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Investments
 12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Investments [Text Block] Investments
The following is a summary of investments:
 
December 31,
2019
 
2018
(in millions)
Available-for-Sale securities, at fair value
$
33,129

 
$
31,058

Mortgage loans, net
2,778

 
2,696

Policy loans
868

 
861

Other investments
1,140

 
1,210

Total
$
37,915

 
$
35,825


The following is a summary of net investment income:
 
Years Ended December 31,
2019
 
2018
 
2017
(in millions)
Investment income on fixed maturities
$
1,378

 
$
1,353

 
$
1,349

Net realized gains (losses)
(8
)
 
10

 
46

Affordable housing partnerships
(98
)
 
(58
)
 
(100
)
Other
97

 
154

 
108

Consolidated investment entities
94

 
137

 
106

Total
$
1,463

 
$
1,596

 
$
1,509


Available-for-Sale securities distributed by type were as follows:
Description of Securities
December 31, 2019
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
Noncredit
OTTI (1)
 
(in millions)
Corporate debt securities
$
10,847

 
$
1,344

 
$
(4
)
 
$
12,187

 
$
—

Residential mortgage backed securities
9,954

 
94

 
(19
)
 
10,029

 
—

Commercial mortgage backed securities
5,473

 
96

 
(6
)
 
5,563

 
—

Asset backed securities
1,968

 
42

 
(4
)
 
2,006

 
1

State and municipal obligations
1,131

 
238

 
(2
)
 
1,367

 
—

U.S. government and agency obligations
1,679

 
1

 
—

 
1,680

 
—

Foreign government bonds and obligations
254

 
19

 
(2
)
 
271

 
—

Other securities
26

 
—

 
—

 
26

 
—

Total
$
31,332

 
$
1,834

 
$
(37
)
 
$
33,129

 
$
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 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 December 31, 2019 and 2018, investment securities with a fair value of $2.2 billion and $1.5 billion, respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $576 million and $510 million, respectively, may be sold, pledged or rehypothecated by the counterparty.
As of both December 31, 2019 and 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 December 31, 2019 and 2018, the Company’s internal analysts rated $624 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
December 31, 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
$
18,256

 
$
18,437

 
56
%
 
$
13,399

 
$
13,252

 
43
%
AA
1,113

 
1,304

 
4

 
1,571

 
1,723

 
5

A
3,008

 
3,474

 
10

 
3,667

 
3,899

 
13

BBB
8,178

 
9,102

 
28

 
11,102

 
11,290

 
36

Below investment grade (1)
777

 
812

 
2

 
932

 
894

 
3

Total fixed maturities
$
31,332

 
$
33,129

 
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 $5 million and $6 million, respectively, as of both December 31, 2019 and 2018. These securities are not rated but are included in below investment grade due to their risk characteristics.
As of December 31, 2019 and 2018, approximately 45% 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
December 31, 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
13

 
$
66

 
$
(1
)
 
23

 
$
173

 
$
(3
)
 
36

 
$
239

 
$
(4
)
Residential mortgage backed securities
150

 
4,328

 
(10
)
 
118

 
1,164

 
(9
)
 
268

 
5,492

 
(19
)
Commercial mortgage backed securities
52

 
1,622

 
(3
)
 
31

 
314

 
(3
)
 
83

 
1,936

 
(6
)
Asset backed securities
34

 
598

 
(3
)
 
16

 
213

 
(1
)
 
50

 
811

 
(4
)
State and municipal obligations
5

 
23

 
—

 
4

 
57

 
(2
)
 
9

 
80

 
(2
)
Foreign government bonds and obligations
1

 
—

 
—

 
10

 
15

 
(2
)
 
11

 
15

 
(2
)
Total
255

 
$
6,637

 
$
(17
)
 
202

 
$
1,936

 
$
(20
)
 
457

 
$
8,573

 
$
(37
)
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:
 
December 31,
2019
 
2018
 
2017
(in millions)
Beginning balance
$
2

 
$
2

 
$
69

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

 
—

 
—

Credit losses for which an other-than-temporary impairment was previously recognized
2

 
—

 
1

Reductions for securities sold during the period (realized)
(1
)
 
—

 
(68
)
Ending balance
$
18

 
$
2

 
$
2


Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in earnings were as follows:
 
Years Ended December 31,
2019
 
2018
 
2017
(in millions)
Gross realized investment gains
$
30

 
$
18

 
$
63

Gross realized investment losses
(14
)
 
(9
)
 
(7
)
Other-than-temporary impairments
(22
)
 
—

 
(1
)
Total
$
(6
)
 
$
9

 
$
55


Other-than temporary impairments for the year ended December 31, 2019 primarily related to credit losses on corporate debt securities and investments held by AAH. The Company recognized an impairment of $5 million in the first quarter of 2019 on investments held by AAH as the Company no longer intended to hold the securities until the recovery of fair value to book value. See Note 19 for additional information on the sale of AAH. Other-than temporary impairments for the year ended December 31, 2017 primarily related to credit losses on asset backed securities.
See Note 21 for a rollforward of net unrealized investment gains (losses) included in AOCI.
Available-for-Sale securities by contractual maturity as of December 31, 2019 were as follows:
 
Amortized Cost
 
Fair Value
(in millions)
Due within one year
$
2,471

 
$
2,476

Due after one year through five years
4,723

 
4,900

Due after five years through 10 years
2,667

 
2,890

Due after 10 years
4,076

 
5,265

 
13,937

 
15,531

Residential mortgage backed securities
9,954

 
10,029

Commercial mortgage backed securities
5,473

 
5,563

Asset backed securities
1,968

 
2,006

Total
$
31,332

 
$
33,129


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.