10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2015

OR

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from  to 

Commission File No. 033-28976

RIVERSOURCE LIFE INSURANCE COMPANY

(Exact name of registrant as specified in its charter)

Minnesota	41-0823832
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1099 Ameriprise Financial Center, Minneapolis, Minnesota	55474
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:  (612) 671-3131

 Former name, former address and former fiscal year, if changed since last report:   Not Applicable

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.                 Yes x  No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes x No o

 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer o	Accelerated Filer o
Non-Accelerated Filer x (Do not check if a smaller reporting company)	Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes o No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at August 3, 2015
Common Stock (par value $30 per share)	100,000 shares

THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS H(1) (a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT.

RIVERSOURCE LIFE INSURANCE COMPANY

FORM 10-Q

INDEX

Part I.	Financial Information:
	Item 1.	Financial Statements (Unaudited)
		Consolidated Balance Sheets — June 30, 2015 and December 31, 2014	1
		Consolidated Statements of Income — Three months and six months ended June 30, 2015 and 2014	2
		Consolidated Statements of Comprehensive Income — Three months and six months ended June 30, 2015 and 2014	2
		Consolidated Statements of Shareholder’s Equity — Six months ended June 30, 2015 and 2014	3
		Consolidated Statements of Cash Flows — Six months ended June 30, 2015 and 2014	4
		Notes to Consolidated Financial Statements	6
	Item 2.	Management’s Narrative Analysis	34
	Item 4.	Controls and Procedures	42
Part II.	Other Information:
	Item 1.	Legal Proceedings	43
	Item 1A.	Risk Factors	43
	Item 6.	Exhibits	43
	Signatures		44
	Exhibit Index		E-1

RIVERSOURCE LIFE INSURANCE COMPANY

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in millions, except share amounts)

	June 30, 2015		December 31, 2014
Assets
Investments:
Available-for-Sale:
Fixed maturities, at fair value (amortized cost: 2015, $21,023; 2014, $21,354)	$	22,478	$	23,243
Common stocks, at fair value (cost: 2015 and 2014, $2)	7		7
Mortgage loans, at amortized cost (less allowance for loan losses: 2015, $21; 2014, $23)	3,233		3,298
Policy loans	816		805
Other investments	962		987
Total investments	27,496		28,340
Cash and cash equivalents	239		307
Reinsurance recoverables	2,346		2,268
Other receivables	183		206
Accrued investment income	247		255
Deferred acquisition costs	2,624		2,576
Other assets	4,467		5,006
Separate account assets	79,326		79,178
Total assets	$	116,928	$	118,136
Liabilities and Shareholder’s Equity
Liabilities:
Policyholder account balances, future policy benefits and claims	$	28,744	$	29,805
Short-term borrowings	200		200
Other liabilities	4,561		4,650
Separate account liabilities	79,326		79,178
Total liabilities	112,831		113,833
Shareholder’s equity:
Common stock, $30 par value; 100,000 shares authorized, issued and outstanding	3		3
Additional paid-in capital	2,465		2,464
Retained earnings	1,048		1,107
Accumulated other comprehensive income, net of tax	581		729
Total shareholder’s equity	4,097		4,303
Total liabilities and shareholder’s equity	$	116,928	$	118,136

See Notes to Consolidated Financial Statements.

1

RIVERSOURCE LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(in millions)

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2015		2014		2015			2014
Revenues
Premiums	$	108	$	110	$	205		$	214
Net investment income	302		323		608			656
Policy and contract charges	475		465		935			912
Other revenues	113		99		217			194
Net realized investment gains	6		1		16			5
Total revenues	1,004		998		1,981			1,981
Benefits and expenses
Benefits, claims, losses and settlement expenses	275		280		581			488
Interest credited to fixed accounts	160		175		332			361
Amortization of deferred acquisition costs	74		61		129			132
Other insurance and operating expenses	187		190		369			372
Total benefits and expenses	696		706		1,411			1,353
Pretax income	308		292		570			628
Income tax provision	55		49		104			87
Net income	$	253	$	243	$	466		$	541
Supplemental Disclosures:
Total other-than-temporary impairment losses on securities	$	—	$	—	$	(1	)	$	(1	)
Portion of loss recognized in other comprehensive income (before taxes)	—		—		1			—
Net impairment losses recognized in net realized investment gains	$	—	$	—	$	—		$	(1	)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(in millions)

	Three Months Ended   June 30,						Six Months Ended   June 30,
	2015			2014			2015			2014
Net income	$	253		$	243		$	466		$	541
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on securities:
Net unrealized securities gains (losses) arising during the period	(411		)	214			(271		)	422
Reclassification of net securities gains included in net income	(3		)	—			(11		)	(3		)
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables	201			(76		)	132			(167		)
Total net unrealized gains (losses) on securities	(213		)	138			(150		)	252
Net unrealized losses on derivatives:
Reclassification of net derivative losses included in net income	1			1			2			2
Total net unrealized losses on derivatives	1			1			2			2
Total other comprehensive income (loss), net of tax	(212		)	139			(148		)	254
Total comprehensive income	$	41		$	382		$	318		$	795

See Notes to Consolidated Financial Statements.

2

RIVERSOURCE LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF SHAREHOLDER’S EQUITY (UNAUDITED)

(in millions)

	Common Shares		Additional Paid-In Capital		Retained Earnings			Accumulated Other Comprehensive Income			Total
Balances at January 1, 2014	$	3	$	2,463	$	1,042		$	650		$	4,158
Comprehensive income:
Net income	—		—		541			—			541
Other comprehensive income, net of tax	—		—		—			254			254
Total comprehensive income											795
Tax adjustment on share-based incentive compensation plan	—		1		—			—			1
Cash dividends to Ameriprise Financial, Inc.	—		—		(300		)	—			(300		)
Balances at June 30, 2014	$	3	$	2,464	$	1,283		$	904		$	4,654
Balances at January 1, 2015	$	3	$	2,464	$	1,107		$	729		$	4,303
Comprehensive income:
Net income	—		—		466			—			466
Other comprehensive loss, net of tax	—		—		—			(148		)	(148		)
Total comprehensive income											318
Tax adjustment on share-based incentive compensation plan	—		1		—			—			1
Cash dividends to Ameriprise Financial, Inc.	—		—		(525		)	—			(525		)
Balances at June 30, 2015	$	3	$	2,465	$	1,048		$	581		$	4,097

See Notes to Consolidated Financial Statements.

3

RIVERSOURCE LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in millions)

	Six Months Ended   June 30,
	2015			2014
Cash Flows from Operating Activities
Net income	$	466		$	541
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion, net	5			4
Deferred income tax expense (benefit)	87			(72		)
Contractholder and policyholder charges, non-cash	(165		)	(164		)
Loss from equity method investments	18			12
Net realized investment gains	(17		)	(6		)
Other-than-temporary impairments and provision for loan losses recognized in net realized investment gains	1			1
Changes in operating assets and liabilities:
Deferred acquisition costs	(1		)	3
Policyholder account balances, future policy benefits and claims, net	(73		)	372
Derivatives, net of collateral	260			(253		)
Reinsurance recoverables	(70		)	(66		)
Other receivables	18			5
Accrued investment income	8			10
Other, net	297			(97		)
Net cash provided by operating activities	834			290
Cash Flows from Investing Activities
Available-for-Sale securities:
Proceeds from sales	53			229
Maturities, sinking fund payments and calls	1,600			1,290
Purchases	(1,245		)	(574		)
Proceeds from maturities and repayments of mortgage loans	314			277
Funding of mortgage loans	(242		)	(256		)
Proceeds from sales and collections of other investments	53			76
Purchase of other investments	(59		)	(183		)
Purchase of land, buildings, equipment and software	(5		)	(2		)
Change in policy loans, net	(11		)	(18		)
Advance on line of credit to Ameriprise Financial, Inc.	—			(15		)
Repayment from Ameriprise Financial, Inc. on line of credit	—			15
Other, net	44			7
Net cash provided by investing activities	502			846

See Notes to Consolidated Financial Statements.

4

RIVERSOURCE LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (continued)

(in millions)

	Six Months Ended   June 30,
	2015			2014
Cash Flows from Financing Activities
Policyholder account balances:
Deposits and other additions	$	984		$	1,021
Net transfers to separate accounts	(102		)	(109		)
Surrenders and other benefits	(1,566		)	(1,363		)
Change in short-term borrowings, net	—			(301		)
Proceeds from line of credit with Ameriprise Financial, Inc.	6			42
Payments on line of credit with Ameriprise Financial, Inc.	(6		)	(192		)
Tax adjustment on share-based incentive compensation plan	1			1
Cash received for purchased options with deferred premiums	8			7
Cash paid for purchased options with deferred premiums	(204		)	(218		)
Cash dividend to Ameriprise Financial, Inc.	(525		)	(300		)
Net cash used in financing activities	(1,404		)	(1,412		)
Net decrease in cash and cash equivalents	(68		)	(276		)
Cash and cash equivalents at beginning of period	307			344
Cash and cash equivalents at end of period	$	239		$	68
Supplemental Disclosures:
Income taxes paid (received), net	$	(220	)	$	331
Interest paid on borrowings	—			1
Non-cash investing activity:
Affordable housing partnership commitments not yet remitted	9			—

See Notes to Consolidated Financial Statements.

5

RIVERSOURCE LIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. Basis of Presentation

RiverSource Life Insurance Company is a stock life insurance company with two wholly owned subsidiaries, RiverSource Life Insurance Co. of New York and RiverSource Tax Advantaged Investments, Inc. (“RTA”). RiverSource Life Insurance Company is a wholly owned subsidiary of Ameriprise Financial, Inc. (“Ameriprise Financial”).

The accompanying Consolidated Financial Statements include the accounts of RiverSource Life Insurance Company and companies in which it directly or indirectly has a controlling financial interest (collectively, the “Company”). All intercompany transactions and balances have been eliminated in consolidation.

The interim financial information in this report has not been audited. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial position and results of operations for the interim periods have been made. All adjustments made were of a normal recurring nature.

The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Results of operations reported for interim periods are not necessarily indicative of results for the entire year. These Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 24, 2015.

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. 

2. Recent AccountingPronouncements

Adoption of New Accounting Standards

Transfers and Servicing

In June 2014, the Financial Accounting Standards Board (“FASB”) updated the accounting standards related to transfers and servicing. The update requires repurchase-to-maturity transactions and linked repurchase financings to be accounted for as secured borrowings consistent with the accounting for other repurchase agreements. The standard requires disclosures related to transfers of financial assets accounted for as sales in transactions that are similar to repurchase agreements. The standard also requires disclosures on the remaining contractual maturity of the agreements, disaggregation of the gross obligation by class of collateral pledged and potential risks associated with the agreements and the related collateral pledged in repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings. The standard is effective for interim and annual periods beginning after December 15, 2014, except for the disclosure requirements for repurchase agreements, security lending transactions and repurchase-to-maturity transactions accounted for as secured borrowings which are effective for interim periods beginning after March 15, 2015. The standard requires entities to present changes in accounting for transactions outstanding at the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The adoption of the standard did not have any effect on the Company’s consolidated financial condition and results of operations. See Note 9 and Note 11 for the required disclosures.

Receivables - Troubled Debt Restructuring by Creditors

In January 2014, the FASB updated the accounting standard related to recognizing residential real estate obtained through a repossession or foreclosure from a troubled debtor. The update clarifies the criteria for derecognition of the loan receivable and recognition of the real estate property. The standard is effective for interim and annual periods beginning after December 15, 2014 and can be applied under a modified retrospective transition method or a prospective transition method. The adoption of the standard did not have any effect on the Company’s consolidated financial condition and results of operations.

Investments - Equity Method and Joint Ventures

In January 2014, the FASB updated the accounting standard related to investments in qualified affordable housing projects. The update allows for an accounting policy election to account for investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the investment in a qualified affordable housing project is amortized in proportion to the tax credits and other tax benefits received. The net investment performance is recognized as a component of income tax expense (benefit). The standard is effective for interim and annual periods beginning after December 15, 2014 and should be applied retrospectively to all periods presented. The Company did not elect the proportional amortization method.

6

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Future Adoption of New Accounting Standards

Fair Value Measurement – Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)

In May 2015, the FASB updated the accounting standards related to fair value measurement. The update applies to investments that are measured at net asset value (“NAV”). The standard eliminates the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share as a practical expedient. In addition, the update limits disclosures to investments for which the entity elected to measure the fair value using the practical expedient rather than all eligible investments. The standard is effective for interim and annual periods beginning after December 15, 2015. The standard should be applied retrospectively to all periods presented and early adoption is permitted. There will be no impact of the standard to the Company’s consolidated financial condition and results of operations.

Consolidation

In February 2015, the FASB updated the accounting standard for consolidation. The update changes the accounting for the consolidation model for limited partnerships and a variable interest entity (“VIE”) and excludes certain money market funds out of the consolidation analysis.  Specific to the consolidation analysis of a VIE, the update clarifies consideration of fees paid to a decision maker and amends the related party guidance. The standard is effective for periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The standard may be applied using a modified retrospective approach by recording a cumulative-effect adjustment to equity at the beginning of the period of adoption or applied retrospectively. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations.

Presentation of Financial Statements - Going Concern

In August 2014, the FASB updated the accounting standard related to an entity’s assessment of its ability to continue as a going concern. The standard requires that management evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. In situations where there is substantial doubt about an entity’s ability to continue as a going concern, disclosure should be made so that a reader can understand the conditions that raise substantial doubt, management’s assessment of those conditions and any plan management has to mitigate those conditions. The standard is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. The adoption of the standard is not expected to have a material impact on the Company’s consolidated financial condition and results of operations.

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. In addition, the standard requires disclosure of quantitative and qualitative information that enables users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The standard is effective for interim and annual periods beginning after December 15, 2016 and early adoption is prohibited. The standard may be applied retrospectively for all periods presented or retrospectively with a cumulative-effect adjustment at the date of adoption. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations.

3. Variable Interest Entities

The Company has variable interests in affordable housing partnerships for which it is not the primary beneficiary and therefore does not consolidate. The Company’s maximum exposure to loss as a result of its investments in affordable housing partnerships is limited to the carrying value of these investments. The carrying value is reflected in other investments and was $494 million and $504 million as of June 30, 2015 and December 31, 2014, respectively. The Company has no obligation to provide financial or other support to the affordable housing partnerships in addition to liabilities already recorded for future funding commitments nor has it provided any additional support to the affordable housing partnerships.

The Company invests in structured investments which are considered VIEs for which it is not the sponsor. These structured investments typically invest in fixed income instruments and are managed by third parties and include asset backed securities, commercial mortgage backed securities and residential mortgage backed securities. The Company classifies these investments as Available-for-Sale securities. The Company has determined that it is not the primary beneficiary of these structures due to the size of the Company’s investment in the entities and position in the capital structure of these entities. The Company’s maximum

7

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

exposure to loss as a result of its investment in these structured investments is limited to its carrying value. The carrying value is included in Available-for-Sale fixed maturities on the consolidated balance sheets. The Company has no obligation to provide financial or other support to the structured investments beyond its investment nor has the Company provided any support to the structured investments. See Note 4 for additional information about these structured investments.

4. Investments

Available-for-Sale securities distributed by type were as follows:

	June 30, 2015
Description of Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI (1)
	(in millions)
Fixed maturities:
Corporate debt securities	$	13,717	$	1,211	$	(76	)	$	14,852	$	3
Residential mortgage backed securities	3,219		116		(39		)	3,296		(8		)
Commercial mortgage backed securities	2,115		90		(10		)	2,195		—
State and municipal obligations	940		138		(29		)	1,049		—
Asset backed securities	770		40		(2		)	808		—
Foreign government bonds and obligations	225		20		(6		)	239		—
U.S. government and agencies obligations	37		2		—			39		—
Total fixed maturities	21,023		1,617		(162		)	22,478		(5		)
Common stocks	2		5		—			7		3
Total	$	21,025	$	1,622	$	(162	)	$	22,485	$	(2	)

	December 31, 2014
Description of Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI (1)
	(in millions)
Fixed maturities:
Corporate debt securities	$	13,763	$	1,474	$	(54	)	$	15,183	$	3
Residential mortgage backed securities	3,374		150		(32		)	3,492		(9		)
Commercial mortgage backed securities	2,116		115		(3		)	2,228		—
State and municipal obligations	947		191		(25		)	1,113		—
Asset backed securities	882		56		(1		)	937		—
Foreign government bonds and obligations	236		21		(6		)	251		—
U.S. government and agencies obligations	36		3		—			39		—
Total fixed maturities	21,354		2,010		(121		)	23,243		(6		)
Common stocks	2		5		—			7		3
Total	$	21,356	$	2,015	$	(121	)	$	23,250	$	(3	)

⁽¹⁾  Represents the amount of other-than-temporary impairment (“OTTI”) losses in accumulated other comprehensive income (“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 both June 30, 2015 and December 31, 2014, investment securities with a fair value of $1.2 billion were pledged to meet contractual obligations under derivative contracts and short-term borrowings.

As of both June 30, 2015 and December 31, 2014, fixed maturity securities comprised approximately 82% of the Company’s total investments. Rating agency designations are based on the availability of ratings from Nationally Recognized Statistical Rating Organizations (“NRSROs”), including Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”) and Fitch Ratings Ltd. (“Fitch”). The Company uses the median of available ratings from Moody’s, S&P and Fitch, or if fewer than three ratings are available, the lower rating is used. When ratings from Moody’s, S&P and Fitch are unavailable, the Company may utilize ratings from other NRSROs or rate the securities internally. At June 30, 2015 and December 31, 2014, approximately $1.1 billion and $1.2 billion, respectively, of securities were internally rated by Columbia Management Investment Advisers, LLC, an affiliate of the Company, using criteria similar to those used by NRSROs.

8

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

A summary of fixed maturity securities by rating was as follows:

	June 30, 2015						December 31, 2014
Ratings	Amortized Cost		Fair Value		Percent of Total Fair Value		Amortized  Cost		Fair Value		Percent of Total Fair Value
	(in millions, except percentages)
AAA	$	4,850	$	5,030	22	%	$	5,111	$	5,374	23	%
AA	953		1,104		5		967		1,158		5
A	4,076		4,537		20		4,452		5,062		22
BBB	9,628		10,300		46		9,328		10,165		44
Below investment grade	1,516		1,507		7		1,496		1,484		6
Total fixed maturities	$	21,023	$	22,478	100	%	$	21,354	$	23,243	100	%

At June 30, 2015 and December 31, 2014, approximately 47% and 46%, respectively, of the securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any other issuer were greater than 10% of total equity.

The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position:

	June 30, 2015
	Less than 12 months						12 months or more						Total
Description of Securities	Number of Securities	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses
	(in millions, except number of securities)
Corporate debt securities	164	$	2,269	$	(67	)	15	$	156	$	(9	)	179	$	2,425	$	(76	)
Residential mortgage backed securities	30	522		(8		)	55	562		(31		)	85	1,084		(39		)
Commercial mortgage backed securities	41	507		(9		)	3	49		(1		)	44	556		(10		)
State and municipal obligations	10	34		(2		)	2	100		(27		)	12	134		(29		)
Asset backed securities	10	132		(2		)	2	13		—			12	145		(2		)
Foreign government bonds and obligations	3	7		—			13	24		(6		)	16	31		(6		)
Total	258	$	3,471	$	(88	)	90	$	904	$	(74	)	348	$	4,375	$	(162	)

	December 31, 2014
	Less than 12 months						12 months or more						Total
Description of Securities	Number of  Securities	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses
	(in millions, except number of securities)
Corporate debt securities	106	$	1,093	$	(36	)	40	$	689	$	(18	)	146	$	1,782	$	(54	)
Residential mortgage backed securities	17	138		(2		)	55	670		(30		)	72	808		(32		)
Commercial mortgage backed securities	9	80		—			9	95		(3		)	18	175		(3		)
State and municipal obligations	1	5		—			2	102		(25		)	3	107		(25		)
Asset backed securities	5	52		—			3	32		(1		)	8	84		(1		)
Foreign government bonds and obligations	4	10		(1		)	14	27		(5		)	18	37		(6		)
Total	142	$	1,378	$	(39	)	123	$	1,615	$	(82	)	265	$	2,993	$	(121	)

As part of the Company’s ongoing monitoring process, management determined that a majority of the change in gross unrealized losses on its Available-for-Sale securities is attributable to movement in interest rates.

9

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Income for other-than-temporary impairments related to credit losses on Available-for-Sale securities for which a portion of the securities’ total other-than-temporary impairments was recognized in other comprehensive income (loss):

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2015		2014		2015		2014
	(in millions)
Beginning balance	$	33	$	54	$	33	$	54
Credit losses for which an other-than-temporary impairment was not previously recognized	—		—		—		—
Ending balance	$	33	$	54	$	33	$	54

The change in net unrealized securities gains (losses) in other comprehensive income (loss) includes three components, net of tax: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit other-than-temporary impairment losses to credit losses; and (iii) other adjustments primarily consisting of changes in insurance and annuity asset and liability balances, such as deferred acquisition costs (“DAC”), deferred sales inducement costs (“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 a rollforward of the net unrealized securities gains on Available-for-Sale securities included in AOCI:

	Net Unrealized Securities Gains			Deferred Income Tax			AOCI Related to Net Unrealized Securities Gains
	(in millions)
Balance at January 1, 2014	$	1,033		$	(366	)	$	667
Net unrealized securities gains arising during the period (1)	653			(231		)	422
Reclassification of net securities gains included in net income	(5		)	2			(3		)
Impact of other adjustments	(257		)	90			(167		)
Balance at June 30, 2014	$	1,424		$	(505	)	$	919		(2)
Balance at January 1, 2015	$	1,148		$	(407	)	$	741
Net unrealized securities losses arising during the period (1)	(417		)	146			(271		)
Reclassification of net securities gains included in net income	(17		)	6			(11		)
Impact of other adjustments	203			(71		)	132
Balance at June 30, 2015	$	917		$	(326	)	$	591		(2)

⁽¹⁾  Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period.

⁽²⁾   Includes $1 million and $3 million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at June 30, 2015 and 2014, respectively.

Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in net realized investment gains were as follows:

	Three Months Ended   June 30,					Six Months Ended   June 30,
	2015		2014			2015			2014
	(in millions)
Gross realized investment gains	$	5	$	3		$	22		$	9
Gross realized investment losses	—		(2		)	(5		)	(3		)
Other-than-temporary impairments	—		—			—			(1		)
Total	$	5	$	1		$	17		$	5

Other-than-temporary impairments for the six months endedJune 30, 2014 primarily related to timing of the Company's decision to sell and subsequent disposition of a corporate debt security.

10

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Available-for-Sale securities by contractual maturity at June 30, 2015 were as follows:

	Amortized Cost		Fair Value
	(in millions)
Due within one year	$	1,012	$	1,036
Due after one year through five years	5,203		5,652
Due after five years through 10 years	5,069		5,212
Due after 10 years	3,635		4,279
	14,919		16,179
Residential mortgage backed securities	3,219		3,296
Commercial mortgage backed securities	2,115		2,195
Asset backed securities	770		808
Common stocks	2		7
Total	$	21,025	$	22,485

Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities, commercial mortgage backed securities and asset backed securities are not due at a single maturity date. As such, these securities, as well as common stocks, were not included in the maturities distribution.

Net investment income is summarized as follows:

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2015		2014		2015		2014
	(in millions)
Fixed maturities	$	262	$	278	$	526	$	564
Mortgage loans	46		45		91		91
Other investments	3		8		8		17
	311		331		625		672
Less: investment expenses	9		8		17		16
Total	$	302	$	323	$	608	$	656

5. Financing Receivables

The Company’s financing receivables include commercial and residential mortgage loans, syndicated loans and policy loans. Syndicated loans are reflected in other investments.

Allowance for Loan Losses

Policy loans do not exceed the cash surrender value of the policy at origination. As there is minimal risk of loss related to policy loans, the Company does not record an allowance for loan losses for policy loans. The Company does not currently have an allowance for loan losses for residential mortgage loans.

The following table presents a rollforward of the allowance for loan losses for commercial mortgage loans and syndicated loans for the six months ended and the ending balance of the allowance for loan losses by impairment method:

	June 30,
	2015			2014
	(in millions)
Beginning balance	$	28		$	28
Charge-offs	(2		)	(2		)
Provisions	1			—
Ending balance	$	27		$	26
Individually evaluated for impairment	$	6		$	8
Collectively evaluated for impairment	21			18

11

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The recorded investment in commercial and residential mortgage loans and syndicated loans by impairment method was as follows:

	June 30, 2015		December 31, 2014
	(in millions)
Individually evaluated for impairment	$	33	$	32
Collectively evaluated for impairment	3,661		3,740
Total	$	3,694	$	3,772

As of June 30, 2015 and December 31, 2014, the Company’s recorded investment in financing receivables individually evaluated for impairment for which there was no related allowance for loan losses was $13 million and $4 million, respectively.

During the three months ended June 30, 2015 and 2014, the Company purchased $24 million and $25 million, respectively, and sold $1 million and $6 million, respectively, of syndicated loans. During the six months ended June 30, 2015 and 2014, the Company purchased $36 million and $90 million, respectively, and sold $7 million and $10 million, respectively, consisting primarily of syndicated loans.

Credit Quality Information

Nonperforming loans, which are generally loans 90 days or more past due, were $8 million and $10 million as of June 30, 2015 and December 31, 2014, respectively. All other loans were considered to be performing.

Commercial Mortgage Loans

The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates as necessary. Commercial mortgage loans which management has assigned its highest risk rating were 1% of total commercial mortgage loans at both June 30, 2015 and December 31, 2014. 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
	June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014
	(in millions)
Pacific	$	712	$	673	27	%	26	%
South Atlantic	707		710		27		27
Mountain	245		236		9		9
West North Central	224		223		9		8
East North Central	207		237		8		9
Middle Atlantic	196		210		7		8
West South Central	145		151		6		6
New England	121		130		5		5
East South Central	59		62		2		2
	2,616		2,632		100	%	100	%
Less: allowance for loan losses	21		23
Total	$	2,595	$	2,609

12

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Concentrations of credit risk of commercial mortgage loans by property type were as follows:

	Loans				Percentage
	June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014
	(in millions)
Retail	$	929	$	956	35	%	36	%
Office	517		535		20		20
Apartments	473		473		18		18
Industrial	442		447		17		17
Mixed use	45		46		2		2
Hotel	37		32		1		1
Other	173		143		7		6
	2,616		2,632		100	%	100	%
Less: allowance for loan losses	21		23
Total	$	2,595	$	2,609

Residential Mortgage Loans

The recorded investment in residential mortgage loans at June 30, 2015 and December 31, 2014 was $638 million and $689 million, respectively. The Company considers the credit worthiness of borrowers (FICO score), collateral characteristics such as loan-to-value (“LTV”) and geographic concentration to determine when an amount for an allowance for loan losses for residential mortgage loans is appropriate. At a minimum, management updates FICO scores and LTV ratios semiannually. As of June 30, 2015 and December 31, 2014, no allowance for loan losses was recorded.

Residential mortgage loans are presented net of unamortized discount of $27 million and $34 million as of June 30, 2015 and December 31, 2014, respectively.

As of both June 30, 2015 and December 31, 2014, approximately 5% of residential mortgage loans had FICO scores below 640. As of both June 30, 2015 and December 31, 2014, approximately 1% of the Company’s residential mortgage loans had LTV ratios greater than 90%. The Company’s most significant geographic concentration for residential mortgage loans is in California representing 37% of the portfolio as of both June 30, 2015 and December 31, 2014. No other state represents more than 10% of the total residential mortgage loan portfolio.

Syndicated Loans

The recorded investment in syndicated loans at June 30, 2015 and December 31, 2014 was $440 million and $451 million, respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. The primary credit indicator for syndicated loans is whether the loans are performing in accordance with the contractual terms of the syndication. Total nonperforming syndicated loans at both June 30, 2015 and December 31, 2014 were $3 million.

Troubled Debt Restructurings

The recorded investment in restructured loans was not material as of June 30, 2015 and December 31, 2014. The troubled debt restructurings did not have a material impact to the Company’s allowance for loan losses or income recognized for the three months and six months ended June 30, 2015 and 2014. There are no material commitments to lend additional funds to borrowers whose loans have been restructured. 

6. DeferredAcquisitionCostsand Deferred Sales Inducement Costs

The balances of and changes in DAC were as follows:

	2015			2014
	(in millions)
Balance at January 1	$	2,576		$	2,633
Capitalization of acquisition costs	130			129
Amortization	(129		)	(132		)
Impact of change in net unrealized securities losses (gains)	47			(52		)
Balance at June 30	$	2,624		$	2,578

13

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The balances of and changes in DSIC, which are included in other assets, were as follows:

	2015			2014
	(in millions)
Balance at January 1	$	361		$	409
Capitalization of sales inducement costs	2			3
Amortization	(25		)	(25		)
Impact of change in net unrealized securities losses (gains)	7			(8		)
Balance at June 30	$	345		$	379

7. Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities

Policyholder account balances, future policy benefits and claims consisted of the following:

	June 30, 2015			December 31, 2014
	(in millions)
Policyholder account balances
Fixed annuities	$	11,734		$	12,700
Variable annuity fixed sub-accounts	4,874			4,860
Variable universal life (“VUL”)/universal life (“UL”) insurance	2,872			2,856
Indexed universal life (“IUL”) insurance	661			534
Other life insurance	812			840
Total policyholder account balances	20,953			21,790
Future policy benefits
Variable annuity guaranteed minimum withdrawal benefits (“GMWB”)	468			693
Variable annuity guaranteed minimum accumulation benefits (“GMAB”) (1)	(45		)	(41		)
Other annuity liabilities	48			115
Fixed annuities life contingent liabilities	1,504			1,511
Equity indexed annuities (“EIA”)	29			29
Life, disability income and long term care insurance	5,173			5,106
VUL/UL and other life insurance additional liabilities	438			437
Total future policy benefits	7,615			7,850
Policy claims and other policyholders’ funds	176			165
Total policyholder account balances, future policy benefits and claims	$	28,744		$	29,805

⁽¹⁾  Includes the value of GMAB embedded derivatives that was a net asset at both June 30, 2015 and December 31, 2014 reported as a contra liability.

Separate account liabilities consisted of the following:

	June 30, 2015		December 31, 2014
	(in millions)
Variable annuity	$	72,264	$	72,125
VUL insurance	7,026		7,016
Other insurance	36		37
Total	$	79,326	$	79,178

8. Variable Annuity and Insurance Guarantees

The majority of the variable annuity contracts offered by the Company contain guaranteed minimum death benefit (“GMDB”) provisions. The Company also offers variable annuities with death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as gain gross-up (“GGU”) benefits. In addition, the Company offers contracts with GMWB and GMAB provisions. The Company previously offered contracts containing guaranteed minimum income benefit (“GMIB”) provisions.

14

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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:

	June 30, 2015							December 31, 2014
Variable Annuity Guarantees by  Benefit Type (1)	Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk		Weighted Average Attained Age	Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk		Weighted Average Attained Age
	(in millions, except age)
GMDB:
Return of premium	$	56,176	$	54,345	$	47	64	$	55,378	$	53,565	$	24	64
Five/six-year reset	10,008		7,462		31		65	10,360		7,821		28		64
One-year ratchet	7,223		6,846		69		67	7,392		7,006		39		66
Five-year ratchet	1,734		1,677		4		63	1,773		1,717		2		63
Other	926		909		45		70	959		941		38		70
Total — GMDB	$	76,067	$	71,239	$	196	64	$	75,862	$	71,050	$	131	64
GGU death benefit	$	1,097	$	1,045	$	123	67	$	1,072	$	1,019	$	123	67
GMIB	$	310	$	288	$	10	67	$	343	$	321	$	9	67
GMWB:
GMWB	$	3,478	$	3,467	$	1	68	$	3,671	$	3,659	$	1	68
GMWB for life	37,753		37,629		137		66	36,843		36,735		95		65
Total — GMWB	$	41,231	$	41,096	$	138	66	$	40,514	$	40,394	$	96	65
GMAB	$	4,246	$	4,229	$	5	58	$	4,247	$	4,234	$	2	58

⁽¹⁾  Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table.

The net amount at risk for GMDB, GGU and GMAB guarantees is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB and GMWB guarantees is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero. The present value is calculated using a discount rate that is consistent with assumptions embedded in the Company’s annuity pricing models.

The following table provides information related to insurance guarantees for which the Company has established additional liabilities:

	June 30, 2015			December 31, 2014
	Net Amount at Risk		Weighted Average Attained Age	Net Amount at Risk		Weighted Average Attained Age
	(in millions, except age)
UL secondary guarantees	$	6,258	63	$	6,076	62

The net amount at risk for UL secondary guarantees is defined as the current guaranteed death benefit amount in excess of the current policyholder value.

15

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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, 2014	$	4		$	6	$	(383	)	$	(62	)	$	206
Incurred claims	2			—		252			(14		)	39
Paid claims	(2		)	—		—			—			(9		)
Balance at June 30, 2014	$	4		$	6	$	(131	)	$	(76	)	$	236
Balance at January 1, 2015	$	9		$	7	$	693		$	(41	)	$	263
Incurred claims	1			—		(225		)	(4		)	45
Paid claims	(1		)	—		—			—			(12		)
Balance at June 30, 2015	$	9		$	7	$	468		$	(45	)	$	296

⁽¹⁾  The incurred claims for GMWB and GMAB represent the total change in the liabilities (contra liabilities).

The liabilities for guaranteed benefits are supported by general account assets.

The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits:

	June 30, 2015		December 31, 2014
	(in millions)
Mutual funds:
Equity	$	41,180	$	41,403
Bond	24,736		25,060
Other	5,062		4,490
Total mutual funds	$	70,978	$	70,953

9. Short-term Borrowings

The Company enters into repurchase agreements in exchange for cash which it accounts for as secured borrowings and has pledged Available-for-Sale securities to collateralize its obligations under the repurchase agreements. As of June 30, 2015 and December 31, 2014, the Company has pledged $23 million and $18 million, respectively, of agency residential mortgage backed securities and $29 million and $34 million, respectively, of commercial mortgage backed securities. The amount of the Company’s liability including accrued interest as of both June 30, 2015 and December 31, 2014 was $50 million. The remaining maturity of outstanding repurchase agreements was less than two months as of June 30, 2015 and less than four months as of December 31, 2014. The weighted average annualized interest rate on the repurchase agreements held as of both June 30, 2015 and December 31, 2014 was 0.4%.

RiverSource Life Insurance Company is a member of the Federal Home Loan Bank (“FHLB”) of Des Moines which provides access to collateralized borrowings. The Company has pledged Available-for-Sale securities consisting of commercial mortgage backed securities to collateralize its obligation under these borrowings. The fair value of the securities pledged is recorded in investments and was $303 million and $298 million as of June 30, 2015 and December 31, 2014, respectively. The amount of the Company’s liability including accrued interest as of both June 30, 2015 and December 31, 2014 was $150 million. The remaining maturity of outstanding FHLB advances was less than three months as of June 30, 2015 and less than two months as of December 31, 2014. The weighted average annualized interest rate on the FHLB advances held as of both June 30, 2015 and December 31, 2014 was 0.3%.

10. 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

16

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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 measured at fair value on a recurring basis:

	June 30, 2015
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Available-for-Sale securities: Fixed maturities:
Corporate debt securities	$	—	$	13,513	$	1,339	$	14,852
Residential mortgage backed securities	—		3,288		8		3,296
Commercial mortgage backed securities	—		2,161		34		2,195
State and municipal obligations	—		1,049		—		1,049
Asset backed securities	—		690		118		808
Foreign government bonds and obligations	—		239		—		239
U.S. government and agencies obligations	4		35		—		39
Total Available-for-Sale securities: Fixed maturities	4		20,975		1,499		22,478
Common stocks	3		4		—		7
Cash equivalents	50		163		—		213
Other assets:
Interest rate derivative contracts	—		1,574		—		1,574
Equity derivative contracts	226		1,836		—		2,062
Credit derivative contracts	—		9		—		9
Foreign exchange derivative contracts	—		42		—		42
Other derivative contracts	—		15		—		15
Total other assets	226		3,476		—		3,702
Separate account assets	—		79,326		—		79,326
Total assets at fair value	$	283	$	103,944	$	1,499	$	105,726
Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives	$	—	$	6	$	—	$	6
IUL embedded derivatives	—		—		292		292
GMWB and GMAB embedded derivatives	—		—		235		235		(1)
Total policyholder account balances, future policy benefits and claims	—		6		527		533		(2)
Other liabilities:
Interest rate derivative contracts	—		1,021		—		1,021
Equity derivative contracts	307		2,273		—		2,580
Foreign exchange derivative contracts	—		5		—		5
Other derivative contracts	—		13		—		13
Total other liabilities	307		3,312		—		3,619
Total liabilities at fair value	$	307	$	3,318	$	527	$	4,152

⁽¹⁾  The fair value of the GMWB and GMAB embedded derivatives included $541 millionof individual contracts in a liability position and $306 millionof individual contracts in an asset position.

⁽²⁾  The Company’s adjustment for nonperformance risk resulted in a $300 million cumulative decrease to the embedded derivatives.

17

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

	December 31, 2014
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Available-for-Sale securities: Fixed maturities:
Corporate debt securities	$	—	$	13,830	$	1,353	$	15,183
Residential mortgage backed securities	—		3,483		9		3,492
Commercial mortgage backed securities	—		2,138		90		2,228
State and municipal obligations	—		1,113		—		1,113
Asset backed securities	—		786		151		937
Foreign government bonds and obligations	—		251		—		251
U.S. government and agencies obligations	4		35		—		39
Total Available-for-Sale securities: Fixed maturities	4		21,636		1,603		23,243
Common stocks	3		3		1		7
Cash equivalents	1		235		—		236
Other assets:
Interest rate derivative contracts	—		1,955		—		1,955
Equity derivative contracts	282		1,711		—		1,993
Foreign exchange derivative contracts	—		29		—		29
Total other assets	282		3,695		—		3,977
Separate account assets	—		79,178		—		79,178
Total assets at fair value	$	290	$	104,747	$	1,604	$	106,641
Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives	$	—	$	6	$	—	$	6
IUL embedded derivatives	—		—		242		242
GMWB and GMAB embedded derivatives	—		—		479		479		(1)
Total policyholder account balances, future policy benefits and claims	—		6		721		727		(2)
Other liabilities:
Interest rate derivative contracts	—		1,136		—		1,136
Equity derivative contracts	376		2,286		—		2,662
Foreign exchange derivative contracts	—		2		—		2
Other derivative contracts	—		11		—		11
Total other liabilities	376		3,435		—		3,811
Total liabilities at fair value	$	376	$	3,441	$	721	$	4,538

⁽¹⁾  The fair value of the GMWB and GMAB embedded derivatives included $700 millionof individual contracts in a liability position and $221 millionof individual contracts in an asset position.

⁽²⁾  The Company’s adjustment for nonperformance risk resulted in a $311 million cumulative decrease to the embedded derivatives.

18

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following tables provide a summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis:

	Available-for-Sale Securities: Fixed Maturities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Total
	(in millions)
Balance, April 1, 2015	$	1,360		$	39		$	20		$	119		$	1,538
Total losses included in:
Other comprehensive income	(19		)	—			—			—			(19		)
Purchases	36			—			31			1			68
Settlements	(38		)	—			(1		)	(2		)	(41		)
Transfers out of Level 3	—			(31		)	(16		)	—			(47		)
Balance, June 30, 2015	$	1,339		$	8		$	34		$	118		$	1,499
Changes in unrealized gains (losses) relating to assets held at June 30, 2015 included in:
Net investment income	$	—		$	—		$	—		$	—		$	—

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives			GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, April 1, 2015	$	270		$	827			$	1,097
Total gains included in:
Net income	—			(659		)	(1)	(659		)
Issues	26			64				90
Settlements	(4		)	3				(1		)
Balance, June 30, 2015	$	292		$	235			$	527
Changes in unrealized gains relating to liabilities held at June 30, 2015 included in:
Benefits, claims, losses and settlement expenses	$	—		$	(651	)		$	(651	)

⁽¹⁾  Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income.

