10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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

For the Quarterly Period Ended September 30, 2017

OR

o TRANSITION 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 xNo 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 xNo o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filero	Accelerated Filero
Non-Accelerated Filerx (Do not check if a smaller reporting company)	Smaller reporting companyo
	Emerging growth companyo
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 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 November 1, 2017
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 — September 30, 2017 and December 31, 2016	3
Consolidated Statements of Income — Three months and nine months ended September 30, 2017 and 2016	4
Consolidated Statements of Comprehensive Income — Three months and nine months ended September 30, 2017 and 2016	4
Consolidated Statements of Shareholder’s Equity — Nine months ended September 30, 2017 and 2016	5
Consolidated Statements of Cash Flows — Nine months ended September 30, 2017 and 2016	6
Notes to Consolidated Financial Statements	8
1. Basis of Presentation	8
2. Recent Accounting Pronouncements	8
3. Variable Interest Entities	10
4. Investments	10
5. Financing Receivables	13
6. Deferred Acquisition Costs and Deferred Sales Inducement Costs	15
7. Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities	16
8. Variable Annuity and Insurance Guarantees	16
9. Short-term Borrowings	18
10. Fair Values of Assets and Liabilities	18
11. Offsetting Assets and Liabilities	28
12. Derivatives and Hedging Activities	30
13. Shareholder’s Equity	33
14. Income Taxes	35
15. Contingencies	36
Item 2.  Management’s Narrative Analysis	37
Item 4.  Controls and Procedures	46
Part II.  Other Information	46
Item 1.  Legal Proceedings	46
Item 1A.  Risk Factors	46
Item 6.  Exhibits	47
Signatures	48

2

RIVERSOURCE LIFE INSURANCE COMPANY

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS 

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	September 30, 2017		December 31, 2016
	(in millions, except share amounts)
Assets
Investments:
Available-for-Sale:
Fixed maturities, at fair value (amortized cost: 2017, $20,732; 2016, $21,464)	$	22,163	$	22,682
Common stocks, at fair value (cost: 2017 and 2016, $4)	8		10
Mortgage loans (net of allowance for loan losses: 2017 and 2016, $19) (portion measured at fair value: 2017, $251; 2016, nil)	2,880		2,874
Policy loans	841		830
Other investments	957		998
Total investments	26,849		27,394
Cash and cash equivalents	734		323
Reinsurance recoverables	2,846		2,623
Other receivables	213		262
Accrued investment income	221		237
Deferred acquisition costs	2,624		2,611
Other assets	4,130		4,305
Separate account assets	80,654		76,298
Total assets	$	118,271	$	114,053
Liabilities and Shareholder’s Equity
Liabilities:
Policyholder account balances, future policy benefits and claims	$	29,242	$	29,514
Short-term borrowings	201		200
Other liabilities	4,369		4,253
Separate account liabilities	80,654		76,298
Total liabilities	114,466		110,265
Shareholder’s equity:
Common stock, $30 par value; 100,000 shares authorized, issued and outstanding	3		3
Additional paid-in capital	2,466		2,466
Retained earnings	848		862
Accumulated other comprehensive income, net of tax	488		457
Total shareholder’s equity	3,805		3,788
Total liabilities and shareholder’s equity	$	118,271	$	114,053

See Notes to Consolidated Financial Statements.

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RIVERSOURCE LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017		2016			2017		2016
	(in millions)
Revenues
Premiums	$	99	$	104		$	304	$	315
Net investment income	261		276			797		850
Policy and contract charges	444		557			1,415		1,501
Other revenues	103		104			308		303
Net realized investment gains (losses)	—		1			31		15
Total revenues	907		1,042			2,855		2,984
Benefits and expenses
Benefits, claims, losses and settlement expenses	236		590			920		1,148
Interest credited to fixed accounts	176		161			509		465
Amortization of deferred acquisition costs	32		144			142		299
Other insurance and operating expenses	176		149			527		505
Total benefits and expenses	620		1,044			2,098		2,417
Pretax income (loss)	287		(2		)	757		567
Income tax provision (benefit)	34		(38		)	71		33
Net income	$	253	$	36		$	686	$	534
Supplemental Disclosures:
Total other-than-temporary impairment losses on securities	$	—	$	—		$	—	$	—
Portion of loss recognized in other comprehensive income (before taxes)	—		—			—		—
Net impairment losses recognized in net realized investment gains (losses)	$	—	$	—		$	—	$	—

See Notes to Consolidated Financial Statements.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	(in millions)
Net income	$	253		$	36		$	686		$	534
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on securities	(7		)	(26		)	29			340
Net unrealized gains (losses) on derivatives	1			1			3			3
Other	—			—			(1		)	—
Total other comprehensive income (loss), net of tax	(6		)	(25		)	31			343
Total comprehensive income	$	247		$	11		$	717		$	877

See Notes to Consolidated Financial Statements.

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RIVERSOURCE LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF SHAREHOLDER’S EQUITY (UNAUDITED)

	Common Shares		Additional Paid-In Capital		Retained Earnings			Accumulated Other Comprehensive Income		Total
	(in millions)
Balances at January 1, 2016(1)	$	3	$	2,465	$	1,176		$	395	$	4,039
Comprehensive income:
Net income	—		—		534			—		534
Other comprehensive income (loss), net of tax	—		—		—			343		343
Total comprehensive income										877
Tax adjustment on share-based incentive compensation plan	—		2		—			—		2
Cash dividends to Ameriprise Financial, Inc.	—		—		(800		)	—		(800		)
Balances at September 30, 2016(1)	$	3	$	2,467	$	910		$	738	$	4,118
Balances at January 1, 2017	$	3	$	2,466	$	862		$	457	$	3,788
Comprehensive income:
Net income	—		—		686			—		686
Other comprehensive income (loss), net of tax	—		—		—			31		31
Total comprehensive income										717
Cash dividends to Ameriprise Financial, Inc.	—		—		(700		)	—		(700		)
Balances at September 30, 2017	$	3	$	2,466	$	848		$	488	$	3,805

⁽¹⁾ Prior period retained earnings were restated in the fourth quarter of 2016. See Note 1 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

See Notes to Consolidated Financial Statements.

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RIVERSOURCE LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Nine Months Ended September 30,
	2017			2016
	(in millions)
Cash Flows from Operating Activities
Net income	$	686		$	534
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, amortization and accretion, net	36			30
Deferred income tax (benefit) expense	(71		)	(5		)
Contractholder and policyholder charges, non-cash	(268		)	(260		)
Loss from equity method investments	44			43
Net realized investment (gains) losses	(31		)	(17		)
Other-than-temporary impairments and provision for loan losses recognized in net realized investment gains (losses)	—			2
Changes in operating assets and liabilities:
Deferred acquisition costs	(31		)	87
Policyholder account balances, future policy benefits and claims, net	(118		)	1,389
Derivatives, net of collateral	500			(658		)
Reinsurance recoverables	(235		)	(200		)
Other receivables	50			(20		)
Accrued investment income	16			11
Other, net	(55		)	170
Net cash provided by (used in) operating activities	523			1,106
Cash Flows from Investing Activities
Available-for-Sale securities:
Proceeds from sales	209			254
Maturities, sinking fund payments and calls	1,843			1,815
Purchases	(1,315		)	(2,343		)
Proceeds from sales, maturities and repayments of mortgage loans	341			679
Funding of mortgage loans	(352		)	(327		)
Proceeds from sales and collections of other investments	126			101
Purchase of other investments	(154		)	(105		)
Purchase of land, buildings, equipment and software	(7		)	(7		)
Change in policy loans, net	(11		)	(12		)
Other, net	31			23
Net cash provided by (used in) investing activities	711			78
See Notes to Consolidated Financial Statements.

6

RIVERSOURCE LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Continued)
	Nine Months Ended September 30,
	2017			2016
	(in millions)
Cash Flows from Financing Activities
Policyholder account balances:
Deposits and other additions	$	1,538		$	1,532
Net transfers from (to) separate accounts	(120		)	113
Surrenders and other benefits	(1,413		)	(1,448		)
Proceeds from lines of credit with Ameriprise Financial, Inc.	5			10
Payments on lines of credit with Ameriprise Financial, Inc.	(5		)	(10		)
Cash received for purchased options with deferred premiums	43			242
Cash paid for purchased options with deferred premiums	(171		)	(238		)
Cash dividends to Ameriprise Financial, Inc.	(700		)	(800		)
Net cash provided by (used in) financing activities	(823		)	(599		)
Net increase (decrease) in cash and cash equivalents	411			585
Cash and cash equivalents at beginning of period	323			370
Cash and cash equivalents at end of period	$	734		$	955
Supplemental Disclosures:
Income taxes paid (received), net	$	243		$	(31	)
Interest paid on borrowings	1			1
Non-cash investing activity:
Partnership commitments not yet remitted	9			75
See Notes to Consolidated Financial Statements.

7

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. Basis of Presentation

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.

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 fair statement of the consolidated financial position and results of operations for the interim periods have been made. Except for the adjustment described below, all adjustments made were of a normal recurring nature.

In the first quarter of 2017, the Company recorded a $20 million decrease to income tax provision related to an out-of-period correction for a reversal of a tax reserve.

In the third quarter of 2017, the Company recorded a $14 million out-of-period correction related to a variable annuity model assumption that decreased amortization of deferred acquisition costs (“DAC”) by $10 million and decreased benefits, claims, losses and settlement expenses by $4 million.

The impact to prior period financial statements of these out-of-period corrections was not material.

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, 2016, filed with the Securities and Exchange Commission on February 23, 2017 (“2016 10-K”).

The Company evaluated events or transactions that may have occurred after the balance sheet date for potential recognition or disclosure through the date the financial statements were issued. No subsequent events or transactions were identified.

2. Recent Accounting Pronouncements

Adoption of New Accounting Standards

Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments

In August 2016, the Financial Accounting Standards Board (“FASB”) updated the accounting standards related to classification of certain cash receipts and cash payments on the statement of cash flows. The update includes amendments to address diversity in practice for the classification of eight specific cash flow activities. The specific amendments the Company evaluated include the classification of debt prepayment and extinguishment costs, contingent consideration payments, proceeds from insurance settlements and corporate owned life insurance settlements, distributions from equity method investees and the application of the predominance principle to separately identifiable cash flows. The standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted and all amendments must be adopted during the same period. The Company early adopted the standard for the interim period ended March 31, 2017 on a retrospective basis. The adoption of the standard did not have a material impact on the Company’s operating, investing or financing cash flows.

Future Adoption of New Accounting Standards

Derivatives and Hedging – Targeted Improvements to Accounting for Hedging Activities

In August 2017, the FASB updated the accounting standards to amend the hedge accounting recognition and presentation requirements. The objectives of the update are to better align the financial reporting of hedging relationships to the economic results of an entity’s risk management activities and simplify the application of the hedge accounting guidance. The update also adds new disclosures and amends existing disclosure requirements. The standard is effective for interim and annual periods beginning after December 15, 2018, and should be applied on a modified retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations.

Receivables - Premium Amortization on Purchased Callable Debt Securities

In March 2017, the FASB updated the accounting standards to shorten the amortization period for certain purchased callable debt securities held at a premium. Under current guidance, premiums are generally amortized over the contractual life of the security. The amendments require the premium to be amortized to the earliest call date. The update applies to securities with explicit, non-contingent call features that are callable at fixed prices and on preset dates. The standard is effective for interim and annual periods

8

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

beginning after December 15, 2018, and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption is permitted. The update is not expected to have a material impact on the Company’s consolidated financial condition or results of operations.

Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory

In October 2016, the FASB updated the accounting standards related to the recognition of income tax impacts on intra-entity transfers. The update requires entities to recognize the income tax consequences of intra-entity transfers, other than inventory, upon the transfer of the asset. The update requires the selling entity to recognize a current tax expense or benefit and the purchasing entity to recognize a deferred tax asset or liability when the transfer occurs. The standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations.

Financial Instruments – Measurement of Credit Losses

In June 2016, the FASB updated the accounting standards related to accounting for credit losses on certain types of financial instruments. The update replaces the current incurred loss model for estimating credit losses with a new model that requires an entity to estimate the credit losses expected over the life of the asset. Generally, the initial estimate of the expected credit losses and subsequent changes in the estimate will be reported in current period earnings and recorded through an allowance for credit losses on the balance sheet. The current credit loss model for Available-for-Sale debt securities does not change; however, the credit loss calculation and subsequent recoveries are required to be recorded through an allowance. The standard is effective for interim and annual periods beginning after December 15, 2019. Early adoption will be permitted for interim and annual periods beginning after December 15, 2018. A modified retrospective cumulative adjustment to retained earnings should be recorded as of the first reporting period in which the guidance is effective for loans, receivables, and other financial instruments subject to the new expected credit loss model. Prospective adoption is required for establishing an allowance related to Available-for-Sale debt securities, certain beneficial interests, and financial assets purchased with a more-than-insignificant amount of credit deterioration since origination. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations.

Leases – Recognition of Lease Assets and Liabilities on Balance Sheet

In February 2016, the FASB updated the accounting standards for leases. The update was issued to increase transparency and comparability for the accounting of lease transactions. The standard will require most lease transactions for lessees to be recorded on the balance sheet as lease assets and lease liabilities and both quantitative and qualitative disclosures about leasing arrangements. The standard is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. The update should be applied at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations.

Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities

In January 2016, the FASB updated the accounting standards on the recognition and measurement of financial instruments. The update requires entities to carry marketable equity securities, excluding investments in securities that qualify for the equity method of accounting, at fair value with changes in fair value reflected in net income each reporting period. The update affects other aspects of accounting for equity instruments, as well as the accounting for financial liabilities utilizing the fair value option. The update eliminates the requirement to disclose the methods and assumptions used to estimate the fair value of financial assets or liabilities held at cost on the balance sheet and requires entities to use the exit price notion when measuring the fair value of financial instruments. The standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted for certain provisions. Generally, the update should be applied using a modified retrospective approach by recording a cumulative-effect adjustment to equity at the beginning of the period of adoption. The update is not expected to have a material impact on the consolidated financial condition or 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 and requires disclosure of quantitative and qualitative information that enables users of financial statements to understand the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. Subsequent related updates provide clarification on certain revenue recognition guidance in the new standard. The standard is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted for interim and annual periods beginning after December 15, 2016. The standard may be applied retrospectively for all periods presented or retrospectively with a cumulative-effect adjustment at the date of adoption. The Company plans to adopt the revenue recognition guidance on a retrospective basis in the first quarter of 2018. The update does not apply to revenue associated with the manufacturing of insurance and annuity products or financial instruments as these revenues are in the scope of other standards. Therefore, the Company does not expect the update to have an impact on these revenues. The Company’s implementation efforts include the identification of revenue within the guidance and the review of the customer contracts to determine the Company’s

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RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

performance obligation and the associated timing of each performance obligation. The update is not expected to have a material impact on the consolidated financial condition and results of operations. The Company continues to evaluate the impact on disclosures.

3. Variable Interest Entities

The Company is a limited partner in affordable housing partnerships that qualify for government-sponsored low income housing tax credit programs and partnerships that invest in multi-family residential properties that were originally developed with an affordable housing component. The Company has determined it is not the primary beneficiary and therefore does not consolidate these partnerships.

A majority of the limited partnerships are VIEs. The Company’s maximum exposure to loss as a result of its investment in the VIEs is limited to the carrying value. The carrying value is reflected in other investments and was $455 million and $482 million as of September 30, 2017 and December 31, 2016, respectively. The Company had a $114 million and $135 million liability recorded as of September 30, 2017 and December 31, 2016, respectively, related to original purchase commitments not yet remitted to the VIEs. The Company has not provided any additional support and is not contractually obligated to provide additional support to the VIEs beyond the above mentioned funding commitments.

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 on these structured investments.

4. Investments

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

Description of Securities	September 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI (1)
	(in millions)
Fixed maturities:
Corporate debt securities	$	12,415	$	1,137	$	(21	)	$	13,531	$	—
Residential mortgage backed securities	3,065		66		(18		)	3,113		—
Commercial mortgage backed securities	3,148		61		(25		)	3,184		—
State and municipal obligations	1,109		196		(9		)	1,296		—
Asset backed securities	710		30		(2		)	738		—
Foreign government bonds and obligations	284		21		(5		)	300		—
U.S. government and agencies obligations	1		—		—			1		—
Total fixed maturities	20,732		1,511		(80		)	22,163		—
Common stocks	4		4		—			8		3
Total	$	20,736	$	1,515	$	(80	)	$	22,171	$	3

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RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Description of Securities	December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI (1)
	(in millions)
Fixed maturities:
Corporate debt securities	$	13,105	$	1,060	$	(53	)	$	14,112	$	—
Residential mortgage backed securities	3,386		72		(43		)	3,415		(4		)
Commercial mortgage backed securities	2,837		58		(38		)	2,857		—
State and municipal obligations	1,092		161		(24		)	1,229		—
Asset backed securities	790		26		(11		)	805		—
Foreign government bonds and obligations	251		17		(7		)	261		—
U.S. government and agencies obligations	3		—		—			3		—
Total fixed maturities	21,464		1,394		(176		)	22,682		(4		)
Common stocks	4		6		—			10		3
Total	$	21,468	$	1,400	$	(176	)	$	22,692	$	(1	)

 ⁽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 September 30, 2017 and December 31, 2016, investment securities with a fair value of $1.6 billion and $1.5 billion, respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $697 million and $428 million, respectively, may be sold, pledged or rehypothecated by the counterparty.

As of both September 30, 2017 and December 31, 2016, fixed maturity securities comprised approximately 83% 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. As of September 30, 2017 and December 31, 2016, approximately $962 million and $944 million, 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:

Ratings	September 30, 2017						December 31, 2016
	Amortized Cost		Fair Value		Percent of Total Fair Value		Amortized Cost		Fair Value		Percent of Total Fair Value
	(in millions, except percentages)
AAA	$	5,908	$	5,988	27	%	$	5,671	$	5,728	25	%
AA	1,079		1,274		6		1,013		1,177		5
A	3,579		4,019		18		3,767		4,167		19
BBB	8,985		9,666		44		9,584		10,190		45
Below investment grade	1,181		1,216		5		1,429		1,420		6
Total fixed maturities	$	20,732	$	22,163	100	%	$	21,464	$	22,682	100	%

As of September 30, 2017 and December 31, 2016, approximately 37% and 40%, 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.

11

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

Description of Securities	September 30, 2017
	Less than 12 months						12 months or more						Total
	Number  of Securities	Fair Value		Unrealized Losses			Number  of Securities	Fair Value		Unrealized Losses			Number  of Securities	Fair Value		Unrealized Losses
	(in millions, except number of securities)
Corporate debt securities	53	$	520	$	(6	)	21	$	178	$	(15	)	74	$	698	$	(21	)
Residential mortgage backed securities	43	833		(11		)	26	249		(7		)	69	1,082		(18		)
Commercial mortgage backed securities	67	1,172		(19		)	14	180		(6		)	81	1,352		(25		)
State and municipal obligations	19	55		—			5	123		(9		)	24	178		(9		)
Asset backed securities	11	113		(1		)	9	63		(1		)	20	176		(2		)
Foreign government bonds and obligations	8	19		—			14	21		(5		)	22	40		(5		)
Total	201	$	2,712	$	(37	)	89	$	814	$	(43	)	290	$	3,526	$	(80	)

Description of Securities	December 31, 2016
	Less than 12 months						12 months or more						Total
	Number of Securities	Fair Value		Unrealized Losses			Number  of Securities	Fair Value		Unrealized Losses			Number  of Securities	Fair Value		Unrealized Losses
	(in millions, except number of securities)
Corporate debt securities	114	$	1,502	$	(26	)	33	$	319	$	(27	)	147	$	1,821	$	(53	)
Residential mortgage backed securities	56	1,282		(25		)	56	324		(18		)	112	1,606		(43		)
Commercial mortgage backed securities	80	1,378		(37		)	1	11		(1		)	81	1,389		(38		)
State and municipal obligations	18	66		(3		)	2	105		(21		)	20	171		(24		)
Asset backed securities	23	231		(6		)	12	114		(5		)	35	345		(11		)
Foreign government bonds and obligations	7	30		(1		)	15	23		(6		)	22	53		(7		)
Total	298	$	4,489	$	(98	)	119	$	896	$	(78	)	417	$	5,385	$	(176	)

As part of the Company’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities is attributable to a decline in interest rates on the long end of the interest rate curve and tighter credit spreads.

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) (“OCI”):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017			2016
	(in millions)
Beginning balance	$	—	$	33	$	21		$	33
Reductions for securities sold during the period (realized)	—		—		(21		)	—
Ending balance	$	—	$	33	$	—		$	33

12

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	(in millions)
Gross realized investment gains	$	5		$	5		$	38		$	18
Gross realized investment losses	(2		)	(3		)	(4		)	(11		)
Total	$	3		$	2		$	34		$	7

See Note 13 for a rollforward of net unrealized investment gains (losses) included in AOCI.

Available-for-Sale securities by contractual maturity as of September 30, 2017 were as follows:

	Amortized Cost		Fair Value
	(in millions)
Due within one year	$	1,560	$	1,588
Due after one year through five years	5,213		5,466
Due after five years through 10 years	3,314		3,460
Due after 10 years	3,722		4,614
	13,809		15,128
Residential mortgage backed securities	3,065		3,113
Commercial mortgage backed securities	3,148		3,184
Asset backed securities	710		738
Common stocks	4		8
Total	$	20,736	$	22,171

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.

The following is a summary of net investment income:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	(in millions)
Fixed maturities	$	237		$	249		$	717		$	751
Mortgage loans	34			38			103			115
Other investments	(4		)	(4		)	(4		)	4
	267			283			816			870
Less: investment expenses	6			7			19			20
Total	$	261		$	276		$	797		$	850

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 the nine months ended and the ending balance of the allowance for loan losses by impairment method:

	September 30,
	2017		2016
	(in millions)
Beginning balance	$	25	$	25
Charge-offs	—		(1		)
Provisions	—		1
Ending balance	$	25	$	25
Individually evaluated for impairment	$	3	$	2
Collectively evaluated for impairment	22		23

The recorded investment in financing receivables by impairment method was as follows:

	September 30, 2017		December 31, 2016
	(in millions)
Individually evaluated for impairment	$	18	$	10
Collectively evaluated for impairment	3,271		3,275
Total	$	3,289	$	3,285

As of September 30, 2017 and December 31, 2016, 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 $5 million, respectively.

During the three months ended September 30, 2017 and 2016, the Company purchased $14 million and $17 million, respectively, and sold $9 million and nil, respectively, of syndicated loans. During the nine months ended September 30, 2017 and 2016, the Company purchased $121 million and $54 million, respectively, of syndicated loans, and sold $12 million and $250 million, respectively, of loans. The $250 million (amortized cost, net of unamortized discount) of loans sold during the nine months ended September 30, 2016 consisted of residential mortgage loans sold on March 30, 2016 to an unaffiliated third party. The Company received cash proceeds of $260 million and recognized a gain of $10 million.

Credit Quality Information

Nonperforming loans, which are generally loans 90 days or more past due, were $2 million as of both September 30, 2017 and December 31, 2016. All other loans were considered to be performing.

Commercial Mortgage Loans

The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates as necessary. Commercial mortgage loans which management has assigned its highest risk rating were 1% and nil of total commercial mortgage loans as of September 30, 2017 and December 31, 2016, respectively. 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.

13

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows:

	Loans				Percentage
	September 30, 2017		December 31, 2016		September 30, 2017		December 31, 2016
	(in millions)
South Atlantic	$	738	$	753	28	%	29	%
Pacific	754		722		28		28
Mountain	242		234		9		9
West North Central	205		212		8		8
Middle Atlantic	186		191		7		7
East North Central	231		195		9		8
West South Central	128		122		5		5
New England	79		84		3		3
East South Central	85		80		3		3
	2,648		2,593		100	%	100	%
Less: allowance for loan losses	19		19
Total	$	2,629	$	2,574

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

	Loans				Percentage
	September 30, 2017		December 31, 2016		September 30, 2017		December 31, 2016
	(in millions)
Retail	$	896	$	916	34	%	35	%
Office	485		473		18		18
Apartments	540		483		20		19
Industrial	442		430		17		17
Mixed use	42		42		2		2
Hotel	40		41		1		1
Other	203		208		8		8
	2,648		2,593		100	%	100	%
Less: allowance for loan losses	19		19
Total	$	2,629	$	2,574

Residential Mortgage Loans

The recorded investment in residential mortgage loans as of September 30, 2017 and December 31, 2016 was $251 million and $300 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 September 30, 2017 and December 31, 2016, no allowance for loan losses was recorded.

As of September 30, 2017 and December 31, 2016, approximately 1% and 2%, respectively, of residential mortgage loans had FICO scores below 640. As of both September 30, 2017 and December 31, 2016, none of the Company’s residential mortgage loans had LTV ratios greater than 90%. The Company’s most significant geographic concentrations for residential mortgage loans are in California representing 52% of the portfolio as of both September 30, 2017 and December 31, 2016. Colorado and Washington represent 18% and 13%, respectively, of the portfolio as of both September 30, 2017 and December 31, 2016. No other state represents more than 10% of the total residential mortgage loan portfolio.

During the third quarter of 2017, the Company entered into an agreement with an unaffiliated third party to sell its remaining $255 million of residential mortgage loans and recorded a $4 million loss to reflect the loans at fair value.

14

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Syndicated Loans

The recorded investment in syndicated loans as of September 30, 2017 and December 31, 2016 was $390 million and $392 million, respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. The primary credit indicator for syndicated loans is whether the loans are performing in accordance with the contractual terms of the syndication. Total nonperforming syndicated loans as of September 30, 2017 and December 31, 2016 were $2 million and $1 million, respectively.

Troubled Debt Restructurings

The recorded investment in restructured loans was not material as of September 30, 2017 and December 31, 2016. The troubled debt restructurings did not have a material impact to the Company’s allowance for loan losses or income recognized for the three months and nine months endedSeptember 30, 2017 and 2016. There are no commitments to lend additional funds to borrowers whose loans have been restructured. 

6. Deferred Acquisition Costs and Deferred Sales Inducement Costs

In the third quarter of the year, management updated market-related inputs and implemented model changes related to our living benefit valuation. In addition, management conducted its annual review of life insurance and annuity valuation assumptions relative to current experience and management expectations including modeling changes. These aforementioned changes are collectively referred to as unlocking. The impact of unlocking to DAC in the third quarter of 2017 primarily reflected improved persistency and mortality on life insurance contracts and a correction related to a variable annuity model assumption partially offset by updates to market-related inputs to the living benefit valuation. The impact of unlocking to DAC in the third quarter of 2016 primarily reflected low interest rates that more than offset benefits from persistency on annuity contracts without living benefits. In addition, the Company’s review of its closed LTC business in the prior year period resulted in the write-off of DAC, which was included in the impact of unlocking.

The balances of and changes in DAC were as follows:

	2017			2016
	(in millions)
Balance at January 1	$	2,611		$	2,693		(1)
Capitalization of acquisition costs	173			212			(2)
Amortization, excluding the impact of valuation assumptions review	(154		)	(218		)
Amortization, impact of valuation assumptions review	12			(81		)
Impact of change in net unrealized securities (gains) losses	(18		)	(105		)
Balance at September 30	$	2,624		$	2,501		(1)

⁽¹⁾  DAC balances were restated for the correction of commission expense accrual for certain insurance and annuity products in the fourth quarter of 2016. See Note 1 in the 2016 10-K.

⁽²⁾  Includes a $27 million benefit related to the write-off of the deferred reinsurance liability in connection with the loss recognition on LTC business.

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

	2017			2016
	(in millions)
Balance at January 1	$	301		$	334
Capitalization of sales inducement costs	3			4
Amortization, excluding the impact of valuation assumptions review	(27		)	(32		)
Amortization, impact of valuation assumptions review	(1		)	4
Impact of change in net unrealized securities (gains) losses	1			(14		)
Balance at September 30	$	277		$	296

15

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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:

	September 30, 2017				December 31, 2016
	(in millions)
Policyholder account balances
Fixed annuities (1)	$	10,100			$	10,588
Variable annuity fixed sub-accounts	5,187				5,211
Variable universal life (“VUL”)/universal life (“UL”) insurance	3,028				3,007
Indexed universal life (“IUL”) insurance	1,290				1,054
Other life insurance	731				758
Total policyholder account balances	20,336				20,618
Future policy benefits
Variable annuity guaranteed minimum withdrawal benefits (“GMWB”)	539				1,017
Variable annuity guaranteed minimum accumulation benefits (“GMAB”)	(73		)	(2)	(24		)	(2)
Other annuity liabilities	85				66
Fixed annuity life contingent liabilities	1,482				1,497
Life, disability income and long term care insurance	6,027				5,556
VUL/UL and other life insurance additional liabilities	674				588
Total future policy benefits	8,734				8,700
Policy claims and other policyholders’ funds	172				196
Total policyholder account balances, future policy benefits and claims	$	29,242			$	29,514

⁽¹⁾  Includes fixed deferred annuities, non-life contingent fixed payout annuities and equity indexed annuity (“EIA”) host contracts.

⁽²⁾  Includes the fair value of GMAB embedded derivatives that was a net asset as of both September 30, 2017 and December 31, 2016 reported as a contra liability.

Separate account liabilities consisted of the following:

	September 30, 2017		December 31, 2016
	(in millions)
Variable annuity	$	73,467	$	69,606
VUL insurance	7,154		6,659
Other insurance	33		33
Total	$	80,654	$	76,298

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.

