Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2021

Fair Values of Assets and Liabilities

Summary of significant unobservable inputs used in fair value measurements of Level 3 assets and liabilities

	December 31, 2021
	Fair Value		Valuation Technique	Unobservable Input	Range			Weighted  Average
	(in millions)
Corporate debt securities (private placements)	$	502	Discounted cash flow	Yield/spread to U.S. Treasuries (1)	0.8%	–	2.4%	1.1%
Asset backed securities	$	2	Discounted cash flow	Annual short-term default rate (2)	0.8%			0.8%
				Annual long-term default rate (2)	3.5%			3.5%
				Discount rate	12.0%			12.0%
				Constant prepayment rate	10.0%			10.0%
				Loss recovery	63.6%			63.6%
Fixed deferred indexed annuity ceded embedded derivatives	$	59	Discounted cash flow	Surrender rate (4)	0.0%	–	66.8%	1.4%
IUL embedded derivatives	$	905	Discounted cash flow	Nonperformance risk (3)	65 bps			65 bps
Fixed deferred indexed annuity embedded derivatives	$	56	Discounted cash flow	Surrender rate (4)	0.0%	–	66.8%	1.4%
				Nonperformance risk (3)	65 bps			65 bps
GMWB and GMAB embedded derivatives	$	1,486	Discounted cash flow	Utilization of guaranteed withdrawals (5) (6)	0.0%	–	48.0%	10.6%
				Surrender rate (4)	0.1%	–	55.7%	3.6%
				Market volatility (7) (8)	4.3%	–	16.8%	10.8%
				Nonperformance risk (3)	65 bps			65 bps
Structured variable annuity embedded derivatives	$	406	Discounted cash flow	Surrender rate (4)	0.8%	–	40.0%	0.9%
				Nonperformance risk (3)	65 bps			65 bps
Contingent consideration liabilities	$	61	Discounted cash flow	Discount rate (9)	0.0%	–	0.0%	0.0%

	December 31, 2020
	Fair Value		Valuation Technique	Unobservable Input	Range			Weighted  Average
	(in millions)
Corporate debt securities (private placements)	$	772	Discounted cash flow	Yield/spread to U.S. Treasuries (1)	1.0%	–	3.3%	1.5%
Asset backed securities	$	3	Discounted cash flow	Annual short-term default rate (2)	2.9%	–	3.0%	2.9%
				Annual long-term default rate (2)	3.5%	–	4.5%	3.8%
				Discount rate	13.0%			13.0%
				Constant prepayment rate	10.0%			10.0%
				Loss recovery	63.6%			63.6%
IUL embedded derivatives	$	935	Discounted cash flow	Nonperformance risk (3)	65 bps			65 bps
Fixed deferred indexed annuity embedded derivatives	$	49	Discounted cash flow	Surrender rate (4)	0.0%	–	50.0%	1.2%
				Nonperformance risk (3)	65 bps			65 bps
GMWB and GMAB embedded derivatives	$	2,316	Discounted cash flow	Utilization of guaranteed withdrawals (5) (6)	0.0%	–	48.0%	10.6%
				Surrender rate (4)	0.1%	–	73.5%	3.8%
				Market volatility (7) (8)	4.3%	–	17.1%	11.0%
				Nonperformance risk (3)	65 bps			65 bps
Structured variable annuity embedded derivatives	$	70	Discounted cash flow	Surrender rate (4)	0.8%	–	40.0%	0.9%
				Nonperformance risk (3)	65 bps			65 bps
Contingent consideration liabilities	$	43	Discounted cash flow	Discount rate (9)	0.0%	–	9.0%	3.1%

(1) The weighted average for the spread to U.S. Treasuries for corporate debt securities (private placements) is weighted based on the security’s market value as a percentage of the aggregate market value of the securities.

(2) The weighted average annual default rates of asset backed securities is weighted based on the security’s market value as a percentage of the aggregate market value of the securities.

(3) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives.

(4) The weighted average surrender rate is weighted based on the benefit base of each contract and represents the average assumption in the current year including the effect of a dynamic surrender formula.

(5) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year.

(6) The weighted average utilization rate represents the average assumption for the current year, weighting each policy evenly. The calculation excludes policies that have already started taking withdrawals.

(7) Market volatility represents the implied volatility of fund of funds and managed volatility funds.

(8) The weighted average market volatility represents the average volatility across all contracts, weighted by the size of the guaranteed benefit.