19

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

	Available-for-Sale Securities: Fixed Maturities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Total			Common Stocks		Other Assets: Other Derivatives Contracts
	(in millions)
Balance, April 1, 2014	$	1,391		$	11		$	55		$	149		$	1,606		$	—	$	—
Total gains included in:
Other comprehensive income	10			—			—			1			11			—		—
Purchases	33			—			—			—			33			1		1
Settlements	(58		)	(1		)	—			(1		)	(60		)	—		—
Transfers out of Level 3	—			—			(40		)	—			(40		)	—		—
Balance, June 30, 2014	$	1,376		$	10		$	15		$	149		$	1,550		$	1	$	1
Changes in unrealized gains (losses) relating to assets held at June 30, 2014 included in:
Net investment income	$	—		$	—		$	—		$	—		$	—		$	—	$	—

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, April 1, 2014	$	154			$	(471	)		$	(317	)
Total losses included in:
Net income	8			(1)	68			(2)	76
Issues	24				60				84
Settlements	(2		)		(4		)		(6		)
Balance, June 30, 2014	$	184			$	(347	)		$	(163	)
Changes in unrealized losses relating to liabilities held at June 30, 2014 included in:
Benefits, claims, losses and settlement expenses	$	—			$	67			$	67
Interest credited to fixed accounts	8				—				8

⁽¹⁾  Included in interest credited to fixed accounts in the Consolidated Statements of Income.

⁽²⁾  Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income.

20

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

	Available-for-Sale Securities: Fixed Maturities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Total			Common Stocks
	(in millions)
Balance, January 1, 2015	$	1,353		$	9		$	90		$	151		$	1,603		$	1
Total losses included in:
Other comprehensive income	(7		)	—			—			—			(7		)	(1		)
Purchases	51			31			31			1			114			—
Settlements	(58		)	(1		)	(2		)	(2		)	(63		)	—
Transfers into Level 3	—			—			6			—			6			—
Transfers out of Level 3	—			(31		)	(91		)	(32		)	(154		)	—
Balance, June 30, 2015	$	1,339		$	8		$	34		$	118		$	1,499		$	—
Changes in unrealized gains (losses) relating to assets held at June 30, 2015 included in:
Net investment income	$	—		$	—		$	—		$	—		$	—		$	—

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, January 1, 2015	$	242			$	479			$	721
Total (gains) losses included in:
Net income	14			(1)	(379		)	(2)	(365		)
Issues	45				128				173
Settlements	(9		)		7				(2		)
Balance, June 30, 2015	$	292			$	235			$	527
Changes in unrealized (gains) losses relating to liabilities held at June 30, 2015 included in:
Benefits, claims, losses and settlement expenses	$	—			$	(373	)		$	(373	)
Interest credited to fixed accounts	14				—				14

⁽¹⁾  Included in interest credited to fixed accounts in the Consolidated Statements of Income.

⁽²⁾  Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income.

21

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

	Available-for-Sale Securities: Fixed Maturities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Total			Common Stocks		Other Assets: Other Derivatives Contracts
	(in millions)
Balance, January 1, 2014	$	1,516		$	58		$	30		$	218		$	1,822		$	—	$	—
Total gains included in:
Other comprehensive income	15			—			—			1			16			—		—
Purchases	57			11			39			—			107			1		1
Sales	(11		)	—			—			—			(11		)	—		—
Settlements	(201		)	(1		)	—			(1		)	(203		)	—		—
Transfers out of Level 3	—			(58		)	(54		)	(69		)	(181		)	—		—
Balance, June 30, 2014	$	1,376		$	10		$	15		$	149		$	1,550		$	1	$	1
Changes in unrealized gains (losses) relating to assets held at June 30, 2014 included in:
Net investment income	$	—		$	—		$	—		$	—		$	—		$	—	$	—

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, January 1, 2014	$	125			$	(575	)		$	(450	)
Total losses included in:
Net income	14			(1)	120			(2)	134
Issues	48				119				167
Settlements	(3		)		(11		)		(14		)
Balance, June 30, 2014	$	184			$	(347	)		$	(163	)
Changes in unrealized losses relating to liabilities held at June 30, 2014 included in:
Benefits, claims, losses and settlement expenses	$	—			$	119			$	119
Interest credited to fixed accounts	14				—				14

⁽¹⁾  Included in interest credited to fixed accounts in the Consolidated Statements of Income.

⁽²⁾  Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income.

The decrease to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $45 million and $6 million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual for the three months ended June 30, 2015 and 2014, respectively. The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $(8) million and $9 million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual for the six months ended June 30, 2015 and 2014, respectively.

Securities transferred from Level 3 primarily represent securities with fair values that are now obtained from a third party pricing service with observable inputs. Securities transferred to Level 3 represent securities with fair values that are now based on a single non-binding broker quote. The Company recognizes transfers between levels of the fair value hierarchy as of the beginning of the quarter in which each transfer occurred. For assets and liabilities held at the end of the reporting periods that are measured at fair value on a recurring basis, there were no transfers between Level 1 and Level 2.

22

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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:

	June 30, 2015
	Fair Value		Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	1,324	Discounted cash flow	Yield/spread to U.S. Treasuries	1.1	%	-	3.5%	1.5%
IUL embedded derivatives	$	292	Discounted cash flow	Nonperformance risk (1)	67			bps
GMWB and GMAB embedded derivatives	$	235	Discounted cash flow	Utilization of guaranteed withdrawals (2)	0.0	%	-	51.1%
				Surrender rate	0.0	%	-	59.1%
				Market volatility (3)	5.3	%	-	21.0%
				Nonperformance risk (1)	67			bps
				Elective contractholder strategy allocations (4)	0.0	%	-	3.0%

	December 31, 2014
	Fair Value		Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	1,311	Discounted cash flow	Yield/spread to U.S. Treasuries	1.0	%	-	3.9%	1.5%
IUL embedded derivatives	$	242	Discounted cash flow	Nonperformance risk (1)	65			bps
GMWB and GMAB embedded derivatives	$	479	Discounted cash flow	Utilization of guaranteed withdrawals (2)	0.0	%	-	51.1%
				Surrender rate	0.0	%	-	59.1%
				Market volatility (3)	5.2	%	-	20.9%
				Nonperformance risk (1)	65			bps
				Elective contractholder strategy allocations (4)	0.0	%	-	3.0%

^. 

⁽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.

⁽⁴⁾  The elective allocation represents the percentage of contractholders that are assumed to electively switch their investment allocation to a different allocation model.

Level 3 measurements not included in the table above are obtained from non-binding broker quotes where unobservable inputs are not reasonably available to the Company.

Sensitivity of Fair Value Measurements to Changes in Unobservable Inputs

Significant increases (decreases) in the yield/spread to U.S. Treasuries used in the fair value measurement of Level 3 corporate debt securities in isolation would result in a significantly lower (higher) fair value measurement.

Significant increases (decreases) in nonperformance risk used in the fair value measurement of the IUL embedded derivatives in isolation would result in a significantly lower (higher) fair value measurement.

Significant increases (decreases) in utilization and volatility used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly higher (lower) liability value. Significant increases (decreases) in nonperformance risk, surrender rate and elective investment allocation model used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly 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 system and whether the value of the guaranteed benefit exceeds the contract accumulation value.

Determination of Fair Value

The Company uses valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The Company’s market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company’s income approach uses valuation techniques

23

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

to convert future projected cash flows to a single discounted present value amount. When applying either approach, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs.

The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy.

Assets

Cash Equivalents

Cash equivalents include highly liquid investments with original maturities of 90 days or less. Actively traded money market funds are measured at their 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.

Available-for-Sale 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, state and municipal obligations, asset backed securities and U.S. agency and foreign government securities. The fair value of these Level 2 securities is based on a market approach with prices obtained from third party pricing services. Observable inputs used to value these securities can include, but are not limited to, reported trades, benchmark yields, issuer spreads and non-binding broker quotes. Level 3 securities primarily include certain corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and asset backed securities. The fair value of corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and certain asset backed securities classified as Level 3 is typically based on a single non-binding broker quote. The underlying inputs used for some of the non-binding broker quotes are not readily available to the Company. The Company’s privately placed corporate bonds are typically based on a single non-binding broker quote. In addition to the general pricing controls, the Company reviews the broker prices to ensure that the broker quotes are reasonable and, when available, compares prices of privately issued securities to public issues from the same issuer to ensure that the implicit illiquidity premium applied to the privately placed investment is reasonable considering investment characteristics, maturity, and average life of the investment.

In consideration of the above, management is responsible for the fair values recorded on the financial statements. Prices received from third party pricing services are subjected to exception reporting that identifies investments with significant daily price movements as well as no movements. The Company reviews the exception reporting and resolves the exceptions through reaffirmation of the price or recording an appropriate fair value estimate. The Company also performs subsequent transaction testing. The Company performs annual due diligence of third party pricing services. The Company’s due diligence procedures include assessing the vendor’s valuation qualifications, control environment, analysis of asset-class specific valuation methodologies, and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. The Company also considers the results of its exception reporting controls and any resulting price challenges that arise.

Separate Account Assets

The fair value of assets held by separate accounts is determined by the NAV of the funds in which those separate accounts are invested. The NAV represents the exit price for the separate account. Separate account assets are classified as Level 2 as they are traded in principal-to-principal markets with little publicly released pricing information.

Other Assets

Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements. The fair value of derivatives that are traded in less active over-the-counter (“OTC”) markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and options. Other derivative contracts consist of the Company's macro hedge program. See Note 12 for further information on the macro hedge program. The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial at June 30, 2015 and December 31, 2014. See Note 11 and Note 12 for further information on the credit risk of derivative instruments and related collateral.

24

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Liabilities

Policyholder Account Balances, Future Policy Benefits and Claims

The Company values the embedded derivatives attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculate fair value by discounting expected cash flows from benefits plus margins for profit, risk and expenses less embedded derivative fees. The projected cash flows used by these models include observable capital market assumptions and incorporate significant unobservable inputs related to contractholder behavior assumptions, implied volatility, and margins for risk, profit and expenses that the Company believes an exit market participant would expect. The fair value also reflects a current estimate of the Company’s nonperformance risk specific to these embedded derivatives. Given the significant unobservable inputs to this valuation, these measurements are classified as Level 3. The embedded derivatives attributable to these provisions are recorded in policyholder account balances, future policy benefits and claims.

The Company uses various Black-Scholes calculations to determine the fair value of the embedded derivatives associated with the provisions of its EIA and IUL products. Significant inputs to the EIA calculation include observable interest rates, volatilities and equity index levels and, therefore, are classified as Level 2. The fair value of the IUL embedded derivatives includes significant observable interest rates, volatilities and equity index levels and the significant unobservable estimate of the Company’s nonperformance risk. Given the significance of the nonperformance risk assumption to the fair value, the IUL embedded derivatives are classified as Level 3. The embedded derivatives attributable to these provisions are recorded in policyholder account balances, future policy benefits and claims.

The Company’s Corporate Actuarial Department calculates the fair value of the embedded derivatives on a monthly basis. During this process, control checks are performed to validate the completeness of the data. Actuarial management approves various components of the valuation along with the final results. The change in the fair value of the embedded derivatives is reviewed monthly with senior management. The Level 3 inputs into the valuation are consistent with the pricing assumptions and updated as experience develops. Significant unobservable inputs that reflect policyholder behavior are reviewed quarterly along with other valuation assumptions.

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 fair value of derivatives that are traded in less active OTC markets are generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. Other derivative contracts consist of the Company’s macro hedge program. See Note 12 for further information on the macro hedge program. The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial at June 30, 2015 and December 31, 2014. See Note 11 and Note 12 for further information on the credit risk of derivative instruments and related collateral.

During the reporting periods, there were no material assets or liabilities measured at fair value on a nonrecurring basis.

The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value. All other financial instruments that are reported at fair value have been included above in the tables with balances of assets and liabilities measured at fair value on a recurring basis.

	June 30, 2015
	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total
	(in millions)
Financial Assets
Mortgage loans, net	$	3,233	$	—	$	—	$	3,315	$	3,315
Policy loans	816		—		—		802		802
Other investments	450		—		413		38		451
Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	12,016	$	—	$	—	$	12,803	$	12,803
Short-term borrowings	200		—		200		—		200
Other liabilities	108		—		—		104		104
Separate account liabilities	389		—		389		—		389

25

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

	December 31, 2014
	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total
	(in millions)
Financial Assets
Mortgage loans, net	$	3,298	$	—	$	—	$	3,413	$	3,413
Policy loans	805		—		—		793		793
Other investments	463		—		403		55		458
Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	12,979	$	—	$	—	$	13,996	$	13,996
Short-term borrowings	200		—		200		—		200
Other liabilities	124		—		—		121		121
Separate account liabilities	400		—		400		—		400

Mortgage Loans, Net

The fair value of commercial mortgage loans, except those with significant credit deterioration, is determined by discounting contractual cash flows using discount rates that reflect current pricing for loans with similar remaining maturities, liquidity and characteristics including LTV ratio, occupancy rate, refinance risk, debt service coverage, location, and property condition. For commercial mortgage loans with significant credit deterioration, fair value is determined using the same adjustments as above with an additional adjustment for the Company’s estimate of the amount recoverable on the loan.

The fair value of residential mortgage loans is determined by discounting estimated cash flows and incorporating adjustments for prepayment, administration expenses, loss severity and credit loss estimates, with discount rates based on the Company’s estimate of current market conditions.

Given the significant unobservable inputs to the valuation of mortgage loans, these measurements are classified as Level 3.

Policy Loans

Policy loans represent loans made against the cash surrender value of the underlying life insurance or annuity product. These loans and the related interest are usually realized at death of the policyholder or contractholder or at surrender of the contract and are not transferable without the underlying insurance or annuity contract. The fair value of policy loans is determined by estimating expected cash flows discounted at rates based on the U.S. Treasury curve. Policy loans are classified as Level 3 as the discount rate used may be adjusted for the underlying performance of individual policies.

Other Investments

Other investments primarily consist of syndicated loans and an investment in FHLB. The fair value of syndicated loans is obtained from a third party pricing service or non-binding broker quotes. Syndicated loans that are priced using a market approach with observable inputs are classified as Level 2 and syndicated loans priced using a single non-binding broker quote are classified as Level 3. The fair value of the investment in FHLB is approximated by the carrying value and classified as Level 3 due to restrictions on transfer and lack of liquidity in the primary market for this asset.

Policyholder Account Balances, Future Policy Benefits and Claims

The fair value of fixed annuities in deferral status is determined by discounting cash flows using a risk neutral discount rate with adjustments for profit margin, expense margin, early policy surrender behavior, a margin for adverse deviation from estimated early policy surrender behavior and the Company’s nonperformance risk specific to these liabilities. The fair value of non-life contingent fixed annuities in payout status, EIA host contracts and the fixed portion of a small number of variable annuity contracts classified as investment contracts is determined in a similar manner. Given the use of significant unobservable inputs to these valuations, the measurements are classified as Level 3.

Short-term Borrowings

The fair value of short-term borrowings is obtained from a third party pricing service. A nonperformance adjustment is not included as collateral requirements for these borrowings minimize the nonperformance risk. The fair value of short-term borrowings is classified as Level 2.

26

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Other Liabilities

Other liabilities consist of future funding commitments to affordable housing partnerships. The fair value of these future funding commitments is determined by discounting cash flows. The fair value of these commitments includes an adjustment for the Company’s nonperformance risk and is classified as Level 3 due to the use of the significant unobservable input.

Separate Account Liabilities

Certain separate account liabilities are classified as investment contracts and are carried at an amount equal to the related separate account assets. The NAV of the related separate account assets represents the exit price for the separate account liabilities. Separate account liabilities are classified as Level 2 as they are traded in principal-to-principal markets with little publicly released pricing information. A nonperformance adjustment is not included as the related separate account assets act as collateral for these liabilities and minimize nonperformance risk.

11. Offsetting Assets and Liabilities

Certain financial instruments and derivative instruments are eligible for offset in the Consolidated Balance Sheets. The Company’s derivative instruments and repurchase agreements are subject to master netting arrangements and collateral arrangements and qualify for offset. A master netting arrangement with a counterparty creates a right of offset for amounts due to and from that same counterparty that is enforceable in the event of a default or bankruptcy. 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:

	June 30, 2015
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets
							Financial Instruments (1)			Cash Collateral			Securities Collateral			Net Amount
	(in millions)
Derivatives:
OTC	$	3,305	$	—	$	3,305	$	(2,747	)	$	(254	)	$	(215	)	$	89
OTC cleared	321		—		321		(241		)	(80		)	—			—
Exchange-traded	76		—		76		—			—			—			76
Total derivatives	$	3,702	$	—	$	3,702	$	(2,988	)	$	(334	)	$	(215	)	$	165

	December 31, 2014
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets
							Financial Instruments (1)			Cash Collateral			Securities Collateral			Net Amount
	(in millions)
Derivatives:
OTC	$	3,612	$	—	$	3,612	$	(2,934	)	$	(228	)	$	(418	)	$	32
OTC cleared	304		—		304		(222		)	(82		)	—			—
Exchange-traded	61		—		61		—			—			—			61
Total derivatives	$	3,977	$	—	$	3,977	$	(3,156	)	$	(310	)	$	(418	)	$	93

⁽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.

27

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements:

	June 30, 2015
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Liabilities Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets
							Financial Instruments (1)			Cash Collateral		Securities Collateral			Net Amount
	(in millions)
Derivatives:
OTC	$	3,378	$	—	$	3,378	$	(2,747	)	$	—	$	(631	)	$	—
OTC cleared	241		—		241		(241		)	—		—			—
Total derivatives	3,619		—		3,619		(2,988		)	—		(631		)	—
Repurchase agreements	50		—		50		—			—		(50		)	—
Total	$	3,669	$	—	$	3,669	$	(2,988	)	$	—	$	(681	)	$	—

	December 31, 2014
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Liabilities Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets
							Financial Instruments (1)			Cash Collateral		Securities Collateral			Net Amount
	(in millions)
Derivatives:
OTC	$	3,589	$	—	$	3,589	$	(2,934	)	$	—	$	(655	)	$	—
OTC cleared	222		—		222		(222		)	—		—			—
Total derivatives	3,811		—		3,811		(3,156		)	—		(655		)	—
Repurchase agreements	50		—		50		—			—		(50		)	—
Total	$	3,861	$	—	$	3,861	$	(3,156	)	$	—	$	(705	)	$	—

⁽¹⁾  Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets.

In the tables above, the amounts of assets or liabilities presented in the Consolidated Balance Sheets are offset first by financial instruments that have the right of offset under master netting or similar arrangements, then any remaining amount is reduced by the amount of cash and securities collateral. The actual 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.

The Company’s freestanding derivative instruments are reflected in other assets and other liabilities. Repurchase agreements are reflected in short-term borrowings. See Note 12 for additional disclosures related to the Company’s derivative instruments and Note 9 for additional disclosures related to the Company’s repurchase agreements.

12. 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 and interest rate indices or prices. The Company primarily enters into derivative agreements for risk management purposes related to the Company’s products and operations.

The Company’s freestanding derivatives are recorded at fair value and are reflected in other assets or other liabilities. The Company’s freestanding derivative instruments are all subject to master netting arrangements. The Company’s policy on the recognition of derivatives on the Consolidated Balance Sheets is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. See Note 11 for additional information regarding the estimated fair value of the Company’s freestanding derivatives after considering the effect of master netting arrangements and collateral.

28

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The Company currently uses derivatives as economic hedges and accounting hedges. The following table presents the balance sheet location and the gross fair value of derivative instruments, including embedded derivatives:

		Assets					Liabilities
Derivatives not designated as hedging instruments	Balance Sheet Location	June 30, 2015		December 31, 2014		Balance Sheet Location	June 30, 2015		December 31, 2014
		(in millions)					(in millions)
GMWB and GMAB
Interest rate contracts	Other assets	$	1,574	$	1,955	Other liabilities	$	1,021	$	1,136
Equity contracts	Other assets	2,036		1,954		Other liabilities	2,576		2,650
Credit contracts	Other assets	9		—		Other liabilities	—		—
Foreign exchange contracts	Other assets	42		29		Other liabilities	5		2
Embedded derivatives (1)	N/A	—		—		Policyholder account balances, future policy benefits and claims (2)	235		479
Total GMWB and GMAB		3,661		3,938			3,837		4,267
Other derivatives:
Equity
EIA embedded derivatives	N/A	—		—		Policyholder account balances, future policy benefits and claims	6		6
IUL	Other assets	26		39		Other liabilities	4		12
IUL embedded derivatives	N/A	—		—		Policyholder account balances, future policy benefits and claims	292		242
Other
Macro hedge program	Other assets	15		—		Other liabilities	13		11
Total other derivatives		41		39			315		271
Total derivatives		$	3,702	$	3,977		$	4,152	$	4,538

N/A Not applicable.

⁽¹⁾  The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.

⁽²⁾  The fair value of the GMWB and GMAB embedded derivatives at June 30, 2015 included $541 million of individual contracts in a liability position and $306 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives at December 31, 2014 included $700 million of individual contracts in a liability position and $221 million of individual contracts in an asset position.

See Note 10 for additional information regarding the Company’s fair value measurement of derivative instruments.

29

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following table presents a summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income:

		Amount of Gain (Loss) on Derivatives Recognized in Income
Derivatives not designated as hedging instruments	Location of Gain (Loss) on Derivatives Recognized in Income	Three Months Ended June 30,						Six Months Ended   June 30,
		2015			2014			2015			2014
		(in millions)
GMWB and GMAB
Interest rate contracts	Benefits, claims, losses and settlement expenses	$	(562	)	$	245		$	(176	)	$	509
Equity contracts	Benefits, claims, losses and settlement expenses	(137		)	(197		)	(259		)	(387		)
Credit contracts	Benefits, claims, losses and settlement expenses	14			(12		)	5			(22		)
Foreign exchange contracts	Benefits, claims, losses and settlement expenses	(2		)	—			(8		)	(1		)
Embedded derivatives (1)	Benefits, claims, losses and settlement expenses	592			(124		)	244			(228		)
Total GMWB and GMAB		(95		)	(88		)	(194		)	(129		)
Other derivatives:
Interest rate
Tax hedge	Net investment income	—			—			—			3
Equity
EIA	Interest credited to fixed accounts	—			1			—			1
EIA embedded derivatives	Interest credited to fixed accounts	—			(1		)	—			(1		)
IUL	Interest credited to fixed accounts	(2		)	6			(1		)	11
IUL embedded derivatives	Interest credited to fixed accounts	4			(5		)	(5		)	(11		)
Other
Macro hedge program	Benefits, claims, losses and settlement expenses	6			(10		)	—			3
Total other derivatives		8			(9		)	(6		)	6
Total derivatives		$	(87	)	$	(97	)	$	(200	)	$	(123	)

⁽¹⁾  The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.

The Company holds derivative instruments that either do not qualify or are not designated for hedge accounting treatment. These derivative instruments are used as economic hedges of equity, interest rate, credit and foreign currency exchange rate risk related to various products and transactions of the Company.

Certain annuity contracts contain GMWB or GMAB provisions, which guarantee the right to make limited partial withdrawals each contract year regardless of the volatility inherent in the underlying investments or guarantee a minimum accumulation value of consideration received at the beginning of the contract period, after a specified holding period, respectively. The Company economically hedges the exposure related to non-life contingent GMWB and GMAB provisions primarily using various futures, options, interest rate swaptions, interest rate swaps, total return swaps and variance swaps. At June 30, 2015 and December 31, 2014, the gross notional amount of derivative contracts for the Company’s GMWB and GMAB provisions was $137.9 billion and $132.0 billion, respectively.

The deferred premium associated with certain of the above options is paid or received semi-annually over the life of the option contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options:

	Premiums Payable		Premiums Receivable
	(in millions)
2015 (1)	$	185	$	37
2016	326		75
2017	257		75
2018	196		124
2019	241		85
2020-2026	525		204
Total	$	1,730	$	600

⁽¹⁾  2015 amounts represent the amounts payable and receivable for the period from July 1, 2015 to December 31, 2015.

30

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Actual timing and payment amounts may differ due to future contract settlements, modifications or exercises of options prior to the full premium being paid or received.

The Company has a macro hedge program to provide protection against the statutory tail scenario risk arising from variable annuity reserves on its statutory surplus and to cover some of the residual risks not covered by other hedging activities. As a means of economically hedging these risks, the Company uses a combination of options, interest rate swaptions and/or swaps. Certain of the macro hedge derivatives used contain settlement provisions linked to both equity returns and interest rates; the remaining are interest rate contracts or equity contracts. The gross notional amount of these derivative contracts was $3.3 billion and $1.2 billion at June 30, 2015 and December 31, 2014, respectively.

EIA and IUL products have returns tied to the performance of equity markets. As a result of fluctuations in equity markets, the obligation incurred by the Company related to EIA and IUL products will positively or negatively impact earnings over the life of these products. As a means of economically hedging its obligations under the provisions of these products, the Company enters into index options and futures contracts. The gross notional amount of these derivative contracts was $1.2 billion and $953 million at June 30, 2015 and December 31, 2014, respectively.

Embedded Derivatives

Certain annuities contain GMAB and non-life contingent GMWB provisions, which are considered embedded derivatives. In addition, the equity component of the EIA and IUL product obligations are also considered embedded derivatives. These embedded derivatives are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. As discussed above, the Company uses derivatives to mitigate the financial statement impact of these embedded derivatives.

Cash Flow Hedges

The Company has amounts classified in AOCI related to gains and losses associated with the effective portion of previously designated cash flow hedges. The Company reclassifies these amounts into income as the forecasted transactions impact earnings. During the six months ended June 30, 2015, the Company held no derivatives that were designated as cash flow hedges.

At June 30, 2015, the Company expects to reclassify $6 million of deferred loss on derivative instruments from AOCI to earnings during the next 12 months that will be recorded in net investment income. These were originally losses on derivative instruments related to interest rate swaptions. During the six months ended June 30, 2015 and 2014, no hedge relationships were discontinued due to forecasted transactions no longer being expected to occur according to the original hedge strategy. For the six months ended June 30, 2015 and 2014, amounts recognized in earnings on derivative transactions that were ineffective were not material.

The following table presents a rollforward of unrealized derivative losses related to cash flow hedges included in AOCI:

	2015			2014
	(in millions)
Net unrealized derivative losses at January 1	$	(12	)	$	(17	)
Reclassification of realized losses (1)	3			3
Income tax provision	(1		)	(1		)
Net unrealized derivative losses at June 30	$	(10	)	$	(15	)

⁽¹⁾  Loss reclassified from AOCI to net investment income on the Consolidated Statements of Income.

Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is four years and relates to interest credited on forecasted fixed premium product sales.

Credit Risk

Credit risk associated with the Company’s derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative contract. To mitigate such risk, the Company has established guidelines and oversight of credit risk through a comprehensive enterprise risk management program that includes members of senior management. Key components of this program are to require preapproval of counterparties and the use of master netting arrangements and collateral arrangements whenever practical. See Note 11 for additional information on the Company’s credit exposure related to derivative assets.

Certain of the Company’s derivative contracts contain provisions that adjust the level of collateral the Company is required to post based on the Company’s financial strength rating (or based on the debt rating of the Company’s parent, Ameriprise Financial). Additionally, certain of the Company’s derivative contracts contain provisions that allow the counterparty to

31

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

terminate the contract if the Company does not maintain a specific financial strength rating or Ameriprise Financial’s debt does not maintain a specific credit rating (generally an investment grade rating). If these termination provisions were to be triggered, the Company’s counterparty could require immediate settlement of any net liability position. At June 30, 2015 and December 31, 2014, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $418 million and $367 million, respectively. The aggregate fair value of assets posted as collateral for such instruments as of June 30, 2015 and December 31, 2014 was $418 million and $367 million, respectively. If the credit contingent provisions of derivative contracts in a net liability position at June 30, 2015 and December 31, 2014 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 for both periods.

13. Shareholder’s Equity

The following table provides information related to amounts reclassified from AOCI:

		Three Months Ended June 30,						Six Months Ended   June 30,
AOCI Reclassification	Location of (Gain) Loss Recognized in Income	2015			2014			2015			2014
		(in millions)
Net unrealized gains on Available-for-Sale securities	Net realized investment gains	$	(5	)	$	(1	)	$	(17	)	$	(5	)
Tax expense	Income tax provision	2			1			6			2
Net of tax		$	(3	)	$	—		$	(11	)	$	(3	)
Losses on cash flow hedges:
Swaptions	Net investment income	$	1		$	1		$	3		$	3
Tax benefit	Income tax provision	—			—			(1		)	(1		)
Net of tax		$	1		$	1		$	2		$	2

See Note 4 for additional information related to the impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverable on net unrealized securities gains/losses included in AOCI. See Note 12 for additional information regarding the Company’s cash flow hedges. 

14. Income Taxes

The Company’s effective tax rate was 17.9% and 16.8% for the three months ended June 30, 2015 and 2014, respectively. The Company’s effective tax rate was 18.2% and 13.8% for the six months ended June 30, 2015 and 2014, respectively. The effective tax rates are lower than the statutory rate as a result of tax preferred items including the dividends received deduction and low income housing tax credits. The increase in the effective tax rate for the six months ended June 30, 2015 compared to the prior year period was the result of an $18 million benefit in the first quarter of 2014 related to the completion of an Internal Revenue Service (“IRS”) audit.

Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $7 million which will expire beginning December 31, 2015.

The Company is required to establish a valuation allowance for any portion of the deferred tax assets that management believes will not be realized. Included in deferred tax assets is a significant deferred tax asset relating to capital losses that have been recognized for financial statement purposes but not yet for tax return purposes as well as future deductible capital losses realized for tax return purposes. Under current U.S. federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes. Significant judgment is required in determining if a valuation allowance should be established, and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business. Consideration is given to, among other things in making this determination, (i) future taxable income exclusive of reversing temporary differences and carryforwards, (ii) future reversals of existing taxable temporary differences, (iii) taxable income in prior carryback years, and (iv) tax planning strategies. Based on analysis of the Company’s tax position, management believes it is more likely than not that the results of future operations and implementation of tax planning strategies will not allow the Company to realize certain state deferred tax assets and state net operating losses. The valuation allowance for state deferred tax assets and state net operating losses was $8 million at both June 30, 2015 and December 31, 2014.

32

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

As of both June 30, 2015 and December 31, 2014, the Company had $160 million of gross unrecognized tax benefits. If recognized, approximately $7 million, net of federal tax benefits, of unrecognized tax benefits at both June 30, 2015 and December 31, 2014 would affect the effective tax rate.

It is reasonably possible that the total amounts of unrecognized tax benefits will change in the next 12 months. Based on the current audit position of the Company, it is estimated that the total amount of gross unrecognized tax benefits may decrease by $150 million to $160 million in the next 12 months due to resolution of IRS examinations.

The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized a net increase of $1 million and $2 million in interest and penalties for the three months ended June 30, 2015 and 2014, respectively.The Company recognized a net increase of $1 million in interest and penalties for both the six months ended June 30, 2015 and 2014. At June 30, 2015 and December 31, 2014, the Company had a payable of $41 million and $40 million, respectively, related to accrued interest and penalties.

The Company or one or more of its subsidiaries files income tax returns as part of its inclusion in the consolidated federal income tax returns of Ameriprise Financial in the U.S. federal jurisdiction and various state jurisdictions. The IRS has completed its field examination of the 1997 through 2011 tax returns. However, for federal income tax purposes, these years, except for 2007, continue to remain open as a consequence of certain unagreed-upon issues. The IRS is currently auditing the Company’s U.S. income tax returns for 2012 and 2013. The Company’s or certain of its subsidiaries’ state income tax returns are currently under examination by various jurisdictions for years ranging from 1997 through 2012 and remain open for all years after 2012.

15. Guarantees and Contingencies

Guarantees

The Company is required by law to be a member of the guaranty fund association in every state where it is licensed to do business. In the event of insolvency of one or more unaffiliated insurance companies, the Company could be adversely affected by the requirement to pay assessments to the guaranty fund associations.

The Company projects its cost of future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and Health Insurance Guaranty Associations (“NOLHGA”) and the amount of its premiums written relative to the industry-wide premium in each state. The Company accrues the estimated cost of future guaranty fund assessments when it is considered probable that an assessment will be imposed, the event obligating the Company to pay the assessment has occurred and the amount of the assessment can be reasonably estimated.

The Company has a liability for estimated guaranty fund assessments and a related premium tax asset. At both June 30, 2015 and December 31, 2014, the estimated liability was $14 million and the related premium tax asset was $12 million. The expected period over which guaranty fund assessments will be made and the related tax credits recovered is not known.

Contingencies

Insurance companies have been the subject of increasing regulatory, legislative and judicial scrutiny. Numerous state and federal regulatory agencies have commenced examinations and other inquiries of insurance companies regarding sales and marketing practices (including sales to older consumers and disclosure practices), claims handling, and unclaimed property and escheatment practices and procedures. With regard to an industry-wide investigation of unclaimed property and escheatment practices and procedures, the Company is responding to regulatory audits, market conduct examinations and other inquiries (including a multistate insurance department examination and a market conduct examination by the State of Minnesota). The Company has cooperated and will continue to cooperate with the applicable regulators.

The Company is involved in the normal course of business in a number of other legal and arbitration proceedings concerning matters arising in connection with the conduct of its business activities. The Company believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory investigation, examination or proceeding that is likely to have a material adverse effect on its consolidated financial condition, results of operations or liquidity.

Notwithstanding the foregoing, it is possible that the outcome of any current or future legal, arbitration or regulatory proceeding could have a material impact on results of operations in any particular reporting period as the proceedings are resolved.

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 insurance industry generally.

33

RIVERSOURCE LIFE INSURANCE COMPANY

ITEM 2. MANAGEMENT’S NARRATIVE ANALYSIS

The following narrative analysis of RiverSource Life Insurance Company’s consolidated financial condition and results of operations should be read in conjunction with the “Forward-Looking Statements” that follow and RiverSource Life Insurance Company’s Consolidated Financial Statements and Notes presented in Item 1. RiverSource Life Insurance Company and its subsidiaries are referred to collectively in this Form 10-Q as the “Company”. The Company’s narrative analysis should be read in conjunction with its Annual Report on Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission on February 24, 2015 (“2014 10-K”), as well as any current reports on Form 8-K and other publicly available information.

The Company follows U.S. generally accepted accounting principles (“GAAP”), and the following discussion is presented on a consolidated basis consistent with GAAP.

Management’s narrative analysis of the results of operations is presented in lieu of management’s discussion and analysis of financial condition and results of operations, pursuant to General Instructions H(2)(a) of Form 10-Q.

Overview

RiverSource Life Insurance Company is a stock life insurance company with one wholly owned stock life insurance company subsidiary, RiverSource Life Insurance Co. of New York (“RiverSource Life of NY”). RiverSource Life Insurance Company is a wholly owned subsidiary of Ameriprise Financial, Inc. (“Ameriprise Financial”). 

• RiverSource Life Insurance Company is domiciled in Minnesota and holds Certificates of Authority in American Samoa, the District of Columbia and all states except New York. RiverSource Life Insurance Company issues insurance and annuity products.

• RiverSource Life of NY is domiciled and holds a Certificate of Authority in New York. RiverSource Life of NY issues insurance and annuity products.

RiverSource Life Insurance Company also wholly owns RiverSource Tax Advantaged Investments, Inc. (“RTA”). RTA is a stock company domiciled in Delaware and is a limited partner in affordable housing partnership investments.

Critical Accounting Policies

The accounting and reporting policies that the Company uses affect its Consolidated Financial Statements. Certain of the Company’s accounting and reporting policies are critical to an understanding of the Company’s financial condition and results of operations. In some cases, the application of these policies can be significantly affected by the estimates, judgments and assumptions made by management during the preparation of the Consolidated Financial Statements. These accounting policies are discussed in detail in “Management’s Narrative Analysis — Critical Accounting Policies” in the Company’s 2014 10-K.

Recent Accounting Pronouncements

For information regarding recent accounting pronouncements and their expected impact on the Company’s future consolidated financial condition or results of operations, see Note 2 to the Consolidated Financial Statements.

34

RIVERSOURCE LIFE INSURANCE COMPANY

Consolidated Results of Operations for theSix Months EndedJune 30, 2015 and 2014

The following table presents the Company’s consolidated results of operations:

	Six Months Ended June 30,
	2015		2014		Change
	(in millions, except percentages)
Revenues
Premiums	$	205	$	214	$	(9	)	(4	)%
Net investment income	608		656		(48		)	(7	)
Policy and contract charges	935		912		23			3
Other revenues	217		194		23			12
Net realized investment gains	16		5		11			NM
Total revenues	1,981		1,981		—			—
Benefits and expenses
Benefits, claims, losses and settlement expenses	581		488		93			19
Interest credited to fixed accounts	332		361		(29		)	(8	)
Amortization of deferred acquisition costs	129		132		(3		)	(2	)
Other insurance and operating expenses	369		372		(3		)	(1	)
Total benefits and expenses	1,411		1,353		58			4
Pretax income	570		628		(58		)	(9	)
Income tax provision	104		87		17			20
Net income	$	466	$	541	$	(75	)	(14	)%

NM  Not Meaningful.

Overview

Net income decreased $75 million or 14% to $466 million for the six months ended June 30, 2015 compared to $541 million for the prior year period. Pretax income decreased $58 million or 9% to $570 million for the six months ended June 30, 2015 compared to $628 million for the prior year period primarily reflecting a net $14 million long term care (“LTC”) reserve increase, the market impact on variable annuity guaranteed benefits (net of hedges and the related deferred acquisition costs (“DAC”) and deferred sales inducement costs (“DSIC”) amortization), a $37 million benefit in the prior year period from policyholder movement of investments in Portfolio Navigator (traditional asset allocation) funds under certain in force variable annuities with living benefit guarantees to the Portfolio Stabilizer (managed volatility) funds compared to a $4 million benefit in the current period and the impact on DAC and DSIC from actual versus expected market performance partially offset by the impact of market appreciation. The market impact on variable annuity guaranteed benefits (net of hedges and the related DAC and DSIC amortization) was an expense of $64 million for the six months ended June 30, 2015, compared to an expense of $46 million for the prior year period, which included a $2 million expense associated with policyholder movement of investments in Portfolio Navigator funds under certain in-force variable annuities with living benefit guarantees to the Portfolio Stabilizer funds. The impact on DAC and DSIC from actual versus expected market performance based on our view of bond and equity performance was a benefit of $6 million for the six months ended June 30, 2015 compared to a benefit of $24 million for the prior year period as a result of less favorable equity market returns and bond fund returns compared to the prior year period.

The Company’s variable annuity account balances decreased 1% to $77.1 billion at June 30, 2015 compared to the prior year period due to net outflows of $1.6 billion, partially offset by market appreciation.

The Company’s fixed annuity account balances declined 11% to $11.2 billion at June 30, 2015 compared to the prior year period reflecting limited sales from low rates and higher lapse rates related to the re-pricing of the five-year guarantee block during 2014, a portion of which came out of its surrender charge period during the first half of 2015. The change in crediting rates decreased the level of spread compression in both periods.

