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Investments
 3 Months Ended
Mar. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
Investments [Text Block]
Investments
The following is a summary of Ameriprise Financial investments:
 
March 31,
2018
 
December 31,
2017
(in millions)
Available-for-Sale securities, at fair value
$
30,319

 
$
30,927

Mortgage loans, net
2,721

 
2,756

Policy and certificate loans
844

 
845

Other investments
1,436

 
1,397

Total
$
35,320

 
$
35,925


Other investments primarily reflect the Company’s interests in affordable housing partnerships, trading securities, seed money investments, syndicated loans and held-to-maturity certificates of deposit with original or remaining maturities at the time of purchase of more than 90 days but less than 12 months. As of January 1, 2018, marketable equity securities were reclassified from Available-for-Sale securities to other investments due to the adoption of a new accounting standard on the recognition and measurement of financial instruments. The carrying value of held-to-maturity certificates of deposit was $230 million and $205 million as of March 31, 2018 and December 31, 2017, respectively, which approximates fair value due to the short time between the purchase of the instrument and its expected realization.
The following is a summary of net investment income:
 
Three Months Ended March 31,
2018
 
2017
(in millions)
Investment income on fixed maturities
$
329

 
$
337

Net realized gains (losses)
6

 
17

Affordable housing partnerships
(11
)
 
(12
)
Other
46

 
24

Consolidated investment entities
26

 
25

Total
$
396

 
$
391


Available-for-Sale securities distributed by type were as follows:
Description of Securities
March 31, 2018
Amortized Cost
 
Gross
Unrealized Gains
 
Gross
Unrealized Losses
 
Fair Value
 
Noncredit OTTI (1)
 
(in millions)
Corporate debt securities
$
13,676

 
$
858

 
$
(100
)
 
$
14,434

 
$
—

Residential mortgage backed securities
6,031

 
41

 
(80
)
 
5,992

 
—

Commercial mortgage backed securities
4,395

 
25

 
(100
)
 
4,320

 
—

Asset backed securities
1,502

 
30

 
(9
)
 
1,523

 
—

State and municipal obligations
2,192

 
217

 
(14
)
 
2,395

 
—

U.S. government and agencies obligations
1,372

 
1

 
—

 
1,373

 
—

Foreign government bonds and obligations
273

 
14

 
(5
)
 
282

 
—

Total
$
29,441

 
$
1,186

 
$
(308
)
 
$
30,319

 
$
—

Description of Securities
December 31, 2017
Amortized Cost
 
Gross
Unrealized Gains
 
Gross
Unrealized Losses
 
Fair Value
 
Noncredit OTTI (1)
 
(in millions)
Corporate debt securities
$
13,976

 
$
1,131

 
$
(32
)
 
$
15,075

 
$
—

Residential mortgage backed securities
6,585

 
63

 
(37
)
 
6,611

 
—

Commercial mortgage backed securities
4,362

 
48

 
(36
)
 
4,374

 
—

Asset backed securities
1,549

 
36

 
(5
)
 
1,580

 
1

State and municipal obligations
2,215

 
259

 
(11
)
 
2,463

 
—

U.S. government and agencies obligations
502

 
1

 
—

 
503

 
—

Foreign government bonds and obligations
298

 
20

 
(4
)
 
314

 
—

Common stocks
5

 
3

 
(1
)
 
7

 
—

Total
$
29,492

 
$
1,561

 
$
(126
)
 
$
30,927

 
$
1

(1) 
Represents the amount of other-than-temporary impairment (“OTTI”) losses in 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 March 31, 2018 and December 31, 2017, investment securities with a fair value of $1.6 billion and $1.7 billion, respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $724 million and $803 million, respectively, may be sold, pledged or rehypothecated by the counterparty.
As of both March 31, 2018 and December 31, 2017, fixed maturity securities comprised approximately 86% 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. As of March 31, 2018 and December 31, 2017, the Company’s internal analysts rated $936 million and $979 million, respectively, of securities using criteria similar to those used by NRSROs.
A summary of fixed maturity securities by rating was as follows:
Ratings
March 31, 2018
 
