Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2019

Assets and liabilities measured at fair value

Schedule of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis

The following tables present the balances of assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis:



	December 31, 2019
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Cash equivalents	$	267	$	2,924	$	—	$	3,191
Available-for-Sale securities:
Corporate debt securities	—		11,437		750		12,187
Residential mortgage backed securities	—		10,012		17		10,029
Commercial mortgage backed securities	—		5,563		—		5,563
Asset backed securities	—		1,987		19		2,006
State and municipal obligations	—		1,367		—		1,367
U.S. government and agency obligations	1,680		—		—		1,680
Foreign government bonds and obligations	—		271		—		271
Other securities	—		26		—		26
Total Available-for-Sale securities	1,680		30,663		786		33,129
Equity securities	1		—		—		1
Investments at NAV							6		⁽¹⁾
Trading and other securities	12		26		—		38
Separate account assets at NAV							87,488		⁽¹⁾
Investments and cash equivalents segregated for regulatory purposes	14		—		—		14
Other assets:
Interest rate derivative contracts	—		1,455		—		1,455
Equity derivative contracts	162		2,722		—		2,884
Credit derivative contracts	—		4		—		4
Foreign exchange derivative contracts	1		17		—		18
Total other assets	163		4,198		—		4,361
Total assets at fair value	$	2,137	$	37,811	$	786	$	128,228

Liabilities
Policyholder account balances, future policy benefits and claims:
Indexed annuity embedded derivatives	$	—	$	3	$	43	$	46
IUL embedded derivatives	—		—		881		881
GMWB and GMAB embedded derivatives	—		—		763		763		⁽²⁾
Total policyholder account balances, future policy benefits and claims	—		3		1,687		1,690		⁽³⁾
Customer deposits	—		14		—		14
Other liabilities:
Interest rate derivative contracts	—		418		—		418
Equity derivative contracts	36		3,062		—		3,098
Foreign exchange derivative contracts	1		8		—		9
Other	6		4		44		54
Total other liabilities	43		3,492		44		3,579
Total liabilities at fair value	$	43	$	3,509	$	1,731	$	5,283



	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
Investments at NAV							6		⁽¹⁾
Trading and other 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		⁽⁴⁾
Total policyholder account balances, future policy benefits and claims	—		3		970		973		⁽⁵⁾
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

⁽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 $981 million of individual contracts in a liability position and $218 million of individual contracts in an asset position as of December 31, 2019.

⁽³⁾ The Company’s adjustment for nonperformance risk resulted in a $(502) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2019.

⁽⁴⁾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.

⁽⁵⁾The Company’s adjustment for nonperformance risk resulted in a $(726) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2018.

Schedule of debt of the consolidated investment entities and the stated interest rates

The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows:



	Outstanding Balance						Stated Interest Rate
	December 31,						December 31,
	2019			2018			2019		2018
	(in millions)
Long-term debt:
Senior notes due 2019	$	—		$	300		—	%	7.3	%
Senior notes due 2020	750			750			5.3		5.3
Senior notes due 2022	500			—			3.0		—
Senior notes due 2023	750			750			4.0		4.0
Senior notes due 2024	550			550			3.7		3.7
Senior notes due 2026	500			500			2.9		2.9
Finance lease liabilities	57			25			N/A		N/A
Other ⁽¹⁾	(10		)	(8		)	N/A		N/A
Total long-term debt	3,097			2,867

Short-term borrowings:
Federal Home Loan Bank (“FHLB”) advances	201			151			1.8		2.6
Repurchase agreements	—			50			—		2.6
Total short-term borrowings	201			201
Total	$	3,298		$	3,068

N/A Not Applicable.

⁽¹⁾ Amounts include adjustments for fair value hedges on the Company’s long-term debt and unamortized discount and debt issuance costs. See Note 17 for information on the Company’s fair value hedges.