During the first quarter of 2015, the Company conducted a review of its LTC reserve for unpaid amounts on reported claims based on additional information it received from Genworth Financial, Inc., which reinsures 50% of the Company’s LTC business and administers all of its claims. Based on this information, along with a review of the discount rate, management’s best estimate for LTC claims reserves resulted in a net $32 million increase during the first quarter of 2015. The most significant drivers of the reserve increase were updates to the benefit utilization rates and claims termination rates, partially offset by a $15 million benefit from a higher discount rate. During the second quarter of 2015, the Company completed its review which resulted in a favorable reserve release. Based on the analysis, the Company concluded that the actual claims utilization and termination experience was more favorable than the initial assumptions provided by the reinsurer, and as a

35

RIVERSOURCE LIFE INSURANCE COMPANY

result, released $18 million of the net $32 million reserve. The Company also increased the discount rate for its disability income (“DI”) reserve for unpaid amounts on reported claims, which resulted in a $7 million reserve decrease during the first quarter of 2015. The current discount rates are based on the average interest rates earned on assets supporting the liability and were 6.25% and 5.0% for LTC and DI, respectively, at June 30, 2015.

Revenues

Net investment income decreased $48 million or 7% to $608 million for the six months ended June 30, 2015 compared to $656 million for the prior year period reflecting a decrease in investment income on fixed maturities primarily due to lower invested assets and continued low interest rates.

Other revenues increased $23 million or 12% to $217 million for the six months ended June 30, 2015 compared to $194 million for the prior year period reflecting higher marketing support due to higher average separate account balances as a result of positive market performance and a $7 million gain on the sale of a building.

Net realized investment gains were $16 million for the six months ended June 30, 2015 compared to net realized investment gains of $5 million for the prior year period. For the six months ended June 30, 2015, net realized gains of $17 million on Available-for-Sale securities due to sales, calls and tenders were partially offset by a $1 million increase in the provision for loan losses on syndicated loans. For the six months ended June 30, 2014, net realized gains of $6 million on Available-for-Sale securities due to sales, calls and tenders were partially offset by other-than-temporary impairments recognized in earnings of $1 million which primarily related to the timing of the Company's decision to sell and subsequent disposition of a corporate debt security.

Benefits and Expenses

Total benefits and expenses increased $58 million or 4% for the six months ended June 30, 2015 compared to the prior year period primarily due to an increase in benefits, claims, losses and settlement expenses partially offset by a decrease in interest credited to fixed accounts.

Benefits, claims, losses and settlement expenses increased $93 million or 19% to $581 million for the six months ended June 30, 2015 compared to $488 million for the prior year period primarily reflecting the following items:

• A $9 million increase in expense related to higher reserve funding driven by the impact of higher fees from variable annuity guarantee sales in the prior year where the fees start on the first anniversary date.

• An increase in expenses compared to the prior year period due to a $44 million benefit in the first half of 2014 from policyholder movement of investments in Portfolio Navigator funds under certain in force variable annuities with living benefit guarantees to the Portfolio Stabilizer funds, compared to $5 million benefit in the first half of 2015.

• A net $14 million increase in LTC reserves in the first half of 2015.

• A $7 million favorable impact from a change in the discount rate for DI products in the first quarter of 2015.

• A $4 million increase in expense compared to the prior year period due to the impact on DSIC from actual versus expected market performance based on the Company's view of bond and equity performance. This impact was a benefit of $1 million for the first half of 2015 compared to a benefit of $5 million for the prior year period as a result of less favorable equity market returns and bond fund returns compared to the prior year period.

• A $29 million increase in expense compared to the prior year period from the unhedged nonperformance credit spread risk adjustment on variable annuity guaranteed benefits. As the embedded derivative liability on which the nonperformance credit spread is applied increases (decreases), the impact of the nonperformance credit spread is favorable (unfavorable) to expense. The unfavorable impact of the nonperformance credit spread was $20 million for the first half of 2015 compared to a favorable impact of $9 million for the prior year period.

• A $10 million decrease in expense from other market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks and the related DSIC amortization. This decrease was the result of a favorable $551 million change in the market impact on variable annuity guaranteed living benefits reserves, an unfavorable $540 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits and an unfavorable $1 million DSIC offset. The main market drivers contributing to these changes are summarized below:

• Interest rates were up in the first half of 2015 and down in the first half of 2014 resulting in a favorable change in the variable annuity guaranteed living benefits liability net of the corresponding change in hedge assets relative to the prior year period.

• Impacts of equity market and equity volatility on the variable annuity guaranteed living benefits liability net of the impacts on the corresponding hedge assets resulted in a lower expense in the first half of 2015 compared to the prior year period.

• Other unhedged items, including the difference between the assumed and actual underlying separate account

36

RIVERSOURCE LIFE INSURANCE COMPANY

investment performance, fixed income credit exposures, transaction costs and various behavioral items, were a net unfavorable impact compared to the prior year period.

Interest credited to fixed accounts decreased $29 million or 8% to $332 million for the six months ended June 30, 2015 compared to $361 million for the prior year period primarily due to lower average fixed annuity account balances and a lower average crediting rate on interest sensitive fixed annuities. Average fixed annuity account balances decreased $1.3 billion or 10% to $11.7 billion for the six months ended June 30, 2015 compared to the prior year period due to net outflows reflecting higher lapse rates and limited new sales due to low interest rates. The average fixed annuity crediting rate excluding capitalized interest decreased to 3.0% for the six months ended June 30, 2015 compared to 3.2% for the prior year period reflecting the re-pricing of the five-year guarantee block.

Income Taxes

The Company’s effective tax rate was 18.2% for the six months ended June 30, 2015, compared to 13.8% for the six months ended June 30, 2014. The effective tax rates are lower than the statutory rate as a result of tax preferred items including the dividends received deduction and low income housing tax credits. The increase in the effective tax rate for the six months ended June 30, 2015 compared to the prior year period was the result of an $18 million benefit in the first quarter of 2014 related to the completion of an Internal Revenue Service (“IRS”) audit.

Market Risk

The Company’s primary market risk exposures are interest rate, equity price and credit risk. Equity price and interest rate fluctuations can have a significant impact on the Company’s results of operations, primarily due to the effects on asset-based fees and expenses, the “spread” income generated on its fixed annuities, fixed insurance and fixed portion of its variable annuities and variable insurance contracts, the value of DAC and DSIC assets, the value of liabilities for guaranteed benefits associated with its variable annuities and the value of derivatives held to hedge these benefits.

The Company’s earnings from fixed annuities, fixed insurance, and the fixed portion of variable annuities and variable insurance contracts are based upon the spread between rates earned on assets held and the rates at which interest is credited to accounts. The Company primarily invests in fixed rate securities to fund the rate credited to clients. The Company guarantees an interest rate to the holders of these products. Investment assets and client liabilities generally differ as it relates to basis, repricing or maturity characteristics. Rates credited to clients’ accounts generally reset at shorter intervals than the yield on the underlying investments. Therefore, in an increasing interest rate environment, higher interest rates may be reflected in crediting rates to clients sooner than in rates earned on invested assets, which could result in a reduced spread between the two rates, reduced earned income and a negative impact on pretax income. However, the current low interest rate environment is resulting in interest rates below the level of some of the Company’s liability guaranteed minimum interest rates (“GMIRs”). Hence, a modest rise in interest rates would not necessarily result in changes to all the liability credited rates while projected asset purchases would capture the full increase in interest rates. This dynamic would result in widening spreads under a modestly rising rate scenario given the current relationship between the current level of interest rates and the underlying GMIRs on the business.

As a result of the low interest rate environment, the Company’s current reinvestment yields are generally lower than the current portfolio yield. The Company expects its portfolio income yields to continue to decline in future periods if interest rates remain low. The carrying value and weighted average yield of non-structured fixed maturity securities and commercial mortgage loans that may generate proceeds to reinvest through June 30, 2017 due to prepayment, maturity or call activity at the option of the issuer, excluding securities with a make-whole provision, was $2.4 billion and 4.6%, respectively, as of June 30, 2015. In addition, residential mortgage-backed securities, which are subject to prepayment risk as a result of the low interest rate environment, totaled $3.3 billion and had a weighted average yield of 3.8% as of June 30, 2015. While these amounts represent investments that could be subject to reinvestment risk, it is also possible that these investments will be used to fund liabilities or may not be prepaid and will remain invested at their current yields. In addition to the interest rate environment, the mix of benefit payments versus product sales as well as the timing and volumes associated with such mix may impact the Company’s investment yield. Furthermore, reinvestment activities and the associated investment yield may also be impacted by corporate strategies implemented at management’s discretion. The average yield for investment purchases during the six months ended June 30, 2015 was approximately 3.5%.

The reinvestment of proceeds from maturities, calls and prepayments at rates below the current portfolio yield, which may be below the level of some liability guaranteed minimum interest rates, will have a negative impact to future operating results. To mitigate the unfavorable impact that the low interest rate environment has on the Company’s spread income, it assesses reinvestment risk in its investment portfolio and monitors this risk in accordance with its asset/liability management framework. In addition, the Company may reduce the crediting rates on its fixed products when warranted, subject to guaranteed minimums. In 2014, the Company completed the process of setting lower renewal interest rates for a portion of its

37

RIVERSOURCE LIFE INSURANCE COMPANY

fixed annuities that were above the guaranteed minimum interest rates, which helped relieve some of the spread compression caused by low rates.

The following table presents the account values of fixed annuities, fixed insurance, and the fixed portion of variable annuities and variable insurance contracts by range of guaranteed minimum crediting rates and the range of the difference between rates credited to policyholders and contractholders as of June 30, 2015 and the respective guaranteed minimums, as well as the percentage of account values subject to rate reset in the time period indicated. Rates are reset at the Company’s discretion, subject to guaranteed minimums.

	Account Values with Crediting Rates
	At Guaranteed Minimum			1-49 bps above Guaranteed Minimum			50-99 bps above Guaranteed Minimum			100-150 bps above Guaranteed Minimum			Greater Than 150 bps above Guaranteed Minimum			Total
Range of Guaranteed Minimum Crediting Rates	(in billions, except percentages)
1% - 1.99%	$	2.4		$	0.5		$	0.4		$	0.1		$	0.1		$	3.5
2% - 2.99%	0.4			0.1			—			—			—			0.5
3% - 3.99%	9.1			—			—			—			—			9.1
4% - 5.00%	5.6			—			—			—			—			5.6
Total	$	17.5		$	0.6		$	0.4		$	0.1		$	0.1		$	18.7
Percentage of Account Values That Reset In:
Next 12 months (1)	100		%	78		%	34		%	51		%	97		%	97		%
> 12 months to 24 months (2)	—			11			31			9			3			1
> 24 months (2)	—			11			35			40			—			2
Total	100		%	100		%	100		%	100		%	100		%	100		%

⁽¹⁾   Includes contracts with annual discretionary crediting rate resets and contracts with twelve or less months until the crediting rate becomes discretionary on an annual basis.

⁽²⁾   Includes contracts with more than twelve months remaining until the crediting rate becomes an annual discretionary rate.

In addition to the fixed rate exposures noted above, the Company also has the following variable annuity guarantee benefits: guaranteed minimum withdrawal benefits (“GMWB”), guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum death benefits (“GMDB”) and guaranteed minimum income benefits (“GMIB”). Each of these guaranteed benefits guarantees payouts to the annuity holder under certain specific conditions regardless of the performance of the underlying invested assets.

The variable annuity guarantees continue to be managed by utilizing a hedging program which attempts to match the sensitivity of the assets with the sensitivity of the liabilities. This approach works with the premise that matched sensitivities will produce a highly effective hedging result. The Company’s comprehensive hedging program focuses mainly on first order sensitivities of assets and liabilities: Equity Market Level (Delta), Interest Rate Level (Rho) and Volatility (Vega). Additionally, various second order sensitivities are managed. The Company uses various index options across the term structure, interest rate swaps and swaptions, total return swaps and futures to manage the risk exposures. The exposures are measured and monitored daily and adjustments to the hedge portfolio are made as necessary.

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. The Company assesses this residual risk under a range of scenarios in creating and executing the macro hedge program. As a means of economically hedging these risks, the Company uses a combination of options and/or swaps. Certain of the macro hedge derivatives used contain settlement provisions linked to both equity returns and interest rates; the remaining are interest rate contracts or equity contracts. The macro hedge program could result in additional earnings volatility as changes in the value of the macro hedge derivatives, which are designed to reduce statutory capital volatility, may not be closely aligned to changes in the variable annuity guarantee embedded derivatives.

To evaluate interest rate and equity price risk, the Company performs sensitivity testing which measures the impact on pretax income from the sources listed below for a 12-month period following a hypothetical 100 basis point increase in interest rates or a hypothetical 10% decline in equity prices. The interest rate risk test assumes a sudden 100 basis point parallel shift in the yield curve, with rates then staying at those levels for the next 12 months. The equity price risk test assumes a sudden 10% drop in equity prices, with equity prices then staying at those levels for the next 12 months. In estimating the values of variable annuity riders, equity indexed annuities, indexed universal life insurance and the associated hedge assets, the Company assumed no change in implied market volatility despite the 10% drop in equity prices.

38

RIVERSOURCE LIFE INSURANCE COMPANY

The following tables present the Company’s estimate of the impact on pretax income from the above defined hypothetical market movements as of June 30, 2015:

	Equity Price Exposure to Pretax Income
Equity Price Decline 10%	Before Hedge Impact			Hedge Impact			Net Impact
	(in millions)
Asset-based fees and expenses	$	(87	)	$	—		$	(87	)
DAC and DSIC amortization (1) (2)	(101		)	—			(101		)
Variable annuity riders:
GMDB and GMIB (2)	(112		)	—			(112		)
GMWB	(288		)	300			12
GMAB	(37		)	38			1
DAC and DSIC amortization (3)	N/A			N/A			(2		)
Total variable annuity riders	(437		)	338			(101		)
Macro hedge program (4)	—			—			—
Equity indexed annuities	1			(1		)	—
Indexed universal life insurance	17			(21		)	(4		)
Total	$	(607	)	$	316		$	(293	)

	Interest Rate Exposure to Pretax Income
Interest Rate Increase 100 Basis Points	Before Hedge Impact			Hedge Impact			Net Impact
	(in millions)
Asset-based fees and expenses	$	(25	)	$	—		$	(25	)
Variable annuity riders:
GMDB and GMIB	—			—			—
GMWB	773			(870		)	(97		)
GMAB	28			(31		)	(3		)
DAC and DSIC amortization (3)	N/A			N/A			19
Total variable annuity riders	801			(901		)	(81		)
Macro hedge program (4)	—			73			73
Fixed annuities, fixed insurance and fixed portion of variable annuities and variable insurance products	31			—			31
Indexed universal life insurance	44			1			45
Total	$	851		$	(827	)	$	43

N/A Not Applicable.

⁽¹⁾  Market impact on DAC and DSIC amortization resulting from lower projected profits.

⁽²⁾  In estimating the impact on DAC and DSIC amortization resulting from lower projected profits, the Company has not changed its assumed equity asset growth rates. This is a significantly more conservative estimate than if the Company assumed management follows its mean reversion guideline and increased near-term rates to recover the drop in equity values over a five-year period. The Company makes this same conservative assumption in estimating the impact from GMDB and GMIB riders.

⁽³⁾  Market impact on DAC and DSIC amortization related to variable annuity riders is modeled net of hedge impact.

⁽⁴⁾   The market impact of the macro hedge program is modeled net of any related impact to DAC and DSIC amortization.

The above results compare to an estimated negative net impact to pretax income of $284 million related to a 10% equity price decline and an estimated net impact to pretax income of nil related to a 100 basis point increase in interest rates as of December 31, 2014. The change in interest rate exposure since December 31, 2014 is primarily the result of adding new interest rate derivatives to the macro hedge program during 2015 and subsequent changes in market rates.

Net impacts shown in the above table from GMWB and GMAB riders result largely from differences between the liability valuation basis and the hedging basis. Liabilities are valued using fair value accounting principles, with risk margins incorporated in contractholder behavior assumptions and with discount rates increased to reflect a current market estimate of the Company’s risk of nonperformance specific to these liabilities. The nonperformance spread risk is not hedged.

Actual results could differ materially from those illustrated above as they are based on a number of estimates and assumptions. These include assuming that implied market volatility does not change when equity prices fall by 10%, that management does not increase assumed equity asset growth rates to anticipate recovery of the drop in equity values when valuing DAC, DSIC

39

RIVERSOURCE LIFE INSURANCE COMPANY

and GMDB and GMIB liability values and that the 100 basis point increase in interest rates is a parallel shift of the yield curve. Furthermore, the Company has not tried to anticipate changes in client preferences for different types of assets or other changes in client behavior, nor has the Company tried to anticipate actions management might take to increase revenues or reduce expenses in these scenarios.

The selection of a 100 basis point interest rate increase as well as a 10% equity price decline should not be construed as a prediction of future market events. Impacts of larger or smaller changes in interest rates or equity prices may not be proportional to those shown for a 100 basis point increase in interest rates or a 10% decline in equity prices.

Fair Value Measurements

The Company reports certain assets and liabilities at fair value; specifically, separate account assets, derivatives, embedded derivatives, most investments and cash equivalents. Fair value assumes the exchange of assets or liabilities occurs in orderly transactions and is not the result of a forced liquidation or distressed sale. The Company includes actual market prices, or observable inputs, in its fair value measurements to the extent available. Broker quotes are obtained when quotes from pricing services are not available. The Company validates prices obtained from third parties through a variety of means such as: price variance analysis, subsequent sales testing, stale price review, price comparison across pricing vendors and due diligence reviews of vendors. See Note 10 to the Consolidated Financial Statements for additional information on the Company’s fair value measurements.

Fair Value of Liabilities and Nonperformance Risk

Companies are required to measure the fair value of liabilities at the price that would be received to transfer the liability to a market participant (an exit price). Since there is not a market for the Company’s obligations of its variable annuity riders and indexed universal life insurance, the Company considers the assumptions participants in a hypothetical market would make to reflect an exit price. As a result, the Company adjusts the valuation of variable annuity riders and indexed universal life insurance by updating certain contractholder assumptions, adding explicit margins to provide for profit, risk and expenses, and adjusting the rates used to discount expected cash flows to reflect a current market estimate of the Company’s nonperformance risk. The nonperformance risk adjustment is based on broker quotes for credit default swaps that are adjusted to estimate the risk of the Company not fulfilling these liabilities. Consistent with general market conditions, this estimate resulted in a spread over the LIBOR swap curve as of June 30, 2015. As the Company’s estimate of this spread widens or tightens, the liability will decrease or increase. If this nonperformance credit spread moves to a zero spread over the LIBOR swap curve, the reduction to net income would be approximately $154 million, net of DAC, DSIC, unearned revenue amortization, the reinsurance accrual and income taxes (calculated at the statutory tax rate of 35%), based on June 30, 2015 credit spreads.

Liquidity and Capital Resources

Liquidity Strategy

The liquidity requirements of the Company are generally met by funds provided by investment income, maturities and periodic repayments of investments, premiums and proceeds from sales of investments, fixed annuity and fixed insurance deposits as well as capital contributions from Ameriprise Financial. Other liquidity sources the Company has established are short-term borrowings and available lines of credit with Ameriprise Financial aggregating $1 billion.

The Company enters into short-term borrowings, which may include repurchase agreements and Federal Home Loan Bank (“FHLB”) advances to reduce reinvestment risk from higher levels of expected annuity net cash flows. Short-term borrowings allow the Company to receive cash to reinvest in longer-duration assets, while paying back the short-term debt with cash flows generated by the fixed income portfolio. The balance of repurchase agreements at both June 30, 2015 and December 31, 2014 was $50 million which is collateralized with agency residential mortgage backed securities and commercial mortgage backed securities from the Company’s investment portfolio. RiverSource Life Insurance Company is a member of the FHLB of Des Moines, which provides RiverSource Life Insurance Company access to collateralized borrowings. At both June 30, 2015 and December 31, 2014, the Company had borrowings of $150 million from the FHLB which is collateralized with commercial mortgage backed securities.

The primary uses of funds are policy benefits, commissions, other product-related acquisition and sales inducement costs, operating expenses, policy loans, dividends to Ameriprise Financial and investment purchases. The Company routinely reviews its sources and uses of funds in order to meet its ongoing obligations.

40

RIVERSOURCE LIFE INSURANCE COMPANY

Capital Activity

Dividends paid by RiverSource Life Insurance Company were as follows:

	Six Months Ended   June 30,
	2015		2014
	(in millions)
Cash dividends paid to Ameriprise Financial	$	525	$	300
Cash dividends received from RiverSource Life of NY	25		24

Regulatory Capital

RiverSource Life Insurance Company and RiverSource Life of NY are subject to regulatory capital requirements. Actual capital, determined on a statutory basis, and regulatory capital requirements for each of the life insurance entities are as follows:

	Actual Capital (1)				Regulatory Capital Requirement (2)
	June 30, 2015		December 31, 2014		December 31, 2014
			(in millions)
RiverSource Life Insurance Company	$	3,319	$	3,614	$	595
RiverSource Life Insurance Co. of New York	294		312		59

⁽¹⁾  Actual capital, as defined by the National Association of Insurance Commissioners for purposes of meeting regulatory capital requirements, includes statutory capital and surplus, plus certain statutory valuation reserves.

⁽²⁾  Regulatory capital requirement is based on the statutory risk-based capital filing.

Contractual Commitments

There have been no material changes to the Company’s contractual obligations disclosed in the Company’s 2014 10-K.

Forward-Looking Statements

This report contains forward-looking statements that reflect the Company’s plans, estimates and beliefs. The Company’s actual results could differ materially from those described in these forward-looking statements. Examples of such forward-looking statements include: 

• statements of the Company’s plans, intentions, expectations, objectives, or goals, including those related to the introduction, cessation, terms or pricing of new or existing products and services and the consolidated tax rate;

• other statements about future economic performance, the performance of equity markets and interest rate variations and the economic performance of the United States and of global markets; and

• statements of assumptions underlying such statements.

The words “believe,” “expect,” “anticipate,” “optimistic,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “forecast,” “on pace,” “project” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from such statements.

Such factors include, but are not limited to: 

• conditions in the interest rate, credit default, equity market and foreign exchange environments, including changes in valuations, liquidity and volatility;

• changes in and the adoption of relevant accounting standards and securities rating agency standards and processes, as well as changes in the litigation and regulatory environment, including ongoing legal proceedings and regulatory actions, the frequency and extent of legal claims threatened or initiated by clients, other persons and regulators, and developments in regulation and legislation, including the rules and regulations implemented or to be implemented in connection with the Dodd-Frank Wall Street Reform and Consumer Protection Act or in light of the U.S. Department of Labor pending rule and exemptions pertaining to the fiduciary status of investment advice providers to 401(k) plan, plan sponsors, plan participants and the holders of individual retirement or health savings accounts;

• the Company’s investment management performance and consumer acceptance of the Company’s products;

• effects of competition in the financial services industry, including pricing pressure, the introduction of new products and services and changes in product distribution mix and distribution channels;

• changes to the Company’s reputation that may arise from employee or Ameriprise Financial Services, Inc. advisor misconduct, legal or regulatory actions, improper management of conflicts of interest or otherwise;

41

RIVERSOURCE LIFE INSURANCE COMPANY

• the Company’s capital structure as a subsidiary of Ameriprise Financial, including the ability of its parent to support its financial strength and ratings, as well as the opinions of rating agencies and other analysts or the Company’s regulators, distributors or policyholders and contractholders in response to any change or prospect of change in any such opinion;

• risks of default, capacity constraint or repricing by issuers or guarantors of investments the Company owns or by counterparties to hedge derivative, insurance or reinsurance arrangements, experience deviations from the Company’s assumptions regarding such risks, the evaluations or the prospect of changes in evaluations of any such third parties published by rating agencies or other analysts and the reactions of other market participants or the Company’s regulators, distribution partners or customers in response to any such evaluation or prospect of changes in evaluation;

• experience deviations from the Company’s assumptions regarding morbidity, mortality and persistency in certain annuity and insurance products, or from assumptions regarding market returns assumed in valuing or unlocking DAC and DSIC or market volatility underlying the Company’s valuation and hedging of guaranteed benefit annuity riders, or from assumptions regarding interest rates assumed in the Company's loss recognition testing of its long term care business;

• successfully cross-selling insurance and annuity products and services to Ameriprise Financial’s customer base;

• the Company’s ability to effectively hedge risks relating to guaranteed benefit riders and certain other products;

• the impact of intercompany allocations to the Company from Ameriprise Financial and its affiliates;

• Ameriprise Financial’s ability to attract, recruit and retain qualified advisors and employees and its ability to distribute the Company’s products through current and future distribution channels;

• changes in capital requirements that may be indicated, required or advised by regulators or rating agencies;

• the impacts of Ameriprise Financial’s efforts to improve distribution economics and realize benefits from reengineering and tax planning;

• interruptions or other failures in the Company’s communications, technology and other operating systems, including errors or failures caused by third party service providers, interference or failures caused by third party attacks on the Company’s systems, or the failure to safeguard the privacy or confidentiality of sensitive information and data on such systems; and

• general economic and political factors, including consumer confidence in the economy, the ability and inclination of consumers generally to invest, as well as their ability and inclination to invest in financial instruments and products other than cash and cash equivalents, the costs of products and services the Company consumes in the conduct of its business, and applicable legislation and regulation and changes therein, including tax laws, tax treaties, fiscal and central government treasury policy, and policies regarding the financial services industry and regulatory rulings and pronouncements.

The Company cautions the reader that the foregoing list of factors is not exhaustive. There may also be other risks that the Company is unable to predict at this time that may cause actual results to differ materially from those in forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update publicly or revise any forward-looking statements. The foregoing list of factors should be read in conjunction with the “Risk Factors” discussion included in Part I, Item 1A of the Company’s 2014 10-K and Part II, Item 1A of the Company's Form 10-Q for the quarter ended March 31, 2015.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) designed to provide reasonable assurance that the information required to be reported in the Exchange Act filings is recorded, processed, summarized and reported within the time periods specified in and pursuant to Securities and Exchange Commission regulations, including controls and procedures designed to ensure that this information is accumulated and communicated to the Company’s management, including its principal executive officer and chief financial officer, as appropriate, to allow timely decisions regarding the required disclosure. It should be noted that, because of inherent limitations, the Company’s disclosure controls and procedures, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the disclosure controls and procedures are met.

The Company’s management, under the supervision and with the participation of the Company’s principal executive officer and chief financial officer, evaluated the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report. Based upon that evaluation, the Company’s principal executive officer and chief financial officer have concluded that the Company’s disclosure controls and procedures were effective at a reasonable level of assurance as of June 30, 2015.

42

RIVERSOURCE LIFE INSURANCE COMPANY

Changes in Internal Control over Financial Reporting

There have not been any changes in RiverSource Life Insurance Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, RiverSource Life Insurance Company’s internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The information set forth in Note 15 to the Consolidated Financial Statements in Part I, Item 1 is incorporated herein by reference. 

ITEM 1A. RISK FACTORS

Other than as described in RiverSource Life Insurance Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, there have been no material changes in the risk factors provided in Part I, Item 1A of its 2014 10-K:

ITEM 6. EXHIBITS

The list of exhibits required to be filed as exhibits to this report are listed on page E-1 hereof, under “Exhibit Index,” which is incorporated herein by reference.

43

RIVERSOURCE LIFE INSURANCE COMPANY

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		RIVERSOURCE LIFE INSURANCE COMPANY
		(Registrant)
Date:	August 3, 2015	By	/s/ John R. Woerner
			John R. Woerner
			Chairman and President
Date:	August 3, 2015	By	/s/ Brian J. McGrane
			Brian J. McGrane
			Executive Vice President and
			Chief Financial Officer

44

RIVERSOURCE LIFE INSURANCE COMPANY

EXHIBIT INDEX

The following exhibits are filed as part of this Quarterly Report:

Exhibit Description

3.1 Copy of Certificate of Incorporation of IDS Life Insurance Company, filed as Exhibit 3.1 to Post-Effective Amendment No. 5 to Registration Statement No. 33-28976, is incorporated by reference.

3.1.1 Copy of Certificate of Amendment of Certificate of Incorporation of IDS Life Insurance Company dated June 22, 2006, filed as Exhibit 3.1 to Form 8-K filed on January 5, 2007, is incorporated by reference.

3.2 Copy of Amended and Restated By-Laws of RiverSource Life Insurance Company dated June 22, 2006, filed as Exhibit 27(f)(2) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777, is incorporated by reference.

10.1* Copy of Intercompany Service Agreement by and between Ameriprise Financial, Inc. and RiverSource Life Insurance Company effective January 1, 2007.

10.2* Copy of Wholesaling Service Agreement by and between RiverSource Distributors, Inc. and RiverSource Life Insurance Company effective January 1, 2007.

10.3* Copy of Fund Accounting Service Agreement by and between Columbia Management Investment Advisers, LLC and RiverSource Life Insurance Company effective February 1, 2011.

31.1* Certification of John R. Woerner, Chairman and President, pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.

31.2* Certification of Brian J. McGrane, Chief Financial Officer, pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.

32* Certification of John R. Woerner, Chairman and President, and Brian J. McGrane, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101* The following materials from RiverSource Life Insurance Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2015, formatted in XBRL: (i) Consolidated Balance Sheets at June 30, 2015 and December 31, 2014; (ii) Consolidated Statements of Income for the three months and six months ended June 30, 2015 and 2014; (iii) Consolidated Statements of Comprehensive Income for the three months and six months ended June 30, 2015 and 2014; (iv) Consolidated Statements of Shareholder’s Equity for the six months ended June 30, 2015 and 2014; (v) Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2014; and (vi) Notes to the Consolidated Financial Statements.

______________________________________

* Filed electronically herewith.

E-1

EX-10.1

Exhibit 10.1

INTERCOMPANY SERVICE AGREEMENT

BETWEEN

AMERIPRISE FINANCIAL, INC.

AND

RIVERSOURCE LIFE INSURANCE COMPANY

This Service Agreement (this "Agreement") is made effective as of January 1, 2007 (the "Effective Date'') by and between Ameriprise Financial Inc., a Delaware corporation (herein the "Service Provider" and known internally as "Company 1” for accounting purposes), and RiverSource Life Insurance Company, a Minnesota corporation (herein the “Company” and known internally as “Company 10” for accounting purposes).

WHEREAS, Service Provider and Company are affiliated companies that are members of an insurance holding company system; and

WHEREAS, Service Provider has extensive experience in providing the kinds of services to be provided under this Agreement and an established infrastructure for providing such services in an efficient and cost effective manner; and

WHEREAS, the Company desires to obtain, for the benefit of its insurance business, certain services from the Service Provider and share in the cost of certain expenses incurred by the Service Provider on behalf of the Company, and the Service Provider desires to provide such services and incur such expenses, all upon the terms and conditions hereinafter set forth; and

WHEREAS, the parties desire to set forth in writing the services and expenses which are the subject of this Agreement and the basis for allocating expenses between them;

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows:

1. Services: At the request of the Company and subject to the Company's sole and exclusive right to control and manage its insurance business, the Service Provider will provide those services and incur those expenses as set forth on Attachment A annexed hereto and made a part hereof as well as any other services or expenses reasonably requested by the Company in connection with the Company's business.

2. Term: This Agreement shall be for a term beginning on the Effective Date and shall remain in effect thereafter unless the parties mutually agree otherwise; provided, however, that either party may terminate this Agreement in accordance with the provisions of Section 19 below.

1

3. Allocation of Costs: The Company agrees to reimburse Service Provider at cost for services and facilities provided by Service Provider pursuant to this Agreement. The charge to the Company for such services and facilities shall include all direct and indirectly allocable expenses. The methods for allocating expenses to the Company shall be in accordance with the requirements of the Minnesota insurance holding company system laws. Such methods shall be modified and adjusted by mutual agreement where necessary or appropriate to reflect fairly and equitably the actual incidence of expense incurred by the Service Provider on behalf of the Company. The method of allocating costs hereunder and the payment thereof shall be determined in the following manner:

a. The cost of services performed by the Service Provider that are identifiable as expenses incurred directly and exclusively for the benefit of the Company shall be charged to the Company. This shall include the cost of supplies, materials, and various other items of expense incurred by the Service Provider directly on behalf of the Company as identified more specifically in Attachment A annexed hereto and made a part hereof.

b. The cost of services performed by the Service Provider that are not identifiable as expenses incurred directly and exclusively for the benefit of the Company shall be allocated and charged to the Company in conformity with customary insurance accounting practices.

c. At the request of the Company, and at Service Provider's expense, the Service Provider shall produce records and provide access to enable the Company to verify that such cost allocations are performed in accordance with the practices referenced above.

d. Each month, the Company shall reimburse the Service Provider for costs of services provided or expenses incurred by the Service Provider under this Agreement during the preceding month, in accordance with the payment provisions of Section 4 below.

For purposes of allocating costs under this Agreement, the Company and Service Provider shall rely on their internal accounting and allocation system then in effect, that system currently being the Management Accounting and Reporting System (“MARS”), which utilizes a product factor methodology for certain services and rate-volume formulas for other services, in order to ensure fair and reasonable allocations of income and expenses among affiliated entities.

4. Payments: For services rendered under this Agreement, payment shall be made by the Company to the Service Provider on a monthly basis within thirty (30) days of invoice or other notice. The parties agree that during the course of any given month the Company may make reasonable estimated payments for part or all of the monthly cost in which case such payment shall be offset against the actual amount otherwise due at the end of the month under this Agreement. The parties also agree that, at the option of the Company, the Company may reimburse Service Provider based upon Service Provider's good faith estimate of the monthly costs for some or all of the services provided

2

hereunder, in which case there shall be a final adjustment made within thirty (30 days) after completion of Service Provider's cost analysis performed at least annually.

5. Services Provided by Company:Company agrees to make its employees and facilities available to the Service Provider, upon request of the Service Provider, to perform services as may be mutually agreed upon by the parties from time to time. The cost of such services shall be allocated to the Service Provider in the same manner costs are allocated to the Company pursuant to Section 3 herein. With respect to such services, all terms and conditions of this Agreement shall be applicable as though fully stated herein, except the Company shall be deemed the "Service Provider" and the Service Provider shall be deemed the '"Company” for purposes of determining rights and obligations of the parties under this Agreement.

6. No Profit or Loss:It is the intention of the parties that no party shall realize a profit nor incur a loss as a result of the services provided and expenses incurred hereunder and the allocation of all costs for such services and expenses shall be made consistent with such intention.

7. Maintenance of Books: Company and Service Provider each shall maintain its own books, accounts and records in such a way as to disclose clearly and accurately the nature and detail of the transactions between them, including such accounting information as is necessary to support the reasonableness of charges under this Agreement, and such additional information as the Company may reasonably request for purposes of its internal bookkeeping and accounting operations. The Service Provider shall keep such books, records and accounts insofar as they pertain to the computation of charges hereunder available for audit, inspection and copying by the Company and persons authorized by it or any governmental agency having jurisdiction over the Company during all reasonable business hours.

8. Ownership and Custody of Records: All records, books and files established and maintained by the Service Provider by reason of its performance of services under this Agreement, which, absent this Agreement, would have been held by the Company, shall be deemed the property of the Company and shall be maintained in accordance with applicable laws and regulations. Such records should be available, during normal business hours, for inspection by the Company, anyone authorized by the Company, and any governmental agency that has regulatory authority over the Company's business activities. Copies of such records, books and tiles shall be delivered to the Company on demand. All such records, books and files shall he promptly transferred to the Company by the Service Provider upon termination of this Agreement.

9. Audit: The Company and persons authorized by it and any governmental agency having jurisdiction over the Company shall have the right, at Company's expense, to conduct an audit of the relevant books, records and accounts in the possession of the Service Provider upon giving reasonable notice of its intent to conduct such an audit. In the event of such audit, the Service Provider shall give to the party requesting the audit reasonable cooperation and access to all books, records and accounts necessary to audit during normal business hours.

3

10. Right to Contract with Third Parties: Nothing herein shall be deemed to grant the Service Provider an exclusive right to provide services to the Company, and the Company retains the right to contract with any third party, affiliated or unaffiliated, for the performance of services or for the use of facilities as are available to or have been requested by the Company pursuant to this Agreement.

The Service Provider, unless the Company objects, shall have the right to subcontract with any third party, affiliated or unaffiliated, for the performance of services requested by the Company under this Agreement provided that the Service Provider shall remain responsible for the performance of services by any such subcontractors in accordance with the terms of this Agreement; and provided further that the charges for any such services subcontracted to an affiliate shall be determined on the basis described in Section 3 above.

11. Safeguarding Customer Information: The Service Provider shall implement and maintain appropriate measures designed to meet the objectives of Minnesota Statutes Sections 60A.98 and 60A.981 with respect to safeguarding the Company's customer information and customer information systems. The Service Provider shall adjust information security programs upon reasonable request of the Company for any relevant changes dictated by the Company's assessment of risk concerning its customer information and customer information systems. Confirming evidence that the Service Provider has satisfied its obligations under this Agreement shall be made available, during normal business hours, for inspection by the Company, any person authorized by the Company, and any governmental agency that has regulatory authority over the Company's business activities.

12. Exercise of Judgment in Rendering Services: In providing services hereunder which require the exercise of judgment by the Service Provider, the Service Provider shall perform any such service in accordance with standards and guidelines which the Company develops and communicates to the Service Provider. In performing any services hereunder, the Service Provider shall at all times act in a manner reasonably calculated to be in or not opposed to the interests of the Company.

13. Capacity of Personnel and Status of Facilities: Whenever the Service Provider utilizes its employees or independent contractors to perform services for the Company pursuant to this Agreement, such personnel shall at all times remain employees or independent contractors of the Service Provider, subject solely to the direction or responsibility of the Service Provider. The Company shall have no liability to such personnel for their welfare, salaries, fringe benefits, legally required employer contributions and tax obligations. No facility of the Service Provider used in performing services for, or subject to use by, the Company shall be deemed to be transferred, assigned, conveyed or leased by performance or use pursuant to this Agreement. The independent contractor status of any independent contractor engaged by the Service Provider shall not be affected by this Agreement.

14. Assignment:This Agreement and any rights pursuant hereto shall not be assignable by either party hereto, except as set forth herein or by operation of law, subject to whatever

4

regulatory filings or approvals may be applicable. Except as and to the extent specifically provided in this Agreement, nothing in this Agreement, expressed or implied, is intended to confer on any person other than the parties hereto, or their respective legal successors, any rights, remedies, obligations or liabilities that would otherwise be applicable. The representations, warranties, covenants and agreements contained in this Agreement shall be binding upon, extend to and inure to the benefit of the parties hereto, their, and each of their, successors, and assigns respectively.

15. Arbitration: Any unresolved dispute or difference between the parties arising out of or relating to this Agreement, or the breach thereof, shall be settled by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association. The award rendered by the Arbitrator shall be final and binding upon the parties, and judgment upon the award rendered by the Arbitrator may be entered in any court having jurisdiction thereof. The arbitration shall take place in Minneapolis, Minnesota.

16. Indemnification: The Company and the Service Provider agree to hold each other harmless and to indemnify each other against any and all liability, loss, damage, expense, cost. cause of action, demand, penalty, fine or claim (including cost of litigation or administrative proceedings and counsel fees) arising out of or related to any of the services provided hereunder to the extent the same are caused by the act or failure to act of the indemnifying party.

