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Fair Values of Assets and Liabilities (Tables)
6 Months Ended
Jun. 30, 2024
Fair Values of Assets and Liabilities  
Summary of significant unobservable inputs used in fair value measurements of Level 3 assets and liabilities
The following tables provide a summary of the significant inputs and assumptions used in the fair value measurements developed by the Company or reasonably available to the Company of market risk benefits:
June 30, 2024
Fair ValueValuation TechniqueSignificant Inputs and AssumptionsRangeWeighted
 Average
(in millions)
Market risk benefits$(830)Discounted cash flow
Utilization of guaranteed withdrawals (1)
0.0%48.0%11.6%
Surrender rate (2)
0.3%75.0%3.6%
Market volatility (3)
0.0%25.0%10.3%
Nonperformance risk (4)
75 bps75 bps
Mortality rate (5)
0.0%41.6%1.6%
December 31, 2023
Fair ValueValuation TechniqueSignificant Inputs and AssumptionsRangeWeighted
 Average
(in millions)
Market risk benefits$335 Discounted cash flow
Utilization of guaranteed withdrawals (1)
0.0%48.0%11.6%
Surrender rate (2)
0.3%75.0%3.7%
Market volatility (3)
0.0%25.2%10.6%
Nonperformance risk (4)
85 bps85 bps
Mortality rate (5)
0.0%41.6%1.6%
(1) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. The weighted average utilization rate represents the average assumption, weighted based on the benefit base. The calculation excludes policies that have already started taking withdrawals.
(2) The weighted average surrender rate represents the average assumption weighted based on the account value of each contract.
(3) Market volatility represents the implied volatility of each contractholder’s mix of funds. The weighted average market volatility represents the average volatility across all contracts, weighted by the size of the guaranteed benefit.
(4) The nonperformance risk is the spread added to the U.S. Treasury curve.
(5) The weighted average mortality rate represents the average assumption weighted based on the account value of each contract.
The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities:
 
June 30, 2024
Fair ValueValuation TechniqueUnobservable InputRange Weighted Average
(in millions)
Corporate debt securities (private placements)$544 Discounted cash flow
Yield/spread to U.S. Treasuries (1)
0.9%2.3%1.3%
Asset backed securities$Discounted cash flow
Annual short-term default rate (2)
4.0%4.0%
Annual long-term default rate (2)
3.5%3.5%
Discount rate27.0%27.0%
Constant prepayment rate15.0%15.0%
Loss recovery60.0%60.0%
Fixed deferred indexed annuity ceded embedded derivatives$55 Discounted cash flow
Surrender rate (3)
0.0%66.8%1.4%
Fixed deferred indexed annuity embedded derivatives$52 Discounted cash flow
Surrender rate (3)
0.0%66.8%1.4%
 
 
 
Nonperformance risk (4)
75 bps75 bps
IUL embedded derivatives$944 Discounted cash flow
Nonperformance risk (4)
75 bps75 bps
Structured variable annuity embedded derivatives $1,896 Discounted cash flow
Surrender rate (3)
0.5%75.0%2.5%
Nonperformance risk (4)
75 bps75 bps
Contingent consideration liabilities$69 Discounted cash flow
Discount rate (5)
0.0%10.5%3.1%

 
December 31, 2023
Fair ValueValuation TechniqueUnobservable InputRangeWeighted Average
(in millions)
Corporate debt securities (private placements)$469 Discounted cash flow
Yield/spread to U.S. Treasuries (1)
1.0%2.4%1.2%
Asset backed securities$Discounted cash flow
Annual short-term default rate (2)
3.0%3.0%
Annual long-term default rate (2)
3.5%3.5%
Discount rate29.0%29.0%
Constant prepayment rate10.0%10.0%
Loss recovery63.6%63.6%
Fixed deferred indexed annuity ceded embedded derivatives$51 Discounted cash flow
Surrender rate (3)
0.0%66.8%1.4%
Fixed deferred indexed annuity embedded derivatives$49 Discounted cash flow
Surrender rate (3)
0.0%66.8%1.4%
 
Nonperformance risk (4)
85 bps85 bps
IUL embedded derivatives$873 Discounted cash flow
Nonperformance risk (4)
85 bps85 bps
Structured variable annuity embedded derivatives$1,011 Discounted cash flow
Surrender rate (3)
0.5%75.0%2.6%
Nonperformance risk (4)
85 bps85 bps
Contingent consideration liabilities$76 Discounted cash flow
Discount rate (5)
0.0%10.5%2.9%
(1) The weighted average for the yield/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 weighted average surrender rate represents the average assumption weighted based on the account value of each contract.
