Fair Value of Assets and Liabilities Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of balances 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:



	December 31, 2017
	Level 1		Level 2		Level 3			Total
	(in millions)
Assets
Cash equivalents	$	147	$	2,025	$	—		$	2,172
Available-for-Sale securities:
Corporate debt securities	—		13,936		1,139			15,075
Residential mortgage backed securities	—		6,456		155			6,611
Commercial mortgage backed securities	—		4,374		—			4,374
Asset backed securities	—		1,573		7			1,580
State and municipal obligations	—		2,463		—			2,463
U.S. government and agency obligations	503		—		—			503
Foreign government bonds and obligations	—		314		—			314
Common stocks	1		—		—			1
Common stocks measured at net asset value (“NAV”)								6			⁽¹⁾
Total Available-for-Sale securities	504		29,116		1,301			30,927
Trading securities	10		34		—			44
Separate account assets at NAV								87,368			⁽¹⁾
Investments segregated for regulatory purposes	623		—		—			623
Other assets:
Interest rate derivative contracts	—		1,104		—			1,104
Equity derivative contracts	63		2,360		—			2,423
Foreign exchange derivative contracts	2		34		—			36
Total other assets	65		3,498		—			3,563
Total assets at fair value	$	1,349	$	34,673	$	1,301		$	124,697

Liabilities
Policyholder account balances, future policy benefits and claims:
Indexed annuity embedded derivatives	$	—	$	5	$	—		$	5
IUL embedded derivatives	—		—		601			601
GMWB and GMAB embedded derivatives	—		—		(49		)	(49		)	⁽²⁾
Total policyholder account balances, future policy benefits and claims	—		5		552			557			⁽³⁾
Customer deposits	—		10		—			10
Other liabilities:
Interest rate derivative contracts	1		415		—			416
Equity derivative contracts	7		2,876		—			2,883
Credit derivative contracts	—		2		—			2
Foreign exchange derivative contracts	4		23		—			27
Other	9		6		28			43
Total other liabilities	21		3,322		28			3,371
Total liabilities at fair value	$	21	$	3,337	$	580		$	3,938



	December 31, 2016
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Cash equivalents	$	30	$	1,796	$	—	$	1,826
Available-for-Sale securities:
Corporate debt securities	—		14,925		1,311		16,236
Residential mortgage backed securities	—		6,650		268		6,918
Commercial mortgage backed securities	—		3,367		—		3,367
Asset backed securities	—		1,481		68		1,549
State and municipal obligations	—		2,358		—		2,358
U.S. government and agency obligations	8		—		—		8
Foreign government bonds and obligations	—		261		—		261
Common stocks	8		8		1		17
Common stocks at NAV							5		⁽¹⁾
Total Available-for-Sale securities	16		29,050		1,648		30,719
Trading securities	9		16		—		25
Separate account assets at NAV							80,210		⁽¹⁾
Investments segregated for regulatory purposes	425		—		—		425
Other assets:
Interest rate derivative contracts	—		1,778		—		1,778
Equity derivative contracts	43		1,531		—		1,574
Credit derivative contracts	—		1		—		1
Foreign exchange derivative contracts	13		80		—		93
Total other assets	56		3,390		—		3,446
Total assets at fair value	$	536	$	34,252	$	1,648	$	116,651

Liabilities
Policyholder account balances, future policy benefits and claims:
Indexed annuity embedded derivatives	$	—	$	5	$	—	$	5
IUL embedded derivatives	—		—		464		464
GMWB and GMAB embedded derivatives	—		—		614		614		⁽⁴⁾
Total policyholder account balances, future policy benefits and claims	—		5		1,078		1,083		⁽⁵⁾
Customer deposits	—		8		—		8
Other liabilities:
Interest rate derivative contracts	2		987		—		989
Equity derivative contracts	3		2,132		—		2,135
Foreign exchange derivative contracts	2		45		—		47
Other	3		8		13		24
Total other liabilities	10		3,172		13		3,195
Total liabilities at fair value	$	10	$	3,185	$	1,091	$	4,286

⁽¹⁾Amounts are comprised of certain financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy.

⁽²⁾The fair value of the GMWB and GMAB embedded derivatives included $443 million of individual contracts in a liability position and $492 million of individual contracts in an asset position at December 31, 2017.

⁽³⁾ The Company’s adjustment for nonperformance risk resulted in a $(399) million cumulative increase (decrease) to the embedded derivatives at December 31, 2017.

⁽⁴⁾The fair value of the GMWB and GMAB embedded derivatives included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position at December 31, 2016.

⁽⁵⁾The Company’s adjustment for nonperformance risk resulted in a $(498) million cumulative increase (decrease) to the embedded derivatives at December 31, 2016.

