Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 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

	March 31, 2012						December 31, 2011
	Net Derivative			Net Derivative			Net Derivative			Net Derivative
	Assets			Liabilities			Assets			Liabilities
	(in millions)
Fair value of OTC derivatives after application of master netting agreements	$	389		$	515		$	1,025		$	142
Cash collateral on OTC derivatives	(260		)	(31		)	(767		)	(34		)
Fair value of OTC derivatives after application of master netting agreements and cash collateral	129			484			258			108
Securities collateral on OTC derivatives	(106		)	(455		)	(186		)	(95		)
Fair value of OTC derivatives after application of master netting agreements and cash and securities collateral	23			29			72			13
Fair value of exchange-traded derivatives	139			—			155			—
Total fair value of derivatives after application of master netting agreements and cash and securities collateral	$	162		$	29		$	227		$	13

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

	March 31, 2012		December 31, 2011
	(in millions)
Fair value of OTC derivative liabilities after application of master netting agreements and cash collateral	$	484	$	108
Fair value of embedded derivative liabilities	861		1,596
Fair value of CIE derivative liabilities	19		20
Fair value of derivative liabilities after application of master netting agreements and cash collateral	$	1,364	$	1,724

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

		Asset					Liability
Derivatives designated as	Balance Sheet	March 31,		December 31,		Balance Sheet	March 31,		December 31,
hedging instruments	Location	2012		2011		Location	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	148		157		Other liabilities	—		—
Total qualifying hedges		148		157			—		11
Derivatives not designated as
hedging instruments
GMWB and GMAB
Interest rate contracts	Other assets	1,452		1,801		Other liabilities	1,097		1,198
Equity contracts	Other assets	1,094		1,314		Other liabilities	1,601		1,031
Credit contracts	Other assets	—		1		Other liabilities	1		—
Foreign currency contracts	Other assets	6		7		Other liabilities	4		10
Embedded derivatives (1)	N/A	—		—		Future policy benefits and claims	840		1,585
Total GMWB and GMAB		2,552		3,123			3,543		3,824
Other derivatives:
Equity
EIA embedded derivatives	N/A	—		—		Future policy benefits and claims	2		2
IUL	Other assets	2		1		Other liabilities	1		—
IUL embedded derivatives	N/A	—		—		Future policy benefits and claims	9		3
Stock market certificates	Other assets	72		34		Other liabilities	63		29
Stock market certificates embedded derivatives	N/A	—		—		Customer deposits	10		6
Ameriprise Financial Franchise Advisor Deferred Compensation Plan	Other assets	4		2		Other liabilities	—		—
Seed money	Other assets	—		—		Other liabilities	—		1
Foreign exchange
Foreign currency	Other assets	1		—		Other liabilities	2		3
Commodity
Seed money	Other assets	1		2		Other liabilities	—		—
Total other		80		39			87		44
Total non-designated hedges		2,632		3,162			3,630		3,868
Total derivatives		$	2,780	$	3,319		$	3,630	$	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)
2012(1)	$	295	$	32
2013	357		26
2014	332		24
2015	304		22
2016	273		15
2017-2026	972		35

(1) 2012 amounts represent the amounts payable and receivable for the period from April 1, 2012 to December 31, 2012.

Not Designated as Hedges

Derivative instruments

Schedule of gain (loss) on derivative instruments

		Amount of Gain (Loss) on
Derivatives not designated as	Location of Gain (Loss) on	Derivatives Recognized in Income
hedging instruments	Derivatives Recognized in Income	2012			2011
		(in millions)
GMWB and GMAB
Interest rate contracts	Benefits, claims, losses and settlement expenses	$	(225	)	$	(25	)
Equity contracts	Benefits, claims, losses and settlement expenses	(695		)	(255		)
Credit contracts	Benefits, claims, losses and settlement expenses	(3		)	(2		)
Foreign currency contracts	Benefits, claims, losses and settlement expenses	4			(2		)
Embedded derivatives(1)	Benefits, claims, losses and settlement expenses	745			230
Total GMWB and GMAB		(174		)	(54		)
Other derivatives:
Interest rate
Interest rate lock commitments	Other revenues	—			(1		)
Equity
EIA	Interest credited to fixed accounts	1			1
Stock market certificates	Banking and deposit interest expense	5			3
Stock market certificates embedded derivatives	Banking and deposit interest expense	4			(3		)
Seed money	Net investment income	(5		)	(3		)
Ameriprise Financial Franchise Advisor Deferred Compensation Plan	Distribution expenses	3			2
Foreign exchange
Foreign currency	Net investment income	1			—
Total other		9			(1		)
Total derivatives		$	(165	)	$	(55	)

(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 Recognized in Other
	Comprehensive Income on Derivatives
Derivatives designated as hedging instruments	2012			2011
	(in millions)
Interest on debt	$	14		$	—
Asset-based distribution fees	—			1
Total	$	14		$	1
	Amount of Gain (Loss) Reclassified from Accumulated
Location of Gain (Loss) Reclassified from Accumulated	Other Comprehensive Income into Income
Other Comprehensive Income into Income	2012			2011
	(in millions)
Other revenues	$	3		$	—
Interest and debt expense	1			1
Distribution fees	—			5
Net investment income	(2		)	(1		)
Total	$	2		$	5

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
		(in millions)
Fixed rate debt	Interest and debt expense	$	9	$	10