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Investments
 9 Months Ended
Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]  
Investments [Text Block]
Investments
The following is a summary of Ameriprise Financial investments:
 
September 30, 2015
 
December 31, 2014
 
(in millions)
Available-for-Sale securities, at fair value
$
29,286

 
$
30,027

Mortgage loans, net
3,382

 
3,440

Policy and certificate loans
824

 
806

Other investments
1,254

 
1,309

Total
$
34,746

 
$
35,582


The following is a summary of net investment income:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2015
 
2014
 
2015
 
2014
 
(in millions)
Investment income on fixed maturities
$
346

 
$
365

 
$
1,055

 
$
1,114

Net realized gains (losses)
(10
)
 
4

 
5

 
10

Affordable housing partnerships
(7
)
 
(8
)
 
(25
)
 
(20
)
Other
(10
)
 
26

 
32

 
70

Consolidated investment entities
2

 
41

 
161

 
158

Total net investment income
$
321

 
$
428

 
$
1,228

 
$
1,332

 
Available-for-Sale securities distributed by type were as follows:
 
 
September 30, 2015
Description of Securities
 
Amortized
Cost
 
Gross
Unrealized Gains
 
Gross
Unrealized Losses
 
Fair Value
 
Noncredit
OTTI (1)
 
 
(in millions)
Corporate debt securities
 
$
15,931

 
$
1,135

 
$
(168
)
 
$
16,898

 
$
3

Residential mortgage backed securities
 
5,925

 
136

 
(53
)
 
6,008

 
(13
)
Commercial mortgage backed securities
 
2,395

 
107

 
(3
)
 
2,499

 
—

Asset backed securities
 
1,259

 
48

 
(5
)
 
1,302

 
—

State and municipal obligations
 
2,083

 
204

 
(28
)
 
2,259

 
—

U.S. government and agencies obligations
 
69

 
3

 
—

 
72

 
—

Foreign government bonds and obligations
 
223

 
18

 
(11
)
 
230

 
—

Common stocks
 
8

 
11

 
(1
)
 
18

 
5

Total
 
$
27,893

 
$
1,662

 
$
(269
)
 
$
29,286

 
$
(5
)
 
 
December 31, 2014
Description of Securities
 
Amortized
Cost
 
Gross
Unrealized Gains
 
Gross
Unrealized Losses
 
Fair Value
 
Noncredit
OTTI (1)
 
 
(in millions)
Corporate debt securities
 
$
15,742

 
$
1,482

 
$
(59
)
 
$
17,165

 
$
3

Residential mortgage backed securities
 
6,099

 
168

 
(60
)
 
6,207

 
(15
)
Commercial mortgage backed securities
 
2,513

 
120

 
(3
)
 
2,630

 
—

Asset backed securities
 
1,417

 
59

 
(6
)
 
1,470

 
—

State and municipal obligations
 
2,008

 
257

 
(26
)
 
2,239

 
—

U.S. government and agencies obligations
 
43

 
4

 
—

 
47

 
—

Foreign government bonds and obligations
 
236

 
21

 
(6
)
 
251

 
—

Common stocks
 
8

 
10

 
—

 
18

 
5

Total
 
$
28,066

 
$
2,121

 
$
(160
)
 
$
30,027

 
$
(7
)
(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, 2015 and December 31, 2014, investment securities with a fair value of $0.9 billion and $1.3 billion, respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $398 million and $769 million, respectively, may be sold, pledged or rehypothecated by the counterparty.
At both September 30, 2015 and December 31, 2014, fixed maturity securities comprised approximately 84% 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 both September 30, 2015 and December 31, 2014, the Company’s internal analysts rated $1.4 billion of securities using criteria similar to those used by NRSROs.
A summary of fixed maturity securities by rating was as follows:
 
 
September 30, 2015
 
December 31, 2014
Ratings
 
Amortized Cost
 
Fair Value
 
Percent of Total
Fair Value
 
Amortized Cost
 
Fair Value
 
Percent of Total
Fair Value
 
 
(in millions, except percentages)
AAA
 
$
7,052

 
$
7,282

 
25
%
 
$
7,500

 
$
7,776

 
26
%
AA
 
1,696

 
1,902

 
6

 
1,581

 
1,799

 
6

A
 
5,468

 
5,935

 
20

 
6,028

 
6,668

 
22

BBB
 
12,175

 
12,735

 
44

 
11,187

 
12,025

 
40

Below investment grade
 
1,494

 
1,414

 
5

 
1,762

 
1,741

 
6

Total fixed maturities
 
$
27,885

 
$
29,268

 
100
%
 
$
28,058

 
$
30,009

 
100
%

At September 30, 2015 and December 31, 2014, approximately 54% and 52%, 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, 2015
 
 
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
262

 
$
3,645

 
$
(133
)
 
32

 
$
301

 
$
(35
)
 
294

 
$
3,946

 
$
(168
)
Residential mortgage backed securities
85

 
1,190

 
(7
)
 
152

 
1,330

 
(46
)
 