17. Confidential Information: The parties agree certain information released in performance of this Agreement, whether intentionally or unintentionally, may constitute confidential information ("Confidential Information"). Confidential Information, for purposes of this agreement, means information released by one party ("Releasing Party") to the other ("Receiving Party"), in whatever format, that is nonpublic, trade secret and/or proprietary. It is agreed the Receiving Party shall maintain Confidential Information in strict confidence, refrain from misappropriating such information for purposes other than performing responsibilities under this Agreement or as otherwise agreed to by the parties, use commercially reasonable efforts to prevent disclosing such information to unauthorized or unaffiliated third parties, and not copy such information without prior consent or acquiescence of the Releasing Party. These restrictions do not apply to information that (i) enters into the public domain through no fault or action of the Receiving Party, (ii) is obtained from a third party who is under no legal or contractual obligation to maintain confidentially of such information, (iii) is independently developed by the Receiving Party without reference to or use of any Confidential Information, or (iv) is required to be disclosed pursuant to requirements of law or legal process including but not limited to disclosures made to and required by any governmental agency having regulatory authority over the Company. Upon termination, if demanded by the Releasing party, the Receiving Party shall within sixty (60) days return to the Releasing Party copies, in whatever form or medium, of any material containing Confidential Information.

18. Notices: All notices, statements or requests provided for hereunder shall be deemed to have been duly given when delivered by hand to an officer of the other party, or when

5

deposited with the U.S. Postal Service, as first class certified or registered mail, postage prepaid, overnight courier service, or facsimile copy, addressed:

a.	If to the Service Provider to:	Chief Financial Officer
		Ameriprise Financial, Inc.
		55 Ameriprise Financial Center
		Minneapolis, MN 55474
	with a copy to:	General Counsel
		Ameriprise Financial, Inc.
		55 Ameriprise Financial Center
		Minneapolis, MN 55474
b.	If to the Company to;	Chief Financial Officer
		RiverSource Life Insurance Company
		227 Ameriprise Financial Center
		Minneapolis, MN 55474
	with a copy to:	General Counsel
		RiverSource Life Insurance Company
		227 Ameriprise Financial Center
		Minneapolis, MN 55474

or to such other persons or places as each party may designate from time to time. The aforementioned individuals shall also serve as contact persons for the purpose of carrying out this Agreement. As such, the contact persons shall be authorized to act on behalf of their respective parties as to the matters pertaining to this Agreement. Each party shall notify the other in writing as to the name, address and telephone number of the designated contact person in the event there is a replacement or change in such contact information.

19. Termination: This Agreement shall remain in effect until (i) the parties mutually agree to terminate the agreement or (ii) either the Company or the Service Provider gives the other party sixty (60) days or more advance written notice of the party's intent to terminate this Agreement or that portion of this Agreement pertaining to any one or more of the services or items set forth in Attachment A annexed hereto. Upon termination, the Service Provider shall promptly deliver to the Company all books and records that are, or are deemed by this Agreement, the property of the Company.

20. Settlement on Termination:No later than sixty (60) days after the effective date of termination of this Agreement, the Service Provider shall deliver to Company a detailed written statement for all charges incurred and not included in any previous statement to the effective date of termination. The amount owed or to be refunded hereunder shall be due and payable within thirty (30) days of receipt of such statement.

21. Performance Standards: Service Provider agrees that in performing or providing functions or services hereunder, it shall use that degree of ordinary care and reasonable diligence that an experienced and qualified provider of similar services would use acting

6

in like circumstances in such matters and in accordance with the standards, practices and procedures established by the Service Provider for its own business. Service Provider shall perform services according to servicing standards of the Company or such other standards as may be mutually agreed upon by the parties. Service Provider shall comply with all laws, regulations, rules and orders applicable to (i) the Company with respect to the services provided hereunder and (ii) the Service Provider with respect to its own business. Service Provider agrees to maintain sufficient facilities and trained personnel of the kind necessary to perform the services under this Agreement.

22. Control:The performance of services by the Service Provider for the Company pursuant to this Agreement shall in no way impair the absolute control of the business and operations of the Service Provider or the Company by their respective Boards of Directors. The Service Provider shall act hereunder so as to assure the separate operating entity of the Company. The business and operations of the Company shall at all times be subject to the direction and control of the Board of Directors of the Company.

23. Governing Law:This Agreement is made pursuant to and shall be governed by, interpreted under, and the rights of the parties determined in accordance with, the laws of the State of Minnesota.

24. Entire Agreement: This Agreement, together with such amendments as may from time to time be executed in writing by the parties, constitutes the entire agreement and understanding between the parties in respect of the transactions contemplated hereby and supersedes all prior agreements, arrangements and understandings relating to the subject matter hereof. Agreements to be superseded and terminated by this Agreement include a certain ''Intercompany Agreement'' between the parties dated July 28, 1983. In recognition of the merger of the Company with American Enterprise Life Insurance Company and American Partners Life Insurance Company (herein the "Merged Companies") effective January 1, 2007, this Agreement also supersedes and terminates agreements pursuant to which Service Provider or Company furnished similar services to the Merged Companies prior to the merger, including a certain "Service and Cost Allocation Agreement Between American Enterprise Life Insurance Company and IDS Life Insurance Company" dated January 1, 1990 and a certain “Service and Cost Allocation Agreement Between National Pension Life Insurance Company (to be renamed American Partners Life Insurance Company) and IDS Life Insurance Company” dated February 18, 1994.

25. Severability. It is further agreed and understood by the parties hereto that if any part, term or provision of this Agreement should be held unenforceable in the jurisdiction in which either party seeks enforcement of this Agreement, it shall be construed as if not containing the invalid provision or provisions, and the remaining portions or provisions shall govern the rights and obligations of the parties.

26. Section Headings:Section headings contained herein are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

7

27. Counterparts: This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and enforceable against the parties actually executing such counterpart, and all of which, when taken together, shall constitute one instrument.

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the dates indicated below.

AMERIPRISE FINANCIAL, INC.
	By:	/s/ David K. Stewart
	Its:	Senior Vice President & Controller
	Date:
RIVERSOURCE LIFE INSURANCE COMPANY
	By:	/s/ Timothy V. Bechtold
	Its:	President
	Date:

8

Attachment A

1. Services: To the extent requested by the Company, the Service Provider shall make its employees and facilities available for performance of the following kinds of services:

• Accounting, controllership, finance, financial reporting, and treasury

• Client and policy owner services including management of client data and communications

• Corporate Communications

• Commercial loan servicing and administration

• Corporate actuarial

• Corporate and brand marketing

• Corporate tax analysis and preparation

• Customer relations including complaint handling

• Executive management, mergers and acquisitions, and other corporate services

• Human resources including payroll processing

• Information systems and management

• Internal audit

• Legal counsel, risk management, and anti-money laundering program services

• Strategic planning and business planning

• Other support services such as procurement, printing, real estate, document services, mailroom, security, and cafeteria

2. Expenses: To the extent requested by the Company, the Service Provider shall pay for the following items of expense on behalf of the Company, which shall then be charged back to the Company:

• Occupancy costs including floor space, utilities, leasehold improvements and other facilities as required by Company for its operations and employees

• Communications including costs of telecommunication equipment and services

• Office equipment including costs of furniture, computer equipment, copying machines, and other facilities

9

• Employee benefit costs directly allocable to the Company for its employees to participate in retirement. health care, life and disability insurance, restricted stock awards and stock option plans, and other employee benefit programs made available to employees of affiliates of the Service Provider

• Other expenses directly allocable to the Company such as vendors and consultants, printed material and paper supplies, outside legal expenses, taxes and fees, technology costs and information systems enhancements

10

EX-10.2

EXHIBIT 10.2

WHOLESALING SERVICE AGREEMENT

BETWEEN

RIVERSOURCE DISTRIBUTORS, INC.

AND

RIVERSOURCE LIFE INSURANCE COMPANY

This Wholesaling Service Agreement (this "Agreement") is made effective as of January

1, 2007 (the "Effective Date") by and between RiverSource Distributors, Inc., a Delaware corporation (herein the "Service Provider" and known internally as "Company 13" for accounting purposes), and RiverSource Life Insurance Company, a Minnesota corporation (herein the "Company" and known internally as "Company 10" for accounting purposes).

WHEREAS, Service Provider and Company are affiliated companies that are members of an insurance holding company system; and

WHEREAS, Service Provider has the staff and expertise to provide quality wholesaling services in connection with the distribution of Company's general account life insurance policies, disability income insurance policies and annuity contracts which are not required to be registered as securities under the Securities Act of 1933 ("1933 Act") because they are exempt under Section 3 (a)(8) of the 1933 Act (the" Products"); and

WHEREAS, the Company desires to obtain, for the benefit of its insurance business, certain wholesaling services from the Service Provider, and the Service Provider desires to provide such services upon the terms and conditions hereinafter set forth; and

WHEREAS, the parties desire to set forth in writing the services and expenses which are the subject of this Agreement and the basis for allocating expenses between them;

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows:

1. Services: At the request of the Company and subject to the Company's sole and exclusive right to control and manage its insurance business, the Service Provider will provide those services and incur those expenses as set forth on Attachment A annexed hereto and made a part hereof as well as any other services or expenses reasonably requested by the Company in connection with the Company's business.

2. Term: This Agreement shall be for a term beginning on the Effective Date and shall remain in effect thereafter unless the parties mutually agree otherwise; provided, however, that either party may terminate this Agreement in accordance with the provisions of Section 19 below.

3. Allocation of Costs: The Company agrees to reimburse Service Provider at cost for services and facilities provided by Service Provider pursuant to this Agreement. The charge to the Company for such services and facilities shall include all direct and indirectly allocable expenses. The methods for allocating expenses to the Company shall be in accordance with the requirements of the Minnesota insurance holding company system laws. Such methods shall be modified and adjusted by mutual agreement where necessary or appropriate to reflect

1

RSLIC-RDI Wholesaling Service Agreement

fairly and equitably the actual incidence of expense incurred by the Service Provider on behalf of the Company. The method of allocating costs hereunder and the payment thereof shall be determined in the following manner:

a. The cost of services performed by the Service Provider that are identifiable as expenses incurred directly and exclusively for the benefit of the Company shall be charged to the Company. This shall include the cost of supplies, materials, and various other items of expense incurred by the Service Provider directly on behalf of the Company as identified more specifically in Attachment A annexed hereto and made a part hereof.

b. The cost of services performed by the Service Provider that are not identifiable as expenses incurred directly and exclusively for the benefit of the Company shall be allocated and charged to the Company in conformity with customary insurance accounting practices.

c. At the request of the Company, and at Service Provider's expense, the Service Provider shall produce records and provide access to enable the Company to verify that such cost allocations are performed in accordance with the practices referenced above.

d. Each month, the Company shall reimburse the Service Provider for costs of services provided or expenses incurred by the Service Provider under this Agreement during the preceding month, in accordance with the payment provisions of Section 4 below.

For purposes of allocating costs under this Agreement, the Company and Service Provider shall rely on their internal accounting and allocation system then in effect, that system currently being the Management Accounting and Reporting System ("MARS"), which utilizes a product factor methodology for certain services and rate-volume formulas for other services, in order to ensure fair and reasonable allocations of income and expenses among affiliated entities. Although the Products are not securities, the Company acknowledges that the Service Provider is subject to guidance issued by the Securities and Exchange Commission and the National Association of Securities Dealers, Inc. ("NASD") pertaining to the recording of expenses and liabilities by broker dealers as set forth in the NASD's Notice To Members 03-63.

2

RSLIC-RDI Wholesaling Service Agreement

4. Payments:For services rendered under this Agreement, payment shall be made by the Company to the Service Provider on a monthly basis within thirty (30) days of invoice or other notice. The parties agree that during the course of any given month the Company may make reasonable estimated payments for part or all of the monthly cost in which case such payment shall be offset against the actual amount otherwise due at the end of the month under this Agreement. The parties also agree that, at the option of the Company, the Company may reimburse Service Provider based upon Service Provider's good faith estimate of the monthly costs for some or all of the services provided hereunder, in which case there shall be a final adjustment made within thirty (30) days after completion of Service Provider's cost analysis performed at least annually.

5. Services Provided by Company.Company agrees to make its employees and facilities available to the Service Provider, upon request of the Service Provider, to perform services as may be mutually agreed upon by the parties from time to time. The cost of such services shall be allocated to the Service Provider in the same manner costs are allocated to the Company pursuant to Section 3 herein. With respect to such services, all terms and conditions of this Agreement shall be applicable as though fully stated herein, except the Company shall be deemed the "Service Provider" and the Service Provider shall be deemed the "Company" for purposes of determining rights and obligations of the parties under this Agreement.

6. No Profit or Loss: It is the intention of the parties that no party shall realize a profit nor incur a loss as a result of the services provided and expenses incurred hereunder and the allocation of all costs for such services and expenses shall be made consistent with such intention.

7. Maintenance of Books: Company and Service Provider each shall maintain its own books, accounts and records in such a way as to disclose clearly and accurately the nature and detail of the transactions between them, including such accounting information as is necessary to support the reasonableness of charges under this Agreement, and such additional information as the Company may reasonably request for purposes of its internal bookkeeping and accounting operations. The Service Provider shall keep such books, records and accounts insofar as they pertain to the computation of charges hereunder available for audit, inspection and copying by the Company and persons authorized by it or any governmental agency having jurisdiction over the Company during all reasonable business hours.

8. Ownership and Custody of Records:All records, books and files established and maintained by the Service Provider by reason of its performance of services under this Agreement, which, absent this Agreement, would have been held by the Company, shall be deemed the property of the Company and shall be maintained in accordance with applicable laws and regulations. Such records should be available, during normal business hours, for inspection by the Company, anyone authorized by the Company, and any governmental agency that has regulatory authority over the Company's business activities. Copies of such records, books and files shall be delivered to the Company on demand. All such records, books and files shall be promptly transferred to the Company by the Service Provider upon termination of this Agreement; provided, however, that nothing herein shall prevent the Service Provider from maintaining a copy of such records as necessary for the Service Provider to comply with Section 17(a) of the 1934 Act and the rules thereunder pertaining to books and records required to be kept by a broker dealer.

9. Audit:The Company and persons authorized by it and any governmental agency having jurisdiction over the Company shall have the right, at Company's expense, to conduct an audit of the relevant books, records and accounts in the possession of the Service Provider upon giving reasonable notice of its intent to conduct such an audit. In the event of such audit, the Service Provider shall give to the party requesting the audit reasonable cooperation and access

3

RSLIC-RDI Wholesaling Service Agreement

to all books, records and accounts necessary to audit during normal business hours.

10. Right to Contract with Third Parties: Nothing herein shall be deemed to grant the Service Provider an exclusive right to provide services to the Company, and the Company retains the right to contract with any third party, affiliated or unaffiliated, for the performance of services or for the use of facilities as are available to or have been requested by the Company pursuant to this Agreement.

The Service Provider, unless the Company objects, shall have the right to subcontract with any third party, affiliated or unaffiliated, for the performance of services requested by the Company under this Agreement, provided that the Service Provider shall remain responsible for the performance of services by any such subcontractors in accordance with the terms of this Agreement; and provided further that the charges for any such services subcontracted to an affiliate shall be determined on the basis described in Section 3 above.

11. Safeguarding Customer Information: The Service Provider shall implement and maintain appropriate measures designed to meet the objectives of Minnesota Statutes Sections 60A.98 and 60A.981 with respect to safeguarding the Company's customer information and customer information systems. The Service Provider shall adjust information

security programs at the request of the Company for any relevant changes dictated by the Company's assessment of risk concerning its customer information and customer information systems. Confirming evidence that the Service Provider has satisfied its obligations under this Agreement shall be made available, during normal business hours, for inspection by the Company, any person authorized by the Company, and any governmental agency that has regulatory authority over the Company's business activities.

12. Exercise of Judgment in Rendering Services: In providing services hereunder which require the exercise of judgment by the Service Provider, the Service Provider shall perform any such service in accordance with standards and guidelines which the Company develops and communicates to the Service Provider. In performing any services hereunder, the Service Provider shall at all times act in a manner reasonably calculated to be in or not opposed to the best interests of the Company.

4

RSLIC-RDI Wholesaling Service Agreement

13. Capacity of Personnel and Status of Facilities: Whenever the Service Provider utilizes its personnel to perform services for the Company pursuant to this Agreement, such personnel shall at all times remain employees of the Service Provider, subject solely to its own direction and control. The Company shall have no liability to such employees for their welfare, salaries, fringe benefits, legally required employer contributions and tax obligations. No facility of the Service Provider used in performing services for, or subject to use by, the Company shall be deemed to be transferred, assigned, conveyed or leased by performance or use pursuant to this Agreement.

14. Assignment:This Agreement and any rights pursuant hereto shall not be assignable by either party hereto, except as set forth herein or by operation of law, subject to whatever regulatory filings or approvals may be applicable. Except as and to the extent specifically provided in this Agreement, nothing in this Agreement, expressed or implied, is intended to confer on any person other than the parties hereto, or their respective legal successors, any rights, remedies, obligations or liabilities that would otherwise be applicable. The representations, warranties, covenants and agreements contained in this Agreement shall be binding upon, extend to and inure to the benefit of the parties hereto, their, and each of their, successors, and assigns respectively.

15. Arbitration:Any unresolved dispute or difference between the parties arising out of or relating to this Agreement, or the breach thereof, shall be settled by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association. The award rendered by the Arbitrator shall be final and binding upon the parties, and judgment upon the award rendered by the Arbitrator may be entered in any court having jurisdiction thereof. The arbitration shall take place in Minneapolis, Minnesota.

16. Indemnification: The Company and the Service Provider agree to hold each other harmless and to indemnify each other against any and all liability, loss, damage, expense, cost, cause of action, demand, penalty, fine or claim (including cost of litigation or administrative proceedings and counsel fees) arising out of or related to any of the services provided hereunder to the extent the same are caused by the act or failure to act of the indemnifying party.

17. Confidential Information: The parties agree certain information released in performance of this Agreement, whether intentionally or unintentionally, may constitute confidential information ("Confidential Information"). Confidential Information, for purposes of this agreement, means information released by one party ("Releasing Party") to the other ("Receiving Party"), in whatever format, that is nonpublic, trade secret and/or proprietary. Itis agreed the Receiving Party shall maintain Confidential Information in strict confidence, refrain from misappropriating such information for purposes other than performing responsibilities under this Agreement or as otherwise agreed to by the parties, use commercially reasonable efforts to prevent disclosing such information to unauthorized or unaffiliated third parties, and not copy such information without prior consent or acquiescence of the Releasing Party. These restrictions do not apply to information that (i) enters into the public domain through no fault or action of the Receiving Party, (ii) is obtained from a third party who is under no legal or contractual obligation to maintain confidentially of such information, (iii) is independently developed by the Receiving Party without reference to or use of any Confidential Information, or (iv) is required to be disclosed pursuant to requirements of law or legal process including but not limited to disclosures made to and required by any governmental agency having regulatory authority over the Company. Upon termination, if demanded by the Releasing party, the Receiving Party shall within sixty (60) days return to the Releasing Party copies, in whatever form or medium, of any material containing Confidential Information.

5

RSLIC-RDI Wholesaling Service Agreement

18. Notices: All notices, statements or requests provided for hereunder shall be deemed to have been duly given when delivered by hand to an officer of the other party, or when deposited with the U.S. Postal Service, as first class certified or registered mail, postage prepaid, overnight courier service, or facsimile copy, addressed:

a.	If to the Service Provider to:	Chief Financial Officer
		RiverSource Distributors, Inc.
		52 Ameriprise Financial Center
		Minneapolis, MN 55474
	with a copy to:	General Counsel
		RiverSource Distributors, Inc.
		55 Ameriprise Financial Center
		Minneapolis, MN 55474
b.	If to the Company to:	Chief Financial Officer
		RiverSource Life Insurance Company
		227 RiverSource Distributors Center
		Minneapolis, MN 55474
	with a copy to:	General Counsel
		RiverSource Life Insurance Company
		55 RiverSource Distributors Center
		Minneapolis, MN 55474

or to such other persons or places as each party may designate from time to time. The aforementioned individuals shall also serve as contact persons for the purpose of carrying out this Agreement. As such, the contact persons shall be authorized to act on behalf of their respective parties as to the matters pertaining to this Agreement. Each party shall notify the other in writing as to the name, address and telephone number of the designated contact person in the event there is a replacement or change in such contact information.

19. Termination: This Agreement shall remain in effect until (i) the parties mutually agree to terminate the agreement or (ii) either the Company or the Service Provider gives the other party sixty (60) days or more advance written notice of the party's intent to terminate this Agreement or that portion of this Agreement pertaining to any one or more of the services or items set forth in Attachment A annexed hereto. Upon termination, the Service Provider shall promptly deliver to the Company all books and records that are, or are deemed by this Agreement, the property of the Company.

20. Settlement on Termination:No later than sixty (60) days after the effective date of termination of this Agreement, the Service Provider shall deliver to Company a detailed written statement for all charges incurred and not included in any previous statement to the effective date of termination. The amount owed or to be refunded hereunder shall be due and payable within thirty (30) days of receipt of such statement.

21. Performance Standards:Service Provider agrees that in performing or providing functions or services hereunder, it shall use that degree of ordinary care and reasonable diligence that an experienced and qualified provider of similar services would use acting in like circumstances in such matters and in accordance with the standards, practices and procedures established by

6

RSLIC-RDI Wholesaling Service Agreement

the Service Provider for its own business. Service Provider shall perform services according to servicing standards of the Company or such other standards as may be mutually agreed upon by the parties. Service Provider shall comply with all laws, regulations, rules and orders applicable to (i) the Company with respect to the services provided hereunder and (ii) the Service Provider with respect to its own business. Service Provider agrees to maintain sufficient facilities and trained personnel of the kind necessary to perform the services under this Agreement.

22. Control: The performance of services by the Service Provider for the Company pursuant to this Agreement shall in no way impair the absolute control of the business and operations of the Service Provider or the Company by their respective Boards of Directors. The Service Provider shall act hereunder so as to assure the separate operating entity of the Company. The business and operations of the Company shall at all times be subject to the direction and control of the Board of Directors of the Company.

23. Governing Law:This Agreement is made pursuant to and shall be governed by, interpreted under, and the rights of the parties determined in accordance with, the laws of the State of Minnesota.

24. Entire Agreement: This Agreement, together with such amendments as may from time to time be executed in writing by the parties, constitutes the entire agreement and understanding between the parties in respect of the transactions contemplated hereby and supersedes all prior agreements, arrangements and understandings relating to the subject matter hereof.

25. Severability.Itis further agreed and understood by the parties hereto that if any part, term or provision of this Agreement should be held unenforceable in the jurisdiction in which either party seeks enforcement of this Agreement, it shall be construed as if not containing the invalid provision or provisions, and the remaining portions or provisions shall govern the rights and obligations of the parties.

26. Section Headings: Section headings contained herein are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

7

RSLIC-RDI Wholesaling Service Agreement

27. Counterparts: This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and enforceable against the parties actually executing such counterpart, and all of which, when taken together, shall constitute one instrument.

8

RSLIC-RDI Wholesaling Service Agreement

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the dates indicated below.

RIVERSOURCE DISTRIBUTORS, INC.
	By:	/s/ Mark Schwarzmann
	Its:	CEO
	Date:	12/21/2006
RIVERSOURCE LIFE INSURANCE COMPANY
	By:	/s/ Timothy V. Bechtold
	Its:	President
	Date:	12/21/2006

9

RSLIC-RDI Wholesaling Service Agreement

ATTACHMENT A

Services:To the extent requested by the Company, the Service Provider shall make its employees and facilities available to provide insurance distributors (and their agents and other personnel) designated by the Company with wholesaling services including but not limited to the following:

• Providing information regarding the Products which has been prepared by or approved by the Company in advance of its use

• Developing and disseminating sales strategies and sales materials for the Products which have been prepared by or approved by the Company in advance of their use

• Sponsoring informational events regarding the Products

• Answering technical questions about the Products

• Other promotional and distribution related services authorized by the Company including new distributor acquisition, account management, distributor licensing and coordination services, and distributor systems coordination

10

RSLIC-RDI Wholesaling Service Agreement

EX-10.3

EXHIBIT 10.3

FUND ACCOUNTING SERVICE AGREEMENT

BY AND BETWEEN

COLUMBIA MANAGEMENT INVESTMENT ADVISERS, LLC

AND

RIVERSOURCE LIFE INSURANCE COMPANY

This Fund Accounting Service Agreement (the “Agreement”) is made effective as of February 1, 2011 (the “Effective Date”) by and between Columbia Management Investment Advisers, LLC, a Minnesota limited liability company (herein “CMIA” and known internally as Company 36” for accounting purposes), and RiverSource Life Insurance Company, a Minnesota corporation (herein “RSLIC” and known internally as “Company 10” for accounting purposes).

WHEREAS, CMIA and RSLIC are affiliated companies that are members of an insurance holding company system; and

WHEREAS, CMIA has extensive experience in providing the kinds of services to be provided under this Agreement and an established infrastructure for providing such services in an efficient and cost effective manner; and

WHEREAS, RSLIC desires to obtain, for the benefit of its insurance business, certain services from CMIA and share in the cost of certain expenses incurred by CMIA on behalf of RSLIC, and CMIA desires to provide such services and incur such expenses, all upon the terms and conditions hereinafter set forth; and

WHEREAS, the parties desire to set forth in writing the services and expenses which are the subject of this Agreement and the basis for allocating expenses between them.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows:

1. Services: At the request of RSLIC and subject to RSLIC’s sole and exclusive right to control and manage its insurance business, CMIA will provide those services and incur those expenses as set forth on Attachment A annexed hereto and made a part hereof as well as any other services or expenses reasonably requested by RSLIC in connection with RSLIC’s business.

2. Term: This Agreement shall be for a term beginning on the Effective Date and shall remain in effect thereafter unless the parties mutually agree otherwise;

1

provided, however, that either party may terminate this Agreement in accordance with the provisions of Section 19 below.

3. Allocation of Costs: RSLIC agrees to reimburse CMIA at cost for services provided and expenses incurred by CMIA pursuant to this Agreement. The charge to RSLIC for such services shall include all directly and indirectly allocable expenses. The methods for allocating expenses to RSLIC shall be in accordance with the requirements of the applicable state insurance holding company system laws. Such methods shall be modified and adjusted by mutual agreement where necessary or appropriate to reflect fairly and equitably the actual incidence of expense incurred by CMIA on behalf of RSLIC. The method of allocating costs hereunder and the payment thereof shall be determined in the following manner:

a. The cost of services performed by CMIA that are identifiable as expenses incurred directly and exclusively for the benefit of RSLIC shall be charged to RSLIC. This shall include the cost of supplies, materials, and various other items of expense incurred by CMIA directly on behalf of RSLIC as identified more specifically in Attachment A annexed hereto and made a part hereof.

b. The cost of services performed by CMIA that are not identifiable as expenses incurred directly and exclusively for the benefit of RSLIC shall be allocated and charged to RSLIC in conformity with customary insurance accounting practices.

c. At the request of RSLIC, and at CMIA’s expense, CMIA shall produce records and provide access to enable RSLIC to verify that such cost allocations are performed in accordance with the practices referenced above.

d. Each month, RSLIC shall reimburse CMIA for costs of services provided or expenses incurred by CMIA under this Agreement during the preceding month, in accordance with the payment provisions of Section 4 below.

For purposes of allocating costs under this Agreement, RSLIC and CMIA shall rely on their internal accounting and allocation system then in effect.

4. Payments: For services rendered under this Agreement, payment shall be made by RSLIC to CMIA on a monthly basis within thirty (30) days of invoice or other notice. The parties agree that during the course of any given month RSLIC may make reasonable estimated payments for part or all of the monthly cost in which case such payment shall be offset against the actual amount otherwise due at the end of the month under this Agreement. The parties also agree that, at the option of RSLIC, RSLIC may reimburse CMIA based upon a good faith estimate of the monthly costs for some or all of the services provided hereunder, in which case there shall be a final adjustment

2

made within thirty (30) days after completion of CMIA’s cost analysis performed at least annually.

5. Services Provided by RSLIC: RSLIC agrees to make its employees and facilities available to CMIA, upon request of CMIA, to perform services as may be mutually agreed upon by the parties from time to time. The cost of such services shall be allocated to CMIA in the same manner costs are allocated to RSLIC pursuant to Sections 3 and 4 herein. With respect to such services, all terms and conditions of this Agreement shall be applicable as though fully stated herein, except RSLIC shall be deemed “CMIA” and CMIA shall be deemed “RSLIC” for purposes of determining rights and obligations of the parties under this Agreement.

6. No Profit or Loss: It is the intention of the parties that no party shall realize a profit nor incur a loss as a result of the services provided and expenses incurred hereunder and the allocation of all costs for such services and expenses shall be made consistent with such intention.

7. Maintenance of Books: RSLIC and CMIA each shall maintain its own books, accounts and records in such a way as to disclose clearly and accurately the nature and detail of the transactions between them, including such accounting information as is necessary to support the reasonableness of charges under this Agreement, and such additional information as RSLIC may reasonably request for purposes of its internal bookkeeping and accounting operations. CMIA shall keep such books, records and accounts insofar as they pertain to the computation of charges hereunder available for audit, inspection and copying by RSLIC and persons authorized by it or any governmental agency having jurisdiction over RSLIC during all reasonable business hours.

8. Ownership and Custody of Records: All records, books and files established and maintained by CMIA by reason of its performance of services under this Agreement, which, absent this Agreement, would have been held by RSLIC, shall be deemed the property of RSLIC and shall be maintained in accordance with applicable laws and regulations. Such records should be available, during normal business hours, for inspection by RSLIC, anyone authorized by RSLIC, and any governmental agency that has regulatory authority over RSLIC’s business activities. Copies of such records, books and files shall be delivered to RSLIC on demand. All such records, books and files shall be promptly transferred to RSLIC by CMIA upon termination of this Agreement.

9. Audit: RSLIC and persons authorized by it and any governmental agency having jurisdiction over RSLIC shall have the right, at RSLIC’s expense, to conduct an audit of the relevant books, records and accounts in possession of CMIA upon giving reasonable notice of its intent to conduct such an audit. In the event of such audit, CMIA shall give to the party requesting the audit reasonable cooperation and access to all books, records and accounts necessary to audit during normal business hours.

3

10. Right to Contract with Third Parties: Nothing herein shall be deemed to grant CMIA an exclusive right to provide services to RSLIC, and RSLIC retains the right to contract with any third party, affiliated or unaffiliated, for the performance of services requested by RSLIC pursuant to this Agreement. CMIA, unless RSLIC objects, shall have the right to subcontract with any third party, affiliated or unaffiliated, for the performance of services requested by RSLIC under this Agreement, provided that CMIA shall remain responsible for the performance of services by any such subcontractors in accordance with the terms of this Agreement; and provided further that the charges for any such services subcontracted to an affiliate shall be determined on the basis described in Section 3 above.

11. Safeguarding Customer Information: CMIA shall implement and maintain appropriate measures designed to meet the objectives of Minnesota Statutes Sections 60A.98 and 60A.981 with respect to safeguarding RSLIC’s customer information and customer information systems. CMIA shall adjust information security programs upon reasonable request of RSLIC for any relevant changes dictated by RSLIC’s assessment of risk concerning its customer information and customer information systems. Confirming evidence that CMIA has satisfied its obligations under this Agreement shall be made available, during normal business hours, for inspection by RSLIC, any person authorized by RSLIC, and any governmental agency that has regulatory authority over RSLIC’s business activities.

12. Exercise of Judgment in Rendering Services: In providing services hereunder which require the exercise of judgment by CMIA, CMIA shall perform any such service in accordance with standards and guidelines which RSLIC develops and communicates to CMIA. In performing any services hereunder, CMIA shall at all times act in a manner reasonably calculated to be in or not opposed to the interest of RSLIC.

13. Capacity of Personnel and Status of Facilities: Whenever CMIA utilizes its employees or independent contractors to perform services for RSLIC pursuant to this Agreement, such personnel shall at all times remain employees or independent contractors of CMIA, subject solely to the direction or responsibility of CMIA. RSLIC shall have no liability to such personnel for their welfare, salaries, fringe benefits, legally required employer contributions and tax obligations. No facility of CMIA used in performing services for, or subject to use by, RSLIC shall be deemed to be transferred, assigned, conveyed or leased by performance or use pursuant to this Agreement. The independent contractor status of any independent contractor engaged by CMIA shall not be affected by this Agreement.

14. Assignment: This Agreement and any rights pursuant hereto shall not be assignable by either party hereto, except as set forth herein or by operation of law, subject to whatever regulatory filings or approvals may be applicable. Except as and to the extent specifically provided in this Agreement, nothing in this Agreement, expressed or implied, is intended to confer on any person

4

other than the parties hereto, or their respective legal successors, any rights, remedies, obligations or liabilities that would otherwise be applicable. The representations, warranties, covenants and agreements contained in this Agreement shall be binding upon, extend to and inure to the benefit of the parties hereto, their, and each of their, successors, and assigns respectively.

15. Arbitration: Any unresolved dispute under this Agreement between CMIA and RSLIC shall be decided by binding arbitration. The arbitration shall be conducted by a sole arbitrator selected by unanimous agreement of the concerned parties hereto as the case may be, or if unanimous agreement cannot be reached then by drawing lots. Decisions of the arbitrator shall be final and there shall be no appeal from the arbitrator’s decisions. The arbitration shall be conducted in accordance with the rules of the American Arbitration Association unless the concerned parties decide otherwise, in which case the latter decisions will apply as to the applicable rules for arbitration. The place of arbitration will be Minneapolis, Minnesota, USA.

16. Indemnification: RSLIC and CMIA agree to hold each other harmless and to indemnify each other against any and all liability, loss, damage, expense, cost, cause of action, demand, penalty, fine or claim (including cost of litigation or administrative proceedings and counsel fees) arising out of or related to any of the services provided hereunder to the extent the same are caused by the act or failure to act of the indemnifying party. Notwithstanding the foregoing, no party will be entitled to indemnification pursuant to this Section 16 if such loss, claim, damage, expense, or liability is due to the willful misfeasance, bad faith or gross negligence in the performance of its duties, or reckless disregard of its obligations and duties under the terms of this Agreement. It is further understood and agreed that RSLIC may rely upon information furnished to it reasonably believed to be accurate and reliable, and CMIA may rely upon information furnished to it reasonably believed to be accurate and reliable.

17. Confidential Information: The parties agree certain information released in performance of this Agreement, whether intentionally or unintentionally, may constitute confidential information (“Confidential Information”). Confidential Information, for purposes of this Agreement, means information released by one party (“Releasing Party”) to the other (“Receiving Party”), in whatever format, that is nonpublic, trade secret and/or proprietary. It is agreed the Receiving Party shall maintain Confidential Information in strict confidence, refrain from misappropriating such information, refrain from using such information for purposes other than performing responsibilities under this Agreement or as otherwise agreed to by the parties, use commercially reasonable efforts to prevent disclosing such information to unauthorized or unaffiliated third parties, and not copy such information without prior consent or acquiescence of the Releasing Party. These restrictions do not apply to information that (i) enters into the public domain through no fault or action of the Receiving Party, (ii) is obtained from a third party who is under no legal or contractual obligation to maintain confidentiality of such information, (iii) is

5

independently developed by the Receiving Party without reference to or use of any Confidential Information, or (iv) is required to be disclosed pursuant to requirements of law or legal process including, but not limited to, disclosures made to and required by any governmental agency having regulatory authority over RSLIC. Upon termination, if demanded by the Releasing Party, the Receiving Party shall within sixty (60) days return to the Releasing Party copies, in whatever form or medium, of any material containing Confidential Information.

18. Notices: All Notices, statements or requests provided for hereunder shall be deemed to have been duly given when delivered by hand to an officer of the other party, or when deposited with the U.S. Postal Service, as first class certified or registered mail, postage prepaid, overnight courier service, or facsimile copy, addressed:

a. If to CMIA to:

Chief Financial Officer

Columbia Management Investment Advisers, LLC

One Financial Center

Boston, MA 02111

with a copy to:

General Counsel

Columbia Management Investment Advisers, LLC

One Financial Center

Boston, MA 02111

b. If to RSLIC to:

Chief Financial Officer

RiverSource Life Insurance Company

227 Ameriprise Financial Center

Minneapolis, MN 55474

with a copy to:

General Counsel

RiverSource Life Insurance Company

5229 Ameriprise Financial Center

Minneapolis, MN 55474

or to such other persons or places as each party may designate from time to time. The aforementioned individuals shall also serve as contact persons for the purpose of carrying out this Agreement. As such, the contact persons shall be authorized to act on behalf of their respective parties as to the matters pertaining to this Agreement. Each party shall notify the other in writing as to the name, address and telephone number of the designated contact person in the event there is a replacement or change in such contact information.

6

19. Termination: This Agreement shall remain in effect until (i) the parties mutually agree to terminate the agreement, or (ii) either RSLIC or CMIA gives the other party sixty (60) days or more advance written notice of the party’s intent to terminate this Agreement or that portion of this Agreement pertaining to any one or more of the services or items set forth in Attachment A annexed hereto.

20. Settlement on Termination: No later than sixty (60) days after the effective date of termination of this Agreement, CMIA shall deliver to RSLIC a detailed written statement for all charges incurred and not included in any previous statement to the effective date of termination. The amount owed or to be refunded hereunder shall be due and payable within thirty (30) days of receipt of such statement.

21. Performance Standards: CMIA agrees that in performing or providing functions or services hereunder, it shall use that degree of ordinary care and reasonable diligence that an experienced and qualified provider of similar services would use acting in like circumstances in such matters and in accordance with the standards, practices and procedures established by CMIA for its own business. CMIA shall perform services according to servicing standards of RSLIC or such other standards as may be mutually agreed upon by the parties. CMIA shall comply with all laws, regulations, rules and orders applicable to (i) RSLIC with respect to the services provided hereunder and (ii) CMIA with respect to its own business. CMIA agrees to maintain sufficient facilities and trained personnel of the kind necessary to perform the services under this Agreement.

22. Control: The performance of services by CMIA for RSLIC pursuant to this Agreement shall in no way impair the absolute control of the business and operations of CMIA or RSLIC by their respective Boards of Directors. CMIA shall act hereunder so as to assure the separate operating entity of RSLIC. The business and operations of RSLIC shall at all times be subject to the direction and control of the Board of Directors of RSLIC.

23. Governing Law: This Agreement is made pursuant to and shall be governed by, interpreted under, and the rights of the parties determined in accordance with, the laws of the State of Minnesota.

24. Entire Agreement: This Agreement, together with such amendments as may from time to time be executed in writing by the parties, constitutes the entire agreement and understanding between the parties in respect of the transactions contemplated hereby and supersedes all prior agreements, arrangements and understandings relating to the subject matter hereof.

25. Severability: It is further agreed and understood by the parties hereto that if any part, term or provision of this Agreement should be held unenforceable in the jurisdiction in which either party seeks enforcement of this Agreement, it shall be construed as if not containing the invalid provision or provisions, and the remaining portions or provisions shall govern the rights and obligations of the parties.

7

26. Section Headings: Section headings contained herein are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

27. Counterparts: This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and enforceable against the parties actually executing such counterpart, and all of which, when taken together, shall constitute one instrument.

28. Assignment: This Agreement will not be assignable without the written consent of the other party.

IN WITNESS THEREOF, the parties hereto have executed the foregoing Agreement.

COLUMBIA MANAGEMENT INVESTMENT ADVISERS, LLC
By:	/s/ Brian McGrane
Name:	Brian McGrane
Title:	Executive Vice President

8

RIVERSOURCE LIFE INSURANCE COMPANY
By:	/s/ Jon Stenberg
Name:	Jon Stenberg
Title:	Executive Vice President

9

ATTACHMENT A

1. Services: CMIA shall, pursuant to the terms and conditions of this Agreement, make its employees and facilities available for performance of the following kinds of services, and shall allocate to RSLIC the costs and expenses it incurs in the course of performing such services:

a. Processing contract holder activity on investment accounting systems.

b. Sending fund level trades to Columbia Management Investment Services Corp. or to the then existing affiliated transfer agent and various non-affiliated fund transfer agents.

c. Reconciling accumulation units and general ledger control accounts.

d. Reconciling shares to the transfer agents.

e. Calculating accumulation and annuity unit values. Sending values to downstream systems.

f. Completing various general ledger reconciliations.

g. Completing periodic true-ups for breakage between fund net assets and subaccount reserves.

h. Performing such other related services as may be agreed to by the parties from time to time.

