5. Investments

The following is a summary of Ameriprise Financial investments:

	December 31,

	2012		2011
	(in millions)
Available-for-Sale securities, at fair value	$	31,472	$	34,505
Mortgage loans, net		3,609		3,727
Policy and certificate loans		754		742
Other investments		1,042		979

Total	$	36,877	$	39,953

The following is a summary of net investment income:

	Years Ended December 31,

	2012			2011			2010
	(in millions)
Investment income on fixed maturities	$	1,768		$	1,917		$	1,946
Net realized gains		7			6			33
Affordable housing partnerships		(25	)		(32	)		(20	)
Other		73			64			75
Consolidated investment entities		110			91			275

Total net investment income	$	1,933		$	2,046		$	2,309

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

	December 31, 2012

Description of Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI(1)
	(in millions)
Corporate debt securities	$	16,628	$	2,196	$	(9	)	$	18,815	$	—
Residential mortgage backed securities		5,280		261		(112	)		5,429		(58	)
Commercial mortgage backed securities		3,120		299		—			3,419		—
Asset backed securities		1,204		75		(4	)		1,275		—
State and municipal obligations		2,034		241		(36	)		2,239		—
U.S. government and agencies obligations		49		9		—			58		—
Foreign government bonds and obligations		188		36		—			224		—
Common stocks		7		6		—			13		2

Total	$	28,510	$	3,123	$	(161	)	$	31,472	$	(56	)

	December 31, 2011

Description of Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI(1)
	(in millions)
Corporate debt securities	$	16,380	$	1,741	$	(81	)	$	18,040	$	—
Residential mortgage backed securities		7,756		287		(367	)		7,676		(154	)
Commercial mortgage backed securities		4,430		291		(2	)		4,719		—
Asset backed securities		1,652		61		(8	)		1,705		—
State and municipal obligations		2,026		162		(58	)		2,130		—
U.S. government and agencies obligations		61		10		—			71		—
Foreign government bonds and obligations		126		19		(1	)		144		—
Common stocks		5		4		—			9		—
Other debt obligations		11		—		—			11		—

Total	$	32,447	$	2,575	$	(517	)	$	34,505	$	(154	)

(1): Represents the amount of other-than-temporary impairment ("OTTI") losses in accumulated other comprehensive income. Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period.

At December 31, 2012 and 2011, fixed maturity securities comprised approximately 85% and 86%, respectively, 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. At December 31, 2012 and 2011, the Company's internal analysts rated $1.7 billion and $1.2 billion, respectively, of securities, using criteria similar to those used by NRSROs. A summary of fixed maturity securities by rating was as follows:

	December 31, 2012							December 31, 2011

Ratings	Amortized Cost		Fair Value		Percent of Total Fair Value			Amortized Cost		Fair Value		Percent of Total Fair Value
	(in millions, except percentages)
AAA	$	7,462	$	8,021		26	%	$	11,510	$	12,105		35	%
AA		1,620		1,827		6			1,942		2,087		6
A		5,456		6,069		19			5,012		5,442		16
BBB		11,939		13,575		43			11,818		13,050		38
Below investment grade		2,026		1,967		6			2,160		1,812		5

Total fixed maturities	$	28,503	$	31,459		100	%	$	32,442	$	34,496		100	%

At December 31, 2012 and 2011, approximately 35% and 36%, respectively, of the securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any other issuer were greater than 10% of total equity. The decrease in the fair value of AAA rated securities compared to the prior year was primarily due to sales and maturities, of which approximately $2.5 billion related to the sale of Ameriprise Bank's investment portfolio.

The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position:

	December 31, 2012

	Less than 12 months							12 months or more							Total
Description of Securities	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		76	$	801	$	(6	)		6	$	70	$	(3	)		82	$	871	$	(9	)
Residential mortgage backed securities		22		408		(5	)		134		658		(107	)		156		1,066		(112	)
Asset backed securities		9		108		(1	)		5		86		(3	)		14		194		(4	)
State and municipal obligations		13		34		(1	)		8		113		(35	)		21		147		(36	)

Total		120	$	1,351	$	(13	)		153	$	927	$	(148	)		273	$	2,278	$	(161	)

