million of individual contracts in a liability position and $318 million of individual contracts in an asset position as of December 31, 2018 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities Fair Value of Assets and Liabilities (Level 3 rollforwards-Assets) (Details) - Ameriprise Financial [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Corporate debt securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | $ 913 | $ 1,139 | $ 1,311 | |
Total gains (losses) included in net income | (1) | (1) | ||
Total gains (losses) included in other comprehensive income (loss) | 31 | (26) | (8) | |
Purchases | 55 | 15 | 138 | |
Settlements | (248) | (214) | (302) | |
Balance, at the end of the period | 750 | 913 | 1,139 | |
Changes in unrealized gains (losses) included in income relating to assets held at end of period | (1) | (1) | ||
Residential mortgage backed securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 136 | 155 | 268 | |
Total gains (losses) included in other comprehensive income (loss) | 1 | 1 | ||
Purchases | 477 | 70 | 132 | |
Settlements | (12) | (29) | (43) | |
Transfers into Level 3 | 20 | |||
Transfers out of Level 3 | (584) | (61) | (223) | |
Balance, at the end of the period | 17 | 136 | 155 | |
Commercial mortgage backed securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 20 | 0 | 0 | |
Purchases | 72 | 65 | ||
Transfers out of Level 3 | (20) | (52) | (65) | |
Balance, at the end of the period | 0 | 20 | 0 | |
Asset backed securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 6 | 7 | 68 | |
Total gains (losses) included in other comprehensive income (loss) | (1) | 1 | (4) | |
Purchases | 18 | 32 | 64 | |
Settlements | (1) | (29) | ||
Transfers into Level 3 | 14 | 2 | 27 | |
Transfers out of Level 3 | (18) | (35) | (119) | |
Balance, at the end of the period | 19 | 6 | 7 | |
Changes in unrealized gains (losses) included in income relating to assets held at end of period | (1) | |||
Common stocks [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 0 | 1 | ||
Total gains (losses) included in net income | 1 | |||
Sales | (1) | |||
Transfers into Level 3 | 8 | |||
Transfers out of Level 3 | (9) | |||
Balance, at the end of the period | 0 | |||
Total available-for-sale securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 1,075 | 1,301 | 1,648 | |
Total gains (losses) included in net income | [1] | (1) | (1) | 1 |
Total gains (losses) included in other comprehensive income (loss) | 30 | (24) | (11) | |
Purchases | 550 | 189 | 399 | |
Sales | (1) | |||
Settlements | (260) | (244) | (374) | |
Transfers into Level 3 | 14 | 2 | 55 | |
Transfers out of Level 3 | (622) | (148) | (416) | |
Balance, at the end of the period | 786 | 1,075 | 1,301 | |
Changes in unrealized gains (losses) included in income relating to assets held at end of period | [1] | (1) | (1) | (1) |
Other derivative contracts [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | $ 0 | 0 | ||
Total gains (losses) included in net income | [2] | (3) | ||
Purchases | 3 | |||
Balance, at the end of the period | $ 0 | $ 0 | ||
[1] | Included in net investment income in the Consolidated Statements of Operations. | |||
[2] | Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities Fair Value of Assets and Liabilities (Level 3 rollforwards-Liabilities) (Details) - Ameriprise Financial [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | $ (190) | $ 281 | $ (71) | |
Indexed annuity embedded derivatives [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 14 | 0 | ||
Total gains (losses) included in net income | [1] | 8 | (3) | |
Issues | 21 | 17 | ||
Balance, at the end of the period | 43 | 14 | 0 | |
IUL embedded derivatives [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 628 | 601 | 464 | |
Total gains (losses) included in net income | [1] | 209 | (9) | 87 |
Issues | 113 | 90 | 92 | |
Settlements | (69) | (54) | (42) | |
Balance, at the end of the period | 881 | 628 | 601 | |
Changes in unrealized gains/ (losses) included in income relating to liabilities held at end of period | [1] | 209 | (9) | 87 |
GMWB and GMAB embedded derivatives [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 328 | (49) | 614 | |
Total gains (losses) included in net income | [2] | 80 | 49 | (977) |
Issues | 361 | 350 | 326 | |
Settlements | (6) | (22) | (12) | |
Balance, at the end of the period | 763 | 328 | (49) | |
Changes in unrealized gains/ (losses) included in income relating to liabilities held at end of period | [2] | 82 | 47 | (946) |
Policyholder account balances, future policy benefits and claims [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 970 | 552 | 1,078 | |
Total gains (losses) included in net income | 297 | 37 | (890) | |
Issues | 495 | 457 | 418 | |
Settlements | (75) | (76) | (54) | |
Balance, at the end of the period | 1,687 | 970 | 552 | |
Changes in unrealized gains/ (losses) included in income relating to liabilities held at end of period | 291 | 38 | (859) | |
Contingent Consideration Liability [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at the beginning of the period | 30 | 28 | 13 | |
Total gains (losses) included in net income | [3] | (3) | 2 | 2 |
Issues | 18 | 13 | ||
Settlements | 1 | |||
Balance, at the end of the period | $ 44 | $ 30 | $ 28 | |
[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 Liab_6
Fair Value of Assets and Liabilities Fair Value of Assets and Liabilities (Unobservable Inputs) (Details) - Ameriprise Financial [Member] - Fair Value, Inputs, Level 3 [Member] - Valuation Technique, Discounted Cash Flow [Member] $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Corporate debt securities [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Debt Securities, Available-for-sale | $ 749 | $ 912 | |
Asset-backed Securities [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure | $ 5 | $ 6 | |
Asset-backed Securities [Member] | Probability of default, Short-term [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure, Measurement Input | 0.033 | 0.023 | |
Asset-backed Securities [Member] | Probability of default, Long-term [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure, Measurement Input | 0.030 | ||
Asset-backed Securities [Member] | Discount Rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure, Measurement Input | 0.120 | 0.115 | |
IUL embedded derivatives [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivative Assets (Liabilities), at Fair Value, Net | $ 881 | $ 628 | |
IUL embedded derivatives [Member] | Nonperformance Risk [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivative Asset (Liability) Net, Measurement Input | [1] | 0.0065 | 0.0119 |
Indexed annuity embedded derivatives [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivative Assets (Liabilities), at Fair Value, Net | $ 43 | $ 14 | |
Indexed annuity embedded derivatives [Member] | Nonperformance Risk [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivative Asset (Liability) Net, Measurement Input | [1] | 0.0065 | 0.0119 |
GMWB and GMAB embedded derivatives [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivative Assets (Liabilities), at Fair Value, Net | $ 763 | $ 328 | |
GMWB and GMAB embedded derivatives [Member] | Nonperformance Risk [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivative Asset (Liability) Net, Measurement Input | [1] | 0.0065 | 0.0119 |
Contingent Consideration Liability [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Liabilities at fair value | $ 44 | $ 30 | |
Contingent Consideration Liability [Member] | Discount Rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Liabilities, Fair Value Disclosure, Measurement input | 9.00% | 9.00% | |
Minimum [Member] | Corporate debt securities [Member] | Yield and Spread to Treasury [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Debt Securities, Available-for-sale, Measurement Input | 0.008 | 0.010 | |
Minimum [Member] | Asset-backed Securities [Member] | Probability of default, Long-term [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure, Measurement Input | 0.025 | ||
Minimum [Member] | Asset-backed Securities [Member] | Prepayment Rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure, Measurement Input | 0.050 | 0.050 | |
Minimum [Member] | Asset-backed Securities [Member] | Loss Severity [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure, Measurement Input | 0.364 | 0.364 | |
Minimum [Member] | Indexed annuity embedded derivatives [Member] | Surrender Rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivative Asset (Liability) Net, Measurement Input | 0 | 0 | |
Minimum [Member] | GMWB and GMAB embedded derivatives [Member] | Surrender Rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivative Asset (Liability) Net, Measurement Input | 0.001 | 0.001 | |
Minimum [Member] | GMWB and GMAB embedded derivatives [Member] | Utilization of Guaranteed Withdrawals [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivative Asset (Liability) Net, Measurement Input | [2] | 0 | 0 |
Minimum [Member] | GMWB and GMAB embedded derivatives [Member] | Price Volatility [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivative Asset (Liability) Net, Measurement Input | [3] | 0.037 | 0.040 |
Maximum [Member] | Corporate debt securities [Member] | Yield and Spread to Treasury [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Debt Securities, Available-for-sale, Measurement Input | 0.028 | 0.036 | |
Maximum [Member] | Asset-backed Securities [Member] | Probability of default, Long-term [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure, Measurement Input | 0.030 | ||
Maximum [Member] | Asset-backed Securities [Member] | Prepayment Rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure, Measurement Input | 0.100 | 0.100 | |
Maximum [Member] | Asset-backed Securities [Member] | Loss Severity [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure, Measurement Input | 0.636 | 0.636 | |
Maximum [Member] | Indexed annuity embedded derivatives [Member] | Surrender Rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivative Asset (Liability) Net, Measurement Input | 0.500 | 0.500 | |
Maximum [Member] | GMWB and GMAB embedded derivatives [Member] | Surrender Rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivative Asset (Liability) Net, Measurement Input | 0.735 | 0.734 | |
