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Investments
 9 Months Ended
Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract]  
Investments [Text Block] Investments
The following is a summary of Ameriprise Financial investments:
 
September 30,
2019
 
December 31,
2018
(in millions)
Available-for-Sale securities, at fair value
$
30,967

 
$
31,058

Mortgage loans, net
2,704

 
2,696

Policy loans
864

 
861

Other investments
1,190

 
1,210

Total
$
35,725

 
$
35,825


Other investments primarily reflect the Company’s interests in affordable housing partnerships, trading securities, seed money investments, syndicated loans, credit card receivables and certificates of deposit with original or remaining maturities at the time of purchase of more than 90 days.
The following is a summary of net investment income:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
2019
 
2018
 
2019
 
2018
(in millions)
Investment income on fixed maturities
$
349

 
$
339

 
$
1,046

 
$
1,002

Net realized gains (losses) (1)
(10
)
 
4

 
(6
)
 
15

Affordable housing partnerships
(26
)
 
(24
)
 
(58
)
 
(49
)
Other
19

 
43

 
67

 
132

Consolidated investment entities
24

 
24

 
72

 
101

Total
$
356

 
$
386

 
$
1,121

 
$
1,201


(1) 
Net realized gains for the nine months ended September 30, 2019 included other-than-temporary impairments (“OTTI”) on investments held by AAH, which were classified as held for sale on the Consolidated Balance Sheet as of September 30, 2019. See Note 15 for additional information.
Available-for-Sale securities distributed by type were as follows:
Description of Securities
September 30, 2019
Amortized Cost
 
Gross
Unrealized Gains
 
Gross
Unrealized Losses
 
Fair Value
 
Noncredit OTTI (1)
 
(in millions)
Corporate debt securities
$
11,203

 
$
1,318

 
$
(13
)
 
$
12,508

 
$
—

Residential mortgage backed securities
8,020

 
104

 
(12
)
 
8,112

 
—

Commercial mortgage backed securities
5,144

 
134

 
(3
)
 
5,275

 
—

Asset backed securities
1,631

 
51

 
(2
)
 
1,680

 
1

State and municipal obligations
1,166

 
265

 
(3
)
 
1,428

 
—

U.S. government and agency obligations
1,692

 
1

 
—

 
1,693

 
—

Foreign government bonds and obligations
256

 
18

 
(3
)
 
271

 
—

Total
$
29,112

 
$
1,891

 
$
(36
)
 
$
30,967

 
$
1

Description of Securities
December 31, 2018
Amortized Cost
 
Gross
Unrealized Gains
 
Gross
Unrealized Losses
 
Fair Value
 
Noncredit OTTI (1)
 
(in millions)
Corporate debt securities
$
13,741

 
$
555

 
$
(230
)
 
$
14,066

 
$
—

Residential mortgage backed securities
6,373

 
34

 
(78
)
 
6,329

 
—

Commercial mortgage backed securities
4,975

 
18

 
(116
)
 
4,877

 
—

Asset backed securities
1,373

 
36

 
(11
)
 
1,398

 
1

State and municipal obligations
2,166

 
192

 
(13
)
 
2,345

 
—

U.S. government and agency obligations
1,745

 
—

 
—

 
1,745

 
—

Foreign government bonds and obligations
298

 
9

 
(9
)
 
298

 
—

Total
$
30,671

 
$
844

 
$
(457
)
 
$
31,058

 
$
1

(1) 
Represents the amount of 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 September 30, 2019 and December 31, 2018, investment securities with a fair value of $2.4 billion and $1.5 billion, respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $724 million and $510 million, respectively, may be sold, pledged or rehypothecated by the counterparty.
As of both September 30, 2019 and December 31, 2018, fixed maturity securities comprised approximately 87% 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 September 30, 2019 and December 31, 2018, the Company’s internal analysts rated $609 million and $755 million, respectively, of securities using criteria similar to those used by NRSROs.
A summary of fixed maturity securities by rating was as follows:
Ratings
September 30, 2019
 