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.

16

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

Variable Annuity Guarantees by Benefit Type (1)	September 30, 2017							December 31, 2016
	Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk		Weighted Average Attained Age	Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk			Weighted Average Attained Age
	(in millions, except age)
GMDB:
Return of premium	$	59,806	$	57,840	$	11	66	$	56,143	$	54,145	$	208		65
Five/six-year reset	8,869		6,141		13		66	8,878		6,170		22			66
One-year ratchet	6,502		6,139		12		69	6,426		6,050		110			68
Five-year ratchet	1,562		1,504		1		65	1,542		1,483		7			64
Other	1,057		1,034		58		72	965		942		86			71
Total — GMDB	$	77,796	$	72,658	$	95	66	$	73,954	$	68,790	$	433		65
GGU death benefit	$	1,103	$	1,052	$	126	69	$	1,047	$	996	$	108		68
GMIB	$	236	$	219	$	8	69	$	245	$	227	$	13		68
GMWB:
GMWB	$	2,525	$	2,517	$	2	71	$	2,650	$	2,642	$	2		70
GMWB for life	42,933		42,813		160		67	39,436		39,282		289		(2)	66
Total — GMWB	$	45,458	$	45,330	$	162	67	$	42,086	$	41,924	$	291		66
GMAB	$	3,157	$	3,153	$	—	59	$	3,484	$	3,476	$	21		59

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

⁽²⁾ Amount revised to reflect updated contractholder mortality assumptions at December 31, 2016.

The net amount at risk for GMDB, GGU and GMAB is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB is defined as the greater of the present value of the minimum guaranteed annuity payments less the current contract value or zero. The net amount at risk for GMWB is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero.

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

	September 30, 2017			December 31, 2016
	Net Amount at Risk		Weighted Average Attained Age	Net Amount at Risk		Weighted Average Attained Age
	(in millions, except age)
UL secondary guarantees	$	6,443	65	$	6,376	64

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

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

	GMDB & GGU			GMIB			GMWB (1)			GMAB (1)			UL
	(in millions)
Balance at January 1, 2016	$	14		$	8		$	1,057		$	—		$	332
Incurred claims	10			—			1,056			9			99
Paid claims	(7		)	—			—			(1		)	(18		)
Balance at September 30, 2016	$	17		$	8		$	2,113		$	8		$	413
Balance at January 1, 2017	$	16		$	8		$	1,017		$	(24	)	$	434
Incurred claims	3			—			(478		)	(49		)	59
Paid claims	(3		)	(1		)	—			—			(22		)
Balance at September 30, 2017	$	16		$	7		$	539		$	(73	)	$	471

⁽¹⁾  The incurred claims for GMWB and GMAB represent the change in the fair value of the liabilities (contra liabilities) less paid claims.

17

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

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

	September 30, 2017		December 31, 2016
	(in millions)
Mutual funds:
Equity	$	44,365	$	40,622
Bond	23,481		23,142
Other	5,117		5,326
Total mutual funds	$	72,963	$	69,090

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 September 30, 2017 and December 31, 2016, the Company has pledged $32 million and $33 million of agency residential mortgage backed securities and $16 million and $19 million of commercial mortgage backed securities, respectively. The amount of the Company’s liability including accrued interest as of both September 30, 2017 and December 31, 2016 was $50 million. The remaining maturity of outstanding repurchase agreements was less than one month as of September 30, 2017 and less than three months as of December 31, 2016. The weighted average annualized interest rate on the repurchase agreements held as of September 30, 2017 and December 31, 2016 was 1.4% and 0.9%, respectively.

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 $764 million and $771 million as of September 30, 2017 and December 31, 2016, respectively. The amount of the Company’s liability including accrued interest was $151 million and $150 million as of September 30, 2017 and December 31, 2016, respectively. The remaining maturity of outstanding FHLB advances was less than three months as of September 30, 2017 and less than four months as of December 31, 2016. The weighted average annualized interest rate on the FHLB advances held as of September 30, 2017 and December 31, 2016 was 1.3% and 0.8%, respectively.

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 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.

18

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following tables present the balances of assets and liabilities measured at fair value on a recurring basis:

	September 30, 2017
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Available-for-Sale securities: Fixed maturities:
Corporate debt securities	$	—	$	12,385	$	1,146	$	13,531
Residential mortgage backed securities	—		3,024		89		3,113
Commercial mortgage backed securities	—		3,149		35		3,184
State and municipal obligations	—		1,296		—		1,296
Asset backed securities	—		738		—		738
Foreign government bonds and obligations	—		300		—		300
U.S. government and agencies obligations	1		—		—		1
Total Available-for-Sale securities: Fixed maturities	1		20,892		1,270		22,163
Common stocks	3		4		1		8
Cash equivalents	—		722		—		722
Other assets:
Interest rate derivative contracts	2		1,169		—		1,171
Equity derivative contracts	48		1,845		—		1,893
Credit derivative contracts	—		4		—		4
Foreign exchange derivative contracts	—		42		—		42
Total other assets	50		3,060		—		3,110
Separate account assets measured at net asset value (“NAV”)							80,654		(1)
Total assets at fair value	$	54	$	24,678	$	1,271	$	106,657

Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives	$	—	$	4	$	—	$	4
IUL embedded derivatives	—		—		577		577
GMWB and GMAB embedded derivatives	—		—		45		45		(2)
Total policyholder account balances, future policy benefits and claims	—		4		622		626		(3)
Other liabilities:
Interest rate derivative contracts	—		416		—		416
Equity derivative contracts	5		2,474		—		2,479
Foreign exchange derivative contracts	—		27		—		27
Total other liabilities	5		2,917		—		2,922
Total liabilities at fair value	$	5	$	2,921	$	622	$	3,548

19

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

	December 31, 2016
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Available-for-Sale securities: Fixed maturities:
Corporate debt securities	$	—	$	12,955	$	1,157	$	14,112
Residential mortgage backed securities	—		3,300		115		3,415
Commercial mortgage backed securities	—		2,857		—		2,857
State and municipal obligations	—		1,229		—		1,229
Asset backed securities	—		792		13		805
Foreign government bonds and obligations	—		261		—		261
U.S. government and agencies obligations	3		—		—		3
Total Available-for-Sale securities: Fixed maturities	3		21,394		1,285		22,682
Common stocks	6		4		—		10
Cash equivalents	—		302		—		302
Other assets:
Interest rate derivative contracts	—		1,735		—		1,735
Equity derivative contracts	43		1,487		—		1,530
Credit derivative contracts	—		1		—		1
Foreign exchange derivative contracts	—		80		—		80
Total other assets	43		3,303		—		3,346
Separate account assets measured at NAV							76,298		(1)
Total assets at fair value	$	52	$	25,003	$	1,285	$	102,638

Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives	$	—	$	5	$	—	$	5
IUL embedded derivatives	—		—		464		464
GMWB and GMAB embedded derivatives	—		—		614		614		(4)
Total policyholder account balances, future policy benefits and claims	—		5		1,078		1,083		(5)
Other liabilities:
Interest rate derivative contracts	1		964		—		965
Equity derivative contracts	2		1,987		—		1,989
Foreign exchange derivative contracts	2		45		—		47
Total other liabilities	5		2,996		—		3,001
Total liabilities at fair value	$	5	$	3,001	$	1,078	$	4,084

⁽¹⁾  Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy.

⁽²⁾  The fair value of the GMWB and GMAB embedded derivatives included $494 million of individual contracts in a liability position and $449 million of individual contracts in an asset position as of September 30, 2017.

⁽³⁾  The Company’s adjustment for nonperformance risk resulted in a $(376) million cumulative increase (decrease) to the embedded derivatives as of September 30, 2017.

⁽⁴⁾  The fair value of the GMWB and GMAB embedded derivatives included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position as of December 31, 2016.

⁽⁵⁾  The Company’s adjustment for nonperformance risk resulted in a $(498) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2016.

20

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			Common Stocks		Total
	(in millions)
Balance, July 1, 2017	$	1,190		$	89		$	—	$	11		$	—	$	1,290
Total gains (losses) included in:
Net income	1			—			—		—			—		1			(1)
Other comprehensive income	(1		)	1			—		—			—		—
Purchases	38			—			35		—			—		73
Settlements	(82		)	(1		)	—		—			—		(83		)
Transfers into Level 3	—			—			—		—			1		1
Transfers out of Level 3	—			—			—		(11		)	—		(11		)
Balance, September 30, 2017	$	1,146		$	89		$	35	$	—		$	1	$	1,271
Changes in unrealized gains (losses) relating to assets held at September 30, 2017	$	1		$	—		$	—	$	—		$	—	$	1		(1)

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, July 1, 2017	$	527			$	272			$	799
Total (gains) losses included in:
Net income	35			(2)	(309		)	(3)	(274		)
Issues	26				84				110
Settlements	(11		)		(2		)		(13		)
Balance, September 30, 2017	$	577			$	45			$	622
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2017	$	35		(2)	$	(307	)	(3)	$	(272	)

	Available-for-Sale Securities: Fixed Maturities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities		Asset Backed Securities			Total				Other Derivative Contracts
	(in millions)
Balance, July 1, 2016	$	1,197		$	15		$	—	$	130		$	1,342			$	2
Total gains (losses) included in:
Net income	(1		)	—			—		1			—			(1)	(2		)	(3)
Other comprehensive income	(2		)	—			—		—			(2		)		—
Purchases	20			106			33		—			159				—
Settlements	(21		)	(1		)	—		(1		)	(23		)		—
Transfers out of Level 3	—			—			—		(12		)	(12		)		—
Balance, September 30, 2016	$	1,193		$	120		$	33	$	118		$	1,464			$	—
Changes in unrealized gains (losses) relating to assets held at September 30, 2016	$	(1	)	$	—		$	—	$	1		$	—		(1)	$	(2	)	(3)

21

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, July 1, 2016	$	408			$	1,965			$	2,373
Total (gains) losses included in:
Net income	12			(2)	(280		)	(3)	(268		)
Issues	25				77				102
Settlements	(7		)		(6		)		(13		)
Balance, September 30, 2016	$	438			$	1,756			$	2,194
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2016	$	12		(2)	$	(267	)	(3)	$	(255	)

	Available-for-Sale Securities: Fixed Maturities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities		Asset Backed Securities			Common Stocks			Total
	(in millions)
Balance, January 1, 2017	$	1,157		$	115		$	—	$	13		$	—		$	1,285
Total gains (losses) included in:
Net income	1			—			—		—			—			1			(1)
Other comprehensive income	1			1			—		—			—			2
Purchases	96			67			35		49			—			247
Settlements	(109		)	(5		)	—		(13		)	—			(127		)
Transfers into Level 3	—			—			—		11			5			16
Transfers out of Level 3	—			(89		)	—		(60		)	(4		)	(153		)
Balance, September 30, 2017	$	1,146		$	89		$	35	$	—		$	1		$	1,271
Changes in unrealized gains (losses) relating to assets held at September 30, 2017	$	1		$	—		$	—	$	—		$	—		$	1		(1)

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, January 1, 2017	$	464			$	614			$	1,078
Total (gains) losses included in:
Net income	75			(2)	(798		)	(3)	(723		)
Issues	70				238				308
Settlements	(32		)		(9		)		(41		)
Balance, September 30, 2017	$	577			$	45			$	622
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2017	$	75		(2)	$	(771	)	(3)	$	(696	)

22

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				Other Derivative Contracts
	(in millions)
Balance, January 1, 2016	$	1,235		$	21		$	3		$	133		$	1,392			$	—
Total gains (losses) included in:
Net income	(1		)	—			—			1			—			(1)	(2		)	(3)
Other comprehensive income	26			—			—			—			26				—
Purchases	34			106			42			—			182				2
Settlements	(101		)	(7		)	(3		)	(1		)	(112		)		—
Transfers into Level 3	—			—			—			12			12				—
Transfers out of Level 3	—			—			(9		)	(27		)	(36		)		—
Balance, September 30, 2016	$	1,193		$	120		$	33		$	118		$	1,464			$	—
Changes in unrealized gains (losses) relating to assets held at September 30, 2016	$	(1	)	$	—		$	—		$	1		$	—		(1)	$	(2	)	(3)

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, January 1, 2016	$	364			$	851			$	1,215
Total (gains) losses included in:
Net income	8			(2)	708			(3)	716
Issues	86				215				301
Settlements	(20		)		(18		)		(38		)
Balance, September 30, 2016	$	438			$	1,756			$	2,194
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2016	$	8		(2)	$	830		(3)	$	838

⁽¹⁾  Included in net investment income in the Consolidated Statements of Income.

⁽²⁾  Included in interest credited to fixed accounts in the Consolidated Statements of Income.

⁽³⁾  Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income.

The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $(37) million and $8 million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual for the three months ended September 30, 2017 and 2016, respectively.

The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $(91) million and $295 million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual for the nine months ended September 30, 2017 and 2016, 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.

23

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:

	September 30, 2017
	Fair Value		Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	1,144	Discounted cash flow	Yield/spread to U.S. Treasuries	0.8	%	-	2.3%	1.2	%
IUL embedded derivatives	$	577	Discounted cash flow	Nonperformance risk (1)	67 bps
GMWB and GMAB embedded derivatives	$	45	Discounted cash flow	Utilization of guaranteed withdrawals (2)	0.0	%	-	42.0%
				Surrender rate	0.1	%	-	74.7%
				Market volatility (3)	4.3	%	-	15.9%
				Nonperformance risk (1)	67 bps

	December 31, 2016
	Fair Value		Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	1,154	Discounted cash flow	Yield/spread to U.S. Treasuries	0.9	%	-	2.5%	1.3	%
IUL embedded derivatives	$	464	Discounted cash flow	Nonperformance risk (1)	82 bps
GMWB and GMAB embedded derivatives	$	614	Discounted cash flow	Utilization of guaranteed withdrawals (2)	0.0	%	-	75.6%
				Surrender rate	0.1	%	-	66.4%
				Market volatility (3)	5.3	%	-	21.2%
				Nonperformance risk (1)	82 bps

⁽¹⁾  The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives.

⁽²⁾  The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year.

⁽³⁾  Market volatility is implied volatility of fund of funds and managed volatility funds.

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

Sensitivity of Fair Value Measurements to Changes in Unobservable Inputs

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

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

Significant increases (decreases) in utilization and volatility used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly higher (lower) liability value. Significant increases (decreases) in nonperformance risk and surrender rate used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly lower (higher) liability value. Utilization of guaranteed withdrawals and surrender rates vary with the type of rider, the duration of the policy, the age of the contractholder, the distribution channel and whether the value of the guaranteed benefit exceeds the contract accumulation value.

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.

24

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Assets

Cash Equivalents

Cash equivalents include highly liquid investments with original maturities of 90 days or less. The Company’s 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 is used as a practical expedient for fair value and represents the exit price for the separate account. Separate account assets are excluded from classification in the fair value hierarchy.

Other Assets

Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements. The variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active over-the-counter (“OTC”) markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial as of September 30, 2017 and December 31, 2016. 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

25

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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 variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active OTC markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial as of September 30, 2017 and December 31, 2016. See Note 11 and Note 12 for further information on the credit risk of derivative instruments and related collateral.

Loans held for sale are required to be recorded at the lower of cost or fair value. During the third quarter of 2017, the Company entered into an agreement with an unaffiliated third party to sell $255 million of residential mortgage loans at a $4 million loss.  The loans are measured at fair value on a nonrecurring basis. The fair value of the loans, which reflects the selling price negotiated with the third party, was $251 million as of September 30, 2017, and is classified as Level 3 as the valuation includes unobservable inputs.

During the reporting periods, there were no other 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:

	September 30, 2017
	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
	(in millions)
Financial Assets
Mortgage loans, net	$	2,629	$	—	$	—	$	2,648	$	2,648
Policy loans	841		—		—		797		797
Other investments	401		—		352		51		403
Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	10,415	$	—	$	—	$	11,052	$	11,052
Short-term borrowings	201		—		201		—		201
Other liabilities	145		—		—		140		140
Separate account liabilities measured at NAV	356								356		(1)

26

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

	December 31, 2016
	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
	(in millions)
Financial Assets
Mortgage loans, net	$	2,874	$	—	$	—	$	2,865	$	2,865
Policy loans	830		—		—		807		807
Other investments	402		—		364		43		407
Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	10,906	$	—	$	—	$	11,417	$	11,417
Short-term borrowings	200		—		200		—		200
Other liabilities	177		—		—		169		169
Separate account liabilities measured at NAV	341								341		(1)

⁽¹⁾  Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy.

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 as of December 31, 2016 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 as of December 31, 2016, 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.

27

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Other Liabilities

Other liabilities consist of future funding commitments to affordable housing partnerships and other real estate 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 is used as a practical expedient for fair value and represents the exit price for the separate account liabilities. Separate account liabilities are excluded from classification in the fair value hierarchy.

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 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:

	September 30, 2017
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets									Net Amount
							Financial Instruments (1)			Cash Collateral			Securities Collateral
	(in millions)
Derivatives:
OTC	$	3,079	$	—	$	3,079	$	(2,327	)	$	(636	)	$	(109	)	$	7
OTC cleared (2)	13		—		13		(12		)	—			—			1
Exchange-traded	18		—		18		(2		)	—			—			16
Total derivatives	$	3,110	$	—	$	3,110	$	(2,341	)	$	(636	)	$	(109	)	$	24

	December 31, 2016
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets									Net Amount
							Financial Instruments (1)			Cash Collateral			Securities Collateral
	(in millions)
Derivatives:
OTC	$	2,822	$	—	$	2,822	$	(2,161	)	$	(374	)	$	(235	)	$	52
OTC cleared	510		—		510		(507		)	(3		)	—			—
Exchange-traded	14		—		14		(2		)	—			—			12
Total derivatives	$	3,346	$	—	$	3,346	$	(2,670	)	$	(377	)	$	(235	)	$	64

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

⁽²⁾  The decrease in OTC cleared derivatives from December 31, 2016 is a result of certain central clearing parties amending their rules resulting in variation margin payments being settlement payments, as opposed to collateral.

28

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:

	September 30, 2017
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Liabilities Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets									Net Amount
							Financial Instruments (1)			Cash Collateral			Securities Collateral
	(in millions)
Derivatives:
OTC	$	2,908	$	—	$	2,908	$	(2,327	)	$	(1	)	$	(578	)	$	2
OTC cleared (2)	12		—		12		(12		)	—			—			—
Exchange-traded	2		—		2		(2		)	—			—			—
Total derivatives	2,922		—		2,922		(2,341		)	(1		)	(578		)	2
Repurchase agreements	50		—		50		—			—			(48		)	2
Total	$	2,972	$	—	$	2,972	$	(2,341	)	$	(1	)	$	(626	)	$	4

	December 31, 2016
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Liabilities Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets									Net Amount
							Financial Instruments (1)			Cash Collateral			Securities Collateral
	(in millions)
Derivatives:
OTC	$	2,481	$	—	$	2,481	$	(2,161	)	$	—		$	(312	)	$	8
OTC cleared	515		—		515		(507		)	(8		)	—			—
Exchange-traded	5		—		5		(2		)	—			—			3
Total derivatives	3,001		—		3,001		(2,670		)	(8		)	(312		)	11
Repurchase agreements	50		—		50		—			—			(50		)	—
Total	$	3,051	$	—	$	3,051	$	(2,670	)	$	(8	)	$	(362	)	$	11

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

⁽²⁾ The decrease in OTC cleared derivatives from December 31, 2016 is a result of certain central clearing parties amending their rules resulting in variation margin payments being settlement payments, as opposed to collateral.

In the tables above, the amounts of assets or liabilities presented 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.

Freestanding derivative instruments are reflected in other assets and other liabilities. Cash collateral pledged by the Company is reflected in other assets and cash collateral accepted by the Company is reflected in other liabilities. Repurchase agreements are reflected in short-term borrowings. 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.

29

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

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

	September 30, 2017						December 31, 2016
	Notional		Gross Fair Value				Notional		Gross Fair Value
			Assets (1)		Liabilities (2)				Assets (1)		Liabilities (2)
	(in millions)
Derivatives not designated as hedging instruments
Interest rate contracts	$	65,248	$	1,171	$	416	$	71,019	$	1,735	$	965
Equity contracts	58,359		1,893		2,479		60,419		1,530		1,989
Credit contracts	718		4		—		1,039		1		—
Foreign exchange contracts	4,314		42		27		4,494		80		47
Other contracts	450		—		—		240		—		—
Total non-designated hedges	129,089		3,110		2,922		137,211		3,346		3,001
Embedded derivatives
GMWB and GMAB (3)	N/A		—		45		N/A		—		614
IUL	N/A		—		577		N/A		—		464
EIA	N/A		—		4		N/A		—		5
Total embedded derivatives	N/A		—		626		N/A		—		1,083
Total derivatives	$	129,089	$	3,110	$	3,548	$	137,211	$	3,346	$	4,084

N/A  Not applicable.

⁽¹⁾ The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets.

⁽²⁾ The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and EIA embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets.

⁽³⁾ The fair value of the GMWB and GMAB embedded derivatives as of September 30, 2017 included $494 million of individual contracts in a liability position and $449 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2016 included $880 millionof individual contracts in a liability position and $266 million of individual contracts in an asset position.

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

As of September 30, 2017 and December 31, 2016, investment securities with a fair value of $122 million and $235 million, respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $122 million and $118 million, respectively, may be sold, pledged or rehypothecated by the Company. As of September 30, 2017 and December 31, 2016, the Company had sold, pledged, or rehypothecated $12 million and $19 million, respectively, of these securities. In addition, as of September 30, 2017 and December 31, 2016, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets.

30

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following tables present a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income:

	Interest Credited to Fixed Accounts			Benefits, Claims, Losses and Settlement Expenses
	(in millions)
Three Months Ended September 30, 2017
Interest rate contracts	$	—		$	15
Equity contracts	18			(241		)
Credit contracts	—			(3		)
Foreign exchange contracts	—			1
Other contracts	—			(2		)
GMWB and GMAB embedded derivatives	—			227
IUL embedded derivatives	(24		)	—
Total gain (loss)	$	(6	)	$	(3	)

Nine Months Ended September 30, 2017
Interest rate contracts	$	—		$	63
Equity contracts	50			(859		)
Credit contracts	—			(22		)
Foreign exchange contracts	—			(27		)
Other contracts	—			(2		)
GMWB and GMAB embedded derivatives	—			569
IUL embedded derivatives	(43		)	—
Total gain (loss)	$	7		$	(278	)

	Interest Credited to Fixed Accounts			Benefits, Claims, Losses and Settlement Expenses
	(in millions)
Three Months Ended September 30, 2016
Interest rate contracts	$	—		$	(13	)
Equity contracts	12			(364		)
Credit contracts	—			(3		)
Foreign exchange contracts	—			(12		)
Other contracts	—			(2		)
GMWB and GMAB embedded derivatives	—			209
IUL embedded derivatives	(5		)	—
Total gain (loss)	$	7		$	(185	)

Nine Months Ended September 30, 2016
Interest rate contracts	$	—	$	1,191
Equity contracts	10		(525		)
Credit contracts	—		(34		)
Foreign exchange contracts	—		(66		)
Other contracts	—		(2		)
GMWB and GMAB embedded derivatives	—		(905		)
IUL embedded derivatives	12		—
Total gain (loss)	$	22	$	(341	)

31

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

Certain annuity contracts contain GMWB or GMAB provisions, which guarantee the right to make limited partial withdrawals each contract year regardless of the volatility inherent in the underlying investments or guarantee a minimum accumulation value of consideration received at the beginning of the contract period, after a specified holding period, respectively. The GMAB and non-life contingent GMWB provisions are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. The Company economically hedges the exposure related to GMAB and non-life contingent GMWB provisions primarily using futures, options, interest rate swaptions, interest rate swaps, total return swaps and variance swaps.

The deferred premium associated with certain of the above options and swaptions is paid or received semi-annually over the life of the contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of September 30, 2017:

		Premiums Payable		Premiums Receivable
		(in millions)
2017	(1)	$	95	$	25
2018		213		129
2019		275		170
2020		197		98
2021		168		107
2022-2026		669		182
Total		$	1,617	$	711

⁽¹⁾ 2017 amounts represent the amounts payable and receivable for the period from October 1, 2017 to December 31, 2017.

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

The Company has a macro hedge program to provide protection against the statutory tail scenario risk arising from variable annuity reserves on its statutory surplus and to cover some of the residual risks not covered by other hedging activities. As a means of economically hedging these risks, the Company uses futures, options, swaps and swaptions. Certain of the macro hedge derivatives contain settlement provisions linked to both equity returns and interest rates. The Company’s macro hedge derivatives that contain settlement provisions linked to both equity returns and interest rates are shown in Other contracts in the tables above.

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. The equity component of the EIA and IUL product obligations are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. As a means of economically hedging its obligations under the provisions of these products, the Company enters into index options and futures contracts.

Cash Flow Hedges

During the nine months endedSeptember 30, 2017, the Company held no derivatives that were designated as cash flow hedges.

As of September 30, 2017, the Company expects to reclassify $3 million of deferred losses 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 nine months endedSeptember 30, 2017 and 2016, no hedge relationships were discontinued due to forecasted transactions no longer being expected to occur according to the original hedge strategy. For the nine months endedSeptember 30, 2017 and 2016, amounts recognized in earnings on derivative transactions that were ineffective were not material. See Note 13 for a summary of net unrealized gains included in AOCI related to previously designated cash flow hedges.

Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is one year 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

32

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

through a comprehensive enterprise risk management program that includes members of senior management. Key components of this program are to require preapproval of counterparties and the use of master netting and collateral arrangements whenever practical. See Note 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. As of September 30, 2017 and December 31, 2016, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $368 million and $206 million, respectively. The aggregate fair value of assets posted as collateral for such instruments as of September 30, 2017 and December 31, 2016 was $366 million and $198 million, respectively. If the credit contingent provisions of derivative contracts in a net liability position as of September 30, 2017 and December 31, 2016 were triggered, the aggregate fair value of additional assets that would be required to be posted as collateral or needed to settle the instruments immediately would have been $2 million and $8 million, respectively.

13. Shareholder’s Equity

The following tables provide the amounts related to each component of OCI:

	Three Months Ended September 30,
	2017									2016
	Pretax			Income Tax Benefit (Expense)			Net of Tax			Pretax			Income Tax Benefit (Expense)			Net of Tax
	(in millions)
Net unrealized securities gains (losses):
Net unrealized securities gains (losses) arising during the period (1)	$	52		$	(18	)	$	34		$	75		$	(25	)	$	50
Reclassification of net securities (gains) losses included in net income (2)	(3		)	1			(2		)	(1		)	—			(1		)
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables	(61		)	22			(39		)	(114		)	39			(75		)
Net unrealized securities gains (losses)	(12		)	5			(7		)	(40		)	14			(26		)
Net unrealized derivatives gains (losses):
Reclassification of net derivative (gains) losses included in net income (3)	1			—			1			1			—			1
Net unrealized derivatives gains (losses)	1			—			1			1			—			1
Other comprehensive income (loss)	$	(11	)	$	5		$	(6	)	$	(39	)	$	14		$	(25	)

33

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

	Nine Months Ended September 30,
	2017									2016
	Pretax			Income Tax Benefit (Expense)			Net of Tax			Pretax			Income Tax Benefit (Expense)			Net of Tax
	(in millions)
Net unrealized securities gains (losses):
Net unrealized securities gains (losses) arising during the period (1)	$	245		$	(85	)	$	160		$	1,067		$	(375	)	$	692
Reclassification of net securities (gains) losses included in net income (2)	(34		)	12			(22		)	(7		)	2			(5		)
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables	(168		)	59			(109		)	(533		)	186			(347		)
Net unrealized securities gains (losses)	43			(14		)	29			527			(187		)	340
Net unrealized derivatives gains (losses):
Reclassification of net derivative (gains) losses included in net income (3)	4			(1		)	3			4			(1		)	3
Net unrealized derivatives gains (losses)	4			(1		)	3			4			(1		)	3
Other	(1		)	—			(1		)	—			—			—
Other comprehensive income (loss)	$	46		$	(15	)	$	31		$	531		$	(188	)	$	343

⁽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 during the period.

⁽²⁾ Reclassification amounts are recorded in net realized investment gains (losses).

⁽³⁾ Reclassification amounts are recorded in net investment income.

Other comprehensive income (loss) related to net unrealized securities gains (losses) includes three components: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit other-than-temporary impairment losses to credit losses; and (iii) other adjustments primarily consisting of changes in insurance and annuity asset and liability balances, such as DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates.