(4) The nonperformance risk is the spread added to the U.S. Treasury curve.
(5) 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
The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value:
 June 30, 2024
Carrying ValueFair Value
Level 1Level 2Level 3Total
(in millions)
Financial Assets
Mortgage loans, net$2,233 $— $363 $1,719 $2,082 
Policy loans947 — 947 — 947 
Receivables 9,540 441 1,702 6,156 8,299 
Restricted and segregated cash688 688 — — 688 
Other investments and assets301 — 246 56 302 
Financial Liabilities
Policyholder account balances, future policy benefits and claims
$18,370 $— $— $15,524 $15,524 
Investment certificate reserves12,517 — — 12,466 12,466 
Banking and brokerage deposits23,742 23,742 — — 23,742 
Separate account liabilities — investment contracts3,118 — 3,118 — 3,118 
Debt and other liabilities4,067 464 3,561 4,029 
 December 31, 2023
Carrying ValueFair Value
Level 1Level 2Level 3Total
(in millions)
Financial Assets
Mortgage loans, net$2,118 $— $280 $1,692 $1,972 
Policy loans912 — 912 — 912 
Receivables9,453 146 1,621 6,577 8,344 
Restricted and segregated cash936 936 — — 936 
Other investments and assets338 — 283 55 338 
Financial Liabilities
Policyholder account balances, future policy benefits and claims$16,641 $— $— $14,243 $14,243 
Investment certificate reserves13,461 — — 13,420 13,420 
Banking and brokerage deposits23,886 23,886 — — 23,886 
Separate account liabilities — investment contracts3,155 — 3,155 — 3,155 
Debt and other liabilities3,769 166 3,610 3,781 
Ameriprise Financial  
Fair Values of Assets and Liabilities  
Schedule of balances of assets and liabilities 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 (See Note 4 for the balances of assets and liabilities for consolidated investment entities): 
 June 30, 2024 
Level 1Level 2Level 3Total
(in millions)
Assets
Cash equivalents$1,176 $3,840 $— $5,016  
Available-for-Sale securities:
Corporate debt securities— 12,388 544 12,932  
Residential mortgage backed securities— 21,697 57 21,754  
Commercial mortgage backed securities— 5,663 — 5,663  
Asset backed securities— 7,806 24 7,830  
State and municipal obligations— 736 — 736  
U.S. government and agency obligations2,762 — — 2,762  
Foreign government bonds and obligations— 18 — 18  
Total Available-for-Sale securities2,762 48,308 625 51,695  
Investments at net asset value (“NAV”)11 (1)
Trading and other securities301 24 — 325 
Separate account assets at NAV79,098 (1)
Investments and cash equivalents segregated for regulatory purposes685 — — 685 
Market risk benefits— — 2,082 2,082 (2)
Receivables:
Fixed deferred indexed annuity ceded embedded derivatives— — 55 55 
Other assets:
Interest rate derivative contracts— 218 — 218  
Equity derivative contracts114 7,048 — 7,162  
Credit derivative contracts— — 
Foreign exchange derivative contracts— 36 — 36  
Total other assets 114 7,303 — 7,417  
Total assets at fair value$5,038 $59,475 $2,762 $146,384  
Liabilities
Policyholder account balances, future policy benefits and claims:
Fixed deferred indexed annuity embedded derivatives$— $$52 $56  
IUL embedded derivatives— — 944 944  
Structured variable annuity embedded derivatives— — 1,896 1,896 
Total policyholder account balances, future policy benefits and claims— 2,892 2,896 (3)
Market risk benefits— — 1,252 1,252 (2)
Customer deposits— —  
Other liabilities:
Interest rate derivative contracts395 — 396  
Equity derivative contracts127 4,478 — 4,605  
Credit derivative contracts— 18 — 18 
Foreign exchange derivative contracts— — 
Other290 69 362  
Total other liabilities418 4,900 69 5,387  
Total liabilities at fair value$418 $4,913 $4,213 $9,544  
 December 31, 2023
 
Level 1Level 2Level 3Total