2. [Intentionally omitted.]

10

EX-31.1

Exhibit 31.1

CERTIFICATION

I, John R. Woerner, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of RiverSource Life Insurance Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:    August 3, 2015

/s/ John R. Woerner
Name:	John R. Woerner
Title:	Chairman and President

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Brian J. McGrane, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of RiverSource Life Insurance Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:    August 3, 2015

/s/ Brian J. McGrane
Name:	Brian J. McGrane
Title:	Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of RiverSource Life Insurance Company (the “Company”) for the quarterly period ended June 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), John R. Woerner, as Chairman and President of the Company, and Brian J. McGrane, Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C.  Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ John R. Woerner
Name:	John R. Woerner
Title:	Chairman and President
Date:	August 3, 2015
/s/ Brian J. McGrane
Name:	Brian J. McGrane
Title:	Chief Financial Officer
Date:	August 3, 2015

XML

Investments Investments (Realized GL info) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract]
Gross realized investment gains	$ 5	$ 3	$ 22	$ 9
Gross realized investment losses		(2)	(5)	(3)
Other-than-temporary impairments	0	0	0	(1)
Total	$ 5	$ 1	$ 17	$ 5

XML

Fair Values of Assets and Liabilities (Level 3 rollforwards-Assets) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Corporate debt securities [Member]
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward]
Balance, at the beginning of the period	$ 1,360	$ 1,391	$ 1,353	$ 1,516
Total gains (losses) included in other comprehensive income (loss)	(19)	10	(7)	15
Purchases	36	33	51	57
Sales				(11)
Settlements	(38)	(58)	(58)	(201)
Balance, at the end of the period	1,339	1,376	1,339	1,376
Residential mortgage backed securities [Member]
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward]
Balance, at the beginning of the period	39	11	9	58
Purchases			31	11
Settlements		(1)	(1)	(1)
Transfers out of Level 3	(31)		(31)	(58)
Balance, at the end of the period	8	10	8	10
Commercial mortgage backed securities [Member]
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward]
Balance, at the beginning of the period	20	55	90	30
Purchases	31		31	39
Settlements	(1)		(2)
Transfers into Level 3			6
Transfers out of Level 3	(16)	(40)	(91)	(54)
Balance, at the end of the period	34	15	34	15
Asset backed securities [Member]
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward]
Balance, at the beginning of the period	119	149	151	218
Total gains (losses) included in other comprehensive income (loss)		1		1
Purchases	1		1
Settlements	(2)	(1)	(2)	(1)
Transfers out of Level 3			(32)	(69)
Balance, at the end of the period	118	149	118	149
Available-for-sale securities: fixed maturities [Member]
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward]
Balance, at the beginning of the period	1,538	1,606	1,603	1,822
Total gains (losses) included in other comprehensive income (loss)	(19)	11	(7)	16
Purchases	68	33	114	107
Sales				(11)
Settlements	(41)	(60)	(63)	(203)
Transfers into Level 3			6
Transfers out of Level 3	(47)	(40)	(154)	(181)
Balance, at the end of the period	1,499	1,550	1,499	1,550
Changes in unrealized gains (losses) relating to assets held at the end of the period included in:
Net investment income	0	0	0	0
Common stocks [Member]
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward]
Balance, at the beginning of the period		0	1	0
Total gains (losses) included in other comprehensive income (loss)			(1)
Purchases		1		1
Balance, at the end of the period	$ 0	1	$ 0	1
Other derivative contracts [Member]
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward]
Balance, at the beginning of the period		0		0
Purchases		1		1
Balance, at the end of the period		$ 1		$ 1

XML

Variable Annuity and Insurance Guarantees (VA guarantee details) (Details) - USD ($) $ in Millions		6 Months Ended	12 Months Ended
		Jun. 30, 2015	Dec. 31, 2014
GMDB [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 76,067	$ 75,862
Contract value in separate accounts	[1]	71,239	71,050
Net amount at risk	[1]	$ 196	$ 131
Weighted average attained age	[1]	64 years	64 years
GMDB [Member] | Return of premium [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 56,176	$ 55,378
Contract value in separate accounts	[1]	54,345	53,565
Net amount at risk	[1]	$ 47	$ 24
Weighted average attained age	[1]	64 years	64 years
GMDB [Member] | Five/six-year reset [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 10,008	$ 10,360
Contract value in separate accounts	[1]	7,462	7,821
Net amount at risk	[1]	$ 31	$ 28
Weighted average attained age	[1]	65 years	64 years
GMDB [Member] | One-year ratchet [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 7,223	$ 7,392
Contract value in separate accounts	[1]	6,846	7,006
Net amount at risk	[1]	$ 69	$ 39
Weighted average attained age	[1]	67 years	66 years
GMDB [Member] | Five-year ratchet [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 1,734	$ 1,773
Contract value in separate accounts	[1]	1,677	1,717
Net amount at risk	[1]	$ 4	$ 2
Weighted average attained age	[1]	63 years	63 years
GMDB [Member] | Other [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 926	$ 959
Contract value in separate accounts	[1]	909	941
Net amount at risk	[1]	$ 45	$ 38
Weighted average attained age	[1]	70 years	70 years
GGU death benefit [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 1,097	$ 1,072
Contract value in separate accounts	[1]	1,045	1,019
Net amount at risk	[1]	$ 123	$ 123
Weighted average attained age	[1]	67 years	67 years
GMIB [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 310	$ 343
Contract value in separate accounts	[1]	288	321
Net amount at risk	[1]	$ 10	$ 9
Weighted average attained age	[1]	67 years	67 years
GMWB [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 41,231	$ 40,514
Contract value in separate accounts	[1]	41,096	40,394
Net amount at risk	[1]	$ 138	$ 96
Weighted average attained age	[1]	66 years	65 years
GMWB [Member] | GMWB [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 3,478	$ 3,671
Contract value in separate accounts	[1]	3,467	3,659
Net amount at risk	[1]	$ 1	$ 1
Weighted average attained age	[1]	68 years	68 years
GMWB [Member] | GMWB for life [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 37,753	$ 36,843
Contract value in separate accounts	[1]	37,629	36,735
Net amount at risk	[1]	$ 137	$ 95
Weighted average attained age	[1]	66 years	65 years
GMAB [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 4,246	$ 4,247
Contract value in separate accounts	[1]	4,229	4,234
Net amount at risk	[1]	$ 5	$ 2
Weighted average attained age	[1]	58 years	58 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.

XML

Deferred Acquisition Costs and Deferred Sales Inducement Costs (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Balances of and changes in DAC
Balance at the beginning of the period	$ 2,576	$ 2,633
Capitalization of acquisition costs	130	129
Amortization	(129)	(132)
Impact of change in net unrealized securities losses (gains)	47	(52)
Balance at the end of the period	2,624	2,578
Balances of and changes in DSIC
Balance at the beginning of the period	361	409
Capitalization of sales inducement costs	2	3
Amortization	(25)	(25)
Impact of change in net unrealized securities losses (gains)	7	(8)
Balance at the end of the period	$ 345	$ 379

XML

Variable Interest Entities (Details) - Variable interests in affordable housing partnerships [Member] - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Fixed maturities [Member]
Variable Interest Entities
Obligation to provide financial or other support to VIEs	$ 0
RTA [Member]
Variable Interest Entities
Carrying values of investments reflected in other investments	494	$ 504
Obligation to provide financial or other support to VIEs	$ 0

XML

Fair Values of Assets and Liabilities (Financial Instruments not at FV) (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Financial Assets
Mortgage loans, net	$ 3,233	$ 3,298
Policy loans	816	805
Other investments	962	987
Financial Liabilities
Policyholder account balances, future policy benefits and claims	28,744	29,805
Short-term borrowings	200	200
Other liabilities	4,561	4,650
Separate account liabilities	79,326	79,178
Level 2 [Member]
Financial Assets
Other investments	413	403
Financial Liabilities
Short-term borrowings	200	200
Separate account liabilities	389	400
Level 3 [Member]
Financial Assets
Mortgage loans, net	3,315	3,413
Policy loans	802	793
Other investments	38	55
Financial Liabilities
Policyholder account balances, future policy benefits and claims	12,803	13,996
Other liabilities	104	121
Total [Member]
Financial Assets
Mortgage loans, net	3,315	3,413
Policy loans	802	793
Other investments	451	458
Financial Liabilities
Policyholder account balances, future policy benefits and claims	12,803	13,996
Short-term borrowings	200	200
Other liabilities	104	121
Separate account liabilities	389	400
Carrying value [Member]
Financial Assets
Mortgage loans, net	3,233	3,298
Policy loans	816	805
Other investments	450	463
Financial Liabilities
Policyholder account balances, future policy benefits and claims	12,016	12,979
Short-term borrowings	200	200
Other liabilities	108	124
Separate account liabilities	$ 389	$ 400

XML

Deferred Acquisition Costs and Deferred Sales Inducement Costs (Tables)

6 Months Ended

Jun. 30, 2015

Deferred Acquisition Costs and Deferred Sales Inducement Costs

Schedule of balances of and changes in DAC

The balances of and changes in DAC were as follows:

	2015			2014
	(in millions)
Balance at January 1	$	2,576		$	2,633
Capitalization of acquisition costs	130			129
Amortization	(129		)	(132		)
Impact of change in net unrealized securities losses (gains)	47			(52		)
Balance at June 30	$	2,624		$	2,578

Schedule of balances of and changes in DSIC

The balances of and changes in DSIC, which are included in other assets, were as follows:

	2015			2014
	(in millions)
Balance at January 1	$	361		$	409
Capitalization of sales inducement costs	2			3
Amortization	(25		)	(25		)
Impact of change in net unrealized securities losses (gains)	7			(8		)
Balance at June 30	$	345		$	379

XML

Variable Annuity and Insurance Guarantees (Liability rollforward) (Details) - USD ($) $ in Millions		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014
GMDB & GGU [Member]
Changes in additional liabilities for variable annuity and insurance guarantees
Balance at the beginning of the period		$ 9	$ 4
Incurred claims		1	2
Paid claims		(1)	(2)
Balance at the end of the period		9	4
GMIB [Member]
Changes in additional liabilities for variable annuity and insurance guarantees
Balance at the beginning of the period		7	6
Balance at the end of the period		7	6
GMWB [Member]
Changes in additional liabilities for variable annuity and insurance guarantees
Balance at the beginning of the period		693	(383)
Incurred claims	[1]	(225)	252
Balance at the end of the period		468	(131)
GMAB [Member]
Changes in additional liabilities for variable annuity and insurance guarantees
Balance at the beginning of the period		(41)	(62)
Incurred claims	[1]	(4)	(14)
Balance at the end of the period		(45)	(76)
UL [Member]
Changes in additional liabilities for variable annuity and insurance guarantees
Balance at the beginning of the period		263	206
Incurred claims		45	39
Paid claims		(12)	(9)
Balance at the end of the period		$ 296	$ 236

[1] The incurred claims for GMWB and GMAB represent the total change in the liabilities (contra liabilities).

XML

Financing Receivables (Allowance for Loan Losses) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Rollforward of the allowance for loan losses
Beginning balance			$ 28	$ 28
Charge-offs			(2)	(2)
Provisions			1
Ending balance	$ 27	$ 26	27	26
Individually evaluated for impairment	6	8	6	8
Collectively evaluated for impairment	21	18	21	18
Recorded investment in financing receivables by impairment method
Individually evaluated for impairment	33		33		$ 32
Collectively evaluated for impairment	3,661		3,661		3,740
Total	3,694		3,694		3,772
Recorded investment in financing receivables individually evaluated for impairment with no related allowance for loan losses	13		13		$ 4
Loans purchased	24	25	36	90
Loans sold	$ 1	$ 6	$ 7	$ 10

XML

Investments Investments (OTTI rollforward) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
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	$ 33	$ 54	$ 33	$ 54
Credit losses for which an other-than-temporary impairment was not previously recognized	0	0	0	0
Ending balance	$ 33	$ 54	$ 33	$ 54

XML

Short-term Borrowings (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Borrowings
Amount of the company's liability including accrued interest	$ 200	$ 200
FHLB [Member]
Borrowings
Amount of the company's liability including accrued interest	$ 150	$ 150
Remaining maturity of outstanding amount	3 months	2 months
Weighted average annual interest rate (as a percent)	0.30%	0.30%
Repurchase agreements [Member]
Borrowings
Amount of the company's liability including accrued interest	$ 50	$ 50
Remaining maturity of outstanding amount	2 months	4 months
Weighted average annual interest rate (as a percent)	0.40%	0.40%
Residential mortgage backed securities [Member] | Repurchase agreements [Member]
Borrowings
Fair value of securities pledged	$ 23	$ 18
Commercial mortgage backed securities [Member] | FHLB [Member]
Borrowings
Fair value of securities pledged	303	298
Commercial mortgage backed securities [Member] | Repurchase agreements [Member]
Borrowings
Fair value of securities pledged	$ 29	$ 34

XML

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Operating Loss Carryforwards [Line Items]
Effective tax rate (as a percent)	17.90%	16.80%	18.20%	13.80%
Benefits tax planning and completion of audits			$ 18
Valuation allowance	$ 8		8		$ 8
Gross unrecognized tax benefits	160		160		160
Unrecognized tax benefits, net of federal tax benefits that would affect the effective tax rate if recognized	7		7		7
Low amount of range of change in gross unrecognized tax benefits due resolution of IRS examinations	150		150
High amount of range of change in gross unrecognized tax benefits due to resolution of IRS examinations	160		160
Net increase (decrease) in interest and penalties	1	$ 2	1	$ 1
Payable related to accrued interest and penalties	41		41		$ 40
State and local jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
State net operating losses	$ 7		$ 7

XML

Derivatives and Hedging Activities (Income Statement) (Details) - Derivatives not designated as hedging instruments [Member] - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income		$ (87)	$ (97)	$ (200)	$ (123)
GMWB and GMAB [Member]
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income		(95)	(88)	(194)	(129)
GMWB and GMAB [Member] | Interest rate contracts [Member] | Benefits, claims, losses and settlement expenses [Member]
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income		(562)	245	(176)	509
GMWB and GMAB [Member] | Equity contracts [Member] | Benefits, claims, losses and settlement expenses [Member]
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income		(137)	(197)	(259)	(387)
GMWB and GMAB [Member] | Credit contracts [Member] | Benefits, claims, losses and settlement expenses [Member]
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income		14	(12)	5	(22)
GMWB and GMAB [Member] | Foreign exchange contracts [Member] | Benefits, claims, losses and settlement expenses [Member]
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income		(2)		(8)	(1)
GMWB and GMAB [Member] | GMWB and GMAB embedded derivatives [Member] | Benefits, claims, losses and settlement expenses [Member]
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income	[1]	592	(124)	244	(228)
Tax hedge [Member] | Interest rate contracts [Member] | Net investment income [Member]
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income					3
EIA [Member] | Equity contracts [Member] | Interest credited to fixed accounts [Member]
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income			1		1
EIA embedded derivatives [Member] | Equity contracts [Member] | Interest credited to fixed accounts [Member]
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income			(1)		(1)
IUL [Member] | Equity contracts [Member] | Interest credited to fixed accounts [Member]
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income		(2)	6	(1)	11
IUL embedded derivatives [Member] | Equity contracts [Member] | Interest credited to fixed accounts [Member]
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income		4	(5)	(5)	(11)
Macro hedge program [Member] | Other contracts [Member] | Benefits, claims, losses and settlement expenses [Member]
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income		6	(10)		3
Other derivatives [Member]
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income		$ 8	$ (9)	$ (6)	$ 6

[1] The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.

XML

Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Balances by product) (Details) - USD ($) $ in Millions		Jun. 30, 2015	Dec. 31, 2014
Policyholder account balances		$ 20,953	$ 21,790
Future policy benefits		7,615	7,850
Policy claims and other policyholders’ funds		176	165
Total Policyholder account balances, future policy benefits and claims		28,744	29,805
Separate Accounts Disclosure [Abstract]
Variable annuity		72,264	72,125
VUL insurance		7,026	7,016
Other insurance		36	37
Total		79,326	79,178
Fixed annuities [Member]
Policyholder account balances		11,734	12,700
Variable annuity fixed sub-accounts [Member]
Policyholder account balances		4,874	4,860
VUL/UL insurance [Member]
Policyholder account balances		2,872	2,856
IUL [Member]
Policyholder account balances		661	534
Other life Insurance [Member]
Policyholder account balances		812	840
Variable annuity GMWB [Member]
Future policy benefits		468	693
Variable annuity GMAB [Member]
Future policy benefits	[1]	(45)	(41)
Other annuity liabilities [Member]
Future policy benefits		48	115
Fixed annuities life contingent liabilities [Member]
Future policy benefits		1,504	1,511
EIA [Member]
Future policy benefits		29	29
Llife, disability income and long term care insurance [Member]
Future policy benefits		5,173	5,106
VUL/UL and other life insurance additional liabilities [Member]
Future policy benefits		$ 438	$ 437

[1] Includes the value of GMAB embedded derivatives that was a net asset at both June 30, 2015 and December 31, 2014 reported as a contra liability.

XML

Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2015

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recent Accounting Pronouncements

Recent AccountingPronouncements

Adoption of New Accounting Standards

Transfers and Servicing

In June 2014, the Financial Accounting Standards Board (“FASB”) updated the accounting standards related to transfers and servicing. The update requires repurchase-to-maturity transactions and linked repurchase financings to be accounted for as secured borrowings consistent with the accounting for other repurchase agreements. The standard requires disclosures related to transfers of financial assets accounted for as sales in transactions that are similar to repurchase agreements. The standard also requires disclosures on the remaining contractual maturity of the agreements, disaggregation of the gross obligation by class of collateral pledged and potential risks associated with the agreements and the related collateral pledged in repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings. The standard is effective for interim and annual periods beginning after December 15, 2014, except for the disclosure requirements for repurchase agreements, security lending transactions and repurchase-to-maturity transactions accounted for as secured borrowings which are effective for interim periods beginning after March 15, 2015. The standard requires entities to present changes in accounting for transactions outstanding at the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The adoption of the standard did not have any effect on the Company’s consolidated financial condition and results of operations. See Note 9 and Note 11 for the required disclosures.

Receivables - Troubled Debt Restructuring by Creditors

In January 2014, the FASB updated the accounting standard related to recognizing residential real estate obtained through a repossession or foreclosure from a troubled debtor. The update clarifies the criteria for derecognition of the loan receivable and recognition of the real estate property. The standard is effective for interim and annual periods beginning after December 15, 2014 and can be applied under a modified retrospective transition method or a prospective transition method. The adoption of the standard did not have any effect on the Company’s consolidated financial condition and results of operations.

Investments - Equity Method and Joint Ventures

In January 2014, the FASB updated the accounting standard related to investments in qualified affordable housing projects. The update allows for an accounting policy election to account for investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the investment in a qualified affordable housing project is amortized in proportion to the tax credits and other tax benefits received. The net investment performance is recognized as a component of income tax expense (benefit). The standard is effective for interim and annual periods beginning after December 15, 2014 and should be applied retrospectively to all periods presented. The Company did not elect the proportional amortization method.

Future Adoption of New Accounting Standards

Fair Value Measurement – Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)

In May 2015, the FASB updated the accounting standards related to fair value measurement. The update applies to investments that are measured at net asset value (“NAV”). The standard eliminates the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share as a practical expedient. In addition, the update limits disclosures to investments for which the entity elected to measure the fair value using the practical expedient rather than all eligible investments. The standard is effective for interim and annual periods beginning after December 15, 2015. The standard should be applied retrospectively to all periods presented and early adoption is permitted. There will be no impact of the standard to the Company’s consolidated financial condition and results of operations.

Consolidation

In February 2015, the FASB updated the accounting standard for consolidation. The update changes the accounting for the consolidation model for limited partnerships and a variable interest entity (“VIE”) and excludes certain money market funds out of the consolidation analysis.  Specific to the consolidation analysis of a VIE, the update clarifies consideration of fees paid to a decision maker and amends the related party guidance. The standard is effective for periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The standard may be applied using a modified retrospective approach by recording a cumulative-effect adjustment to equity at the beginning of the period of adoption or applied retrospectively. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations.

Presentation of Financial Statements - Going Concern

In August 2014, the FASB updated the accounting standard related to an entity’s assessment of its ability to continue as a going concern. The standard requires that management evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. In situations where there is substantial doubt about an entity’s ability to continue as a going concern, disclosure should be made so that a reader can understand the conditions that raise substantial doubt, management’s assessment of those conditions and any plan management has to mitigate those conditions. The standard is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. The adoption of the standard is not expected to have a material impact on the Company’s consolidated financial condition and results of operations.

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. In addition, the standard requires disclosure of quantitative and qualitative information that enables users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The standard is effective for interim and annual periods beginning after December 15, 2016 and early adoption is prohibited. The standard may be applied retrospectively for all periods presented or retrospectively with a cumulative-effect adjustment at the date of adoption. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations.

XML

Derivatives and Hedging Activities (Notional and Related Party Information) (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Macro hedge program [Member]
Notional Disclosures [Abstract]
Derivative, notional amount	$ 3,300	$ 1,200
Freestanding non-VA derivatives [Member] | Derivatives not designated as hedging instruments [Member]
Notional Disclosures [Abstract]
Notional amounts of index options and futures contracts	1,200	953
GMWB and GMAB embedded derivatives [Member] | Derivatives not designated as hedging instruments [Member]
Notional Disclosures [Abstract]
Derivative, notional amount	$ 137,900	$ 132,000

XML

Financing Receivables (Credit Quality Information Text) (Details) $ in Millions	Jun. 30, 2015 USD ($) item	Dec. 31, 2014 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans, gross	$ 3,694	$ 3,772
Nonperforming loans	8	10
Commercial mortgage loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans, gross	$ 2,616	$ 2,632
Percent of commercial mortgage loans with highest risk rating	1.00%	1.00%
Residential mortgage loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans, gross	$ 638	$ 689
Allowance for loan losses on purchase of loans from affiliate	0	0
Unamortized discount	$ 27	$ 34
Percentage of residential mortgage loans below specific FICO score	5.00%	5.00%
FICO Score | item	640
Percentage of residential mortgage loans above specific LTV ratio	1.00%	1.00%
LTV Ratio	90.00%
Percentage of loan portfolio represented by state of California	37.00%	37.00%
Syndicated Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans, gross	$ 440	$ 451
Nonperforming loans	$ 3	$ 3

XML

Offsetting Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2015

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:

	June 30, 2015
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets
							Financial Instruments (1)			Cash Collateral			Securities Collateral			Net Amount
	(in millions)
Derivatives:
OTC	$	3,305	$	—	$	3,305	$	(2,747	)	$	(254	)	$	(215	)	$	89
OTC cleared	321		—		321		(241		)	(80		)	—			—
Exchange-traded	76		—		76		—			—			—			76
Total derivatives	$	3,702	$	—	$	3,702	$	(2,988	)	$	(334	)	$	(215	)	$	165

	December 31, 2014
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets
							Financial Instruments (1)			Cash Collateral			Securities Collateral			Net Amount
	(in millions)
Derivatives:
OTC	$	3,612	$	—	$	3,612	$	(2,934	)	$	(228	)	$	(418	)	$	32
OTC cleared	304		—		304		(222		)	(82		)	—			—
Exchange-traded	61		—		61		—			—			—			61
Total derivatives	$	3,977	$	—	$	3,977	$	(3,156	)	$	(310	)	$	(418	)	$	93

⁽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:

	June 30, 2015
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Liabilities Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets
							Financial Instruments (1)			Cash Collateral		Securities Collateral			Net Amount
	(in millions)
Derivatives:
OTC	$	3,378	$	—	$	3,378	$	(2,747	)	$	—	$	(631	)	$	—
OTC cleared	241		—		241		(241		)	—		—			—
Total derivatives	3,619		—		3,619		(2,988		)	—		(631		)	—
Repurchase agreements	50		—		50		—			—		(50		)	—
Total	$	3,669	$	—	$	3,669	$	(2,988	)	$	—	$	(681	)	$	—

	December 31, 2014
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Liabilities Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets
							Financial Instruments (1)			Cash Collateral		Securities Collateral			Net Amount
	(in millions)
Derivatives:
OTC	$	3,589	$	—	$	3,589	$	(2,934	)	$	—	$	(655	)	$	—
OTC cleared	222		—		222		(222		)	—		—			—
Total derivatives	3,811		—		3,811		(3,156		)	—		(655		)	—
Repurchase agreements	50		—		50		—			—		(50		)	—
Total	$	3,861	$	—	$	3,861	$	(3,156	)	$	—	$	(705	)	$	—

⁽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.

XML

Fair Values of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2015

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 measured at fair value on a recurring basis:

	June 30, 2015
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Available-for-Sale securities: Fixed maturities:
Corporate debt securities	$	—	$	13,513	$	1,339	$	14,852
Residential mortgage backed securities	—		3,288		8		3,296
Commercial mortgage backed securities	—		2,161		34		2,195
State and municipal obligations	—		1,049		—		1,049
Asset backed securities	—		690		118		808
Foreign government bonds and obligations	—		239		—		239
U.S. government and agencies obligations	4		35		—		39
Total Available-for-Sale securities: Fixed maturities	4		20,975		1,499		22,478
Common stocks	3		4		—		7
Cash equivalents	50		163		—		213
Other assets:
Interest rate derivative contracts	—		1,574		—		1,574
Equity derivative contracts	226		1,836		—		2,062
Credit derivative contracts	—		9		—		9
Foreign exchange derivative contracts	—		42		—		42
Other derivative contracts	—		15		—		15
Total other assets	226		3,476		—		3,702
Separate account assets	—		79,326		—		79,326
Total assets at fair value	$	283	$	103,944	$	1,499	$	105,726
Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives	$	—	$	6	$	—	$	6
IUL embedded derivatives	—		—		292		292
GMWB and GMAB embedded derivatives	—		—		235		235		(1)
Total policyholder account balances, future policy benefits and claims	—		6		527		533		(2)
Other liabilities:
Interest rate derivative contracts	—		1,021		—		1,021
Equity derivative contracts	307		2,273		—		2,580
Foreign exchange derivative contracts	—		5		—		5
Other derivative contracts	—		13		—		13
Total other liabilities	307		3,312		—		3,619
Total liabilities at fair value	$	307	$	3,318	$	527	$	4,152

⁽¹⁾  The fair value of the GMWB and GMAB embedded derivatives included $541 millionof individual contracts in a liability position and $306 millionof individual contracts in an asset position.

⁽²⁾  The Company’s adjustment for nonperformance risk resulted in a $300 million cumulative decrease to the embedded derivatives.

	December 31, 2014
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Available-for-Sale securities: Fixed maturities:
Corporate debt securities	$	—	$	13,830	$	1,353	$	15,183
Residential mortgage backed securities	—		3,483		9		3,492
Commercial mortgage backed securities	—		2,138		90		2,228
State and municipal obligations	—		1,113		—		1,113
Asset backed securities	—		786		151		937
Foreign government bonds and obligations	—		251		—		251
U.S. government and agencies obligations	4		35		—		39
Total Available-for-Sale securities: Fixed maturities	4		21,636		1,603		23,243
Common stocks	3		3		1		7
Cash equivalents	1		235		—		236
Other assets:
Interest rate derivative contracts	—		1,955		—		1,955
Equity derivative contracts	282		1,711		—		1,993
Foreign exchange derivative contracts	—		29		—		29
Total other assets	282		3,695		—		3,977
Separate account assets	—		79,178		—		79,178
Total assets at fair value	$	290	$	104,747	$	1,604	$	106,641
Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives	$	—	$	6	$	—	$	6
IUL embedded derivatives	—		—		242		242
GMWB and GMAB embedded derivatives	—		—		479		479		(1)
Total policyholder account balances, future policy benefits and claims	—		6		721		727		(2)
Other liabilities:
Interest rate derivative contracts	—		1,136		—		1,136
Equity derivative contracts	376		2,286		—		2,662
Foreign exchange derivative contracts	—		2		—		2
Other derivative contracts	—		11		—		11
Total other liabilities	376		3,435		—		3,811
Total liabilities at fair value	$	376	$	3,441	$	721	$	4,538

⁽¹⁾  The fair value of the GMWB and GMAB embedded derivatives included $700 millionof individual contracts in a liability position and $221 millionof individual contracts in an asset position.

⁽²⁾  The Company’s adjustment for nonperformance risk resulted in a $311 million cumulative decrease to the embedded derivatives.

Summary of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis [Table Text Block]

	Available-for-Sale Securities: Fixed Maturities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Total
	(in millions)
Balance, April 1, 2015	$	1,360		$	39		$	20		$	119		$	1,538
Total losses included in:
Other comprehensive income	(19		)	—			—			—			(19		)
Purchases	36			—			31			1			68
Settlements	(38		)	—			(1		)	(2		)	(41		)
Transfers out of Level 3	—			(31		)	(16		)	—			(47		)
Balance, June 30, 2015	$	1,339		$	8		$	34		$	118		$	1,499
Changes in unrealized gains (losses) relating to assets held at June 30, 2015 included in:
Net investment income	$	—		$	—		$	—		$	—		$	—

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives			GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, April 1, 2015	$	270		$	827			$	1,097
Total gains included in:
Net income	—			(659		)	(1)	(659		)
Issues	26			64				90
Settlements	(4		)	3				(1		)
Balance, June 30, 2015	$	292		$	235			$	527
Changes in unrealized gains relating to liabilities held at June 30, 2015 included in:
Benefits, claims, losses and settlement expenses	$	—		$	(651	)		$	(651	)

⁽¹⁾  Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income.

	Available-for-Sale Securities: Fixed Maturities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Total			Common Stocks		Other Assets: Other Derivatives Contracts
	(in millions)
Balance, April 1, 2014	$	1,391		$	11		$	55		$	149		$	1,606		$	—	$	—
Total gains included in:
Other comprehensive income	10			—			—			1			11			—		—
Purchases	33			—			—			—			33			1		1
Settlements	(58		)	(1		)	—			(1		)	(60		)	—		—
Transfers out of Level 3	—			—			(40		)	—			(40		)	—		—
Balance, June 30, 2014	$	1,376		$	10		$	15		$	149		$	1,550		$	1	$	1
Changes in unrealized gains (losses) relating to assets held at June 30, 2014 included in:
Net investment income	$	—		$	—		$	—		$	—		$	—		$	—	$	—

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, April 1, 2014	$	154			$	(471	)		$	(317	)
Total losses included in:
Net income	8			(1)	68			(2)	76
Issues	24				60				84
Settlements	(2		)		(4		)		(6		)
Balance, June 30, 2014	$	184			$	(347	)		$	(163	)
Changes in unrealized losses relating to liabilities held at June 30, 2014 included in:
Benefits, claims, losses and settlement expenses	$	—			$	67			$	67
Interest credited to fixed accounts	8				—				8

⁽¹⁾  Included in interest credited to fixed accounts in the Consolidated Statements of Income.

⁽²⁾  Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income.

	Available-for-Sale Securities: Fixed Maturities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Total			Common Stocks
	(in millions)
Balance, January 1, 2015	$	1,353		$	9		$	90		$	151		$	1,603		$	1
Total losses included in:
Other comprehensive income	(7		)	—			—			—			(7		)	(1		)
Purchases	51			31			31			1			114			—
Settlements	(58		)	(1		)	(2		)	(2		)	(63		)	—
Transfers into Level 3	—			—			6			—			6			—
Transfers out of Level 3	—			(31		)	(91		)	(32		)	(154		)	—
Balance, June 30, 2015	$	1,339		$	8		$	34		$	118		$	1,499		$	—
Changes in unrealized gains (losses) relating to assets held at June 30, 2015 included in:
Net investment income	$	—		$	—		$	—		$	—		$	—		$	—

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, January 1, 2015	$	242			$	479			$	721
Total (gains) losses included in:
Net income	14			(1)	(379		)	(2)	(365		)
Issues	45				128				173
Settlements	(9		)		7				(2		)
Balance, June 30, 2015	$	292			$	235			$	527
Changes in unrealized (gains) losses relating to liabilities held at June 30, 2015 included in:
Benefits, claims, losses and settlement expenses	$	—			$	(373	)		$	(373	)
Interest credited to fixed accounts	14				—				14

⁽¹⁾  Included in interest credited to fixed accounts in the Consolidated Statements of Income.

⁽²⁾  Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income.

	Available-for-Sale Securities: Fixed Maturities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Total			Common Stocks		Other Assets: Other Derivatives Contracts
	(in millions)
Balance, January 1, 2014	$	1,516		$	58		$	30		$	218		$	1,822		$	—	$	—
Total gains included in:
Other comprehensive income	15			—			—			1			16			—		—
Purchases	57			11			39			—			107			1		1
Sales	(11		)	—			—			—			(11		)	—		—
Settlements	(201		)	(1		)	—			(1		)	(203		)	—		—
Transfers out of Level 3	—			(58		)	(54		)	(69		)	(181		)	—		—
Balance, June 30, 2014	$	1,376		$	10		$	15		$	149		$	1,550		$	1	$	1
Changes in unrealized gains (losses) relating to assets held at June 30, 2014 included in:
Net investment income	$	—		$	—		$	—		$	—		$	—		$	—	$	—

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, January 1, 2014	$	125			$	(575	)		$	(450	)
Total losses included in:
Net income	14			(1)	120			(2)	134
Issues	48				119				167
Settlements	(3		)		(11		)		(14		)
Balance, June 30, 2014	$	184			$	(347	)		$	(163	)
Changes in unrealized losses relating to liabilities held at June 30, 2014 included in:
Benefits, claims, losses and settlement expenses	$	—			$	119			$	119
Interest credited to fixed accounts	14				—				14

⁽¹⁾  Included in interest credited to fixed accounts in the Consolidated Statements of Income.

⁽²⁾  Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income.

Significant Unobservable Inputs Used in the Fair Value Measurements [Table Text Block]

The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities:

	June 30, 2015
	Fair Value		Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	1,324	Discounted cash flow	Yield/spread to U.S. Treasuries	1.1	%	-	3.5%	1.5%
IUL embedded derivatives	$	292	Discounted cash flow	Nonperformance risk (1)	67			bps
GMWB and GMAB embedded derivatives	$	235	Discounted cash flow	Utilization of guaranteed withdrawals (2)	0.0	%	-	51.1%
				Surrender rate	0.0	%	-	59.1%
				Market volatility (3)	5.3	%	-	21.0%
				Nonperformance risk (1)	67			bps
				Elective contractholder strategy allocations (4)	0.0	%	-	3.0%

	December 31, 2014
	Fair Value		Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	1,311	Discounted cash flow	Yield/spread to U.S. Treasuries	1.0	%	-	3.9%	1.5%
IUL embedded derivatives	$	242	Discounted cash flow	Nonperformance risk (1)	65			bps
GMWB and GMAB embedded derivatives	$	479	Discounted cash flow	Utilization of guaranteed withdrawals (2)	0.0	%	-	51.1%
				Surrender rate	0.0	%	-	59.1%
				Market volatility (3)	5.2	%	-	20.9%
				Nonperformance risk (1)	65			bps
				Elective contractholder strategy allocations (4)	0.0	%	-	3.0%

^. 

⁽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.

⁽⁴⁾  The elective allocation represents the percentage of contractholders that are assumed to electively switch their investment allocation to a different allocation model.

Schedule of Carrying Value and 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. All other financial instruments that are reported at fair value have been included above in the tables with balances of assets and liabilities measured at fair value on a recurring basis.

	June 30, 2015
	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total
	(in millions)
Financial Assets
Mortgage loans, net	$	3,233	$	—	$	—	$	3,315	$	3,315
Policy loans	816		—		—		802		802
Other investments	450		—		413		38		451
Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	12,016	$	—	$	—	$	12,803	$	12,803
Short-term borrowings	200		—		200		—		200
Other liabilities	108		—		—		104		104
Separate account liabilities	389		—		389		—		389

	December 31, 2014
	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total
	(in millions)
Financial Assets
Mortgage loans, net	$	3,298	$	—	$	—	$	3,413	$	3,413
Policy loans	805		—		—		793		793
Other investments	463		—		403		55		458
Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	12,979	$	—	$	—	$	13,996	$	13,996
Short-term borrowings	200		—		200		—		200
Other liabilities	124		—		—		121		121
Separate account liabilities	400		—		400		—		400

XML

Fair Values of Assets and Liabilities (Unobservable inputs) (Details) - Discounted cash flow technique [Member] - USD ($) $ in Millions		6 Months Ended	12 Months Ended
		Jun. 30, 2015	Dec. 31, 2014
IUL embedded derivatives [Member]
Fair values of assets and liabilities
IUL and GMWB and GMAB embedded derivatives, Fair Value		$ 292	$ 242
Nonperformance risk (as a percent)	[1]	0.67%	0.65%
GMWB and GMAB embedded derivatives [Member]
Fair values of assets and liabilities
IUL and GMWB and GMAB embedded derivatives, Fair Value		$ 235	$ 479
Nonperformance risk (as a percent)	[1]	0.67%	0.65%
GMWB and GMAB embedded derivatives [Member] | Minimum [Member]
Fair values of assets and liabilities
Utilization of guaranteed withdrawals (as a percent)	[2]	0.00%	0.00%
Surrender rate (as a percent)		0.00%	0.00%
Market volatility rate (as a percent)	[3]	5.30%	5.20%
Elective contractholder strategy allocations (as a percent)	[4]	0.00%	0.00%
GMWB and GMAB embedded derivatives [Member] | Maximum [Member]
Fair values of assets and liabilities
Utilization of guaranteed withdrawals (as a percent)	[2]	51.10%	51.10%
Surrender rate (as a percent)		59.10%	59.10%
Market volatility rate (as a percent)	[3]	21.00%	20.90%
Elective contractholder strategy allocations (as a percent)	[4]	3.00%	3.00%
Corporate debt securities (private placement) [Member]
Fair values of assets and liabilities
Corporate debt securities (private placement) Fair Value		$ 1,324	$ 1,311
Corporate debt securities (private placement) [Member] | Minimum [Member]
Fair values of assets and liabilities
Yield/spread to U.S. Treasuries (as a percent)		1.10%	1.00%
Corporate debt securities (private placement) [Member] | Maximum [Member]
Fair values of assets and liabilities
Yield/spread to U.S. Treasuries (as a percent)		3.50%	3.90%
Corporate debt securities (private placement) [Member] | Weighted average [Member]
Fair values of assets and liabilities
Yield/spread to U.S. Treasuries (as a percent)		1.50%	1.50%

[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.

[4] The elective allocation represents the percentage of contractholders that are assumed to electively switch their investment allocation to a different allocation model.