December 31, 2017
Amortized Cost
 
Fair Value
 
Percent of Total Fair Value
Amortized Cost
 
Fair Value
 
Percent of Total Fair Value
 
(in millions, except percentages)
AAA
$
11,823

 
$
11,706

 
39
%
 
$
11,293

 
$
11,331

 
37
%
AA
1,688

 
1,862

 
6

 
1,898

 
2,114

 
7

A
4,398

 
4,705

 
15

 
4,760

 
5,243

 
17

BBB
10,355

 
10,868

 
36

 
10,317

 
10,989

 
35

Below investment grade (1)
1,177

 
1,178

 
4

 
1,219

 
1,243

 
4

Total fixed maturities
$
29,441

 
$
30,319

 
100
%
 
$
29,487

 
$
30,920

 
100
%

(1) 
The amortized cost and fair value of below investment grade securities includes interest in CLOs managed by the Company of $6 million and $7 million, respectively, at March 31, 2018, and $6 million and $7 million, respectively, at December 31, 2017. These securities are not rated but are included in below investment grade due to their risk characteristics.
As of March 31, 2018 and December 31, 2017, approximately 33% and 37%, 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:
Description of Securities
March 31, 2018
Less than 12 months
 
12 months or more
 
Total
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
282

 
$
4,289

 
$
(63
)
 
64

 
$
656

 
$
(37
)
 
346

 
$
4,945

 
$
(100
)
Residential mortgage backed securities
163

 
2,716

 
(38
)
 
127

 
1,373

 
(42
)
 
290

 
4,089

 
(80
)
Commercial mortgage backed securities
127

 
2,272

 
(60
)
 
57

 
749

 
(40
)
 
184

 
3,021

 
(100
)
Asset backed securities
43

 
531

 
(6
)
 
22

 
158

 
(3
)
 
65

 
689

 
(9
)
State and municipal obligations
174

 
375

 
(6
)
 
34

 
182

 
(8
)
 
208

 
557

 
(14
)
Foreign government bonds and obligations
13

 
46

 
(1
)
 
12

 
19

 
(4
)
 
25

 
65

 
(5
)
Total
802

 
$
10,229

 
$
(174
)
 
316

 
$
3,137

 
$
(134
)
 
1,118

 
$
13,366

 
$
(308
)
Description of Securities
December 31, 2017
Less than 12 months
 
12 months or more
 
Total
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
150

 
$
1,791

 
$
(8
)
 
70

 
$
740

 
$
(24
)
 
220

 
$
2,531

 
$
(32
)
Residential mortgage backed securities
102

 
1,772

 
(11
)
 
130

 
1,467

 
(26
)
 
232

 
3,239

 
(37
)
Commercial mortgage backed securities
67

 
1,178

 
(12
)
 
58

 
783

 
(24
)
 
125

 
1,961

 
(36
)
Asset backed securities
36

 
424

 
(2
)
 
26

 
187

 
(3
)
 
62

 
611

 
(5
)
State and municipal obligations
76

 
141

 
(1
)
 
34

 
180

 
(10
)
 
110

 
321

 
(11
)
Foreign government bonds and obligations
3

 
6

 
—

 
15

 
23

 
(4
)
 
18

 
29

 
(4
)
Common stocks
—

 
—

 
—

 
4

 
1

 
(1
)
 
4

 
1

 
(1
)
Total
434

 
$
5,312

 
$
(34
)
 
337

 
$
3,381

 
$
(92
)
 
771

 
$
8,693

 
$
(126
)

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 rise in interest rates as well as widening 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 OCI:
 
Three Months Ended March 31,
2018
 
2017
(in millions)
Beginning balance
$
2

 
$
69

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

 
1

Ending balance
$
2

 
$
70


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,
2018
 
2017
 
Gross realized investment gains
$
6

 
$
19

Gross realized investment losses
(1
)
 
—

Other-than-temporary impairments
—

 
(1
)
Total
$
5

 
$
18


Other-than-temporary impairments for the three months ended March 31, 2017 primarily related to credit losses on asset backed securities.
See Note 14 for a rollforward of net unrealized investment gains (losses) included in AOCI.
Available-for-Sale securities by contractual maturity as of March 31, 2018 were as follows:
 
Amortized Cost
 
Fair Value
(in millions)
Due within one year
$
3,224

 
$
3,247

Due after one year through five years
6,425

 
6,507

Due after five years through 10 years
3,591

 
3,612

Due after 10 years
4,273

 
5,118

 
17,513

 
18,484

Residential mortgage backed securities
6,031

 
5,992

Commercial mortgage backed securities
4,395

 
4,320

Asset backed securities
1,502

 
1,523

Total
$
29,441

 
$
30,319


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 were not included in the maturities distribution.