Fair Values of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2011

Fair Values of Assets and Liabilities

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

	December 31, 2011
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Cash equivalents	$	20	$	2,287	$	—	$	2,307
Available-for-Sale securities:
Corporate debt securities		—		16,685		1,355		18,040
Residential mortgage backed securities		—		7,198		198		7,396
Commercial mortgage backed securities		—		4,669		50		4,719
Asset backed securities		—		1,779		206		1,985
State and municipal obligations		—		2,130		—		2,130
U.S. government and agencies obligations		22		49		—		71
Foreign government bonds and obligations		—		144		—		144
Common stocks		2		2		5		9
Other debt obligations		—		11		—		11
Total Available-for-Sale securities		24		32,667		1,814		34,505
Trading securities		1		30		—		31
Separate account assets		—		66,780		—		66,780
Investments segregated for regulatory purposes		—		293		—		293
Other assets:
Interest rate derivative contracts		—		1,958		—		1,958
Equity derivative contracts		274		1,077		—		1,351
Credit derivative contracts		—		1		—		1
Foreign currency derivative contracts		—		7		—		7
Commodity derivative contracts		—		2		—		2
Total other assets		274		3,045		—		3,319
Total assets at fair value	$	319	$	105,102	$	1,814	$	107,235
Liabilities
Future policy benefits and claims:
EIA embedded derivatives	$	—	$	2	$	—	$	2
IUL embedded derivatives		—		3		—		3
GMWB and GMAB embedded derivatives		—		—		1,585		1,585
Total future policy benefits and claims		—		5		1,585		1,590	(1)
Customer deposits		—		6		—		6
Other liabilities:
Interest rate derivative contracts		—		1,209		—		1,209
Equity derivative contracts		297		764		—		1,061
Foreign currency derivative contracts		3		10		—		13
Other		—		2		—		2
Total other liabilities		300		1,985		—		2,285
Total liabilities at fair value	$	300	$	1,996	$	1,585	$	3,881

(1)

The Company's adjustment for nonperformance risk resulted in a $506 million cumulative decrease to the embedded derivative liability.

	December 31, 2010
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Cash equivalents	$	42	$	2,481	$	—	$	2,523
Available-for-Sale securities:
Corporate debt securities		—		15,281		1,325		16,606
Residential mortgage backed securities		—		3,011		4,247		7,258
Commercial mortgage backed securities		—		4,817		51		4,868
Asset backed securities		—		1,544		476		2,020
State and municipal obligations		—		1,582		—		1,582
U.S. government and agencies obligations		64		79		—		143
Foreign government bonds and obligations		—		108		—		108
Common stocks		2		3		5		10
Other debt obligations		—		24		—		24
Total Available-for-Sale securities		66		26,449		6,104		32,619
Trading securities		—		43		—		43
Separate account assets		—		68,330		—		68,330
Investments segregated for regulatory purposes		—		298		—		298
Other assets:
Interest rate derivative contracts		—		438		—		438
Equity derivative contracts		32		420		—		452
Credit derivative contracts		—		4		—		4
Foreign currency derivative contracts		1		—		—		1
Other		—		2		—		2
Total other assets		33		864		—		897
Assets held for sale		—		15		—		15
Total assets at fair value	$	141	$	98,480	$	6,104	$	104,725
Liabilities
Future policy benefits and claims:
EIA embedded derivatives	$	—	$	3	$	—	$	3
GMWB and GMAB embedded derivatives		—		—		421		421
Total future policy benefits and claims		—		3		421		424	(1)
Customer deposits		—		14		—		14
Other liabilities:
Interest rate derivative contracts		—		379		—		379
Equity derivative contracts		18		722		—		740
Credit derivative contracts		—		1		—		1
Foreign currency derivative contracts		1		—		—		1
Other		—		2		—		2
Total other liabilities		19		1,104		—		1,123
Total liabilities at fair value	$	19	$	1,121	$	421	$	1,561

(1)

The Company's adjustment for nonperformance risk resulted in a $197 million cumulative decrease to the embedded derivative liability.

