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

12 Months Ended

Dec. 31, 2018

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, 2018
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Cash equivalents	$	155	$	2,350	$	—	$	2,505
Available-for-Sale securities:
Corporate debt securities	—		13,153		913		14,066
Residential mortgage backed securities	—		6,193		136		6,329
Commercial mortgage backed securities	—		4,857		20		4,877
Asset backed securities	—		1,392		6		1,398
State and municipal obligations	—		2,345		—		2,345
U.S. government and agency obligations	1,745		—		—		1,745
Foreign government bonds and obligations	—		298		—		298
Total Available-for-Sale securities	1,745		28,238		1,075		31,058
Equity securities	—		1		—		1
Equity securities at net asset value (“NAV”)							6		⁽¹⁾
Trading securities	36		38		—		74
Separate account assets at NAV							77,925		⁽¹⁾
Investments and cash equivalents segregated for regulatory purposes	301		—		—		301
Other assets:
Interest rate derivative contracts	—		796		—		796
Equity derivative contracts	191		1,527		—		1,718
Foreign exchange derivative contracts	5		55		—		60
Total other assets	196		2,378		—		2,574
Total assets at fair value	$	2,433	$	33,005	$	1,075	$	114,444

Liabilities
Policyholder account balances, future policy benefits and claims:
Indexed annuity embedded derivatives	$	—	$	3	$	14	$	17
IUL embedded derivatives	—		—		628		628
GMWB and GMAB embedded derivatives	—		—		328		328		⁽²⁾
Total policyholder account balances, future policy benefits and claims	—		3		970		973		⁽³⁾
Customer deposits	—		6		—		6
Other liabilities:
Interest rate derivative contracts	—		424		—		424
Equity derivative contracts	78		2,076		—		2,154
Credit derivative contracts	—		18		—		18
Foreign exchange derivative contracts	4		31		—		35
Other	13		6		30		49
Total other liabilities	95		2,555		30		2,680
Total liabilities at fair value	$	95	$	2,564	$	1,000	$	3,659



	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 at 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 and cash equivalents 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		)	⁽⁴⁾
Total policyholder account balances, future policy benefits and claims	—		5		552			557			⁽⁵⁾
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

⁽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 $646 million of individual contracts in a liability position and $318 million of individual contracts in an asset position as of December 31, 2018.

⁽³⁾ The Company’s adjustment for nonperformance risk resulted in a $(726) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2018.

⁽⁴⁾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 as of December 31, 2017.

⁽⁵⁾The Company’s adjustment for nonperformance risk resulted in a $(399) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2017.

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																Other Derivatives Contracts
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Total				Other Derivatives Contracts
	(in millions)
Balance, January 1, 2018	$	1,139		$	155		$	—		$	7		$	1,301			$	—
Total gains (losses) included in:
Net income	(1		)	—			—			—			(1		)	⁽¹⁾	(3		)	⁽²⁾
Other comprehensive income (loss)	(26		)	1			—			1			(24		)		—
Purchases	15			70			72			32			189				3
Settlements	(214		)	(29		)	—			(1		)	(244		)		—
Transfers into Level 3	—			—			—			2			2				—
Transfers out of Level 3	—			(61		)	(52		)	(35		)	(148		)		—
Balance, December 31, 2018	$	913		$	136		$	20		$	6		$	1,075			$	—

Changes in unrealized gains (losses) relating to assets held at December 31, 2018	$	(1	)	$	—		$	—		$	—		$	(1	)	⁽¹⁾	$	—



	Policyholder Account Balances, Future Policy Benefits and Claims															Other Liabilities
	Indexed Annuity Embedded Derivatives				IUL Embedded Derivatives				GMWB and GMAB Embedded Derivatives				Total			Other Liabilities
	(in millions)
Balance, January 1, 2018	$	—			$	601			$	(49	)		$	552		$	28
Total (gains) losses included in:
Net income	(3		)	⁽³⁾	(9		)	⁽³⁾	49			⁽²⁾	37			2		⁽⁴⁾
Issues	17				90				350				457			—
Settlements	—				(54		)		(22		)		(76		)	—
Balance, December 31, 2018	$	14			$	628			$	328			$	970		$	30

Changes in unrealized (gains) losses relating to liabilities held at December 31, 2018	$	—			$	(9	)	⁽³⁾	$	47		⁽²⁾	$	38		$	—



	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			⁽³⁾	(977		)	⁽²⁾	(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		⁽³⁾	$	(946	)	⁽²⁾	$	(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		)	⁽²⁾
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	)	⁽²⁾



	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, 2016	$	364			$	851			$	1,215		$	—
Total (gains) losses included in:
Net income	13			⁽³⁾	(511		)	⁽²⁾	(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		⁽³⁾	$	(448	)	⁽²⁾	$	(435	)	$	—

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

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

⁽³⁾ Included in interest credited to fixed accounts in the Consolidated Statements of Operations.

⁽⁴⁾ Included in general and administrative expense in the Consolidated Statements of Operations.

Fair Value Measurement Inputs and Valuation Techniques [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, 2018
	Fair Value		Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	912	Discounted cash flow	Yield/spread to U.S. Treasuries	1.0	%	–	3.6%	1.5	%
Asset backed securities	$	6	Discounted cash flow	Annual short-term default rate	2.3%
				Annual long-term default rate	2.5%		–	3.0%	2.9	%
				Discount rate	11.5%
				Constant prepayment rate	5.0	%	–	10.0%	10.0	%
				Loss recovery	36.4	%	–	63.6%	63.6	%
IUL embedded derivatives	$	628	Discounted cash flow	Nonperformance risk ⁽¹⁾	119 bps
Indexed annuity embedded derivatives	$	14	Discounted cash flow	Surrender rate	0.0	%	–	50.0%
				Nonperformance risk ⁽¹⁾	119 bps
GMWB and GMAB embedded derivatives	$	328	Discounted cash flow	Utilization of guaranteed withdrawals ⁽²⁾	0.0%		–	36.0%
				Surrender rate	0.1%		–	73.4%
				Market volatility ⁽³⁾	4.0%		–	16.1%
				Nonperformance risk ⁽¹⁾	119 bps
Contingent consideration liabilities	$	30	Discounted cash flow	Discount rate	9.0%



	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 liabilities	$	28		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, 2018
	Carrying Value		Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Total
	(in millions)
Financial Assets
Mortgage loans, net	$	2,696	$	—	$	—	$	2,661	$	2,661
Policy and certificate loans	861		—		—		810		810
Receivables	1,677		179		965		489		1,633
Restricted and segregated cash	2,609		2,609		—		—		2,609
Other investments and assets	572		—		491		60		551

Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	9,609	$	—	$	—	$	9,672	$	9,672
Investment certificate reserves	7,886		—		—		7,845		7,845
Brokerage customer deposits	3,660		3,660		—		—		3,660
Separate account liabilities at NAV	4,843								4,843		⁽¹⁾
Debt and other liabilities	3,296		188		3,059		57		3,304



	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 ⁽²⁾	725		—		677		49		726

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

⁽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⁾ Amounts have been corrected to include certificates of deposit with original or remaining maturities at the time of purchase of more than 90 days but less than 12 months of $205 million as of December 31, 2017. The certificates of deposit are classified as Level 2 and recorded at cost, which is a reasonable estimate of fair value because of the short time between the purchase of the instrument and its expected realization.