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Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of assets and liabilities held by consolidated investment entities 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:



	March 31, 2020
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Cash equivalents	$	2,680	$	4,520	$	—	$	7,200
Available-for-Sale securities:
Corporate debt securities	—		10,960		734		11,694
Residential mortgage backed securities	—		9,698		17		9,715
Commercial mortgage backed securities	—		5,395		—		5,395
Asset backed securities	—		2,067		17		2,084
State and municipal obligations	—		1,330		—		1,330
U.S. government and agency obligations	1,376		—		—		1,376
Foreign government bonds and obligations	—		252		—		252
Total Available-for-Sale securities	1,376		29,702		768		31,846
Investments at net asset value (“NAV”)							7		⁽¹⁾
Trading and other securities	13		21		—		34
Separate account assets at NAV							75,305		⁽¹⁾
Investments and cash equivalents segregated for regulatory purposes	25		—		—		25
Other assets:
Interest rate derivative contracts	1		3,096		—		3,097
Equity derivative contracts	662		1,893		—		2,555
Credit derivative contracts	—		13		—		13
Foreign exchange derivative contracts	2		40		—		42
Total other assets	665		5,042		—		5,707
Total assets at fair value	$	4,759	$	39,285	$	768	$	120,124



Liabilities
Policyholder account balances, future policy benefits and claims:
Fixed deferred indexed annuity embedded derivatives	$	—	$	2	$	33		$	35
IUL embedded derivatives	—		—		725			725
GMWB and GMAB embedded derivatives	—		—		3,276			3,276			⁽²⁾
Structured annuity embedded derivatives	—		—		(9		)	(9		)
Total policyholder account balances, future policy benefits and claims	—		2		4,025			4,027			⁽³⁾
Customer deposits	—		5		—			5
Other liabilities:
Interest rate derivative contracts	—		1,238		—			1,238
Equity derivative contracts	296		1,944		—			2,240
Foreign exchange derivative contracts	3		16		—			19
Other	3		10		42			55
Total other liabilities	302		3,208		42			3,552
Total liabilities at fair value	$	302	$	3,215	$	4,067		$	7,584



	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:
Fixed deferred indexed annuity embedded derivatives	$	—	$	3	$	43	$	46
IUL embedded derivatives	—		—		881		881
GMWB and GMAB embedded derivatives	—		—		763		763		⁽⁴⁾
Total policyholder account balances, future policy benefits and claims	—		3		1,687		1,690		⁽⁵⁾
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


⁽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 $3.3 billion of individual contracts in a liability position and $12 million of individual contracts in an asset position as of March 31, 2020.


⁽³⁾	The Company’s adjustment for nonperformance risk resulted in a $(2.7) billion cumulative increase (decrease) to the embedded derivatives as of March 31, 2020.


⁽⁴⁾	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.

⁽⁵⁾

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

Schedule of debt of the consolidated investment entities and the stated interest rates [Table Text Block]

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



	Outstanding Balance						Stated Interest Rate
	March 31, 2020			December 31, 2019			March 31, 2020		December 31, 2019
	(in millions)
Long-term debt:
Senior notes due 2020	$	—		$	750		—	%	5.3	%
Senior notes due 2022	500			500			3.0		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	54			57			N/A		N/A
Other ⁽¹⁾	(10		)	(10		)	N/A		N/A
Total long-term debt	2,344			3,097

Short-term borrowings:
Federal Home Loan Bank (“FHLB”) advances	200			201			1.4		1.8
Total	$	2,544		$	3,298

⁽¹⁾ Amounts include adjustments for fair value hedges on the Company’s long-term debt and unamortized discount and debt issuance costs. See Note 14 for information on the Company’s fair value hedges.

Variable Interest Entity, Primary Beneficiary [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

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

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



	Syndicated Loans
	(in millions)
Balance, January 1, 2020	$	143
Total gains (losses) included in:
Net income	(39		)	⁽¹⁾
Purchases	43
Sales	(7		)
Settlements	(10		)
Transfers into Level 3	248
Transfers out of Level 3	(76		)
Balance, March 31, 2020	$	302

Changes in unrealized gains (losses) included in income relating to assets held at March 31, 2020	$	(37	)	⁽¹⁾



	Syndicated Loans
	(in millions)
Balance, January 1, 2019	$	226
Purchases	22
Sales	(1		)
Settlements	(7		)
Transfers into Level 3	25
Transfers out of Level 3	(148		)
Balance, March 31, 2019	$	117

Changes in unrealized gains (losses) included in income relating to assets held at March 31, 2019	$	—

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

Variable Interest Entity, Primary Beneficiary [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis [Table Text Block]

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



	March 31, 2020
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments:
Corporate debt securities	$	—	$	7	$	—	$	7
Common stocks	1		—		—		1
Syndicated loans	—		1,088		302		1,390
Total investments	1		1,095		302		1,398
Receivables	—		3		—		3
Total assets at fair value	$	1	$	1,098	$	302	$	1,401

Liabilities
Debt ⁽¹⁾	$	—	$	1,376	$	—	$	1,376
Other liabilities	—		106		—		106
Total liabilities at fair value	$	—	$	1,482	$	—	$	1,482



	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

⁽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 $1.4 billion and $1.7 billion as of March 31, 2020 and December 31, 2019, respectively.

Schedule of fair value and unpaid principal balance of assets and liabilities carried at fair value under the fair value option [Table Text Block]

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



	March 31, 2020			December 31, 2019
	(in millions)
Syndicated loans
Unpaid principal balance	$	1,696		$	1,678
Excess unpaid principal over fair value	(306		)	(81		)
Fair value	$	1,390		$	1,597
Fair value of loans more than 90 days past due	$	3		$	4
Fair value of loans in nonaccrual status	73			42
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both	64			18

Debt
Unpaid principal balance	$	1,732		$	1,761
Excess unpaid principal over fair value	(356		)	(133		)
Carrying value ⁽¹⁾	$	1,376		$	1,628

⁽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 $1.4 billion and $1.7 billion as of March 31, 2020 and December 31, 2019, respectively.

Schedule of debt of the consolidated investment entities and the stated interest rates [Table Text Block]

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



	Carrying Value				Weighted Average Interest Rate
	March 31, 2020		December 31, 2019		March 31, 2020		December 31, 2019
	(in millions)
Debt of consolidated CLOs due 2025-2030	$	1,376	$	1,628	3.3	%	3.5	%