Investments

3 Months Ended

Mar. 31, 2024

Investments [Abstract]

Investments

Investments

The following is a summary of Ameriprise Financial investments:

	March 31, 2024		December 31, 2023
	(in millions)
Available-for-Sale securities, at fair value	$	52,246	$	51,562
Mortgage loans (allowance for credit losses: 2024, $14; 2023, $14)	2,155		2,118
Policy loans	926		912
Other investments (allowance for credit losses: 2024, $6; 2023, $6)	922		897
Total	$	56,249	$	55,489

Other investments primarily reflect the Company’s interests in affordable housing partnerships, trading securities, equity securities, seed money investments in proprietary funds, 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,
	2024		2023
	(in millions)
Investment income on fixed maturities	$	754	$	571
Net realized gains (losses)	1		4
Consolidated investment entities	45		42
Other (1)	101		81
Total	$	901	$	698

(1) Prior period amount associated with affordable housing partnerships has been reclassified to Other to conform to current year presentation.

Available-for-Sale securities distributed by type were as follows:

	March 31, 2024
Description of Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
	(in millions)
Corporate debt securities	$	13,154	$	291	$	(590)	$	(1)	$	12,854
Residential mortgage backed securities	22,585		77		(1,220)		—		21,442
Commercial mortgage backed securities	6,312		14		(303)		—		6,023
Asset backed securities	8,177		31		(52)		—		8,156
State and municipal obligations	726		52		(19)		(1)		758
U.S. government and agency obligations	2,982		—		—		—		2,982
Foreign government bonds and obligations	19		—		(1)		—		18
Other securities	13		—		—		—		13
Total	$	53,968	$	465	$	(2,185)	$	(2)	$	52,246

Description of Securities	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
	(in millions)
Corporate debt securities	$	12,675	$	409	$	(507)	$	(1)	$	12,576
Residential mortgage backed securities	22,130		107		(1,171)		—		21,066
Commercial mortgage backed securities	6,380		11		(341)		—		6,050
Asset backed securities	8,353		25		(59)		—		8,319
State and municipal obligations	719		62		(20)		(1)		760
U.S. government and agency obligations	2,739		1		—		—		2,740
Foreign government bonds and obligations	19		—		(1)		—		18
Other securities	33		—		—		—		33
Total	$	53,048	$	615	$	(2,099)	$	(2)	$	51,562

As of March 31, 2024 and December 31, 2023, accrued interest of $330 million and $319 million, respectively, is excluded from the amortized cost basis of Available-for-Sale securities in the tables above and is recorded in Receivables.

As of both March 31, 2024 and December 31, 2023, fixed maturity securities comprised approximately 93% 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, 2024 and December 31, 2023, the Company’s internal analysts rated $420 million and $282 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, 2024						December 31, 2023
	Amortized Cost		Fair Value		Percent of Total Fair Value		Amortized Cost		Fair Value		Percent of Total Fair Value
	(in millions, except percentages)
AAA	$	26,371	$	25,540	49	%	$	25,235	$	24,342	47	%
AA	13,406		12,830		24		14,013		13,534		26
A	3,305		3,326		6		3,073		3,139		6
BBB	10,583		10,252		20		10,396		10,216		20
Below investment grade (1)	303		298		1		331		331		1
Total fixed maturities	$	53,968	$	52,246	100	%	$	53,048	$	51,562	100	%

(1) The amortized cost and fair value of below investment grade securities includes interest in non-consolidated CLOs managed by the Company of $1 million as of both March 31, 2024 and December 31, 2023. These securities are not rated but are included in below investment grade due to their risk characteristics.

As of March 31, 2024 and December 31, 2023, approximately 85% and 83% of securities rated AA were GNMA, FNMA and FHLMC mortgage backed securities, respectively. No holdings of any issuer were greater than 10% of the Company’s total equity as of both March 31, 2024 and December 31, 2023.

