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Investments
 3 Months Ended
Mar. 31, 2014
Investments, Debt and Equity Securities [Abstract]  
Investments
Investments
The following is a summary of Ameriprise Financial investments:
 
March 31, 2014
 
December 31, 2013
 
(in millions)
Available-for-Sale securities, at fair value
$
30,478

 
$
30,310

Mortgage loans, net
3,487

 
3,510

Policy and certificate loans
780

 
774

Other investments
1,161

 
1,141

Total
$
35,906

 
$
35,735


The following is a summary of net investment income:
 
Three Months Ended March 31,
 
2014
 
2013
 
(in millions)
Investment income on fixed maturities
$
374

 
$
401

Net realized gains
5

 
1

Affordable housing partnerships
(6
)
 
(7
)
Other
24

 
17

Consolidated investment entities
74

 
77

Total net investment income
$
471

 
$
489

 
Available-for-Sale securities distributed by type were as follows:
 
 
March 31, 2014
Description of Securities
 
Amortized
Cost
 
Gross
Unrealized Gains
 
Gross
Unrealized Losses
 
Fair Value
 
Noncredit
OTTI (1)
 
 
(in millions)
Corporate debt securities
 
$
15,996

 
$
1,516

 
$
(48
)
 
$
17,464

 
$
3

Residential mortgage backed securities
 
6,049

 
151

 
(110
)
 
6,090

 
(29
)
Commercial mortgage backed securities
 
2,649

 
139

 
(7
)
 
2,781

 
—

Asset backed securities
 
1,474

 
54

 
(6
)
 
1,522

 
—

State and municipal obligations
 
2,182

 
166

 
(50
)
 
2,298

 
—

U.S. government and agencies obligations
 
47

 
5

 
—

 
52

 
—

Foreign government bonds and obligations
 
238

 
20

 
(6
)
 
252

 
—

Common stocks
 
7

 
12

 
—

 
19

 
5

Total
 
$
28,642

 
$
2,063

 
$
(227
)
 
$
30,478

 
$
(21
)
 
 
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
)
(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 March 31, 2014 and December 31, 2013, investment securities with a fair value of $2.1 billion and $2.3 billion, respectively, were pledged to meet contractual obligations under derivative contracts and repurchase agreements.
At March 31, 2014 and December 31, 2013, 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 March 31, 2014 and December 31, 2013, the Company’s internal analysts rated $1.3 billion and $1.4 billion, respectively, of securities using criteria similar to those used by NRSROs.
A summary of fixed maturity securities by rating was as follows:
 
 
March 31, 2014
 
December 31, 2013
Ratings
 
Amortized Cost
 
Fair Value
 
Percent of Total
Fair Value
 
Amortized Cost
 
Fair Value
 
Percent of Total
Fair Value
 
 
(in millions, except percentages)
AAA
 
$
7,446

 
$
7,664

 
25
%
 
$
7,562

 
$
7,746

 
25
%
AA
 
1,572

 
1,740

 
6

 
1,587

 
1,707

 
6

A
 
6,385

 
6,838

 
22

 
6,381

 
6,738

 
22

BBB
 
11,382

 
12,388

 
41

 
11,427

 
12,272

 
41

Below investment grade
 
1,850

 
1,829

 
6

 
1,875

 
1,829

 
6

Total fixed maturities
 
$
28,635

 
$
30,459

 
100
%
 
$
28,832

 
$
30,292

 
100
%

At March 31, 2014 and December 31, 2013, approximately 46% and 45%, 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:
 
 
March 31, 2014
 
 
Less than 12 months
 
12 months or more
 
Total
Description of Securities
 
Number of
Securities
 
Fair
Value
 
Unrealized
Losses
 
Number of
Securities
 
Fair
Value
 
Unrealized
Losses
 
Number of
Securities
 
Fair
Value
 
Unrealized
Losses
 
 
(in millions, except number of securities)
Corporate debt securities
134

 
$
1,834

 
$
(35
)
 
13

 
$
232

 
$
(13
)
 
147

 
$
2,066

 
$
(48
)
Residential mortgage backed securities
102

 
1,874

 
(39
)
 
127

 
884

 
(71
)
 
229

 
2,758

 
(110
)
Commercial mortgage backed securities
24

 
265

 
(5
)
 
2

 
21

 
(2
)
 
26

 
286

 
(7
)
Asset backed securities
36

 
434

 
(4
)
 
5

 
61

 
(2
)
 
41

 
495

 
(6
)
State and municipal obligations
87

 
250

 
(12
)
 
22

 
133

 
(38
)
 
109

 
383

 
(50
)
Foreign government bonds and obligations
21

 
65

 
(6
)
 
1

 
1

 
—

 
22

 
66

 
(6
)
Total
404

 
$
4,722

 
$
(101
)
 
170

 
$
1,332

 
$
(126
)
 
574

 
$
6,054

 
$
(227
)
 
 
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
)

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 Available-for-Sale securities for which a portion of the securities’ total other-than-temporary impairments was recognized in other comprehensive income (loss):
 
Three Months Ended March 31,
 
2014
 
2013
 
(in millions)
Beginning balance
$
147

 
$
176

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

 
2

Reductions for securities sold during the period (realized)
—

 
(13
)
Ending balance
$
147

 
$
165


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 deferred acquisition costs (“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 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, 2013
$
2,017

 
$
(705
)
 
$
1,312

  
Net unrealized securities losses arising during the period (1)
(216
)
 
75

 
(141
)
  
Reclassification of net securities gains included in net income
(1
)
 
—

 
(1
)
  
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables
98

 
(34
)
 
64

 
Balance at March 31, 2013
$
1,898

 
$
(664
)
 
$
1,234

(2) 
 
 
 
 
 
 
 
Balance at January 1, 2014
$
1,016

 
$
(361
)
 
$
655

  
Net unrealized securities gains arising during the period (1)
370

 
(131
)
 
239

 
Reclassification of net securities gains included in net income
(5
)
 
2

 
(3
)
 
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables
(140
)
 
49

 
(91
)
  
Balance at March 31, 2014
$
1,241

 
$
(441
)
 
$
800

(2) 
(1) Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period.
(2) Includes $1 million and $11 million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at March 31, 2014 and 2013, 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 March 31,
 
2014
 
2013
 
(in millions)
Gross realized gains
$
7

 
$
4

Gross realized losses
(1
)
 
—

Other-than-temporary impairments
(1
)
 
(3
)
Total
$
5

 
$
1


Other-than-temporary impairments for the three months ended March 31, 2014 primarily related to the Company’s decision to sell a corporate debt security and credit losses on non-agency residential mortgage backed securities. Other-than-temporary impairments for the three months ended March 31, 2013 primarily related to credit losses on non-agency residential mortgage backed securities.
Available-for-Sale securities by contractual maturity at March 31, 2014 were as follows:
 
Amortized Cost
 
Fair Value
 
(in millions)
Due within one year
$
1,525

 
$
1,549

Due after one year through five years
6,536

 
7,069

Due after five years through 10 years
5,678

 
5,998

Due after 10 years
4,724

 
5,450

 
18,463

 
20,066

Residential mortgage backed securities
6,049

 
6,090

Commercial mortgage backed securities
2,649

 
2,781

Asset backed securities
1,474

 
1,522

Common stocks
7

 
19

Total
$
28,642

 
$
30,478


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.