XML 100 R12.htm IDEA: XBRL DOCUMENT v2.4.0.8
Investments
 12 Months Ended
Dec. 31, 2013
Investments, Debt and Equity Securities [Abstract]  
Investments
Investments
 
The following is a summary of Ameriprise Financial investments:
 
December 31,
 
2013
 
2012
 
(in millions)
Available-for-Sale securities, at fair value
$
30,310

 
$
31,472

Mortgage loans, net
3,510

 
3,609

Policy and certificate loans
774

 
754

Other investments
1,141

 
1,042

Total
$
35,735

 
$
36,877



 The following is a summary of net investment income:
 
Years Ended December 31,
 
2013
 
2012
 
2011
 
(in millions)
Investment income on fixed maturities
$
1,575

 
$
1,768

 
$
1,917

Net realized gains
7

 
7

 
6

Affordable housing partnerships
(12
)
 
(25
)
 
(32
)
Other
99

 
73

 
64

Consolidated investment entities
220

 
110

 
91

Total net investment income
$
1,889

 
$
1,933

 
$
2,046



 Available-for-Sale securities distributed by type were as follows:
 
 
December 31, 2013
Description of Securities
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
Noncredit
OTTI (1)
 
 
(in millions)
Corporate debt securities
 
$
16,233

 
$
1,330

 
$
(97
)
 
$
17,466

 
$
3

Residential mortgage backed securities
 
6,114

 
147

 
(137
)
 
6,124

 
(33
)
Commercial mortgage backed securities
 
2,612

 
141

 
(12
)
 
2,741

 
—

Asset backed securities
 
1,459

 
53

 
(8
)
 
1,504

 
—

State and municipal obligations
 
2,132

 
106

 
(78
)
 
2,160

 
—

U.S. government and agencies obligations
 
47

 
5

 
—

 
52

 
—

Foreign government bonds and obligations
 
235

 
18

 
(8
)
 
245

 
—

Common stocks
 
7

 
11

 
—

 
18

 
4

Total
 
$
28,839

 
$
1,811

 
$
(340
)
 
$
30,310

 
$
(26
)
 
 
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.

As of December 31, 2013 and 2012, investment securities with a fair value of $2.3 billion and $1.3 billion, respectively, were pledged to meet contractual obligations under derivative contracts and repurchase agreements.

At December 31, 2013 and 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 December 31, 2013 and 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:
 
 
December 31, 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
 
$
7,562

 
$
7,746

 
25
%
 
$
7,462

 
$
8,021

 
26
%
AA
 
1,587

 
1,707

 
6

 
1,620

 
1,827

 
6

A
 
6,381

 
6,738

 
22

 
5,456

 
6,069

 
19

BBB
 
11,427

 
12,272

 
41

 
11,939

 
13,575

 
43

Below investment grade
 
1,875

 
1,829

 
6

 
2,026

 
1,967

 
6

Total fixed maturities
 
$
28,832

 
$
30,292

 
100
%
 
$
28,503

 
$
31,459

 
100
%


At December 31, 2013 and 2012, approximately 45% 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:
 
 
December 31, 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
181

 
$
2,817

 
$
(83
)
 
12

 
$
181

 
$
(14
)
 
193

 
$
2,998

 
$
(97
)
Residential mortgage backed securities
128

 
2,393

 
(66
)
 
113

 
663

 
(71
)
 
241

 
3,056

 
(137
)
Commercial mortgage backed securities
35

 
426

 
(10
)
 
4

 
22

 
(2
)
 
39

 
448

 
(12
)
Asset backed securities
40

 
531

 
(7
)
 
4

 
32

 
(1
)
 
44

 
563

 
(8
)
State and municipal obligations
169

 
468

 
(36
)
 
14

 
117

 
(42
)
 
183

 
585

 
(78
)
Foreign government bonds and obligations
23

 
77

 
(8
)
 
—

 
—

 
—

 
23

 
77

 
(8
)
Total
576

 
$
6,712

 
$
(210
)
 
147

 
$
1,015

 
$
(130
)
 
723

 
$
7,727

 
$
(340
)
 
 
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):
 
 
December 31,
 
 
2013
 
2012
 
2011
 
 
(in millions)
Beginning balance
 
$
176

 
$
303

 
$
297

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

 
2

 
15

Credit losses for which an other-than-temporary impairment was previously recognized
 
7

 
32

 
19

Reductions for securities sold during the period (realized)
 
(38
)
 
(161
)
 
(28
)
Ending balance
 
$
147

 
$
176

 
$
303


 
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, 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 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, 2011
 
$
1,077

 
$
(377
)
 
$
700

 
Net unrealized securities gains arising during the period (1)
 
572

 
(196
)
 
376

  
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables
 
(299
)
 
106

 
(193
)
 
Balance at December 31, 2011
 
1,350

 
(467
)
 
883

(2) 
Net unrealized securities gains arising during the period (1)
 
911

 
(323
)
 
588

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

 
(5
)
  
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables
 
(237
)
 
83

 
(154
)
 
Balance at December 31, 2012
 
2,017

 
(705
)
 
1,312

(2) 
Net unrealized securities losses arising during the period (1)
 
(1,484
)
 
513

 
(971
)
 
Reclassification of net securities gains included in net income
 
(7
)
 
2

 
(5
)
 
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables
 
490

 
(171
)
 
319

  
Balance at December 31, 2013
 
$
1,016

 
$
(361
)
 
$
655

(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 $4 million, $18 million and $75 million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at December 31, 2013, 2012 and 2011, respectively.
 
Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in earnings were as follows:
 
 
Years Ended December 31,
 
 
2013
 
2012
 
2011
 
 
(in millions)
Gross realized gains
 
$
17

 
$
109

 
$
52

Gross realized losses
 
(1
)
 
(65
)
 
(18
)
Other-than-temporary impairments
 
(9
)
 
(37
)
 
(34
)
Total
 
$
7

 
$
7

 
$
—


 
Other-than-temporary impairments for the years ended December 31, 2013, 2012 and 2011 primarily related to credit losses on non-agency residential mortgage backed securities.
 
Available-for-Sale securities by contractual maturity at December 31, 2013, were as follows:
 
 
Amortized Cost
 
Fair Value
 
 
(in millions)
Due within one year
 
$
1,448

 
$
1,470

Due after one year through five years
 
5,918

 
6,317

Due after five years through 10 years
 
6,591

 
6,963

Due after 10 years
 
4,690

 
5,173

 
 
18,647

 
19,923

Residential mortgage backed securities
 
6,114

 
6,124

Commercial mortgage backed securities
 
2,612

 
2,741

Asset backed securities
 
1,459

 
1,504

Common stocks
 
7

 
18

Total
 
$
28,839

 
$
30,310



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.