The following tables summarize the fair value and gross unrealized losses on Available-for-Sale securities, aggregated by major investment type and the length of time that individual securities have been in a continuous unrealized loss position for which no allowance for credit losses has been recorded:

Description of Securities	March 31, 2024
	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	176	$	2,371	$	(25)	367	$	5,179	$	(565)	543	$	7,550	$	(590)
Residential mortgage backed securities	110	3,747		(31)		742	10,772		(1,189)		852	14,519		(1,220)
Commercial mortgage backed securities	10	163		—		283	4,370		(303)		293	4,533		(303)
Asset backed securities	44	919		(2)		80	987		(50)		124	1,906		(52)
State and municipal obligations	6	17		—		51	152		(19)		57	169		(19)
U.S. government and agency obligations	14	1,318		—		1	—		—		15	1,318		—
Foreign government bonds and obligations	2	5		—		3	12		(1)		5	17		(1)
Other securities	1	13		—		—	—		—		1	13		—
Total	363	$	8,553	$	(58)	1,527	$	21,472	$	(2,127)	1,890	$	30,025	$	(2,185)

Description of Securities	December 31, 2023
	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	97	$	1,276	$	(11)	376	$	5,197	$	(496)	473	$	6,473	$	(507)
Residential mortgage backed securities	82	3,052		(25)		734	10,677		(1,146)		816	13,729		(1,171)
Commercial mortgage backed securities	31	747		(9)		277	4,092		(332)		308	4,839		(341)
Asset backed securities	49	885		(2)		116	2,840		(57)		165	3,725		(59)
State and municipal obligations	5	29		(1)		49	138		(19)		54	167		(20)
U.S. government and agency obligations	11	955		—		1	—		—		12	955		—
Foreign government bonds and obligations	—	—		—		3	12		(1)		3	12		(1)
Total	275	$	6,944	$	(48)	1,556	$	22,956	$	(2,051)	1,831	$	29,900	$	(2,099)

As part of the Company’s ongoing monitoring process, management determined that the increase in total gross unrealized losses on its Available-for-Sale securities for which an allowance for credit losses has not been recognized during the three months ended March 31, 2024 is primarily attributable to the impact of higher interest rates. As of March 31, 2024, the Company did not recognize these unrealized losses in earnings because it was determined that such losses were due to non-credit factors. The Company does not intend to sell these securities and does not believe that it is more likely than not that the Company will be required to sell these securities before the anticipated recovery of the remaining amortized cost basis. As of March 31, 2024 and December 31, 2023, approximately 97% and 96%, respectively, of the total of Available-for-Sale securities with gross unrealized losses were considered investment grade.

The following table presents rollforwards of the allowance for credit losses on Available-for-Sale securities:

	Corporate Debt Securities		State and Municipal Obligations		Total
	(in millions)
Balance at January 1, 2024	$	1	$	1	$	2
Additional increases (decreases) on securities that had an allowance recorded in a previous period	—		—		—
Balance at March 31, 2024	$	1	$	1	$	2
Balance at January 1, 2023	$	20	$	2	$	22
Additional increases (decreases) on securities that had an allowance recorded in a previous period	3		—		3
Balance at March 31, 2023	$	23	$	2	$	25

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,
	2024 (1)		2023
	(in millions)
Gross realized investment gains	$	—	$	10
Gross realized investment losses	—		(2)
Credit reversals (losses)	—		(3)
Other impairments	—		(2)
Total	$	—	$	3

1) No realized gains or losses on Available-for-Sale securities, including credit losses and other impairments, exceeded $1 million for the three months ended March 31, 2024.

Credit losses for the three months ended March 31, 2023 primarily related to recording an allowance for credit losses on a corporate debt security in the communications industry. Other impairments for the three months ended March 31, 2023 related to Available-for-Sale securities which the Company intended to sell.

See Note 15 for a rollforward of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss) (“AOCI”).

Available-for-Sale securities by contractual maturity as of March 31, 2024 were as follows:

	Amortized Cost		Fair Value
	(in millions)
Due within one year	$	4,561	$	4,551
Due after one year through five years	2,468		2,412
Due after five years through 10 years	4,611		4,289
Due after 10 years	5,254		5,373
	16,894		16,625
Residential mortgage backed securities	22,585		21,442
Commercial mortgage backed securities	6,312		6,023
Asset backed securities	8,177		8,156
Total	$	53,968	$	52,246

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.