Fair Values of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2014

Schedule 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 of Ameriprise Financial measured at fair value on a recurring basis:



	June 30, 2014
	Level 1		Level 2		Level 3			Total
	(in millions)
Assets
Cash equivalents	$	44	$	1,615	$	—		$	1,659
Available-for-Sale securities:
Corporate debt securities	—		15,846		1,565			17,411
Residential mortgage backed securities	—		5,944		214			6,158
Commercial mortgage backed securities	—		2,753		15			2,768
Asset backed securities	—		1,321		185			1,506
State and municipal obligations	—		2,317		—			2,317
U.S. government and agencies obligations	12		35		—			47
Foreign government bonds and obligations	—		258		—			258
Common stocks	6		9		6			21
Total Available-for-Sale securities	18		28,483		1,985			30,486
Trading securities	52		31		1			84
Separate account assets	—		84,027		—			84,027
Other assets:
Interest rate derivative contracts	—		1,670		—			1,670
Equity derivative contracts	298		1,432		—			1,730
Credit derivative contracts	—		—		—			—
Foreign exchange contracts	2		3		—			5
Other derivative contracts	—		—		1			1
Total other assets	300		3,105		1			3,406
Total assets at fair value	$	414	$	117,261	$	1,987		$	119,662
Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives	$	—	$	5	$	—		$	5
IUL embedded derivatives	—		—		184			184
GMWB and GMAB embedded derivatives	—		—		(347		)	(347		)	⁽²⁾
Total policyholder account balances, future policy benefits and claims	—		5		(163		)	(158		)	⁽¹⁾
Customer deposits	—		6		—			6
Other liabilities:
Interest rate derivative contracts	—		1,306		—			1,306
Equity derivative contracts	464		2,363		—			2,827
Foreign exchange contracts	1		—		—			1
Other derivative contracts	—		141		—			141
Other	—		10		—			10
Total other liabilities	465		3,820		—			4,285
Total liabilities at fair value	$	465	$	3,831	$	(163	)	$	4,133

⁽¹⁾ The Company’s adjustment for nonperformance risk resulted in a $162 million cumulative increase to the embedded derivatives.

⁽²⁾The fair value of the GMWB and GMAB embedded derivatives was a net asset at June 30, 2014 and the amount is reported as a contra liability.



	December 31, 2013
	Level 1		Level 2		Level 3			Total
	(in millions)
Assets
Cash equivalents	$	12	$	1,841	$	—		$	1,853
Available-for-Sale securities:
Corporate debt securities	—		15,826		1,640			17,466
Residential mortgage backed securities	—		5,937		187			6,124
Commercial mortgage backed securities	—		2,711		30			2,741
Asset backed securities	—		1,244		260			1,504
State and municipal obligations	—		2,160		—			2,160
U.S. government and agencies obligations	17		35		—			52
Foreign government bonds and obligations	—		245		—			245
Common stocks	5		7		6			18
Total Available-for-Sale securities	22		28,165		2,123			30,310
Trading securities	3		32		2			37
Separate account assets	—		81,223		—			81,223
Other assets:
Interest rate derivative contracts	—		1,566		—			1,566
Equity derivative contracts	265		1,576		—			1,841
Credit derivative contracts	—		3		—			3
Foreign exchange contracts	2		2		—			4
Other derivative contracts	—		4		—			4
Total other assets	267		3,151		—			3,418
Total assets at fair value	$	304	$	114,412	$	2,125		$	116,841
Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives	$	—	$	5	$	—		$	5
IUL embedded derivatives	—		—		125			125
GMWB and GMAB embedded derivatives	—		—		(575		)	(575		)	⁽²⁾
Total policyholder account balances, future policy benefits and claims	—		5		(450		)	(445		)	⁽¹⁾
Customer deposits	—		7		—			7
Other liabilities:
Interest rate derivative contracts	—		1,672		—			1,672
Equity derivative contracts	550		2,447		—			2,997
Other derivative contracts	—		139		—			139
Other	—		12		—			12
Total other liabilities	550		4,270		—			4,820
Total liabilities at fair value	$	550	$	4,282	$	(450	)	$	4,382

⁽¹⁾The Company’s adjustment for nonperformance risk resulted in a $150 million cumulative increase to the embedded derivatives.