(in millions)
Assets
Cash equivalents$704 $4,325 $— $5,029  
Available-for-Sale securities:
Corporate debt securities— 12,107 469 12,576  
Residential mortgage backed securities— 21,066 — 21,066  
Commercial mortgage backed securities— 6,050 — 6,050  
Asset backed securities— 8,318 8,319  
State and municipal obligations— 760 — 760  
U.S. government and agency obligations2,740 — — 2,740  
Foreign government bonds and obligations— 18 — 18  
Other securities— 33 — 33 
Total Available-for-Sale securities2,740 48,352 470 51,562  
Investments at NAV10 (1)
Trading and other securities265 25 — 290  
Separate account assets at NAV77,457 (1)
Investments and cash equivalents segregated for regulatory purposes699 — — 699 
Market risk benefits— — 1,427 1,427 (2)
Receivables:
Fixed deferred indexed annuity ceded embedded derivatives— — 51 51 
Other assets:
Interest rate derivative contracts184 — 185  
Equity derivative contracts66 4,968 — 5,034  
Credit derivative contracts— — 
Foreign exchange derivative contracts21 — 22  
Total other assets68 5,177 — 5,245  
Total assets at fair value$4,476 $57,879 $1,948 $141,770  
Liabilities
Policyholder account balances, future policy benefits and claims:
Fixed deferred indexed annuity embedded derivatives$— $$49 $52  
IUL embedded derivatives— — 873 873  
Structured variable annuity embedded derivatives— — 1,011 1,011 
Total policyholder account balances, future policy benefits and claims— 1,933 1,936 (4)
Market risk benefits— — 1,762 1,762 (2)
Customer deposits— —  
Other liabilities:
Interest rate derivative contracts304 — 305  
Equity derivative contracts96 3,368 — 3,464  
Credit derivative contracts— 107 — 107 
Foreign exchange derivative contracts— 
Other259 76 338  
Total other liabilities357 3,788 76 4,221  
Total liabilities at fair value$357 $3,800 $3,771 $7,928  
(1) Amounts are comprised of financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy.
(2) See Note 10 for additional information related to market risk benefits, including the balances of and changes in market risk benefits as well as the significant inputs and assumptions used in the fair value measurements of market risk benefits.
(3) The Company’s adjustment for nonperformance risk resulted in a $216 million cumulative decrease to the embedded derivatives as of June 30, 2024.
(4) The Company’s adjustment for nonperformance risk resulted in a $195 million cumulative decrease to the embedded derivatives as of December 31, 2023.
Summary of changes in Level 3 assets measured at fair value on a recurring basis
The following tables provide a summary of changes in Level 3 assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis:
Available-for-Sale SecuritiesReceivables
Corporate Debt SecuritiesResidential Mortgage Backed SecuritiesAsset Backed SecuritiesTotalFixed Deferred Indexed Annuity Ceded Embedded Derivatives
(in millions)
Balance at April 1, 2024
$505 $25 $$531 $54 
Total gains (losses) included in:
Net income— — — — (1)
Other comprehensive income (loss)(1)— — — 
Purchases50 60 23 133 — 
Settlements(12)(2)— (14)(1)
Transfers out of Level 3— (25)— (25)— 
Balance at June 30, 2024
$544 $57 $24 $625 $55 
Policyholder Account Balances, Future Policy Benefits and ClaimsOther Liabilities
Fixed Deferred Indexed Annuity Embedded DerivativesIUL Embedded DerivativesStructured Variable Annuity Embedded DerivativesTotal
(in millions)
Balance at April 1, 2024
$52 $888 $1,620 $2,560 $71 
Total (gains) losses included in:
Net income(2)91 (2)325 (3)417 (4)
Issues— 39 47 
Settlements(1)(43)(88)(132)(9)
Balance at June 30, 2024
$52 $944 $1,896 $2,892 $69 
Changes in unrealized (gains) losses in net income relating to liabilities held at June 30, 2024