The following tables present the changes in the balances of each component of AOCI, net of tax:

	Net Unrealized Securities Gains				Net Unrealized Derivatives Gains			Other			Total
	(in millions)
Balance, July 1, 2017	$	497			$	(2	)	$	(1	)	$	494
OCI before reclassifications	(5		)		—			—			(5		)
Amounts reclassified from AOCI	(2		)		1			—			(1		)
Total OCI	(7		)		1			—			(6		)
Balance, September 30, 2017	$	490		(1)	$	(1	)	$	(1	)	$	488
Balance, January 1, 2017	$	461			$	(4	)	$	—		$	457
OCI before reclassifications	51				—			(1		)	50
Amounts reclassified from AOCI	(22		)		3			—			(19		)
Total OCI	29				3			(1		)	31
Balance, September 30, 2017	$	490		(1)	$	(1	)	$	(1	)	$	488

34

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

	Net Unrealized Securities Gains				Net Unrealized Derivatives Gains			Total
	(in millions)
Balance, July 1, 2016	$	769			$	(6	)	$	763
OCI before reclassifications	(25		)		—			(25		)
Amounts reclassified from AOCI	(1		)		1			—
Total OCI	(26		)		1			(25		)
Balance, September 30, 2016	$	743		(1)	$	(5	)	$	738
Balance, January 1, 2016	$	403			$	(8	)	$	395
OCI before reclassifications	345				—			345
Amounts reclassified from AOCI	(5		)		3			(2		)
Total OCI	340				3			343
Balance, September 30, 2016	$	743		(1)	$	(5	)	$	738

⁽¹⁾ Includes $2 million and $1 million of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities as of September 30, 2017 and September 30, 2016, respectively.

14. Income Taxes

The Company’s effective tax rate was 11.8% and 1,900.0% for the three months ended September 30,2017 and 2016, respectively. The Company’s effective tax rate was 9.4% and 5.8% for the nine months endedSeptember 30,2017 and 2016, 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 decrease in the effective tax rate for the three months ended September 30,2017 compared to the prior year period is primarily due to pretax income in the third quarter of 2017 compared to a pretax loss in the third quarter of 2016. The increase in the effective tax rate for the nine months endedSeptember 30, 2017 compared to the prior year period is primarily due to an increase in pretax income.

Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $9 million, net of federal benefit, which will expire beginning December 31, 2017.

TheCompanyisrequiredtoestablishavaluationallowancefor any portionofthedeferred tax assets that management believes will not be realized. Significant judgment is required in determining if a valuationallowanceshouldbeestablished,andthe amount of such allowance if required. Factors used in making this determination includeestimatesrelatingtotheperformanceofthebusiness. Considerationisgivento,amongotherthingsinmakingthisdetermination,(i)futuretaxableincomeexclusiveofreversingtemporarydifferencesandcarryforwards,(ii)futurereversalsofexisting 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 oftaxplanning strategies will not allow the Company to realize certain state deferred tax assets and state net operating losses. Thevaluation allowance for state deferred tax assets and state net operating losses was $10 million and $8 million as of September 30, 2017 and December 31, 2016, respectively.

As of September 30, 2017 and December 31, 2016, the Company had $62 million and $59 million, respectively, of gross unrecognized tax benefits. If recognized, approximately $6 million, net of federal tax benefits, of unrecognized tax benefits as of both September 30, 2017 and December 31, 2016, would affect the effective tax rate.

The Company does not expect the total amount of unrecognized tax benefits to significantly change in the next 12 months.

The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized a net increase (decrease) of $(1) million and $1 million in interest and penalties for the three months and nine months endedSeptember 30, 2017, respectively. The Company recognized a net increase (decrease) of nil and $(39) million for the three months and nine months endedSeptember 30, 2016, respectively. As of September 30, 2017 and December 31, 2016, the Company had a payable of $3 million and $2 million, respectively, related to accrued interest and penalties.

35

RIVERSOURCELIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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. In the third quarter, the Company received final cash settlements for resolution of the 2006 and 2011 audits. The Internal Revenue Service (“IRS”) has completed its examination of the 2008 through 2010 tax returns, and these years are effectively settled; however, the statutes of limitation, remain open for certain carryover adjustments. The IRS is currently auditing the Company’s U.S. income tax returns for 2012 through 2015. The Company’s or certain of its subsidiaries’ state income tax returns are currently under examination by various jurisdictions for years ranging from 2005 through 2015.

15. Contingencies

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. As of September 30, 2017 and December 31, 2016, the estimated liability was $15 million and $16 million, respectively, and the related premium tax asset was $12 million and $14 million, respectively. The expected period over which guaranty fund assessments will be made and the related tax credits recovered is not known.

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. 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.

36

RIVERSOURCE LIFE INSURANCE COMPANY

ITEM 2. MANAGEMENT’S NARRATIVE ANALYSIS

Overview

RiverSource Life Insurance Company and its subsidiaries are referred to collectively in this Form 10-Q as the “Company”. The following discussion and management’s narrative analysis of the financial condition and results of operations should be read in conjunction with the “Forward-Looking Statements” that follow, the Consolidated Financial Statements and Notes presented in Item 1 and its Annual Report on Form 10-K for the year ended December 31, 2016 filed with the Securities and Exchange Commission (“SEC”) on February 23, 2017 (“2016 10-K”), as well as any current reports on Form 8-K and other publicly available information.

The Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Management’s narrative analysis is presented pursuant to General Instructions H(2)(a) of Form 10-Q in lieu of Management’s Discussion and Analysis of Financial Condition and Results of Operations.

See Note 1 to the Consolidated Financial Statements for additional information.

A significant portion of the Company’s annuity product sales derive from annuities funding qualified accounts, specifically IRAs. As a provider of products and services to tax-qualified retirement accounts, certain aspects of the Company’s business fall within the compliance oversight of the Departments of Labor and Treasury, particularly regarding the enforcement of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and the tax reporting requirements applicable to such accounts. The Department of Labor published regulations in April 2016 that would expand the scope of who is considered an ERISA fiduciary and therefore subject to certain ERISA transaction prohibitions involving the assets of IRA and ERISA plan clients. The regulations introduced additional exemptions and various amendments and revocations to pre-existing exemptions and focus on investment recommendations made by financial advisors or registered investment advisors to clients holding qualified accounts as well as how financial advisors are able to discuss IRA rollovers. The first phase of the regulations went into effect on June 9, 2017 and requires financial advisors to make recommendations related to assets held in IRAs and employer sponsored retirement plans in accordance with the following impartial conduct standards: recommendations must be in the best interest of the client, compensation paid for the recommendations must be reasonable and the financial advisor must not make any misleading statements. The Company’s affiliated selling firms adopted policies and procedures designed to comply with the impartial conduct standards and communicated those policies and procedures to their affiliated advisors and staff. The second phase of the regulation puts into place a number of additional requirements including entering into a best interest contract with clients, enhanced disclosure of fees and conflicts of interest, limits on differential commissions within a product category, the adoption of policies and procedures to ensure the best interest standard is met, and findings related to platforms that are limited to products that pay third-party payments and/or include proprietary products. The second phase of the regulation pertaining to a new “best interest contract exemption” is currently scheduled to become effective on January 1, 2018. These regulations are currently under review by the Department of Labor and the Department has proposed to delay the second phase of the regulations until July 1, 2019 which would give the Department of Labor more time to determine if further revisions to the regulations are advisable. However, as of November 1, the Department of Labor has not issued final guidance implementing a further delay. As a result, it is unclear whether the Department of Labor will substantially rescind or revise the regulations as adopted in 2016. In light of the uncertainty regarding the fiduciary regulation, while the Company prudently continues to prepare to comply with the second phase of the Department of Labor’s investment fiduciary regulations and exemptions in the form in which they were adopted in April 2016, it is also evaluating the impact to its clients and business should the Department of Labor decide to rescind or revise the regulations per the developments since President Trump’s inauguration as generally described above.

Critical Accounting Estimates

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 Estimates” in the Company’s 2016 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.

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RIVERSOURCE LIFE INSURANCE COMPANY

Consolidated Results of Operations for the Nine Months EndedSeptember 30, 2017 and 2016

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

	Nine Months Ended September 30,				Change
	2017		2016
	(in millions)
Revenues
Premiums	$	304	$	315	$	(11	)	(3	)%
Net investment income	797		850		(53		)	(6	)
Policy and contract charges	1,415		1,501		(86		)	(6	)
Other revenues	308		303		5			2
Net realized investment gains	31		15		16			NM
Total revenues	2,855		2,984		(129		)	(4	)
Benefits and expenses
Benefits, claims, losses and settlement expenses	920		1,148		(228		)	(20	)
Interest credited to fixed accounts	509		465		44			9
Amortization of deferred acquisition costs	142		299		(157		)	(53	)
Other insurance and operating expenses	527		505		22			4
Total benefits and expenses	2,098		2,417		(319		)	(13	)
Pretax income	757		567		190			34
Income tax provision	71		33		38			NM
Net income	$	686	$	534	$	152		28	%
NM  Not Meaningful.

Overall

In the third quarter of the year, management updated its market-related inputs and implemented model changes related to the living benefit valuation. In addition, management conducted its annual review of insurance and annuity valuation assumptions relative to current experience and management expectations including modeling changes. These aforementioned changes are collectively referred to as unlocking.

The favorable unlocking impact in the third quarter of 2017 primarily reflected a positive impact from updates to market-related inputs to the living benefit valuation. In addition, premium deficiency testing of the Company’s closed long term care (“LTC”) business resulted in a loss recognition reserve of $57 million in the third quarter of 2017 primarily due to higher morbidity partially offset by premium increases.

The unfavorable unlocking impact in the third quarter of 2016 primarily reflected low interest rates and higher persistency on living benefit contracts that more than offset benefits from persistency on annuity contracts without living benefits, an update to market-related inputs related to the living benefit valuation and other model updates. The long-term interest rate assumption remained unchanged, but management extended the period it would take for rates to reach the long term level from 3.5 years to 5.5 years. In addition, the review of the Company’s closed LTC business in the third quarter of 2016 resulted in a loss recognition of $31 million due to low interest rates, higher morbidity and higher reinsurance expenses, slightly offset by premium increases. The $31 million, which is included in the unlocking impact in the third quarter of 2016, was comprised of $58 million of amortization of DAC and the release of the related deferred reinsurance liability of $27 million.

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RIVERSOURCE LIFE INSURANCE COMPANY

The following table presents the total pretax impacts on the Company’s revenues and expenses attributable to unlocking for the nine months ended September 30:

Pretax Increase (Decrease)	2017			2016
	(in millions)
Policy and contract charges	$	(47	)	$	64
Total revenues	(47		)	64
Benefits, claims, losses and settlement expenses	(139		)	229
Amortization of deferred acquisition costs	(12		)	81
Other insurance and operating expenses	—			(27		)
Total benefits and expenses	(151		)	283
Total	$	104		$	(219	)

Net income increased $152 million or 28% to $686 million for the nine months endedSeptember 30, 2017 compared to $534 million for the prior year period. Pretax income increased $190 million or 34% to $757 million for the nine months endedSeptember 30, 2017 compared to $567 million for the prior year period primarily due to the impact from unlocking, market appreciation and an unfavorable $29 million LTC reserve correction in the third quarter of 2016 partially offset by loss recognition of $57 million on LTC insurance products in the third quarter of 2017.

The following market-related impacts were also significant drivers of the year-over-year change in pretax income:

• The market impact on variable annuity guaranteed benefits (net of hedges and the related deferred sales inducement costs (“DSIC”) and deferred acquisition costs (“DAC”) amortization) was an expense of $142 million for the nine months ended September 30, 2017 compared to an expense of $55 million for the prior year period.

• The market impact on indexed universal life benefits (net of hedges and the related DAC amortization, unearned revenue amortization and the reinsurance accrual) was an expense of $16 million for the nine months ended September 30, 2017 compared to a benefit of $31 million for the prior year period.

• The impact on DAC, DSIC and reserves for insurance features in non-traditional long-duration contracts from actual versus expected market performance based on the Company’s view of bond and equity performance was a benefit of $63 million ($27 million for DAC, $6 million for DSIC and $30 million for insurance features in non-traditional long-duration contracts) for the nine months ended September 30, 2017 reflecting favorable equity market and bond fund returns compared to a benefit of $5 million ($3 million for DAC, $1 million for DSIC and $1 million for insurance features in non-traditional long-duration contracts) for the prior year period.

The Company’s variable annuity account balances increased 4% to $78.7 billion as of September 30, 2017 compared to the prior year period due to equity market appreciation, partially offset by net outflows of $3.7 billion. Lapse rates were higher in the nine months ended September 30, 2017, reflecting increased client asset transfers from variable annuities to affiliated fee-based investment advisory accounts.

The Company’s fixed deferred annuity account balances declined 7% to $9.5 billion as of September 30, 2017 compared to the prior year period as older policies continue to lapse and new sales are limited due to low interest rates. Given the current interest rate environment, the Company’s current fixed deferred annuity book is expected to gradually run off and earnings on its fixed deferred annuity business will trend down.

Revenues

Total revenues decreased by $129 million or 4% to $2.9 billion for the nine months endedSeptember 30, 2017 compared to $3.0 billion the prior year period.

Net investment income decreased $53 million or 6% to $797 million for the nine months endedSeptember 30, 2017 compared to $850 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.

Policy and contract charges decreased $86 million or 6% to $1.4 billion for the nine months endedSeptember 30, 2017 compared to $1.5 billion for the prior year period due to the impact of unlocking, partially offset by higher fees from variable annuity guarantee sales in the prior year where the fees start on the first anniversary date and higher average fee rates. Policy and contract charges for the nine months ended September 30, 2017 included a $47 million unfavorable impact from unlocking compared to a $64 million favorable impact in the prior year period. The primary driver of the unlocking impact to policy and contract charges for the nine months ended September 30, 2017 was a negative impact from lower projected gains on reinsurance contracts resulting from favorable mortality experience. The primary driver of the unlocking impact to policy and contract charges for the prior year period was a positive impact from higher projected gains on reinsurance contracts resulting from unfavorable mortality experience.

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RIVERSOURCE LIFE INSURANCE COMPANY

Net realized investment gains were $31 million for the nine months endedSeptember 30, 2017 compared to $15 million for the prior year period. For the nine months endedSeptember 30, 2017, net realized gains on Available-for-Sale securities due to sales, calls and tenders were $34 million partially offset by a loss of $4 million related to the intent to sell residential mortgage loans. For the nine months endedSeptember 30, 2016, net realized gains of $7 million on Available-for-Sale securities due to sales, calls and tenders and a net realized gain of $10 million from the sale of certain residential mortgage loans were partially offset by a $1 million increase in the provision for loan losses on syndicated loans.

Benefits and Expenses

Total benefits and expenses decreased $319 million or 13% to $2.1 billion for the nine months endedSeptember 30, 2017 compared to $2.4 billion in the prior year period primarily due to the impact of unlocking.

Benefits, claims, losses and settlement expenses decreased $228 million or 20% to $920 million for the nine months endedSeptember 30, 2017 compared to $1.1 billion for the prior year period primarily reflecting the following items:

• The nine months ended September 30, 2017 included a $139 million benefit from unlocking compared to a $229 million expense in the prior year period. The unlocking impact for the third quarter of 2017 primarily reflected a benefit from updates to market-related inputs to the living benefit valuation. The unlocking impact for the prior year period primarily reflected low interest rates and an unfavorable impact from persistency on living benefit reserves, partially offset by a benefit from updates to withdrawal utilization and fee assumptions, as well as market-related inputs to the living benefit valuation.

• A $29 million increase in LTC reserves from a correction related to the claim utilization assumption in the third quarter of 2016.

• A $57 million expense from loss recognition on LTC insurance products in the third quarter of 2017 primarily due to unfavorable morbidity experience partially offset by premium increases.

• A $24 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.

• A $21 million negative impact for the nine months ended September 30, 2017 from changes in assumptions in the prior year unlocking process that result in ongoing increases to living benefit reserves.

• The impact on DSIC and reserves for insurance features in non-traditional long-duration contracts from actual versus expected market performance based on the Company’s view of bond and equity performance was a benefit of $36 million for the nine months ended September 30, 2017 reflecting favorable equity market and bond fund returns compared to a benefit of $2 million for the prior year period.

• A $459 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 $122 million for the nine months endedSeptember 30, 2017 compared to a favorable impact of $337 million for the prior year period.

• A $345 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 $1.7 billion change in the market impact on variable annuity guaranteed living benefits reserves, an unfavorable $1.4 billion change in the market impact on derivatives hedging the variable annuity guaranteed benefits and a favorable $2 million change in the DSIC offset. The main market drivers contributing to these changes are summarized below:

• Interest rate impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a lower expense for the nine months ended September 30, 2017 compared to the prior year period.

• Equity market impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the nine months ended September 30, 2017 compared to an expense in the prior year period.

• Volatility impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a higher expense for the nine months ended September 30, 2017 compared to the prior year period.

• Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and various behavioral items, were a net favorable impact compared to the prior year period.

Interest credited to fixed accounts increased $44 million or 9% to $509 million for the nine months endedSeptember 30, 2017 compared to $465 million for the prior year period primarily due to the market impact on indexed universal life benefits, net of hedges, which was an expense of $14 million for the nine months ended September 30, 2017 compared to a benefit of $25 million for the prior year period.

Amortization of DAC decreased $157 million or 53% to $142 million for the nine months endedSeptember 30, 2017 compared to $299 million for the prior year period primarily reflecting the following items:

• The impact of unlocking was a benefit of $12 million for the nine months ended September 30, 2017 compared to an expense of $81 million for the prior year period. The impact of unlocking in the third quarter of 2017 primarily reflected improved persistency and mortality on life insurance contracts and a $10 million benefit from a correction related to a variable annuity

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RIVERSOURCE LIFE INSURANCE COMPANY

model assumption, partially offset by updates to the market-related inputs to the living benefit valuation. The impact of unlocking in the prior year period primarily reflected low interest rates that more than offset benefits from persistency on annuity contracts without living benefits. In addition, the Company wrote-off $58 million of DAC in connection with the loss recognition on LTC insurance products in the prior year period.

• The impact on DAC from actual versus expected market performance based on the Company’s view of bond and equity performance was a benefit of $27 million for the nine months ended September 30, 2017 reflecting favorable equity market and bond fund returns compared to a benefit of $3 million for the prior year period.

• The DAC offset to the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC amortization) was a benefit of $18 million for the nine months ended September 30, 2017 compared to an expense of $9 million for the prior year period.

Income Taxes

The Company’s effective tax rate was 9.4% for the nine months endedSeptember 30, 2017 compared to 5.8% for the nine months endedSeptember 30, 2016. 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 nine months endedSeptember 30, 2017 compared to the prior year period was primarily due to higher levels of pretax income.

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 the 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 September 30, 2019 due to prepayment, maturity or call activity at the option of the issuer, excluding securities with a make-whole provision, was $3.5 billion and 5.4%, respectively, as of September 30, 2017. In addition, residential mortgage-backed securities, which are subject to prepayment risk as a result of the low interest rate environment, totaled $3.1 billion and had a weighted average yield of 3.3% as of September 30, 2017. 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 nine months endedSeptember 30, 2017 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 GMIRs, 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 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.

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RIVERSOURCE LIFE INSURANCE COMPANY

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 futures, options, swaps and swaptions. 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.

The following tables present the Company’s estimate of the impact on pretax income from the above defined hypothetical market movements as of September 30, 2017:

Equity Price Decline 10%	Equity Price Exposure to Pretax Income
	Before Hedge Impact			Hedge Impact			Net Impact
	(in millions)
Asset-based fees and expenses	$	(89	)	$	—		$	(89	)
DAC and DSIC amortization (1) (2)	(129		)	—			(129		)
Variable annuity riders:
GMDB and GMIB (2)	(29		)	—			(29		)
GMWB	(379		)	233			(146		)
GMAB	(25		)	26			1
DAC and DSIC amortization (3)	N/A			N/A			(3		)
Total variable annuity riders	(433		)	259			(177		)
Macro hedge program (4)	—			27			27
Equity indexed annuities	1			(1		)	—
Indexed universal life insurance	66			(49		)	17
Total	$	(584	)	$	236		$	(351	)

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RIVERSOURCE LIFE INSURANCE COMPANY

Interest Rate Increase 100 Basis Points	Interest Rate Exposure to Pretax Income
	Before Hedge Impact			Hedge Impact			Net Impact
	(in millions)
Asset-based fees and expenses	$	(28	)	$	—		$	(28	)
Variable annuity riders:
GMDB and GMIB	—			—			—
GMWB	983			(1,089		)	(106		)
GMAB	21			(23		)	(2		)
DAC and DSIC amortization (3)	N/A			N/A			18
Total variable annuity riders	1,004			(1,112		)	(90		)
Macro hedge program(4)	—			(1		)	(1		)
Fixed annuities, fixed insurance and fixed portion of variable annuities and variable insurance products	99			—			99
Indexed universal life insurance	93			2			95
Total	$	1,168		$	(1,111	)	$	75

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 and the life contingent benefits associated with GMWB.

⁽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 $361 million related to a 10% equity price decline and an estimated positive net impact to pretax income of $141 million related to a 100 basis point increase in interest rates as of December 31, 2016. The change in interest rate exposure from December 31, 2016 is primarily the result of changes in market conditions.

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 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

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RIVERSOURCE LIFE INSURANCE COMPANY

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 observable market data 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 September 30, 2017. 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 $213 million, net of DAC, DSIC, unearned revenue amortization, the reinsurance accrual and income taxes (calculated at the statutory tax rate of 35%), based on September 30, 2017 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 its parent, Ameriprise Financial, Inc. (“Ameriprise Financial”). Other liquidity sources the Company has established are short-term borrowings and available lines of credit with Ameriprise Financial aggregating $990 million.

The Company enters into short-term borrowings, which may include repurchase agreements and Federal Home Loan Bank (“FHLB”) advances to reduce reinvestment risk. 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 as of both September 30, 2017 and December 31, 2016 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. As of September 30, 2017, the Company had estimated maximum borrowing capacity of $5.6 billion under the FHLB facility, of which $151 million was outstanding and 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.

In 2009, the Company established an agreement to protect its exposure to Genworth Life Insurance Company (“GLIC”) for its reinsured LTC. In 2016, substantial enhancements to this reinsurance protection agreement were finalized. The terms of these confidential provisions within the agreement have been shared, in the normal course of regular reviews, with the Company’s domiciliary regulator and rating agencies. Management believes that this agreement and offsetting non LTC legacy arrangements with Genworth will enable the Company to recover on all net exposure in the event of an insolvency of GLIC.

Capital Activity

Dividends paid and received by RiverSource Life Insurance Company were as follows:

	Nine Months Ended September 30,
	2017		2016
	(in millions)
Cash dividends paid to Ameriprise Financial	$	700	$	800
Cash dividends received from RiverSource Life Insurance Co. of New York (“RiverSource Life of NY”)	50		50
Cash dividends received from RiverSource Tax Advantaged Investments, Inc.	20		15

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 were as follows:

	Actual Capital(1)				Regulatory Capital  Requirements(2)
	September 30, 2017		December 31, 2016		December 31, 2016
	(in millions)
RiverSource Life Insurance Company	$	2,737	$	3,052	$	606
RiverSource Life Insurance Co. of NY	306		323		38

⁽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.

44

RIVERSOURCE LIFE INSURANCE COMPANY

Insurance companies’ statutory capital is calculated in accordance with the accounting practices prescribed or permitted by domiciliary state insurance regulators. RiverSource Life Insurance Company received approval from the Minnesota Department of Commerce to apply a permitted statutory accounting practice, effective July 1, 2017 through June 30, 2018, for certain derivative instruments used to economically hedge the interest rate exposure of certain variable annuity products that do not qualify for statutory hedge accounting. The permitted practice is intended to mitigate the impact to statutory capital from the misalignment between variable annuity statutory reserves, which are not carried at fair value, and the fair value of derivatives used to economically hedge the interest rate exposure of non-life contingent living benefit guarantees. The permitted practice allows RiverSource Life Insurance Company to defer a portion of the change in fair value, net investment income and realized gains or losses generated from designated derivatives to the extent the amounts do not offset the current period interest-rate related change in the variable annuity statutory reserve liability. The deferred amount will be amortized over ten years using the straight-line method with the ability to accelerate amortization at management’s discretion. There was no immediate impact to statutory capital at the effective date for the permitted statutory accounting practice. As of September 30, 2017, application of this permitted practice resulted in a decrease to RiverSource Life Insurance Company’s statutory capital of approximately $21 million.

Contractual Commitments

There have been no material changes to the Company’s contractual obligations disclosed in the Company’s 2016 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 that may be implemented or modified in connection with the Dodd-Frank Wall Street Reform and Consumer Protection Act or in light of the U.S. Department of Labor rule and exemptions pertaining to the fiduciary status of investment advice providers to 401(k) plans, 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;

• 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;

45

RIVERSOURCE LIFE INSURANCE COMPANY

• 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 re-engineering 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, (such as the uncertain regulatory environment in the U.S. after the recent U.S. election), 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 shouldbe read inconjunctionwiththe “Risk Factors” discussion included in Part I, Item 1A of the Company’s 2016 10-K.

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 September 30, 2017.

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

There have been no material changes in the risk factors provided in Part I, Item 1A of RiverSource Life Insurance Company’s 2016 10-K.

46

RIVERSOURCE LIFE INSURANCE COMPANY

ITEM 6. EXHIBITS

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.
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 September 30, 2017, formatted in XBRL: (i) Consolidated Balance Sheets at September 30, 2017 and December 31, 2016; (ii) Consolidated Statements of Income for the three months and nine months ended September 30, 2017 and 2016; (iii) Consolidated Statements of Comprehensive Income for the three months and nine months ended September 30, 2017 and 2016; (iv) Consolidated Statements of Shareholder’s Equity for the nine months ended September 30, 2017 and 2016; (v) Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016; and (vi) Notes to the Consolidated Financial Statements.
* Filed electronically herewithin.

47

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:	November 1, 2017	By	/s/ John R. Woerner
			John R. Woerner
			Chairman and President
Date:	November 1, 2017	By	/s/ Brian J. McGrane
			Brian J. McGrane
			Executive Vice President and
			Chief Financial Officer

48

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:    November 1, 2017

/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:    November 1, 2017

/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 September 30, 2017, 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:	November 1, 2017
/s/ Brian J. McGrane
Name:	Brian J. McGrane
Title:	Chief Financial Officer
Date:	November 1, 2017

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 01, 2017
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	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		100,000

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Available-for-Sale:
Fixed maturities, at fair value (amortized cost: 2017, $20,732; 2016, $21,464)	$ 22,163	$ 22,682
Common stocks, at fair value (cost: 2017 and 2016, $4)	8	10
Mortgage loans (net of allowance for loan losses: 2017 and 2016, $19) (portion measured at fair value: 2017, $251; 2016, nil)	2,880	2,874
Policy loans	841	830
Other Investments	957	998
Total investments	26,849	27,394
Cash and cash equivalents	734	323
Reinsurance recoverables	2,846	2,623
Other receivables	213	262
Accrued investment income	221	237
Deferred acquisition costs	2,624	2,611
Other assets	4,130	4,305
Separate account assets	80,654	76,298
Total assets	118,271	114,053
Liabilities:
Policyholder account balances, future policy benefits and claims	29,242	29,514
Short-term borrowings	201	200
Other liabilities	4,369	4,253
Separate account liabilities	80,654	76,298
Total liabilities	114,466	110,265
Shareholder's equity:
Common stock, $30 par value; 100,000 shares authorized, issued and outstanding	3	3
Additional paid-in capital	2,466	2,466
Retained earnings	848	862
Accumulated other comprehensive income, net of tax	488	457
Total shareholder's equity	3,805	3,788
Total liabilities and shareholder's equity	$ 118,271	$ 114,053

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Fixed maturities, amortized cost	$ 20,732	$ 21,464
Common stocks, cost	4	4
Mortgage loans, allowance for loan losses	19	19
Mortgage loans, portion measured at fair value	$ 251	$ 0
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

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues
Premiums	$ 99	$ 104	$ 304	$ 315
Net investment income	261	276	797	850
Policy and contract charges	444	557	1,415	1,501
Other revenues	103	104	308	303
Net realized investment gains (losses)	0	1	31	15
Total revenues	907	1,042	2,855	2,984
Benefits and expenses
Benefits, claims, losses and settlement expenses	236	590	920	1,148
Interest credited to fixed accounts	176	161	509	465
Amortization of deferred acquisition costs	32	144	142	299
Other insurance and operating expenses	176	149	527	505
Total benefits and expenses	620	1,044	2,098	2,417
Pretax income (loss)	287	(2)	757	567
Income tax provision (benefit)	34	(38)	71	33
Net Income	253	36	686	534
Supplemental Disclosures:
Total other-than-temporary impairment losses on securities	0	0	0	0
Portion of loss recognized in other comprehensive income (before taxes)	0	0	0	0
Net impairment losses recognized in net realized investment gains (losses)	$ 0	$ 0	$ 0	$ 0

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net Income	$ 253	$ 36	$ 686	$ 534
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on securities	(7)	(26)	29	340
Net unrealized gains (losses) on derivatives	1	1	3	3
Other	0	0	(1)	0
Total other comprehensive income (loss), net of tax	(6)	(25)	31	343
Total comprehensive income	$ 247	$ 11	$ 717	$ 877

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, 2015	[1]	$ 4,039	$ 3	$ 2,465	$ 1,176	$ 395
Comprehensive income:
Net Income		534			534
Other comprehensive income (loss), net of tax		343				343
Total comprehensive income		877
Tax adjustment on share-based incentive compensation plan		2		2
Cash dividends to Ameriprise Financial, Inc.		(800)			(800)
Ending balance at Sep. 30, 2016	[1]	4,118	3	2,467	910	738
Beginning balance at Dec. 31, 2016		3,788	3	2,466	862	457
Comprehensive income:
Net Income		686			686
Other comprehensive income (loss), net of tax		31				31
Total comprehensive income		717
Cash dividends to Ameriprise Financial, Inc.		(700)			(700)
Ending balance at Sep. 30, 2017		$ 3,805	$ 3	$ 2,466	$ 848	$ 488

[1] Prior period retained earnings were restated in the fourth quarter of 2016. See Note 1 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Statement of Cash Flows [Abstract]
Net Income	$ 686	$ 534
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, amortization and accretion, net	36	30
Deferred income tax (benefit) expense	(71)	(5)
Contractholder and policyholder charges, non-cash	(268)	(260)
Loss from equity method investments	44	43
Net realized investment (gains) losses	(31)	(17)
Other-than-temporary impairments and provision for loan losses recognized in net realized investment gains (losses)	0	2
Change in operating assets and liabilities:
Deferred acquisition costs	(31)	87
Policyholder account balances, future policy benefits and claims, net	(118)	1,389
Derivatives, net of collateral	500	(658)
Reinsurance recoverables	(235)	(200)
Other receivables	50	(20)
Accrued investment income	16	11
Other, net	(55)	170
Net cash provided by (used in) operating activities	523	1,106
Available-for-Sale securities:
Proceeds from sales	209	254
Maturities, sinking fund payments and calls	1,843	1,815
Purchases	(1,315)	(2,343)
Proceeds from sales, maturities and repayments of mortgage loans	341	679
Funding of mortgage loans	(352)	(327)
Proceeds from sales and collections of other investments	126	101
Purchase of other investments	(154)	(105)
Purchase of land, buildings, equipment and software	(7)	(7)
Change in policy loans, net	(11)	(12)
Other, net	31	23
Net cash provided by (used in) investing activities	711	78
Policyholder account balances:
Deposits and other additions	1,538	1,532
Net transfers from (to) separate accounts	(120)	113
Surrenders and other benefits	(1,413)	(1,448)
Proceeds from lines of credit with Ameriprise Financial, Inc.	5	10
Payments on lines of credit with Ameriprise Financial, Inc.	(5)	(10)
Cash received for purchased options with deferred premiums	43	242
Cash paid for purchased options with deferred premiums	(171)	(238)
Cash dividends to Ameriprise Financial, Inc.	(700)	(800)
Net cash provided by (used in) financing activities	(823)	(599)
Net increase (decrease) in cash and cash equivalents	411	585
Cash and cash equivalents at beginning of period	323	370
Cash and cash equivalents at end of period	734	955
Supplemental Disclosures:
Income taxes paid (received), net	243	(31)
Interest paid on borrowings	1	1
Non-cash investing activity:
Partnership commitments not yet remitted	$ 9	$ 75

XML

Basis of Presentation

9 Months Ended

Sep. 30, 2017

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 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.

