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Investments
 9 Months Ended
Sep. 30, 2013
Investments, Debt and Equity Securities [Abstract]  
Investments
Investments
 
The following is a summary of Ameriprise Financial investments:
 
September 30, 2013
 
December 31, 2012
 
(in millions)
Available-for-Sale securities, at fair value
$
30,084

 
$
31,472

Mortgage loans, net
3,524

 
3,609

Policy and certificate loans
769

 
754

Other investments
1,027

 
1,042

Total
$
35,404

 
$
36,877


 
The following is a summary of net investment income:
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
 
2013
 
2012
 
2013
 
2012
 
(in millions)
Investment income on fixed maturities
$
390

 
$
442

 
$
1,194

 
$
1,353

Net realized gains (losses)
6

 
(68
)
 
7

 
(75
)
Affordable housing partnerships
(3
)
 
(5
)
 
(11
)
 
(17
)
Other
17

 
15

 
76

 
51

Consolidated investment entities
81

 
43

 
165

 
118

Total net investment income
$
491

 
$
427

 
$
1,431

 
$
1,430


 
Available-for-Sale securities distributed by type were as follows:
 
 
September 30, 2013
Description of Securities
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
Noncredit
OTTI (1)
 
 
(in millions)
Corporate debt securities
 
$
16,198

 
$
1,392

 
$
(88
)
 
$
17,502

 
$
2

Residential mortgage backed securities
 
5,895

 
171

 
(123
)
 
5,943

 
(43
)
Commercial mortgage backed securities
 
2,612

 
166

 
(8
)
 
2,770

 
—

Asset backed securities
 
1,377

 
54

 
(6
)
 
1,425

 
—

State and municipal obligations
 
2,079

 
116

 
(72
)
 
2,123

 
—

U.S. government and agencies obligations
 
47

 
6

 
—

 
53

 
—

Foreign government bonds and obligations
 
240

 
19

 
(7
)
 
252

 
—

Common stocks
 
7

 
9

 
—

 
16

 
3

Total
 
$
28,455

 
$
1,933

 
$
(304
)
 
$
30,084

 
$
(38
)
 
 
 
December 31, 2012
Description of Securities
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
Noncredit
OTTI (1)
 
 
(in millions)
Corporate debt securities
 
$
16,628

 
$
2,196

 
$
(9
)
 
$
18,815

 
$
—

Residential mortgage backed securities
 
5,280

 
261

 
(112
)
 
5,429

 
(58
)
Commercial mortgage backed securities
 
3,120

 
299

 
—

 
3,419

 
—

Asset backed securities
 
1,204

 
75

 
(4
)
 
1,275

 
—

State and municipal obligations
 
2,034

 
241

 
(36
)
 
2,239

 
—

U.S. government and agencies obligations
 
49

 
9

 
—

 
58

 
—

Foreign government bonds and obligations
 
188

 
36

 
—

 
224

 
—

Common stocks
 
7

 
6

 
—

 
13

 
2

Total
 
$
28,510

 
$
3,123

 
$
(161
)
 
$
31,472

 
$
(56
)
(1)  Represents the amount of other-than-temporary impairment (“OTTI”) losses in accumulated other comprehensive income. 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.
 
At September 30, 2013 and December 31, 2012, fixed maturity securities comprised approximately 85% of Ameriprise Financial investments. Rating agency designations are based on the availability of ratings from Nationally Recognized Statistical Rating Organizations (“NRSROs”), including Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”) and Fitch Ratings Ltd. (“Fitch”). The Company uses the median of available ratings from Moody’s, S&P and Fitch, or, if fewer than three ratings are available, the lower rating is used. When ratings from Moody’s, S&P and Fitch are unavailable, the Company may utilize ratings from other NRSROs or rate the securities internally. At September 30, 2013 and December 31, 2012, the Company’s internal analysts rated $1.4 billion and $1.7 billion, respectively, of securities using criteria similar to those used by NRSROs. A summary of fixed maturity securities by rating was as follows:
 
 
September 30, 2013
 
December 31, 2012
Ratings
 
Amortized
Cost
 
Fair Value
 
Percent of
Total Fair
Value
 
Amortized
Cost
 
Fair Value
 
Percent of
Total Fair
Value
 
 
(in millions, except percentages)
AAA
 
$
7,365

 
$
7,631

 
25
%
 
$
7,462

 
$
8,021

 
26
%
AA
 
1,620

 
1,750

 
6

 
1,620

 
1,827

 
6

A
 
5,812

 
6,171

 
21

 
5,456

 
6,069

 
19

BBB
 
11,705

 
12,642

 
42

 
11,939

 
13,575

 
43

Below investment grade
 
1,946

 
1,874

 
6

 
2,026

 
1,967

 
6

Total fixed maturities
 
$
28,448

 
$
30,068

 
100
%
 
$
28,503

 
$
31,459

 
100
%

 
At September 30, 2013 and December 31, 2012, approximately 43% and 35%, 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:
 
 
September 30, 2013
 
 
Less than 12 months
 
12 months or more
 
Total
Description of Securities
 
Number of
Securities
 
Fair
Value
 
Unrealized
Losses
 
Number of
Securities
 
Fair
Value
 
Unrealized
Losses
 
Number of
Securities
 
Fair
Value
 
Unrealized
Losses
 
 
(in millions, except number of securities)
Corporate debt securities
168

 
$
2,496

 
$
(79
)
 
4

 
$
70

 
$
(9
)
 
172

 
$
2,566

 
$
(88
)
Residential mortgage backed securities
114

 
1,941

 
(47
)
 