⁽²⁾The fair value of the GMWB and GMAB embedded derivatives was a net asset at December 31, 2013 and the amount is reported as a contra liability.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]



	Available-for-Sale Securities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Common Stocks		Total				Trading Securities			Other Derivative Contracts
	(in millions)
Balance, April 1, 2014	$	1,566		$	87		$	75		$	206		$	6	$	1,940			$	2		$	—
Total gains (losses) included in:
Net income	(1		)	—			—			1			—		—			⁽¹⁾	—			—
Other comprehensive income	12			—			—			—			—		12				—			—
Purchases	46			136			—			—			—		182				1			1
Sales	—			—			—			—			—		—				(2		)	—
Settlements	(58		)	(9		)	—			(2		)	—		(69		)		—			—
Transfers out of Level 3	—			—			(60		)	(20		)	—		(80		)		—			—
Balance, June 30, 2014	$	1,565		$	214		$	15		$	185		$	6	$	1,985			$	1		$	1

Changes in unrealized losses relating to assets held at June 30, 2014 included in:
Net investment income	$	(1	)	$	—		$	—		$	—		$	—	$	(1	)		$	—		$	—

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



	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, April 1, 2014	$	154			$	(471	)		$	(317	)
Total losses included in:
Net income	8			⁽¹⁾	68			⁽²⁾	76
Issues	24				60				84
Settlements	(2		)		(4		)		(6		)
Balance, June 30, 2014	$	184			$	(347	)		$	(163	)

Changes in unrealized losses relating to liabilities held at June 30, 2014 included in:
Interest credited to fixed accounts	$	8			$	—			$	8
Benefits, claims, losses and settlement expenses	—				67				67

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

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



	Available-for-Sale Securities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Common Stocks		Total
	(in millions)
Balance, April 1, 2013	$	1,764		$	8		$	204		$	321		$	5	$	2,302
Total gains (losses) included in:
Net income	(1		)	—			—			—			—		(1		)	⁽¹⁾
Other comprehensive loss	(37		)	—			(4		)	2			—		(39		)
Purchases	20			62			10			32			—		124
Settlements	(79		)	(1		)	—			(1		)	—		(81		)
Transfers into Level 3	—			—			—			8			—		8
Transfers out of Level 3	—			—			—			(148		)	—		(148		)
Balance, June 30, 2013	$	1,667		$	69		$	210		$	214		$	5	$	2,165

Changes in unrealized losses relating to assets held at June 30, 2013 included in:
Net investment income	$	(1	)	$	—		$	—		$	—		$	—	$	(1	)

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



	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives			GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, April 1, 2013	$	61		$	266			$	327
Total (gains) losses included in:
Net income	2		⁽¹⁾	(306		)	⁽²⁾	(304		)
Issues	13			53				66
Settlements	—			(2		)		(2		)
Balance, June 30, 2013	$	76		$	11			$	87

Changes in unrealized (gains) losses relating to liabilities held at June 30, 2013 included in:
Interest credited to fixed accounts	$	2		$	—			$	2
Benefits, claims, losses and settlement expenses	—			(299		)		(299		)

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

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



	Available-for-Sale Securities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Common Stocks		Total				Trading Securities			Other Derivative Contracts
	(in millions)
Balance, January 1, 2014	$	1,640		$	187		$	30		$	260		$	6	$	2,123			$	2		$	—
Total gains (losses) included in:
Net income	(1		)	—			—			1			—		—			⁽¹⁾	—			—
Other comprehensive income	16			—			—			—			—		16				—			—
Purchases	122			218			60			21			—		421				1			1
Sales	(11		)	—			—			—			—		(11		)		(2		)	—
Settlements	(201		)	(12		)	—			(8		)	—		(221		)		—			—
Transfers out of Level 3	—			(179		)	(75		)	(89		)	—		(343		)		—			—
Balance, June 30, 2014	$	1,565		$	214		$	15		$	185		$	6	$	1,985			$	1		$	1

Changes in unrealized gains (losses) relating to assets held at June 30, 2014 included in:
Net investment income	$	(1	)	$	—		$	—		$	1		$	—	$	—			$	—		$	—

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



	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, January 1, 2014	$	125			$	(575	)		$	(450	)
Total losses included in:
Net income	14			⁽¹⁾	120			⁽²⁾	134
Issues	48				119				167
Settlements	(3		)		(11		)		(14		)
Balance, June 30, 2014	$	184			$	(347	)		$	(163	)

Changes in unrealized losses relating to liabilities held at June 30, 2014 included in:
Interest credited to fixed accounts	$	14			$	—			$	14
Benefits, claims, losses and settlement expenses	—				119				119

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

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



	Available-for-Sale Securities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Common Stocks			Total
	(in millions)
Balance, January 1, 2013	$	1,764		$	284		$	206		$	178		$	6		$	2,438
Total gains (losses) included in:
Net income	(1		)	—			—			1			—			—			⁽¹⁾
Other comprehensive loss	(37		)	—			(6		)	7			—			(36		)
Purchases	74			62			10			171			—			317
Settlements	(133		)	(1		)	—			(3		)	—			(137		)
Transfers into Level 3	—			—			—			8			—			8
Transfers out of Level 3	—			(276		)	—			(148		)	(1		)	(425		)
Balance, June 30, 2013	$	1,667		$	69		$	210		$	214		$	5		$	2,165

