Fair Values of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2011

Fair Values of Assets and Liabilities

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

	June 30, 2011
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Cash equivalents	$	4	$	2,275	$	—	$	2,279
Available-for-Sale securities:
Corporate debt securities	—		15,360		1,274		16,634
Residential mortgage backed securities	—		3,615		4,097		7,712
Commercial mortgage backed securities	—		4,671		64		4,735
Asset backed securities	—		1,565		498		2,063
State and municipal obligations	—		1,957		—		1,957
U.S. government and agencies obligations	43		51		—		94
Foreign government bonds and obligations	—		124		—		124
Common stocks	2		3		5		10
Other debt obligations	—		19		—		19
Total Available-for-Sale securities	45		27,365		5,938		33,348
Trading securities:
Seed money	198		57		12		267
Investments segregated for regulatory purposes	1		14		—		15
Other	—		361		—		361
Total trading securities	199		432		12		643
Separate account assets	—		70,763		—		70,763
Other assets:
Interest rate derivative contracts	—		546		—		546
Equity derivative contracts	77		344		—		421
Credit derivative contracts	—		1		—		1
Foreign currency derivative contracts	1		2		—		3
Total other assets	78		893		—		971
Assets held for sale	10		—		—		10
Total assets at fair value	$	336	$	101,728	$	5,950	$	108,014
Liabilities
Future policy benefits and claims:
EIA embedded derivatives	$	—	$	2	$	—	$	2
GMWB and GMAB embedded derivatives	—		—		316		316
Total future policy benefits and claims	—		2		316		318
Customer deposits	—		10		—		10
Other liabilities:
Interest rate derivative contracts	—		451		—		451
Equity derivative contracts	68		773		—		841
Credit derivative contracts	—		1		—		1
Foreign currency derivative contracts	1		1		—		2
Other	—		3		—		3
Total other liabilities	69		1,229		—		1,298
Total liabilities at fair value	$	69	$	1,241	$	316	$	1,626

	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:
Seed money	133		71		19		223
Investments segregated for regulatory purposes	2		14		—		16
Fixed income trading	—		323		—		323
Total trading securities	135		408		19		562
Separate account assets	—		68,330		—		68,330
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	$	276	$	98,547	$	6,123	$	104,946
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
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

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

	Available-for-Sale Securities																				Future Policy
				Residential			Commercial														Benefits and Claims:
	Corporate			Mortgage			Mortgage			Asset											GMWB and
	Debt			Backed			Backed			Backed			Common					Trading			GMAB Embedded
	Securities			Securities			Securities			Securities			Stocks		Total			Securities			Derivatives
	(in millions)
Balance, April 1, 2011	$	1,315		$	4,093		$	26		$	488		$	5	$	5,927		$	13		$	(190	)
Total gains (losses) included in:
Net income	7			—			—			1			—		8		(1)	—			(88		)(2)
Other comprehensive income	11			(11		)	—			(4		)	—		(4		)	—			—
Purchases	36			349			74			41			—		500			—			—
Sales	—			—			—			—			—		—			(1		)	—
Issues	—			—			—			—			—		—			—			(36		)
Settlements	(93		)	(278		)	—			(28		)	—		(399		)	—			(2		)
Transfers into (out of) Level 3	(2		)	(56		)	(36		)	—			—		(94		)(3)	—			—
Balance, June 30, 2011	$	1,274		$	4,097		$	64		$	498		$	5	$	5,938		$	12		$	(316	)
Changes in unrealized gains (losses) relating to assets and liabilities held at June 30, 2011 included in:
Net investment income	$	—		$	—		$	—		$	1		$	—	$	1		$	—		$	—
Benefits, claims, losses and settlement expenses	—			—			—			—			—		—			—			(90		)

(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 securities with a fair value of $104 million that were transferred to Level 2 as the fair value of the securities is now obtained from a nationally-recognized pricing service with observable inputs and a security with a fair value of $10 million that was transferred to Level 3 as the fair value of the security is now based on a single broker quote.

	Available-for-Sale Securities																					Future Policy
				Residential		Commercial																Benefits and Claims:
	Corporate			Mortgage		Mortgage		Asset														GMWB and
	Debt			Backed		Backed		Backed			Common					Trading			Other			GMAB Embedded
	Securities			Securities		Securities		Securities			Stocks		Total			Securities			Assets			Derivatives
	(in millions)
Balance, April 1, 2010	$	1,258		$	3,885	$	80	$	459		$	4	$	5,686		$	16		$	—		$	(193	)
Total gains (losses) included in:
Net income	1			21		1		4			—		27		(1)	1		(1)	1		(1)	(851		)(2)
Other comprehensive income	24			120		1		10			—		155			—			—			—
Purchases, sales, issues and settlements, net	(40		)	147		62		(8		)	—		161			1			—			(39		)
Transfers into (out of) Level 3	—			—		—		(23		)	—		(23		)(3)	—			—			—
Balance, June 30, 2010	$	1,243		$	4,173	$	144	$	442		$	4	$	6,006		$	18		$	1		$	(1,083	)
Changes in unrealized gains (losses) relating to assets and liabilities held at June 30, 2010 included in:
Net investment income	$	—		$	20	$	1	$	4		$	—	$	25		$	2		$	—		$	—
Benefits, claims, losses and settlement expenses	—			—		—		—			—		—			—			—			(852		)

(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 a security transferred to Level 2 as the fair value is now obtained from a nationally-recognized pricing service with observable inputs.