Summary of changes in level 3 assets and liabilities measured at fair value on a recurring basis [Table Text Block]

The following tables provide a summary of changes in Level 3 assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis:



	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, 2017	$	1,311		$	268		$	—		$	68		$	1		$	1,648
Total gains (losses) included in:
Net income	—			—			—			—			1			1			⁽¹⁾
Other comprehensive income (loss)	(8		)	1			—			(4		)	—			(11		)
Purchases	138			132			65			64			—			399
Sales	—			—			—			—			(1		)	(1		)
Settlements	(302		)	(43		)	—			(29		)	—			(374		)
Transfers into Level 3	—			20			—			27			8			55
Transfers out of Level 3	—			(223		)	(65		)	(119		)	(9		)	(416		)
Balance, December 31, 2017	$	1,139		$	155		$	—		$	7		$	—		$	1,301

Changes in unrealized gains (losses) relating to assets held at December 31, 2017	$	—		$	—		$	—		$	(1	)	$	—		$	(1	)	⁽¹⁾



	Policyholder Account Balances, Future Policy Benefits and Claims											Other Liabilities
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total			Other Liabilities
	(in millions)
Balance, January 1, 2017	$	464			$	614			$	1,078		$	13
Total (gains) losses included in:
Net income	87			⁽²⁾	(977		)	⁽³⁾	(890		)	2		⁽⁴⁾
Issues	92				326				418			13
Settlements	(42		)		(12		)		(54		)	—
Balance, December 31, 2017	$	601			$	(49	)		$	552		$	28

Changes in unrealized (gains) losses relating to liabilities held at December 31, 2017	$	87		⁽²⁾	$	(946	)	⁽³⁾	$	(859	)	$	—



	Available-for-Sale Securities																		Other Derivative Contracts
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Common Stocks		Total				Other Derivative Contracts
	(in millions)
Balance, January 1, 2016	$	1,425		$	218		$	3		$	162		$	—	$	1,808			$	—
Cumulative effect of change in accounting policies	—			—			—			21			—		21				—
Total gains (losses) included in:
Net income	(1		)	1			—			(1		)	—		(1		)	⁽¹⁾	(2		)	⁽³⁾
Other comprehensive income (loss)	—			(1		)	—			(4		)	—		(5		)		—
Purchases	54			209			42			58			—		363				2
Settlements	(168		)	(67		)	(3		)	(2		)	—		(240		)		—
Transfers into Level 3	1			—			—			12			1		14				—
Transfers out of Level 3	—			(92		)	(42		)	(178		)	—		(312		)		—
Balance, December 31, 2016	$	1,311		$	268		$	—		$	68		$	1	$	1,648			$	—

Changes in unrealized gains (losses) relating to assets held at December 31, 2016	$	1		$	1		$	—		$	(1	)	$	—	$	1		⁽¹⁾	$	(2	)	⁽³⁾



	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total			Other Liabilities
	(in millions)
Balance, January 1, 2016	$	364			$	851			$	1,215		$	—
Total (gains) losses included in:
Net income	13			⁽²⁾	(511		)	⁽³⁾	(498		)	—
Issues	115				295				410			13
Settlements	(28		)		(21		)		(49		)	—
Balance, December 31, 2016	$	464			$	614			$	1,078		$	13

Changes in unrealized (gains) losses relating to liabilities held at December 31, 2016	$	13		⁽²⁾	$	(448	)	⁽³⁾	$	(435	)	$	—



	Available-for-Sale Securities
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Common Stocks			Total				Trading Securities
	(in millions)
Balance, January 1, 2015	$	1,518		$	206		$	91		$	169		$	2		$	1,986			$	1
Total gains (losses) included in:
Net income	(2		)	—			—			1			—			(1		)	⁽¹⁾	(1		)	⁽¹⁾
Other comprehensive income (loss)	(21		)	(2		)	—			(2		)	—			(25		)		—
Purchases	189			334			41			72			—			636				—
Settlements	(248		)	(55		)	(7		)	(22		)	—			(332		)		—
Transfers into Level 3	—			—			6			14			—			20				—
Transfers out of Level 3	(11		)	(265		)	(128		)	(70		)	(2		)	(476		)		—
Balance, December 31, 2015	$	1,425		$	218		$	3		$	162		$	—		$	1,808			$	—

Changes in unrealized gains (losses) relating to assets held at December 31, 2015	$	(2	)	$	—		$	—		$	1		$	—		$	(1	)	⁽¹⁾	$	—



	Policyholder Account Balances, Future Policy Benefits and Claims
	IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total
	(in millions)
Balance, January 1, 2015	$	242			$	479			$	721
Total (gains) losses included in:
Net income	27			⁽²⁾	105			⁽³⁾	132
Issues	114				271				385
Settlements	(19		)		(4		)		(23		)
Balance, December 31, 2015	$	364			$	851			$	1,215

Changes in unrealized (gains) losses relating to liabilities held at December 31, 2015	$	27		⁽²⁾	$	127		⁽³⁾	$	154

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

⁽²⁾ Included in interest credited to fixed accounts in the Consolidated Statements of Operations.