237

 
2,520

 
(53
)
Commercial mortgage backed securities
23

 
234

 
(2
)
 
4

 
50

 
(1
)
 
27

 
284

 
(3
)
Asset backed securities
27

 
221

 
(2
)
 
14

 
253

 
(3
)
 
41

 
474

 
(5
)
State and municipal obligations
61

 
180

 
(3
)
 
3

 
102

 
(25
)
 
64

 
282

 
(28
)
Foreign government bonds and obligations
8

 
46

 
(2
)
 
14

 
23

 
(9
)
 
22

 
69

 
(11
)
Common stocks
3

 
1

 
(1
)
 
—

 
—

 
—

 
3

 
1

 
(1
)
Total
469

 
$
5,517

 
$
(150
)
 
219

 
$
2,059

 
$
(119
)
 
688

 
$
7,576

 
$
(269
)
 
 
December 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
182

 
$
2,165

 
$
(41
)
 
40

 
$
689

 
$
(18
)
 
222

 
$
2,854

 
$
(59
)
Residential mortgage backed securities
73

 
879

 
(7
)
 
138

 
1,387

 
(53
)
 
211

 
2,266

 
(60
)
Commercial mortgage backed securities
15

 
173

 
—

 
12

 
131

 
(3
)
 
27

 
304

 
(3
)
Asset backed securities
17

 
201

 
(2
)
 
14

 
238

 
(4
)
 
31

 
439

 
(6
)
State and municipal obligations
11

 
29

 
(1
)
 
10

 
115

 
(25
)
 
21

 
144

 
(26
)
Foreign government bonds and obligations
4

 
10

 
(1
)
 
14

 
27

 
(5
)
 
18

 
37

 
(6
)
Total
302

 
$
3,457

 
$
(52
)
 
228

 
$
2,587

 
$
(108
)
 
530

 
$
6,044

 
$
(160
)

As part of Ameriprise Financial’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities is primarily attributable to a widening of credit spreads.
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 September 30,
 
Nine Months Ended September 30,
 
2015
 
2014
 
2015
 
2014
 
(in millions)
Beginning balance
$
85

 
$
148

 
$
98

 
$
147

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

 
—

 
1

 
1

Reductions for securities sold during the period (realized)
—

 
(50
)
 
(14
)
 
(50
)
Ending balance
$
85

 
$
98

 
$
85

 
$
98


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 adjustments primarily consisting of changes in insurance and annuity asset and liability balances, such as deferred acquisition costs (“DAC”), deferred sales inducement costs (“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 table presents a rollforward of the net unrealized securities gains on Available-for-Sale securities included in AOCI:
 
Net Unrealized
Securities Gains
 
Deferred
Income Tax
 
AOCI Related to 
Net Unrealized
Securities Gains
 
 
(in millions)
  
Balance at January 1, 2014
$
1,016

 
$
(361
)
 
$
655

  
Net unrealized securities gains arising during the period (1)
526

 
(185
)
 
341

  
Reclassification of net securities gains included in net income
(12
)
 
4

 
(8
)
 
Impact of other adjustments
(258
)
 
90

 
(168
)
 
Balance at September 30, 2014
$
1,272

 
$
(452
)
 
$
820

(2) 
 
 
 
 
 
 
 
Balance at January 1, 2015
$
1,216

 
$
(430
)
 
$
786

  
Net unrealized securities losses arising during the period (1)
(562
)
 
197

 
(365
)
 
Reclassification of net securities gains included in net income
(6
)
 
2

 
(4
)
 
Impact of other adjustments
281

 
(98
)
 
183

  
Balance at September 30, 2015
$
929

 
$
(329
)
 
$
600

(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 $6 million and $5 million of noncredit related impairments on securities and net unrealized securities gains on previously impaired securities at September 30, 2015 and 2014, 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,
 
2015
 
2014
 
2015
 
2014
 
(in millions)
Gross realized gains
$
1

 
$
12

 
$
24

 
$
23

Gross realized losses
(4
)
 
(1
)
 
(10
)
 
(5
)
Other-than-temporary impairments
(7
)
 
(5
)
 
(8
)
 
(6
)
Total
$
(10
)
 
$
6

 
$
6

 
$
12


Other-than-temporary impairments for the three months and nine months ended September 30, 2015 primarily related to credit losses on corporate debt securities. Other-than-temporary impairments for the three months and nine months ended September 30, 2014 primarily related to credit losses on corporate debt securities and non-agency residential mortgage backed securities.
Available-for-Sale securities by contractual maturity at September 30, 2015 were as follows:
 
Amortized Cost
 
Fair Value
 
(in millions)
Due within one year
$
1,834

 
$
1,853

Due after one year through five years
6,570

 
6,985

Due after five years through 10 years
5,313

 
5,397

Due after 10 years
4,589

 
5,224

 
18,306

 
19,459

Residential mortgage backed securities
5,925

 
6,008

Commercial mortgage backed securities
2,395

 
2,499

Asset backed securities
1,259

 
1,302

Common stocks
8

 
18

Total
$
27,893

 
$
29,286


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.