XML

Financing Receivables (Credit Quality Information Tables) (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Commercial mortgage loans [Line Items]
Total loans, gross	$ 3,694	$ 3,772
Less: allowance for loan losses	27	28	$ 26	$ 28
Commercial mortgage loans [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	2,616	2,632
Less: allowance for loan losses	21	23
Total loans, net	$ 2,595	$ 2,609
Percentage of gross commercial mortgage loans	100.00%	100.00%
Commercial mortgage loans [Member] | Retail [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 929	$ 956
Percentage of gross commercial mortgage loans	35.00%	36.00%
Commercial mortgage loans [Member] | Office [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 517	$ 535
Percentage of gross commercial mortgage loans	20.00%	20.00%
Commercial mortgage loans [Member] | Apartments [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 473	$ 473
Percentage of gross commercial mortgage loans	18.00%	18.00%
Commercial mortgage loans [Member] | Industrial [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 442	$ 447
Percentage of gross commercial mortgage loans	17.00%	17.00%
Commercial mortgage loans [Member] | Mixed use [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 45	$ 46
Percentage of gross commercial mortgage loans	2.00%	2.00%
Commercial mortgage loans [Member] | Hotel [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 37	$ 32
Percentage of gross commercial mortgage loans	1.00%	1.00%
Commercial mortgage loans [Member] | Other [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 173	$ 143
Percentage of gross commercial mortgage loans	7.00%	6.00%
Commercial mortgage loans [Member] | Pacific [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 712	$ 673
Percentage of gross commercial mortgage loans	27.00%	26.00%
Commercial mortgage loans [Member] | South Atlantic [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 707	$ 710
Percentage of gross commercial mortgage loans	27.00%	27.00%
Commercial mortgage loans [Member] | Mountain [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 245	$ 236
Percentage of gross commercial mortgage loans	9.00%	9.00%
Commercial mortgage loans [Member] | West North Central [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 224	$ 223
Percentage of gross commercial mortgage loans	9.00%	8.00%
Commercial mortgage loans [Member] | East North Central [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 207	$ 237
Percentage of gross commercial mortgage loans	8.00%	9.00%
Commercial mortgage loans [Member] | Middle Atlantic [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 196	$ 210
Percentage of gross commercial mortgage loans	7.00%	8.00%
Commercial mortgage loans [Member] | West South Central [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 145	$ 151
Percentage of gross commercial mortgage loans	6.00%	6.00%
Commercial mortgage loans [Member] | New England [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 121	$ 130
Percentage of gross commercial mortgage loans	5.00%	5.00%
Commercial mortgage loans [Member] | East South Central [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 59	$ 62
Percentage of gross commercial mortgage loans	2.00%	2.00%

XML

Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Gross Fair Value of Derivative Instruments, Including Embedded Derivatives [Table Text Block]

The Company currently uses derivatives as economic hedges and accounting hedges. The following table presents the balance sheet location and the gross fair value of derivative instruments, including embedded derivatives:

		Assets					Liabilities
Derivatives not designated as hedging instruments	Balance Sheet Location	June 30, 2015		December 31, 2014		Balance Sheet Location	June 30, 2015		December 31, 2014
		(in millions)					(in millions)
GMWB and GMAB
Interest rate contracts	Other assets	$	1,574	$	1,955	Other liabilities	$	1,021	$	1,136
Equity contracts	Other assets	2,036		1,954		Other liabilities	2,576		2,650
Credit contracts	Other assets	9		—		Other liabilities	—		—
Foreign exchange contracts	Other assets	42		29		Other liabilities	5		2
Embedded derivatives (1)	N/A	—		—		Policyholder account balances, future policy benefits and claims (2)	235		479
Total GMWB and GMAB		3,661		3,938			3,837		4,267
Other derivatives:
Equity
EIA embedded derivatives	N/A	—		—		Policyholder account balances, future policy benefits and claims	6		6
IUL	Other assets	26		39		Other liabilities	4		12
IUL embedded derivatives	N/A	—		—		Policyholder account balances, future policy benefits and claims	292		242
Other
Macro hedge program	Other assets	15		—		Other liabilities	13		11
Total other derivatives		41		39			315		271
Total derivatives		$	3,702	$	3,977		$	4,152	$	4,538

N/A Not applicable.

⁽¹⁾  The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.

⁽²⁾  The fair value of the GMWB and GMAB embedded derivatives at June 30, 2015 included $541 million of individual contracts in a liability position and $306 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives at December 31, 2014 included $700 million of individual contracts in a liability position and $221 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 on the Consolidated Statements of Income:

		Amount of Gain (Loss) on Derivatives Recognized in Income
Derivatives not designated as hedging instruments	Location of Gain (Loss) on Derivatives Recognized in Income	Three Months Ended June 30,						Six Months Ended   June 30,
		2015			2014			2015			2014
		(in millions)
GMWB and GMAB
Interest rate contracts	Benefits, claims, losses and settlement expenses	$	(562	)	$	245		$	(176	)	$	509
Equity contracts	Benefits, claims, losses and settlement expenses	(137		)	(197		)	(259		)	(387		)
Credit contracts	Benefits, claims, losses and settlement expenses	14			(12		)	5			(22		)
Foreign exchange contracts	Benefits, claims, losses and settlement expenses	(2		)	—			(8		)	(1		)
Embedded derivatives (1)	Benefits, claims, losses and settlement expenses	592			(124		)	244			(228		)
Total GMWB and GMAB		(95		)	(88		)	(194		)	(129		)
Other derivatives:
Interest rate
Tax hedge	Net investment income	—			—			—			3
Equity
EIA	Interest credited to fixed accounts	—			1			—			1
EIA embedded derivatives	Interest credited to fixed accounts	—			(1		)	—			(1		)
IUL	Interest credited to fixed accounts	(2		)	6			(1		)	11
IUL embedded derivatives	Interest credited to fixed accounts	4			(5		)	(5		)	(11		)
Other
Macro hedge program	Benefits, claims, losses and settlement expenses	6			(10		)	—			3
Total other derivatives		8			(9		)	(6		)	6
Total derivatives		$	(87	)	$	(97	)	$	(200	)	$	(123	)

⁽¹⁾  The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.

Schedule of Payments to Make and Receive for Options [Table Text Block]

The deferred premium associated with certain of the above options is paid or received semi-annually over the life of the option contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options:

	Premiums Payable		Premiums Receivable
	(in millions)
2015 (1)	$	185	$	37
2016	326		75
2017	257		75
2018	196		124
2019	241		85
2020-2026	525		204
Total	$	1,730	$	600

⁽¹⁾  2015 amounts represent the amounts payable and receivable for the period from July 1, 2015 to December 31, 2015.

Summary of Unrealized Derivative Losses Included in AOCI Related to Cash Flow Hedges [Table Text Block]

The following table presents a rollforward of unrealized derivative losses related to cash flow hedges included in AOCI:

	2015			2014
	(in millions)
Net unrealized derivative losses at January 1	$	(12	)	$	(17	)
Reclassification of realized losses (1)	3			3
Income tax provision	(1		)	(1		)
Net unrealized derivative losses at June 30	$	(10	)	$	(15	)

⁽¹⁾  Loss reclassified from AOCI to net investment income on the Consolidated Statements of Income.

XML

Shareholder's Equity (Tables)

6 Months Ended

Jun. 30, 2015

Stockholders' Equity Note [Abstract]

Schedule of Information Related to Amounts Reclassified from AOCI [Table Text Block]

The following table provides information related to amounts reclassified from AOCI:

		Three Months Ended June 30,						Six Months Ended   June 30,
AOCI Reclassification	Location of (Gain) Loss Recognized in Income	2015			2014			2015			2014
		(in millions)
Net unrealized gains on Available-for-Sale securities	Net realized investment gains	$	(5	)	$	(1	)	$	(17	)	$	(5	)
Tax expense	Income tax provision	2			1			6			2
Net of tax		$	(3	)	$	—		$	(11	)	$	(3	)
Losses on cash flow hedges:
Swaptions	Net investment income	$	1		$	1		$	3		$	3
Tax benefit	Income tax provision	—			—			(1		)	(1		)
Net of tax		$	1		$	1		$	2		$	2

XML

Basis of Presentation

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

RiverSource Life Insurance Company is a stock life insurance company with two wholly owned subsidiaries, RiverSource Life Insurance Co. of New York and RiverSource Tax Advantaged Investments, Inc. (“RTA”). RiverSource Life Insurance Company is a wholly owned subsidiary of Ameriprise Financial, Inc. (“Ameriprise Financial”).

The accompanying Consolidated Financial Statements include the accounts of RiverSource Life Insurance Company and companies in which it directly or indirectly has a controlling financial interest (collectively, the “Company”). All intercompany transactions and balances have been eliminated in consolidation.

The interim financial information in this report has not been audited. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial position and results of operations for the interim periods have been made. All adjustments made were of a normal recurring nature.

The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Results of operations reported for interim periods are not necessarily indicative of results for the entire year. These Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 24, 2015.

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.

XML

Basis of Presentation (Details)	Jun. 30, 2015 item
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of wholly owned subsidiaries	2

XML

Investments (AFS contractual maturity) (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Amortized Cost
Due within one year	$ 1,012
Due after one year through five years	5,203
Due after five years through 10 years	5,069
Due after 10 years	3,635
Total having single maturity dates	14,919
Amortized cost	21,025	$ 21,356
Fair Value
Due within one year	1,036
Due after one year through five years	5,652
Due after five years through 10 years	5,212
Due after 10 years	4,279
Total having single maturity dates	16,179
Fair value	22,485	23,250
Residential mortgage backed securities [Member]
Amortized Cost
Without single maturity dates	3,219
Amortized cost	3,219	3,374
Fair Value
Without single maturity dates	3,296
Fair value	3,296	3,492
Commercial mortgage backed securities [Member]
Amortized Cost
Without single maturity dates	2,115
Amortized cost	2,115	2,116
Fair Value
Without single maturity dates	2,195
Fair value	2,195	2,228
Asset backed securities [Member]
Amortized Cost
Without single maturity dates	770
Amortized cost	770	882
Fair Value
Without single maturity dates	808
Fair value	808	937
Common stocks [Member]
Amortized Cost
Without single maturity dates	2
Amortized cost	2	2
Fair Value
Without single maturity dates	7
Fair value	$ 7	$ 7

XML

Fair Values of Assets and Liabilities (Assets & liabilities reported at FV) (Details) - USD ($) $ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2015		Dec. 31, 2014
Assets and liabilities measured at fair value
Cumulative change in embedded derivatives due to nonperformance	$ 300		$ 311
Derivative asset, fair value, gross asset	3,702		3,977
Assets
Available-for-sale securities: fixed maturities	22,478		23,243
Common stocks	7		7
Separate account assets	79,326		79,178
GMWB and GMAB embedded derivatives [Member] | PAB, FPB and claims [Member] | GMWB and GMAB [Member]
Assets and liabilities measured at fair value
Derivative liability, fair value, gross liability	541		700
Derivative asset, fair value, gross asset	306		221
Recurring basis [Member] | Level 1 [Member]
Assets
Available-for-sale securities: fixed maturities	4		4
Common stocks	3		3
Cash equivalents	50		1
Other assets	226		282
Total assets at fair value	283		290
Liabilities
Other liabilities	307		376
Total liabilities at fair value	307		376
Recurring basis [Member] | Level 1 [Member] | Equity derivative contracts [Member]
Assets
Other assets	226		282
Liabilities
Other liabilities	307		376
Recurring basis [Member] | Level 1 [Member] | U.S. government and agencies obligations [Member]
Assets
Available-for-sale securities: fixed maturities	4		4
Recurring basis [Member] | Level 2 [Member]
Assets
Available-for-sale securities: fixed maturities	20,975		21,636
Common stocks	4		3
Cash equivalents	163		235
Other assets	3,476		3,695
Separate account assets	79,326		79,178
Total assets at fair value	103,944		104,747
Liabilities
Policyholder account balances, future policy benefits and claims	6		6
Other liabilities	3,312		3,435
Total liabilities at fair value	3,318		3,441
Recurring basis [Member] | Level 2 [Member] | Interest rate derivative contracts [Member]
Assets
Other assets	1,574		1,955
Liabilities
Other liabilities	1,021		1,136
Recurring basis [Member] | Level 2 [Member] | Equity derivative contracts [Member]
Assets
Other assets	1,836		1,711
Liabilities
Other liabilities	2,273		2,286
Recurring basis [Member] | Level 2 [Member] | Credit derivative contracts [Member]
Assets
Other assets	9
Recurring basis [Member] | Level 2 [Member] | Foreign exchange derivatives contracts [Member]
Assets
Other assets	42		29
Liabilities
Other liabilities	5		2
Recurring basis [Member] | Level 2 [Member] | Other derivative contracts [Member]
Assets
Other assets	15
Liabilities
Other liabilities	13		11
Recurring basis [Member] | Level 2 [Member] | EIA embedded derivatives [Member]
Liabilities
Policyholder account balances, future policy benefits and claims	6		6
Recurring basis [Member] | Level 2 [Member] | Corporate debt securities [Member]
Assets
Available-for-sale securities: fixed maturities	13,513		13,830
Recurring basis [Member] | Level 2 [Member] | Residential mortgage backed securities [Member]
Assets
Available-for-sale securities: fixed maturities	3,288		3,483
Recurring basis [Member] | Level 2 [Member] | Commercial mortgage backed securities [Member]
Assets
Available-for-sale securities: fixed maturities	2,161		2,138
Recurring basis [Member] | Level 2 [Member] | State and municipal obligations [Member]
Assets
Available-for-sale securities: fixed maturities	1,049		1,113
Recurring basis [Member] | Level 2 [Member] | Asset backed securities [Member]
Assets
Available-for-sale securities: fixed maturities	690		786
Recurring basis [Member] | Level 2 [Member] | Foreign government bonds and obligations [Member]
Assets
Available-for-sale securities: fixed maturities	239		251
Recurring basis [Member] | Level 2 [Member] | U.S. government and agencies obligations [Member]
Assets
Available-for-sale securities: fixed maturities	35		35
Recurring basis [Member] | Level 3 [Member]
Assets
Available-for-sale securities: fixed maturities	1,499		1,603
Common stocks			1
Total assets at fair value	1,499		1,604
Liabilities
Policyholder account balances, future policy benefits and claims	527		721
Total liabilities at fair value	527		721
Recurring basis [Member] | Level 3 [Member] | IUL embedded derivatives [Member]
Liabilities
Policyholder account balances, future policy benefits and claims	292		242
Recurring basis [Member] | Level 3 [Member] | GMWB and GMAB embedded derivatives [Member]
Liabilities
Policyholder account balances, future policy benefits and claims	235		479
Recurring basis [Member] | Level 3 [Member] | Corporate debt securities [Member]
Assets
Available-for-sale securities: fixed maturities	1,339		1,353
Recurring basis [Member] | Level 3 [Member] | Residential mortgage backed securities [Member]
Assets
Available-for-sale securities: fixed maturities	8		9
Recurring basis [Member] | Level 3 [Member] | Commercial mortgage backed securities [Member]
Assets
Available-for-sale securities: fixed maturities	34		90
Recurring basis [Member] | Level 3 [Member] | Asset backed securities [Member]
Assets
Available-for-sale securities: fixed maturities	118		151
Recurring basis [Member] | Total [Member]
Assets
Available-for-sale securities: fixed maturities	22,478		23,243
Common stocks	7		7
Cash equivalents	213		236
Other assets	3,702		3,977
Separate account assets	79,326		79,178
Total assets at fair value	105,726		106,641
Liabilities
Policyholder account balances, future policy benefits and claims	533	[1]	727	[2]
Other liabilities	3,619		3,811
Total liabilities at fair value	4,152		4,538
Recurring basis [Member] | Total [Member] | Interest rate derivative contracts [Member]
Assets
Other assets	1,574		1,955
Liabilities
Other liabilities	1,021		1,136
Recurring basis [Member] | Total [Member] | Equity derivative contracts [Member]
Assets
Other assets	2,062		1,993
Liabilities
Other liabilities	2,580		2,662
Recurring basis [Member] | Total [Member] | Credit derivative contracts [Member]
Assets
Other assets	9
Recurring basis [Member] | Total [Member] | Foreign exchange derivatives contracts [Member]
Assets
Other assets	42		29
Liabilities
Other liabilities	5		2
Recurring basis [Member] | Total [Member] | Other derivative contracts [Member]
Assets
Other assets	15
Liabilities
Other liabilities	13		11
Recurring basis [Member] | Total [Member] | EIA embedded derivatives [Member]
Liabilities
Policyholder account balances, future policy benefits and claims	6		6
Recurring basis [Member] | Total [Member] | IUL embedded derivatives [Member]
Liabilities
Policyholder account balances, future policy benefits and claims	292		242
Recurring basis [Member] | Total [Member] | GMWB and GMAB embedded derivatives [Member]
Liabilities
Policyholder account balances, future policy benefits and claims	235	[3]	479	[4]
Recurring basis [Member] | Total [Member] | Corporate debt securities [Member]
Assets
Available-for-sale securities: fixed maturities	14,852		15,183
Recurring basis [Member] | Total [Member] | Residential mortgage backed securities [Member]
Assets
Available-for-sale securities: fixed maturities	3,296		3,492
Recurring basis [Member] | Total [Member] | Commercial mortgage backed securities [Member]
Assets
Available-for-sale securities: fixed maturities	2,195		2,228
Recurring basis [Member] | Total [Member] | State and municipal obligations [Member]
Assets
Available-for-sale securities: fixed maturities	1,049		1,113
Recurring basis [Member] | Total [Member] | Asset backed securities [Member]
Assets
Available-for-sale securities: fixed maturities	808		937
Recurring basis [Member] | Total [Member] | Foreign government bonds and obligations [Member]
Assets
Available-for-sale securities: fixed maturities	239		251
Recurring basis [Member] | Total [Member] | U.S. government and agencies obligations [Member]
Assets
Available-for-sale securities: fixed maturities	$ 39		$ 39

[1] The Company’s adjustment for nonperformance risk resulted in a $300 million cumulative decrease to the embedded derivatives.

[2] The Company’s adjustment for nonperformance risk resulted in a $311 million cumulative decrease to the embedded derivatives.

[3] The fair value of the GMWB and GMAB embedded derivatives included $541 million of individual contracts in a liability position and $306 million of individual contracts in an asset position.

[4] The fair value of the GMWB and GMAB embedded derivatives included $700 million of individual contracts in a liability position and $221 million of individual contracts in an asset position.

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Available-for-Sale:
Fixed maturities, at fair value (amortized cost: 2015, $21,023; 2014, $21,354)	$ 22,478	$ 23,243
Common stocks, at fair value (cost: 2015 and 2014, $2)	7	7
Mortgage loans, at amortized cost (less allowance for loan losses: 2015, $21; 2014, $23)	3,233	3,298
Policy loans	816	805
Other Investments	962	987
Total investments	27,496	28,340
Cash and cash equivalents	239	307
Reinsurance recoverables	2,346	2,268
Other receivables	183	206
Accrued investment income	247	255
Deferred acquisition costs	2,624	2,576
Other assets	4,467	5,006
Separate account assets	79,326	79,178
Total assets	116,928	118,136
Liabilities:
Policyholder account balances, future policy benefits and claims	28,744	29,805
Short-term borrowings	200	200
Other liabilities	4,561	4,650
Separate account liabilities	79,326	79,178
Total liabilities	112,831	113,833
Shareholder's equity:
Common stock, $30 par value; 100,000 shares authorized, issued and outstanding	3	3
Additional paid-in capital	2,465	2,464
Retained earnings	1,048	1,107
Accumulated other comprehensive income, net of tax	581	729
Total shareholder's equity	4,097	4,303
Total liabilities and shareholder's equity	$ 116,928	$ 118,136

XML

Financing Receivables (Troubled Debt Restructurings) (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Receivables [Abstract]
Commitments to lend additional funds to borrowers for restructured loans	$ 0	$ 0

XML

CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY - USD ($) $ in Millions	Total	Common shares [Member]	Additional paid-in capital [Member]	Retained earnings [Member]	Accumulated other comprehensive income [Member]
Beginning balance at Dec. 31, 2013	$ 4,158	$ 3	$ 2,463	$ 1,042	$ 650
Comprehensive income:
Net income	541			541
Other comprehensive income (loss), net of tax	254				254
Total comprehensive income	795
Tax adjustment on share-based incentive compensation plan	1		1
Cash dividends to Ameriprise Financial, Inc.	(300)			(300)
Ending balance at Jun. 30, 2014	4,654	3	2,464	1,283	904
Beginning balance at Dec. 31, 2014	4,303	3	2,464	1,107	729
Comprehensive income:
Net income	466			466
Other comprehensive income (loss), net of tax	(148)				(148)
Total comprehensive income	318
Tax adjustment on share-based incentive compensation plan	1		1
Cash dividends to Ameriprise Financial, Inc.	(525)			(525)
Ending balance at Jun. 30, 2015	$ 4,097	$ 3	$ 2,465	$ 1,048	$ 581

XML

Offsetting Assets and Liabilities (Liabilities) (Details) - USD ($) $ in Millions		Jun. 30, 2015	Dec. 31, 2014
Repurchase agreements
Gross amounts of recognized liabilities		$ 50	$ 50
Gross Amounts Not Offset in the Consolidated Balance Sheets
Securities collateral		(50)	(50)
Net amount		0	0
Total
Gross amounts of recognized liabilities		3,669	3,861
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial instruments	[1]	(2,988)	(3,156)
Cash collateral		0	0
Securities collateral		(681)	(705)
Net amount		0	0
OTC derivatives [Member]
Derivatives
Gross amounts of recognized liabilities		3,378	3,589
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial instruments	[1]	(2,747)	(2,934)
Securities collateral		(631)	(655)
Net amount		0	0
OTC cleared derivatives [Member]
Derivatives
Gross amounts of recognized liabilities		241	222
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial instruments	[1]	(241)	(222)
Net amount		0	0
Total OTC derivatives [Member]
Derivatives
Gross amounts of recognized liabilities		3,619	3,811
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial instruments	[1]	(2,988)	(3,156)
Cash collateral		0	0
Securities collateral		(631)	(655)
Net amount		$ 0	$ 0

[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.

XML

Investments (Rating info) (Details) $ in Millions	Jun. 30, 2015 USD ($) item	Dec. 31, 2014 USD ($) item
Investments
Amortized cost	$ 21,025	$ 21,356
Fair value	$ 22,485	$ 23,250
Percentage of securities rated AAA that were GNMA, FNMA and FHLMC	47.00%	46.00%
Number of holdings of other than GNMA, FNMA and FHLMC having greater than 10% of total equity | item	0	0
AAA [Member]
Investments
Amortized cost	$ 4,850	$ 5,111
Fair value	$ 5,030	$ 5,374
Percent of total fair value	22.00%	23.00%
AA [Member]
Investments
Amortized cost	$ 953	$ 967
Fair value	$ 1,104	$ 1,158
Percent of total fair value	5.00%	5.00%
A [Member]
Investments
Amortized cost	$ 4,076	$ 4,452
Fair value	$ 4,537	$ 5,062
Percent of total fair value	20.00%	22.00%
BBB [Member]
Investments
Amortized cost	$ 9,628	$ 9,328
Fair value	$ 10,300	$ 10,165
Percent of total fair value	46.00%	44.00%
Below investment grade [Member]
Investments
Amortized cost	$ 1,516	$ 1,496
Fair value	$ 1,507	$ 1,484
Percent of total fair value	7.00%	6.00%
Total fixed maturities [Member]
Investments
Amortized cost	$ 21,023	$ 21,354
Fair value	$ 22,478	$ 23,243
Percent of total fair value	100.00%	100.00%
Fixed maturity securities as percentage of the entity's total investments	82.00%	82.00%
Amount of securities internally rated	$ 1,100	$ 1,200

XML

Derivatives and Hedging Activities (Credit Risk) (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Derivatives liabilities, credit risk related contingent features
Aggregate fair value of derivative contracts in a net liability position containing such credit contingent instruments	$ 418	$ 367
Aggregate fair value of assets posted as collateral for such instruments	418	367
Aggregate fair value of additional assets required to be posted or needed to settle the instruments	$ 0	$ 0

XML

Guarantees and Contingencies

6 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Guarantees and Contingencies

Guarantees and Contingencies

Guarantees

The Company is required by law to be a member of the guaranty fund association in every state where it is licensed to do business. In the event of insolvency of one or more unaffiliated insurance companies, the Company could be adversely affected by the requirement to pay assessments to the guaranty fund associations.

The Company projects its cost of future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and Health Insurance Guaranty Associations (“NOLHGA”) and the amount of its premiums written relative to the industry-wide premium in each state. The Company accrues the estimated cost of future guaranty fund assessments when it is considered probable that an assessment will be imposed, the event obligating the Company to pay the assessment has occurred and the amount of the assessment can be reasonably estimated.

The Company has a liability for estimated guaranty fund assessments and a related premium tax asset. At both June 30, 2015 and December 31, 2014, the estimated liability was $14 million and the related premium tax asset was $12 million. The expected period over which guaranty fund assessments will be made and the related tax credits recovered is not known.

Contingencies

Insurance companies have been the subject of increasing regulatory, legislative and judicial scrutiny. Numerous state and federal regulatory agencies have commenced examinations and other inquiries of insurance companies regarding sales and marketing practices (including sales to older consumers and disclosure practices), claims handling, and unclaimed property and escheatment practices and procedures. With regard to an industry-wide investigation of unclaimed property and escheatment practices and procedures, the Company is responding to regulatory audits, market conduct examinations and other inquiries (including a multistate insurance department examination and a market conduct examination by the State of Minnesota). The Company has cooperated and will continue to cooperate with the applicable regulators.

The Company is involved in the normal course of business in a number of other legal and arbitration proceedings concerning matters arising in connection with the conduct of its business activities. The Company believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory investigation, examination or proceeding that is likely to have a material adverse effect on its consolidated financial condition, results of operations or liquidity.

Notwithstanding the foregoing, it is possible that the outcome of any current or future legal, arbitration or regulatory proceeding could have a material impact on results of operations in any particular reporting period as the proceedings are resolved.

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 insurance industry generally.

XML

Investments (EITF info) (Details) $ in Millions	Jun. 30, 2015 USD ($) item	Dec. 31, 2014 USD ($) item
Number of Securities
Less than 12 months | item	258	142
12 months or more | item	90	123
Total | item	348	265
Fair Value
Less than 12 months	$ 3,471	$ 1,378
12 months or more	904	1,615
Total	4,375	2,993
Unrealized Losses
Less than 12 months	(88)	(39)
12 months or more	(74)	(82)
Total	$ (162)	$ (121)
Corporate debt securities [Member]
Number of Securities
Less than 12 months | item	164	106
12 months or more | item	15	40
Total | item	179	146
Fair Value
Less than 12 months	$ 2,269	$ 1,093
12 months or more	156	689
Total	2,425	1,782
Unrealized Losses
Less than 12 months	(67)	(36)
12 months or more	(9)	(18)
Total	$ (76)	$ (54)
Residential mortgage backed securities [Member]
Number of Securities
Less than 12 months | item	30	17
12 months or more | item	55	55
Total | item	85	72
Fair Value
Less than 12 months	$ 522	$ 138
12 months or more	562	670
Total	1,084	808
Unrealized Losses
Less than 12 months	(8)	(2)
12 months or more	(31)	(30)
Total	$ (39)	$ (32)
Commercial mortgage backed securities [Member]
Number of Securities
Less than 12 months | item	41	9
12 months or more | item	3	9
Total | item	44	18
Fair Value
Less than 12 months	$ 507	$ 80
12 months or more	49	95
Total	556	175
Unrealized Losses
Less than 12 months	(9)
12 months or more	(1)	(3)
Total	$ (10)	$ (3)
State and municipal obligations [Member]
Number of Securities
Less than 12 months | item	10	1
12 months or more | item	2	2
Total | item	12	3
Fair Value
Less than 12 months	$ 34	$ 5
12 months or more	100	102
Total	134	107
Unrealized Losses
Less than 12 months	(2)
12 months or more	(27)	(25)
Total	$ (29)	$ (25)
Asset backed securities [Member]
Number of Securities
Less than 12 months | item	10	5
12 months or more | item	2	3
Total | item	12	8
Fair Value
Less than 12 months	$ 132	$ 52
12 months or more	13	32
Total	145	84
Unrealized Losses
Less than 12 months	(2)
12 months or more		(1)
Total	$ (2)	$ (1)
Foreign government bonds and obligations [Member]
Number of Securities
Less than 12 months | item	3	4
12 months or more | item	13	14
Total | item	16	18
Fair Value
Less than 12 months	$ 7	$ 10
12 months or more	24	27
Total	31	37
Unrealized Losses
Less than 12 months		(1)
12 months or more	(6)	(5)
Total	$ (6)	$ (6)

XML

Financing Receivables (Tables)

6 Months Ended

Jun. 30, 2015

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 commercial mortgage loans and syndicated loans for the six months ended and the ending balance of the allowance for loan losses by impairment method:

	June 30,
	2015			2014
	(in millions)
Beginning balance	$	28		$	28
Charge-offs	(2		)	(2		)
Provisions	1			—
Ending balance	$	27		$	26
Individually evaluated for impairment	$	6		$	8
Collectively evaluated for impairment	21			18

Schedule of Recorded Investment in Financing Receivables by Impairment Method [Table Text Block]

The recorded investment in commercial and residential mortgage loans and syndicated loans by impairment method was as follows:

	June 30, 2015		December 31, 2014
	(in millions)
Individually evaluated for impairment	$	33	$	32
Collectively evaluated for impairment	3,661		3,740
Total	$	3,694	$	3,772

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
	June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014
	(in millions)
Pacific	$	712	$	673	27	%	26	%
South Atlantic	707		710		27		27
Mountain	245		236		9		9
West North Central	224		223		9		8
East North Central	207		237		8		9
Middle Atlantic	196		210		7		8
West South Central	145		151		6		6
New England	121		130		5		5
East South Central	59		62		2		2
	2,616		2,632		100	%	100	%
Less: allowance for loan losses	21		23
Total	$	2,595	$	2,609

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
	June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014
	(in millions)
Retail	$	929	$	956	35	%	36	%
Office	517		535		20		20
Apartments	473		473		18		18
Industrial	442		447		17		17
Mixed use	45		46		2		2
Hotel	37		32		1		1
Other	173		143		7		6
	2,616		2,632		100	%	100	%
Less: allowance for loan losses	21		23
Total	$	2,595	$	2,609

XML

Guarantees and Contingencies (Details) - Future guaranty fund assessments [Member] - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Commitments and Contingencies
Liability related to guaranty fund assessments	$ 14	$ 14
Premium tax asset	$ 12	$ 12

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows from Operating Activities
Net income	$ 466	$ 541
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion, net	5	4
Deferred income tax expense (benefit)	87	(72)
Contractholder and policyholder charges, non-cash	(165)	(164)
Loss from equity method investments	18	12
Net realized investment gains	(17)	(6)
Other-than-temporary impairments and provision for loan losses recognized in net realized investment gains	1	1
Change in operating assets and liabilities:
Deferred acquisition costs	(1)	3
Policyholder account balances, future policy benefits and claims, net	(73)	372
Derivatives, net of collateral	260	(253)
Reinsurance recoverables	(70)	(66)
Other receivables	18	5
Accrued investment income	8	10
Other, net	297	(97)
Net cash provided by operating activities	834	290
Available-for-Sale securities:
Proceeds from sales	53	229
Maturities, sinking fund payments and calls	1,600	1,290
Purchases	(1,245)	(574)
Proceeds from maturities and repayments of mortgage loans	314	277
Funding of mortgage loans	(242)	(256)
Proceeds from sales and collections of other investments	53	76
Purchase of other investments	(59)	(183)
Purchase of land, buildings, equipment and software	(5)	(2)
Change in policy loans, net	(11)	(18)
Advance on line of credit to Ameriprise Financial, Inc.	0	(15)
Repayment from Ameriprise Financial, Inc. on line of credit	0	15
Other, net	44	7
Net cash provided by investing activities	502	846
Policyholder account balances:
Deposits and other additions	984	1,021
Net transfers to separate accounts	(102)	(109)
Surrenders and other benefits	(1,566)	(1,363)
Change in short-term borrowings, net	0	(301)
Proceeds from line of credit with Ameriprise Financial, Inc.	6	42
Payments on line of credit with Ameriprise Financial, Inc.	(6)	(192)
Tax adjustment on share-based incentive compensation plan	1	1
Cash received for purchased options with deferred premiums	8	7
Cash paid for purchased options with deferred premiums	(204)	(218)
Cash dividend to Ameriprise Financial, Inc.	(525)	(300)
Net cash used in financing activities	(1,404)	(1,412)
Net decrease in cash and cash equivalents	(68)	(276)
Cash and cash equivalents at beginning of period	307	344
Cash and cash equivalents at end of period	239	68
Supplemental Disclosures:
Income taxes paid (received), net	(220)	331
Interest paid on borrowings	0	1
Non-cash investing activity:
Affordable housing partnership commitments not yet remitted	$ 9	$ 0

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Fixed maturities, amortized cost	$ 21,023	$ 21,354
Common stocks, cost	2	2
Mortgage loans, allowance for loan losses	$ 21	$ 23
Common stock, par value (in dollars per share)	$ 30	$ 30
Common stock, shares authorized (in shares)	100,000	100,000
Common stock, shares issued (in shares)	100,000	100,000
Common stock, shares outstanding (in shares)	100,000	100,000

XML

Fair Values of Assets and Liabilities

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Fair Values of Assets and Liabilities [Table 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 measured at fair value on a recurring basis:

	June 30, 2015
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Available-for-Sale securities: Fixed maturities:
Corporate debt securities	$	—	$	13,513	$	1,339	$	14,852
Residential mortgage backed securities	—		3,288		8		3,296
Commercial mortgage backed securities	—		2,161		34		2,195
State and municipal obligations	—		1,049		—		1,049
Asset backed securities	—		690		118		808
Foreign government bonds and obligations	—		239		—		239
U.S. government and agencies obligations	4		35		—		39
Total Available-for-Sale securities: Fixed maturities	4		20,975		1,499		22,478
Common stocks	3		4		—		7
Cash equivalents	50		163		—		213
Other assets:
Interest rate derivative contracts	—		1,574		—		1,574
Equity derivative contracts	226		1,836		—		2,062
Credit derivative contracts	—		9		—		9
Foreign exchange derivative contracts	—		42		—		42
Other derivative contracts	—		15		—		15
Total other assets	226		3,476		—		3,702
Separate account assets	—		79,326		—		79,326
Total assets at fair value	$	283	$	103,944	$	1,499	$	105,726
Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives	$	—	$	6	$	—	$	6
IUL embedded derivatives	—		—		292		292
GMWB and GMAB embedded derivatives	—		—		235		235		(1)
Total policyholder account balances, future policy benefits and claims	—		6		527		533		(2)
Other liabilities:
Interest rate derivative contracts	—		1,021		—		1,021
Equity derivative contracts	307		2,273		—		2,580
Foreign exchange derivative contracts	—		5		—		5
Other derivative contracts	—		13		—		13
Total other liabilities	307		3,312		—		3,619
Total liabilities at fair value	$	307	$	3,318	$	527	$	4,152

⁽¹⁾  The fair value of the GMWB and GMAB embedded derivatives included $541 millionof individual contracts in a liability position and $306 millionof individual contracts in an asset position.

⁽²⁾  The Company’s adjustment for nonperformance risk resulted in a $300 million cumulative decrease to the embedded derivatives.

	December 31, 2014
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Available-for-Sale securities: Fixed maturities:
Corporate debt securities	$	—	$	13,830	$	1,353	$	15,183
Residential mortgage backed securities	—		3,483		9		3,492
Commercial mortgage backed securities	—		2,138		90		2,228
State and municipal obligations	—		1,113		—		1,113
Asset backed securities	—		786		151		937
Foreign government bonds and obligations	—		251		—		251
U.S. government and agencies obligations	4		35		—		39
Total Available-for-Sale securities: Fixed maturities	4		21,636		1,603		23,243
Common stocks	3		3		1		7
Cash equivalents	1		235		—		236
Other assets:
Interest rate derivative contracts	—		1,955		—		1,955
Equity derivative contracts	282		1,711		—		1,993
Foreign exchange derivative contracts	—		29		—		29
Total other assets	282		3,695		—		3,977
Separate account assets	—		79,178		—		79,178
Total assets at fair value	$	290	$	104,747	$	1,604	$	106,641
Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives	$	—	$	6	$	—	$	6
IUL embedded derivatives	—		—		242		242
GMWB and GMAB embedded derivatives	—		—		479		479		(1)
Total policyholder account balances, future policy benefits and claims	—		6		721		727		(2)
Other liabilities:
Interest rate derivative contracts	—		1,136		—		1,136
Equity derivative contracts	376		2,286		—		2,662
Foreign exchange derivative contracts	—		2		—		2
Other derivative contracts	—		11		—		11
Total other liabilities	376		3,435		—		3,811
Total liabilities at fair value	$	376	$	3,441	$	721	$	4,538

⁽¹⁾  The fair value of the GMWB and GMAB embedded derivatives included $700 millionof individual contracts in a liability position and $221 millionof individual contracts in an asset position.

⁽²⁾  The Company’s adjustment for nonperformance risk resulted in a $311 million cumulative decrease to the embedded derivatives.

The following tables provide a summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis:

	Available-for-Sale Securities: Fixed Maturities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Total
	(in millions)
Balance, April 1, 2015	$	1,360		$	39		$	20		$	119		$	1,538
Total losses included in:
Other comprehensive income	(19		)	—			—			—			(19		)
Purchases	36			—			31			1			68
Settlements	(38		)	—			(1		)	(2		)	(41		)
Transfers out of Level 3	—			(31		)	(16		)	—			(47		)
Balance, June 30, 2015	$	1,339		$	8		$	34		$	118		$	1,499
Changes in unrealized gains (losses) relating to assets held at June 30, 2015 included in:
Net investment income	$	—		$	—		$	—		$	—		$	—

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives			GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, April 1, 2015	$	270		$	827			$	1,097
Total gains included in:
Net income	—			(659		)	(1)	(659		)
Issues	26			64				90
Settlements	(4		)	3				(1		)
Balance, June 30, 2015	$	292		$	235			$	527
Changes in unrealized gains relating to liabilities held at June 30, 2015 included in:
Benefits, claims, losses and settlement expenses	$	—		$	(651	)		$	(651	)

⁽¹⁾  Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income.

	Available-for-Sale Securities: Fixed Maturities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Total			Common Stocks		Other Assets: Other Derivatives Contracts
	(in millions)
Balance, April 1, 2014	$	1,391		$	11		$	55		$	149		$	1,606		$	—	$	—
Total gains included in:
Other comprehensive income	10			—			—			1			11			—		—
Purchases	33			—			—			—			33			1		1
Settlements	(58		)	(1		)	—			(1		)	(60		)	—		—
Transfers out of Level 3	—			—			(40		)	—			(40		)	—		—
Balance, June 30, 2014	$	1,376		$	10		$	15		$	149		$	1,550		$	1	$	1
Changes in unrealized gains (losses) relating to assets held at June 30, 2014 included in:
Net investment income	$	—		$	—		$	—		$	—		$	—		$	—	$	—

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, April 1, 2014	$	154			$	(471	)		$	(317	)
Total losses included in:
Net income	8			(1)	68			(2)	76
Issues	24				60				84
Settlements	(2		)		(4		)		(6		)
Balance, June 30, 2014	$	184			$	(347	)		$	(163	)
Changes in unrealized losses relating to liabilities held at June 30, 2014 included in:
Benefits, claims, losses and settlement expenses	$	—			$	67			$	67
Interest credited to fixed accounts	8				—				8

⁽¹⁾  Included in interest credited to fixed accounts in the Consolidated Statements of Income.

⁽²⁾  Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income.

