Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2012

Derivatives and Hedging Activities

Schedule of estimated fair value of the Company's freestanding derivatives after considering the effect of master netting arrangements and collateral

	December 31, 2012						December 31, 2011
	Net Derivative Assets			Net Derivative Liabilities			Net Derivative Assets			Net Derivative Liabilities
	(in millions)
Fair value of OTC derivatives after application of master netting agreements	$	822		$	604		$	1,025		$	142
Cash collateral on OTC derivatives		(428	)		(67	)		(767	)		(34	)
Fair value of OTC derivatives after application of master netting agreements and cash collateral		394			537			258			108
Securities collateral on OTC derivatives		(355	)		(531	)		(186	)		(95	)
Fair value of OTC derivatives after application of master netting agreements and cash and securities collateral		39			6			72			13
Fair value of exchange-traded derivatives		96			—			155			—
Total fair value of derivatives after application of master netting agreements and cash and securities collateral	$	135		$	6		$	227		$	13

Schedule of derivative liabilities as defined by the rule of guidance by FSOC

	December 31,
	2012		2011
	(in millions)
Fair value of OTC derivative liabilities after application of master netting agreements and cash collateral	$	537	$	108
Fair value of embedded derivative liabilities		888		1,596
Fair value of CIE derivative liabilities		17		20
Fair value of derivative liabilities after application of master netting agreements and cash collateral	$	1,442	$	1,724

Schedule of gross fair value of derivative instruments, including embedded derivatives

		Asset					Liability
		December 31,					December 31,
	Balance Sheet Location					Balance Sheet Location
Derivatives designated as hedging instruments		2012		2011			2012		2011
		(in millions)					(in millions)
Cash flow hedges
Interest on debt	Other assets	$	—	$	—	Other liabilities	$	—	$	11
Fair value hedges
Fixed rate debt	Other assets		167		157	Other liabilities		—		—
Total qualifying hedges			167		157			—		11
Derivatives not designated as hedging instruments
GMWB and GMAB
Interest rate contracts	Other assets		2,191		1,801	Other liabilities		1,486		1,198
Equity contracts	Other assets		1,215		1,314	Other liabilities		1,792		1,031
Credit contracts	Other assets		—		1	Other liabilities		—		—
Foreign currency contracts	Other assets		6		7	Other liabilities		—		10
Embedded derivatives(1)	N/A		—		—	Future policy benefits and claims		833		1,585
Total GMWB and GMAB			3,412		3,123			4,111		3,824
Other derivatives:
Equity
EIA embedded derivatives	N/A		—		—	Future policy benefits and claims		2		2
IUL	Other assets		6		1	Other liabilities		1		—
IUL embedded derivatives	N/A		—		—	Future policy benefits and claims		45		3
Stock market certificates	Other assets		37		34	Other liabilities		30		29
Stock market certificates embedded derivatives	N/A		—		—	Customer deposits		8		6
Ameriprise Financial
Franchise Advisor Deferred
Compensation Plan	Other assets		—		2	Other liabilities		—		—
Seed money	Other assets		—		—	Other liabilities		—		1
Foreign exchange
Foreign currency	Other assets		—		—	Other liabilities		1		3
Commodity
Seed money	Other assets		1		2	Other liabilities		—		—
Total other			44		39			87		44
Total non-designated hedges			3,456		3,162			4,198		3,868
Total derivatives		$	3,623	$	3,319		$	4,198	$	3,879

N/A Not applicable.

(1)

The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.

Schedule of payments to make and receive for options

	Premiums Payable		Premiums Receivable
	(in millions)
2013	$	373	$	57
2014		348		55
2015		320		54
2016		289		46
2017		238		41
2018-2027		785		104

Summary of unrealized derivatives gains (losses) included in accumulated other comprehensive income related to cash flow hedges

	2012			2011			2010
	(in millions)
Net unrealized derivatives gains (losses) at January 1	$	(11	)	$	18		$	3
Holding gains (losses)		14			(10	)		36
Reclassification of realized gains		(1	)		(34	)		(13	)
Income tax benefit (provision)		(4	)		15			(8	)
Net unrealized derivatives gains (losses) at December 31	$	(2	)	$	(11	)	$	18

Not Designated as Hedges

Derivative instruments

Schedule of gain (loss) on derivative instruments

		Amount of Gain (Loss) on Derivatives Recognized in Income
	Location of Gain (Loss) on Derivatives Recognized in Income
Derivatives not designated as hedging instruments		2012			2011			2010
		(in millions)
GMWB and GMAB
Interest rate contracts	Benefits, claims, losses and settlement expenses	$	17		$	709		$	95
Equity contracts	Benefits, claims, losses and settlement expenses		(1,218	)		326			(370	)
Credit contracts	Benefits, claims, losses and settlement expenses		(2	)		(12	)		(44	)
Foreign currency contracts	Benefits, claims, losses and settlement expenses		(1	)		(2	)		—
Embedded derivatives(1)	Benefits, claims, losses and settlement expenses		752			(1,165	)		(121	)
Total GMWB and GMAB			(452	)		(144	)		(440	)
Other derivatives:
Interest rate
Bank assets	Net investment income		(7	)		—			—
Tax hedge	Net investment income		1			—			—
Interest rate lock commitments	Other revenues		—			(1	)		—
Equity
GMDB	Benefits, claims, losses and settlement expenses		—			—			(4	)
IUL	Interest credited to fixed accounts		1			1			—
IUL embedded derivatives	Interest credited to fixed accounts		(4	)		(3	)		—
EIA	Interest credited to fixed accounts		1			(1	)		2
EIA embedded derivatives	Interest credited to fixed accounts		1			1			7
Stock market certificates	Banking and deposit interest expense		6			1			9
Stock market certificates embedded derivatives	Banking and deposit interest expense		(5	)		—			(10	)
Seed money	Net investment income		(6	)		4			(5	)
Ameriprise Financial
Franchise Advisor Deferred
Compensation Plan	Distribution expenses		5			(4	)		9
Foreign exchange
Seed money	General and administrative expense		—			(1	)		1
Foreign currency	Net investment income		—			(3	)		(1	)
Commodity
Seed money	Net investment income		—			1			—
Total other			(7	)		(5	)		8
Total derivatives		$	(459	)	$	(149	)	$	(432	)

(1)

The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.

Cash flow hedges

Derivative instruments

Schedule of gain (loss) on derivative instruments

	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives
Derivatives designated as hedging instruments
	2012		2011			2010
	(in millions)
Interest on debt	$	14	$	(11	)	$	16
Asset-based distribution fees		—		1			20
Total	$	14	$	(10	)	$	36

	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
	2012			2011			2010
	(in millions)
Distribution fees	$	—		$	9		$	11
Net investment income		(6	)		(6	)		(6	)
Other revenues		3			27			—
Interest and debt expense		4			4			8
Total	$	1		$	34		$	13

Fair value hedges

Derivative instruments

Schedule of gain (loss) on derivative instruments

		Amount of Gain Recognized in Income on Derivatives
Derivatives designated as hedging instruments	Location of Gain Recorded into Income
		2012		2011		2010
		(in millions)
Fixed rate debt	Interest and debt expense	$	37	$	41	$	36