113

 
528

 
(76
)
 
227

 
2,469

 
(123
)
Commercial mortgage backed securities
26

 
243

 
(8
)
 
1

 
—

 
—

 
27

 
243

 
(8
)
Asset backed securities
34

 
453

 
(5
)
 
3

 
21

 
(1
)
 
37

 
474

 
(6
)
State and municipal obligations
153

 
420

 
(35
)
 
7

 
106

 
(37
)
 
160

 
526

 
(72
)
Foreign government bonds and obligations
22

 
71

 
(7
)
 
—

 
—

 
—

 
22

 
71

 
(7
)
Total
517

 
$
5,624

 
$
(181
)
 
128

 
$
725

 
$
(123
)
 
645

 
$
6,349

 
$
(304
)

 
 
December 31, 2012
 
 
Less than 12 months
 
12 months or more
 
Total
Description of Securities
 
Number of
Securities
 
Fair
Value
 
Unrealized
Losses
 
Number of
Securities
 
Fair
Value
 
Unrealized
Losses
 
Number of
Securities
 
Fair
Value
 
Unrealized
Losses
 
 
(in millions, except number of securities)
Corporate debt securities
76

 
$
801

 
$
(6
)
 
6

 
$
70

 
$
(3
)
 
82

 
$
871

 
$
(9
)
Residential mortgage backed securities
22

 
408

 
(5
)
 
134

 
658

 
(107
)
 
156

 
1,066

 
(112
)
Asset backed securities
9

 
108

 
(1
)
 
5

 
86

 
(3
)
 
14

 
194

 
(4
)
State and municipal obligations
13

 
34

 
(1
)
 
8

 
113

 
(35
)
 
21

 
147

 
(36
)
Total
120

 
$
1,351

 
$
(13
)
 
153

 
$
927

 
$
(148
)
 
273

 
$
2,278

 
$
(161
)

 
As part of Ameriprise Financial's ongoing monitoring process, management determined that a majority of the change in gross unrealized losses on its Available-for-Sale securities is attributable to movement in interest rates.
 
The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Operations for other-than-temporary impairments related to credit losses on securities for which a portion of the securities’ total other-than-temporary impairments was recognized in other comprehensive income (loss):
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
 
2013
 
2012
 
2013
 
2012
 
(in millions)
Beginning balance
$
157

 
$
294

 
$
176

 
$
303

Credit losses for which an other-than-temporary impairment was not previously recognized
2

 
1

 
2

 
2

Credit losses for which an other-than-temporary impairment was previously recognized
—

 
12

 
4

 
25

Reductions for securities sold during the period (realized)
—

 
(125
)
 
(23
)
 
(148
)
Ending balance
$
159

 
$
182

 
$
159

 
$
182


 
The change in net unrealized securities gains (losses) in other comprehensive income (loss) includes three components, net of tax: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit other-than-temporary impairment losses to credit losses; and (iii) other items primarily consisting of adjustments in asset and liability balances, such as DAC, deferred sales inducement costs (“DSIC”), benefit reserves and reinsurance recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates.
 
The following table presents a rollforward of the net unrealized securities gains (losses) on Available-for-Sale securities included in accumulated other comprehensive income:
 
Net Unrealized
Securities
Gains
 
Deferred
Income Tax
 
Accumulated Other
Comprehensive
Income Related
to Net Unrealized
Securities Gains
 
 
(in millions)
  
Balance at January 1, 2012
$
1,350

 
$
(467
)
 
$
883

  
Net unrealized securities gains arising during the period (1)
959

 
(344
)
 
615

  
Reclassification of net securities losses included in net income
75

 
(26
)
 
49

  
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables
(268
)
 
94

 
(174
)
 
Balance at September 30, 2012
$
2,116

 
$
(743
)
 
$
1,373

(2) 
 
 
 
 
 
 
 
Balance at January 1, 2013
$
2,017

 
$
(705
)
 
$
1,312

  
Net unrealized securities losses arising during the period (1)
(1,326
)
 
457

 
(869
)
 
Reclassification of net securities gains included in net income
(7
)
 
2

 
(5
)
 
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables
436

 
(153
)
 
283

  
Balance at September 30, 2013
$
1,120

 
$
(399
)
 
$
721

(2) 
(1) Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period.
(2) Includes $11 million and $27 million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at September 30, 2013 and 2012, respectively.
 
Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in earnings were as follows:
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
 
2013
 
2012
 
2013
 
2012
 
(in millions)
Gross realized gains
$
8

 
$
11

 
$
15

 
$
19

Gross realized losses
—

 
(64
)
 
(2
)
 
(65
)
Other-than-temporary impairments
(1
)
 
(15
)
 
(6
)
 
(29
)
Total
$
7

 
$
(68
)
 
$
7

 
$
(75
)

 
Other-than-temporary impairments for the three months and nine months ended September 30, 2013 and 2012 primarily related to credit losses on non-agency residential mortgage backed securities.
 
Available-for-Sale securities by contractual maturity at September 30, 2013 were as follows:
 
Amortized Cost
 
Fair Value
 
(in millions)
Due within one year
$
1,498

 
$
1,520

Due after one year through five years
6,125

 
6,533

Due after five years through 10 years
6,306

 
6,731

Due after 10 years
4,635

 
5,146

 
18,564

 
19,930

Residential mortgage backed securities
5,895

 
5,943

Commercial mortgage backed securities
2,612

 
2,770

Asset backed securities
1,377

 
1,425

Common stocks
7

 
16

Total
$
28,455

 
$
30,084


 
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.