Maximum [Member] | GMWB and GMAB embedded derivatives [Member] | Utilization of Guaranteed Withdrawals [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivative Asset (Liability) Net, Measurement Input | [2] | 0.360 | 0.360 |
Maximum [Member] | GMWB and GMAB embedded derivatives [Member] | Price Volatility [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivative Asset (Liability) Net, Measurement Input | [3] | 0.159 | 0.161 |
Weighted Average [Member] | Corporate debt securities [Member] | Yield and Spread to Treasury [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Debt Securities, Available-for-sale, Measurement Input | 0.012 | 0.015 | |
Weighted Average [Member] | Asset-backed Securities [Member] | Probability of default, Long-term [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure, Measurement Input | 0.029 | ||
Weighted Average [Member] | Asset-backed Securities [Member] | Prepayment Rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure, Measurement Input | 0.100 | 0.100 | |
Weighted Average [Member] | Asset-backed Securities [Member] | Loss Severity [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure, Measurement Input | 0.636 | 0.636 | |
[1] | The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives | ||
[2] | The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. | ||
[3] | Market volatility is implied volatility of fund of funds and managed volatility funds. |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities Fair Value of Assets & Liabilities (Non-Recurring) (Details) - Nonconsolidated VIEs [Member] - Affordable housing partnerships [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Affordable housing partnerships, carrying value | $ 270 | $ 352 |
Nonrecurring basis [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Affordable housing partnerships, carrying value | $ 158 | $ 112 |
Fair Value of Assets and Liab_8
Fair Value of Assets and Liabilities Fair Value of Assets and Liabilities (Financial Instruments not at FV) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial Liabilities | |||
Separate account liabilities - investment contracts | $ 87,488 | $ 77,925 | |
Ameriprise Financial [Member] | |||
Financial Liabilities | |||
Investment certificate reserves | 7,501 | 7,885 | |
Separate account liabilities - investment contracts | 87,488 | 77,925 | |
Ameriprise Financial [Member] | Carrying value [Member] | |||
Financial Assets | |||
Mortgage Loans, Net | 2,778 | 2,696 | |
Policy and certificate loans | 868 | 861 | |
Receivables | 3,168 | 1,677 | |
Restricted and segregated cash | 2,372 | 2,609 | |
Other investments and assets | 671 | 572 | |
Financial Liabilities | |||
Policyholder account balances, future policy benefits and claims | 9,110 | 9,609 | |
Investment certificate reserves | 7,508 | 7,886 | |
Banking and brokerage deposits | 6,929 | 3,660 | |
Separate account liabilities - investment contracts | 5,403 | 4,843 | |
Debt and other liabilities | 3,374 | 3,296 | |
Ameriprise Financial [Member] | Recurring basis [Member] | |||
Financial Assets | |||
Mortgage Loans, Net | 2,833 | 2,661 | |
Policy and certificate loans | 810 | 810 | |
Receivables | 3,265 | 1,633 | |
Restricted and segregated cash | 2,372 | 2,609 | |
Other investments and assets | 672 | 551 | |
Financial Liabilities | |||
Policyholder account balances, future policy benefits and claims | 10,061 | 9,672 | |
Investment certificate reserves | 7,497 | 7,845 | |
Banking and brokerage deposits | 6,929 | 3,660 | |
Separate account liabilities - investment contracts | 5,403 | 4,843 | [1] |
Debt and other liabilities | 3,497 | 3,304 | |
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | |||
Financial Assets | |||
Receivables | 102 | 179 | |
Restricted and segregated cash | 2,372 | 2,609 | |
Financial Liabilities | |||
Banking and brokerage deposits | 6,929 | 3,660 | |
Debt and other liabilities | 104 | 188 | |
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | |||
Financial Assets | |||
Receivables | 934 | 965 | |
Other investments and assets | 626 | 491 | |
Financial Liabilities | |||
Separate account liabilities - investment contracts | 5,403 | 4,843 | |
Debt and other liabilities | 3,372 | 3,059 | |
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | |||
Financial Assets | |||
Mortgage Loans, Net | 2,833 | 2,661 | |
Policy and certificate loans | 810 | 810 | |
Receivables | 2,229 | 489 | |
Other investments and assets | 46 | 60 | |
Financial Liabilities | |||
Policyholder account balances, future policy benefits and claims | 10,061 | 9,672 | |
Investment certificate reserves | 7,497 | 7,845 | |
Debt and other liabilities | $ 21 | $ 57 | |
[1] | The fair value of separate account liabilities - investment contracts as of December 31, 2018 was previously incorrectly omitted from the fair value hierarchy based on use of NAV per share as a practical expedient. |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities (Assets Subject to Netting) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives: [Abstract] | |||
Derivative Asset, Fair Value, Gross Asset | [1] | $ 4,361 | $ 2,574 |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [2] | (2,959) | (2,099) |
Cash collateral | (1,244) | (403) | |
Securities collateral | (73) | (26) | |
Net amount | 85 | 46 | |
Securities borrowed [Abstract] | |||
Gross amounts of recognized assets | 102 | 179 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [2] | (14) | (37) |
Securities collateral | (85) | (139) | |
Net amount | 3 | 3 | |
Total [Abstract] | |||
Gross amounts of recognized assets | 4,463 | 2,753 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [2] | (2,973) | (2,136) |
Cash collateral | (1,244) | (403) | |
Securities collateral | (158) | (165) | |
Net amount | 88 | 49 | |
OTC [Member] | |||
Derivatives: [Abstract] | |||
Derivative Asset, Fair Value, Gross Asset | 4,258 | 2,525 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [2] | (2,933) | (2,075) |
Cash collateral | (1,244) | (403) | |
Securities collateral | (73) | (26) | |
Net amount | 8 | 21 | |
OTC cleared [Member] | |||
Derivatives: [Abstract] | |||
Derivative Asset, Fair Value, Gross Asset | 21 | 34 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [2] | (21) | (23) |
Net amount | 0 | 11 | |
Exchange-traded [Member] | |||
Derivatives: [Abstract] | |||
Derivative Asset, Fair Value, Gross Asset | 82 | 15 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [2] | (5) | (1) |
Net amount | $ 77 | $ 14 | |
[1] | The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. | ||
[2] | Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
Offsetting Assets and Liabili_4
Offsetting Assets and Liabilities (Details 2) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives [Abstract] | |||
Gross amounts of recognized liabilities | [1],[2] | $ 5,229 | $ 3,610 |
Securities loaned [Abstract] | |||
Gross amounts of recognized liabilities | 104 | 188 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [3] | (14) | (37) |
Securities collateral | (87) | (146) | |
Net amount | 3 | 5 | |
Repurchase agreements [Abstract] | |||
Gross amounts of recognized liabilities | 50 | ||
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Securities collateral | (50) | ||
Net amount | 0 | ||
Total [Abstract] | |||
Gross amounts of recognized liabilities | 3,629 | 2,869 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [3] | (2,973) | (2,136) |
Cash collateral | (89) | ||
Securities collateral | (627) | (626) | |
Net amount | 29 | 18 | |
OTC [Member] | |||
Derivatives [Abstract] | |||
Gross amounts of recognized liabilities | 3,473 | 2,597 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [3] | (2,933) | (2,075) |
Cash collateral | (89) | ||
Securities collateral | (540) | (430) | |
Net amount | 0 | 3 | |
OTC cleared [Member] | |||
Derivatives [Abstract] | |||
Gross amounts of recognized liabilities | 41 | 24 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [3] | (21) | (23) |
Net amount | 20 | 1 | |
Exchange-traded [Member] | |||
Derivatives [Abstract] | |||
Gross amounts of recognized liabilities | 11 | 10 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [3] | (5) | (1) |
Net amount | 6 | 9 | |
Total derivatives [Member] | |||
Derivatives [Abstract] | |||
Gross amounts of recognized liabilities | 3,525 | 2,631 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [3] | (2,959) | (2,099) |
Cash collateral | (89) | ||
Securities collateral | (540) | (430) | |
Net amount | $ 26 | $ 13 | |
[1] | The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and indexed annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. The fair value of the SMC embedded derivative liability is included in Customer deposits on the Consolidated Balance Sheets. | ||
[2] | The fair value of the Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $2.3 billion and $1.4 billion as of December 31, 2019 and 2018 , respectively. See Note 16 for additional information related to master netting arrangements and cash collateral. See Note 5 for information about derivatives held by consolidated VIEs. | ||
[3] | Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives and Hedging Activities | |||
Notional amount | $ 125,200 | $ 119,220 | |
Gross fair value of assets | [1] | 4,361 | 2,574 |
Gross fair value of liabilities | [2],[3] | 5,229 | 3,610 |
Derivative liability after application of master netting arrangements and cash collateral including embedded derivative liabilities | 2,300 | 1,400 | |
Fair value of investment securities received as collateral | 84 | 28 | |
Fair value of investment securities received as collateral that can be repledged | 84 | 28 | |
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 | 218 | 318 | |
Gross fair value of liabilities | 981 | 646 | |
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] | 763 | 328 |
IUL embedded derivatives [Member] | Policyholder account balances, future policy benefits and claims [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2],[3] | 881 | 628 |
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] | 46 | 17 |
SMC embedded derivatives [Member] | Customer deposits [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2],[3] | 14 | 6 |
Total embedded derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | [1] | 0 | 0 |