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 fair statement of the consolidated financial position and results of operations for the interim periods have been made. Except for the adjustment described below, all adjustments made were of a normal recurring nature.

In the first quarter of 2017, the Company recorded a $20 million decrease to income tax provision related to an out-of-period correction for a reversal of a tax reserve.

In the third quarter of 2017, the Company recorded a $14 million out-of-period correction related to a variable annuity model assumption that decreased amortization of deferred acquisition costs (“DAC”) by $10 million and decreased benefits, claims, losses and settlement expenses by $4 million.

The impact to prior period financial statements of these out-of-period corrections was not material.

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, 2016, filed with the Securities and Exchange Commission on February 23, 2017 (“2016 10-K”).

The Company evaluated events or transactions that may have occurred after the balance sheet date for potential recognition or disclosure through the date the financial statements were issued. No subsequent events or transactions were identified.

XML

Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2017

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Adoption of New Accounting Standards

Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments

In August 2016, the Financial Accounting Standards Board (“FASB”) updated the accounting standards related to classification of certain cash receipts and cash payments on the statement of cash flows. The update includes amendments to address diversity in practice for the classification of eight specific cash flow activities. The specific amendments the Company evaluated include the classification of debt prepayment and extinguishment costs, contingent consideration payments, proceeds from insurance settlements and corporate owned life insurance settlements, distributions from equity method investees and the application of the predominance principle to separately identifiable cash flows. The standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted and all amendments must be adopted during the same period. The Company early adopted the standard for the interim period ended March 31, 2017 on a retrospective basis. The adoption of the standard did not have a material impact on the Company’s operating, investing or financing cash flows.

Future Adoption of New Accounting Standards

Derivatives and Hedging – Targeted Improvements to Accounting for Hedging Activities

In August 2017, the FASB updated the accounting standards to amend the hedge accounting recognition and presentation requirements. The objectives of the update are to better align the financial reporting of hedging relationships to the economic results of an entity’s risk management activities and simplify the application of the hedge accounting guidance. The update also adds new disclosures and amends existing disclosure requirements. The standard is effective for interim and annual periods beginning after December 15, 2018, and should be applied on a modified retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations.

Receivables - Premium Amortization on Purchased Callable Debt Securities

In March 2017, the FASB updated the accounting standards to shorten the amortization period for certain purchased callable debt securities held at a premium. Under current guidance, premiums are generally amortized over the contractual life of the security. The amendments require the premium to be amortized to the earliest call date. The update applies to securities with explicit, non-contingent call features that are callable at fixed prices and on preset dates. The standard is effective for interim and annual periods beginning after December 15, 2018, and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption is permitted. The update is not expected to have a material impact on the Company’s consolidated financial condition or results of operations.

Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory

In October 2016, the FASB updated the accounting standards related to the recognition of income tax impacts on intra-entity transfers. The update requires entities to recognize the income tax consequences of intra-entity transfers, other than inventory, upon the transfer of the asset. The update requires the selling entity to recognize a current tax expense or benefit and the purchasing entity to recognize a deferred tax asset or liability when the transfer occurs. The standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations.

Financial Instruments – Measurement of Credit Losses

In June 2016, the FASB updated the accounting standards related to accounting for credit losses on certain types of financial instruments. The update replaces the current incurred loss model for estimating credit losses with a new model that requires an entity to estimate the credit losses expected over the life of the asset. Generally, the initial estimate of the expected credit losses and subsequent changes in the estimate will be reported in current period earnings and recorded through an allowance for credit losses on the balance sheet. The current credit loss model for Available-for-Sale debt securities does not change; however, the credit loss calculation and subsequent recoveries are required to be recorded through an allowance. The standard is effective for interim and annual periods beginning after December 15, 2019. Early adoption will be permitted for interim and annual periods beginning after December 15, 2018. A modified retrospective cumulative adjustment to retained earnings should be recorded as of the first reporting period in which the guidance is effective for loans, receivables, and other financial instruments subject to the new expected credit loss model. Prospective adoption is required for establishing an allowance related to Available-for-Sale debt securities, certain beneficial interests, and financial assets purchased with a more-than-insignificant amount of credit deterioration since origination. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations.

Leases – Recognition of Lease Assets and Liabilities on Balance Sheet

In February 2016, the FASB updated the accounting standards for leases. The update was issued to increase transparency and comparability for the accounting of lease transactions. The standard will require most lease transactions for lessees to be recorded on the balance sheet as lease assets and lease liabilities and both quantitative and qualitative disclosures about leasing arrangements. The standard is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. The update should be applied at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations.

Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities

In January 2016, the FASB updated the accounting standards on the recognition and measurement of financial instruments. The update requires entities to carry marketable equity securities, excluding investments in securities that qualify for the equity method of accounting, at fair value with changes in fair value reflected in net income each reporting period. The update affects other aspects of accounting for equity instruments, as well as the accounting for financial liabilities utilizing the fair value option. The update eliminates the requirement to disclose the methods and assumptions used to estimate the fair value of financial assets or liabilities held at cost on the balance sheet and requires entities to use the exit price notion when measuring the fair value of financial instruments. The standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted for certain provisions. Generally, the update should be applied using a modified retrospective approach by recording a cumulative-effect adjustment to equity at the beginning of the period of adoption. The update is not expected to have a material impact on the consolidated financial condition or 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 and requires disclosure of quantitative and qualitative information that enables users of financial statements to understand the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. Subsequent related updates provide clarification on certain revenue recognition guidance in the new standard. The standard is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted for interim and annual periods beginning after December 15, 2016. The standard may be applied retrospectively for all periods presented or retrospectively with a cumulative-effect adjustment at the date of adoption. The Company plans to adopt the revenue recognition guidance on a retrospective basis in the first quarter of 2018. The update does not apply to revenue associated with the manufacturing of insurance and annuity products or financial instruments as these revenues are in the scope of other standards. Therefore, the Company does not expect the update to have an impact on these revenues. The Company’s implementation efforts include the identification of revenue within the guidance and the review of the customer contracts to determine the Company’s performance obligation and the associated timing of each performance obligation. The update is not expected to have a material impact on the consolidated financial condition and results of operations. The Company continues to evaluate the impact on disclosures.

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Variable Interest Entities Variable Interest Entities

9 Months Ended

Sep. 30, 2017

Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net [Abstract]

Variable Interest Entities [Text Block]

Variable Interest Entities

The Company is a limited partner in affordable housing partnerships that qualify for government-sponsored low income housing tax credit programs and partnerships that invest in multi-family residential properties that were originally developed with an affordable housing component. The Company has determined it is not the primary beneficiary and therefore does not consolidate these partnerships.

A majority of the limited partnerships are VIEs. The Company’s maximum exposure to loss as a result of its investment in the VIEs is limited to the carrying value. The carrying value is reflected in other investments and was $455 million and $482 million as of September 30, 2017 and December 31, 2016, respectively. The Company had a $114 million and $135 million liability recorded as of September 30, 2017 and December 31, 2016, respectively, related to original purchase commitments not yet remitted to the VIEs. The Company has not provided any additional support and is not contractually obligated to provide additional support to the VIEs beyond the above mentioned funding commitments.

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 on these structured investments.

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Investments

9 Months Ended

Sep. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Investments [Text Block]

Investments

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

Description of Securities	September 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI (1)
	(in millions)
Fixed maturities:
Corporate debt securities	$	12,415	$	1,137	$	(21	)	$	13,531	$	—
Residential mortgage backed securities	3,065		66		(18		)	3,113		—
Commercial mortgage backed securities	3,148		61		(25		)	3,184		—
State and municipal obligations	1,109		196		(9		)	1,296		—
Asset backed securities	710		30		(2		)	738		—
Foreign government bonds and obligations	284		21		(5		)	300		—
U.S. government and agencies obligations	1		—		—			1		—
Total fixed maturities	20,732		1,511		(80		)	22,163		—
Common stocks	4		4		—			8		3
Total	$	20,736	$	1,515	$	(80	)	$	22,171	$	3

Description of Securities	December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI (1)
	(in millions)
Fixed maturities:
Corporate debt securities	$	13,105	$	1,060	$	(53	)	$	14,112	$	—
Residential mortgage backed securities	3,386		72		(43		)	3,415		(4		)
Commercial mortgage backed securities	2,837		58		(38		)	2,857		—
State and municipal obligations	1,092		161		(24		)	1,229		—
Asset backed securities	790		26		(11		)	805		—
Foreign government bonds and obligations	251		17		(7		)	261		—
U.S. government and agencies obligations	3		—		—			3		—
Total fixed maturities	21,464		1,394		(176		)	22,682		(4		)
Common stocks	4		6		—			10		3
Total	$	21,468	$	1,400	$	(176	)	$	22,692	$	(1	)

 ⁽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 September 30, 2017 and December 31, 2016, investment securities with a fair value of $1.6 billion and $1.5 billion, respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $697 million and $428 million, respectively, may be sold, pledged or rehypothecated by the counterparty.

As of both September 30, 2017 and December 31, 2016, fixed maturity securities comprised approximately 83% 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. As of September 30, 2017 and December 31, 2016, approximately $962 million and $944 million, 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:

Ratings	September 30, 2017						December 31, 2016
	Amortized Cost		Fair Value		Percent of Total Fair Value		Amortized Cost		Fair Value		Percent of Total Fair Value
	(in millions, except percentages)
AAA	$	5,908	$	5,988	27	%	$	5,671	$	5,728	25	%
AA	1,079		1,274		6		1,013		1,177		5
A	3,579		4,019		18		3,767		4,167		19
BBB	8,985		9,666		44		9,584		10,190		45
Below investment grade	1,181		1,216		5		1,429		1,420		6
Total fixed maturities	$	20,732	$	22,163	100	%	$	21,464	$	22,682	100	%

As of September 30, 2017 and December 31, 2016, approximately 37% and 40%, respectively, of the securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any other issuer were greater than 10% of total equity.

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

Description of Securities	September 30, 2017
	Less than 12 months						12 months or more						Total
	Number  of Securities	Fair Value		Unrealized Losses			Number  of Securities	Fair Value		Unrealized Losses			Number  of Securities	Fair Value		Unrealized Losses
	(in millions, except number of securities)
Corporate debt securities	53	$	520	$	(6	)	21	$	178	$	(15	)	74	$	698	$	(21	)
Residential mortgage backed securities	43	833		(11		)	26	249		(7		)	69	1,082		(18		)
Commercial mortgage backed securities	67	1,172		(19		)	14	180		(6		)	81	1,352		(25		)
State and municipal obligations	19	55		—			5	123		(9		)	24	178		(9		)
Asset backed securities	11	113		(1		)	9	63		(1		)	20	176		(2		)
Foreign government bonds and obligations	8	19		—			14	21		(5		)	22	40		(5		)
Total	201	$	2,712	$	(37	)	89	$	814	$	(43	)	290	$	3,526	$	(80	)

Description of Securities	December 31, 2016
	Less than 12 months						12 months or more						Total
	Number of Securities	Fair Value		Unrealized Losses			Number  of Securities	Fair Value		Unrealized Losses			Number  of Securities	Fair Value		Unrealized Losses
	(in millions, except number of securities)
Corporate debt securities	114	$	1,502	$	(26	)	33	$	319	$	(27	)	147	$	1,821	$	(53	)
Residential mortgage backed securities	56	1,282		(25		)	56	324		(18		)	112	1,606		(43		)
Commercial mortgage backed securities	80	1,378		(37		)	1	11		(1		)	81	1,389		(38		)
State and municipal obligations	18	66		(3		)	2	105		(21		)	20	171		(24		)
Asset backed securities	23	231		(6		)	12	114		(5		)	35	345		(11		)
Foreign government bonds and obligations	7	30		(1		)	15	23		(6		)	22	53		(7		)
Total	298	$	4,489	$	(98	)	119	$	896	$	(78	)	417	$	5,385	$	(176	)

As part of the Company’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities is attributable to a decline in interest rates on the long end of the interest rate curve and tighter credit spreads.

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) (“OCI”):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017			2016
	(in millions)
Beginning balance	$	—	$	33	$	21		$	33
Reductions for securities sold during the period (realized)	—		—		(21		)	—
Ending balance	$	—	$	33	$	—		$	33

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	(in millions)
Gross realized investment gains	$	5		$	5		$	38		$	18
Gross realized investment losses	(2		)	(3		)	(4		)	(11		)
Total	$	3		$	2		$	34		$	7

See Note 13 for a rollforward of net unrealized investment gains (losses) included in AOCI.

Available-for-Sale securities by contractual maturity as of September 30, 2017 were as follows:

	Amortized Cost		Fair Value
	(in millions)
Due within one year	$	1,560	$	1,588
Due after one year through five years	5,213		5,466
Due after five years through 10 years	3,314		3,460
Due after 10 years	3,722		4,614
	13,809		15,128
Residential mortgage backed securities	3,065		3,113
Commercial mortgage backed securities	3,148		3,184
Asset backed securities	710		738
Common stocks	4		8
Total	$	20,736	$	22,171

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.

The following is a summary of net investment income:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	(in millions)
Fixed maturities	$	237		$	249		$	717		$	751
Mortgage loans	34			38			103			115
Other investments	(4		)	(4		)	(4		)	4
	267			283			816			870
Less: investment expenses	6			7			19			20
Total	$	261		$	276		$	797		$	850

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Financing Receivables

9 Months Ended

Sep. 30, 2017

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 the nine months ended and the ending balance of the allowance for loan losses by impairment method:

	September 30,
	2017		2016
	(in millions)
Beginning balance	$	25	$	25
Charge-offs	—		(1		)
Provisions	—		1
Ending balance	$	25	$	25
Individually evaluated for impairment	$	3	$	2
Collectively evaluated for impairment	22		23

The recorded investment in financing receivables by impairment method was as follows:

	September 30, 2017		December 31, 2016
	(in millions)
Individually evaluated for impairment	$	18	$	10
Collectively evaluated for impairment	3,271		3,275
Total	$	3,289	$	3,285

As of September 30, 2017 and December 31, 2016, 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 $5 million, respectively.

During the three months ended September 30, 2017 and 2016, the Company purchased $14 million and $17 million, respectively, and sold $9 million and nil, respectively, of syndicated loans. During the nine months ended September 30, 2017 and 2016, the Company purchased $121 million and $54 million, respectively, of syndicated loans, and sold $12 million and $250 million, respectively, of loans. The $250 million (amortized cost, net of unamortized discount) of loans sold during the nine months ended September 30, 2016 consisted of residential mortgage loans sold on March 30, 2016 to an unaffiliated third party. The Company received cash proceeds of $260 million and recognized a gain of $10 million.

Credit Quality Information

Nonperforming loans, which are generally loans 90 days or more past due, were $2 million as of both September 30, 2017 and December 31, 2016. All other loans were considered to be performing.

Commercial Mortgage Loans

The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates as necessary. Commercial mortgage loans which management has assigned its highest risk rating were 1% and nil of total commercial mortgage loans as of September 30, 2017 and December 31, 2016, respectively. Loans with the highest risk rating represent distressed loans which the Company has identified as impaired or expects to become delinquent or enter into foreclosure within the next six months. In addition, the Company reviews the concentrations of credit risk by region and property type.

Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows:

	Loans				Percentage
	September 30, 2017		December 31, 2016		September 30, 2017		December 31, 2016
	(in millions)
South Atlantic	$	738	$	753	28	%	29	%
Pacific	754		722		28		28
Mountain	242		234		9		9
West North Central	205		212		8		8
Middle Atlantic	186		191		7		7
East North Central	231		195		9		8
West South Central	128		122		5		5
New England	79		84		3		3
East South Central	85		80		3		3
	2,648		2,593		100	%	100	%
Less: allowance for loan losses	19		19
Total	$	2,629	$	2,574

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

	Loans				Percentage
	September 30, 2017		December 31, 2016		September 30, 2017		December 31, 2016
	(in millions)
Retail	$	896	$	916	34	%	35	%
Office	485		473		18		18
Apartments	540		483		20		19
Industrial	442		430		17		17
Mixed use	42		42		2		2
Hotel	40		41		1		1
Other	203		208		8		8
	2,648		2,593		100	%	100	%
Less: allowance for loan losses	19		19
Total	$	2,629	$	2,574

Residential Mortgage Loans

The recorded investment in residential mortgage loans as of September 30, 2017 and December 31, 2016 was $251 million and $300 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 September 30, 2017 and December 31, 2016, no allowance for loan losses was recorded.

As of September 30, 2017 and December 31, 2016, approximately 1% and 2%, respectively, of residential mortgage loans had FICO scores below 640. As of both September 30, 2017 and December 31, 2016, none of the Company’s residential mortgage loans had LTV ratios greater than 90%. The Company’s most significant geographic concentrations for residential mortgage loans are in California representing 52% of the portfolio as of both September 30, 2017 and December 31, 2016. Colorado and Washington represent 18% and 13%, respectively, of the portfolio as of both September 30, 2017 and December 31, 2016. No other state represents more than 10% of the total residential mortgage loan portfolio.

During the third quarter of 2017, the Company entered into an agreement with an unaffiliated third party to sell its remaining $255 million of residential mortgage loans and recorded a $4 million loss to reflect the loans at fair value.

Syndicated Loans

The recorded investment in syndicated loans as of September 30, 2017 and December 31, 2016 was $390 million and $392 million, respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. The primary credit indicator for syndicated loans is whether the loans are performing in accordance with the contractual terms of the syndication. Total nonperforming syndicated loans as of September 30, 2017 and December 31, 2016 were $2 million and $1 million, respectively.

Troubled Debt Restructurings

The recorded investment in restructured loans was not material as of September 30, 2017 and December 31, 2016. The troubled debt restructurings did not have a material impact to the Company’s allowance for loan losses or income recognized for the three months and nine months endedSeptember 30, 2017 and 2016. There are no commitments to lend additional funds to borrowers whose loans have been restructured.

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Deferred Acquisition Costs and Deferred Sales Inducement Costs

9 Months Ended

Sep. 30, 2017

Deferred Acquisition Costs and Deferred Sales Inducement Costs

Deferred Acquisition Costs and Deferred Sales Inducement Costs

Deferred Acquisition Costs and Deferred Sales Inducement Costs

In the third quarter of the year, management updated market-related inputs and implemented model changes related to our living benefit valuation. In addition, management conducted its annual review of life insurance and annuity valuation assumptions relative to current experience and management expectations including modeling changes. These aforementioned changes are collectively referred to as unlocking. The impact of unlocking to DAC in the third quarter of 2017 primarily reflected improved persistency and mortality on life insurance contracts and a correction related to a variable annuity model assumption partially offset by updates to market-related inputs to the living benefit valuation. The impact of unlocking to DAC in the third quarter of 2016 primarily reflected low interest rates that more than offset benefits from persistency on annuity contracts without living benefits. In addition, the Company’s review of its closed LTC business in the prior year period resulted in the write-off of DAC, which was included in the impact of unlocking.

The balances of and changes in DAC were as follows:

	2017			2016
	(in millions)
Balance at January 1	$	2,611		$	2,693		(1)
Capitalization of acquisition costs	173			212			(2)
Amortization, excluding the impact of valuation assumptions review	(154		)	(218		)
Amortization, impact of valuation assumptions review	12			(81		)
Impact of change in net unrealized securities (gains) losses	(18		)	(105		)
Balance at September 30	$	2,624		$	2,501		(1)

⁽¹⁾  DAC balances were restated for the correction of commission expense accrual for certain insurance and annuity products in the fourth quarter of 2016. See Note 1 in the 2016 10-K.

⁽²⁾  Includes a $27 million benefit related to the write-off of the deferred reinsurance liability in connection with the loss recognition on LTC business.

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

	2017			2016
	(in millions)
Balance at January 1	$	301		$	334
Capitalization of sales inducement costs	3			4
Amortization, excluding the impact of valuation assumptions review	(27		)	(32		)
Amortization, impact of valuation assumptions review	(1		)	4
Impact of change in net unrealized securities (gains) losses	1			(14		)
Balance at September 30	$	277		$	296

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

9 Months Ended

Sep. 30, 2017

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:

	September 30, 2017				December 31, 2016
	(in millions)
Policyholder account balances
Fixed annuities (1)	$	10,100			$	10,588
Variable annuity fixed sub-accounts	5,187				5,211
Variable universal life (“VUL”)/universal life (“UL”) insurance	3,028				3,007
Indexed universal life (“IUL”) insurance	1,290				1,054
Other life insurance	731				758
Total policyholder account balances	20,336				20,618
Future policy benefits
Variable annuity guaranteed minimum withdrawal benefits (“GMWB”)	539				1,017
Variable annuity guaranteed minimum accumulation benefits (“GMAB”)	(73		)	(2)	(24		)	(2)
Other annuity liabilities	85				66
Fixed annuity life contingent liabilities	1,482				1,497
Life, disability income and long term care insurance	6,027				5,556
VUL/UL and other life insurance additional liabilities	674				588
Total future policy benefits	8,734				8,700
Policy claims and other policyholders’ funds	172				196
Total policyholder account balances, future policy benefits and claims	$	29,242			$	29,514

⁽¹⁾  Includes fixed deferred annuities, non-life contingent fixed payout annuities and equity indexed annuity (“EIA”) host contracts.

⁽²⁾  Includes the fair value of GMAB embedded derivatives that was a net asset as of both September 30, 2017 and December 31, 2016 reported as a contra liability.

Separate account liabilities consisted of the following:

	September 30, 2017		December 31, 2016
	(in millions)
Variable annuity	$	73,467	$	69,606
VUL insurance	7,154		6,659
Other insurance	33		33
Total	$	80,654	$	76,298

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Variable Annuity and Insurance Guarantees

9 Months Ended

Sep. 30, 2017

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:

Variable Annuity Guarantees by Benefit Type (1)	September 30, 2017							December 31, 2016
	Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk		Weighted Average Attained Age	Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk			Weighted Average Attained Age
	(in millions, except age)
GMDB:
Return of premium	$	59,806	$	57,840	$	11	66	$	56,143	$	54,145	$	208		65
Five/six-year reset	8,869		6,141		13		66	8,878		6,170		22			66
One-year ratchet	6,502		6,139		12		69	6,426		6,050		110			68
Five-year ratchet	1,562		1,504		1		65	1,542		1,483		7			64
Other	1,057		1,034		58		72	965		942		86			71
Total — GMDB	$	77,796	$	72,658	$	95	66	$	73,954	$	68,790	$	433		65
GGU death benefit	$	1,103	$	1,052	$	126	69	$	1,047	$	996	$	108		68
GMIB	$	236	$	219	$	8	69	$	245	$	227	$	13		68
GMWB:
GMWB	$	2,525	$	2,517	$	2	71	$	2,650	$	2,642	$	2		70
GMWB for life	42,933		42,813		160		67	39,436		39,282		289		(2)	66
Total — GMWB	$	45,458	$	45,330	$	162	67	$	42,086	$	41,924	$	291		66
GMAB	$	3,157	$	3,153	$	—	59	$	3,484	$	3,476	$	21		59

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

⁽²⁾ Amount revised to reflect updated contractholder mortality assumptions at December 31, 2016.

The net amount at risk for GMDB, GGU and GMAB is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB is defined as the greater of the present value of the minimum guaranteed annuity payments less the current contract value or zero. The net amount at risk for GMWB is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero.

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

	September 30, 2017			December 31, 2016
	Net Amount at Risk		Weighted Average Attained Age	Net Amount at Risk		Weighted Average Attained Age
	(in millions, except age)
UL secondary guarantees	$	6,443	65	$	6,376	64

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

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

	GMDB & GGU			GMIB			GMWB (1)			GMAB (1)			UL
	(in millions)
Balance at January 1, 2016	$	14		$	8		$	1,057		$	—		$	332
Incurred claims	10			—			1,056			9			99
Paid claims	(7		)	—			—			(1		)	(18		)
Balance at September 30, 2016	$	17		$	8		$	2,113		$	8		$	413
Balance at January 1, 2017	$	16		$	8		$	1,017		$	(24	)	$	434
Incurred claims	3			—			(478		)	(49		)	59
Paid claims	(3		)	(1		)	—			—			(22		)
Balance at September 30, 2017	$	16		$	7		$	539		$	(73	)	$	471

⁽¹⁾  The incurred claims for GMWB and GMAB represent the change in the fair value of the liabilities (contra liabilities) less paid claims.

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

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

	September 30, 2017		December 31, 2016
	(in millions)
Mutual funds:
Equity	$	44,365	$	40,622
Bond	23,481		23,142
Other	5,117		5,326
Total mutual funds	$	72,963	$	69,090

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Short-term Borrowings

9 Months Ended

Sep. 30, 2017

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 September 30, 2017 and December 31, 2016, the Company has pledged $32 million and $33 million of agency residential mortgage backed securities and $16 million and $19 million of commercial mortgage backed securities, respectively. The amount of the Company’s liability including accrued interest as of both September 30, 2017 and December 31, 2016 was $50 million. The remaining maturity of outstanding repurchase agreements was less than one month as of September 30, 2017 and less than three months as of December 31, 2016. The weighted average annualized interest rate on the repurchase agreements held as of September 30, 2017 and December 31, 2016 was 1.4% and 0.9%, respectively.

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 $764 million and $771 million as of September 30, 2017 and December 31, 2016, respectively. The amount of the Company’s liability including accrued interest was $151 million and $150 million as of September 30, 2017 and December 31, 2016, respectively. The remaining maturity of outstanding FHLB advances was less than three months as of September 30, 2017 and less than four months as of December 31, 2016. The weighted average annualized interest rate on the FHLB advances held as of September 30, 2017 and December 31, 2016 was 1.3% and 0.8%, respectively.