⁽³⁾ Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations.

⁽⁴⁾ Included in general and administrative expense 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:



	December 31, 2017
	Fair Value			Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	1,138		Discounted cash flow	Yield/spread to U.S. Treasuries	0.7	%	–	2.3%	1.1	%
Asset backed securities	$	7		Discounted cash flow	Annual short-term default rate	3.8%
					Annual long-term default rate	2.5%		–	3.0%	2.7	%
					Discount rate	10.5%
					Constant prepayment rate	5.0	%	–	10.0%	9.9	%
					Loss recovery	36.4	%	–	63.6%	63.2	%
IUL embedded derivatives	$	601		Discounted cash flow	Nonperformance risk ⁽¹⁾	71 bps
GMWB and GMAB embedded derivatives	$	(49	)	Discounted cash flow	Utilization of guaranteed withdrawals ⁽²⁾	0.0	%	–	42.0%
					Surrender rate	0.1	%	–	74.7%
					Market volatility ⁽³⁾	3.7	%	–	16.1%
					Nonperformance risk ⁽¹⁾	71 bps
Contingent consideration liability	$	28		Discounted cash flow	Discount rate	9.0%



	December 31, 2016
	Fair Value		Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	1,308	Discounted cash flow	Yield/spread to U.S. Treasuries	0.9	%	–	2.5%	1.3%
Asset backed securities	$	14	Discounted cash flow	Annual short-term default rate	4.8%
				Annual long-term default rate	2.5%
				Discount rate	13.5%
				Constant prepayment rate	5.0	%	–	10.0%	9.9%
				Loss recovery	36.4	%	–	63.6%	62.8%
IUL embedded derivatives	$	464	Discounted cash flow	Nonperformance risk ⁽¹⁾	82 bps
GMWB and GMAB embedded derivatives	$	614	Discounted cash flow	Utilization of guaranteed withdrawals ⁽²⁾	0.0	%	–	75.6%
				Surrender rate	0.1	%	–	66.4%
				Market volatility ⁽³⁾	5.3	%	–	21.2%
				Nonperformance risk ⁽¹⁾	82 bps
Contingent consideration liabilities	$	13	Discounted cash flow	Discount rate	9.0%

⁽¹⁾ The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives.

⁽²⁾ The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year.

⁽³⁾ Market volatility is implied volatility of fund of funds and managed volatility funds.

Schedule of carrying value and the estimated fair value of financial instruments that are not reported at fair value [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:



	December 31, 2017
	Carrying Value		Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Total
	(in millions)
Financial Assets
Mortgage loans, net	$	2,756	$	—	$	—	$	2,752	$	2,752
Policy and certificate loans	845		—		—		801		801
Receivables	1,537		103		946		487		1,536
Restricted and segregated cash	2,524		2,524		—		—		2,524
Other investments and assets	520		—		472		49		521

Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	10,246	$	—	$	—	$	10,755	$	10,755
Investment certificate reserves	6,390		—		—		6,374		6,374
Brokerage customer deposits	3,915		3,915		—		—		3,915
Separate account liabilities at NAV	5,177								5,177		⁽¹⁾
Debt and other liabilities	3,290		118		3,180		119		3,417



	December 31, 2016
	Carrying Value		Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Total
	(in millions)
Financial Assets
Mortgage loans, net	$	2,986	$	—	$	—	$	2,972	$	2,972
Policy and certificate loans	831		—		1		807		808
Receivables ⁽²⁾	1,407		127		870		416		1,413
Restricted and segregated cash	2,905		2,905		—		—		2,905
Other investments and assets	508		—		449		61		510

Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	10,906	$	—	$	—	$	11,417	$	11,417
Investment certificate reserves	5,927		—		—		5,914		5,914
Brokerage customer deposits	4,112		4,112		—		—		4,112
Separate account liabilities at NAV	4,253								4,253		⁽¹⁾
Debt and other liabilities	3,371		146		3,176		169		3,491

⁽¹⁾ Amounts are comprised of certain financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. See Note 3 for further information.

⁽²⁾ In the third quarter of 2017, the Company corrected the classification of the fair value of advisor loans, net from Level 2 to Level 3 as the valuation includes a significant unobservable input. The fair value levels at December 31, 2016 have been revised to reflect this change. The fair value of advisor loans, net was $400 million at December 31, 2016.