Gross fair value of liabilities | [2],[3] | 1,704 | 979 |
Designated as Hedging Instruments [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 468 | 778 | |
Designated as Hedging Instruments [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | [1] | 3 | 8 |
Designated as Hedging Instruments [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2],[3] | 3 | 0 |
Designated as Hedging Instruments [Member] | Interest rate contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 375 | 675 | |
Designated as Hedging Instruments [Member] | Interest rate contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | [1] | 3 | 7 |
Designated as Hedging Instruments [Member] | Foreign exchange contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 93 | 103 | |
Designated as Hedging Instruments [Member] | Foreign exchange contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | [1] | 0 | 1 |
Designated as Hedging Instruments [Member] | Foreign exchange contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2],[3] | 3 | 0 |
Derivatives not designated as hedging instruments [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 124,732 | 118,442 | |
Derivatives not designated as hedging instruments [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | [1] | 4,358 | 2,566 |
Derivatives not designated as hedging instruments [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2],[3] | 3,522 | 2,631 |
Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 57,979 | 58,244 | |
Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | [1] | 1,452 | 789 |
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] | 418 | 424 |
Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 61,921 | 54,079 | |
Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | [1] | 2,884 | 1,718 |
Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2],[3] | 3,098 | 2,154 |
Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 1,419 | 1,209 | |
Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | [1] | 4 | |
Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of liabilities | [2],[3] | 0 | 18 |
Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 3,412 | 4,908 | |
Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Gross fair value of assets | [1] | 18 | 59 |
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] | 6 | 35 |
Derivatives not designated as hedging instruments [Member] | Other contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | $ 1 | $ 2 | |
[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 $2.3 billion and $1.4 billion as of December 31, 2019 and 2018 , respectively. See Note 16 for additional information related to master netting arrangements and cash collateral. See Note 5 for information about derivatives held by consolidated VIEs. | ||
[4] | The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2019 included $981 million of individual contracts in a liability position and $218 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2018 included $646 million of individual contracts in a liability position and $318 million of individual contracts in an asset position. |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Income Statement) (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net investment income [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | $ (34) | $ 10 | $ (13) |
Net investment income [Member] | Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | (34) | 12 | (3) |
Net investment income [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 0 | (10) | |
Net investment income [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 0 | (2) | |
Banking and deposit interest expense [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 2 | 0 | 0 |
Banking and deposit interest expense [Member] | SMC embedded derivatives [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | (9) | 4 | (4) |
Banking and deposit interest expense [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 11 | (4) | 4 |
Distribution expenses [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 99 | (42) | 57 |
Distribution expenses [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 99 | (42) | 54 |
Distribution expenses [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 0 | 3 | |
Interest credited to fixed accounts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | (31) | 17 | 30 |
Interest credited to fixed accounts [Member] | IUL embedded derivatives [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | (140) | 63 | (45) |
Interest credited to fixed accounts [Member] | Indexed annuity embedded derivatives [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | (8) | 3 | |
Interest credited to fixed accounts [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 117 | (49) | 75 |
Benefits, Claims, Losses and Settlement Expenses [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | (988) | (382) | (464) |
Benefits, Claims, Losses and Settlement Expenses [Member] | GMWB and GMAB embedded derivatives [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | (435) | (377) | 663 |
Benefits, Claims, Losses and Settlement Expenses [Member] | Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 1,097 | (312) | 1 |
Benefits, Claims, Losses and Settlement Expenses [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | (1,547) | 302 | (1,081) |
Benefits, Claims, Losses and Settlement Expenses [Member] | Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | (73) | 7 | (22) |
Benefits, Claims, Losses and Settlement Expenses [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | (30) | 1 | (23) |
Benefits, Claims, Losses and Settlement Expenses [Member] | Derivatives not designated as hedging instruments [Member] | Other contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 0 | (3) | (2) |
General and administrative expense [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 15 | (16) | 17 |
General and administrative expense [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | 16 | (7) | 11 |
General and administrative expense [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations | |||
Amount of gain (loss) on derivatives recognized in Income | $ (1) | $ (9) | $ 6 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities (Option Pay/Rec) (Details 3) $ in Millions | Dec. 31, 2019USD ($) |
Summary of Option Premiums Payable and Receivable [Line Items] | |
Premiums payable | $ 1,117 |
Premiums receivable | 518 |
2020 [Member] | |
Summary of Option Premiums Payable and Receivable [Line Items] | |
Premiums payable | 214 |
Premiums receivable | 133 |
2021 [Member] | |
Summary of Option Premiums Payable and Receivable [Line Items] | |
Premiums payable | 152 |
Premiums receivable | 112 |
2022 [Member] | |
Summary of Option Premiums Payable and Receivable [Line Items] | |
Premiums payable | 204 |
Premiums receivable | 198 |
2023 [Member] | |
Summary of Option Premiums Payable and Receivable [Line Items] | |
Premiums payable | 126 |
Premiums receivable | 58 |
2024 [Member] | |
Summary of Option Premiums Payable and Receivable [Line Items] | |
Premiums payable | 70 |
Premiums receivable | 10 |
2025-2029 [Member] | |
Summary of Option Premiums Payable and Receivable [Line Items] | |
Premiums payable | 351 |
Premiums receivable | $ 7 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities (Impact of Hedging Activity) (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) | |||
Interest and debt expense | $ 214 | $ 245 | $ 207 |
Derivatives liabilities, credit risk related contingent features | |||
Aggregate fair value of all derivative instruments containing credit risk features | 189 | 171 | |
Aggregate fair value of assets posted as collateral | 189 | 170 | |
Additional collateral required to be posted | 0 | 1 | |
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) | ||
Longest period of time over which the entity hedges exposure to the variability in future cash flows | 16 years | ||
Fair value hedges [Member] | |||
Derivative Instruments, Gain (Loss) | |||
Interest and debt expense | $ 214 | 245 | |
Net investment hedges [Member] | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on net investment hedge recorded in OCI | 2 | 14 | |
Interest rate contracts [Member] | Cash flow hedges [Member] | |||
Derivative Instruments, Gain (Loss) | |||
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 2 | 0 | |
Interest rate contracts [Member] | Fair value hedges [Member] | |||
Derivative Instruments, Gain (Loss) | |||
Increase (Decrease) in Fair Value of Hedged Item in Interest Rate Fair Value Hedge | 5 | 15 | |
Increase (Decrease) in Fair Value of Interest Rate Fair Value Hedging Instruments | $ (5) | $ (15) |
Share-Based Compensation (Share
Share-Based Compensation (Share-Based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 188 | $ 146 | $ 166 |
Tax benefit related to share-based compensation expense | 40 | 31 | 58 |
Total unrecognized compensation cost related to non-vested awards | $ 124 | ||
Weighted-average period to recognize compensation cost | 3 years | ||
Stock option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 31 | 35 | 32 |
Restricted stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 22 | 24 | 24 |
Restricted stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 82 | 85 | 65 |
Liability awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 53 | $ 2 | $ 45 |
Share-Based Compensation (Stock
Share-Based Compensation (Stock Option Inputs) (Details 2) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of current fair market value of common stock | 100.00% | ||
Maximum term of stock options granted | 10 years | ||
Dividend yield (as a percent) | 3.00% | 2.30% | 2.30% |
Expected volatility (as a percent) | 27.00% | 24.00% | 30.00% |
Risk-free interest rate (as a percent) | 2.40% | 2.40% | 1.90% |
Expected life of stock option | 5 years | 5 years | 5 years |
Weighted average grant date fair value for options granted (in dollars per share) | $ 24.67 | $ 35.01 | $ 28.33 |
Stock option [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Stock option [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Amended and Restated Ameriprise Financial 2005 Incentive Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum shares which may be issued under incentive plan (in shares) | 54.4 | ||