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Fair Values of Assets and Liabilities

9 Months Ended

Sep. 30, 2017

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:

	September 30, 2017
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Available-for-Sale securities: Fixed maturities:
Corporate debt securities	$	—	$	12,385	$	1,146	$	13,531
Residential mortgage backed securities	—		3,024		89		3,113
Commercial mortgage backed securities	—		3,149		35		3,184
State and municipal obligations	—		1,296		—		1,296
Asset backed securities	—		738		—		738
Foreign government bonds and obligations	—		300		—		300
U.S. government and agencies obligations	1		—		—		1
Total Available-for-Sale securities: Fixed maturities	1		20,892		1,270		22,163
Common stocks	3		4		1		8
Cash equivalents	—		722		—		722
Other assets:
Interest rate derivative contracts	2		1,169		—		1,171
Equity derivative contracts	48		1,845		—		1,893
Credit derivative contracts	—		4		—		4
Foreign exchange derivative contracts	—		42		—		42
Total other assets	50		3,060		—		3,110
Separate account assets measured at net asset value (“NAV”)							80,654		(1)
Total assets at fair value	$	54	$	24,678	$	1,271	$	106,657

Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives	$	—	$	4	$	—	$	4
IUL embedded derivatives	—		—		577		577
GMWB and GMAB embedded derivatives	—		—		45		45		(2)
Total policyholder account balances, future policy benefits and claims	—		4		622		626		(3)
Other liabilities:
Interest rate derivative contracts	—		416		—		416
Equity derivative contracts	5		2,474		—		2,479
Foreign exchange derivative contracts	—		27		—		27
Total other liabilities	5		2,917		—		2,922
Total liabilities at fair value	$	5	$	2,921	$	622	$	3,548

	December 31, 2016
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Available-for-Sale securities: Fixed maturities:
Corporate debt securities	$	—	$	12,955	$	1,157	$	14,112
Residential mortgage backed securities	—		3,300		115		3,415
Commercial mortgage backed securities	—		2,857		—		2,857
State and municipal obligations	—		1,229		—		1,229
Asset backed securities	—		792		13		805
Foreign government bonds and obligations	—		261		—		261
U.S. government and agencies obligations	3		—		—		3
Total Available-for-Sale securities: Fixed maturities	3		21,394		1,285		22,682
Common stocks	6		4		—		10
Cash equivalents	—		302		—		302
Other assets:
Interest rate derivative contracts	—		1,735		—		1,735
Equity derivative contracts	43		1,487		—		1,530
Credit derivative contracts	—		1		—		1
Foreign exchange derivative contracts	—		80		—		80
Total other assets	43		3,303		—		3,346
Separate account assets measured at NAV							76,298		(1)
Total assets at fair value	$	52	$	25,003	$	1,285	$	102,638

Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives	$	—	$	5	$	—	$	5
IUL embedded derivatives	—		—		464		464
GMWB and GMAB embedded derivatives	—		—		614		614		(4)
Total policyholder account balances, future policy benefits and claims	—		5		1,078		1,083		(5)
Other liabilities:
Interest rate derivative contracts	1		964		—		965
Equity derivative contracts	2		1,987		—		1,989
Foreign exchange derivative contracts	2		45		—		47
Total other liabilities	5		2,996		—		3,001
Total liabilities at fair value	$	5	$	3,001	$	1,078	$	4,084

⁽¹⁾  Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy.

⁽²⁾  The fair value of the GMWB and GMAB embedded derivatives included $494 million of individual contracts in a liability position and $449 million of individual contracts in an asset position as of September 30, 2017.

⁽³⁾  The Company’s adjustment for nonperformance risk resulted in a $(376) million cumulative increase (decrease) to the embedded derivatives as of September 30, 2017.

⁽⁴⁾  The fair value of the GMWB and GMAB embedded derivatives included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position as of December 31, 2016.

⁽⁵⁾  The Company’s adjustment for nonperformance risk resulted in a $(498) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2016.

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			Common Stocks		Total
	(in millions)
Balance, July 1, 2017	$	1,190		$	89		$	—	$	11		$	—	$	1,290
Total gains (losses) included in:
Net income	1			—			—		—			—		1			(1)
Other comprehensive income	(1		)	1			—		—			—		—
Purchases	38			—			35		—			—		73
Settlements	(82		)	(1		)	—		—			—		(83		)
Transfers into Level 3	—			—			—		—			1		1
Transfers out of Level 3	—			—			—		(11		)	—		(11		)
Balance, September 30, 2017	$	1,146		$	89		$	35	$	—		$	1	$	1,271
Changes in unrealized gains (losses) relating to assets held at September 30, 2017	$	1		$	—		$	—	$	—		$	—	$	1		(1)

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, July 1, 2017	$	527			$	272			$	799
Total (gains) losses included in:
Net income	35			(2)	(309		)	(3)	(274		)
Issues	26				84				110
Settlements	(11		)		(2		)		(13		)
Balance, September 30, 2017	$	577			$	45			$	622
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2017	$	35		(2)	$	(307	)	(3)	$	(272	)

	Available-for-Sale Securities: Fixed Maturities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities		Asset Backed Securities			Total				Other Derivative Contracts
	(in millions)
Balance, July 1, 2016	$	1,197		$	15		$	—	$	130		$	1,342			$	2
Total gains (losses) included in:
Net income	(1		)	—			—		1			—			(1)	(2		)	(3)
Other comprehensive income	(2		)	—			—		—			(2		)		—
Purchases	20			106			33		—			159				—
Settlements	(21		)	(1		)	—		(1		)	(23		)		—
Transfers out of Level 3	—			—			—		(12		)	(12		)		—
Balance, September 30, 2016	$	1,193		$	120		$	33	$	118		$	1,464			$	—
Changes in unrealized gains (losses) relating to assets held at September 30, 2016	$	(1	)	$	—		$	—	$	1		$	—		(1)	$	(2	)	(3)

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, July 1, 2016	$	408			$	1,965			$	2,373
Total (gains) losses included in:
Net income	12			(2)	(280		)	(3)	(268		)
Issues	25				77				102
Settlements	(7		)		(6		)		(13		)
Balance, September 30, 2016	$	438			$	1,756			$	2,194
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2016	$	12		(2)	$	(267	)	(3)	$	(255	)

	Available-for-Sale Securities: Fixed Maturities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities		Asset Backed Securities			Common Stocks			Total
	(in millions)
Balance, January 1, 2017	$	1,157		$	115		$	—	$	13		$	—		$	1,285
Total gains (losses) included in:
Net income	1			—			—		—			—			1			(1)
Other comprehensive income	1			1			—		—			—			2
Purchases	96			67			35		49			—			247
Settlements	(109		)	(5		)	—		(13		)	—			(127		)
Transfers into Level 3	—			—			—		11			5			16
Transfers out of Level 3	—			(89		)	—		(60		)	(4		)	(153		)
Balance, September 30, 2017	$	1,146		$	89		$	35	$	—		$	1		$	1,271
Changes in unrealized gains (losses) relating to assets held at September 30, 2017	$	1		$	—		$	—	$	—		$	—		$	1		(1)

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, January 1, 2017	$	464			$	614			$	1,078
Total (gains) losses included in:
Net income	75			(2)	(798		)	(3)	(723		)
Issues	70				238				308
Settlements	(32		)		(9		)		(41		)
Balance, September 30, 2017	$	577			$	45			$	622
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2017	$	75		(2)	$	(771	)	(3)	$	(696	)

	Available-for-Sale Securities: Fixed Maturities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Total				Other Derivative Contracts
	(in millions)
Balance, January 1, 2016	$	1,235		$	21		$	3		$	133		$	1,392			$	—
Total gains (losses) included in:
Net income	(1		)	—			—			1			—			(1)	(2		)	(3)
Other comprehensive income	26			—			—			—			26				—
Purchases	34			106			42			—			182				2
Settlements	(101		)	(7		)	(3		)	(1		)	(112		)		—
Transfers into Level 3	—			—			—			12			12				—
Transfers out of Level 3	—			—			(9		)	(27		)	(36		)		—
Balance, September 30, 2016	$	1,193		$	120		$	33		$	118		$	1,464			$	—
Changes in unrealized gains (losses) relating to assets held at September 30, 2016	$	(1	)	$	—		$	—		$	1		$	—		(1)	$	(2	)	(3)

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, January 1, 2016	$	364			$	851			$	1,215
Total (gains) losses included in:
Net income	8			(2)	708			(3)	716
Issues	86				215				301
Settlements	(20		)		(18		)		(38		)
Balance, September 30, 2016	$	438			$	1,756			$	2,194
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2016	$	8		(2)	$	830		(3)	$	838

⁽¹⁾  Included in net investment income in the Consolidated Statements of Income.

⁽²⁾  Included in interest credited to fixed accounts in the Consolidated Statements of Income.

⁽³⁾  Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income.

The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $(37) million and $8 million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual for the three months ended September 30, 2017 and 2016, respectively.

The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $(91) million and $295 million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual for the nine months ended September 30, 2017 and 2016, respectively.

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

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

	September 30, 2017
	Fair Value		Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	1,144	Discounted cash flow	Yield/spread to U.S. Treasuries	0.8	%	-	2.3%	1.2	%
IUL embedded derivatives	$	577	Discounted cash flow	Nonperformance risk (1)	67 bps
GMWB and GMAB embedded derivatives	$	45	Discounted cash flow	Utilization of guaranteed withdrawals (2)	0.0	%	-	42.0%
				Surrender rate	0.1	%	-	74.7%
				Market volatility (3)	4.3	%	-	15.9%
				Nonperformance risk (1)	67 bps

	December 31, 2016
	Fair Value		Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	1,154	Discounted cash flow	Yield/spread to U.S. Treasuries	0.9	%	-	2.5%	1.3	%
IUL embedded derivatives	$	464	Discounted cash flow	Nonperformance risk (1)	82 bps
GMWB and GMAB embedded derivatives	$	614	Discounted cash flow	Utilization of guaranteed withdrawals (2)	0.0	%	-	75.6%
				Surrender rate	0.1	%	-	66.4%
				Market volatility (3)	5.3	%	-	21.2%
				Nonperformance risk (1)	82 bps

⁽¹⁾  The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives.

⁽²⁾  The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year.

⁽³⁾  Market volatility is implied volatility of fund of funds and managed volatility funds.

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

Sensitivity of Fair Value Measurements to Changes in Unobservable Inputs

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

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

Significant increases (decreases) in utilization and volatility used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly higher (lower) liability value. Significant increases (decreases) in nonperformance risk and surrender rate used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly lower (higher) liability value. Utilization of guaranteed withdrawals and surrender rates vary with the type of rider, the duration of the policy, the age of the contractholder, the distribution channel and whether the value of the guaranteed benefit exceeds the contract accumulation value.

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. The Company’s 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 is used as a practical expedient for fair value and represents the exit price for the separate account. Separate account assets are excluded from classification in the fair value hierarchy.

Other Assets

Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements. The variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active over-the-counter (“OTC”) markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial as of September 30, 2017 and December 31, 2016. 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 variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active OTC markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial as of September 30, 2017 and December 31, 2016. See Note 11 and Note 12 for further information on the credit risk of derivative instruments and related collateral.

Loans held for sale are required to be recorded at the lower of cost or fair value. During the third quarter of 2017, the Company entered into an agreement with an unaffiliated third party to sell $255 million of residential mortgage loans at a $4 million loss.  The loans are measured at fair value on a nonrecurring basis. The fair value of the loans, which reflects the selling price negotiated with the third party, was $251 million as of September 30, 2017, and is classified as Level 3 as the valuation includes unobservable inputs.

During the reporting periods, there were no other 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:

	September 30, 2017
	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
	(in millions)
Financial Assets
Mortgage loans, net	$	2,629	$	—	$	—	$	2,648	$	2,648
Policy loans	841		—		—		797		797
Other investments	401		—		352		51		403
Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	10,415	$	—	$	—	$	11,052	$	11,052
Short-term borrowings	201		—		201		—		201
Other liabilities	145		—		—		140		140
Separate account liabilities measured at NAV	356								356		(1)

	December 31, 2016
	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
	(in millions)
Financial Assets
Mortgage loans, net	$	2,874	$	—	$	—	$	2,865	$	2,865
Policy loans	830		—		—		807		807
Other investments	402		—		364		43		407
Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	10,906	$	—	$	—	$	11,417	$	11,417
Short-term borrowings	200		—		200		—		200
Other liabilities	177		—		—		169		169
Separate account liabilities measured at NAV	341								341		(1)

⁽¹⁾  Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy.

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 as of December 31, 2016 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 as of December 31, 2016, 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 and other real estate 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 is used as a practical expedient for fair value and represents the exit price for the separate account liabilities. Separate account liabilities are excluded from classification in the fair value hierarchy.

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Offsetting Assets and Liabilities

9 Months Ended

Sep. 30, 2017

Offsetting [Abstract]

Offsetting Assets and Liabilities [Text Block]

Offsetting Assets and Liabilities

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

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

	September 30, 2017
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets									Net Amount
							Financial Instruments (1)			Cash Collateral			Securities Collateral
	(in millions)
Derivatives:
OTC	$	3,079	$	—	$	3,079	$	(2,327	)	$	(636	)	$	(109	)	$	7
OTC cleared (2)	13		—		13		(12		)	—			—			1
Exchange-traded	18		—		18		(2		)	—			—			16
Total derivatives	$	3,110	$	—	$	3,110	$	(2,341	)	$	(636	)	$	(109	)	$	24

	December 31, 2016
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets									Net Amount
							Financial Instruments (1)			Cash Collateral			Securities Collateral
	(in millions)
Derivatives:
OTC	$	2,822	$	—	$	2,822	$	(2,161	)	$	(374	)	$	(235	)	$	52
OTC cleared	510		—		510		(507		)	(3		)	—			—
Exchange-traded	14		—		14		(2		)	—			—			12
Total derivatives	$	3,346	$	—	$	3,346	$	(2,670	)	$	(377	)	$	(235	)	$	64

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

⁽²⁾  The decrease in OTC cleared derivatives from December 31, 2016 is a result of certain central clearing parties amending their rules resulting in variation margin payments being settlement payments, as opposed to collateral.

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

	September 30, 2017
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Liabilities Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets									Net Amount
							Financial Instruments (1)			Cash Collateral			Securities Collateral
	(in millions)
Derivatives:
OTC	$	2,908	$	—	$	2,908	$	(2,327	)	$	(1	)	$	(578	)	$	2
OTC cleared (2)	12		—		12		(12		)	—			—			—
Exchange-traded	2		—		2		(2		)	—			—			—
Total derivatives	2,922		—		2,922		(2,341		)	(1		)	(578		)	2
Repurchase agreements	50		—		50		—			—			(48		)	2
Total	$	2,972	$	—	$	2,972	$	(2,341	)	$	(1	)	$	(626	)	$	4

	December 31, 2016
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Liabilities Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets									Net Amount
							Financial Instruments (1)			Cash Collateral			Securities Collateral
	(in millions)
Derivatives:
OTC	$	2,481	$	—	$	2,481	$	(2,161	)	$	—		$	(312	)	$	8
OTC cleared	515		—		515		(507		)	(8		)	—			—
Exchange-traded	5		—		5		(2		)	—			—			3
Total derivatives	3,001		—		3,001		(2,670		)	(8		)	(312		)	11
Repurchase agreements	50		—		50		—			—			(50		)	—
Total	$	3,051	$	—	$	3,051	$	(2,670	)	$	(8	)	$	(362	)	$	11

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

⁽²⁾ The decrease in OTC cleared derivatives from December 31, 2016 is a result of certain central clearing parties amending their rules resulting in variation margin payments being settlement payments, as opposed to collateral.

In the tables above, the amounts of assets or liabilities presented 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.

Freestanding derivative instruments are reflected in other assets and other liabilities. Cash collateral pledged by the Company is reflected in other assets and cash collateral accepted by the Company is reflected in other liabilities. Repurchase agreements are reflected in short-term borrowings. 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.

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Derivatives and Hedging Activities

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities [Text Block]

Derivatives and Hedging Activities

Derivative instruments enable the Company to manage its exposure to various market risks. The value of such instruments is derived from an underlying variable or multiple variables, including equity and interest rate indices or prices. The Company primarily enters into derivative agreements for risk management purposes related to the Company’s products and operations.

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

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

	September 30, 2017						December 31, 2016
	Notional		Gross Fair Value				Notional		Gross Fair Value
			Assets (1)		Liabilities (2)				Assets (1)		Liabilities (2)
	(in millions)
Derivatives not designated as hedging instruments
Interest rate contracts	$	65,248	$	1,171	$	416	$	71,019	$	1,735	$	965
Equity contracts	58,359		1,893		2,479		60,419		1,530		1,989
Credit contracts	718		4		—		1,039		1		—
Foreign exchange contracts	4,314		42		27		4,494		80		47
Other contracts	450		—		—		240		—		—
Total non-designated hedges	129,089		3,110		2,922		137,211		3,346		3,001
Embedded derivatives
GMWB and GMAB (3)	N/A		—		45		N/A		—		614
IUL	N/A		—		577		N/A		—		464
EIA	N/A		—		4		N/A		—		5
Total embedded derivatives	N/A		—		626		N/A		—		1,083
Total derivatives	$	129,089	$	3,110	$	3,548	$	137,211	$	3,346	$	4,084

N/A  Not applicable.

⁽¹⁾ The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets.

⁽²⁾ The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and EIA embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets.

⁽³⁾ The fair value of the GMWB and GMAB embedded derivatives as of September 30, 2017 included $494 million of individual contracts in a liability position and $449 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2016 included $880 millionof individual contracts in a liability position and $266 million of individual contracts in an asset position.

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

As of September 30, 2017 and December 31, 2016, investment securities with a fair value of $122 million and $235 million, respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $122 million and $118 million, respectively, may be sold, pledged or rehypothecated by the Company. As of September 30, 2017 and December 31, 2016, the Company had sold, pledged, or rehypothecated $12 million and $19 million, respectively, of these securities. In addition, as of September 30, 2017 and December 31, 2016, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets.

The following tables present a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income:

	Interest Credited to Fixed Accounts			Benefits, Claims, Losses and Settlement Expenses
	(in millions)
Three Months Ended September 30, 2017
Interest rate contracts	$	—		$	15
Equity contracts	18			(241		)
Credit contracts	—			(3		)
Foreign exchange contracts	—			1
Other contracts	—			(2		)
GMWB and GMAB embedded derivatives	—			227
IUL embedded derivatives	(24		)	—
Total gain (loss)	$	(6	)	$	(3	)

Nine Months Ended September 30, 2017
Interest rate contracts	$	—		$	63
Equity contracts	50			(859		)
Credit contracts	—			(22		)
Foreign exchange contracts	—			(27		)
Other contracts	—			(2		)
GMWB and GMAB embedded derivatives	—			569
IUL embedded derivatives	(43		)	—
Total gain (loss)	$	7		$	(278	)

	Interest Credited to Fixed Accounts			Benefits, Claims, Losses and Settlement Expenses
	(in millions)
Three Months Ended September 30, 2016
Interest rate contracts	$	—		$	(13	)
Equity contracts	12			(364		)
Credit contracts	—			(3		)
Foreign exchange contracts	—			(12		)
Other contracts	—			(2		)
GMWB and GMAB embedded derivatives	—			209
IUL embedded derivatives	(5		)	—
Total gain (loss)	$	7		$	(185	)

Nine Months Ended September 30, 2016
Interest rate contracts	$	—	$	1,191
Equity contracts	10		(525		)
Credit contracts	—		(34		)
Foreign exchange contracts	—		(66		)
Other contracts	—		(2		)
GMWB and GMAB embedded derivatives	—		(905		)
IUL embedded derivatives	12		—
Total gain (loss)	$	22	$	(341	)

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

Certain annuity contracts contain GMWB or GMAB provisions, which guarantee the right to make limited partial withdrawals each contract year regardless of the volatility inherent in the underlying investments or guarantee a minimum accumulation value of consideration received at the beginning of the contract period, after a specified holding period, respectively. The GMAB and non-life contingent GMWB provisions are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. The Company economically hedges the exposure related to GMAB and non-life contingent GMWB provisions primarily using futures, options, interest rate swaptions, interest rate swaps, total return swaps and variance swaps.

The deferred premium associated with certain of the above options and swaptions is paid or received semi-annually over the life of the contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of September 30, 2017:

		Premiums Payable		Premiums Receivable
		(in millions)
2017	(1)	$	95	$	25
2018		213		129
2019		275		170
2020		197		98
2021		168		107
2022-2026		669		182
Total		$	1,617	$	711

⁽¹⁾ 2017 amounts represent the amounts payable and receivable for the period from October 1, 2017 to December 31, 2017.

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

The Company has a macro hedge program to provide protection against the statutory tail scenario risk arising from variable annuity reserves on its statutory surplus and to cover some of the residual risks not covered by other hedging activities. As a means of economically hedging these risks, the Company uses futures, options, swaps and swaptions. Certain of the macro hedge derivatives contain settlement provisions linked to both equity returns and interest rates. The Company’s macro hedge derivatives that contain settlement provisions linked to both equity returns and interest rates are shown in Other contracts in the tables above.

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. The equity component of the EIA and IUL product obligations are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. As a means of economically hedging its obligations under the provisions of these products, the Company enters into index options and futures contracts.

Cash Flow Hedges

During the nine months endedSeptember 30, 2017, the Company held no derivatives that were designated as cash flow hedges.

As of September 30, 2017, the Company expects to reclassify $3 million of deferred losses 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 nine months endedSeptember 30, 2017 and 2016, no hedge relationships were discontinued due to forecasted transactions no longer being expected to occur according to the original hedge strategy. For the nine months endedSeptember 30, 2017 and 2016, amounts recognized in earnings on derivative transactions that were ineffective were not material. See Note 13 for a summary of net unrealized gains included in AOCI related to previously designated cash flow hedges.

Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is one year 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 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. As of September 30, 2017 and December 31, 2016, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $368 million and $206 million, respectively. The aggregate fair value of assets posted as collateral for such instruments as of September 30, 2017 and December 31, 2016 was $366 million and $198 million, respectively. If the credit contingent provisions of derivative contracts in a net liability position as of September 30, 2017 and December 31, 2016 were triggered, the aggregate fair value of additional assets that would be required to be posted as collateral or needed to settle the instruments immediately would have been $2 million and $8 million, respectively.

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Shareholder's Equity

9 Months Ended

Sep. 30, 2017

Stockholders' Equity Note [Abstract]

Shareholder's Equity [Text Block]

Shareholder’s Equity

The following tables provide the amounts related to each component of OCI:

	Three Months Ended September 30,
	2017									2016
	Pretax			Income Tax Benefit (Expense)			Net of Tax			Pretax			Income Tax Benefit (Expense)			Net of Tax
	(in millions)
Net unrealized securities gains (losses):
Net unrealized securities gains (losses) arising during the period (1)	$	52		$	(18	)	$	34		$	75		$	(25	)	$	50
Reclassification of net securities (gains) losses included in net income (2)	(3		)	1			(2		)	(1		)	—			(1		)
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables	(61		)	22			(39		)	(114		)	39			(75		)
Net unrealized securities gains (losses)	(12		)	5			(7		)	(40		)	14			(26		)
Net unrealized derivatives gains (losses):
Reclassification of net derivative (gains) losses included in net income (3)	1			—			1			1			—			1
Net unrealized derivatives gains (losses)	1			—			1			1			—			1
Other comprehensive income (loss)	$	(11	)	$	5		$	(6	)	$	(39	)	$	14		$	(25	)

	Nine Months Ended September 30,
	2017									2016
	Pretax			Income Tax Benefit (Expense)			Net of Tax			Pretax			Income Tax Benefit (Expense)			Net of Tax
	(in millions)
Net unrealized securities gains (losses):
Net unrealized securities gains (losses) arising during the period (1)	$	245		$	(85	)	$	160		$	1,067		$	(375	)	$	692
Reclassification of net securities (gains) losses included in net income (2)	(34		)	12			(22		)	(7		)	2			(5		)
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables	(168		)	59			(109		)	(533		)	186			(347		)
Net unrealized securities gains (losses)	43			(14		)	29			527			(187		)	340
Net unrealized derivatives gains (losses):
Reclassification of net derivative (gains) losses included in net income (3)	4			(1		)	3			4			(1		)	3
Net unrealized derivatives gains (losses)	4			(1		)	3			4			(1		)	3
Other	(1		)	—			(1		)	—			—			—
Other comprehensive income (loss)	$	46		$	(15	)	$	31		$	531		$	(188	)	$	343

⁽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 during the period.

⁽²⁾ Reclassification amounts are recorded in net realized investment gains (losses).

⁽³⁾ Reclassification amounts are recorded in net investment income.

Other comprehensive income (loss) related to net unrealized securities gains (losses) includes three components: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit other-than-temporary impairment losses to credit losses; and (iii) other adjustments primarily consisting of changes in insurance and annuity asset and liability balances, such as DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates.

The following tables present the changes in the balances of each component of AOCI, net of tax:

	Net Unrealized Securities Gains				Net Unrealized Derivatives Gains			Other			Total
	(in millions)
Balance, July 1, 2017	$	497			$	(2	)	$	(1	)	$	494
OCI before reclassifications	(5		)		—			—			(5		)
Amounts reclassified from AOCI	(2		)		1			—			(1		)
Total OCI	(7		)		1			—			(6		)
Balance, September 30, 2017	$	490		(1)	$	(1	)	$	(1	)	$	488
Balance, January 1, 2017	$	461			$	(4	)	$	—		$	457
OCI before reclassifications	51				—			(1		)	50
Amounts reclassified from AOCI	(22		)		3			—			(19		)
Total OCI	29				3			(1		)	31
Balance, September 30, 2017	$	490		(1)	$	(1	)	$	(1	)	$	488

	Net Unrealized Securities Gains				Net Unrealized Derivatives Gains			Total
	(in millions)
Balance, July 1, 2016	$	769			$	(6	)	$	763
OCI before reclassifications	(25		)		—			(25		)
Amounts reclassified from AOCI	(1		)		1			—
Total OCI	(26		)		1			(25		)
Balance, September 30, 2016	$	743		(1)	$	(5	)	$	738
Balance, January 1, 2016	$	403			$	(8	)	$	395
OCI before reclassifications	345				—			345
Amounts reclassified from AOCI	(5		)		3			(2		)
Total OCI	340				3			343
Balance, September 30, 2016	$	743		(1)	$	(5	)	$	738

⁽¹⁾ Includes $2 million and $1 million of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities as of September 30, 2017 and September 30, 2016, respectively.

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Income Taxes

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company’s effective tax rate was 11.8% and 1,900.0% for the three months ended September 30,2017 and 2016, respectively. The Company’s effective tax rate was 9.4% and 5.8% for the nine months endedSeptember 30,2017 and 2016, 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 decrease in the effective tax rate for the three months ended September 30,2017 compared to the prior year period is primarily due to pretax income in the third quarter of 2017 compared to a pretax loss in the third quarter of 2016. The increase in the effective tax rate for the nine months endedSeptember 30, 2017 compared to the prior year period is primarily due to an increase in pretax income.

Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $9 million, net of federal benefit, which will expire beginning December 31, 2017.

TheCompanyisrequiredtoestablishavaluationallowancefor any portionofthedeferred tax assets that management believes will not be realized. Significant judgment is required in determining if a valuationallowanceshouldbeestablished,andthe amount of such allowance if required. Factors used in making this determination includeestimatesrelatingtotheperformanceofthebusiness. Considerationisgivento,amongotherthingsinmakingthisdetermination,(i)futuretaxableincomeexclusiveofreversingtemporarydifferencesandcarryforwards,(ii)futurereversalsofexisting 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 oftaxplanning strategies will not allow the Company to realize certain state deferred tax assets and state net operating losses. Thevaluation allowance for state deferred tax assets and state net operating losses was $10 million and $8 million as of September 30, 2017 and December 31, 2016, respectively.

As of September 30, 2017 and December 31, 2016, the Company had $62 million and $59 million, respectively, of gross unrecognized tax benefits. If recognized, approximately $6 million, net of federal tax benefits, of unrecognized tax benefits as of both September 30, 2017 and December 31, 2016, would affect the effective tax rate.

The Company does not expect the total amount of unrecognized tax benefits to significantly change in the next 12 months.

The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized a net increase (decrease) of $(1) million and $1 million in interest and penalties for the three months and nine months endedSeptember 30, 2017, respectively. The Company recognized a net increase (decrease) of nil and $(39) million for the three months and nine months endedSeptember 30, 2016, respectively. As of September 30, 2017 and December 31, 2016, the Company had a payable of $3 million and $2 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. In the third quarter, the Company received final cash settlements for resolution of the 2006 and 2011 audits. The Internal Revenue Service (“IRS”) has completed its examination of the 2008 through 2010 tax returns, and these years are effectively settled; however, the statutes of limitation, remain open for certain carryover adjustments. The IRS is currently auditing the Company’s U.S. income tax returns for 2012 through 2015. The Company’s or certain of its subsidiaries’ state income tax returns are currently under examination by various jurisdictions for years ranging from 2005 through 2015.

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Contingencies

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Contingencies

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. As of September 30, 2017 and December 31, 2016, the estimated liability was $15 million and $16 million, respectively, and the related premium tax asset was $12 million and $14 million, respectively. The expected period over which guaranty fund assessments will be made and the related tax credits recovered is not known.

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. 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.

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Investments (Tables)

9 Months Ended

Sep. 30, 2017

Investments, Debt and Equity Securities [Abstract]

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

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

Description of Securities	September 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI (1)
	(in millions)
Fixed maturities:
Corporate debt securities	$	12,415	$	1,137	$	(21	)	$	13,531	$	—
Residential mortgage backed securities	3,065		66		(18		)	3,113		—
Commercial mortgage backed securities	3,148		61		(25		)	3,184		—
State and municipal obligations	1,109		196		(9		)	1,296		—
Asset backed securities	710		30		(2		)	738		—
Foreign government bonds and obligations	284		21		(5		)	300		—
U.S. government and agencies obligations	1		—		—			1		—
Total fixed maturities	20,732		1,511		(80		)	22,163		—
Common stocks	4		4		—			8		3
Total	$	20,736	$	1,515	$	(80	)	$	22,171	$	3

Description of Securities	December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI (1)
	(in millions)
Fixed maturities:
Corporate debt securities	$	13,105	$	1,060	$	(53	)	$	14,112	$	—
Residential mortgage backed securities	3,386		72		(43		)	3,415		(4		)
Commercial mortgage backed securities	2,837		58		(38		)	2,857		—
State and municipal obligations	1,092		161		(24		)	1,229		—
Asset backed securities	790		26		(11		)	805		—
Foreign government bonds and obligations	251		17		(7		)	261		—
U.S. government and agencies obligations	3		—		—			3		—
Total fixed maturities	21,464		1,394		(176		)	22,682		(4		)
Common stocks	4		6		—			10		3
Total	$	21,468	$	1,400	$	(176	)	$	22,692	$	(1	)

 ⁽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.