	Available-for-Sale Securities: Fixed Maturities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Total			Common Stocks
	(in millions)
Balance, January 1, 2015	$	1,353		$	9		$	90		$	151		$	1,603		$	1
Total losses included in:
Other comprehensive income	(7		)	—			—			—			(7		)	(1		)
Purchases	51			31			31			1			114			—
Settlements	(58		)	(1		)	(2		)	(2		)	(63		)	—
Transfers into Level 3	—			—			6			—			6			—
Transfers out of Level 3	—			(31		)	(91		)	(32		)	(154		)	—
Balance, June 30, 2015	$	1,339		$	8		$	34		$	118		$	1,499		$	—
Changes in unrealized gains (losses) relating to assets held at June 30, 2015 included in:
Net investment income	$	—		$	—		$	—		$	—		$	—		$	—

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, January 1, 2015	$	242			$	479			$	721
Total (gains) losses included in:
Net income	14			(1)	(379		)	(2)	(365		)
Issues	45				128				173
Settlements	(9		)		7				(2		)
Balance, June 30, 2015	$	292			$	235			$	527
Changes in unrealized (gains) losses relating to liabilities held at June 30, 2015 included in:
Benefits, claims, losses and settlement expenses	$	—			$	(373	)		$	(373	)
Interest credited to fixed accounts	14				—				14

⁽¹⁾  Included in interest credited to fixed accounts in the Consolidated Statements of Income.

⁽²⁾  Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income.

	Available-for-Sale Securities: Fixed Maturities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Total			Common Stocks		Other Assets: Other Derivatives Contracts
	(in millions)
Balance, January 1, 2014	$	1,516		$	58		$	30		$	218		$	1,822		$	—	$	—
Total gains included in:
Other comprehensive income	15			—			—			1			16			—		—
Purchases	57			11			39			—			107			1		1
Sales	(11		)	—			—			—			(11		)	—		—
Settlements	(201		)	(1		)	—			(1		)	(203		)	—		—
Transfers out of Level 3	—			(58		)	(54		)	(69		)	(181		)	—		—
Balance, June 30, 2014	$	1,376		$	10		$	15		$	149		$	1,550		$	1	$	1
Changes in unrealized gains (losses) relating to assets held at June 30, 2014 included in:
Net investment income	$	—		$	—		$	—		$	—		$	—		$	—	$	—

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, January 1, 2014	$	125			$	(575	)		$	(450	)
Total losses included in:
Net income	14			(1)	120			(2)	134
Issues	48				119				167
Settlements	(3		)		(11		)		(14		)
Balance, June 30, 2014	$	184			$	(347	)		$	(163	)
Changes in unrealized losses relating to liabilities held at June 30, 2014 included in:
Benefits, claims, losses and settlement expenses	$	—			$	119			$	119
Interest credited to fixed accounts	14				—				14

⁽¹⁾  Included in interest credited to fixed accounts in the Consolidated Statements of Income.

⁽²⁾  Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income.

The decrease to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $45 million and $6 million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual for the three months ended June 30, 2015 and 2014, respectively. The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $(8) million and $9 million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual for the six months ended June 30, 2015 and 2014, respectively.

Securities transferred from Level 3 primarily represent securities with fair values that are now obtained from a third party pricing service with observable inputs. Securities transferred to Level 3 represent securities with fair values that are now based on a single non-binding broker quote. The Company recognizes transfers between levels of the fair value hierarchy as of the beginning of the quarter in which each transfer occurred. For assets and liabilities held at the end of the reporting periods that are measured at fair value on a recurring basis, there were no transfers between Level 1 and Level 2.

The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities:

	June 30, 2015
	Fair Value		Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	1,324	Discounted cash flow	Yield/spread to U.S. Treasuries	1.1	%	-	3.5%	1.5%
IUL embedded derivatives	$	292	Discounted cash flow	Nonperformance risk (1)	67			bps
GMWB and GMAB embedded derivatives	$	235	Discounted cash flow	Utilization of guaranteed withdrawals (2)	0.0	%	-	51.1%
				Surrender rate	0.0	%	-	59.1%
				Market volatility (3)	5.3	%	-	21.0%
				Nonperformance risk (1)	67			bps
				Elective contractholder strategy allocations (4)	0.0	%	-	3.0%

	December 31, 2014
	Fair Value		Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	1,311	Discounted cash flow	Yield/spread to U.S. Treasuries	1.0	%	-	3.9%	1.5%
IUL embedded derivatives	$	242	Discounted cash flow	Nonperformance risk (1)	65			bps
GMWB and GMAB embedded derivatives	$	479	Discounted cash flow	Utilization of guaranteed withdrawals (2)	0.0	%	-	51.1%
				Surrender rate	0.0	%	-	59.1%
				Market volatility (3)	5.2	%	-	20.9%
				Nonperformance risk (1)	65			bps
				Elective contractholder strategy allocations (4)	0.0	%	-	3.0%

^. 

⁽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.

⁽⁴⁾  The elective allocation represents the percentage of contractholders that are assumed to electively switch their investment allocation to a different allocation model.

Level 3 measurements not included in the table above are obtained from non-binding broker quotes where unobservable inputs are not reasonably available to the Company.

Sensitivity of Fair Value Measurements to Changes in Unobservable Inputs

Significant increases (decreases) in the yield/spread to U.S. Treasuries used in the fair value measurement of Level 3 corporate debt securities in isolation would result in a significantly lower (higher) fair value measurement.

Significant increases (decreases) in nonperformance risk used in the fair value measurement of the IUL embedded derivatives in isolation would result in a significantly lower (higher) fair value measurement.

Significant increases (decreases) in utilization and volatility used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly higher (lower) liability value. Significant increases (decreases) in nonperformance risk, surrender rate and elective investment allocation model used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly 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 system and whether the value of the guaranteed benefit exceeds the contract accumulation value.

Determination of Fair Value

The Company uses valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The Company’s market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company’s income approach uses valuation techniques to convert future projected cash flows to a single discounted present value amount. When applying either approach, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs.

The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy.

Assets

Cash Equivalents

Cash equivalents include highly liquid investments with original maturities of 90 days or less. Actively traded money market funds are measured at their 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.

Available-for-Sale 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, state and municipal obligations, asset backed securities and U.S. agency and foreign government securities. The fair value of these Level 2 securities is based on a market approach with prices obtained from third party pricing services. Observable inputs used to value these securities can include, but are not limited to, reported trades, benchmark yields, issuer spreads and non-binding broker quotes. Level 3 securities primarily include certain corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and asset backed securities. The fair value of corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and certain asset backed securities classified as Level 3 is typically based on a single non-binding broker quote. The underlying inputs used for some of the non-binding broker quotes are not readily available to the Company. The Company’s privately placed corporate bonds are typically based on a single non-binding broker quote. In addition to the general pricing controls, the Company reviews the broker prices to ensure that the broker quotes are reasonable and, when available, compares prices of privately issued securities to public issues from the same issuer to ensure that the implicit illiquidity premium applied to the privately placed investment is reasonable considering investment characteristics, maturity, and average life of the investment.

In consideration of the above, management is responsible for the fair values recorded on the financial statements. Prices received from third party pricing services are subjected to exception reporting that identifies investments with significant daily price movements as well as no movements. The Company reviews the exception reporting and resolves the exceptions through reaffirmation of the price or recording an appropriate fair value estimate. The Company also performs subsequent transaction testing. The Company performs annual due diligence of third party pricing services. The Company’s due diligence procedures include assessing the vendor’s valuation qualifications, control environment, analysis of asset-class specific valuation methodologies, and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. The Company also considers the results of its exception reporting controls and any resulting price challenges that arise.

Separate Account Assets

The fair value of assets held by separate accounts is determined by the NAV of the funds in which those separate accounts are invested. The NAV represents the exit price for the separate account. Separate account assets are classified as Level 2 as they are traded in principal-to-principal markets with little publicly released pricing information.

Other Assets

Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements. The fair value of derivatives that are traded in less active over-the-counter (“OTC”) markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and options. Other derivative contracts consist of the Company's macro hedge program. See Note 12 for further information on the macro hedge program. The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial at June 30, 2015 and December 31, 2014. See Note 11 and Note 12 for further information on the credit risk of derivative instruments and related collateral.

Liabilities

Policyholder Account Balances, Future Policy Benefits and Claims

The Company values the embedded derivatives attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculate fair value by discounting expected cash flows from benefits plus margins for profit, risk and expenses less embedded derivative fees. The projected cash flows used by these models include observable capital market assumptions and incorporate significant unobservable inputs related to contractholder behavior assumptions, implied volatility, and margins for risk, profit and expenses that the Company believes an exit market participant would expect. The fair value also reflects a current estimate of the Company’s nonperformance risk specific to these embedded derivatives. Given the significant unobservable inputs to this valuation, these measurements are classified as Level 3. The embedded derivatives attributable to these provisions are recorded in policyholder account balances, future policy benefits and claims.

The Company uses various Black-Scholes calculations to determine the fair value of the embedded derivatives associated with the provisions of its EIA and IUL products. Significant inputs to the EIA calculation include observable interest rates, volatilities and equity index levels and, therefore, are classified as Level 2. The fair value of the IUL embedded derivatives includes significant observable interest rates, volatilities and equity index levels and the significant unobservable estimate of the Company’s nonperformance risk. Given the significance of the nonperformance risk assumption to the fair value, the IUL embedded derivatives are classified as Level 3. The embedded derivatives attributable to these provisions are recorded in policyholder account balances, future policy benefits and claims.

The Company’s Corporate Actuarial Department calculates the fair value of the embedded derivatives on a monthly basis. During this process, control checks are performed to validate the completeness of the data. Actuarial management approves various components of the valuation along with the final results. The change in the fair value of the embedded derivatives is reviewed monthly with senior management. The Level 3 inputs into the valuation are consistent with the pricing assumptions and updated as experience develops. Significant unobservable inputs that reflect policyholder behavior are reviewed quarterly along with other valuation assumptions.

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 fair value of derivatives that are traded in less active OTC markets are generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. Other derivative contracts consist of the Company’s macro hedge program. See Note 12 for further information on the macro hedge program. The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial at June 30, 2015 and December 31, 2014. See Note 11 and Note 12 for further information on the credit risk of derivative instruments and related collateral.

During the reporting periods, there were no material assets or liabilities measured at fair value on a nonrecurring basis.

The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value. All other financial instruments that are reported at fair value have been included above in the tables with balances of assets and liabilities measured at fair value on a recurring basis.

	June 30, 2015
	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total
	(in millions)
Financial Assets
Mortgage loans, net	$	3,233	$	—	$	—	$	3,315	$	3,315
Policy loans	816		—		—		802		802
Other investments	450		—		413		38		451
Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	12,016	$	—	$	—	$	12,803	$	12,803
Short-term borrowings	200		—		200		—		200
Other liabilities	108		—		—		104		104
Separate account liabilities	389		—		389		—		389

	December 31, 2014
	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total
	(in millions)
Financial Assets
Mortgage loans, net	$	3,298	$	—	$	—	$	3,413	$	3,413
Policy loans	805		—		—		793		793
Other investments	463		—		403		55		458
Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	12,979	$	—	$	—	$	13,996	$	13,996
Short-term borrowings	200		—		200		—		200
Other liabilities	124		—		—		121		121
Separate account liabilities	400		—		400		—		400

Mortgage Loans, Net

The fair value of commercial mortgage loans, except those with significant credit deterioration, is determined by discounting contractual cash flows using discount rates that reflect current pricing for loans with similar remaining maturities, liquidity and characteristics including LTV ratio, occupancy rate, refinance risk, debt service coverage, location, and property condition. For commercial mortgage loans with significant credit deterioration, fair value is determined using the same adjustments as above with an additional adjustment for the Company’s estimate of the amount recoverable on the loan.

The fair value of residential mortgage loans is determined by discounting estimated cash flows and incorporating adjustments for prepayment, administration expenses, loss severity and credit loss estimates, with discount rates based on the Company’s estimate of current market conditions.

Given the significant unobservable inputs to the valuation of mortgage loans, these measurements are classified as Level 3.

Policy Loans

Policy loans represent loans made against the cash surrender value of the underlying life insurance or annuity product. These loans and the related interest are usually realized at death of the policyholder or contractholder or at surrender of the contract and are not transferable without the underlying insurance or annuity contract. The fair value of policy loans is determined by estimating expected cash flows discounted at rates based on the U.S. Treasury curve. Policy loans are classified as Level 3 as the discount rate used may be adjusted for the underlying performance of individual policies.

Other Investments

Other investments primarily consist of syndicated loans and an investment in FHLB. The fair value of syndicated loans is obtained from a third party pricing service or non-binding broker quotes. Syndicated loans that are priced using a market approach with observable inputs are classified as Level 2 and syndicated loans priced using a single non-binding broker quote are classified as Level 3. The fair value of the investment in FHLB is approximated by the carrying value and classified as Level 3 due to restrictions on transfer and lack of liquidity in the primary market for this asset.

Policyholder Account Balances, Future Policy Benefits and Claims

The fair value of fixed annuities in deferral status is determined by discounting cash flows using a risk neutral discount rate with adjustments for profit margin, expense margin, early policy surrender behavior, a margin for adverse deviation from estimated early policy surrender behavior and the Company’s nonperformance risk specific to these liabilities. The fair value of non-life contingent fixed annuities in payout status, EIA host contracts and the fixed portion of a small number of variable annuity contracts classified as investment contracts is determined in a similar manner. Given the use of significant unobservable inputs to these valuations, the measurements are classified as Level 3.

Short-term Borrowings

The fair value of short-term borrowings is obtained from a third party pricing service. A nonperformance adjustment is not included as collateral requirements for these borrowings minimize the nonperformance risk. The fair value of short-term borrowings is classified as Level 2.

Other Liabilities

Other liabilities consist of future funding commitments to affordable housing partnerships. The fair value of these future funding commitments is determined by discounting cash flows. The fair value of these commitments includes an adjustment for the Company’s nonperformance risk and is classified as Level 3 due to the use of the significant unobservable input.

Separate Account Liabilities

Certain separate account liabilities are classified as investment contracts and are carried at an amount equal to the related separate account assets. The NAV of the related separate account assets represents the exit price for the separate account liabilities. Separate account liabilities are classified as Level 2 as they are traded in principal-to-principal markets with little publicly released pricing information. A nonperformance adjustment is not included as the related separate account assets act as collateral for these liabilities and minimize nonperformance risk.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 03, 2015
Document and Entity Information
Entity Registrant Name	RIVERSOURCE LIFE INSURANCE CO
Entity Central Index Key	0000727892
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		100,000

XML

Offsetting Assets and Liabilities

6 Months Ended

Jun. 30, 2015

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 and repurchase agreements are subject to master netting arrangements and collateral arrangements and qualify for offset. A master netting arrangement with a counterparty creates a right of offset for amounts due to and from that same counterparty that is enforceable in the event of a default or bankruptcy. 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:

	June 30, 2015
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets
							Financial Instruments (1)			Cash Collateral			Securities Collateral			Net Amount
	(in millions)
Derivatives:
OTC	$	3,305	$	—	$	3,305	$	(2,747	)	$	(254	)	$	(215	)	$	89
OTC cleared	321		—		321		(241		)	(80		)	—			—
Exchange-traded	76		—		76		—			—			—			76
Total derivatives	$	3,702	$	—	$	3,702	$	(2,988	)	$	(334	)	$	(215	)	$	165

	December 31, 2014
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets
							Financial Instruments (1)			Cash Collateral			Securities Collateral			Net Amount
	(in millions)
Derivatives:
OTC	$	3,612	$	—	$	3,612	$	(2,934	)	$	(228	)	$	(418	)	$	32
OTC cleared	304		—		304		(222		)	(82		)	—			—
Exchange-traded	61		—		61		—			—			—			61
Total derivatives	$	3,977	$	—	$	3,977	$	(3,156	)	$	(310	)	$	(418	)	$	93

⁽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:

	June 30, 2015
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Liabilities Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets
							Financial Instruments (1)			Cash Collateral		Securities Collateral			Net Amount
	(in millions)
Derivatives:
OTC	$	3,378	$	—	$	3,378	$	(2,747	)	$	—	$	(631	)	$	—
OTC cleared	241		—		241		(241		)	—		—			—
Total derivatives	3,619		—		3,619		(2,988		)	—		(631		)	—
Repurchase agreements	50		—		50		—			—		(50		)	—
Total	$	3,669	$	—	$	3,669	$	(2,988	)	$	—	$	(681	)	$	—

	December 31, 2014
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Liabilities Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets
							Financial Instruments (1)			Cash Collateral		Securities Collateral			Net Amount
	(in millions)
Derivatives:
OTC	$	3,589	$	—	$	3,589	$	(2,934	)	$	—	$	(655	)	$	—
OTC cleared	222		—		222		(222		)	—		—			—
Total derivatives	3,811		—		3,811		(3,156		)	—		(655		)	—
Repurchase agreements	50		—		50		—			—		(50		)	—
Total	$	3,861	$	—	$	3,861	$	(3,156	)	$	—	$	(705	)	$	—

⁽¹⁾  Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets.

In the tables above, the amounts of assets or liabilities presented in the Consolidated Balance Sheets are offset first by financial instruments that have the right of offset under master netting or similar arrangements, then any remaining amount is reduced by the amount of cash and securities collateral. The actual 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.

The Company’s freestanding derivative instruments are reflected in other assets and other liabilities. Repurchase agreements are reflected in short-term borrowings. See Note 12 for additional disclosures related to the Company’s derivative instruments and Note 9 for additional disclosures related to the Company’s repurchase agreements.

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues
Premiums	$ 108	$ 110	$ 205	$ 214
Net investment income	302	323	608	656
Policy and contract charges	475	465	935	912
Other revenues	113	99	217	194
Net realized investment gains	6	1	16	5
Total revenues	1,004	998	1,981	1,981
Benefits and expenses
Benefits, claims, losses and settlement expenses	275	280	581	488
Interest credited to fixed accounts	160	175	332	361
Amortization of deferred acquisition costs	74	61	129	132
Other insurance and operating expenses	187	190	369	372
Total benefits and expenses	696	706	1,411	1,353
Pretax income	308	292	570	628
Income tax provision	55	49	104	87
Net income	253	243	466	541
Supplemental Disclosures:
Total other-than-temporary impairment losses on securities	0	0	(1)	(1)
Portion of loss recognized in other comprehensive income (loss) (before taxes)	0	0	1	0
Net impairment losses recognized in net realized investment gains	$ 0	$ 0	$ 0	$ (1)

XML

Financing Receivables

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Financing Receivables [Text Block]

Financing Receivables

The Company’s financing receivables include commercial and residential mortgage loans, syndicated loans and policy loans. Syndicated loans are reflected in other investments.

Allowance for Loan Losses

Policy loans do not exceed the cash surrender value of the policy at origination. As there is minimal risk of loss related to policy loans, the Company does not record an allowance for loan losses for policy loans. The Company does not currently have an allowance for loan losses for residential mortgage loans.

The following table presents a rollforward of the allowance for loan losses for commercial mortgage loans and syndicated loans for the six months ended and the ending balance of the allowance for loan losses by impairment method:

	June 30,
	2015			2014
	(in millions)
Beginning balance	$	28		$	28
Charge-offs	(2		)	(2		)
Provisions	1			—
Ending balance	$	27		$	26
Individually evaluated for impairment	$	6		$	8
Collectively evaluated for impairment	21			18

The recorded investment in commercial and residential mortgage loans and syndicated loans by impairment method was as follows:

	June 30, 2015		December 31, 2014
	(in millions)
Individually evaluated for impairment	$	33	$	32
Collectively evaluated for impairment	3,661		3,740
Total	$	3,694	$	3,772

As of June 30, 2015 and December 31, 2014, the Company’s recorded investment in financing receivables individually evaluated for impairment for which there was no related allowance for loan losses was $13 million and $4 million, respectively.

During the three months ended June 30, 2015 and 2014, the Company purchased $24 million and $25 million, respectively, and sold $1 million and $6 million, respectively, of syndicated loans. During the six months ended June 30, 2015 and 2014, the Company purchased $36 million and $90 million, respectively, and sold $7 million and $10 million, respectively, consisting primarily of syndicated loans.

Credit Quality Information

Nonperforming loans, which are generally loans 90 days or more past due, were $8 million and $10 million as of June 30, 2015 and December 31, 2014, respectively. All other loans were considered to be performing.

Commercial Mortgage Loans

The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates as necessary. Commercial mortgage loans which management has assigned its highest risk rating were 1% of total commercial mortgage loans at both June 30, 2015 and December 31, 2014. 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
	June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014
	(in millions)
Pacific	$	712	$	673	27	%	26	%
South Atlantic	707		710		27		27
Mountain	245		236		9		9
West North Central	224		223		9		8
East North Central	207		237		8		9
Middle Atlantic	196		210		7		8
West South Central	145		151		6		6
New England	121		130		5		5
East South Central	59		62		2		2
	2,616		2,632		100	%	100	%
Less: allowance for loan losses	21		23
Total	$	2,595	$	2,609

Concentrations of credit risk of commercial mortgage loans by property type were as follows:

	Loans				Percentage
	June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014
	(in millions)
Retail	$	929	$	956	35	%	36	%
Office	517		535		20		20
Apartments	473		473		18		18
Industrial	442		447		17		17
Mixed use	45		46		2		2
Hotel	37		32		1		1
Other	173		143		7		6
	2,616		2,632		100	%	100	%
Less: allowance for loan losses	21		23
Total	$	2,595	$	2,609

Residential Mortgage Loans

The recorded investment in residential mortgage loans at June 30, 2015 and December 31, 2014 was $638 million and $689 million, respectively. The Company considers the credit worthiness of borrowers (FICO score), collateral characteristics such as loan-to-value (“LTV”) and geographic concentration to determine when an amount for an allowance for loan losses for residential mortgage loans is appropriate. At a minimum, management updates FICO scores and LTV ratios semiannually. As of June 30, 2015 and December 31, 2014, no allowance for loan losses was recorded.

Residential mortgage loans are presented net of unamortized discount of $27 million and $34 million as of June 30, 2015 and December 31, 2014, respectively.

As of both June 30, 2015 and December 31, 2014, approximately 5% of residential mortgage loans had FICO scores below 640. As of both June 30, 2015 and December 31, 2014, approximately 1% of the Company’s residential mortgage loans had LTV ratios greater than 90%. The Company’s most significant geographic concentration for residential mortgage loans is in California representing 37% of the portfolio as of both June 30, 2015 and December 31, 2014. No other state represents more than 10% of the total residential mortgage loan portfolio.

Syndicated Loans

The recorded investment in syndicated loans at June 30, 2015 and December 31, 2014 was $440 million and $451 million, respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. The primary credit indicator for syndicated loans is whether the loans are performing in accordance with the contractual terms of the syndication. Total nonperforming syndicated loans at both June 30, 2015 and December 31, 2014 were $3 million.

Troubled Debt Restructurings

The recorded investment in restructured loans was not material as of June 30, 2015 and December 31, 2014. The troubled debt restructurings did not have a material impact to the Company’s allowance for loan losses or income recognized for the three months and six months ended June 30, 2015 and 2014. There are no material commitments to lend additional funds to borrowers whose loans have been restructured.

XML

Investments

6 Months Ended

Jun. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Investments [Text Block]

Investments

Available-for-Sale securities distributed by type were as follows:

	June 30, 2015
Description of Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI (1)
	(in millions)
Fixed maturities:
Corporate debt securities	$	13,717	$	1,211	$	(76	)	$	14,852	$	3
Residential mortgage backed securities	3,219		116		(39		)	3,296		(8		)
Commercial mortgage backed securities	2,115		90		(10		)	2,195		—
State and municipal obligations	940		138		(29		)	1,049		—
Asset backed securities	770		40		(2		)	808		—
Foreign government bonds and obligations	225		20		(6		)	239		—
U.S. government and agencies obligations	37		2		—			39		—
Total fixed maturities	21,023		1,617		(162		)	22,478		(5		)
Common stocks	2		5		—			7		3
Total	$	21,025	$	1,622	$	(162	)	$	22,485	$	(2	)

	December 31, 2014
Description of Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI (1)
	(in millions)
Fixed maturities:
Corporate debt securities	$	13,763	$	1,474	$	(54	)	$	15,183	$	3
Residential mortgage backed securities	3,374		150		(32		)	3,492		(9		)
Commercial mortgage backed securities	2,116		115		(3		)	2,228		—
State and municipal obligations	947		191		(25		)	1,113		—
Asset backed securities	882		56		(1		)	937		—
Foreign government bonds and obligations	236		21		(6		)	251		—
U.S. government and agencies obligations	36		3		—			39		—
Total fixed maturities	21,354		2,010		(121		)	23,243		(6		)
Common stocks	2		5		—			7		3
Total	$	21,356	$	2,015	$	(121	)	$	23,250	$	(3	)

⁽¹⁾  Represents the amount of other-than-temporary impairment (“OTTI”) losses in accumulated other comprehensive income (“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 both June 30, 2015 and December 31, 2014, investment securities with a fair value of $1.2 billion were pledged to meet contractual obligations under derivative contracts and short-term borrowings.

As of both June 30, 2015 and December 31, 2014, fixed maturity securities comprised approximately 82% of the Company’s total investments. Rating agency designations are based on the availability of ratings from Nationally Recognized Statistical Rating Organizations (“NRSROs”), including Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”) and Fitch Ratings Ltd. (“Fitch”). The Company uses the median of available ratings from Moody’s, S&P and Fitch, or if fewer than three ratings are available, the lower rating is used. When ratings from Moody’s, S&P and Fitch are unavailable, the Company may utilize ratings from other NRSROs or rate the securities internally. At June 30, 2015 and December 31, 2014, approximately $1.1 billion and $1.2 billion, respectively, of securities were internally rated by Columbia Management Investment Advisers, LLC, an affiliate of the Company, using criteria similar to those used by NRSROs.

A summary of fixed maturity securities by rating was as follows:

	June 30, 2015						December 31, 2014
Ratings	Amortized Cost		Fair Value		Percent of Total Fair Value		Amortized  Cost		Fair Value		Percent of Total Fair Value
	(in millions, except percentages)
AAA	$	4,850	$	5,030	22	%	$	5,111	$	5,374	23	%
AA	953		1,104		5		967		1,158		5
A	4,076		4,537		20		4,452		5,062		22
BBB	9,628		10,300		46		9,328		10,165		44
Below investment grade	1,516		1,507		7		1,496		1,484		6
Total fixed maturities	$	21,023	$	22,478	100	%	$	21,354	$	23,243	100	%

At June 30, 2015 and December 31, 2014, approximately 47% and 46%, respectively, of the securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any other issuer were greater than 10% of total equity.

The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position:

	June 30, 2015
	Less than 12 months						12 months or more						Total
Description of Securities	Number of Securities	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses
	(in millions, except number of securities)
Corporate debt securities	164	$	2,269	$	(67	)	15	$	156	$	(9	)	179	$	2,425	$	(76	)
Residential mortgage backed securities	30	522		(8		)	55	562		(31		)	85	1,084		(39		)
Commercial mortgage backed securities	41	507		(9		)	3	49		(1		)	44	556		(10		)
State and municipal obligations	10	34		(2		)	2	100		(27		)	12	134		(29		)
Asset backed securities	10	132		(2		)	2	13		—			12	145		(2		)
Foreign government bonds and obligations	3	7		—			13	24		(6		)	16	31		(6		)
Total	258	$	3,471	$	(88	)	90	$	904	$	(74	)	348	$	4,375	$	(162	)

	December 31, 2014
	Less than 12 months						12 months or more						Total
Description of Securities	Number of  Securities	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses
	(in millions, except number of securities)
Corporate debt securities	106	$	1,093	$	(36	)	40	$	689	$	(18	)	146	$	1,782	$	(54	)
Residential mortgage backed securities	17	138		(2		)	55	670		(30		)	72	808		(32		)
Commercial mortgage backed securities	9	80		—			9	95		(3		)	18	175		(3		)
State and municipal obligations	1	5		—			2	102		(25		)	3	107		(25		)
Asset backed securities	5	52		—			3	32		(1		)	8	84		(1		)
Foreign government bonds and obligations	4	10		(1		)	14	27		(5		)	18	37		(6		)
Total	142	$	1,378	$	(39	)	123	$	1,615	$	(82	)	265	$	2,993	$	(121	)

As part of the Company’s ongoing monitoring process, management determined that a majority of the change in gross unrealized losses on its Available-for-Sale securities is attributable to movement in interest rates.

The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Income for other-than-temporary impairments related to credit losses on Available-for-Sale securities for which a portion of the securities’ total other-than-temporary impairments was recognized in other comprehensive income (loss):

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2015		2014		2015		2014
	(in millions)
Beginning balance	$	33	$	54	$	33	$	54
Credit losses for which an other-than-temporary impairment was not previously recognized	—		—		—		—
Ending balance	$	33	$	54	$	33	$	54

The change in net unrealized securities gains (losses) in other comprehensive income (loss) includes three components, net of tax: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit other-than-temporary impairment losses to credit losses; and (iii) other adjustments primarily consisting of changes in insurance and annuity asset and liability balances, such as deferred acquisition costs (“DAC”), deferred sales inducement costs (“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 a rollforward of the net unrealized securities gains on Available-for-Sale securities included in AOCI:

	Net Unrealized Securities Gains			Deferred Income Tax			AOCI Related to Net Unrealized Securities Gains
	(in millions)
Balance at January 1, 2014	$	1,033		$	(366	)	$	667
Net unrealized securities gains arising during the period (1)	653			(231		)	422
Reclassification of net securities gains included in net income	(5		)	2			(3		)
Impact of other adjustments	(257		)	90			(167		)
Balance at June 30, 2014	$	1,424		$	(505	)	$	919		(2)
Balance at January 1, 2015	$	1,148		$	(407	)	$	741
Net unrealized securities losses arising during the period (1)	(417		)	146			(271		)
Reclassification of net securities gains included in net income	(17		)	6			(11		)
Impact of other adjustments	203			(71		)	132
Balance at June 30, 2015	$	917		$	(326	)	$	591		(2)

⁽¹⁾  Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period.

⁽²⁾   Includes $1 million and $3 million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at June 30, 2015 and 2014, respectively.

Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in net realized investment gains were as follows:

	Three Months Ended   June 30,					Six Months Ended   June 30,
	2015		2014			2015			2014
	(in millions)
Gross realized investment gains	$	5	$	3		$	22		$	9
Gross realized investment losses	—		(2		)	(5		)	(3		)
Other-than-temporary impairments	—		—			—			(1		)
Total	$	5	$	1		$	17		$	5

Other-than-temporary impairments for the six months endedJune 30, 2014 primarily related to timing of the Company's decision to sell and subsequent disposition of a corporate debt security.

Available-for-Sale securities by contractual maturity at June 30, 2015 were as follows:

	Amortized Cost		Fair Value
	(in millions)
Due within one year	$	1,012	$	1,036
Due after one year through five years	5,203		5,652
Due after five years through 10 years	5,069		5,212
Due after 10 years	3,635		4,279
	14,919		16,179
Residential mortgage backed securities	3,219		3,296
Commercial mortgage backed securities	2,115		2,195
Asset backed securities	770		808
Common stocks	2		7
Total	$	21,025	$	22,485

Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities, commercial mortgage backed securities and asset backed securities are not due at a single maturity date. As such, these securities, as well as common stocks, were not included in the maturities distribution.

Net investment income is summarized as follows:

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2015		2014		2015		2014
	(in millions)
Fixed maturities	$	262	$	278	$	526	$	564
Mortgage loans	46		45		91		91
Other investments	3		8		8		17
	311		331		625		672
Less: investment expenses	9		8		17		16
Total	$	302	$	323	$	608	$	656

XML

Investments (Tables)

6 Months Ended

Jun. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Available-for-Sale Securities Disclosure [Table Text Block]

Available-for-Sale securities distributed by type were as follows:

	June 30, 2015
Description of Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI (1)
	(in millions)
Fixed maturities:
Corporate debt securities	$	13,717	$	1,211	$	(76	)	$	14,852	$	3
Residential mortgage backed securities	3,219		116		(39		)	3,296		(8		)
Commercial mortgage backed securities	2,115		90		(10		)	2,195		—
State and municipal obligations	940		138		(29		)	1,049		—
Asset backed securities	770		40		(2		)	808		—
Foreign government bonds and obligations	225		20		(6		)	239		—
U.S. government and agencies obligations	37		2		—			39		—
Total fixed maturities	21,023		1,617		(162		)	22,478		(5		)
Common stocks	2		5		—			7		3
Total	$	21,025	$	1,622	$	(162	)	$	22,485	$	(2	)

	December 31, 2014
Description of Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI (1)
	(in millions)
Fixed maturities:
Corporate debt securities	$	13,763	$	1,474	$	(54	)	$	15,183	$	3
Residential mortgage backed securities	3,374		150		(32		)	3,492		(9		)
Commercial mortgage backed securities	2,116		115		(3		)	2,228		—
State and municipal obligations	947		191		(25		)	1,113		—
Asset backed securities	882		56		(1		)	937		—
Foreign government bonds and obligations	236		21		(6		)	251		—
U.S. government and agencies obligations	36		3		—			39		—
Total fixed maturities	21,354		2,010		(121		)	23,243		(6		)
Common stocks	2		5		—			7		3
Total	$	21,356	$	2,015	$	(121	)	$	23,250	$	(3	)

⁽¹⁾  Represents the amount of other-than-temporary impairment (“OTTI”) losses in accumulated other comprehensive income (“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:

	June 30, 2015						December 31, 2014
Ratings	Amortized Cost		Fair Value		Percent of Total Fair Value		Amortized  Cost		Fair Value		Percent of Total Fair Value
	(in millions, except percentages)
AAA	$	4,850	$	5,030	22	%	$	5,111	$	5,374	23	%
AA	953		1,104		5		967		1,158		5
A	4,076		4,537		20		4,452		5,062		22
BBB	9,628		10,300		46		9,328		10,165		44
Below investment grade	1,516		1,507		7		1,496		1,484		6
Total fixed maturities	$	21,023	$	22,478	100	%	$	21,354	$	23,243	100	%

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:

	June 30, 2015
	Less than 12 months						12 months or more						Total
Description of Securities	Number of Securities	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses
	(in millions, except number of securities)
Corporate debt securities	164	$	2,269	$	(67	)	15	$	156	$	(9	)	179	$	2,425	$	(76	)
Residential mortgage backed securities	30	522		(8		)	55	562		(31		)	85	1,084		(39		)
Commercial mortgage backed securities	41	507		(9		)	3	49		(1		)	44	556		(10		)
State and municipal obligations	10	34		(2		)	2	100		(27		)	12	134		(29		)
Asset backed securities	10	132		(2		)	2	13		—			12	145		(2		)
Foreign government bonds and obligations	3	7		—			13	24		(6		)	16	31		(6		)
Total	258	$	3,471	$	(88	)	90	$	904	$	(74	)	348	$	4,375	$	(162	)

	December 31, 2014
	Less than 12 months						12 months or more						Total
Description of Securities	Number of  Securities	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses
	(in millions, except number of securities)
Corporate debt securities	106	$	1,093	$	(36	)	40	$	689	$	(18	)	146	$	1,782	$	(54	)
Residential mortgage backed securities	17	138		(2		)	55	670		(30		)	72	808		(32		)
Commercial mortgage backed securities	9	80		—			9	95		(3		)	18	175		(3		)
State and municipal obligations	1	5		—			2	102		(25		)	3	107		(25		)
Asset backed securities	5	52		—			3	32		(1		)	8	84		(1		)
Foreign government bonds and obligations	4	10		(1		)	14	27		(5		)	18	37		(6		)
Total	142	$	1,378	$	(39	)	123	$	1,615	$	(82	)	265	$	2,993	$	(121	)

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 Income for other-than-temporary impairments related to credit losses on Available-for-Sale securities for which a portion of the securities’ total other-than-temporary impairments was recognized in other comprehensive income (loss):

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2015		2014		2015		2014
	(in millions)
Beginning balance	$	33	$	54	$	33	$	54
Credit losses for which an other-than-temporary impairment was not previously recognized	—		—		—		—
Ending balance	$	33	$	54	$	33	$	54

Other Comprehensive Income Available-for-Sale Securities Disclosure [Table Text Block]

The following table presents a rollforward of the net unrealized securities gains on Available-for-Sale securities included in AOCI:

	Net Unrealized Securities Gains			Deferred Income Tax			AOCI Related to Net Unrealized Securities Gains
	(in millions)
Balance at January 1, 2014	$	1,033		$	(366	)	$	667
Net unrealized securities gains arising during the period (1)	653			(231		)	422
Reclassification of net securities gains included in net income	(5		)	2			(3		)
Impact of other adjustments	(257		)	90			(167		)
Balance at June 30, 2014	$	1,424		$	(505	)	$	919		(2)
Balance at January 1, 2015	$	1,148		$	(407	)	$	741
Net unrealized securities losses arising during the period (1)	(417		)	146			(271		)
Reclassification of net securities gains included in net income	(17		)	6			(11		)
Impact of other adjustments	203			(71		)	132
Balance at June 30, 2015	$	917		$	(326	)	$	591		(2)

⁽¹⁾  Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period.

⁽²⁾   Includes $1 million and $3 million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at June 30, 2015 and 2014, respectively.

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 net realized investment gains were as follows:

	Three Months Ended   June 30,					Six Months Ended   June 30,
	2015		2014			2015			2014
	(in millions)
Gross realized investment gains	$	5	$	3		$	22		$	9
Gross realized investment losses	—		(2		)	(5		)	(3		)
Other-than-temporary impairments	—		—			—			(1		)
Total	$	5	$	1		$	17		$	5

Available-for-Sale Securities Contractual Maturity Disclosure [Table Text Block]

Available-for-Sale securities by contractual maturity at June 30, 2015 were as follows:

	Amortized Cost		Fair Value
	(in millions)
Due within one year	$	1,012	$	1,036
Due after one year through five years	5,203		5,652
Due after five years through 10 years	5,069		5,212
Due after 10 years	3,635		4,279
	14,919		16,179
Residential mortgage backed securities	3,219		3,296
Commercial mortgage backed securities	2,115		2,195
Asset backed securities	770		808
Common stocks	2		7
Total	$	21,025	$	22,485

Schedule of Net Investment Income [Table Text Block]

Net investment income is summarized as follows:

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2015		2014		2015		2014
	(in millions)
Fixed maturities	$	262	$	278	$	526	$	564
Mortgage loans	46		45		91		91
Other investments	3		8		8		17
	311		331		625		672
Less: investment expenses	9		8		17		16
Total	$	302	$	323	$	608	$	656

XML

Derivatives and Hedging Activities

6 Months Ended

Jun. 30, 2015

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 and interest rate indices or prices. The Company primarily enters into derivative agreements for risk management purposes related to the Company’s products and operations.

The Company’s freestanding derivatives are recorded at fair value and are reflected in other assets or other liabilities. The Company’s freestanding derivative instruments are all subject to master netting arrangements. The Company’s policy on the recognition of derivatives on the Consolidated Balance Sheets is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. See Note 11 for additional information regarding the estimated fair value of the Company’s freestanding derivatives after considering the effect of master netting arrangements and collateral.

The Company currently uses derivatives as economic hedges and accounting hedges. The following table presents the balance sheet location and the gross fair value of derivative instruments, including embedded derivatives:

		Assets					Liabilities
Derivatives not designated as hedging instruments	Balance Sheet Location	June 30, 2015		December 31, 2014		Balance Sheet Location	June 30, 2015		December 31, 2014
		(in millions)					(in millions)
GMWB and GMAB
Interest rate contracts	Other assets	$	1,574	$	1,955	Other liabilities	$	1,021	$	1,136
Equity contracts	Other assets	2,036		1,954		Other liabilities	2,576		2,650
Credit contracts	Other assets	9		—		Other liabilities	—		—
Foreign exchange contracts	Other assets	42		29		Other liabilities	5		2
Embedded derivatives (1)	N/A	—		—		Policyholder account balances, future policy benefits and claims (2)	235		479
Total GMWB and GMAB		3,661		3,938			3,837		4,267
Other derivatives:
Equity
EIA embedded derivatives	N/A	—		—		Policyholder account balances, future policy benefits and claims	6		6
IUL	Other assets	26		39		Other liabilities	4		12
IUL embedded derivatives	N/A	—		—		Policyholder account balances, future policy benefits and claims	292		242
Other
Macro hedge program	Other assets	15		—		Other liabilities	13		11
Total other derivatives		41		39			315		271
Total derivatives		$	3,702	$	3,977		$	4,152	$	4,538

N/A Not applicable.