(9) The weighted average discount rate represents the average discount rate across all contingent consideration liabilities, weighted based on the size of the contingent consideration liability.

Schedule of carrying value and estimated fair value of financial instruments not reported at fair value

	December 31, 2021
	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
	(in millions)
Financial Assets
Mortgage loans, net	$	1,953	$	—	$	49	$	1,990	$	2,039
Policy loans	835		—		835		—		835
Receivables	10,509		135		1,669		9,404		11,208
Restricted and segregated cash	2,195		2,195		—		—		2,195
Other investments and assets	368		—		319		49		368
Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	12,342	$	—	$	—	$	13,264	$	13,264
Investment certificate reserves	5,297		—		—		5,290		5,290
Banking and brokerage deposits	14,931		14,931		—		—		14,931
Separate account liabilities — investment contracts	5,657		—		5,657		—		5,657
Debt and other liabilities	3,214		206		3,129		9		3,344

	December 31, 2020
	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
	(in millions)
Financial Assets
Mortgage loans, net	$	2,718	$	—	$	22	$	2,852	$	2,874
Policy loans	846		—		846		—		846
Receivables	3,563		147		1,258		2,398		3,803
Restricted and segregated cash	1,958		1,958		—		—		1,958
Other investments and assets	732		—		672		62		734
Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	9,990	$	—	$	—	$	11,686	$	11,686
Investment certificate reserves	6,752		—		—		6,752		6,752
Banking and brokerage deposits	10,891		10,891		—		—		10,891
Separate account liabilities — investment contracts	5,406		—		5,406		—		5,406
Debt and other liabilities	3,214		205		3,253		11		3,469

Ameriprise Financial

Fair Values of Assets and Liabilities

Schedule of balances of assets and liabilities measured at fair value on a recurring basis

	December 31, 2021
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Cash equivalents	$	2,341	$	3,478	$	—	$	5,819
Available-for-Sale securities:
Corporate debt securities	—		9,430		502		9,932
Residential mortgage backed securities	—		10,944		—		10,944
Commercial mortgage backed securities	—		4,951		35		4,986
Asset backed securities	—		3,647		7		3,654
State and municipal obligations	—		1,092		—		1,092
U.S. government and agency obligations	1,301		—		—		1,301
Foreign government bonds and obligations	—		92		—		92
Other securities	—		49		—		49
Total Available-for-Sale securities	1,301		30,205		544		32,050
Investments at net asset value (“NAV”)							11		(1)
Trading and other securities	217		25		—		242
Separate account assets at NAV							97,491		(1)
Investments and cash equivalents segregated for regulatory purposes	600		—		—		600
Receivables:
Fixed deferred indexed annuity ceded embedded derivatives	—		—		59		59
Other assets:
Interest rate derivative contracts	1		1,251		—		1,252
Equity derivative contracts	158		4,135		—		4,293
Credit derivative contracts	—		9		—		9
Foreign exchange derivative contracts	1		19		—		20
Total other assets	160		5,414		—		5,574
Total assets at fair value	$	4,619	$	39,122	$	603	$	141,846
Liabilities
Policyholder account balances, future policy benefits and claims:
Fixed deferred indexed annuity embedded derivatives	$	—	$	5	$	56	$	61
IUL embedded derivatives	—		—		905		905
GMWB and GMAB embedded derivatives	—		—		1,486		1,486		(2)
Structured variable annuity embedded derivatives	—		—		406		406
Total policyholder account balances, future policy benefits and claims	—		5		2,853		2,858		(3)
Customer deposits	—		4		—		4
Other liabilities:
Interest rate derivative contracts	1		467		—		468
Equity derivative contracts	101		3,653		—		3,754
Foreign exchange derivative contracts	1		—		—		1
Other	212		4		61		277
Total other liabilities	315		4,124		61		4,500
Total liabilities at fair value	$	315	$	4,133	$	2,914	$	7,362