Changes in unrealized gains (losses) relating to assets held at June 30, 2013 included in:
Net investment income	$	(1	)	$	—		$	—		$	1		$	—		$	—

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



	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives			GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, January 1, 2013	$	45		$	833			$	878
Total (gains) losses included in:
Net income	6		⁽¹⁾	(924		)	⁽²⁾	(918		)
Issues	25			103				128
Settlements	—			(1		)		(1		)
Balance, June 30, 2013	$	76		$	11			$	87

Changes in unrealized (gains) losses relating to liabilities held at June 30, 2013 included in:
Interest credited to fixed accounts	$	6		$	—			$	6
Benefits, claims, losses and settlement expenses	—			(908		)		(908		)

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

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

Significant unobservable inputs used in the fair value measurements [Table Text Block]

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



	June 30, 2014
	Fair Value			Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	1,519		Discounted cash flow	Yield/spread to U.S. Treasuries	0.8	%	–	4.7%	1.2%
Other derivative contracts	$	1		Option pricing model	Correlation ⁽¹⁾	(40.0)%
IUL embedded derivatives	$	184		Discounted cash flow	Nonperformance risk ⁽²⁾	56			bps
GMWB and GMAB embedded derivatives	$	(347	)	Discounted cash flow	Utilization of guaranteed withdrawals⁽³⁾	0.0	%	–	51.1%
					Surrender rate	0.1	%	–	57.9%
					Market volatility⁽⁴⁾	4.6	%	–	17.2%
					Nonperformance risk⁽²⁾	56			bps
					Elective contractholder strategy allocations ⁽⁵⁾	0.0	%	–	50.0%



	December 31, 2013
	Fair Value			Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	1,589		Discounted cash flow	Yield/spread to U.S. Treasuries	0.9	%	–	5.3%	1.5%
IUL embedded derivatives	$	125		Discounted cash flow	Nonperformance risk⁽²⁾	74			bps
GMWB and GMAB embedded derivatives	$	(575	)	Discounted cash flow	Utilization of guaranteed withdrawals⁽³⁾	0.0	%	–	51.1%
					Surrender rate	0.1	%	–	57.9%
					Market volatility⁽⁴⁾	4.9	%	–	18.8%
					Nonperformance risk⁽²⁾	74			bps
					Elective contractholder strategy allocations⁽⁵⁾	0.0	%	–	50.0%


⁽¹⁾	Represents the correlation between equity returns and interest rates used in the valuation of the derivative contract.

⁽²⁾ The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives.

⁽³⁾ The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year.

⁽⁴⁾ Market volatility is implied volatility of fund of funds and managed volatility funds.

⁽⁵⁾ The elective allocation represents the percentage of contractholders that are assumed to electively switch their investment allocation to a different allocation model.

Schedule of carrying value and estimated fair value of financial instruments [Table Text Block]

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



	June 30, 2014
	Carrying Value		Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Total
	(in millions)
Financial Assets
Mortgage loans, net	$	3,474	$	—	$	—	$	3,511	$	3,511
Policy and certificate loans	792		—		1		779		780
Receivables	1,367		223		1,129		6		1,358
Restricted and segregated cash	2,344		2,344		—		—		2,344
Other investments and assets	459		—		404		56		460
Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	13,424	$	—	$	—	$	14,195	$	14,195
Investment certificate reserves	4,177		—		—		4,175		4,175
Brokerage customer deposits	3,110		3,110		—		—		3,110
Separate account liabilities	4,511		—		4,511		—		4,511
Debt and other liabilities	3,041		290		2,918		107		3,315



	December 31, 2013
	Carrying Value		Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Total
	(in millions)
Financial Assets
Mortgage loans, net	$	3,510	$	—	$	—	$	3,490	$	3,490
Policy and certificate loans	774		—		1		765		766
Receivables	1,141		107		1,026		8		1,141
Restricted and segregated cash	2,360		2,360		—		—		2,360
Other investments and assets	440		—		368		73		441
Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	14,106	$	—	$	—	$	14,724	$	14,724
Investment certificate reserves	3,977		—		—		3,982		3,982
Brokerage customer deposits	3,088		3,088		—		—		3,088
Separate account liabilities	4,007		—		4,007		—		4,007
Debt and other liabilities	3,416		137		3,372		134		3,643

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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