$— $91 (2)$325 (3)$416 $— 
Available-for-Sale SecuritiesReceivables
Corporate Debt SecuritiesAsset Backed SecuritiesTotalFixed Deferred Indexed Annuity Ceded Embedded Derivatives
(in millions)
Balance at April 1, 2023
$440 $$445 $48 
Total gains (losses) included in:
Net income— — — (1)
Other comprehensive income (loss)(7)— (7)— 
Purchases23 — 23 — 
Settlements(10)(2)(12)(1)
Balance at June 30, 2023
$446 $$449 $49 
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at June 30, 2023
$(7)$— $(7)$— 
Policyholder Account Balances, Future Policy Benefits and ClaimsOther Liabilities
Fixed Deferred Indexed Annuity Embedded DerivativesIUL Embedded DerivativesStructured Variable Annuity Embedded DerivativesTotal
(in millions)
Balance at April 1, 2023
$44 $771 $142 $957 $70 
Total (gains) losses included in:
Net income(2)54 (2)426 (3)482 (4)
Issues— 16 19 35 19 
Settlements— (32)(30)(62)(12)
Balance at June 30, 2023
$46 $809 $557 $1,412 $78 
Changes in unrealized (gains) losses in net income relating to liabilities held at June 30, 2023
$— $54 (2)$426 (3)$480 $— 
Available-for-Sale SecuritiesReceivables
Corporate Debt SecuritiesResidential Mortgage Backed SecuritiesAsset Backed SecuritiesTotalFixed Deferred Indexed Annuity Ceded Embedded Derivatives
(in millions)
Balance at January 1, 2024
$469 $— $$470 $51 
Total gains (losses) included in:
Net income— — — — (1)
Other comprehensive income (loss)(2)(1)— (3)— 
Purchases102 85 23 210 — 
Settlements(25)(2)— (27)(2)
Transfers out of Level 3— (25)— (25)— 
Balance at June 30, 2024
$544 $57 $24 $625 $55 
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at June 30, 2024
$(3)$— $— $(3)$— 
Policyholder Account Balances, Future Policy Benefits and ClaimsOther Liabilities
Fixed Deferred Indexed Annuity Embedded DerivativesIUL Embedded DerivativesStructured Variable Annuity Embedded DerivativesTotal
(in millions)
Balance at January 1, 2024
$49 $873 $1,011 $1,933 $76 
Total (gains) losses included in:
Net income(2)133 (2)953 (3)1,091 (4)
Issues— 14 76 90 
Settlements(2)(76)(144)(222)(17)
Balance at June 30, 2024
$52 $944 $1,896 $2,892 $69 
Changes in unrealized (gains) losses in net income relating to liabilities held at June 30, 2024
$— $133 
(2)
$953 
(3)
$1,086 $— 
Available-for-Sale SecuritiesReceivables
Corporate Debt SecuritiesAsset Backed SecuritiesTotalFixed Deferred Indexed Annuity Ceded Embedded Derivatives
(in millions)
Balance at January 1, 2023
$405 $$411 $48 
Total gains (losses) included in:
Net income— — — (1)
Other comprehensive income (loss)— — 
Purchases78 — 78 — 
Settlements(38)(3)(41)(1)
Balance at June 30, 2023
$446 $$449 $49 
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at June 30, 2023
$$— $$— 
Policyholder Account Balances, Future Policy Benefits and ClaimsOther Liabilities
Fixed Deferred Indexed Annuity Embedded DerivativesIUL Embedded DerivativesStructured Variable Annuity Embedded DerivativesTotal
(in millions)
Balance at January 1, 2023
$44 $739 $(137)(5)$646 $62 
Total (gains) losses included in:
Net income(2)92 (2)689 (3)784 (4)
Other comprehensive income (loss)— — — — 
Issues— 40 31 71 33 
Settlements(1)(62)(26)(89)(19)
Balance at June 30, 2023
$46 $809 $557 $1,412 $78 
Changes in unrealized (gains) losses in net income relating to liabilities held at June 30, 2023
$— $92 
(2)
$689 
(3)
$781 $— 
(1) Included in Net investment income.
(2) Included in Interest credited to fixed accounts.
(3) Included in Benefits, claims, losses and settlement expenses.
(4) Included in General and administrative expense.
(5) The fair value of the structured variable annuity embedded derivatives was a net asset as of January 1, 2023 and the amount is presented as a contra liability.