	December 31, 2020
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Cash equivalents	$	2,935	$	2,506	$	—	$	5,441
Available-for-Sale securities:
Corporate debt securities	—		12,902		772		13,674
Residential mortgage backed securities	—		10,020		9		10,029
Commercial mortgage backed securities	—		6,088		—		6,088
Asset backed securities	—		3,297		32		3,329
State and municipal obligations	—		1,384		—		1,384
U.S. government and agency obligations	1,456		—		—		1,456
Foreign government bonds and obligations	—		262		—		262
Other securities	—		61		—		61
Total Available-for-Sale securities	1,456		34,014		813		36,283
Investments at NAV							8		(1)
Trading and other securities	61		27		—		88
Separate account assets at NAV							92,611		(1)
Investments and cash equivalents segregated for regulatory purposes	600		—		—		600
Other assets:
Interest rate derivative contracts	1		1,754		—		1,755
Equity derivative contracts	408		3,682		—		4,090
Credit derivative contracts	—		2		—		2
Foreign exchange derivative contracts	1		22		—		23
Total other assets	410		5,460		—		5,870
Total assets at fair value	$	5,462	$	42,007	$	813	$	140,901
Liabilities
Policyholder account balances, future policy benefits and claims:
Fixed deferred indexed annuity embedded derivatives	$	—	$	3	$	49	$	52
IUL embedded derivatives	—		—		935		935
GMWB and GMAB embedded derivatives	—		—		2,316		2,316		(4)
Structured variable annuity embedded derivatives	—		—		70		70
Total policyholder account balances, future policy benefits and claims	—		3		3,370		3,373		(5)
Customer deposits	—		8		—		8
Other liabilities:
Interest rate derivative contracts	—		734		—		734
Equity derivative contracts	183		3,388		—		3,571
Credit derivative contracts	—		1		—		1
Foreign exchange derivative contracts	2		4		—		6
Other	2		3		43		48
Total other liabilities	187		4,130		43		4,360
Total liabilities at fair value	$	187	$	4,141	$	3,413	$	7,741

(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 $1.6 billion of individual contracts in a liability position and $133 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2021.

(3) The Company’s adjustment for nonperformance risk resulted in a $598 million cumulative decrease to the embedded derivatives as of December 31, 2021.

(4) The fair value of the GMWB and GMAB embedded derivatives included $2.4 billion of individual contracts in a liability position and $67 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2020.

(5) The Company’s adjustment for nonperformance risk resulted in a $727 million cumulative decrease to the embedded derivatives as of December 31, 2020.

Summary of changes in Level 3 assets measured at fair value on a recurring basis

	Available-for-Sale Securities											Receivables
	Corporate Debt Securities		Residential Mortgage Backed Securities		Commercial Mortgage Backed Securities		Asset Backed Securities		Total			Fixed Deferred Indexed Annuity Ceded Embedded Derivatives
	(in millions)
Balance at January 1, 2021	$	772	$	9	$	—	$	32	$	813		$	—
Total gains (losses) included in:
Net income	(1)		—		—		—		(1)		(1)	3
Other comprehensive income (loss)	(10)		—		—		—		(10)			—
Purchases	108		78		35		—		221			—
Sales	—		—		—		(1)		(1)			—
Issues	—		—		—		—		—			57		(5)
Settlements	(119)		—		—		(2)		(121)			(1)
Transfers into Level 3	168		—		—		2		170			—
Transfers out of Level 3	(416)		(87)		—		(24)		(527)			—
Balance at December 31, 2021	$	502	$	—	$	35	$	7	$	544		$	59
Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2021	$	(1)	$	—	$	—	$	(1)	$	(2)	(1)	$	—
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2021	$	(8)	$	—	$	—	$	1	$	(7)		$	—

	Policyholder Account Balances, Future Policy Benefits and Claims														Other Liabilities
	Fixed Deferred Indexed Annuity Embedded Derivatives			IUL Embedded Derivatives			GMWB and GMAB Embedded Derivatives			Structured Variable Annuity Embedded Derivatives			Total
	(in millions)
Balance at January 1, 2021	$	49		$	935		$	2,316		$	70		$	3,370	$	43
Total (gains) losses included in:
Net income	10		(2)	68		(2)	(1,344)		(3)	393		(3)	(873)		(13)		(4)
Issues	—			—			369			(28)			341		45
Settlements	(3)			(98)			145			(29)			15		(14)
Balance at December 31, 2021	$	56		$	905		$	1,486		$	406		$	2,853	$	61
Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2021	$	—		$	68	(2)	$	(1,299)	(3)	$	—		$	(1,231)	$	—