	December 31, 2011

	Less than 12 months							12 months or more							Total
Description of Securities	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		124	$	1,647	$	(40	)		10	$	259	$	(41	)		134	$	1,906	$	(81	)
Residential mortgage backed securities		121		1,424		(39	)		169		821		(328	)		290		2,245		(367	)
Commercial mortgage backed securities		14		182		(2	)		5		29		—			19		211		(2	)
Asset backed securities		33		388		(5	)		5		51		(3	)		38		439		(8	)
State and municipal obligations		—		—		—			53		229		(58	)		53		229		(58	)
Foreign government bonds and obligations		6		28		(1	)		—		—		—			6		28		(1	)

Total		298	$	3,669	$	(87	)		242	$	1,389	$	(430	)		540	$	5,058	$	(517	)

As part of Ameriprise Financial's ongoing monitoring process, management determined that a majority of the gross unrealized losses on its Available-for-Sale securities are attributable to movement in credit spreads primarily related to non-agency residential mortgage backed securities purchased prior to 2008.

The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Operations for other-than-temporary impairments related to credit losses on securities for which a portion of the securities' total other-than-temporary impairments was recognized in other comprehensive income:

	Years Ended December 31,

	2012			2011			2010
	(in millions)
Beginning balance	$	303		$	297		$	263
Credit losses for which an other-than-temporary impairment was not previously recognized		2			15			15
Credit losses for which an other-than-temporary impairment was previously recognized		32			19			19
Reductions for securities sold during the period (realized)		(161	)		(28	)		—

Ending balance	$	176		$	303		$	297

The change in net unrealized securities gains (losses) in other comprehensive income includes three components, net of tax: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit other-than-temporary impairment losses to credit losses; and (iii) other items primarily consisting of adjustments in asset and liability balances, such as DAC, DSIC, benefit reserves and reinsurance recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates.

The following table presents a rollforward of the net unrealized securities gains on Available-for-Sale securities included in accumulated other comprehensive income:

	Net Unrealized Securities Gains			Deferred Income Tax			Accumulated Other Comprehensive Income Related to Net Unrealized Securities Gains

	(in millions)
Balance at January 1, 2010	$	474		$	(164	)	$	310
Cumulative effect of accounting change		62			(22	)		40	(1)
Net unrealized securities gains arising during the period(2)		828			(291	)		537
Reclassification of net securities gains included in net income		(28	)		10			(18	)
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables		(259	)		90			(169	)

Balance at December 31, 2010		1,077			(377	)		700	(3)
Net unrealized securities gains arising during the period(2)		572			(196	)		376
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables		(299	)		106			(193	)

Balance at December 31, 2011		1,350			(467	)		883	(3)
Net unrealized securities gains arising during the period(2)		911			(323	)		588
Reclassification of net securities gains included in net income		(7	)		2			(5	)
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables		(237	)		83			(154	)

Balance at December 31, 2012	$	2,017		$	(705	)	$	1,312	(3)

(1): The Company retrospectively adopted a new accounting standard on January 1, 2012 for DAC. See Note 1 and Note 3 for additional information on the adoption impact.
(2): Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income during the period.
(3): Includes $(18) million, $(75) million and $(66) million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at December 31, 2012, 2011 and 2010, respectively.

Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in earnings were as follows:

	Years Ended December 31,

	2012			2011			2010
	(in millions)
Gross realized gains	$	109		$	52		$	72
Gross realized losses		(65	)		(18	)		(7	)
Other-than-temporary impairments		(37	)		(34	)		(37	)

Total	$	7		$	—		$	28

Other-than-temporary impairments for the years ended December 31, 2012, 2011 and 2010 primarily related to credit losses on non-agency residential mortgage backed securities.

Available-for-Sale securities by contractual maturity at December 31, 2012 were as follows:

	Amortized Cost		Fair Value

	(in millions)
Due within one year	$	1,643	$	1,670
Due after one year through five years		5,695		6,029
Due after five years through 10 years		6,964		7,962
Due after 10 years		4,597		5,675

		18,899		21,336
Residential mortgage backed securities		5,280		5,429
Commercial mortgage backed securities		3,120		3,419
Asset backed securities		1,204		1,275
Common stocks		7		13

Total	$	28,510	$	31,472

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, as well as common stocks, were not included in the maturities distribution.