Maximum shares to be issued full value awards | 4.5 | ||
Ameriprise Financial 2008 Employment Incentive Equity Award Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum shares which may be issued under incentive plan (in shares) | 6 |
Share-Based Compensation (Sto_2
Share-Based Compensation (Stock Option Activity) (Details 3) - Stock option [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, at the beginning of the period (in shares) | 6.1 | ||
Granted (in shares) | 1.3 | ||
Exercised (in shares) | (1) | ||
Forfeited (in shares) | (0.1) | ||
Outstanding, at the end of the period (in shares) | 6.3 | 6.1 | |
Exercisable (in shares) | 4 | ||
Weighted average exercise price (in dollars per share) | $ 122.12 | $ 115.73 | |
Weighted average exercise price granted (in dollars per share) | 126.89 | ||
Weighted average exercise price exercised (in dollars per share) | 86.90 | ||
Weighted average exercise price forfeited (in dollars per share) | 148.23 | ||
Weighted average exercise price exercisable (in dollars per share) | $ 111.32 | ||
Weighted average remaining contractual life of options outstanding | 6 years 7 months 6 days | 6 years 8 months 12 days | |
Weighted average remaining contractual life of options exercisable | 5 years 6 months | ||
Aggregate intrinsic value of options outstanding (in dollars) | $ 292 | $ 57 | |
Aggregate intrinsic value of options exercisable | 227 | ||
Intrinsic value of options exercised | $ 61 | $ 58 | $ 222 |
Share-Based Compensation (Full
Share-Based Compensation (Full Value Share Award Activity) (Details 4) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of equity instruments other than options vested in period (in dollars) | $ 107 | $ 128 | $ 97 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Non-vested at beginning of the period (in shares) | 1.1 | ||
Granted (in shares) | 0.8 | ||
Deferred (in shares) | 0.2 | ||
Vested (in shares) | (0.8) | ||
Forfeited (in shares) | (0.1) | ||
Non-vested at end of the period (in shares) | 1.2 | 1.1 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant-date fair value, non-vested at the beginning of the period (in dollars per share) | $ 130.17 | ||
Weighted average grant-date fair value, granted during the period (in dollars per share) | 130.84 | ||
Weighted average grant-date fair value, deferred during the period (in dollars per share) | 140.57 | ||
Weighted average grant-date fair value, vested during the period (in dollars per share) | 128.86 | ||
Weighted average grant-date fair value, forfeited during the period (in dollars per share) | 131.47 | ||
Weighted average grant-date fair value, non-vested at the end of the period (in dollars per share) | $ 133.40 | $ 130.17 | |
Restricted stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
RSA RSU and DSU awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant-date fair value, non-vested at the beginning of the period (in dollars per share) | $ 172.69 | 124.51 | |
Weighted average grant-date fair value, non-vested at the end of the period (in dollars per share) | 129.30 | 172.69 | $ 124.51 |
Advisor deferral plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant-date fair value, non-vested at the beginning of the period (in dollars per share) | 144.37 | 134.58 | |
Weighted average grant-date fair value, non-vested at the end of the period (in dollars per share) | $ 136.81 | $ 144.37 | $ 134.58 |
Minimum [Member] | Restricted stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Minimum [Member] | Restricted stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Maximum [Member] | Restricted stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Maximum [Member] | Restricted stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
P1 Plan [Member] | Share Based Bonus Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3 |
Share-Based Compensation Share-
Share-Based Compensation Share-Based Compensation (Performance Share Units Award Activity) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period to attain goals related to Company performance and relative total shareholder returns against peers | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 3 years | ||
Share Based Compensation Arrangement by Share Based Payment Award, Other than Options, Outstanding, Number | 0.4 | 0.3 | 0.2 |
Value of shares settled | $ 19 | $ 16 | $ 13 |
Performance Shares [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of PSUs earned | 0.00% | ||
Performance Shares [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of PSUs earned | 175.00% | 175.00% | 200.00% |
Franchise Advisor Deferral Plan [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 12.5 | ||
Franchise Consultant Growth Bonus [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Franchise Consultant Growth Bonus [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years |
Shareholders' Equity Comprehens
Shareholders' Equity Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Net unrealized securities gains, before tax [Abstract] | |||||
Net unrealized securities gains (losses) arising during the period before tax | [1] | $ 1,404 | $ (1,039) | $ 243 | |
Reclassification of net securities (gains) losses included in net income before tax | [2] | 6 | (9) | (55) | |
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables before tax | (688) | 435 | (180) | ||
Net unrealized securities gains before tax | 722 | (613) | 8 | ||
Net unrealized derivatives losses, before tax [Abstract] | |||||
Reclassification of net derivative losses included in net income before tax | [3] | (3) | 5 | ||
Net unrealized derivatives losses before tax | (3) | 5 | |||
Defined benefit plans, before tax [Abstract] | |||||
Prior service credit before tax | 14 | 2 | |||
Net loss arising during the period before tax | (36) | (30) | 38 | ||
Defined benefit plans before tax | (22) | (30) | 40 | ||
Foreign currency translation before tax | 18 | (32) | 74 | ||
Other comprehensive income attributable to Ameriprise Financial before tax | (1) | ||||
Other Comprehensive Income (Loss), before Tax | 715 | (675) | 126 | ||
Net unrealized securities gains, tax impact [Abstract] | |||||
Net unrealized securities (gains) losses arising during the period tax impact | [1] | (309) | 237 | (77) | |
Reclassification of net securities gains (losses) included in net income tax impact | [2] | (1) | 2 | 19 | |
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables tax impact | 144 | (91) | 57 | ||
Net unrealized securities gains tax impact | (166) | 148 | (1) | ||
Net unrealized derivatives losses, tax impact [Abstract] | |||||
Reclassification of net derivative losses included in net income tax impact | [3] | 1 | (2) | ||
Net unrealized derivatives losses tax impact | 1 | (2) | |||
Defined benefit plans, net of tax [Abstract] | |||||
Prior service credit tax impact | (3) | (1) | |||
Net loss arising during the period tax | 7 | 7 | (11) | ||
Defined benefit plans tax impact | 4 | 7 | (12) | ||
Foreign currency translation tax impact | (1) | 1 | (82) | [4] | |
Other comprehensive income attributable to Ameriprise Financial tax impact | 0 | ||||
Other Comprehensive Income (Loss), Tax | (162) | 156 | (97) | ||
Net unrealized securities gains, net of tax [Abstract] | |||||
Net unrealized securities gains (losses) arising during the period, net of tax | [1] | 1,095 | (802) | 166 | |
Reclassification of net securities (gains) losses included in net income net of tax | [2] | 5 | (7) | (36) | |
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables net of tax | (544) | 344 | (123) | ||
Net unrealized securities gains net of tax | 556 | (465) | 7 | ||
Net unrealized derivative losses, net of tax [Abstract] | |||||
Reclassification of net derivative losses included in net income net of tax | [3] | (2) | 3 | ||
Net unrealized derivatives losses net of tax | (2) | 3 | |||
Defined benefit plans, net of tax [Abstract] | |||||
Prior service credit net of tax | 11 | 1 | |||
Net loss arising during the period net of tax | (29) | (23) | 27 | ||
Defined benefit plans net of tax | (18) | (23) | 28 | ||
Foreign currency translation net of tax | 17 | (31) | (8) | ||
Other | 0 | 0 | (1) | ||
Total other comprehensive income (loss), net of tax | 553 | (519) | 29 | ||
Interest expense [Member] | |||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | 2 | 2 | 2 | ||
Net investment income [Member] | |||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | $ 0 | $ (2) | (5) | ||
Decrease to other comprehensive income related to deferred taxes on currency translation adjustments [Member] | Other Comprehensive Income (Loss) [Member] | |||||
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 87 | ||||
[1] | Includes OTTI losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period. | ||||
[2] | Reclassification amounts are recorded in net investment income. | ||||
[3] | Includes a $2 million , $2 million and $2 million pretax gain reclassified to interest and debt expenses and nil , a $2 million and $5 million pretax loss reclassified to net investment income for the years ended December 31, 2019 , 2018 and 2017 , respectively. | ||||
[4] | Includes an $87 million decrease to OCI related to deferred taxes on currency translations adjustments. |
Shareholders' Equity AOCI Rollf
Shareholders' Equity AOCI Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | $ (291) | $ 229 | $ 200 | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | 1 | |||||
OCI before reclassifications | 540 | (525) | 54 | |||
Amounts reclassified from AOCI | 13 | 6 | (25) | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 553 | (519) | 29 | |||
Ending balance | 262 | (291) | 229 | |||
Net unrealized securities gains [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | 20 | [1] | 486 | [1] | 479 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | 1 | |||||
OCI before reclassifications | 551 | (458) | 43 | |||
Amounts reclassified from AOCI | 5 | (7) | (36) | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 556 | (465) | 7 | |||
Ending balance | [1] | 576 | 20 | 486 | ||
Noncredit related impairments on AFS securities | 1 | 1 | 1 | |||
Net unrealized derivatives losses [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | 8 | 8 | 5 | |||