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis
The following tables provide a summary of changes in Level 3 assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis:
Available-for-Sale SecuritiesReceivables
Corporate Debt SecuritiesResidential Mortgage Backed SecuritiesAsset Backed SecuritiesTotalFixed Deferred Indexed Annuity Ceded Embedded Derivatives
(in millions)
Balance at April 1, 2024
$505 $25 $$531 $54 
Total gains (losses) included in:
Net income— — — — (1)
Other comprehensive income (loss)(1)— — — 
Purchases50 60 23 133 — 
Settlements(12)(2)— (14)(1)
Transfers out of Level 3— (25)— (25)— 
Balance at June 30, 2024
$544 $57 $24 $625 $55 
Policyholder Account Balances, Future Policy Benefits and ClaimsOther Liabilities
Fixed Deferred Indexed Annuity Embedded DerivativesIUL Embedded DerivativesStructured Variable Annuity Embedded DerivativesTotal
(in millions)
Balance at April 1, 2024
$52 $888 $1,620 $2,560 $71 
Total (gains) losses included in:
Net income(2)91 (2)325 (3)417 (4)
Issues— 39 47 
Settlements(1)(43)(88)(132)(9)
Balance at June 30, 2024
$52 $944 $1,896 $2,892 $69 
Changes in unrealized (gains) losses in net income relating to liabilities held at June 30, 2024
$— $91 (2)$325 (3)$416 $— 
Available-for-Sale SecuritiesReceivables
Corporate Debt SecuritiesAsset Backed SecuritiesTotalFixed Deferred Indexed Annuity Ceded Embedded Derivatives
(in millions)
Balance at April 1, 2023
$440 $$445 $48 
Total gains (losses) included in:
Net income— — — (1)
Other comprehensive income (loss)(7)— (7)— 
Purchases23 — 23 — 
Settlements(10)(2)(12)(1)
Balance at June 30, 2023
$446 $$449 $49 
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at June 30, 2023
$(7)$— $(7)$— 
Policyholder Account Balances, Future Policy Benefits and ClaimsOther Liabilities
Fixed Deferred Indexed Annuity Embedded DerivativesIUL Embedded DerivativesStructured Variable Annuity Embedded DerivativesTotal
(in millions)
Balance at April 1, 2023
$44 $771 $142 $957 $70 
Total (gains) losses included in:
Net income(2)54 (2)426 (3)482 (4)
Issues— 16 19 35 19 
Settlements— (32)(30)(62)(12)
Balance at June 30, 2023
$46 $809 $557 $1,412 $78 
Changes in unrealized (gains) losses in net income relating to liabilities held at June 30, 2023
$— $54 (2)$426 (3)$480 $— 
Available-for-Sale SecuritiesReceivables
Corporate Debt SecuritiesResidential Mortgage Backed SecuritiesAsset Backed SecuritiesTotalFixed Deferred Indexed Annuity Ceded Embedded Derivatives
(in millions)
Balance at January 1, 2024
$469 $— $$470 $51 
Total gains (losses) included in:
Net income— — — — (1)
Other comprehensive income (loss)(2)(1)— (3)— 
Purchases102 85 23 210 — 
Settlements(25)(2)— (27)(2)
Transfers out of Level 3— (25)— (25)— 
Balance at June 30, 2024
$544 $57 $24 $625 $55 
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at June 30, 2024
$(3)$— $— $(3)$— 
Policyholder Account Balances, Future Policy Benefits and ClaimsOther Liabilities
Fixed Deferred Indexed Annuity Embedded DerivativesIUL Embedded DerivativesStructured Variable Annuity Embedded DerivativesTotal
(in millions)
Balance at January 1, 2024
$49 $873 $1,011 $1,933 $76 
Total (gains) losses included in:
Net income(2)133 (2)953 (3)1,091 (4)
Issues— 14 76 90 
Settlements(2)(76)(144)(222)(17)
Balance at June 30, 2024
$52 $944 $1,896 $2,892 $69 
Changes in unrealized (gains) losses in net income relating to liabilities held at June 30, 2024
$— $133 
(2)
$953 
(3)
$1,086 $— 
Available-for-Sale SecuritiesReceivables
Corporate Debt SecuritiesAsset Backed SecuritiesTotalFixed Deferred Indexed Annuity Ceded Embedded Derivatives
(in millions)
Balance at January 1, 2023
$405 $$411 $48 
Total gains (losses) included in:
Net income— — — (1)
Other comprehensive income (loss)— — 
Purchases78 — 78 — 
Settlements(38)(3)(41)(1)
Balance at June 30, 2023
$446 $$449 $49 
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at June 30, 2023
$$— $$— 
Policyholder Account Balances, Future Policy Benefits and ClaimsOther Liabilities
Fixed Deferred Indexed Annuity Embedded DerivativesIUL Embedded DerivativesStructured Variable Annuity Embedded DerivativesTotal
(in millions)
Balance at January 1, 2023
$44 $739 $(137)(5)$646 $62 
Total (gains) losses included in:
Net income(2)92 (2)689 (3)784 (4)
Other comprehensive income (loss)— — — — 
Issues— 40 31 71 33 
Settlements(1)(62)(26)(89)(19)
Balance at June 30, 2023
$46 $809 $557 $1,412 $78 
Changes in unrealized (gains) losses in net income relating to liabilities held at June 30, 2023
$— $92 
(2)
$689 
(3)
$781 $— 
(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) The fair value of the structured variable annuity embedded derivatives was a net asset as of January 1, 2023 and the amount is presented as a contra liability.