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Investments
 3 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Investments [Text Block]
The following is a summary of Ameriprise Financial investments:
 
March 31,
2020
 
December 31,
2019
(in millions)
Available-for-Sale securities, at fair value (net of allowance for credit losses: 2020, $13)
$
31,846

 
$
33,129

Mortgage loans, net (net of allowance for credit losses: 2020, $26; 2019, $19)
2,779

 
2,778

Policy loans
869

 
868

Other investments (net of allowance for credit losses: 2020, $13; 2019, $5)
1,132

 
1,140

Total
$
36,626

 
$
37,915


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
March 31,
2020
 
2019
(in millions)
Investment income on fixed maturities
$
322

 
$
353

Net realized gains (losses)
(19
)
(1) 
4

Affordable housing partnerships
(14
)
 
(15
)
Other
22

 
32

Consolidated investment entities
17

 
23

Total
$
328

 
$
397


(1) Includes the change in the allowance for credit losses of $24 million for the three months ended March 31, 2020.
Available-for-Sale securities distributed by type were as follows:
Description of Securities
March 31, 2020
Amortized Cost
 
Gross
Unrealized Gains
 
Gross
Unrealized Losses
 
Allowance for Credit Losses
 
Fair Value
 
(in millions)
Corporate debt securities
$
11,185

 
$
857

 
$
(335
)
 
$
(13
)
 
$
11,694

Residential mortgage backed securities
9,734

 
117

 
(136
)
 
—

 
9,715

Commercial mortgage backed securities
5,478

 
61

 
(144
)
 
—

 
5,395

Asset backed securities
2,129

 
28

 
(73
)
 
—

 
2,084

State and municipal obligations
1,100

 
235

 
(5
)
 
—

 
1,330

U.S. government and agency obligations
1,372

 
4

 
—

 
—

 
1,376

Foreign government bonds and obligations
251

 
9

 
(8
)
 
—

 
252

Total
$
31,249

 
$
1,311

 
$
(701
)
 
$
(13
)
 
$
31,846



Description of Securities
December 31, 2019
Amortized Cost
 
Gross
Unrealized Gains
 
Gross
Unrealized Losses
 
Fair Value
 
(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

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


As of March 31, 2020, and December 31, 2019, accrued interest of $187 million and $177 million, respectively, is excluded from the amortized cost basis of Available-for-Sale securities in the tables above and is recorded in receivables on the Consolidated Balance Sheets.
As of March 31, 2020 and December 31, 2019, investment securities with a fair value of $2.7 billion and $2.2 billion, respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $411 million and $576 million, respectively, may be sold, pledged or rehypothecated by the counterparty.
As of both March 31, 2020 and December 31, 2019, 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 March 31, 2020 and December 31, 2019, the Company’s internal analysts rated $557 million and $624 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, 2020
 
December 31, 2019
Amortized Cost
 
Fair Value
 
Percent of Total Fair Value
Amortized Cost
 
Fair Value
 
Percent of Total Fair Value
 
(in millions, except percentages)
AAA
$
18,039

 
$
17,903

 
56
%
 
$
18,256

 
$
18,437

 
56
%
AA
1,030

 
1,204

 
4

 
1,113

 
1,304

 
4

A
3,157

 
3,596

 
11

 
3,008

 
3,474

 
10

BBB
7,878

 
8,144

 
26

 
8,178

 
9,102

 
28

Below investment grade (1)
1,145

 
999

 
3

 
777

 
812

 
2

Total fixed maturities
$
31,249

 
$
31,846

 
100
%
 
$
31,332

 
$
33,129

 
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 $4 million, respectively, as of March 31, 2020, and $5 million and $6 million, respectively, as of December 31, 2019. These securities are not rated but are included in below investment grade due to their risk characteristics.
As of both March 31, 2020 and December 31, 2019, approximately 45% 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
March 31, 2020
Less than 12 months
 
12 months or more
 
Total
Number of Securities
 
Fair Value
 
Unrealized Losses (1)
Number of Securities
 
Fair Value
 
Unrealized Losses (1)
Number of Securities
 
Fair Value
 
Unrealized Losses (1)
 
(in millions, except number of securities)
Corporate debt securities
233

 
$
2,844

 
$
(337
)
 
10

 
$
37

 
$
(11
)
 
243

 
$
2,881

 
$
(348
)
Residential mortgage backed securities
326

 
6,020

 
(122
)
 
90

 
728

 
(14
)
 
416

 
6,748

 
(136
)
Commercial mortgage backed securities
99

 
2,636

 
(136
)
 
20

 
206

 
(8
)
 
119

 
2,842

 
(144
)
Asset backed securities
87

 
1,424

 
(63
)
 
9

 
163

 
(10
)
 
96

 
1,587

 
(73
)
State and municipal obligations
6

 
79

 
(4
)
 
2

 
7

 
(1
)
 
8

 
86

 
(5
)
Foreign government bonds and obligations
20

 
93

 
(6
)
 
8

 
10

 
(2
)
 
28

 
103

 
(8
)
Total
771

 
$
13,096

 
$
(668
)
 
139

 
$
1,151

 
$
(46
)
 
910

 
$
14,247

 
$
(714
)
(1) Unrealized losses of $13 million due to credit-related factors is recorded in the allowance for credit losses as of March 31, 2020.

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
)

As part of Ameriprise Financial’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities during the first quarter of 2020 is primarily attributable to wider credit spreads, partially offset by lower interest rates.
The following table presents a rollforward of the allowance for credit losses on Available-for-Sale securities:
 
Corporate Debt Securities
(in millions)
Balance, January 1, 2020 (1)
$
—

Additions for which credit losses were not previously recorded
13

Balance, March 31, 2020
$
13


(1) Prior to January 1, 2020, credit losses on Available-for-Sale securities were not recorded in an allowance but were recorded as a reduction of the book value of the security if the security was other-than-temporarily impaired. There is no adoption impact due to the prospective transition for Available-for-Sale securities.
Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in net investment income were as follows:
 
Three Months Ended
March 31,
2020
 
2019
(in millions)
Gross realized investment gains
$
8

 
$
19

Gross realized investment losses
(3
)
 
(9
)
Credit losses
(13
)
 
(5
)
Total
$
(8
)
 
$
5


Credit losses for the three months ended March 31, 2020 primarily related to recording an allowance for credit losses on certain corporate debt securities, primarily in the oil and gas industry. The Company recognized an impairment of $5 million in the first quarter of 2019 on investments held by Ameriprise Auto & Home Insurance (“AAH”) as the Company no longer intended to hold the securities until the recovery of fair value to book value.
See Note 15 for a rollforward of net unrealized investment gains (losses) included in AOCI.
Available-for-Sale securities by contractual maturity as of March 31, 2020 were as follows:
 
Amortized Cost
 
Fair Value
(in millions)
Due within one year
$
2,700

 
$
2,706

Due after one year through five years
4,749

 
4,741

Due after five years through 10 years
2,479

 
2,562

Due after 10 years
3,980

 
4,643

 
13,908

 
14,652

Residential mortgage backed securities
9,734

 
9,715

Commercial mortgage backed securities
5,478

 
5,395

Asset backed securities
2,129

 
2,084

Total
$
31,249

 
$
31,846


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.