Amounts reclassified from AOCI | (2) | 0 | 3 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (2) | 0 | 3 | |||
Ending balance | 6 | 8 | 8 | |||
Defined benefit plans [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | (120) | (97) | (125) | |||
OCI before reclassifications | (28) | (36) | 20 | |||
Amounts reclassified from AOCI | 10 | 13 | 8 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (18) | (23) | 28 | |||
Ending balance | (138) | (120) | (97) | |||
Foreign currency translation [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | (198) | (167) | (159) | |||
OCI before reclassifications | 17 | (31) | (8) | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 17 | (31) | (8) | |||
Ending balance | (181) | (198) | (167) | |||
Accumulated Net Unrealized From Other Investment Gain Loss [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | (1) | (1) | 0 | |||
OCI before reclassifications | 0 | 0 | (1) | |||
Amounts reclassified from AOCI | 0 | 0 | 0 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0 | 0 | (1) | |||
Ending balance | $ (1) | $ (1) | $ (1) | |||
[1] | Includes $1 million , $1 million and $1 million of noncredit related impairments on securities and net unrealized gains (losses) on previously impaired securities as of December 31, 2019 , 2018 and 2017 , respectively. |
Shareholders' Equity Changes in
Shareholders' Equity Changes in Stockholders' Equity (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2019 | Jun. 30, 2017 | |
Stock repurchase program, authorized amount | $ 2,500 | $ 2,500 | |||
Remaining balance under stock repurchase program | $ 1,100 | ||||
Number of shares reacquired through surrender of restricted shares | 0.3 | 0.3 | 0.3 | ||
Value of shares reacquired through surrender of restricted shares | $ 34 | $ 44 | $ 33 | ||
Number of shares reacquired through net settlement of options | 0.7 | 0.5 | 2.2 | ||
Aggregate value of shares reacquired through net settlement of options | $ 106 | $ 85 | $ 298 | ||
Treasury shares reissued for restricted stock award grants and Ameriprise Financial Franchise Advisor Deferred Compensation Plan | 0.7 | 0.8 | 0.8 | ||
Open Market Share Repurchases [Member] | |||||
Repurchase of common shares (in shares) | 13.4 | 11.3 | 9.9 | ||
Repurchase of common shares | $ 1,900 | $ 1,600 | $ 1,300 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||
Net income | $ 463 | $ 543 | $ 492 | $ 395 | $ 539 | $ 503 | $ 462 | $ 594 | $ 1,893 | $ 2,098 | $ 1,480 |
Denominator: | |||||||||||
Basic: Weighted-average common shares outstanding | 129 | 132.7 | 136.1 | 138.8 | 141.5 | 144.4 | 147 | 149.5 | 134.1 | 145.6 | 154.1 |
Effect of potentially dilutive nonqualified stock options and other share-based awards (in shares) | 1.9 | 2.1 | 2.6 | ||||||||
Diluted: Weighted-average common shares outstanding | 131.3 | 134.5 | 138 | 140.1 | 143.2 | 146.5 | 149 | 152.1 | 136 | 147.7 | 156.7 |
Earnings Per Share, Basic: | |||||||||||
Net income (in dollars per basic share) | $ 3.59 | $ 4.09 | $ 3.61 | $ 2.85 | $ 3.81 | $ 3.48 | $ 3.14 | $ 3.97 | $ 14.12 | $ 14.41 | $ 9.60 |
Earnings Per Share, Diluted: | |||||||||||
Net income (in dollars per diluted share) | $ 3.53 | $ 4.04 | $ 3.57 | $ 2.82 | $ 3.76 | $ 3.43 | $ 3.10 | $ 3.91 | $ 13.92 | $ 14.20 | $ 9.44 |
Effect of potentially dilutive nonqualified stock options and other share-based awards (in shares) | 1 | 3.2 | 0 |
Regulatory Requirements (Narrat
Regulatory Requirements (Narrative) (Details) $ in Millions | Dec. 31, 2019USD ($)subsidiary | Dec. 31, 2018USD ($) |
Regulatory Requirements | ||
Aggregate amount of unrestricted net assets | $ 1,900 | |
Number of broker-dealer subsidiaries | subsidiary | 4 | |
RiverSource Life [Member] | ||
Regulatory Requirements | ||
Statutory unassigned surplus | $ 326 | $ 642 |
Percentage of previous year-end statutory capital and surplus | 10.00% | |
Statutory capital and surplus | $ 2,900 | 3,300 |
Government debt securities on deposit with states as required by law | 4 | 4 |
Ameriprise Certificate Company [Member] | ||
Regulatory Requirements | ||
Requirement of qualified assets under Investment Company Act of 1940 | 7,500 | 7,900 |
Actual amount of qualified assets | 8,000 | $ 8,400 |
Ameriprise Certificate Company [Member] | Ameriprise Financial, Inc | ||
Regulatory Requirements | ||
Maximum commitment under Capital Support Agreement | $ 50 |
Regulatory Requirements (Table)
Regulatory Requirements (Table) (Details) - RiverSource Life [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statutory Accounting Practices [Line Items] | |||
Statutory net gain from operations | $ 1,505 | $ 1,686 | $ 958 |
Statutory net income (loss) | $ 786 | $ 1,628 | $ 222 |
Income Taxes (Income Tax Compon
Income Taxes (Income Tax Components) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Payable related to accrued interest and penalties | $ 8 | $ 10 | |
Current income tax: | |||
Federal | 531 | 275 | $ 468 |
State and local | 80 | 45 | 58 |
Foreign | 36 | 41 | 52 |
Total current income tax | 647 | 361 | 578 |
Deferred income tax: | |||
Federal | (297) | 20 | 169 |
State and local | (13) | 2 | (5) |
Foreign | 2 | 3 | (8) |
Total deferred income tax | (308) | 25 | 156 |
Total income tax provision | $ 339 | 386 | 734 |
Expense related to the enactment of the Tax Act | 286 | ||
Remeasurement of deferred tax assets and liabilities to Tax Act's statutory 21% | 221 | ||
Expense for the foreign provisions of the Tax Act | 57 | ||
Remeasurement of tax contingencies related to the Tax Act | $ 8 | ||
Final adjustment related to Tax Act | $ 3 |
Income Taxes (Geographic Source
Income Taxes (Geographic Sources) (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Geographic sources of pretax income | |||
United States | $ 2,045 | $ 2,263 | $ 1,988 |
Foreign | 187 | 221 | 226 |
Income from continuing operations before income tax provision | $ 2,232 | $ 2,484 | $ 2,214 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Income Tax Provision) (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of the income tax provision | |||
Tax at U.S. statutory rate (as a percent) | 21.00% | 21.00% | 35.00% |
Changes in taxes resulting from: | |||
Low income housing tax credit (as a percent) | (3.60%) | (3.20%) | (3.40%) |
State taxes, net of federal benefit (as a percent) | 2.40% | 1.50% | 0.00% |
Foreign tax credits, net of addback (as a percent) | (2.20%) | (1.10%) | 0.00% |
Dividend received deduction (as a percent) | (1.80%) | (1.60%) | (5.80%) |
Impact of the Tax Act (as a percent) | 0.00% | 0.00% | 13.00% |
Incentive compensation (as a percent) | 0.00% | 0.00% | (3.00%) |
Foreign taxes (as a percent) | 0.00% | 0.00% | (2.00%) |
Other, net (as a percent) | (0.60%) | (1.10%) | (0.70%) |
Income tax provision (as a percent) | 15.20% | 15.50% | 33.10% |
Expense related to the enactment of the Tax Act | $ 286 | ||
Accumulated Earnings of Foreign Subsidiaries | $ 17 |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Tax Assets and Liabilities) (Details 3) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income tax assets: | ||
Liabilities for policyholder account balances, future policy benefits and claims | $ 945 | $ 725 |
Deferred compensation | 406 | 329 |
Investment related | 188 | 145 |
Deferred Tax Assets Right of Use Lease Liability | 59 | 0 |
Postretirement benefits | 45 | 44 |
Other | 47 | 57 |
Gross deferred income tax assets | 1,690 | 1,300 |
Less: Valuation allowance | 19 | 20 |
Total deferred income tax assets | 1,671 | 1,280 |
Deferred income tax liabilities: | ||
Deferred acquisition costs | 456 | 437 |
Net unrealized gains on Available-for-Sale securities | 186 | 30 |
Intangible assets | 115 | 104 |
Depreciation expense | 94 | 101 |
Goodwill | 64 | 60 |
Deferred Tax Liabilities Right of Use Lease Asset | 54 | 0 |
Deferred sales inducement costs | 50 | 53 |
Other | 6 | 6 |
Gross deferred income tax liabilities | 1,025 | 791 |
Valuation Allowance [Line Items] | ||
Valuation allowance | 19 | 20 |
Net deferred income tax liabilities | 646 | $ 489 |
State net operating losses | 16 | |
State and Local Jurisdiction [Member] | ||
Deferred income tax assets: | ||
Less: Valuation allowance | 4 | |
Valuation Allowance [Line Items] | ||
Valuation allowance | 4 | |
Foreign Tax Authority [Member] | ||
Deferred income tax assets: | ||
Less: Valuation allowance | 2 | |
Valuation Allowance [Line Items] | ||
Valuation allowance | $ 2 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits Information) (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Deferred Tax Assets, Operating Loss Carryforwards | $ 16 | ||
Unrecognized tax benefits, net of federal tax benefits, that would impact the effective tax rate | 67 | $ 70 | $ 58 |
Increase (decrease) in interest and penalties | 2 | 2 | 0 |
Payable related to accrued interest and penalties | 8 | 10 | |
Reconciliation of gross unrecognized tax benefits (expense) | |||
Beginning balance | 92 | 76 | 115 |
Additions based on tax positions related to the current year | 15 | 22 | 16 |
Additions for tax positions of prior years | 39 | 9 | 3 |
Reductions for tax positions of prior years | (17) | (3) | (57) |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | (29) | (12) | (1) |
Ending balance | 100 | $ 92 | $ 76 |
Minimum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Decrease in gross amount of unrecognized tax benefits due to resolution of IRS examinations | 40 | ||
Maximum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Decrease in gross amount of unrecognized tax benefits due to resolution of IRS examinations | 50 | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards, Valuation Allowance | $ 13 |
Retirement Plans and Profit S_3
Retirement Plans and Profit Sharing Arrangements (Text) (Details) - USD ($) $ in Millions | Feb. 28, 2010 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 4.01% | 4.25% | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 7.18% | 7.11% | 7.13% | |
Benefits paid | $ (9) | $ (9) | ||
Actuarial (gain) loss | $ 131 | $ (59) | ||
Yield period of U.S. Treasury Note | 5 years | |||
Minimum crediting rate (as a percent) | 5.00% | |||
Period of graded schedule for vesting | 3 years | |||
Minimum threshold percentage for amortization of actuarial gains and losses | 10.00% | |||