Fixed Maturity Securities by Rating Disclosure [Table Text Block]

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

Ratings	September 30, 2017						December 31, 2016
	Amortized Cost		Fair Value		Percent of Total Fair Value		Amortized Cost		Fair Value		Percent of Total Fair Value
	(in millions, except percentages)
AAA	$	5,908	$	5,988	27	%	$	5,671	$	5,728	25	%
AA	1,079		1,274		6		1,013		1,177		5
A	3,579		4,019		18		3,767		4,167		19
BBB	8,985		9,666		44		9,584		10,190		45
Below investment grade	1,181		1,216		5		1,429		1,420		6
Total fixed maturities	$	20,732	$	22,163	100	%	$	21,464	$	22,682	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:

Description of Securities	September 30, 2017
	Less than 12 months						12 months or more						Total
	Number  of Securities	Fair Value		Unrealized Losses			Number  of Securities	Fair Value		Unrealized Losses			Number  of Securities	Fair Value		Unrealized Losses
	(in millions, except number of securities)
Corporate debt securities	53	$	520	$	(6	)	21	$	178	$	(15	)	74	$	698	$	(21	)
Residential mortgage backed securities	43	833		(11		)	26	249		(7		)	69	1,082		(18		)
Commercial mortgage backed securities	67	1,172		(19		)	14	180		(6		)	81	1,352		(25		)
State and municipal obligations	19	55		—			5	123		(9		)	24	178		(9		)
Asset backed securities	11	113		(1		)	9	63		(1		)	20	176		(2		)
Foreign government bonds and obligations	8	19		—			14	21		(5		)	22	40		(5		)
Total	201	$	2,712	$	(37	)	89	$	814	$	(43	)	290	$	3,526	$	(80	)

Description of Securities	December 31, 2016
	Less than 12 months						12 months or more						Total
	Number of Securities	Fair Value		Unrealized Losses			Number  of Securities	Fair Value		Unrealized Losses			Number  of Securities	Fair Value		Unrealized Losses
	(in millions, except number of securities)
Corporate debt securities	114	$	1,502	$	(26	)	33	$	319	$	(27	)	147	$	1,821	$	(53	)
Residential mortgage backed securities	56	1,282		(25		)	56	324		(18		)	112	1,606		(43		)
Commercial mortgage backed securities	80	1,378		(37		)	1	11		(1		)	81	1,389		(38		)
State and municipal obligations	18	66		(3		)	2	105		(21		)	20	171		(24		)
Asset backed securities	23	231		(6		)	12	114		(5		)	35	345		(11		)
Foreign government bonds and obligations	7	30		(1		)	15	23		(6		)	22	53		(7		)
Total	298	$	4,489	$	(98	)	119	$	896	$	(78	)	417	$	5,385	$	(176	)

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) (“OCI”):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017			2016
	(in millions)
Beginning balance	$	—	$	33	$	21		$	33
Reductions for securities sold during the period (realized)	—		—		(21		)	—
Ending balance	$	—	$	33	$	—		$	33

Net Realized Gains and Losses on Available-for-Sale Securities Disclosure [Table Text Block]

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	(in millions)
Gross realized investment gains	$	5		$	5		$	38		$	18
Gross realized investment losses	(2		)	(3		)	(4		)	(11		)
Total	$	3		$	2		$	34		$	7

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

Available-for-Sale securities by contractual maturity as of September 30, 2017 were as follows:

	Amortized Cost		Fair Value
	(in millions)
Due within one year	$	1,560	$	1,588
Due after one year through five years	5,213		5,466
Due after five years through 10 years	3,314		3,460
Due after 10 years	3,722		4,614
	13,809		15,128
Residential mortgage backed securities	3,065		3,113
Commercial mortgage backed securities	3,148		3,184
Asset backed securities	710		738
Common stocks	4		8
Total	$	20,736	$	22,171

Schedule of Net Investment Income [Table Text Block]

The following is a summary of net investment income:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	(in millions)
Fixed maturities	$	237		$	249		$	717		$	751
Mortgage loans	34			38			103			115
Other investments	(4		)	(4		)	(4		)	4
	267			283			816			870
Less: investment expenses	6			7			19			20
Total	$	261		$	276		$	797		$	850

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Financing Receivables (Tables)

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Rollforward of the Allowance for Loan Losses [Table Text Block]

The following table presents a rollforward of the allowance for loan losses for the nine months ended and the ending balance of the allowance for loan losses by impairment method:

	September 30,
	2017		2016
	(in millions)
Beginning balance	$	25	$	25
Charge-offs	—		(1		)
Provisions	—		1
Ending balance	$	25	$	25
Individually evaluated for impairment	$	3	$	2
Collectively evaluated for impairment	22		23

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

The recorded investment in financing receivables by impairment method was as follows:

	September 30, 2017		December 31, 2016
	(in millions)
Individually evaluated for impairment	$	18	$	10
Collectively evaluated for impairment	3,271		3,275
Total	$	3,289	$	3,285

Schedule of Commercial Mortgage Loans by Geographic Region [Table Text Block]

Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows:

	Loans				Percentage
	September 30, 2017		December 31, 2016		September 30, 2017		December 31, 2016
	(in millions)
South Atlantic	$	738	$	753	28	%	29	%
Pacific	754		722		28		28
Mountain	242		234		9		9
West North Central	205		212		8		8
Middle Atlantic	186		191		7		7
East North Central	231		195		9		8
West South Central	128		122		5		5
New England	79		84		3		3
East South Central	85		80		3		3
	2,648		2,593		100	%	100	%
Less: allowance for loan losses	19		19
Total	$	2,629	$	2,574

Schedule of Commercial Mortgage Loans by Property Type [Table Text Block]

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

	Loans				Percentage
	September 30, 2017		December 31, 2016		September 30, 2017		December 31, 2016
	(in millions)
Retail	$	896	$	916	34	%	35	%
Office	485		473		18		18
Apartments	540		483		20		19
Industrial	442		430		17		17
Mixed use	42		42		2		2
Hotel	40		41		1		1
Other	203		208		8		8
	2,648		2,593		100	%	100	%
Less: allowance for loan losses	19		19
Total	$	2,629	$	2,574

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Deferred Acquisition Costs and Deferred Sales Inducement Costs (Tables)

9 Months Ended

Sep. 30, 2017

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:

	2017			2016
	(in millions)
Balance at January 1	$	2,611		$	2,693		(1)
Capitalization of acquisition costs	173			212			(2)
Amortization, excluding the impact of valuation assumptions review	(154		)	(218		)
Amortization, impact of valuation assumptions review	12			(81		)
Impact of change in net unrealized securities (gains) losses	(18		)	(105		)
Balance at September 30	$	2,624		$	2,501		(1)

⁽¹⁾  DAC balances were restated for the correction of commission expense accrual for certain insurance and annuity products in the fourth quarter of 2016. See Note 1 in the 2016 10-K.

⁽²⁾  Includes a $27 million benefit related to the write-off of the deferred reinsurance liability in connection with the loss recognition on LTC business.

Schedule of balances of and changes in DSIC

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

	2017			2016
	(in millions)
Balance at January 1	$	301		$	334
Capitalization of sales inducement costs	3			4
Amortization, excluding the impact of valuation assumptions review	(27		)	(32		)
Amortization, impact of valuation assumptions review	(1		)	4
Impact of change in net unrealized securities (gains) losses	1			(14		)
Balance at September 30	$	277		$	296

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Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Tables)

9 Months Ended

Sep. 30, 2017

Policyholder Account Balances, Future Policy Benefits and Claims & Separate Account Liabilities

Policyholder Account Balances, Future Policy Benefits and Claims Disclosure

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

	September 30, 2017				December 31, 2016
	(in millions)
Policyholder account balances
Fixed annuities (1)	$	10,100			$	10,588
Variable annuity fixed sub-accounts	5,187				5,211
Variable universal life (“VUL”)/universal life (“UL”) insurance	3,028				3,007
Indexed universal life (“IUL”) insurance	1,290				1,054
Other life insurance	731				758
Total policyholder account balances	20,336				20,618
Future policy benefits
Variable annuity guaranteed minimum withdrawal benefits (“GMWB”)	539				1,017
Variable annuity guaranteed minimum accumulation benefits (“GMAB”)	(73		)	(2)	(24		)	(2)
Other annuity liabilities	85				66
Fixed annuity life contingent liabilities	1,482				1,497
Life, disability income and long term care insurance	6,027				5,556
VUL/UL and other life insurance additional liabilities	674				588
Total future policy benefits	8,734				8,700
Policy claims and other policyholders’ funds	172				196
Total policyholder account balances, future policy benefits and claims	$	29,242			$	29,514

⁽¹⁾  Includes fixed deferred annuities, non-life contingent fixed payout annuities and equity indexed annuity (“EIA”) host contracts.

⁽²⁾  Includes the fair value of GMAB embedded derivatives that was a net asset as of both September 30, 2017 and December 31, 2016 reported as a contra liability.

Schedule of Separate Account Liabilities by Policy Type

Separate account liabilities consisted of the following:

	September 30, 2017		December 31, 2016
	(in millions)
Variable annuity	$	73,467	$	69,606
VUL insurance	7,154		6,659
Other insurance	33		33
Total	$	80,654	$	76,298

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Variable Annuity and Insurance Guarantees (Tables)

9 Months Ended

Sep. 30, 2017

Insurance [Abstract]

Schedule of Variable Annuity Guarantees [Table Text Block]

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

Variable Annuity Guarantees by Benefit Type (1)	September 30, 2017							December 31, 2016
	Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk		Weighted Average Attained Age	Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk			Weighted Average Attained Age
	(in millions, except age)
GMDB:
Return of premium	$	59,806	$	57,840	$	11	66	$	56,143	$	54,145	$	208		65
Five/six-year reset	8,869		6,141		13		66	8,878		6,170		22			66
One-year ratchet	6,502		6,139		12		69	6,426		6,050		110			68
Five-year ratchet	1,562		1,504		1		65	1,542		1,483		7			64
Other	1,057		1,034		58		72	965		942		86			71
Total — GMDB	$	77,796	$	72,658	$	95	66	$	73,954	$	68,790	$	433		65
GGU death benefit	$	1,103	$	1,052	$	126	69	$	1,047	$	996	$	108		68
GMIB	$	236	$	219	$	8	69	$	245	$	227	$	13		68
GMWB:
GMWB	$	2,525	$	2,517	$	2	71	$	2,650	$	2,642	$	2		70
GMWB for life	42,933		42,813		160		67	39,436		39,282		289		(2)	66
Total — GMWB	$	45,458	$	45,330	$	162	67	$	42,086	$	41,924	$	291		66
GMAB	$	3,157	$	3,153	$	—	59	$	3,484	$	3,476	$	21		59

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

⁽²⁾ Amount revised to reflect updated contractholder mortality assumptions at December 31, 2016.

Schedule of UL Secondary Guarantees [Table Text Block]

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

	September 30, 2017			December 31, 2016
	Net Amount at Risk		Weighted Average Attained Age	Net Amount at Risk		Weighted Average Attained Age
	(in millions, except age)
UL secondary guarantees	$	6,443	65	$	6,376	64

Schedule of Changes in Additional Liabilities for Variable Annuity and Insurance Guarantees [Table Text Block]

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

	GMDB & GGU			GMIB			GMWB (1)			GMAB (1)			UL
	(in millions)
Balance at January 1, 2016	$	14		$	8		$	1,057		$	—		$	332
Incurred claims	10			—			1,056			9			99
Paid claims	(7		)	—			—			(1		)	(18		)
Balance at September 30, 2016	$	17		$	8		$	2,113		$	8		$	413
Balance at January 1, 2017	$	16		$	8		$	1,017		$	(24	)	$	434
Incurred claims	3			—			(478		)	(49		)	59
Paid claims	(3		)	(1		)	—			—			(22		)
Balance at September 30, 2017	$	16		$	7		$	539		$	(73	)	$	471

⁽¹⁾  The incurred claims for GMWB and GMAB represent the change in the fair value of the liabilities (contra liabilities) less paid claims.

Schedule of Separate Account Balances By Asset Type [Table Text Block]

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

	September 30, 2017		December 31, 2016
	(in millions)
Mutual funds:
Equity	$	44,365	$	40,622
Bond	23,481		23,142
Other	5,117		5,326
Total mutual funds	$	72,963	$	69,090

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Fair Values of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of balances of assets and liabilities measured at fair value on a recurring basis [Table Text Block]

The following tables present the balances of assets and liabilities measured at fair value on a recurring basis:

	September 30, 2017
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Available-for-Sale securities: Fixed maturities:
Corporate debt securities	$	—	$	12,385	$	1,146	$	13,531
Residential mortgage backed securities	—		3,024		89		3,113
Commercial mortgage backed securities	—		3,149		35		3,184
State and municipal obligations	—		1,296		—		1,296
Asset backed securities	—		738		—		738
Foreign government bonds and obligations	—		300		—		300
U.S. government and agencies obligations	1		—		—		1
Total Available-for-Sale securities: Fixed maturities	1		20,892		1,270		22,163
Common stocks	3		4		1		8
Cash equivalents	—		722		—		722
Other assets:
Interest rate derivative contracts	2		1,169		—		1,171
Equity derivative contracts	48		1,845		—		1,893
Credit derivative contracts	—		4		—		4
Foreign exchange derivative contracts	—		42		—		42
Total other assets	50		3,060		—		3,110
Separate account assets measured at net asset value (“NAV”)							80,654		(1)
Total assets at fair value	$	54	$	24,678	$	1,271	$	106,657

Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives	$	—	$	4	$	—	$	4
IUL embedded derivatives	—		—		577		577
GMWB and GMAB embedded derivatives	—		—		45		45		(2)
Total policyholder account balances, future policy benefits and claims	—		4		622		626		(3)
Other liabilities:
Interest rate derivative contracts	—		416		—		416
Equity derivative contracts	5		2,474		—		2,479
Foreign exchange derivative contracts	—		27		—		27
Total other liabilities	5		2,917		—		2,922
Total liabilities at fair value	$	5	$	2,921	$	622	$	3,548

	December 31, 2016
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Available-for-Sale securities: Fixed maturities:
Corporate debt securities	$	—	$	12,955	$	1,157	$	14,112
Residential mortgage backed securities	—		3,300		115		3,415
Commercial mortgage backed securities	—		2,857		—		2,857
State and municipal obligations	—		1,229		—		1,229
Asset backed securities	—		792		13		805
Foreign government bonds and obligations	—		261		—		261
U.S. government and agencies obligations	3		—		—		3
Total Available-for-Sale securities: Fixed maturities	3		21,394		1,285		22,682
Common stocks	6		4		—		10
Cash equivalents	—		302		—		302
Other assets:
Interest rate derivative contracts	—		1,735		—		1,735
Equity derivative contracts	43		1,487		—		1,530
Credit derivative contracts	—		1		—		1
Foreign exchange derivative contracts	—		80		—		80
Total other assets	43		3,303		—		3,346
Separate account assets measured at NAV							76,298		(1)
Total assets at fair value	$	52	$	25,003	$	1,285	$	102,638

Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives	$	—	$	5	$	—	$	5
IUL embedded derivatives	—		—		464		464
GMWB and GMAB embedded derivatives	—		—		614		614		(4)
Total policyholder account balances, future policy benefits and claims	—		5		1,078		1,083		(5)
Other liabilities:
Interest rate derivative contracts	1		964		—		965
Equity derivative contracts	2		1,987		—		1,989
Foreign exchange derivative contracts	2		45		—		47
Total other liabilities	5		2,996		—		3,001
Total liabilities at fair value	$	5	$	3,001	$	1,078	$	4,084

⁽¹⁾  Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy.

⁽²⁾  The fair value of the GMWB and GMAB embedded derivatives included $494 million of individual contracts in a liability position and $449 million of individual contracts in an asset position as of September 30, 2017.

⁽³⁾  The Company’s adjustment for nonperformance risk resulted in a $(376) million cumulative increase (decrease) to the embedded derivatives as of September 30, 2017.

⁽⁴⁾  The fair value of the GMWB and GMAB embedded derivatives included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position as of December 31, 2016.

⁽⁵⁾  The Company’s adjustment for nonperformance risk resulted in a $(498) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2016.

Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis [Table Text Block]

The following tables provide a summary of changes in Level 3 assets and liabilities 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			Common Stocks		Total
	(in millions)
Balance, July 1, 2017	$	1,190		$	89		$	—	$	11		$	—	$	1,290
Total gains (losses) included in:
Net income	1			—			—		—			—		1			(1)
Other comprehensive income	(1		)	1			—		—			—		—
Purchases	38			—			35		—			—		73
Settlements	(82		)	(1		)	—		—			—		(83		)
Transfers into Level 3	—			—			—		—			1		1
Transfers out of Level 3	—			—			—		(11		)	—		(11		)
Balance, September 30, 2017	$	1,146		$	89		$	35	$	—		$	1	$	1,271
Changes in unrealized gains (losses) relating to assets held at September 30, 2017	$	1		$	—		$	—	$	—		$	—	$	1		(1)

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, July 1, 2017	$	527			$	272			$	799
Total (gains) losses included in:
Net income	35			(2)	(309		)	(3)	(274		)
Issues	26				84				110
Settlements	(11		)		(2		)		(13		)
Balance, September 30, 2017	$	577			$	45			$	622
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2017	$	35		(2)	$	(307	)	(3)	$	(272	)

	Available-for-Sale Securities: Fixed Maturities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities		Asset Backed Securities			Total				Other Derivative Contracts
	(in millions)
Balance, July 1, 2016	$	1,197		$	15		$	—	$	130		$	1,342			$	2
Total gains (losses) included in:
Net income	(1		)	—			—		1			—			(1)	(2		)	(3)
Other comprehensive income	(2		)	—			—		—			(2		)		—
Purchases	20			106			33		—			159				—
Settlements	(21		)	(1		)	—		(1		)	(23		)		—
Transfers out of Level 3	—			—			—		(12		)	(12		)		—
Balance, September 30, 2016	$	1,193		$	120		$	33	$	118		$	1,464			$	—
Changes in unrealized gains (losses) relating to assets held at September 30, 2016	$	(1	)	$	—		$	—	$	1		$	—		(1)	$	(2	)	(3)

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, July 1, 2016	$	408			$	1,965			$	2,373
Total (gains) losses included in:
Net income	12			(2)	(280		)	(3)	(268		)
Issues	25				77				102
Settlements	(7		)		(6		)		(13		)
Balance, September 30, 2016	$	438			$	1,756			$	2,194
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2016	$	12		(2)	$	(267	)	(3)	$	(255	)

	Available-for-Sale Securities: Fixed Maturities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities		Asset Backed Securities			Common Stocks			Total
	(in millions)
Balance, January 1, 2017	$	1,157		$	115		$	—	$	13		$	—		$	1,285
Total gains (losses) included in:
Net income	1			—			—		—			—			1			(1)
Other comprehensive income	1			1			—		—			—			2
Purchases	96			67			35		49			—			247
Settlements	(109		)	(5		)	—		(13		)	—			(127		)
Transfers into Level 3	—			—			—		11			5			16
Transfers out of Level 3	—			(89		)	—		(60		)	(4		)	(153		)
Balance, September 30, 2017	$	1,146		$	89		$	35	$	—		$	1		$	1,271
Changes in unrealized gains (losses) relating to assets held at September 30, 2017	$	1		$	—		$	—	$	—		$	—		$	1		(1)

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, January 1, 2017	$	464			$	614			$	1,078
Total (gains) losses included in:
Net income	75			(2)	(798		)	(3)	(723		)
Issues	70				238				308
Settlements	(32		)		(9		)		(41		)
Balance, September 30, 2017	$	577			$	45			$	622
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2017	$	75		(2)	$	(771	)	(3)	$	(696	)

	Available-for-Sale Securities: Fixed Maturities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Total				Other Derivative Contracts
	(in millions)
Balance, January 1, 2016	$	1,235		$	21		$	3		$	133		$	1,392			$	—
Total gains (losses) included in:
Net income	(1		)	—			—			1			—			(1)	(2		)	(3)
Other comprehensive income	26			—			—			—			26				—
Purchases	34			106			42			—			182				2
Settlements	(101		)	(7		)	(3		)	(1		)	(112		)		—
Transfers into Level 3	—			—			—			12			12				—
Transfers out of Level 3	—			—			(9		)	(27		)	(36		)		—
Balance, September 30, 2016	$	1,193		$	120		$	33		$	118		$	1,464			$	—
Changes in unrealized gains (losses) relating to assets held at September 30, 2016	$	(1	)	$	—		$	—		$	1		$	—		(1)	$	(2	)	(3)

	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, January 1, 2016	$	364			$	851			$	1,215
Total (gains) losses included in:
Net income	8			(2)	708			(3)	716
Issues	86				215				301
Settlements	(20		)		(18		)		(38		)
Balance, September 30, 2016	$	438			$	1,756			$	2,194
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2016	$	8		(2)	$	830		(3)	$	838

⁽¹⁾  Included in net investment income in the Consolidated Statements of Income.

⁽²⁾  Included in interest credited to fixed accounts in the Consolidated Statements of Income.

⁽³⁾  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:

	September 30, 2017
	Fair Value		Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	1,144	Discounted cash flow	Yield/spread to U.S. Treasuries	0.8	%	-	2.3%	1.2	%
IUL embedded derivatives	$	577	Discounted cash flow	Nonperformance risk (1)	67 bps
GMWB and GMAB embedded derivatives	$	45	Discounted cash flow	Utilization of guaranteed withdrawals (2)	0.0	%	-	42.0%
				Surrender rate	0.1	%	-	74.7%
				Market volatility (3)	4.3	%	-	15.9%
				Nonperformance risk (1)	67 bps

	December 31, 2016
	Fair Value		Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	1,154	Discounted cash flow	Yield/spread to U.S. Treasuries	0.9	%	-	2.5%	1.3	%
IUL embedded derivatives	$	464	Discounted cash flow	Nonperformance risk (1)	82 bps
GMWB and GMAB embedded derivatives	$	614	Discounted cash flow	Utilization of guaranteed withdrawals (2)	0.0	%	-	75.6%
				Surrender rate	0.1	%	-	66.4%
				Market volatility (3)	5.3	%	-	21.2%
				Nonperformance risk (1)	82 bps

⁽¹⁾  The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives.

⁽²⁾  The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year.

⁽³⁾  Market volatility is implied volatility of fund of funds and managed volatility funds.

Schedule of carrying value and the estimated fair value of financial instruments that are not reported at fair value [Table Text Block]

The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value:

	September 30, 2017
	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
	(in millions)
Financial Assets
Mortgage loans, net	$	2,629	$	—	$	—	$	2,648	$	2,648
Policy loans	841		—		—		797		797
Other investments	401		—		352		51		403
Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	10,415	$	—	$	—	$	11,052	$	11,052
Short-term borrowings	201		—		201		—		201
Other liabilities	145		—		—		140		140
Separate account liabilities measured at NAV	356								356		(1)

	December 31, 2016
	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
	(in millions)
Financial Assets
Mortgage loans, net	$	2,874	$	—	$	—	$	2,865	$	2,865
Policy loans	830		—		—		807		807
Other investments	402		—		364		43		407
Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	10,906	$	—	$	—	$	11,417	$	11,417
Short-term borrowings	200		—		200		—		200
Other liabilities	177		—		—		169		169
Separate account liabilities measured at NAV	341								341		(1)

⁽¹⁾  Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy.

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Offsetting Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2017

Offsetting [Abstract]

Schedule of Gross and Net Information About the Company's Assets Subject to Master Netting Arrangements [Table Text Block]

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

	September 30, 2017
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets									Net Amount
							Financial Instruments (1)			Cash Collateral			Securities Collateral
	(in millions)
Derivatives:
OTC	$	3,079	$	—	$	3,079	$	(2,327	)	$	(636	)	$	(109	)	$	7
OTC cleared (2)	13		—		13		(12		)	—			—			1
Exchange-traded	18		—		18		(2		)	—			—			16
Total derivatives	$	3,110	$	—	$	3,110	$	(2,341	)	$	(636	)	$	(109	)	$	24

	December 31, 2016
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets									Net Amount
							Financial Instruments (1)			Cash Collateral			Securities Collateral
	(in millions)
Derivatives:
OTC	$	2,822	$	—	$	2,822	$	(2,161	)	$	(374	)	$	(235	)	$	52
OTC cleared	510		—		510		(507		)	(3		)	—			—
Exchange-traded	14		—		14		(2		)	—			—			12
Total derivatives	$	3,346	$	—	$	3,346	$	(2,670	)	$	(377	)	$	(235	)	$	64

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

⁽²⁾  The decrease in OTC cleared derivatives from December 31, 2016 is a result of certain central clearing parties amending their rules resulting in variation margin payments being settlement payments, as opposed to collateral.

Schedule of Gross and Net Information About the Company's Liabilities Subject to Master Netting Arrangements [Table Text Block]

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

	September 30, 2017
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Liabilities Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets									Net Amount
							Financial Instruments (1)			Cash Collateral			Securities Collateral
	(in millions)
Derivatives:
OTC	$	2,908	$	—	$	2,908	$	(2,327	)	$	(1	)	$	(578	)	$	2
OTC cleared (2)	12		—		12		(12		)	—			—			—
Exchange-traded	2		—		2		(2		)	—			—			—
Total derivatives	2,922		—		2,922		(2,341		)	(1		)	(578		)	2
Repurchase agreements	50		—		50		—			—			(48		)	2
Total	$	2,972	$	—	$	2,972	$	(2,341	)	$	(1	)	$	(626	)	$	4

	December 31, 2016
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Liabilities Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets									Net Amount
							Financial Instruments (1)			Cash Collateral			Securities Collateral
	(in millions)
Derivatives:
OTC	$	2,481	$	—	$	2,481	$	(2,161	)	$	—		$	(312	)	$	8
OTC cleared	515		—		515		(507		)	(8		)	—			—
Exchange-traded	5		—		5		(2		)	—			—			3
Total derivatives	3,001		—		3,001		(2,670		)	(8		)	(312		)	11
Repurchase agreements	50		—		50		—			—			(50		)	—
Total	$	3,051	$	—	$	3,051	$	(2,670	)	$	(8	)	$	(362	)	$	11

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

⁽²⁾ The decrease in OTC cleared derivatives from December 31, 2016 is a result of certain central clearing parties amending their rules resulting in variation margin payments being settlement payments, as opposed to collateral.

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Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives:

	September 30, 2017						December 31, 2016
	Notional		Gross Fair Value				Notional		Gross Fair Value
			Assets (1)		Liabilities (2)				Assets (1)		Liabilities (2)
	(in millions)
Derivatives not designated as hedging instruments
Interest rate contracts	$	65,248	$	1,171	$	416	$	71,019	$	1,735	$	965
Equity contracts	58,359		1,893		2,479		60,419		1,530		1,989
Credit contracts	718		4		—		1,039		1		—
Foreign exchange contracts	4,314		42		27		4,494		80		47
Other contracts	450		—		—		240		—		—
Total non-designated hedges	129,089		3,110		2,922		137,211		3,346		3,001
Embedded derivatives
GMWB and GMAB (3)	N/A		—		45		N/A		—		614
IUL	N/A		—		577		N/A		—		464
EIA	N/A		—		4		N/A		—		5
Total embedded derivatives	N/A		—		626		N/A		—		1,083
Total derivatives	$	129,089	$	3,110	$	3,548	$	137,211	$	3,346	$	4,084

N/A  Not applicable.

⁽¹⁾ The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets.

⁽²⁾ The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and EIA embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets.

⁽³⁾ The fair value of the GMWB and GMAB embedded derivatives as of September 30, 2017 included $494 million of individual contracts in a liability position and $449 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2016 included $880 millionof individual contracts in a liability position and $266 million of individual contracts in an asset position.

Schedule of Gain (Loss) on Derivative Instruments, Including Embedded Derivatives [Table Text Block]

The following tables present a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income:

	Interest Credited to Fixed Accounts			Benefits, Claims, Losses and Settlement Expenses
	(in millions)
Three Months Ended September 30, 2017
Interest rate contracts	$	—		$	15
Equity contracts	18			(241		)
Credit contracts	—			(3		)
Foreign exchange contracts	—			1
Other contracts	—			(2		)
GMWB and GMAB embedded derivatives	—			227
IUL embedded derivatives	(24		)	—
Total gain (loss)	$	(6	)	$	(3	)

Nine Months Ended September 30, 2017
Interest rate contracts	$	—		$	63
Equity contracts	50			(859		)
Credit contracts	—			(22		)
Foreign exchange contracts	—			(27		)
Other contracts	—			(2		)
GMWB and GMAB embedded derivatives	—			569
IUL embedded derivatives	(43		)	—
Total gain (loss)	$	7		$	(278	)

	Interest Credited to Fixed Accounts			Benefits, Claims, Losses and Settlement Expenses
	(in millions)
Three Months Ended September 30, 2016
Interest rate contracts	$	—		$	(13	)
Equity contracts	12			(364		)
Credit contracts	—			(3		)
Foreign exchange contracts	—			(12		)
Other contracts	—			(2		)
GMWB and GMAB embedded derivatives	—			209
IUL embedded derivatives	(5		)	—
Total gain (loss)	$	7		$	(185	)

Nine Months Ended September 30, 2016
Interest rate contracts	$	—	$	1,191
Equity contracts	10		(525		)
Credit contracts	—		(34		)
Foreign exchange contracts	—		(66		)
Other contracts	—		(2		)
GMWB and GMAB embedded derivatives	—		(905		)
IUL embedded derivatives	12		—
Total gain (loss)	$	22	$	(341	)

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

The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of September 30, 2017:

		Premiums Payable		Premiums Receivable
		(in millions)
2017	(1)	$	95	$	25
2018		213		129
2019		275		170
2020		197		98
2021		168		107
2022-2026		669		182
Total		$	1,617	$	711

⁽¹⁾ 2017 amounts represent the amounts payable and receivable for the period from October 1, 2017 to December 31, 2017.