Consolidated investment entities [Member]

Assets and liabilities measured at fair value

Schedule of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis

The following tables present the balances of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis:



	December 31, 2019
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments:
Corporate debt securities	$	—	$	8	$	—	$	8
Common stocks	1		—		—		1
Syndicated loans	—		1,454		143		1,597
Total investments	1		1,462		143		1,606
Receivables	—		8		—		8
Total assets at fair value	$	1	$	1,470	$	143	$	1,614

Liabilities
Debt ⁽¹⁾	$	—	$	1,628	$	—	$	1,628
Other liabilities	—		84		—		84
Total liabilities at fair value	$	—	$	1,712	$	—	$	1,712



	December 31, 2018
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments:
Corporate debt securities	$	—	$	9	$	—	$	9
Common stocks	1		1		—		2
Other investments	4		—		—		4
Syndicated loans	—		1,465		226		1,691
Total investments	5		1,475		226		1,706
Receivables	—		12		—		12
Total assets at fair value	$	5	$	1,487	$	226	$	1,718

Liabilities
Debt ⁽¹⁾	$	—	$	1,743	$	—	$	1,743
Other liabilities	—		122		—		122
Total liabilities at fair value	$	—	$	1,865	$	—	$	1,865

⁽¹⁾ The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $1.7 billion as of both December 31, 2019 and 2018.

Schedule of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis

The following tables provide a summary of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis:



	Syndicated Loans
	(in millions)
Balance, January 1, 2019	$	226
Total gains (losses) included in:
Net income	(2		)	⁽¹⁾
Purchases	91
Sales	(11		)
Settlements	(68		)
Transfers into Level 3	272
Transfers out of Level 3	(365		)
Balance, December 31, 2019	$	143

Changes in unrealized gains (losses) included in income relating to assets held at December 31, 2019	$	(3	)	⁽¹⁾



	Common Stocks				Syndicated Loans
	(in millions)
Balance, January 1, 2018	$	4			$	180
Total gains (losses) included in:
Net income	6			⁽¹⁾	(1		)	⁽¹⁾
Purchases	—				97
Sales	(10		)		(41		)
Settlements	—				(52		)
Transfers into Level 3	4				173
Transfers out of Level 3	(2		)		(160		)
Consolidation of consolidated investment entities	—				54
Deconsolidation of consolidated investment entities	(2		)		(24		)
Balance, December 31, 2018	$	—			$	226

Changes in unrealized gains (losses) included in income relating to assets held at December 31, 2018	$	—			$	(4	)	⁽¹⁾



	Corporate Debt Securities			Common Stocks				Syndicated Loans
	(in millions)
Balance, January 1, 2017	$	—		$	5			$	254
Total gains (losses) included in:
Net income	—			(1		)	⁽¹⁾	—
Purchases	—			3				146
Sales	(2		)	(2		)		(28		)
Settlements	—			—				(70		)
Transfers into Level 3	2			7				266
Transfers out of Level 3	—			(8		)		(388		)
Balance, December 31, 2017	$	—		$	4			$	180

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

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

Schedule of fair value and unpaid principal balance of assets and liabilities carried at fair value under the fair value option

The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected:



	December 31,
	2019			2018
	(in millions)
Syndicated loans
Unpaid principal balance	$	1,678		$	1,743
Excess unpaid principal over fair value	(81		)	(52		)
Fair value	$	1,597		$	1,691

Fair value of loans more than 90 days past due	$	4		$	—
Fair value of loans in nonaccrual status	42			—
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both	18			—

Debt
Unpaid principal balance	$	1,761		$	1,951
Excess unpaid principal over fair value	(133		)	(208		)
Carrying value ⁽¹⁾	$	1,628		$	1,743

⁽¹⁾The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $1.7 billion as of both December 31, 2019 and 2018.

Schedule of debt of the consolidated investment entities and the stated interest rates

Debt of the consolidated investment entities and the stated interest rates were as follows:



	Carrying Value				Weighted Average Interest Rate
	December 31,				December 31,
	2019		2018		2019		2018
	(in millions)
Debt of consolidated CLOs due 2025-2030	$	1,628	$	1,743	3.5	%	3.7	%