Unrecognized actuarial gain (loss) recognized in accumulated other comprehensive income | $ (151) | |||
Unrecognized prior service credit (cost) recognized in accumulated other comprehensive income | 11 | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | 7 | |||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (2) | |||
Defined Benefit Plan, Assets, Target Allocations | ||||
Range of the difference between the actual allocation and target allocations (as a percent) | 5.00% | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 5.00% | 5.00% | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Weighted-Average Interest Crediting Rate | 5.00% | 5.00% | 5.00% | |
Pension Plans [Member] | Minimum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of Eligible Contribution | 2.50% | 2.50% | ||
Pension Plans [Member] | Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of Eligible Contribution | 10.00% | 5.00% | ||
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial (gain) loss | $ 1 | $ (1) | ||
Unrecognized actuarial gain (loss) recognized in accumulated other comprehensive income | 3 | |||
Unrecognized prior service credit (cost) recognized in accumulated other comprehensive income | $ 1 | |||
Equity securities [Member] | Pension Plans [Member] | ||||
Defined Benefit Plan, Assets, Target Allocations | ||||
Target allocations (as a percent) | 70.00% | |||
Target allocations for pooled pension funds (as a percent) | 83.00% | |||
Debt securities [Member] | Pension Plans [Member] | ||||
Defined Benefit Plan, Assets, Target Allocations | ||||
Target allocations (as a percent) | 20.00% | |||
Target allocations for pooled pension funds (as a percent) | 17.00% | |||
Other assets [Member] | Pension Plans [Member] | ||||
Defined Benefit Plan, Assets, Target Allocations | ||||
Target allocations (as a percent) | 10.00% |
Retirement Plans and Profit S_4
Retirement Plans and Profit Sharing Arrangements (Net Periodic Pension Cost) (Details 1) - Pension Plans [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined benefit plans: | |||
Service cost | $ 44 | $ 48 | $ 47 |
Interest cost | 36 | 30 | 28 |
Expected return on plan assets | (53) | (48) | (45) |
Amortization of prior service costs | 0 | 0 | (1) |
Amortization of net loss | 5 | 11 | 10 |
Other | 8 | 5 | 3 |
Net periodic benefit cost | $ 40 | $ 46 | $ 42 |
Retirement Plans and Profit S_5
Retirement Plans and Profit Sharing Arrangements (Benefit Obligation and Fair Value) (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plans [Member] | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | $ 967 | $ 995 | |
Service cost | 44 | 48 | $ 47 |
Interest cost | 36 | 30 | 28 |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Other Change | (15) | ||
Benefits paid | (9) | (9) | |
Actuarial (gain) loss | 131 | (59) | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | (7) | ||
Settlements | (42) | (29) | |
Foreign currency rate changes | 6 | (9) | |
Benefit obligation at end of year | 1,111 | 967 | 995 |
Change in fair value of plan assets | |||
Fair value of plan assets at the beginning of the year | 728 | 748 | |
Actual return on plan assets | 130 | (59) | |
Employer contributions | 24 | 86 | |
Benefits paid | (9) | (9) | |
Settlements | (42) | (29) | |
Foreign currency rate changes | 7 | (9) | |
Fair value of plan assets at the end of the year | 838 | 728 | 748 |
Other Postretirement Benefits Plan [Member] | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 14 | 15 | |
Interest cost | 0 | 1 | |
Benefits paid | (1) | (1) | |
Actuarial (gain) loss | 1 | (1) | |
Benefit obligation at end of year | $ 14 | $ 14 | $ 15 |
Retirement Plans and Profit S_6
Retirement Plans and Profit Sharing Arrangements (Amounts recognized in Balance Sheet) (Details 3) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Plans [Member] | ||
Amounts recognized in the Consolidated Balance Sheets | ||
Benefit liability | $ (278) | $ (256) |
Benefit asset | 5 | 17 |
Net amount recognized | (273) | (239) |
Other Postretirement Benefits Plan [Member] | ||
Amounts recognized in the Consolidated Balance Sheets | ||
Benefit liability | (14) | (14) |
Benefit asset | 0 | 0 |
Net amount recognized | $ (14) | $ (14) |
Retirement Plans and Profit S_7
Retirement Plans and Profit Sharing Arrangements (Benefit Obligations that Exceeded the Fair Value) (Details 4) - Pension Plans [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 1,100 | $ 905 |
Plans with accumulated benefit obligations in excess of plan assets: | ||
Accumulated benefit obligation | 875 | 762 |
Fair value of plan assets | 644 | 559 |
Plans with projected benefit obligations in excess of plan assets: | ||
Projected benefit obligation | 922 | 815 |
Fair value of plan assets | $ 644 | $ 559 |
Retirement Plans and Profit S_8
Retirement Plans and Profit Sharing Arrangements (Weighted Average Assumptions) (Details 5) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plans [Member] | |||
Weighted average assumptions used to determine benefit obligations for pension plans | |||
Discount rates (as a percent) | 2.97% | 4.01% | |
Rates of increase in compensation levels (as a percent) | 4.01% | 4.25% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 5.00% | 5.00% | |
Weighted average assumptions used to determine net periodic benefit cost for pension plans | |||
Discount rates (as a percent) | 4.00% | 3.30% | 3.64% |
Rates of increase in compensation levels (as a percent) | 4.25% | 4.29% | 4.39% |
Expected long term rates of return on assets (as a percent) | 7.18% | 7.11% | 7.13% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Weighted-Average Interest Crediting Rate | 5.00% | 5.00% | 5.00% |
Other Postretirement Benefits Plan [Member] | |||
Weighted average assumptions used to determine benefit obligations for pension plans | |||
Discount rates (as a percent) | 2.99% | 4.11% |
Retirement Plans and Profit S_9
Retirement Plans and Profit Sharing Arrangements (Assets Measured at Fair Value) (Details 6) - Pension Plans [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 838 | $ 728 | $ 748 | |
Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 307 | 266 | ||
Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 24 | 23 | ||
Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. large cap stocks [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 119 | 90 | ||
U.S. large cap stocks [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 119 | 90 | ||
U.S. small cap stocks [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 91 | 70 | ||
U.S. small cap stocks [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 91 | 70 | ||
Non-U.S. large cap stocks [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 32 | 25 | ||
Non-U.S. large cap stocks [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 32 | 25 | ||
Non-U.S. small cap stocks [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 22 | |||
Non-U.S. small cap stocks [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 22 | |||
U.S. investment grade bonds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 67 | 62 | ||
U.S. investment grade bonds [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 43 | 39 | ||
U.S. investment grade bonds [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 24 | 23 | ||
U.S. high yield bonds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 6 | 5 | ||
U.S. high yield bonds [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 6 | 5 | ||
Non-U.S. investment grade bonds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 16 | 15 | ||
Non-U.S. investment grade bonds [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 16 | 15 | ||
Collective investment funds [Member] [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 232 | 188 | |
Real estate investment trusts [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 20 | 19 | |
Hedge funds [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 29 | 27 | |
Pooled pension funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 196 | 169 | |
Cash equivalents [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | $ 30 | $ 36 | |
[1] | Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. |
Retirement Plans and Profit _10
Retirement Plans and Profit Sharing Arrangements (Expected Benefit Payments) (Details 7) $ in Millions | Dec. 31, 2019USD ($) |
Pension Plans [Member] | |
Expected benefit payments to retirees | |
2017 | $ 86 |
2018 | 62 |
2019 | 67 |
2020 | 83 |
2021 | 72 |
2022-2026 | 381 |
Estimated future employer contributions in next fiscal year | 16 |
Other Postretirement Benefits Plan [Member] | |
Expected benefit payments to retirees | |
2017 | 1 |
2018 | 1 |
2019 | 1 |
2020 | 1 |
2021 | 1 |
2022-2026 | 5 |
Estimated future employer contributions in next fiscal year | $ 1 |
Retirement Plans and Profit _11
Retirement Plans and Profit Sharing Arrangements (Defined Contribution Plan) (Details 8) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution, percent of employees' gross pay | 5.00% | ||
Ameriprise Financial Inc 401(k) Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer contribution requisite service period | 60 days | ||
Period of graded schedule for vesting of employer contributions | 5 years | ||
UNITED STATES | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan expense | $ 56 | $ 56 | $ 49 |
Foreign Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan expense | $ 6 | $ 6 | $ 5 |
Commitments, Guarantees and C_3
Commitments, Guarantees and Contingencies Future Funding Commitments (Details 2) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Commercial mortgage loans | $ 60 | $ 57 |
Affordable housing partnerships and other real estate partnerships | 22 | 59 |
Private funds | 12 | 0 |
Consumer lines of credit | 1 | 1 |
Total funding commitments | $ 95 | $ 117 |
Commitments, Guarantees and C_4
Commitments, Guarantees and Contingencies Loss Contingencies (Details 3) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Insurance-related Assessments [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Undiscounted Amount of Insurance-related Assessment Liability | $ 12 | |
Loss contingency for guaranty fund assessments premium tax asset offset | $ 10 | $ 11 |
Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Minimum interest rate guarantees in fixed accounts | 1.00% | |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Minimum interest rate guarantees in fixed accounts | 5.00% |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of assets by segment | ||
Total assets | $ 151,828 | $ 137,216 |
Advice & Wealth Management [Member] | ||
Summary of assets by segment | ||
Total assets | 17,607 | 14,480 |
Asset Management [Member] | ||
Summary of assets by segment | ||
Total assets | 8,226 | 7,558 |
Annuities [Member] | ||
Summary of assets by segment | ||
Total assets | 98,195 | 88,771 |
Protection [Member] | ||
Summary of assets by segment | ||
Total assets | 16,980 | 17,126 |
Corporate & Other [Member] | ||
Summary of assets by segment | ||
Total assets | $ 10,820 | $ 9,281 |
Segment Information (Details 2)
Segment Information (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Summary of segment operating results | ||||||||||||
Total segment adjusted operating revenues | $ 12,710 | $ 12,694 | $ 11,993 | |||||||||
Net Realized Gains (Losses) | (6) | 10 | 46 | |||||||||
Revenues attributable to CIEs | 88 | 127 | 94 | |||||||||
Market impact on IUL benefits, net | (7) | 1 | ||||||||||
Market impact of hedges on investments | (35) | 11 | (2) | |||||||||
Restructuring Charges | (3) | |||||||||||
Gain on disposal of business | 213 | |||||||||||
Total net revenues | $ 3,287 | $ 3,317 | $ 3,245 | $ 3,118 | $ 3,179 | $ 3,292 | $ 3,196 | $ 3,168 | 12,967 | 12,835 | 12,132 | |
Reconciliation of operating profit (loss) from segments to consolidated | ||||||||||||
Segment Reporting Information Operating Earnings | 2,608 | 2,564 | 2,320 | |||||||||
Net Realized Gains (Losses) including DAC offset | (4) | 9 | 44 | |||||||||
Net income (loss) attributable to CIEs | 1 | (1) | 2 | |||||||||
Market impact on variable annuity living benefits, net | (579) | (31) | (232) | |||||||||
Market impact on IUL benefits, net | (12) | (17) | 4 | |||||||||
Market impact on fixed annuity benefits | 1 | |||||||||||
Mean reversion related impacts | 57 | (33) | 83 | |||||||||
Market impact of hedges on investments | (35) | 11 | (2) | |||||||||
Integration and restructuring charges | (17) | (19) | (5) | |||||||||
Gain on disposal of business | 213 | |||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 2,232 | 2,484 | 2,214 | |||||||||
Advice & Wealth Management [Member] | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment adjusted operating revenues | 6,599 | 6,189 | 5,616 | |||||||||
Total net revenues | 5,675 | 5,237 | 4,663 | |||||||||
Reconciliation of operating profit (loss) from segments to consolidated | ||||||||||||
Segment Reporting Information Operating Earnings | 1,509 | 1,389 | 1,163 | |||||||||
Asset Management [Member] | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment adjusted operating revenues | 2,913 | 3,011 | 3,072 | |||||||||
Total net revenues | 2,858 | 2,961 | 3,025 | |||||||||
Reconciliation of operating profit (loss) from segments to consolidated | ||||||||||||
Segment Reporting Information Operating Earnings | 661 | 728 | 740 | |||||||||
Annuities [Member] | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment adjusted operating revenues | 2,459 | 2,476 | 2,499 | |||||||||
Total net revenues | 2,092 | 2,120 | 2,148 | |||||||||
Reconciliation of operating profit (loss) from segments to consolidated | ||||||||||||
Segment Reporting Information Operating Earnings | 497 | 496 | 629 | |||||||||
Protection [Member] | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment adjusted operating revenues | 1,047 | 1,096 | 983 | |||||||||
Total net revenues | 985 | 1,035 | 921 | |||||||||
Reconciliation of operating profit (loss) from segments to consolidated | ||||||||||||
Segment Reporting Information Operating Earnings | 261 | 255 | 256 | |||||||||
Corporate & Other [Member] | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment adjusted operating revenues | 1,094 | 1,336 | 1,234 | |||||||||
Reconciliation of operating profit (loss) from segments to consolidated | ||||||||||||
Segment Reporting Information Operating Earnings | (320) | (304) | (468) | |||||||||
Eliminations | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment adjusted operating revenues | [1] | 1,402 | 1,414 | 1,411 | ||||||||
Consolidation, Eliminations [Member] | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment adjusted operating revenues | 1,410 | 1,431 | 1,426 | |||||||||
Consolidation, Eliminations [Member] | Advice & Wealth Management [Member] | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment adjusted operating revenues | 924 | 952 | 953 | |||||||||
Consolidation, Eliminations [Member] | Asset Management [Member] | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment adjusted operating revenues | 55 | 50 | 47 | |||||||||
Consolidation, Eliminations [Member] | Annuities [Member] | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment adjusted operating revenues | 367 | 356 | 351 | |||||||||
Consolidation, Eliminations [Member] | Protection [Member] | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment adjusted operating revenues | 62 | 61 | 62 | |||||||||
Consolidation, Eliminations [Member] | Corporate & Other [Member] | ||||||||||||
Summary of segment operating results | ||||||||||||
Total segment adjusted operating revenues | $ (6) | $ (5) | $ (2) | |||||||||
[1] | Represents the elimination of intersegment revenues recognized for the years ended December 31, 2019 , 2018 and 2017 in each segment as follows: Advice and Wealth Management ( $924 , $952 and $953 , respectively); Asset Management ( $55 , $50 and $47 , respectively); Annuities ( $367 , $356 and $351 , respectively); Protection ( $62 , $61 and $62 , respectively); and Corporate & Other ( $(6) , $(5) and $(2) , respectively). |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total net revenues | $ 3,287 | $ 3,317 | $ 3,245 | $ 3,118 | $ 3,179 | $ 3,292 | $ 3,196 | $ 3,168 | $ 12,967 | $ 12,835 | $ 12,132 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 534 | 641 | 587 | 470 | 652 | 588 | 548 | 696 | |||
Net income | $ 463 | $ 543 | $ 492 | $ 395 | $ 539 | $ 503 | $ 462 | $ 594 | $ 1,893 | $ 2,098 | $ 1,480 |
Earnings Per Share [Abstract] | |||||||||||
Net income (in dollars per basic share) | $ 3.59 | $ 4.09 | $ 3.61 | $ 2.85 | $ 3.81 | $ 3.48 | $ 3.14 | $ 3.97 | $ 14.12 | $ 14.41 | $ 9.60 |
Net income (in dollars per diluted share) | $ 3.53 | $ 4.04 | $ 3.57 | $ 2.82 | $ 3.76 | $ 3.43 | $ 3.10 | $ 3.91 | $ 13.92 | $ 14.20 | $ 9.44 |
Weighted average common shares outstanding | |||||||||||
Basic | 129 | 132.7 | 136.1 | 138.8 | 141.5 | 144.4 | 147 | 149.5 | 134.1 | 145.6 | 154.1 |
Diluted | 131.3 | 134.5 | 138 | 140.1 | 143.2 | 146.5 | 149 | 152.1 | 136 | 147.7 | 156.7 |
Cash dividends declared per common share | $ 0.97 | $ 0.97 | $ 0.97 | $ 0.90 | $ 0.90 | $ 0.90 | $ 0.90 | $ 0.83 |
SCHEDULE I - CONDENSED FINANC_3
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Statement of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||||||||||
Other revenues | $ 1,279 | $ 1,249 | $ 1,105 | ||||||||
Gain on disposal of business | 213 | 0 | 0 | ||||||||
Total revenues | 13,103 | 12,924 | 12,180 | ||||||||
Banking and deposit interest expense | 136 | 89 | 48 | ||||||||
Total net revenues | $ 3,287 | $ 3,317 | $ 3,245 | $ 3,118 | $ 3,179 | $ 3,292 | $ 3,196 | $ 3,168 | 12,967 | 12,835 | 12,132 |
Expenses | |||||||||||
Benefits, claims, losses and settlement expenses | 2,576 | 2,302 | 2,233 | ||||||||
Distribution expenses | 3,810 | 3,637 | 3,397 | ||||||||
Interest and debt expense | 214 | 245 | 207 | ||||||||
General and administrative expense | 3,287 | 3,171 | 3,158 | ||||||||
Total expenses | 10,735 | 10,351 | 9,918 | ||||||||
Income tax benefit | 339 | 386 | 734 | ||||||||
Net income | $ 463 | $ 543 | $ 492 | $ 395 | $ 539 | $ 503 | $ 462 | $ 594 | 1,893 | 2,098 | 1,480 |
Other comprehensive income (loss), net of tax | 553 | (519) | 29 | ||||||||
Total comprehensive income | 2,446 | 1,579 | 1,509 | ||||||||
Management and financial advice fees [Member] | |||||||||||
Revenues | |||||||||||
Management and financial advice fees | (7,015) | (6,776) | (6,415) | ||||||||
Ameriprise Financial, Inc: | |||||||||||
Revenues | |||||||||||
Net investment income | 9 | 34 | 11 | ||||||||
Other revenues | 14 | 4 | 8 | ||||||||
Gain on disposal of business | 213 | ||||||||||
Total revenues | 235 | 37 | 18 | ||||||||
Banking and deposit interest expense | 9 | 7 | 5 | ||||||||
Total net revenues | 226 | 30 | 13 | ||||||||
Expenses | |||||||||||
Benefits, claims, losses and settlement expenses | 49 | 4 | 76 | ||||||||
Distribution expenses | 24 | 4 | 18 | ||||||||
Interest and debt expense | 126 | 120 | 116 | ||||||||
General and administrative expense | 244 | 210 | 246 | ||||||||
Total expenses | 443 | 338 | 456 | ||||||||
Pretax loss before equity in earnings of subsidiaries | (217) | (308) | (443) | ||||||||
Income tax benefit | (38) | (73) | (47) | ||||||||
Loss before equity in earnings of subsidiaries | (179) | (235) | (396) | ||||||||
Equity in earnings of subsidiaries | 2,072 | 2,333 | 1,876 | ||||||||
Net income | 1,893 | 2,098 | 1,480 | ||||||||
Other comprehensive income (loss), net of tax | 553 | (519) | 29 | ||||||||
Total comprehensive income | 2,446 | 1,579 | 1,509 | ||||||||
Ameriprise Financial, Inc: | Management and financial advice fees [Member] | |||||||||||
Revenues | |||||||||||
Management and financial advice fees | $ (1) | $ (1) | $ (1) |
SCHEDULE I - CONDENSED FINANC_4
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Balance Sheet) (Details 1) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Land, buildings, equipment and software, net of accumulated depreciation of $952 and $1,168, respectively | $ 610 | $ 635 | ||
Total assets | 151,828 | 137,216 | ||
Liabilities: | ||||
Total liabilities | 146,099 | 131,628 | ||
Shareholders' Equity: | ||||
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 329,842,827 and 328,537,214, respectively) | 3 | 3 | ||
Additional paid-in capital | 8,461 | 8,260 | ||
Retained earnings | 14,279 | 12,909 | ||
Treasury shares, at cost (205,903,593 and 192,206,467 shares, respectively) | (17,276) | (15,293) | ||
Accumulated other comprehensive income, net of tax, including amounts applicable to equity investment in subsidiaries | 262 | (291) | $ 229 | $ 200 |