December 31, 2018
Amortized Cost
 
Fair Value
 
Percent of Total Fair Value
Amortized Cost
 
Fair Value
 
Percent of Total Fair Value
 
(in millions, except percentages)
AAA
$
15,675

 
$
15,916

 
51
%
 
$
13,399

 
$
13,252

 
43
%
AA
1,080

 
1,291

 
4

 
1,571

 
1,723

 
5

A
3,020

 
3,498

 
11

 
3,667

 
3,899

 
13

BBB
8,542

 
9,441

 
31

 
11,102

 
11,290

 
36

Below investment grade (1)
795

 
821

 
3

 
932

 
894

 
3

Total fixed maturities
$
29,112

 
$
30,967

 
100
%
 
$
30,671

 
$
31,058

 
100
%

(1) 
The amortized cost and fair value of below investment grade securities includes interest in CLOs managed by the Company of $4 million and $6 million, respectively, at September 30, 2019, and $5 million and $6 million, respectively, at December 31, 2018. These securities are not rated but are included in below investment grade due to their risk characteristics.
As of September 30, 2019 and December 31, 2018, approximately 41% and 36%, respectively, of securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any 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
September 30, 2019
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
20

 
$
135

 
$
(2
)
 
39

 
$
407

 
$
(11
)
 
59

 
$
542

 
$
(13
)
Residential mortgage backed securities
88

 
1,933

 
(4
)
 
113

 
1,201

 
(8
)
 
201

 
3,134

 
(12
)
Commercial mortgage backed securities
39

 
1,054

 
(2
)
 
30

 
278

 
(1
)
 
69

 
1,332

 
(3
)
Asset backed securities
17

 
237

 
—

 
16

 
195

 
(2
)
 
33

 
432

 
(2
)
State and municipal obligations
1

 
4

 
—

 
4

 
79

 
(3
)
 
5

 
83

 
(3
)
Foreign government bonds and obligations
2

 
5

 
—

 
13

 
26

 
(3
)
 
15

 
31

 
(3
)
Total
167

 
$
3,368

 
$
(8
)
 
215

 
$
2,186

 
$
(28
)
 
382

 
$
5,554

 
$
(36
)
Description of Securities
December 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
345

 
$
5,522

 
$
(152
)
 
148

 
$
1,717

 
$
(78
)
 
493

 
$
7,239

 
$
(230
)
Residential mortgage backed securities
142

 
2,029

 
(18
)
 
175

 
2,132

 
(60
)
 
317

 
4,161

 
(78
)
Commercial mortgage backed securities
104

 
2,062

 
(30
)
 
112

 
1,806

 
(86
)
 
216

 
3,868

 
(116
)
Asset backed securities
38

 
491

 
(6
)
 
35

 
396

 
(5
)
 
73

 
887

 
(11
)
State and municipal obligations
81

 
255

 
(4
)
 
100

 
254

 
(9
)
 
181

 
509

 
(13
)
Foreign government bonds and obligations
17

 
86

 
(4
)
 
14

 
17

 
(5
)
 
31

 
103

 
(9
)
Total
727

 
$
10,445

 
$
(214
)
 
584

 
$
6,322

 
$
(243
)
 
1,311

 
$
16,767

 
$
(457
)

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 attributable to lower interest rates as well as tighter credit spreads.
The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Operations for OTTI related to credit losses on Available-for-Sale securities for which a portion of the securities’ total OTTI was recognized in OCI:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
2019
 
2018
2019
 
2018
(in millions)
Beginning balance
$
2

 
$
2

 
$
2

 
$
2

Credit losses for which an other-than-temporary impairment was not previously recognized
15

 
—

 
15

 
—

Ending balance
$
17

 
$
2

 
$
17

 
$
2


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,
2019
 
2018
2019
 
2018
(in millions)
Gross realized investment gains
$
6

 
$
4

 
$
28

 
$
15

Gross realized investment losses
(1
)
 
—

 
(13
)
 
(1
)
Other-than-temporary impairments
(15
)
 
—

 
(20
)
 
—

Total
$
(10
)
 
$
4

 
$
(5
)
 
$
14


Other-than-temporary impairments for the three months ended September 30, 2019 primarily related to credit losses on corporate debt securities. Other-than-temporary impairments for the nine months ended September 30, 2019 primarily related to credit losses on corporate debt securities and investments held by AAH, which were classified as held for sale on the Consolidated Balance Sheet as of September 30, 2019. See Note 15 for additional information.
See Note 16 for a rollforward of net unrealized investment gains (losses) included in AOCI.
Available-for-Sale securities by contractual maturity as of September 30, 2019 were as follows:
 
Amortized Cost
 
Fair Value
(in millions)
Due within one year
$
2,608

 
$
2,611

Due after one year through five years
4,749

 
4,913

Due after five years through 10 years
2,817

 
3,040

Due after 10 years
4,143

 
5,336

 
14,317

 
15,900

Residential mortgage backed securities
8,020

 
8,112

Commercial mortgage backed securities
5,144

 
5,275

Asset backed securities
1,631

 
1,680

Total
$
29,112

 
$
30,967


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.