⁽¹⁾  The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.

⁽²⁾  The fair value of the GMWB and GMAB embedded derivatives at June 30, 2015 included $541 million of individual contracts in a liability position and $306 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives at December 31, 2014 included $700 million of individual contracts in a liability position and $221 million of individual contracts in an asset position.

See Note 10 for additional information regarding the Company’s fair value measurement of derivative instruments.

The following table presents a summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income:

		Amount of Gain (Loss) on Derivatives Recognized in Income
Derivatives not designated as hedging instruments	Location of Gain (Loss) on Derivatives Recognized in Income	Three Months Ended June 30,						Six Months Ended   June 30,
		2015			2014			2015			2014
		(in millions)
GMWB and GMAB
Interest rate contracts	Benefits, claims, losses and settlement expenses	$	(562	)	$	245		$	(176	)	$	509
Equity contracts	Benefits, claims, losses and settlement expenses	(137		)	(197		)	(259		)	(387		)
Credit contracts	Benefits, claims, losses and settlement expenses	14			(12		)	5			(22		)
Foreign exchange contracts	Benefits, claims, losses and settlement expenses	(2		)	—			(8		)	(1		)
Embedded derivatives (1)	Benefits, claims, losses and settlement expenses	592			(124		)	244			(228		)
Total GMWB and GMAB		(95		)	(88		)	(194		)	(129		)
Other derivatives:
Interest rate
Tax hedge	Net investment income	—			—			—			3
Equity
EIA	Interest credited to fixed accounts	—			1			—			1
EIA embedded derivatives	Interest credited to fixed accounts	—			(1		)	—			(1		)
IUL	Interest credited to fixed accounts	(2		)	6			(1		)	11
IUL embedded derivatives	Interest credited to fixed accounts	4			(5		)	(5		)	(11		)
Other
Macro hedge program	Benefits, claims, losses and settlement expenses	6			(10		)	—			3
Total other derivatives		8			(9		)	(6		)	6
Total derivatives		$	(87	)	$	(97	)	$	(200	)	$	(123	)

⁽¹⁾  The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.

The Company holds derivative instruments that either do not qualify or are not designated for hedge accounting treatment. These derivative instruments are used as economic hedges of equity, interest rate, credit and foreign currency exchange rate risk related to various products and transactions of the Company.

Certain annuity contracts contain GMWB or GMAB provisions, which guarantee the right to make limited partial withdrawals each contract year regardless of the volatility inherent in the underlying investments or guarantee a minimum accumulation value of consideration received at the beginning of the contract period, after a specified holding period, respectively. The Company economically hedges the exposure related to non-life contingent GMWB and GMAB provisions primarily using various futures, options, interest rate swaptions, interest rate swaps, total return swaps and variance swaps. At June 30, 2015 and December 31, 2014, the gross notional amount of derivative contracts for the Company’s GMWB and GMAB provisions was $137.9 billion and $132.0 billion, respectively.

The deferred premium associated with certain of the above options is paid or received semi-annually over the life of the option contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options:

	Premiums Payable		Premiums Receivable
	(in millions)
2015 (1)	$	185	$	37
2016	326		75
2017	257		75
2018	196		124
2019	241		85
2020-2026	525		204
Total	$	1,730	$	600

⁽¹⁾  2015 amounts represent the amounts payable and receivable for the period from July 1, 2015 to December 31, 2015.

Actual timing and payment amounts may differ due to future contract settlements, modifications or exercises of options prior to the full premium being paid or received.

The Company has a macro hedge program to provide protection against the statutory tail scenario risk arising from variable annuity reserves on its statutory surplus and to cover some of the residual risks not covered by other hedging activities. As a means of economically hedging these risks, the Company uses a combination of options, interest rate swaptions and/or swaps. Certain of the macro hedge derivatives used contain settlement provisions linked to both equity returns and interest rates; the remaining are interest rate contracts or equity contracts. The gross notional amount of these derivative contracts was $3.3 billion and $1.2 billion at June 30, 2015 and December 31, 2014, respectively.

EIA and IUL products have returns tied to the performance of equity markets. As a result of fluctuations in equity markets, the obligation incurred by the Company related to EIA and IUL products will positively or negatively impact earnings over the life of these products. As a means of economically hedging its obligations under the provisions of these products, the Company enters into index options and futures contracts. The gross notional amount of these derivative contracts was $1.2 billion and $953 million at June 30, 2015 and December 31, 2014, respectively.

Embedded Derivatives

Certain annuities contain GMAB and non-life contingent GMWB provisions, which are considered embedded derivatives. In addition, the equity component of the EIA and IUL product obligations are also considered embedded derivatives. These embedded derivatives are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. As discussed above, the Company uses derivatives to mitigate the financial statement impact of these embedded derivatives.

Cash Flow Hedges

The Company has amounts classified in AOCI related to gains and losses associated with the effective portion of previously designated cash flow hedges. The Company reclassifies these amounts into income as the forecasted transactions impact earnings. During the six months ended June 30, 2015, the Company held no derivatives that were designated as cash flow hedges.

At June 30, 2015, the Company expects to reclassify $6 million of deferred loss on derivative instruments from AOCI to earnings during the next 12 months that will be recorded in net investment income. These were originally losses on derivative instruments related to interest rate swaptions. During the six months ended June 30, 2015 and 2014, no hedge relationships were discontinued due to forecasted transactions no longer being expected to occur according to the original hedge strategy. For the six months ended June 30, 2015 and 2014, amounts recognized in earnings on derivative transactions that were ineffective were not material.

The following table presents a rollforward of unrealized derivative losses related to cash flow hedges included in AOCI:

	2015			2014
	(in millions)
Net unrealized derivative losses at January 1	$	(12	)	$	(17	)
Reclassification of realized losses (1)	3			3
Income tax provision	(1		)	(1		)
Net unrealized derivative losses at June 30	$	(10	)	$	(15	)

⁽¹⁾  Loss reclassified from AOCI to net investment income on the Consolidated Statements of Income.

Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is four years and relates to interest credited on forecasted fixed premium product sales.

Credit Risk

Credit risk associated with the Company’s derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative contract. To mitigate such risk, the Company has established guidelines and oversight of credit risk through a comprehensive enterprise risk management program that includes members of senior management. Key components of this program are to require preapproval of counterparties and the use of master netting arrangements and collateral arrangements whenever practical. See Note 11 for additional information on the Company’s credit exposure related to derivative assets.

Certain of the Company’s derivative contracts contain provisions that adjust the level of collateral the Company is required to post based on the Company’s financial strength rating (or based on the debt rating of the Company’s parent, Ameriprise Financial). Additionally, certain of the Company’s derivative contracts contain provisions that allow the counterparty to terminate the contract if the Company does not maintain a specific financial strength rating or Ameriprise Financial’s debt does not maintain a specific credit rating (generally an investment grade rating). If these termination provisions were to be triggered, the Company’s counterparty could require immediate settlement of any net liability position. At June 30, 2015 and December 31, 2014, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $418 million and $367 million, respectively. The aggregate fair value of assets posted as collateral for such instruments as of June 30, 2015 and December 31, 2014 was $418 million and $367 million, respectively. If the credit contingent provisions of derivative contracts in a net liability position at June 30, 2015 and December 31, 2014 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 for both periods.

XML

Variable Annuity and Insurance Guarantees

6 Months Ended

Jun. 30, 2015

Insurance [Abstract]

Variable Annuity and Insurance Guarantees

Variable Annuity and Insurance Guarantees

The majority of the variable annuity contracts offered by the Company contain guaranteed minimum death benefit (“GMDB”) provisions. The Company also offers variable annuities with death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as gain gross-up (“GGU”) benefits. In addition, the Company offers contracts with GMWB and GMAB provisions. The Company previously offered contracts containing guaranteed minimum income benefit (“GMIB”) provisions.

Certain UL policies offered by the Company provide secondary guarantee benefits. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges.

The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities:

	June 30, 2015							December 31, 2014
Variable Annuity Guarantees by  Benefit Type (1)	Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk		Weighted Average Attained Age	Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk		Weighted Average Attained Age
	(in millions, except age)
GMDB:
Return of premium	$	56,176	$	54,345	$	47	64	$	55,378	$	53,565	$	24	64
Five/six-year reset	10,008		7,462		31		65	10,360		7,821		28		64
One-year ratchet	7,223		6,846		69		67	7,392		7,006		39		66
Five-year ratchet	1,734		1,677		4		63	1,773		1,717		2		63
Other	926		909		45		70	959		941		38		70
Total — GMDB	$	76,067	$	71,239	$	196	64	$	75,862	$	71,050	$	131	64
GGU death benefit	$	1,097	$	1,045	$	123	67	$	1,072	$	1,019	$	123	67
GMIB	$	310	$	288	$	10	67	$	343	$	321	$	9	67
GMWB:
GMWB	$	3,478	$	3,467	$	1	68	$	3,671	$	3,659	$	1	68
GMWB for life	37,753		37,629		137		66	36,843		36,735		95		65
Total — GMWB	$	41,231	$	41,096	$	138	66	$	40,514	$	40,394	$	96	65
GMAB	$	4,246	$	4,229	$	5	58	$	4,247	$	4,234	$	2	58

⁽¹⁾  Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table.

The net amount at risk for GMDB, GGU and GMAB guarantees is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB and GMWB guarantees is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero. The present value is calculated using a discount rate that is consistent with assumptions embedded in the Company’s annuity pricing models.

The following table provides information related to insurance guarantees for which the Company has established additional liabilities:

	June 30, 2015			December 31, 2014
	Net Amount at Risk		Weighted Average Attained Age	Net Amount at Risk		Weighted Average Attained Age
	(in millions, except age)
UL secondary guarantees	$	6,258	63	$	6,076	62

The net amount at risk for UL secondary guarantees is defined as the current guaranteed death benefit amount in excess of the current policyholder value.

Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows:

	GMDB & GGU			GMIB		GMWB (1)			GMAB (1)			UL
	(in millions)
Balance at January 1, 2014	$	4		$	6	$	(383	)	$	(62	)	$	206
Incurred claims	2			—		252			(14		)	39
Paid claims	(2		)	—		—			—			(9		)
Balance at June 30, 2014	$	4		$	6	$	(131	)	$	(76	)	$	236
Balance at January 1, 2015	$	9		$	7	$	693		$	(41	)	$	263
Incurred claims	1			—		(225		)	(4		)	45
Paid claims	(1		)	—		—			—			(12		)
Balance at June 30, 2015	$	9		$	7	$	468		$	(45	)	$	296

⁽¹⁾  The incurred claims for GMWB and GMAB represent the total change in the liabilities (contra liabilities).

The liabilities for guaranteed benefits are supported by general account assets.

The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits:

	June 30, 2015		December 31, 2014
	(in millions)
Mutual funds:
Equity	$	41,180	$	41,403
Bond	24,736		25,060
Other	5,062		4,490
Total mutual funds	$	70,978	$	70,953

XML

Derivatives and Hedging Activities (Balance Sheet) (Details) - USD ($) $ in Millions		Jun. 30, 2015	Dec. 31, 2014
Derivatives and Hedging Activities
Derivative asset, fair value, gross asset		$ 3,702	$ 3,977
GMWB and GMAB [Member] | GMWB and GMAB embedded derivatives [Member] | PAB, FPB and claims [Member]
Derivatives and Hedging Activities
Derivative asset, fair value, gross asset		306	221
Derivative liability, fair value, gross liability		541	700
Derivatives not designated as hedging instruments [Member]
Derivatives and Hedging Activities
Derivative asset, fair value, gross asset		3,702	3,977
Derivative liability, fair value, gross liability		4,152	4,538
Derivatives not designated as hedging instruments [Member] | GMWB and GMAB [Member]
Derivatives and Hedging Activities
Derivative asset, fair value, gross asset		3,661	3,938
Derivative liability, fair value, gross liability		3,837	4,267
Derivatives not designated as hedging instruments [Member] | GMWB and GMAB [Member] | Interest rate contracts [Member] | Other assets [Member]
Derivatives and Hedging Activities
Derivative asset, fair value, gross asset		1,574	1,955
Derivatives not designated as hedging instruments [Member] | GMWB and GMAB [Member] | Interest rate contracts [Member] | Other liabilities [Member]
Derivatives and Hedging Activities
Derivative liability, fair value, gross liability		1,021	1,136
Derivatives not designated as hedging instruments [Member] | GMWB and GMAB [Member] | Equity contracts [Member] | Other assets [Member]
Derivatives and Hedging Activities
Derivative asset, fair value, gross asset		2,036	1,954
Derivatives not designated as hedging instruments [Member] | GMWB and GMAB [Member] | Equity contracts [Member] | Other liabilities [Member]
Derivatives and Hedging Activities
Derivative liability, fair value, gross liability		2,576	2,650
Derivatives not designated as hedging instruments [Member] | GMWB and GMAB [Member] | Credit contracts [Member] | Other assets [Member]
Derivatives and Hedging Activities
Derivative asset, fair value, gross asset		9
Derivatives not designated as hedging instruments [Member] | GMWB and GMAB [Member] | Foreign exchange contracts [Member] | Other assets [Member]
Derivatives and Hedging Activities
Derivative asset, fair value, gross asset		42	29
Derivatives not designated as hedging instruments [Member] | GMWB and GMAB [Member] | Foreign exchange contracts [Member] | Other liabilities [Member]
Derivatives and Hedging Activities
Derivative liability, fair value, gross liability		5	2
Derivatives not designated as hedging instruments [Member] | GMWB and GMAB [Member] | GMWB and GMAB embedded derivatives [Member] | PAB, FPB and claims [Member]
Derivatives and Hedging Activities
Derivative liability, fair value, gross liability	[1],[2]	235	479
Derivatives not designated as hedging instruments [Member] | EIA embedded derivatives [Member] | Equity contracts [Member] | PAB, FPB and claims [Member]
Derivatives and Hedging Activities
Derivative liability, fair value, gross liability		6	6
Derivatives not designated as hedging instruments [Member] | IUL [Member] | Equity contracts [Member] | Other assets [Member]
Derivatives and Hedging Activities
Derivative asset, fair value, gross asset		26	39
Derivatives not designated as hedging instruments [Member] | IUL [Member] | Equity contracts [Member] | Other liabilities [Member]
Derivatives and Hedging Activities
Derivative liability, fair value, gross liability		4	12
Derivatives not designated as hedging instruments [Member] | IUL embedded derivatives [Member] | Equity contracts [Member] | PAB, FPB and claims [Member]
Derivatives and Hedging Activities
Derivative liability, fair value, gross liability		292	242
Derivatives not designated as hedging instruments [Member] | Macro hedge program [Member] | Other contracts [Member] | Other assets [Member]
Derivatives and Hedging Activities
Derivative asset, fair value, gross asset		15
Derivatives not designated as hedging instruments [Member] | Macro hedge program [Member] | Other contracts [Member] | Other liabilities [Member]
Derivatives and Hedging Activities
Derivative liability, fair value, gross liability		13	11
Derivatives not designated as hedging instruments [Member] | Other derivatives [Member]
Derivatives and Hedging Activities
Derivative asset, fair value, gross asset		41	39
Derivative liability, fair value, gross liability		$ 315	$ 271

[1] The fair value of the GMWB and GMAB embedded derivatives at June 30, 2015 included $541 million of individual contracts in a liability position and $306 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives at December 31, 2014 included $700 million of individual contracts in a liability position and $221 million of individual contracts in an asset position.

[2] The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.

XML

Deferred Acquisition Costs and Deferred Sales Inducement Costs

6 Months Ended

Jun. 30, 2015

Deferred Acquisition Costs and Deferred Sales Inducement Costs

Deferred Acquisition Costs and Deferred Sales Inducement Costs

DeferredAcquisitionCostsand Deferred Sales Inducement Costs

The balances of and changes in DAC were as follows:

	2015			2014
	(in millions)
Balance at January 1	$	2,576		$	2,633
Capitalization of acquisition costs	130			129
Amortization	(129		)	(132		)
Impact of change in net unrealized securities losses (gains)	47			(52		)
Balance at June 30	$	2,624		$	2,578

The balances of and changes in DSIC, which are included in other assets, were as follows:

	2015			2014
	(in millions)
Balance at January 1	$	361		$	409
Capitalization of sales inducement costs	2			3
Amortization	(25		)	(25		)
Impact of change in net unrealized securities losses (gains)	7			(8		)
Balance at June 30	$	345		$	379

XML

Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities

6 Months Ended

Jun. 30, 2015

Policyholder Account Balances, Future Policy Benefits and Claims & Separate Account Liabilities

Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities

Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities

Policyholder account balances, future policy benefits and claims consisted of the following:

	June 30, 2015			December 31, 2014
	(in millions)
Policyholder account balances
Fixed annuities	$	11,734		$	12,700
Variable annuity fixed sub-accounts	4,874			4,860
Variable universal life (“VUL”)/universal life (“UL”) insurance	2,872			2,856
Indexed universal life (“IUL”) insurance	661			534
Other life insurance	812			840
Total policyholder account balances	20,953			21,790
Future policy benefits
Variable annuity guaranteed minimum withdrawal benefits (“GMWB”)	468			693
Variable annuity guaranteed minimum accumulation benefits (“GMAB”) (1)	(45		)	(41		)
Other annuity liabilities	48			115
Fixed annuities life contingent liabilities	1,504			1,511
Equity indexed annuities (“EIA”)	29			29
Life, disability income and long term care insurance	5,173			5,106
VUL/UL and other life insurance additional liabilities	438			437
Total future policy benefits	7,615			7,850
Policy claims and other policyholders’ funds	176			165
Total policyholder account balances, future policy benefits and claims	$	28,744		$	29,805

⁽¹⁾  Includes the value of GMAB embedded derivatives that was a net asset at both June 30, 2015 and December 31, 2014 reported as a contra liability.

Separate account liabilities consisted of the following:

	June 30, 2015		December 31, 2014
	(in millions)
Variable annuity	$	72,264	$	72,125
VUL insurance	7,026		7,016
Other insurance	36		37
Total	$	79,326	$	79,178

XML

Short-term Borrowings

6 Months Ended

Jun. 30, 2015

Short-term Debt [Abstract]

Short-term Borrowings [Text Block]

Short-term Borrowings

The Company enters into repurchase agreements in exchange for cash which it accounts for as secured borrowings and has pledged Available-for-Sale securities to collateralize its obligations under the repurchase agreements. As of June 30, 2015 and December 31, 2014, the Company has pledged $23 million and $18 million, respectively, of agency residential mortgage backed securities and $29 million and $34 million, respectively, of commercial mortgage backed securities. The amount of the Company’s liability including accrued interest as of both June 30, 2015 and December 31, 2014 was $50 million. The remaining maturity of outstanding repurchase agreements was less than two months as of June 30, 2015 and less than four months as of December 31, 2014. The weighted average annualized interest rate on the repurchase agreements held as of both June 30, 2015 and December 31, 2014 was 0.4%.

RiverSource Life Insurance Company is a member of the Federal Home Loan Bank (“FHLB”) of Des Moines which provides access to collateralized borrowings. The Company has pledged Available-for-Sale securities consisting of commercial mortgage backed securities to collateralize its obligation under these borrowings. The fair value of the securities pledged is recorded in investments and was $303 million and $298 million as of June 30, 2015 and December 31, 2014, respectively. The amount of the Company’s liability including accrued interest as of both June 30, 2015 and December 31, 2014 was $150 million. The remaining maturity of outstanding FHLB advances was less than three months as of June 30, 2015 and less than two months as of December 31, 2014. The weighted average annualized interest rate on the FHLB advances held as of both June 30, 2015 and December 31, 2014 was 0.3%.

XML

Derivatives and Hedging Activities (Cash Flow Hedge Info) (Details) - USD ($) $ in Millions		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014
Summary of Cash Flow Hedge Activity [Abstract]
Derivatives designated as cash flow hedges		$ 0
Cash flow hedge loss to be reclassified within twelve months		$ 6
Longest period of time over which the entity hedges exposure to the variability in future cash flows		4 years
Rollforward of unrealized derivative losses included in AOCI related to cash flow hedges
Net unrealized derivative losses at the beginning of the period		$ (12)	$ (17)
Reclassification of realized losses	[1]	3	3
Income tax provision		(1)	(1)
Net unrealized derivative losses at the end of the period		$ (10)	$ (15)

[1] Loss reclassified from AOCI to net investment income on the Consolidated Statements of Income

XML

Shareholder's Equity (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Amounts Reclassified from AOCI
Net realized investment gains	$ 6	$ 1	$ 16	$ 5
Net investment income	302	323	608	656
Income tax provision	(55)	(49)	(104)	(87)
Net income	253	243	466	541
Net unrealized gains on Available-for-Sale securities [Member] | Amount reclassified from AOCI [Member]
Amounts Reclassified from AOCI
Net realized investment gains	(5)	(1)	(17)	(5)
Income tax provision	2	1	6	2
Net income	(3)	0	(11)	(3)
Losses on cash flow hedges [Member] | Amount reclassified from AOCI [Member]
Amounts Reclassified from AOCI
Net investment income	1	1	3	3
Income tax provision	0	0	(1)	(1)
Net income	$ 1	$ 1	$ 2	$ 2

XML

Derivatives and Hedging Activities (Option Pay/Rec) (Details) $ in Millions		Jun. 30, 2015 USD ($)
Summary of option premiums payable and receivable
Premiums payable		$ 1,730
Premiums receivable		600
2015 [Member]
Summary of option premiums payable and receivable
Premiums payable	[1]	185
Premiums receivable	[1]	37
2016 [Member]
Summary of option premiums payable and receivable
Premiums payable		326
Premiums receivable		75
2017 [Member]
Summary of option premiums payable and receivable
Premiums payable		257
Premiums receivable		75
2018 [Member]
Summary of option premiums payable and receivable
Premiums payable		196
Premiums receivable		124
2019 [Member]
Summary of option premiums payable and receivable
Premiums payable		241
Premiums receivable		85
2020-2026 [Member]
Summary of option premiums payable and receivable
Premiums payable		525
Premiums receivable		$ 204

[1] 2015 amounts represent the amounts payable and receivable for the period from July 1, 2015 to December 31, 2015.

XML

Investments (AFS by type) (Details) - USD ($) $ in Millions		Jun. 30, 2015	Dec. 31, 2014
Investments
Amortized cost		$ 21,025	$ 21,356
Gross unrealized gains		1,622	2,015
Gross unrealized losses		(162)	(121)
Fair value		22,485	23,250
Noncredit OTTI	[1]	(2)	(3)
Securities owned and pledged as collateral, fair value		1,200	1,200
Corporate debt securities [Member]
Investments
Amortized cost		13,717	13,763
Gross unrealized gains		1,211	1,474
Gross unrealized losses		(76)	(54)
Fair value		14,852	15,183
Noncredit OTTI	[1]	3	3
Residential mortgage backed securities [Member]
Investments
Amortized cost		3,219	3,374
Gross unrealized gains		116	150
Gross unrealized losses		(39)	(32)
Fair value		3,296	3,492
Noncredit OTTI	[1]	(8)	(9)
Commercial mortgage backed securities [Member]
Investments
Amortized cost		2,115	2,116
Gross unrealized gains		90	115
Gross unrealized losses		(10)	(3)
Fair value		2,195	2,228
State and municipal obligations [Member]
Investments
Amortized cost		940	947
Gross unrealized gains		138	191
Gross unrealized losses		(29)	(25)
Fair value		1,049	1,113
Asset backed securities [Member]
Investments
Amortized cost		770	882
Gross unrealized gains		40	56
Gross unrealized losses		(2)	(1)
Fair value		808	937
Foreign government bonds and obligations [Member]
Investments
Amortized cost		225	236
Gross unrealized gains		20	21
Gross unrealized losses		(6)	(6)
Fair value		239	251
U.S. government and agencies obligations [Member]
Investments
Amortized cost		37	36
Gross unrealized gains		2	3
Fair value		39	39
Total fixed maturities [Member]
Investments
Amortized cost		21,023	21,354
Gross unrealized gains		1,617	2,010
Gross unrealized losses		(162)	(121)
Fair value		22,478	23,243
Noncredit OTTI	[1]	(5)	(6)
Common stocks [Member]
Investments
Amortized cost		2	2
Gross unrealized gains		5	5
Fair value		7	7
Noncredit OTTI	[1]	$ 3	$ 3

[1] Represents the amount of other-than-temporary impairment (“OTTI”) losses in accumulated other comprehensive income (“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.

XML

Variable Annuity and Insurance Guarantees (Separate account balance by type) (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Mutual funds
Variable Annuity and Insurance Guarantees
Total mutual funds	$ 70,978	$ 70,953
Equity [Member]
Variable Annuity and Insurance Guarantees
Total mutual funds	41,180	41,403
Bond [Member]
Variable Annuity and Insurance Guarantees
Total mutual funds	24,736	25,060
Other [Member]
Variable Annuity and Insurance Guarantees
Total mutual funds	$ 5,062	$ 4,490

XML

Income Taxes

6 Months Ended

Jun. 30, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company’s effective tax rate was 17.9% and 16.8% for the three months ended June 30, 2015 and 2014, respectively. The Company’s effective tax rate was 18.2% and 13.8% for the six months ended June 30, 2015 and 2014, respectively. The effective tax rates are lower than the statutory rate as a result of tax preferred items including the dividends received deduction and low income housing tax credits. The increase in the effective tax rate for the six months ended June 30, 2015 compared to the prior year period was the result of an $18 million benefit in the first quarter of 2014 related to the completion of an Internal Revenue Service (“IRS”) audit.

Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $7 million which will expire beginning December 31, 2015.

The Company is required to establish a valuation allowance for any portion of the deferred tax assets that management believes will not be realized. Included in deferred tax assets is a significant deferred tax asset relating to capital losses that have been recognized for financial statement purposes but not yet for tax return purposes as well as future deductible capital losses realized for tax return purposes. Under current U.S. federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes. Significant judgment is required in determining if a valuation allowance should be established, and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business. Consideration is given to, among other things in making this determination, (i) future taxable income exclusive of reversing temporary differences and carryforwards, (ii) future reversals of existing taxable temporary differences, (iii) taxable income in prior carryback years, and (iv) tax planning strategies. Based on analysis of the Company’s tax position, management believes it is more likely than not that the results of future operations and implementation of tax planning strategies will not allow the Company to realize certain state deferred tax assets and state net operating losses. The valuation allowance for state deferred tax assets and state net operating losses was $8 million at both June 30, 2015 and December 31, 2014.

As of both June 30, 2015 and December 31, 2014, the Company had $160 million of gross unrecognized tax benefits. If recognized, approximately $7 million, net of federal tax benefits, of unrecognized tax benefits at both June 30, 2015 and December 31, 2014 would affect the effective tax rate.

It is reasonably possible that the total amounts of unrecognized tax benefits will change in the next 12 months. Based on the current audit position of the Company, it is estimated that the total amount of gross unrecognized tax benefits may decrease by $150 million to $160 million in the next 12 months due to resolution of IRS examinations.

The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized a net increase of $1 million and $2 million in interest and penalties for the three months ended June 30, 2015 and 2014, respectively.The Company recognized a net increase of $1 million in interest and penalties for both the six months ended June 30, 2015 and 2014. At June 30, 2015 and December 31, 2014, the Company had a payable of $41 million and $40 million, respectively, related to accrued interest and penalties.

The Company or one or more of its subsidiaries files income tax returns as part of its inclusion in the consolidated federal income tax returns of Ameriprise Financial in the U.S. federal jurisdiction and various state jurisdictions. The IRS has completed its field examination of the 1997 through 2011 tax returns. However, for federal income tax purposes, these years, except for 2007, continue to remain open as a consequence of certain unagreed-upon issues. The IRS is currently auditing the Company’s U.S. income tax returns for 2012 and 2013. The Company’s or certain of its subsidiaries’ state income tax returns are currently under examination by various jurisdictions for years ranging from 1997 through 2012 and remain open for all years after 2012.

XML

Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Tables)

6 Months Ended

Jun. 30, 2015

Policyholder Account Balances, Future Policy Benefits and Claims & Separate Account Liabilities

Policyholder account balances, future policy benefits and unpaid claims disclosure

Policyholder account balances, future policy benefits and claims consisted of the following:

	June 30, 2015			December 31, 2014
	(in millions)
Policyholder account balances
Fixed annuities	$	11,734		$	12,700
Variable annuity fixed sub-accounts	4,874			4,860
Variable universal life (“VUL”)/universal life (“UL”) insurance	2,872			2,856
Indexed universal life (“IUL”) insurance	661			534
Other life insurance	812			840
Total policyholder account balances	20,953			21,790
Future policy benefits
Variable annuity guaranteed minimum withdrawal benefits (“GMWB”)	468			693
Variable annuity guaranteed minimum accumulation benefits (“GMAB”) (1)	(45		)	(41		)
Other annuity liabilities	48			115
Fixed annuities life contingent liabilities	1,504			1,511
Equity indexed annuities (“EIA”)	29			29
Life, disability income and long term care insurance	5,173			5,106
VUL/UL and other life insurance additional liabilities	438			437
Total future policy benefits	7,615			7,850
Policy claims and other policyholders’ funds	176			165
Total policyholder account balances, future policy benefits and claims	$	28,744		$	29,805

⁽¹⁾  Includes the value of GMAB embedded derivatives that was a net asset at both June 30, 2015 and December 31, 2014 reported as a contra liability.

Schedule of Separate Account Liabilities by Policy Type

Separate account liabilities consisted of the following:

	June 30, 2015		December 31, 2014
	(in millions)
Variable annuity	$	72,264	$	72,125
VUL insurance	7,026		7,016
Other insurance	36		37
Total	$	79,326	$	79,178

XML

Variable Annuity and Insurance Guarantees Variable Annuity and Insurance Guarantees (UL Secondary Guarantees) (Details) - UL secondary guarantees [Member] - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Insurance Guarantees by Benefit Type
Net amount at risk	$ 6,258	$ 6,076
Weighted average attained age	63 years	62 years

XML

Investments (Net Inv Inc summary) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net Investment Income [Line Items]
Gross investment income	$ 311	$ 331	$ 625	$ 672
Less: investment expenses	9	8	17	16
Total	302	323	608	656
Fixed maturities [Member]
Net Investment Income [Line Items]
Gross investment income	262	278	526	564
Mortgage loans [Member]
Net Investment Income [Line Items]
Gross investment income	46	45	91	91
Other investments [Member]
Net Investment Income [Line Items]
Gross investment income	$ 3	$ 8	$ 8	$ 17

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 253	$ 243	$ 466	$ 541
Net unrealized gains (losses) on securities:
Net unrealized securities gains (losses) arising during the period	(411)	214	(271)	422
Reclassification of net securities gains included in net income	(3)	0	(11)	(3)
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables	201	(76)	132	(167)
Total net unrealized gains (losses) on securities	(213)	138	(150)	252
Net unrealized losses on derivatives:
Reclassification of net derivative losses included in net income	1	1	2	2
Total net unrealized losses on derivatives	1	1	2	2
Total other comprehensive income (loss), net of tax	(212)	139	(148)	254
Total comprehensive income	$ 41	$ 382	$ 318	$ 795

XML

Variable Interest Entities

6 Months Ended

Jun. 30, 2015

Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract]

Variable Interest Entities [Text Block]

Variable Interest Entities

The Company has variable interests in affordable housing partnerships for which it is not the primary beneficiary and therefore does not consolidate. The Company’s maximum exposure to loss as a result of its investments in affordable housing partnerships is limited to the carrying value of these investments. The carrying value is reflected in other investments and was $494 million and $504 million as of June 30, 2015 and December 31, 2014, respectively. The Company has no obligation to provide financial or other support to the affordable housing partnerships in addition to liabilities already recorded for future funding commitments nor has it provided any additional support to the affordable housing partnerships.

The Company invests in structured investments which are considered VIEs for which it is not the sponsor. These structured investments typically invest in fixed income instruments and are managed by third parties and include asset backed securities, commercial mortgage backed securities and residential mortgage backed securities. The Company classifies these investments as Available-for-Sale securities. The Company has determined that it is not the primary beneficiary of these structures due to the size of the Company’s investment in the entities and position in the capital structure of these entities. The Company’s maximum exposure to loss as a result of its investment in these structured investments is limited to its carrying value. The carrying value is included in Available-for-Sale fixed maturities on the consolidated balance sheets. The Company has no obligation to provide financial or other support to the structured investments beyond its investment nor has the Company provided any support to the structured investments. See Note 4 for additional information about these structured investments.

XML

Offsetting Assets and Liabilities (Assets) (Details) - USD ($) $ in Millions		Jun. 30, 2015	Dec. 31, 2014
Derivatives:
Gross amounts of recognized assets		$ 3,702	$ 3,977
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial instruments	[1]	(2,988)	(3,156)
Cash collateral		(334)	(310)
Securities collateral		(215)	(418)
Net amount		165	93
OTC derivatives [Member]
Derivatives:
Gross amounts of recognized assets		3,305	3,612
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial instruments	[1]	(2,747)	(2,934)
Cash collateral		(254)	(228)
Securities collateral		(215)	(418)
Net amount		89	32
OTC cleared derivatives [Member]
Derivatives:
Gross amounts of recognized assets		321	304
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial instruments	[1]	(241)	(222)
Cash collateral		(80)	(82)
Net amount		0	0
Exchange-traded derivatives [Member]
Derivatives:
Gross amounts of recognized assets		76	61
Gross Amounts Not Offset in the Consolidated Balance Sheets
Net amount		$ 76	$ 61

[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.

XML

Variable Annuity and Insurance Guarantees (Tables)

6 Months Ended

Jun. 30, 2015

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:

	June 30, 2015							December 31, 2014
Variable Annuity Guarantees by  Benefit Type (1)	Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk		Weighted Average Attained Age	Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk		Weighted Average Attained Age
	(in millions, except age)
GMDB:
Return of premium	$	56,176	$	54,345	$	47	64	$	55,378	$	53,565	$	24	64
Five/six-year reset	10,008		7,462		31		65	10,360		7,821		28		64
One-year ratchet	7,223		6,846		69		67	7,392		7,006		39		66
Five-year ratchet	1,734		1,677		4		63	1,773		1,717		2		63
Other	926		909		45		70	959		941		38		70
Total — GMDB	$	76,067	$	71,239	$	196	64	$	75,862	$	71,050	$	131	64
GGU death benefit	$	1,097	$	1,045	$	123	67	$	1,072	$	1,019	$	123	67
GMIB	$	310	$	288	$	10	67	$	343	$	321	$	9	67
GMWB:
GMWB	$	3,478	$	3,467	$	1	68	$	3,671	$	3,659	$	1	68
GMWB for life	37,753		37,629		137		66	36,843		36,735		95		65
Total — GMWB	$	41,231	$	41,096	$	138	66	$	40,514	$	40,394	$	96	65
GMAB	$	4,246	$	4,229	$	5	58	$	4,247	$	4,234	$	2	58

⁽¹⁾  Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table.

Schedule Of Net Amount Of Risk UL Secondary Guarantees [Table Text Block]

The following table provides information related to insurance guarantees for which the Company has established additional liabilities:

	June 30, 2015			December 31, 2014
	Net Amount at Risk		Weighted Average Attained Age	Net Amount at Risk		Weighted Average Attained Age
	(in millions, except age)
UL secondary guarantees	$	6,258	63	$	6,076	62

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, 2014	$	4		$	6	$	(383	)	$	(62	)	$	206
Incurred claims	2			—		252			(14		)	39
Paid claims	(2		)	—		—			—			(9		)
Balance at June 30, 2014	$	4		$	6	$	(131	)	$	(76	)	$	236
Balance at January 1, 2015	$	9		$	7	$	693		$	(41	)	$	263
Incurred claims	1			—		(225		)	(4		)	45
Paid claims	(1		)	—		—			—			(12		)
Balance at June 30, 2015	$	9		$	7	$	468		$	(45	)	$	296

⁽¹⁾  The incurred claims for GMWB and GMAB represent the total change in the liabilities (contra liabilities).

Schedule of Separate Account Balances By Asset Type [Table Text Block]

The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits:

	June 30, 2015		December 31, 2014
	(in millions)
Mutual funds:
Equity	$	41,180	$	41,403
Bond	24,736		25,060
Other	5,062		4,490
Total mutual funds	$	70,978	$	70,953

XML

Investments (OCI rollforward) (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Rollforward of the net unrealized securities gains (losses) on Available-for-Sale securities included in accumulated other comprehensive income
Net unrealized securities gains (losses) arising during the period, net of tax		$ (411)	$ 214	$ (271)	$ 422
Reclassification of net securities gains included in net income, net of tax		(3)	0	(11)	(3)
Impact of other adjustments, net of tax		201	(76)	132	(167)
Net unrealized securities gains/losses, gross [Member]
Rollforward of the net unrealized securities gains (losses) on Available-for-Sale securities included in accumulated other comprehensive income
Balance at the beginning of the period				1,148	1,033
Net unrealized securities gains (losses) arising during the period	[1]			(417)	653
Reclassification of net securities gains included in net income				(17)	(5)
Impact of other adjustments				203	(257)
Balance at the end of the period		917	1,424	917	1,424
Deferred income tax [Member]
Rollforward of the net unrealized securities gains (losses) on Available-for-Sale securities included in accumulated other comprehensive income
Balance at the beginning of the period				(407)	(366)
Net unrealized securities (gains) losses arising during the period	[1]			146	(231)
Reclassification of net securities gains included in net income				6	2
Impact of other adjustments				(71)	90
Balance at the end of the period		(326)	(505)	(326)	(505)
Net unrealized securities gains/losses, net of tax [Member]
Rollforward of the net unrealized securities gains (losses) on Available-for-Sale securities included in accumulated other comprehensive income
Balance at the beginning of the period				741	667
Net unrealized securities gains (losses) arising during the period, net of tax	[1]			(271)	422
Reclassification of net securities gains included in net income, net of tax				(11)	(3)
Impact of other adjustments, net of tax				132	(167)
Balance at the end of the period	[2]	591	919	591	919
Noncredit related impairments on securities and net unrealized securities losses on previously impaired securities, included in AOCI		$ (1)	$ (3)	$ (1)	$ (3)

[1] Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period.

[2] Includes $1 million and $3 million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at June 30, 2015 and 2014, respectively.

XML

Shareholder's Equity

6 Months Ended

Jun. 30, 2015

Stockholders' Equity Note [Abstract]

Shareholder's Equity [Text Block]

Shareholder’s Equity

The following table provides information related to amounts reclassified from AOCI:

		Three Months Ended June 30,						Six Months Ended   June 30,
AOCI Reclassification	Location of (Gain) Loss Recognized in Income	2015			2014			2015			2014
		(in millions)
Net unrealized gains on Available-for-Sale securities	Net realized investment gains	$	(5	)	$	(1	)	$	(17	)	$	(5	)
Tax expense	Income tax provision	2			1			6			2
Net of tax		$	(3	)	$	—		$	(11	)	$	(3	)
Losses on cash flow hedges:
Swaptions	Net investment income	$	1		$	1		$	3		$	3
Tax benefit	Income tax provision	—			—			(1		)	(1		)
Net of tax		$	1		$	1		$	2		$	2

See Note 4 for additional information related to the impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverable on net unrealized securities gains/losses included in AOCI. See Note 12 for additional information regarding the Company’s cash flow hedges.