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Shareholder's Equity (Tables)

9 Months Ended

Sep. 30, 2017

Stockholders' Equity Note [Abstract]

Schedule of components of OCI [Table Text Block]

The following tables provide the amounts related to each component of OCI:

	Three Months Ended September 30,
	2017									2016
	Pretax			Income Tax Benefit (Expense)			Net of Tax			Pretax			Income Tax Benefit (Expense)			Net of Tax
	(in millions)
Net unrealized securities gains (losses):
Net unrealized securities gains (losses) arising during the period (1)	$	52		$	(18	)	$	34		$	75		$	(25	)	$	50
Reclassification of net securities (gains) losses included in net income (2)	(3		)	1			(2		)	(1		)	—			(1		)
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables	(61		)	22			(39		)	(114		)	39			(75		)
Net unrealized securities gains (losses)	(12		)	5			(7		)	(40		)	14			(26		)
Net unrealized derivatives gains (losses):
Reclassification of net derivative (gains) losses included in net income (3)	1			—			1			1			—			1
Net unrealized derivatives gains (losses)	1			—			1			1			—			1
Other comprehensive income (loss)	$	(11	)	$	5		$	(6	)	$	(39	)	$	14		$	(25	)

	Nine Months Ended September 30,
	2017									2016
	Pretax			Income Tax Benefit (Expense)			Net of Tax			Pretax			Income Tax Benefit (Expense)			Net of Tax
	(in millions)
Net unrealized securities gains (losses):
Net unrealized securities gains (losses) arising during the period (1)	$	245		$	(85	)	$	160		$	1,067		$	(375	)	$	692
Reclassification of net securities (gains) losses included in net income (2)	(34		)	12			(22		)	(7		)	2			(5		)
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables	(168		)	59			(109		)	(533		)	186			(347		)
Net unrealized securities gains (losses)	43			(14		)	29			527			(187		)	340
Net unrealized derivatives gains (losses):
Reclassification of net derivative (gains) losses included in net income (3)	4			(1		)	3			4			(1		)	3
Net unrealized derivatives gains (losses)	4			(1		)	3			4			(1		)	3
Other	(1		)	—			(1		)	—			—			—
Other comprehensive income (loss)	$	46		$	(15	)	$	31		$	531		$	(188	)	$	343

⁽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 during the period.

⁽²⁾ Reclassification amounts are recorded in net realized investment gains (losses).

⁽³⁾ Reclassification amounts are recorded in net investment income.

Schedule of amounts reclassified from AOCI [Table Text Block]

The following tables present the changes in the balances of each component of AOCI, net of tax:

	Net Unrealized Securities Gains				Net Unrealized Derivatives Gains			Other			Total
	(in millions)
Balance, July 1, 2017	$	497			$	(2	)	$	(1	)	$	494
OCI before reclassifications	(5		)		—			—			(5		)
Amounts reclassified from AOCI	(2		)		1			—			(1		)
Total OCI	(7		)		1			—			(6		)
Balance, September 30, 2017	$	490		(1)	$	(1	)	$	(1	)	$	488
Balance, January 1, 2017	$	461			$	(4	)	$	—		$	457
OCI before reclassifications	51				—			(1		)	50
Amounts reclassified from AOCI	(22		)		3			—			(19		)
Total OCI	29				3			(1		)	31
Balance, September 30, 2017	$	490		(1)	$	(1	)	$	(1	)	$	488

	Net Unrealized Securities Gains				Net Unrealized Derivatives Gains			Total
	(in millions)
Balance, July 1, 2016	$	769			$	(6	)	$	763
OCI before reclassifications	(25		)		—			(25		)
Amounts reclassified from AOCI	(1		)		1			—
Total OCI	(26		)		1			(25		)
Balance, September 30, 2016	$	743		(1)	$	(5	)	$	738
Balance, January 1, 2016	$	403			$	(8	)	$	395
OCI before reclassifications	345				—			345
Amounts reclassified from AOCI	(5		)		3			(2		)
Total OCI	340				3			343
Balance, September 30, 2016	$	743		(1)	$	(5	)	$	738

⁽¹⁾ Includes $2 million and $1 million of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities as of September 30, 2017 and September 30, 2016, respectively.

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Basis of Presentation (Details) $ in Millions	3 Months Ended
	Sep. 30, 2017 USD ($) item	Mar. 31, 2017 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of wholly owned subsidiaries | item	1
Income tax provision [Member]
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Quantifying misstatement in current year financial statements, amount		$ (20)
Pretax income (loss) [Member]
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Quantifying misstatement in current year financial statements, amount	$ (14)
Amortization of deferred acquisition costs [Member]
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Quantifying misstatement in current year financial statements, amount	(10)
Benefits, claims, losses and settlement expenses [Member]
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Quantifying misstatement in current year financial statements, amount	$ (4)

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Variable Interest Entities Variable Interest Entities (Details) - VIEs, not primary beneficiary [Member] - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Total fixed maturities [Member]
Variable Interest Entity [Line Items]
Obligation to provide financial or other support to VIEs	$ 0
RiverSource Tax Advantaged Investments Inc [Member]
Variable Interest Entity [Line Items]
Carrying value of investments reflected in other investments	455	$ 482
Carrying value of liability of other investments	114	$ 135
Obligation to provide financial or other support to VIEs	$ 0

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Investments (AFS by type) (Details) - USD ($) $ in Millions		Sep. 30, 2017	Dec. 31, 2016
Investments
Amortized cost		$ 20,736	$ 21,468
Gross unrealized gains		1,515	1,400
Gross unrealized losses		(80)	(176)
Fair value		22,171	22,692
Noncredit OTTI	[1]	3	(1)
Fair value of securities owned and pledged as collateral		1,600	1,500
Fair value of securities owned and pledgted as collateral which are eligible for rehypothecation		697	428
Corporate debt securities [Member]
Investments
Amortized cost		12,415	13,105
Gross unrealized gains		1,137	1,060
Gross unrealized losses		(21)	(53)
Fair value		13,531	14,112
Residential mortgage backed securities [Member]
Investments
Amortized cost		3,065	3,386
Gross unrealized gains		66	72
Gross unrealized losses		(18)	(43)
Fair value		3,113	3,415
Noncredit OTTI	[1]		(4)
Commercial mortgage backed securities [Member]
Investments
Amortized cost		3,148	2,837
Gross unrealized gains		61	58
Gross unrealized losses		(25)	(38)
Fair value		3,184	2,857
State and municipal obligations [Member]
Investments
Amortized cost		1,109	1,092
Gross unrealized gains		196	161
Gross unrealized losses		(9)	(24)
Fair value		1,296	1,229
Asset backed securities [Member]
Investments
Amortized cost		710	790
Gross unrealized gains		30	26
Gross unrealized losses		(2)	(11)
Fair value		738	805
Foreign government bonds and obligations [Member]
Investments
Amortized cost		284	251
Gross unrealized gains		21	17
Gross unrealized losses		(5)	(7)
Fair value		300	261
U.S. government and agencies obligations [Member]
Investments
Amortized cost		1	3
Fair value		1	3
Total fixed maturities [Member]
Investments
Amortized cost		20,732	21,464
Gross unrealized gains		1,511	1,394
Gross unrealized losses		(80)	(176)
Fair value		22,163	22,682
Noncredit OTTI	[1]	$ 0	$ (4)
Fixed maturity securities as percentage of total investments		83.00%	83.00%
Fixed maturity investments rated internally		$ 962	$ 944
Common stocks [Member]
Investments
Amortized cost		4	4
Gross unrealized gains		4	6
Gross unrealized losses		0
Fair value		8	10
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.

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Investments (Rating info) (Details) $ in Millions	Sep. 30, 2017 USD ($) item	Dec. 31, 2016 USD ($) item
Investments
Amortized cost	$ 20,732	$ 21,464
Fair value	$ 22,163	$ 22,682
Percentage of securities rated AAA that were GNMA, FNMA and FHLMC	37.00%	40.00%
Number of holdings of other than GNMA, FNMA and FHLMC that are greater than 10% of total equity | item	0	0
AAA [Member]
Investments
Amortized cost	$ 5,908	$ 5,671
Fair value	$ 5,988	$ 5,728
Percent of total fair value	27.00%	25.00%
AA [Member]
Investments
Amortized cost	$ 1,079	$ 1,013
Fair value	$ 1,274	$ 1,177
Percent of total fair value	6.00%	5.00%
A [Member]
Investments
Amortized cost	$ 3,579	$ 3,767
Fair value	$ 4,019	$ 4,167
Percent of total fair value	18.00%	19.00%
BBB [Member]
Investments
Amortized cost	$ 8,985	$ 9,584
Fair value	$ 9,666	$ 10,190
Percent of total fair value	44.00%	45.00%
Below investment grade [Member]
Investments
Amortized cost	$ 1,181	$ 1,429
Fair value	$ 1,216	$ 1,420
Percent of total fair value	5.00%	6.00%
Total fixed maturities [Member]
Investments
Amortized cost	$ 20,732	$ 21,464
Fair value	$ 22,163	$ 22,682
Percent of total fair value	100.00%	100.00%

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Investments (EITF info) (Details) $ in Millions	Sep. 30, 2017 USD ($) item	Dec. 31, 2016 USD ($) item
Number of Securities
Less than 12 months | item	201	298
12 months or more | item	89	119
Total | item	290	417
Fair Value
Less than 12 months	$ 2,712	$ 4,489
12 months or more	814	896
Total	3,526	5,385
Unrealized Losses
Less than 12 months	(37)	(98)
12 months or more	(43)	(78)
Total	$ (80)	$ (176)
Corporate debt securities [Member]
Number of Securities
Less than 12 months | item	53	114
12 months or more | item	21	33
Total | item	74	147
Fair Value
Less than 12 months	$ 520	$ 1,502
12 months or more	178	319
Total	698	1,821
Unrealized Losses
Less than 12 months	(6)	(26)
12 months or more	(15)	(27)
Total	$ (21)	$ (53)
Residential mortgage backed securities [Member]
Number of Securities
Less than 12 months | item	43	56
12 months or more | item	26	56
Total | item	69	112
Fair Value
Less than 12 months	$ 833	$ 1,282
12 months or more	249	324
Total	1,082	1,606
Unrealized Losses
Less than 12 months	(11)	(25)
12 months or more	(7)	(18)
Total	$ (18)	$ (43)
Commercial mortgage backed securities [Member]
Number of Securities
Less than 12 months | item	67	80
12 months or more | item	14	1
Total | item	81	81
Fair Value
Less than 12 months	$ 1,172	$ 1,378
12 months or more	180	11
Total	1,352	1,389
Unrealized Losses
Less than 12 months	(19)	(37)
12 months or more	(6)	(1)
Total	$ (25)	$ (38)
State and municipal obligations [Member]
Number of Securities
Less than 12 months | item	19	18
12 months or more | item	5	2
Total | item	24	20
Fair Value
Less than 12 months	$ 55	$ 66
12 months or more	123	105
Total	178	171
Unrealized Losses
Less than 12 months	0	(3)
12 months or more	(9)	(21)
Total	$ (9)	$ (24)
Asset backed securities [Member]
Number of Securities
Less than 12 months | item	11	23
12 months or more | item	9	12
Total | item	20	35
Fair Value
Less than 12 months	$ 113	$ 231
12 months or more	63	114
Total	176	345
Unrealized Losses
Less than 12 months	(1)	(6)
12 months or more	(1)	(5)
Total	$ (2)	$ (11)
Foreign government bonds and obligations [Member]
Number of Securities
Less than 12 months | item	8	7
12 months or more | item	14	15
Total | item	22	22
Fair Value
Less than 12 months	$ 19	$ 30
12 months or more	21	23
Total	40	53
Unrealized Losses
Less than 12 months	0	(1)
12 months or more	(5)	(6)
Total	$ (5)	$ (7)

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Investments Investments (OTTI rollforward) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
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	$ 0	$ 33	$ 21	$ 33
Reductions for securities sold during the period (realized)	0	0	21	0
Ending balance	$ 0	$ 33	$ 0	$ 33

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Investments Investments (Realized GL info) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract]
Gross realized investment gains	$ 5	$ 5	$ 38	$ 18
Gross realized investment losses	(2)	(3)	(4)	(11)
Total	$ 3	$ 2	$ 34	$ 7

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Investments (AFS contractual maturity) (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Amortized Cost
Due within one year	$ 1,560
Due after one year through five years	5,213
Due after five years through 10 years	3,314
Due after 10 years	3,722
Total having single maturity dates	13,809
Total amortized cost	20,736	$ 21,468
Fair Value
Due within one year	1,588
Due after one year through five years	5,466
Due after five years through 10 years	3,460
Due after 10 years	4,614
Total having single maturity dates	15,128
Total fair value	22,171	22,692
Residential mortgage backed securities [Member]
Amortized Cost
Without single maturity dates	3,065
Total amortized cost	3,065	3,386
Fair Value
Without single maturity dates	3,113
Total fair value	3,113	3,415
Commercial mortgage backed securities [Member]
Amortized Cost
Without single maturity dates	3,148
Total amortized cost	3,148	2,837
Fair Value
Without single maturity dates	3,184
Total fair value	3,184	2,857
Asset backed securities [Member]
Amortized Cost
Without single maturity dates	710
Total amortized cost	710	790
Fair Value
Without single maturity dates	738
Total fair value	738	805
Common stocks [Member]
Amortized Cost
Without single maturity dates	4
Total amortized cost	4	4
Fair Value
Without single maturity dates	8
Total fair value	$ 8	$ 10

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Investments (Net Inv Inc summary) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net Investment Income [Line Items]
Gross investment income	$ 267	$ 283	$ 816	$ 870
Less: investment expenses	6	7	19	20
Total	261	276	797	850
Fixed maturities [Member]
Net Investment Income [Line Items]
Gross investment income	237	249	717	751
Mortgage loans [Member]
Net Investment Income [Line Items]
Gross investment income	34	38	103	115
Other investments [Member]
Net Investment Income [Line Items]
Gross investment income	$ (4)	$ (4)	$ (4)	$ 4

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Financing Receivables (Allowance for Loan Losses) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Rollforward of the allowance for loan losses
Beginning balance			$ 25	$ 25
Charge-offs			0	(1)
Provisions			0	1
Ending balance	$ 25	$ 25	25	25
Individually evaluated for impairment	3	2	3	2
Collectively evaluated for impairment	22	23	22	23
Recorded investment in financing receivables by impairment method
Individually evaluated for impairment	18		18		$ 10
Collectively evaluated for impairment	3,271		3,271		3,275
Total	3,289		3,289		3,285
Recorded investment in financing receivables individually evaluated for impairment with no related allowance for loan losses	13		13		5
Syndicated loans [Member]
Recorded investment in financing receivables by impairment method
Total	390		390		392
Loans purchased	14	17	121	54
Loans sold	9	$ 0	12
Residential mortgage loans [Member]
Recorded investment in financing receivables by impairment method
Total	$ 251		$ 251		$ 300
Loans sold				250
Proceeds from sale of loans				260
Gain from sale of loans				$ 10

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Financing Receivables (Credit Quality Information Text) (Details) $ in Millions	3 Months Ended
	Sep. 30, 2017 USD ($) item	Dec. 31, 2016 USD ($)
Credit quality information [Line Items]
Total recorded investment, gross	$ 3,289	$ 3,285
90 days or more past due [Member]
Credit quality information [Line Items]
Nonperforming loans	$ 2	$ 2
Commercial mortgage loans [Member]
Credit quality information [Line Items]
Percent of commercial mortgage loans with highest risk rating	1.00%	0.00%
Total recorded investment, gross	$ 2,648	$ 2,593
Residential mortgage loans [Member]
Credit quality information [Line Items]
Total recorded investment, gross	251	300
Allowance for loan losses for residential mortgage loans	$ 0	$ 0
Percentage of residential mortgage loans below specific FICO score	1.00%	2.00%
FICO Score | item	640
Percentage of residential mortgage loans above specific LTV ratio	0.00%	0.00%
LTV Ratio	90.00%
Percentage of residential mortgage loan portfolio represented by state of California	52.00%	52.00%
Percentage of residential mortgage loan portfolio represented by state of Colorado	18.00%	18.00%
Percentage of residential mortgage loan portfolio represented by state of Washington	13.00%	13.00%
Residential mortgage loans, at cost	$ 255
Loss on residential mortgage loans	4
Syndicated loans [Member]
Credit quality information [Line Items]
Total recorded investment, gross	390	$ 392
Syndicated loans [Member] | 90 days or more past due [Member]
Credit quality information [Line Items]
Nonperforming loans	$ 2	$ 1

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Financing Receivables (Credit Quality Information Tables) (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Commercial mortgage loans [Line Items]
Total loans, gross	$ 3,289	$ 3,285
Less: allowance for loan losses	25	25	$ 25	$ 25
Commercial mortgage loans [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	2,648	2,593
Less: allowance for loan losses	19	19
Total loans, net	$ 2,629	$ 2,574
Percentage of commercial mortgage loans	100.00%	100.00%
Commercial mortgage loans [Member] | Retail [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 896	$ 916
Percentage of commercial mortgage loans	34.00%	35.00%
Commercial mortgage loans [Member] | Office [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 485	$ 473
Percentage of commercial mortgage loans	18.00%	18.00%
Commercial mortgage loans [Member] | Apartments [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 540	$ 483
Percentage of commercial mortgage loans	20.00%	19.00%
Commercial mortgage loans [Member] | Industrial [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 442	$ 430
Percentage of commercial mortgage loans	17.00%	17.00%
Commercial mortgage loans [Member] | Mixed use [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 42	$ 42
Percentage of commercial mortgage loans	2.00%	2.00%
Commercial mortgage loans [Member] | Hotel [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 40	$ 41
Percentage of commercial mortgage loans	1.00%	1.00%
Commercial mortgage loans [Member] | Other [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 203	$ 208
Percentage of commercial mortgage loans	8.00%	8.00%
Commercial mortgage loans [Member] | South Atlantic [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 738	$ 753
Percentage of commercial mortgage loans	28.00%	29.00%
Commercial mortgage loans [Member] | Pacific [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 754	$ 722
Percentage of commercial mortgage loans	28.00%	28.00%
Commercial mortgage loans [Member] | Mountain [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 242	$ 234
Percentage of commercial mortgage loans	9.00%	9.00%
Commercial mortgage loans [Member] | West North Central [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 205	$ 212
Percentage of commercial mortgage loans	8.00%	8.00%
Commercial mortgage loans [Member] | Middle Atlantic [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 186	$ 191
Percentage of commercial mortgage loans	7.00%	7.00%
Commercial mortgage loans [Member] | East North Central [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 231	$ 195
Percentage of commercial mortgage loans	9.00%	8.00%
Commercial mortgage loans [Member] | West South Central [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 128	$ 122
Percentage of commercial mortgage loans	5.00%	5.00%
Commercial mortgage loans [Member] | New England [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 79	$ 84
Percentage of commercial mortgage loans	3.00%	3.00%
Commercial mortgage loans [Member] | East South Central [Member]
Commercial mortgage loans [Line Items]
Total loans, gross	$ 85	$ 80
Percentage of commercial mortgage loans	3.00%	3.00%

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Financing Receivables (Troubled Debt Restructurings) (Details) - USD ($)	Sep. 30, 2017	Sep. 30, 2016
Receivables [Abstract]
Commitments to lend additional funds to borrowers for restructured loans	$ 0	$ 0

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Deferred Acquisition Costs and Deferred Sales Inducement Costs (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Balances of and changes in DAC
Balance at the beginning of the period	$ 2,611	$ 2,693	[1]
Capitalization of acquisition costs	173	212	[2]
Amortization, excluding the impact of valuation assumptions review	(154)	(218)
Amortization, impact of valuation assumptions review	12	(81)
Impact of change in net unrealized securities (gains) losses	(18)	(105)
Balance at the end of the period	2,624	2,501	[1]
Benefit related to the write-off of the deferred reinsurance liability		27
Balances of and changes in DSIC
Balance at the beginning of the period	301	334
Capitalization of sales inducement costs	3	4
Amortization, excluding the impact of valuation assumptions review	(27)	(32)
Amortization, impact of valuation assumptions review	(1)	4
Impact of change in net unrealized securities (gains) losses	1	(14)
Balance at the end of the period	$ 277	$ 296

[1] DAC balances were restated for the correction of commission expense accrual for certain insurance and annuity products in the fourth quarter of 2016. See Note 1 in the 2016 10-K.

[2] Includes a $27 million benefit related to the write-off of the deferred reinsurance liability in connection with the loss recognition on LTC business.

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Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Balances by product) (Details) - USD ($) $ in Millions		Sep. 30, 2017	Dec. 31, 2016
Policyholder account balances		$ 20,336	$ 20,618
Future policy benefits		8,734	8,700
Policy claims and other policyholders’ funds		172	196
Total Policyholder account balances, future policy benefits and claims		29,242	29,514
Fixed annuities [Member]
Policyholder account balances	[1]	10,100	10,588
Variable annuity fixed sub-accounts [Member]
Policyholder account balances		5,187	5,211
VUL/UL insurance [Member]
Policyholder account balances		3,028	3,007
IUL [Member]
Policyholder account balances		1,290	1,054
Other life Insurance [Member]
Policyholder account balances		731	758
Variable annuity GMWB [Member]
Future policy benefits		539	1,017
Variable annuity GMAB [Member]
Future policy benefits	[2]	(73)	(24)
Other annuity liabilities [Member]
Future policy benefits		85	66
Fixed annuity life contingent liabilities [Member]
Future policy benefits		1,482	1,497
Llife, disability income and long term care insurance [Member]
Future policy benefits		6,027	5,556
VUL/UL and other life insurance additional liabilities [Member]
Future policy benefits		$ 674	$ 588

[1] Includes fixed deferred annuities, non-life contingent fixed payout annuities and equity indexed annuity (“EIA”) host contracts.

[2] Includes the fair value of GMAB embedded derivatives that was a net asset as of both September 30, 2017 and December 31, 2016 reported as a contra liability.

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Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Separate Account Liabilities) (Details 2) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Separate Accounts Disclosure [Abstract]
Variable annuity	$ 73,467	$ 69,606
VUL insurance	7,154	6,659
Other insurance	33	33
Total	$ 80,654	$ 76,298

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Variable Annuity and Insurance Guarantees (VA guarantee details) (Details) - USD ($) $ in Millions		9 Months Ended	12 Months Ended
		Sep. 30, 2017	Dec. 31, 2016
GMDB [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 77,796	$ 73,954
Contract value in separate accounts	[1]	72,658	68,790
Net amount at risk	[1]	$ 95	$ 433
Weighted average attained age	[1]	66 years	65 years
GMDB [Member] | Return of premium [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 59,806	$ 56,143
Contract value in separate accounts	[1]	57,840	54,145
Net amount at risk	[1]	$ 11	$ 208
Weighted average attained age	[1]	66 years	65 years
GMDB [Member] | Five/six-year reset [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 8,869	$ 8,878
Contract value in separate accounts	[1]	6,141	6,170
Net amount at risk	[1]	$ 13	$ 22
Weighted average attained age	[1]	66 years	66 years
GMDB [Member] | One-year ratchet [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 6,502	$ 6,426
Contract value in separate accounts	[1]	6,139	6,050
Net amount at risk	[1]	$ 12	$ 110
Weighted average attained age	[1]	69 years	68 years
GMDB [Member] | Five-year ratchet [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 1,562	$ 1,542
Contract value in separate accounts	[1]	1,504	1,483
Net amount at risk	[1]	$ 1	$ 7
Weighted average attained age	[1]	65 years	64 years
GMDB [Member] | Other [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 1,057	$ 965
Contract value in separate accounts	[1]	1,034	942
Net amount at risk	[1]	$ 58	$ 86
Weighted average attained age	[1]	72 years	71 years
GGU death benefit [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 1,103	$ 1,047
Contract value in separate accounts	[1]	1,052	996
Net amount at risk	[1]	$ 126	$ 108
Weighted average attained age	[1]	69 years	68 years
GMIB [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 236	$ 245
Contract value in separate accounts	[1]	219	227
Net amount at risk	[1]	$ 8	$ 13
Weighted average attained age	[1]	69 years	68 years
GMWB [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 45,458	$ 42,086
Contract value in separate accounts	[1]	45,330	41,924
Net amount at risk	[1]	$ 162	$ 291
Weighted average attained age	[1]	67 years	66 years
GMWB [Member] | GMWB standard benefit [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 2,525	$ 2,650
Contract value in separate accounts	[1]	2,517	2,642
Net amount at risk	[1]	$ 2	$ 2
Weighted average attained age	[1]	71 years	70 years
GMWB [Member] | GMWB for life [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 42,933	$ 39,436
Contract value in separate accounts	[1]	42,813	39,282
Net amount at risk	[1]	$ 160	$ 289	[2]
Weighted average attained age	[1]	67 years	66 years
GMAB [Member]
Variable Annuity Guarantees by Benefit Type
Total contract value	[1]	$ 3,157	$ 3,484
Contract value in separate accounts	[1]	3,153	3,476
Net amount at risk	[1]	$ 0	$ 21
Weighted average attained age	[1]	59 years	59 years

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

[2] Amount revised to reflect updated contractholder mortality assumptions at December 31, 2016.

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Variable Annuity and Insurance Guarantees Variable Annuity and Insurance Guarantees (UL Secondary Guarantees) (Details) - UL secondary guarantees [Member] - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Insurance Guarantees by Benefit Type
Net amount at risk	$ 6,443	$ 6,376
Weighted average attained age	65 years	64 years

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Variable Annuity and Insurance Guarantees (Liability rollforward) (Details) - USD ($) $ in Millions		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016
GMDB & GGU [Member]
Changes in additional liabilities for variable annuity and insurance guarantees
Balance at the beginning of the period		$ 16	$ 14
Incurred claims		3	10
Paid claims		(3)	(7)
Balance at the end of the period		16	17
GMIB [Member]
Changes in additional liabilities for variable annuity and insurance guarantees
Balance at the beginning of the period		8	8
Paid claims		(1)
Balance at the end of the period		7	8
GMWB [Member]
Changes in additional liabilities for variable annuity and insurance guarantees
Balance at the beginning of the period	[1]	1,017	1,057
Incurred claims	[1]	(478)	1,056
Balance at the end of the period	[1]	539	2,113
GMAB [Member]
Changes in additional liabilities for variable annuity and insurance guarantees
Balance at the beginning of the period	[1]	(24)	0
Incurred claims	[1]	(49)	9
Paid claims	[1]		(1)
Balance at the end of the period	[1]	(73)	8
UL [Member]
Changes in additional liabilities for variable annuity and insurance guarantees
Balance at the beginning of the period		434	332
Incurred claims		59	99
Paid claims		(22)	(18)
Balance at the end of the period		$ 471	$ 413

[1] The incurred claims for GMWB and GMAB represent the change in the fair value of the liabilities (contra liabilities) less paid claims.