Schedule of changes in level 3 assets and liabilities measured at fair value on a recurring basis

	Available-for-Sale Securities																	Future Policy Benefits and Claims: GMWB and GMAB Embedded Derivatives
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Common Stocks		Total
	(in millions)
Balance, January 1, 2011	$	1,325		$	4,247		$	51		$	476		$	5	$	6,104		$	(421	)
Total gains (losses) included in:
Net income		7			48			—			8			—		63	(1)		(1,007)	(2)
Other comprehensive income		11			(110	)		—			(18	)		—		(117	)		—
Purchases		189			556			104			118			—		967			—
Sales		(51	)		(2	)		—			—			—		(53	)		—
Issues		—			—			—			—			—		—			(149	)
Settlements		(122	)		(885	)		(4	)		(87	)		—		(1,098	)		(8	)
Transfers into Level 3		7			—			1			14			—		22			—
Transfers out of Level 3		(11	)		(3,656	)		(102	)		(305	)		—		(4,074	)		—
Balance, December 31, 2011	$	1,355		$	198		$	50		$	206		$	5	$	1,814		$	(1,585	)
Changes in unrealized gains (losses) relating to assets and liabilities held at December 31, 2011 included in:
Net investment income	$	—		$	(32	)	$	—		$	1		$	—	$	(31	)	$	—
Benefits, claims, losses and settlement expenses		—			—			—			—			—		—			(1,035	)

(1)

Included in net investment income in the Consolidated Statements of Operations.

(2)

Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations.

	Available-for-Sale Securities																			Future Policy Benefits and Claims: GMWB and GMAB Embedded Derivatives
	Corporate Debt Securities		Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Common Stocks		Other Structured Investments			Total
	(in millions)
Balance, January 1, 2010	$	1,252	$	3,982		$	72		$	455		$	4	$	58		$	5,823		$	(299	)
Total gains included in:
Net income		1		55			1			12			—		—			69	(1)		4	(2)
Other comprehensive income		30		292			10			38			1		—			371			—
Purchases, sales, issues and settlements, net		17		(61	)		112			(5	)		—		(58)	(3)		5			(126	)
Transfers into Level 3		25		—			—			—			—		—			25			—
Transfers out of Level 3		—		(21	)		(144	)		(24	)		—		—			(189	)		—
Balance, December 31, 2010	$	1,325	$	4,247		$	51		$	476		$	5	$	—		$	6,104		$	(421	)
Changes in unrealized gains (losses) relating to assets and liabilities held at December 31, 2010 included in:
Net investment income	$	—	$	54		$	—		$	11		$	—	$	—		$	65		$	—
Benefits, claims, losses and settlement expenses		—		—			—			—			—		—			—			(15	)

(1)

Included in net investment income in the Consolidated Statements of Operations.

(2)

Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations.

(3)

Represents the elimination of Ameriprise Financial's investment in CDOs, which were consolidated due to the adoption of a new accounting standard. See Note 2 and Note 4 for additional information related to the consolidation of CDOs.

Schedule of carrying value and estimated fair value of financial instruments

	December 31, 2011				December 31, 2010
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in millions)
Financial Assets
Commercial mortgage loans, net	$	2,589	$	2,772	$	2,577	$	2,671
Policy loans		742		715		733		808
Receivables		2,444		2,148		1,852		1,566
Restricted and segregated cash		1,500		1,500		1,516		1,516
Assets held for sale		—		—		18		18
Other investments and assets		390		388		331		338
Financial Liabilities
Future policy benefits and claims	$	15,064	$	16,116	$	15,328	$	15,768
Investment certificate reserves		2,766		2,752		3,127		3,129
Banking and brokerage customer deposits		7,078		7,091		5,638		5,642
Separate account liabilities		3,950		3,950		4,930		4,930
Debt and other liabilities		3,180		3,412		2,722		2,919