Total Ameriprise Financial, Inc. shareholders' equity | 5,729 | 5,588 | 5,995 | 6,289 |
Total liabilities and equity | 151,828 | 137,216 | ||
Ameriprise Financial, Inc: | ||||
Assets | ||||
Cash and cash equivalents | 730 | 476 | $ 494 | $ 754 |
Investments | 1,430 | 467 | ||
Loans to subsidiaries | 361 | 372 | ||
Due from subsidiaries | 305 | 288 | ||
Receivables | 5 | 5 | ||
Land, buildings, equipment and software, net of accumulated depreciation of $952 and $1,168, respectively | 207 | 237 | ||
Investment in subsidiaries | 6,665 | 7,231 | ||
Other assets | 1,136 | 1,209 | ||
Total assets | 10,839 | 10,285 | ||
Liabilities: | ||||
Accounts payable and accrued liabilities | 797 | 636 | ||
Due to subsidiaries | 137 | 146 | ||
Borrowings from subsidiaries | 401 | 346 | ||
Long-term debt | 3,097 | 2,867 | ||
Other liabilities | 678 | 702 | ||
Total liabilities | 5,110 | 4,697 | ||
Shareholders' Equity: | ||||
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 329,842,827 and 328,537,214, respectively) | 3 | 3 | ||
Additional paid-in capital | 8,461 | 8,260 | ||
Retained earnings | 14,279 | 12,909 | ||
Treasury shares, at cost (205,903,593 and 192,206,467 shares, respectively) | (17,276) | (15,293) | ||
Accumulated other comprehensive income, net of tax, including amounts applicable to equity investment in subsidiaries | 262 | (291) | ||
Total Ameriprise Financial, Inc. shareholders' equity | 5,729 | 5,588 | ||
Total liabilities and equity | $ 10,839 | $ 10,285 |
SCHEDULE I - CONDENSED FINANC_5
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Balance Sheet - Parenthetical) (Details 2) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accumulated depreciation | $ 1,800 | $ 2,000 |
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 | 329,842,827 | 328,537,214 |
Treasury shares | 205,903,593 | 192,206,467 |
Ameriprise Financial, Inc: | ||
Accumulated depreciation | $ 952 | $ 1,168 |
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 | 329,842,827 | 328,537,214 |
Treasury shares | 205,903,593 | 192,206,467 |
SCHEDULE I - CONDENSED FINANC_6
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Statement of Cash Flows) (Details 3) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||||||||||
Net income | $ 463 | $ 543 | $ 492 | $ 395 | $ 539 | $ 503 | $ 462 | $ 594 | $ 1,893 | $ 2,098 | $ 1,480 |
Gain (Loss) on Disposition of Business before Affinity Payment | 313 | ||||||||||
Net Cash Provided by (Used in) Operating Activities | 2,341 | 2,597 | 1,523 | ||||||||
Available-for-Sale securities: | |||||||||||
Maturities, sinking fund payments and calls | 8,202 | 6,738 | 4,957 | ||||||||
Purchases | (11,911) | (8,346) | (5,419) | ||||||||
Payments to Acquire Other Investments | (288) | (653) | (519) | ||||||||
Purchase of land, buildings, equipment and software | (143) | (162) | (162) | ||||||||
Proceeds from Divestiture of Businesses | 1,100 | ||||||||||
Other, net | (115) | (56) | (107) | ||||||||
Net cash (used in) provided by investing activities | (3,234) | (587) | (171) | ||||||||
Cash Flows from Financing Activities | |||||||||||
Dividends paid to shareholders | (504) | (506) | (491) | ||||||||
Repurchase of common shares | (1,943) | (1,630) | (1,485) | ||||||||
Cash paid for purchased options with deferred premiums | (396) | (228) | (282) | ||||||||
Issuance of long-term debt, net of issuance costs | 497 | ||||||||||
Repayments of long-term debt | (313) | (13) | (11) | ||||||||
Exercise of stock options | 3 | 2 | 15 | ||||||||
Other, net | 1 | 3 | (1) | ||||||||
Net cash provided by (used in) financing activities | 1,214 | (1,263) | (1,785) | ||||||||
Net increase (decrease) in cash and cash equivalents | 330 | 739 | (398) | ||||||||
Supplemental Disclosures: | |||||||||||
Income taxes paid (received), net | 609 | 538 | 418 | ||||||||
Ameriprise Financial, Inc: | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | 1,893 | 2,098 | 1,480 | ||||||||
Equity in earnings of subsidiaries | (2,072) | (2,333) | (1,876) | ||||||||
Dividends received from subsidiaries | 2,721 | 2,093 | 1,589 | ||||||||
Gain (Loss) on Disposition of Business before Affinity Payment | 313 | ||||||||||
Other operating activities, primarily with subsidiaries | 596 | 57 | 712 | ||||||||
Net Cash Provided by (Used in) Operating Activities | 2,825 | 1,915 | 1,905 | ||||||||
Available-for-Sale securities: | |||||||||||
Maturities, sinking fund payments and calls | 204 | 94 | 44 | ||||||||
Purchases | (1,153) | (222) | (77) | ||||||||
Proceeds from sale of other investments | 6 | 3 | |||||||||
Payments to Acquire Other Investments | (12) | ||||||||||
Purchase of land, buildings, equipment and software | (42) | (62) | (69) | ||||||||
Proceeds from Divestiture of Businesses | 1,138 | ||||||||||
Contributions to subsidiaries | (368) | (73) | (79) | ||||||||
Return of capital from subsidiaries | 18 | 454 | 47 | ||||||||
Repayment of loans from subsidiaries | 2,468 | 1,623 | 1,277 | ||||||||
Issuance of loans to subsidiaries | (2,457) | (1,768) | (1,337) | ||||||||
Other, net | (65) | 2 | (91) | ||||||||
Net cash (used in) provided by investing activities | (263) | 48 | (282) | ||||||||
Cash Flows from Financing Activities | |||||||||||
Dividends paid to shareholders | (504) | (506) | (491) | ||||||||
Repurchase of common shares | (1,943) | (1,630) | (1,485) | ||||||||
Cash paid for purchased options with deferred premiums | (107) | (20) | (19) | ||||||||
Issuance of long-term debt, net of issuance costs | 497 | ||||||||||
Repayments of long-term debt | (313) | (13) | (11) | ||||||||
Borrowings from subsidiaries | 132 | 472 | 124 | ||||||||
Repayments of borrowings from subsidiaries | (79) | (273) | (15) | ||||||||
Exercise of stock options | 3 | 2 | 15 | ||||||||
Other, net | 6 | (13) | (1) | ||||||||
Net cash provided by (used in) financing activities | (2,308) | (1,981) | (1,883) | ||||||||
Net increase (decrease) in cash and cash equivalents | 254 | (18) | (260) | ||||||||
Cash and cash equivalents at beginning of period | $ 476 | $ 494 | 476 | 494 | 754 | ||||||
Cash and cash equivalents at end of period | $ 730 | $ 476 | 730 | 476 | 494 | ||||||
Supplemental Disclosures: | |||||||||||
Interest paid on debt | 123 | 126 | 128 | ||||||||
Income taxes paid (received), net | (109) | (27) | (368) | ||||||||
Non-cash dividends from subsidiaries | $ 81 | $ 195 | $ 109 |
SCHEDULE I - CONDENSED FINANC_7
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Footnotes) (Details 4) - Ameriprise Financial, Inc: - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investments [Abstract] | ||
Residual tranche fair value | $ 1,430,000,000 | $ 467,000,000 |
Debt | ||
Short-term borrowings | 150,000,000 | |
Borrowings from Subsidiaries [Abstract] | ||
Current borrowing capacity under the line of credit | 1,300,000,000 | 1,200,000,000 |
Outstanding amount | 50,000,000 | 0 |
Guarantees, Commitments and Contingencies | ||
Maximum borrowing capacity under the line of credit | 364,000,000 | |
Loans to subsidiaries | 361,000,000 | 372,000,000 |
Ameriprise Certificate Company [Member] | ||
Guarantees, Commitments and Contingencies | ||
Maximum commitment under Capital Support Agreement | 50,000,000 | |
Ameriprise Financial Services, Inc. [Member] | ||
Guarantees, Commitments and Contingencies | ||
Secured demand notes | 200,000,000 | |
Ameriprise Enterprise Investment Services Inc. [Member] | ||
Guarantees, Commitments and Contingencies | ||
Loans to subsidiaries | 60,000,000 | |
Asset-backed Securities, Securitized Loans and Receivables [Member] | ||
Investments [Abstract] | ||
Residual tranche fair value | 94,000,000 | 90,000,000 |
Net investment income [Member] | ||
Investments [Abstract] | ||
Related Party Transaction, Amounts of Transaction | 6,000,000 | |
Repurchase agreements [Member] | ||
Debt | ||
Repurchase agreements, debt | 50,000,000 | |
Federal Home Loan Bank advances [Member] | ||
Debt | ||
Short-term borrowings | $ 200,000,000 | $ 150,000,000 |
Leases Leases - Assets and Liab
Leases Leases - Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets and Liabilities, Lessee [Abstract] | ||
Total lease assets | $ 267 | |
Operating lease liability | 243 | $ 278 |
Finance lease liability | 57 | |
Total lease liabilities | 300 | |
Other assets [Member] | ||
Assets and Liabilities, Lessee [Abstract] | ||
Operating lease assets | 215 | |
Finance lease assets | 52 | |
Other liabilities [Member] | ||
Assets and Liabilities, Lessee [Abstract] | ||
Operating lease liability | 243 | |
Long-term debt [Member] | ||
Assets and Liabilities, Lessee [Abstract] | ||
Finance lease liability | $ 57 |
Leases Lease Cost (Details)
Leases Lease Cost (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
General and administrative expense [Member] | |
Operating lease costs | $ 58 |
Amortization of leased assets | 8 |
Interest expense [Member] | |
Finance lease interest expense | $ 2 |
Leases Lease Liabilities Maturi
Leases Lease Liabilities Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2020 | $ 55 | $ 61 |
2021 | 50 | 53 |
2022 | 42 | 40 |
2023 | 35 | 33 |
2024 | 24 | 26 |
Thereafter | 63 | 65 |
Total lease payments | 269 | |
Less: Interest | (26) | |
Total | $ 243 | $ 278 |
Operating lease, weighted-average remaining lease term | 6 years 1 month 6 days | |
Operating lease, weighted-average discount rate, percent | 3.00% | |
Finance Lease, Liability, Payment, Due [Abstract] | ||
2020 | $ 14 | |
2021 | 10 | |
2022 | 10 | |
2023 | 10 | |
2024 | 10 | |
Thereafter | 9 | |
Total lease payments | 63 | |
Less: Interest | (6) | |
Total | $ 57 | |
Finance lease, weighted-average remaining lease term | 5 years 9 months 18 days | |
Finance lease, weighted-average discount rate, percent | 3.40% |
Leases Cash Flow Information (D
Leases Cash Flow Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease, Cost [Abstract] | |
Operating cash flows from operating leases | $ 62 |
Operating cash flows from finance leases | 2 |
Financing cash flows from finance leases | $ 13 |
Disposal of Business Disposal_2
Disposal of Business Disposal of business (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from Divestiture of Businesses | $ 1,100 | ||
Proceeds from Divestiture of Businesses, Net of Cash Divested | 1,000 | ||
Gain on disposal of business | 213 | $ 0 | $ 0 |
Business Exit Costs | $ 100 |