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Variable Annuity and Insurance Guarantees (Separate account balance by type) (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Mutual funds
Variable Annuity and Insurance Guarantees
Total mutual funds	$ 72,963	$ 69,090
Equity [Member]
Variable Annuity and Insurance Guarantees
Total mutual funds	44,365	40,622
Bond [Member]
Variable Annuity and Insurance Guarantees
Total mutual funds	23,481	23,142
Other [Member]
Variable Annuity and Insurance Guarantees
Total mutual funds	$ 5,117	$ 5,326

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Short-term Borrowings (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Borrowings
Amount of the liability including accrued interest	$ 201	$ 200
Repurchase agreements [Member]
Borrowings
Amount of the liability including accrued interest	$ 50	$ 50
Remaining maturity of outstanding amount for short-term borrowings	1 month	3 months
Weighted average annualized interest rate	1.40%	0.90%
Federal Home Loan Bank [Member]
Borrowings
Amount of the liability including accrued interest	$ 151	$ 150
Remaining maturity of outstanding amount for short-term borrowings	3 months	4 months
Weighted average annualized interest rate	1.30%	0.80%
Residential mortgage backed securities [Member] | Repurchase agreements [Member]
Borrowings
Fair value of securities pledged	$ 32	$ 33
Commercial mortgage backed securities [Member] | Repurchase agreements [Member]
Borrowings
Fair value of securities pledged	16	19
Commercial mortgage backed securities [Member] | Federal Home Loan Bank [Member]
Borrowings
Fair value of securities pledged	$ 764	$ 771

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Fair Values of Assets and Liabilities (Recurring) (Details) - USD ($) $ in Millions		9 Months Ended		12 Months Ended
		Sep. 30, 2017		Dec. 31, 2016
Assets and liabilities measured at fair value
Individual contracts in a liability position	[1]	$ 3,548		$ 4,084
Individual contracts in an asset position	[2]	3,110		3,346
Cumulative increase (decrease) in embedded derivatives due to nonperformance		(376)		(498)
Assets
Available-for-sale securities: fixed maturities		22,163		22,682
Common stocks		8		10
Separate account assets measured at NAV		80,654		76,298
GMWB and GMAB embedded derivatives [Member]
Assets and liabilities measured at fair value
Individual contracts in a liability position		494		880
Individual contracts in an asset position		449		266
Recurring basis [Member]
Assets
Available-for-sale securities: fixed maturities		22,163		22,682
Common stocks		8		10
Cash equivalents		722		302
Other assets		3,110		3,346
Separate account assets measured at NAV	[3]	80,654		76,298
Total assets at fair value		106,657		102,638
Liabilities
Policyholder account balances, future policy benefits and claims		626	[4]	1,083	[5]
Other liabilities		2,922		3,001
Total liabilities at fair value		3,548		4,084
Recurring basis [Member] | Interest rate derivative contracts [Member]
Assets
Other assets		1,171		1,735
Liabilities
Other liabilities		416		965
Recurring basis [Member] | Equity derivative contracts [Member]
Assets
Other assets		1,893		1,530
Liabilities
Other liabilities		2,479		1,989
Recurring basis [Member] | Credit derivative contracts [Member]
Assets
Other assets		4		1
Recurring basis [Member] | Foreign exchange derivatives contracts [Member]
Assets
Other assets		42		80
Liabilities
Other liabilities		27		47
Recurring basis [Member] | EIA embedded derivatives [Member]
Liabilities
Policyholder account balances, future policy benefits and claims		4		5
Recurring basis [Member] | IUL embedded derivatives [Member]
Liabilities
Policyholder account balances, future policy benefits and claims		577		464
Recurring basis [Member] | GMWB and GMAB embedded derivatives [Member]
Liabilities
Policyholder account balances, future policy benefits and claims		45	[6]	614	[7]
Recurring basis [Member] | Corporate debt securities [Member]
Assets
Available-for-sale securities: fixed maturities		13,531		14,112
Recurring basis [Member] | Residential mortgage backed securities [Member]
Assets
Available-for-sale securities: fixed maturities		3,113		3,415
Recurring basis [Member] | Commercial mortgage backed securities [Member]
Assets
Available-for-sale securities: fixed maturities		3,184		2,857
Recurring basis [Member] | State and municipal obligations [Member]
Assets
Available-for-sale securities: fixed maturities		1,296		1,229
Recurring basis [Member] | Asset backed securities [Member]
Assets
Available-for-sale securities: fixed maturities		738		805
Recurring basis [Member] | Foreign government bonds and obligations [Member]
Assets
Available-for-sale securities: fixed maturities		300		261
Recurring basis [Member] | U.S. government and agencies obligations [Member]
Assets
Available-for-sale securities: fixed maturities		1		3
Recurring basis [Member] | Level 1 [Member]
Assets
Available-for-sale securities: fixed maturities		1		3
Common stocks		3		6
Other assets		50		43
Total assets at fair value		54		52
Liabilities
Other liabilities		5		5
Total liabilities at fair value		5		5
Recurring basis [Member] | Level 1 [Member] | Interest rate derivative contracts [Member]
Assets
Other assets		2
Liabilities
Other liabilities				1
Recurring basis [Member] | Level 1 [Member] | Equity derivative contracts [Member]
Assets
Other assets		48		43
Liabilities
Other liabilities		5		2
Recurring basis [Member] | Level 1 [Member] | Foreign exchange derivatives contracts [Member]
Liabilities
Other liabilities				2
Recurring basis [Member] | Level 1 [Member] | U.S. government and agencies obligations [Member]
Assets
Available-for-sale securities: fixed maturities		1		3
Recurring basis [Member] | Level 2 [Member]
Assets
Available-for-sale securities: fixed maturities		20,892		21,394
Common stocks		4		4
Cash equivalents		722		302
Other assets		3,060		3,303
Total assets at fair value		24,678		25,003
Liabilities
Policyholder account balances, future policy benefits and claims		4		5
Other liabilities		2,917		2,996
Total liabilities at fair value		2,921		3,001
Recurring basis [Member] | Level 2 [Member] | Interest rate derivative contracts [Member]
Assets
Other assets		1,169		1,735
Liabilities
Other liabilities		416		964
Recurring basis [Member] | Level 2 [Member] | Equity derivative contracts [Member]
Assets
Other assets		1,845		1,487
Liabilities
Other liabilities		2,474		1,987
Recurring basis [Member] | Level 2 [Member] | Credit derivative contracts [Member]
Assets
Other assets		4		1
Recurring basis [Member] | Level 2 [Member] | Foreign exchange derivatives contracts [Member]
Assets
Other assets		42		80
Liabilities
Other liabilities		27		45
Recurring basis [Member] | Level 2 [Member] | EIA embedded derivatives [Member]
Liabilities
Policyholder account balances, future policy benefits and claims		4		5
Recurring basis [Member] | Level 2 [Member] | Corporate debt securities [Member]
Assets
Available-for-sale securities: fixed maturities		12,385		12,955
Recurring basis [Member] | Level 2 [Member] | Residential mortgage backed securities [Member]
Assets
Available-for-sale securities: fixed maturities		3,024		3,300
Recurring basis [Member] | Level 2 [Member] | Commercial mortgage backed securities [Member]
Assets
Available-for-sale securities: fixed maturities		3,149		2,857
Recurring basis [Member] | Level 2 [Member] | State and municipal obligations [Member]
Assets
Available-for-sale securities: fixed maturities		1,296		1,229
Recurring basis [Member] | Level 2 [Member] | Asset backed securities [Member]
Assets
Available-for-sale securities: fixed maturities		738		792
Recurring basis [Member] | Level 2 [Member] | Foreign government bonds and obligations [Member]
Assets
Available-for-sale securities: fixed maturities		300		261
Recurring basis [Member] | Level 3 [Member]
Assets
Available-for-sale securities: fixed maturities		1,270		1,285
Common stocks		1
Total assets at fair value		1,271		1,285
Liabilities
Policyholder account balances, future policy benefits and claims		622		1,078
Total liabilities at fair value		622		1,078
Recurring basis [Member] | Level 3 [Member] | IUL embedded derivatives [Member]
Liabilities
Policyholder account balances, future policy benefits and claims		577		464
Recurring basis [Member] | Level 3 [Member] | GMWB and GMAB embedded derivatives [Member]
Liabilities
Policyholder account balances, future policy benefits and claims		45		614
Recurring basis [Member] | Level 3 [Member] | Corporate debt securities [Member]
Assets
Available-for-sale securities: fixed maturities		1,146		1,157
Recurring basis [Member] | Level 3 [Member] | Residential mortgage backed securities [Member]
Assets
Available-for-sale securities: fixed maturities		89		115
Recurring basis [Member] | Level 3 [Member] | Commercial mortgage backed securities [Member]
Assets
Available-for-sale securities: fixed maturities		$ 35
Recurring basis [Member] | Level 3 [Member] | Asset backed securities [Member]
Assets
Available-for-sale securities: fixed maturities				$ 13

[1] The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and EIA embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets.

[2] The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets.

[3] Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy.

[4] The Company’s adjustment for nonperformance risk resulted in a $(376) million cumulative increase (decrease) to the embedded derivatives as of September 30, 2017.

[5] The Company’s adjustment for nonperformance risk resulted in a $(498) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2016.

[6] The fair value of the GMWB and GMAB embedded derivatives included $494 million of individual contracts in a liability position and $449 million of individual contracts in an asset position as of September 30, 2017.

[7] The fair value of the GMWB and GMAB embedded derivatives included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position as of December 31, 2016.

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Fair Values of Assets and Liabilities (Level 3 rollforwards-Assets) (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Transfers from Level 1 to Level 2, assets		$ 0	$ 0	$ 0	$ 0
Transfers from Level 2 to Level 1, assets		0	0	0	0
Corporate debt securities [Member]
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward]
Balance, at the beginning of the period		1,190	1,197	1,157	1,235
Total gaines (losses) included in net income		1	(1)	1	(1)
Total gains (losses) included in other comprehensive income		(1)	(2)	1	26
Purchases		38	20	96	34
Settlements		(82)	(21)	(109)	(101)
Balance, at the end of the period		1,146	1,193	1,146	1,193
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings [Abstract]
Changes in unrealized gains (losses) relating to assets held at end of period		1	(1)	1	(1)
Residential mortgage backed securities [Member]
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward]
Balance, at the beginning of the period		89	15	115	21
Total gains (losses) included in other comprehensive income		1		1
Purchases			106	67	106
Settlements		(1)	(1)	(5)	(7)
Transfers out of Level 3				(89)
Balance, at the end of the period		89	120	89	120
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		0	0	0	3
Purchases		35	33	35	42
Settlements					(3)
Transfers out of Level 3					(9)
Balance, at the end of the period		35	33	35	33
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		11	130	13	133
Total gaines (losses) included in net income			1		1
Purchases				49
Settlements			(1)	(13)	(1)
Transfers into Level 3				11	12
Transfers out of Level 3		(11)	(12)	(60)	(27)
Balance, at the end of the period		0	118	0	118
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings [Abstract]
Changes in unrealized gains (losses) relating to assets held at end of period			1		1
Common stocks [Member]
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward]
Balance, at the beginning of the period		0		0
Transfers into Level 3		1		5
Transfers out of Level 3				(4)
Balance, at the end of the period		1		1
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		1,290	1,342	1,285	1,392
Total gaines (losses) included in net income	[1]	1	0	1	0
Total gains (losses) included in other comprehensive income		0	(2)	2	26
Purchases		73	159	247	182
Settlements		(83)	(23)	(127)	(112)
Transfers into Level 3		1		16	12
Transfers out of Level 3		(11)	(12)	(153)	(36)
Balance, at the end of the period		1,271	1,464	1,271	1,464
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings [Abstract]
Changes in unrealized gains (losses) relating to assets held at end of period	[1]	$ 1	0	$ 1	0
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			2		0
Total gaines (losses) included in net income	[2]		(2)		(2)
Purchases					2
Balance, at the end of the period			0		0
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings [Abstract]
Changes in unrealized gains (losses) relating to assets held at end of period	[2]		$ (2)		$ (2)

[1] Included in net investment income in the Consolidated Statements of Income.

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

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Fair Values of Assets and Liabilities (Level 3 rollforwards-Liabilities) (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Transfers from Level 2 to Level 1, liabilities		$ 0	$ 0	$ 0	$ 0
Transfers from Level 1 to Level 2, liabilities		0	0	0	0
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings [Abstract]
Net increase (decrease) to pretax income from embedded derivative liability		(37)	8	(91)	295
IUL embedded derivatives [Member]
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward]
Balance at the beginning of the period		527	408	464	364
Total (gains) losses included in net income	[1]	35	12	75	8
Issues		26	25	70	86
Settlements		(11)	(7)	(32)	(20)
Balance at the end of the period		577	438	577	438
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings [Abstract]
Changes in unrealized (gains) losses relating to liabilities held at the end of the period	[1]	35	12	75	8
GMWB and GMAB embedded derivatives [Member]
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward]
Balance at the beginning of the period		272	1,965	614	851
Total (gains) losses included in net income	[2]	(309)	(280)	(798)	708
Issues		84	77	238	215
Settlements		(2)	(6)	(9)	(18)
Balance at the end of the period		45	1,756	45	1,756
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings [Abstract]
Changes in unrealized (gains) losses relating to liabilities held at the end of the period	[2]	(307)	(267)	(771)	830
Total [Member]
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward]
Balance at the beginning of the period		799	2,373	1,078	1,215
Total (gains) losses included in net income		(274)	(268)	(723)	716
Issues		110	102	308	301
Settlements		(13)	(13)	(41)	(38)
Balance at the end of the period		622	2,194	622	2,194
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings [Abstract]
Changes in unrealized (gains) losses relating to liabilities held at the end of the period		$ (272)	$ (255)	$ (696)	$ 838

[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.

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Fair Values of Assets and Liabilities (Unobservable inputs) (Details) - Discounted cash flow [Member] - USD ($) $ in Millions		9 Months Ended	12 Months Ended
		Sep. 30, 2017	Dec. 31, 2016
IUL embedded derivatives [Member]
Fair values of assets and liabilities
Liabilities at fair value		$ 577	$ 464
Nonperformance risk (as a percent)	[1]	0.67%	0.82%
GMWB and GMAB embedded derivatives [Member]
Fair values of assets and liabilities
Liabilities at fair value		$ 45	$ 614
Nonperformance risk (as a percent)	[1]	0.67%	0.82%
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)		0.10%	0.10%
Market volatility rate (as a percent)	[3]	4.30%	5.30%
GMWB and GMAB embedded derivatives [Member] | Maximum [Member]
Fair values of assets and liabilities
Utilization of guaranteed withdrawals (as a percent)	[2]	42.00%	75.60%
Surrender rate (as a percent)		74.70%	66.40%
Market volatility rate (as a percent)	[3]	15.90%	21.20%
Corporate debt securities [Member]
Fair values of assets and liabilities
Assets at fair value		$ 1,144	$ 1,154
Corporate debt securities [Member] | Minimum [Member]
Fair values of assets and liabilities
Yield/spread to U.S. Treasuries (as a percent)		0.80%	0.90%
Corporate debt securities [Member] | Maximum [Member]
Fair values of assets and liabilities
Yield/spread to U.S. Treasuries (as a percent)		2.30%	2.50%
Corporate debt securities [Member] | Weighted average [Member]
Fair values of assets and liabilities
Yield/spread to U.S. Treasuries (as a percent)		1.20%	1.30%

[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.

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Fair Values of Assets and Liabilities Fair Value of Assets & Liabilities (Non-Recurring) (Details) $ in Millions	3 Months Ended
	Sep. 30, 2017 USD ($)
Residential mortgage loans
Assets and liabilities measured at fair value
Loss on residential mortgage loans	$ 4
Non-Recurring basis [Member] | Level 3 [Member]
Assets and liabilities measured at fair value
Residential mortgage loans, at cost	255
Residential mortgage loans, at fair value	$ 251

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Fair Values of Assets and Liabilities (Financial Instruments not at FV) (Details) - USD ($) $ in Millions		Sep. 30, 2017	Dec. 31, 2016
Financial Assets
Mortgage loans, net		$ 2,880	$ 2,874
Policy loans		841	830
Other investments		957	998
Financial Liabilities
Policyholder account balances, future policy benefits and claims		29,242	29,514
Short-term borrowings		201	200
Other liabilities		4,369	4,253
Separate account liabilities measured at NAV		80,654	76,298
Carrying value [Member]
Financial Assets
Mortgage loans, net		2,629	2,874
Policy loans		841	830
Other investments		401	402
Financial Liabilities
Policyholder account balances, future policy benefits and claims		10,415	10,906
Short-term borrowings		201	200
Other liabilities		145	177
Separate account liabilities measured at NAV		356	341
Recurring basis [Member]
Financial Assets
Mortgage loans, net		2,648	2,865
Policy loans		797	807
Other investments		403	407
Financial Liabilities
Policyholder account balances, future policy benefits and claims		11,052	11,417
Short-term borrowings		201	200
Other liabilities		140	169
Separate account liabilities measured at NAV	[1]	356	341
Recurring basis [Member] | Level 2 [Member]
Financial Assets
Other investments		352	364
Financial Liabilities
Short-term borrowings		201	200
Recurring basis [Member] | Level 3 [Member]
Financial Assets
Mortgage loans, net		2,648	2,865
Policy loans		797	807
Other investments		51	43
Financial Liabilities
Policyholder account balances, future policy benefits and claims		11,052	11,417
Other liabilities		$ 140	$ 169

[1] Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy.

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Offsetting Assets and Liabilities (Assets) (Details) - USD ($) $ in Millions		Sep. 30, 2017		Dec. 31, 2016
Derivatives:
Gross amounts of recognized assets	[1]	$ 3,110		$ 3,346
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial instruments	[2]	(2,341)		(2,670)
Cash collateral		(636)		(377)
Securities collateral		(109)		(235)
Net amount		24		64
OTC derivatives [Member]
Derivatives:
Gross amounts of recognized assets		3,079		2,822
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial instruments	[2]	(2,327)		(2,161)
Cash collateral		(636)		(374)
Securities collateral		(109)		(235)
Net amount		7		52
OTC cleared derivatives [Member]
Derivatives:
Gross amounts of recognized assets		13	[3]	510
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial instruments	[2]	(12)	[3]	(507)
Cash collateral				(3)
Net amount		1	[3]	0
Exchange-traded derivatives [Member]
Derivatives:
Gross amounts of recognized assets		18		14
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial instruments	[2]	(2)		(2)
Net amount		$ 16		$ 12

[1] The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets.

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

[3] The decrease in OTC cleared derivatives from December 31, 2016 is a result of certain central clearing parties amending their rules resulting in variation margin payments being settlement payments, as opposed to collateral.

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Offsetting Assets and Liabilities (Liabilities) (Details) - USD ($) $ in Millions		Sep. 30, 2017		Dec. 31, 2016
Derivatives
Gross amounts of recognized liabilities	[1]	$ 3,548		$ 4,084
Repurchase agreements
Gross amounts of recognized liabilities		50		50
Gross Amounts Not Offset in the Consolidated Balance Sheets
Securities collateral		(48)		(50)
Net amount		2		0
Total
Gross amounts of recognized liabilities		2,972		3,051
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial instruments	[2]	(2,341)		(2,670)
Cash collateral		(1)		(8)
Securities collateral		(626)		(362)
Net amount		4		11
OTC derivatives [Member]
Derivatives
Gross amounts of recognized liabilities		2,908		2,481
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial instruments	[2]	(2,327)		(2,161)
Cash collateral		(1)		0
Securities collateral		(578)		(312)
Net amount		2		8
OTC cleared derivatives [Member]
Derivatives
Gross amounts of recognized liabilities		12	[3]	515
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial instruments	[2]	(12)	[3]	(507)
Cash collateral				(8)
Net amount		0	[3]	0
Exchange-traded derivatives [Member]
Derivatives
Gross amounts of recognized liabilities		2		5
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial instruments	[2]	(2)		(2)
Net amount		0		3
Total derivatives [Member]
Derivatives
Gross amounts of recognized liabilities		2,922		3,001
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial instruments	[2]	(2,341)		(2,670)
Cash collateral		(1)		(8)
Securities collateral		(578)		(312)
Net amount		$ 2		$ 11

[1] The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and EIA embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets.

[2] 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.

[3] The decrease in OTC cleared derivatives from December 31, 2016 is a result of certain central clearing parties amending their rules resulting in variation margin payments being settlement payments, as opposed to collateral.

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Derivatives and Hedging Activities (Balance Sheet) (Details) - USD ($) $ in Millions		Sep. 30, 2017	Dec. 31, 2016
Derivatives and Hedging Activities
Notional amount		$ 129,089	$ 137,211
Gross fair value of assets	[1]	3,110	3,346
Gross fair value of liabilities	[2]	3,548	4,084
Fair value of investment securities received as collateral		122	235
Fair value of investment securities received as collateral that can be repledged		122	118
Fair value of investment securities received as collateral that were repledged		12	19
GMWB and GMAB embedded derivatives [Member]
Derivatives and Hedging Activities
Gross fair value of assets		449	266
Gross fair value of liabilities		494	880
Derivatives not designated as hedging instruments [Member]
Derivatives and Hedging Activities
Notional amount		129,089	137,211
Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member]
Derivatives and Hedging Activities
Notional amount		65,248	71,019
Derivatives not designated as hedging instruments [Member] | Equity contracts [Member]
Derivatives and Hedging Activities
Notional amount		58,359	60,419
Derivatives not designated as hedging instruments [Member] | Credit contracts [Member]
Derivatives and Hedging Activities
Notional amount		718	1,039
Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member]
Derivatives and Hedging Activities
Notional amount		4,314	4,494
Derivatives not designated as hedging instruments [Member] | Other contracts [Member]
Derivatives and Hedging Activities
Notional amount		450	240
Other assets [Member] | Derivatives not designated as hedging instruments [Member]
Derivatives and Hedging Activities
Gross fair value of assets	[1]	3,110	3,346
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member]
Derivatives and Hedging Activities
Gross fair value of assets	[1]	1,171	1,735
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member]
Derivatives and Hedging Activities
Gross fair value of assets	[1]	1,893	1,530
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Credit contracts [Member]
Derivatives and Hedging Activities
Gross fair value of assets	[1]	4	1
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member]
Derivatives and Hedging Activities
Gross fair value of assets	[1]	42	80
Other assets [Member] | Derivatives not designated as hedging instruments [Member] | Other contracts [Member]
Derivatives and Hedging Activities
Gross fair value of assets	[1]	0	0
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member]
Derivatives and Hedging Activities
Gross fair value of liabilities	[2]	2,922	3,001
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member]
Derivatives and Hedging Activities
Gross fair value of liabilities	[2]	416	965
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Equity contracts [Member]
Derivatives and Hedging Activities
Gross fair value of liabilities	[2]	2,479	1,989
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member]
Derivatives and Hedging Activities
Gross fair value of liabilities	[2]	27	47
Other liabilities [Member] | Derivatives not designated as hedging instruments [Member] | Other contracts [Member]
Derivatives and Hedging Activities
Gross fair value of liabilities	[2]	0	0
Policyholder account balances, future policy benefits and claims [Member] | GMWB and GMAB embedded derivatives [Member]
Derivatives and Hedging Activities
Gross fair value of liabilities	[2],[3]	45	614
Policyholder account balances, future policy benefits and claims [Member] | IUL embedded derivatives [Member]
Derivatives and Hedging Activities
Gross fair value of liabilities	[2]	577	464
Policyholder account balances, future policy benefits and claims [Member] | EIA embedded derivatives [Member]
Derivatives and Hedging Activities
Gross fair value of liabilities	[2]	4	5
Policyholder account balances, future policy benefits and claims [Member] | Total embedded derivatives [Member]
Derivatives and Hedging Activities
Gross fair value of liabilities	[2]	$ 626	$ 1,083

[1] The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets.

[2] The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and EIA embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets.

[3] The fair value of the GMWB and GMAB embedded derivatives as of September 30, 2017 included $494 million of individual contracts in a liability position and $449 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2016 included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position.

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Derivatives and Hedging Activities (Income Statement) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Interest credited to fixed accounts [Member]
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income	$ (6)	$ 7	$ 7	$ 22
Interest credited to fixed accounts [Member] | IUL embedded derivatives [Member]
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income	(24)	(5)	(43)	12
Benefits, claims, losses and settlement expenses [Member]
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income	(3)	(185)	(278)	(341)
Benefits, claims, losses and settlement expenses [Member] | GMWB and GMAB embedded derivatives [Member]
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income	227	209	569	(905)
Derivatives not designated as hedging instruments [Member] | Interest credited to fixed accounts [Member] | Equity contracts [Member]
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income	18	12	50	10
Derivatives not designated as hedging instruments [Member] | Benefits, claims, losses and settlement expenses [Member] | Interest rate contracts [Member]
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income	15	(13)	63	1,191
Derivatives not designated as hedging instruments [Member] | Benefits, claims, losses and settlement expenses [Member] | Equity contracts [Member]
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income	(241)	(364)	(859)	(525)
Derivatives not designated as hedging instruments [Member] | Benefits, claims, losses and settlement expenses [Member] | Credit contracts [Member]
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income	(3)	(3)	(22)	(34)
Derivatives not designated as hedging instruments [Member] | Benefits, claims, losses and settlement expenses [Member] | Foreign exchange contracts [Member]
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income	1	(12)	(27)	(66)
Derivatives not designated as hedging instruments [Member] | Benefits, claims, losses and settlement expenses [Member] | Other contracts [Member]
Impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income
Amount of gain (loss) on derivatives recognized in income	$ (2)	$ (2)	$ (2)	$ (2)

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Derivatives and Hedging Activities (Option Pay/Rec) (Details) $ in Millions	Sep. 30, 2017 USD ($)
Summary of option premiums payable and receivable
Premiums payable	$ 1,617
Premiums receivable	711
2017 [Member]
Summary of option premiums payable and receivable
Premiums payable	95	[1]
Premiums receivable	25	[1]
2018 [Member]
Summary of option premiums payable and receivable
Premiums payable	213
Premiums receivable	129
2019 [Member]
Summary of option premiums payable and receivable
Premiums payable	275
Premiums receivable	170
2020 [Member]
Summary of option premiums payable and receivable
Premiums payable	197
Premiums receivable	98
2021 [Member]
Summary of option premiums payable and receivable
Premiums payable	168
Premiums receivable	107
2022-2026 [Member]
Summary of option premiums payable and receivable
Premiums payable	669
Premiums receivable	$ 182

[1] 2017 amounts represent the amounts payable and receivable for the period from October 1, 2017 to December 31, 2017.

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Derivatives and Hedging Activities (Cash Flow Hedges and Credit Risk) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
General Cash Flow Hedge Information [Abstract]
Derivatives designated as cash flow hedges	$ 0
Cash flow hedge loss to be reclassified within twelve months	$ 3
Longest period of time over which the entity hedges exposure to the variability in future cash flows	1 year
Derivatives liabilities, credit risk related contingent features
Aggregate fair value of derivative contracts in a net liability position containing such credit contingent instruments	$ 368	$ 206
Aggregate fair value of assets posted as collateral for such instruments	366	198
Aggregate fair value of additional assets required to be posted or needed to settle the instruments	$ 2	$ 8

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Comprehensive Income (Loss) (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent [Abstract]
Net unrealized securities gains (losses) arising during the period, pretax	[1]	$ 52	$ 75	$ 245	$ 1,067
Reclassification of net securities (gains) losses included in net income, pretax	[2]	(3)	(1)	(34)	(7)
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables, pretax		(61)	(114)	(168)	(533)
Net unrealized securities gains (losses), pretax		(12)	(40)	43	527
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax, Portion Attributable to Parent [Abstract]
Reclassification of net derivative (gains) losses included in net income, pretax	[3]	1	1	4	4
Net unrealized derivative gains (losses), pretax		1	1	4	4
Other, pretax				(1)	0
Other comprehensive income (loss), pretax		(11)	(39)	46	531
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax, Portion Attributable to Parent [Abstract]
Net unrealized securities gains (losses) arising during the period, tax	[1]	(18)	(25)	(85)	(375)
Reclassification of net securities (gains) losses included in net income, tax	[2]	1	0	12	2
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables, tax		22	39	59	186
Net unrealized securities gains (losses), tax		5	14	(14)	(187)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax, Portion Attributable to Parent [Abstract]
Reclassification of net derivative (gains) losses included in net income, tax	[3]	0	0	(1)	(1)
Net unrealized derivatives gains (losses), tax		0	0	(1)	(1)
Other, tax				0	0
Other comprehensive income (loss), tax		5	14	(15)	(188)
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent [Abstract]
Net unrealized securities gains (losses) arising during the period, net of tax	[1]	34	50	160	692
Reclassification of net securities (gains) losses included in net income, net of tax	[2]	2	1	22	5
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables, net of tax		(39)	(75)	(109)	(347)
Net unrealized securities gains (losses), net of tax		(7)	(26)	29	340
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent [Abstract]
Reclassification of net derivative (gains) losses included in net income, net of tax	[3]	1	1	3	3
Net unrealized derivatives gains (losses), net of tax		1	1	3	3
Other, net of tax		0	0	(1)	0
Total other comprehensive income (loss), net of tax		$ (6)	$ (25)	$ 31	$ 343

[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 during the period.

[2] Reclassification amounts are recorded in net realized investment gains (losses).

[3] Reclassification amounts are recorded in net investment income.

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Shareholder's Equity Shareholder's Equity (Reclassifications) (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance		$ 494	$ 763	$ 457	$ 395
OCI before reclassifications		(5)	(25)	50	345
Amounts reclassified from AOCI		(1)	0	(19)	(2)
Total OCI		(6)	(25)	31	343
Ending balance		488	738	488	738
Net unrealized securities gains [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance		497	769	461	403
OCI before reclassifications		(5)	(25)	51	345
Amounts reclassified from AOCI		(2)	(1)	(22)	(5)
Total OCI		(7)	(26)	29	340
Ending balance	[1]	490	743	490	743
Noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities		2	1	2	1
Net unrealized derivatives gains [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance		(2)	(6)	(4)	(8)
OCI before reclassifications		0	0	0	0
Amounts reclassified from AOCI		1	1	3	3
Total OCI		1	1	3	3
Ending balance		(1)	$ (5)	(1)	$ (5)
Other [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance		(1)		0
OCI before reclassifications		0		(1)
Total OCI		0		(1)
Ending balance		$ (1)		$ (1)

[1] Includes $2 million and $1 million of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities as of September 30, 2017 and September 30, 2016, respectively.

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Operating Loss Carryforwards [Line Items]
Effective tax rate (as a percent)	11.80%	1900.00%	9.40%	5.80%
Valuation allowance	$ 10		$ 10		$ 8
Gross unrecognized tax benefits	62		62		59
Unrecognized tax benefits, net of federal tax benefits, that would affect the effective tax rate if recognized	6		6		6
Net increase (decrease) in interest and penalties	(1)	$ 0	1	$ (39)
Payable related to accrued interest and penalties	3		3		$ 2
State and local jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
State net operating losses	$ 9		$ 9

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Contingencies (Details) - Future guaranty fund assessments [Member] - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Contingencies
Liability related to guaranty fund assessments	$ 15	$ 16
Related premium tax asset	$ 12	$ 14