	Available-for-Sale Securities
	Corporate Debt Securities		Residential Mortgage Backed Securities		Asset Backed Securities		Total
	(in millions)
Balance at January 1, 2020	$	750	$	17	$	19	$	786
Total gains (losses) included in:
Net income	(1)		—		—		(1)		(1)
Other comprehensive income (loss)	15		1		(1)		15
Purchases	62		220		—		282
Settlements	(54)		—		—		(54)
Transfers into Level 3	—		—		14		14
Transfers out of Level 3	—		(229)		—		(229)
Balance at December 31, 2020	$	772	$	9	$	32	$	813
Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2020	$	(1)	$	—	$	(1)	$	(2)	(1)
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2020	$	16	$	1	$	(1)	$	16

	Policyholder Account Balances, Future Policy Benefits and Claims														Other Liabilities
	Fixed Deferred Indexed Annuity Embedded Derivatives			IUL Embedded Derivatives			GMWB and GMAB Embedded Derivatives			Structured Variable Annuity Embedded Derivatives			Total
	(in millions)
Balance at January 1, 2020	$	43		$	881		$	763		$	—		$	1,687	$	44
Total (gains) losses included in:
Net income	4		(2)	76		(2)	1,152		(3)	91		(3)	1,323		(12)		(4)
Issues	3			61			362			(21)			405		20
Settlements	(1)			(83)			39			—			(45)		(9)
Balance at December 31, 2020	$	49		$	935		$	2,316		$	70		$	3,370	$	43
Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2020	$	—		$	76	(2)	$	1,206	(3)	$	—		$	1,282	$	—

	Available-for-Sale Securities
	Corporate Debt Securities		Residential Mortgage Backed Securities		Commercial Mortgage Backed Securities		Asset Backed Securities		Total
	(in millions)
Balance at January 1, 2019	$	913	$	136	$	20	$	6	$	1,075
Total gains (losses) included in:
Net income	(1)		—		—		—		(1)		(1)
Other comprehensive income (loss)	31		—		—		(1)		30
Purchases	55		477		—		18		550
Settlements	(248)		(12)		—		—		(260)
Transfers into Level 3	—		—		—		14		14
Transfers out of Level 3	—		(584)		(20)		(18)		(622)
Balance at December 31, 2019	$	750	$	17	$	—	$	19	$	786
Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2019	$	(1)	$	—	$	—	$	—	$	(1)	(1)

	Policyholder Account Balances, Future Policy Benefits and Claims											Other Liabilities
	Fixed Deferred Indexed Annuity Embedded Derivatives			IUL Embedded Derivatives			GMWB and GMAB Embedded Derivatives			Total
	(in millions)
Balance at January 1, 2019	$	14		$	628		$	328		$	970	$	30
Total (gains) losses included in:
Net income	8		(2)	209		(2)	80		(3)	297		(3)		(4)
Issues	21			113			361			495		18
Settlements	—			(69)			(6)			(75)		(1)
Balance at December 31, 2019	$	43		$	881		$	763		$	1,687	$	44
Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2019	$	—		$	209	(2)	$	82	(3)	$	291	$	—

(1) Included in Net investment income.

(2) Included in Interest credited to fixed accounts.

(3) Included in Benefits, claims, losses and settlement expenses.

(4) Included in General and administrative expense.

(5) Represents the amount of ceded embedded derivatives associated with fixed deferred annuity products reinsured in the third quarter of 2021. See Note 1 for additional information on the reinsurance transaction.

Summary of changes in Level 3 liabilities measured at fair value on a recurring basis

	Available-for-Sale Securities											Receivables
	Corporate Debt Securities		Residential Mortgage Backed Securities		Commercial Mortgage Backed Securities		Asset Backed Securities		Total			Fixed Deferred Indexed Annuity Ceded Embedded Derivatives
	(in millions)
Balance at January 1, 2021	$	772	$	9	$	—	$	32	$	813		$	—
Total gains (losses) included in:
Net income	(1)		—		—		—		(1)		(1)	3
Other comprehensive income (loss)	(10)		—		—		—		(10)			—
Purchases	108		78		35		—		221			—
Sales	—		—		—		(1)		(1)			—
Issues	—		—		—		—		—			57		(5)
Settlements	(119)		—		—		(2)		(121)			(1)
Transfers into Level 3	168		—		—		2		170			—
Transfers out of Level 3	(416)		(87)		—		(24)		(527)			—
Balance at December 31, 2021	$	502	$	—	$	35	$	7	$	544		$	59
Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2021	$	(1)	$	—	$	—	$	(1)	$	(2)	(1)	$	—
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2021	$	(8)	$	—	$	—	$	1	$	(7)		$	—