	Available-for-Sale Securities																				Future Policy
				Residential			Commercial														Benefits and Claims:
	Corporate			Mortgage			Mortgage			Asset											GMWB and
	Debt			Backed			Backed			Backed			Common					Trading			GMAB Embedded
	Securities			Securities			Securities			Securities			Stocks		Total			Securities			Derivatives
	(in millions)
Balance, January 1, 2011	$	1,325		$	4,247		$	51		$	476		$	5	$	6,104		$	19		$	(421	)
Total gains included in:
Net income	7			7			—			3			—		17		(1)	1		(1)	175		(2)
Other comprehensive income	12			2			—			1			—		15			1			—
Purchases	73			499			89			70			—		731			2			—
Sales	—			(3		)	—			—			—		(3		)	(11		)	—
Issues	—			—			—			—			—		—			—			(68		)
Settlements	(131		)	(599		)	(1		)	(52		)	—		(783		)	—			(2		)
Transfers into (out of) Level 3	(12		)	(56		)	(75		)	—			—		(143		)(3)	—			—
Balance, June 30, 2011	$	1,274		$	4,097		$	64		$	498		$	5	$	5,938		$	12		$	(316	)
Changes in unrealized gains (losses) relating to assets and liabilities held at June 30, 2011 included in:
Net investment income	$	—		$	17		$	—		$	4		$	—	$	21		$	—		$	—
Benefits, claims, losses and settlement expenses	—			—			—			—			—		—			—			166

(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 securities with a fair value of $145 million that were transferred to Level 2 as the fair value of the securities is now obtained from a nationally-recognized pricing service with observable inputs and a security with a fair value of $2 million that was transferred to Level 3 as the fair value of the security is now based on a single broker quote.

	Available-for-Sale Securities																									Future Policy
				Residential			Commercial																			Benefits and Claims:
	Corporate			Mortgage			Mortgage		Asset					Other												GMWB and
	Debt			Backed			Backed		Backed			Common		Structured						Trading			Other			GMAB Embedded
	Securities			Securities			Securities		Securities			Stocks		Investments			Total			Securities			Assets			Derivatives
	(in millions)
Balance, January 1, 2010	$	1,252		$	3,982		$	72	$	455		$	4	$	58		$	5,823		$	16		$	—		$	(299	)
Total gains (losses) included in:
Net income	1			15			1		8			—		—			25		(1)	2		(1)	1		(1)	(716		)(2)
Other comprehensive income	43			196			10		28			—		—			277			(1		)	—			—
Purchases, sales, issues and settlements, net	(53		)	(20		)	61		(26		)	—		(58		)(4)	(96		)	1			—			(68		)
Transfers into (out of) Level 3	—			—			—		(23		)	—		—			(23		)(3)	—			—			—
Balance, June 30, 2010	$	1,243		$	4,173		$	144	$	442		$	4	$	—		$	6,006		$	18		$	1		$	(1,083	)
Changes in unrealized gains (losses) relating to assets and liabilities held at June 30, 2010 included in:
Net investment income	$	—		$	15		$	1	$	7		$	—	$	—		$	23		$	2		$	—		$	—
Benefits, claims, losses and settlement expenses	—			—			—		—			—		—			—			—			—			(719		)

(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 a security transferred to Level 2 as the fair value is now obtained from a nationally-recognized pricing service with observable inputs.

(4) Represents the elimination of Ameriprise Financial’s investment in CDOs, which were consolidated due to the adoption of a new accounting standard. See Note 3 for additional information related to the consolidation of CDOs

Schedule of carrying value and estimated fair value of financial instruments

	June 30, 2011				December 31, 2010
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in millions)
Financial Assets
Commercial mortgage loans, net	$	2,524	$	2,650	$	2,577	$	2,671
Policy loans	736		734		733		808
Receivables	2,254		2,023		1,852		1,566
Restricted and segregated cash	1,478		1,478		1,516		1,516
Assets held for sale	19		18		18		18
Other investments and assets	357		361		331		338
Financial Liabilities
Future policy benefits and claims	$	15,130	$	15,555	$	15,328	$	15,768
Investment certificate reserves	2,864		2,860		3,127		3,129
Banking and brokerage customer deposits	6,556		6,558		5,638		5,642
Separate account liabilities	4,478		4,478		4,930		4,930
Debt and other liabilities	3,194		3,427		2,710		2,907