	Policyholder Account Balances, Future Policy Benefits and Claims														Other Liabilities
	Fixed Deferred Indexed Annuity Embedded Derivatives			IUL Embedded Derivatives			GMWB and GMAB Embedded Derivatives			Structured Variable Annuity Embedded Derivatives			Total
	(in millions)
Balance at January 1, 2021	$	49		$	935		$	2,316		$	70		$	3,370	$	43
Total (gains) losses included in:
Net income	10		(2)	68		(2)	(1,344)		(3)	393		(3)	(873)		(13)		(4)
Issues	—			—			369			(28)			341		45
Settlements	(3)			(98)			145			(29)			15		(14)
Balance at December 31, 2021	$	56		$	905		$	1,486		$	406		$	2,853	$	61
Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2021	$	—		$	68	(2)	$	(1,299)	(3)	$	—		$	(1,231)	$	—

	Available-for-Sale Securities
	Corporate Debt Securities		Residential Mortgage Backed Securities		Asset Backed Securities		Total
	(in millions)
Balance at January 1, 2020	$	750	$	17	$	19	$	786
Total gains (losses) included in:
Net income	(1)		—		—		(1)		(1)
Other comprehensive income (loss)	15		1		(1)		15
Purchases	62		220		—		282
Settlements	(54)		—		—		(54)
Transfers into Level 3	—		—		14		14
Transfers out of Level 3	—		(229)		—		(229)
Balance at December 31, 2020	$	772	$	9	$	32	$	813
Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2020	$	(1)	$	—	$	(1)	$	(2)	(1)
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2020	$	16	$	1	$	(1)	$	16

	Policyholder Account Balances, Future Policy Benefits and Claims														Other Liabilities
	Fixed Deferred Indexed Annuity Embedded Derivatives			IUL Embedded Derivatives			GMWB and GMAB Embedded Derivatives			Structured Variable Annuity Embedded Derivatives			Total
	(in millions)
Balance at January 1, 2020	$	43		$	881		$	763		$	—		$	1,687	$	44
Total (gains) losses included in:
Net income	4		(2)	76		(2)	1,152		(3)	91		(3)	1,323		(12)		(4)
Issues	3			61			362			(21)			405		20
Settlements	(1)			(83)			39			—			(45)		(9)
Balance at December 31, 2020	$	49		$	935		$	2,316		$	70		$	3,370	$	43
Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2020	$	—		$	76	(2)	$	1,206	(3)	$	—		$	1,282	$	—

	Available-for-Sale Securities
	Corporate Debt Securities		Residential Mortgage Backed Securities		Commercial Mortgage Backed Securities		Asset Backed Securities		Total
	(in millions)
Balance at January 1, 2019	$	913	$	136	$	20	$	6	$	1,075
Total gains (losses) included in:
Net income	(1)		—		—		—		(1)		(1)
Other comprehensive income (loss)	31		—		—		(1)		30
Purchases	55		477		—		18		550
Settlements	(248)		(12)		—		—		(260)
Transfers into Level 3	—		—		—		14		14
Transfers out of Level 3	—		(584)		(20)		(18)		(622)
Balance at December 31, 2019	$	750	$	17	$	—	$	19	$	786
Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2019	$	(1)	$	—	$	—	$	—	$	(1)	(1)

	Policyholder Account Balances, Future Policy Benefits and Claims											Other Liabilities
	Fixed Deferred Indexed Annuity Embedded Derivatives			IUL Embedded Derivatives			GMWB and GMAB Embedded Derivatives			Total
	(in millions)
Balance at January 1, 2019	$	14		$	628		$	328		$	970	$	30
Total (gains) losses included in:
Net income	8		(2)	209		(2)	80		(3)	297		(3)		(4)
Issues	21			113			361			495		18
Settlements	—			(69)			(6)			(75)		(1)
Balance at December 31, 2019	$	43		$	881		$	763		$	1,687	$	44
Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2019	$	—		$	209	(2)	$	82	(3)	$	291	$	—

(1) Included in Net investment income.

(2) Included in Interest credited to fixed accounts.

(3) Included in Benefits, claims, losses and settlement expenses.

(4) Included in General and administrative expense.

(5) Represents the amount of ceded embedded derivatives associated with fixed deferred annuity products reinsured in the third quarter of 2021. See Note 1 for additional information on the reinsurance transaction.