Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 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

	September 30, 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	$	805		$	606		$	1,025		$	142
Cash collateral on OTC derivatives	(304		)	(180		)	(767		)	(34		)
Fair value of OTC derivatives after application of master netting agreements and cash collateral	501			426			258			108
Securities collateral on OTC derivatives	(471		)	(414		)	(186		)	(95		)
Fair value of OTC derivatives after application of master netting agreements and cash and securities collateral	30			12			72			13
Fair value of exchange-traded derivatives	142			—			155			—
Total fair value of derivatives after application of master netting agreements and cash and securities collateral	$	172		$	12		$	227		$	13

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

	September 30, 2012		December 31, 2011
	(in millions)
Fair value of OTC derivative liabilities after application of master netting agreements and cash collateral	$	426	$	108
Fair value of embedded derivative liabilities	1,191		1,596
Fair value of CIE derivative liabilities	17		20
Fair value of derivative liabilities after application of master netting agreements and cash collateral	$	1,634	$	1,724

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

		Asset					Liability
Derivatives designated as	Balance Sheet	September 30,		December 31,		Balance Sheet	September 30,		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	180		157		Other liabilities	—		—
Total qualifying hedges		180		157			—		11
Derivatives not designated as
hedging instruments
GMWB and GMAB
Interest rate contracts	Other assets	2,364		1,801		Other liabilities	1,766		1,198
Equity contracts	Other assets	1,399		1,314		Other liabilities	1,846		1,031
Credit contracts	Other assets	—		1		Other liabilities	—		—
Foreign currency contracts	Other assets	1		7		Other liabilities	—		10
Embedded derivatives (1)	N/A	—		—		Future policy benefits and claims	1,142		1,585
Total GMWB and GMAB		3,764		3,123			4,754		3,824
Other derivatives:
Interest
Bank assets	Other assets	—		—		Other liabilities	7		—
Equity
EIA embedded derivatives	N/A	—		—		Future policy benefits and claims	3		2
IUL	Other assets	6		1		Other liabilities	2		—
IUL embedded derivatives	N/A	—		—		Future policy benefits and claims	37		3
Stock market certificates	Other assets	64		34		Other liabilities	55		29
Stock market certificates embedded derivatives	N/A	—		—		Customer deposits	9		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	—		—		Other liabilities	2		3
Commodity
Seed money	Other assets	1		2		Other liabilities	—		—
Total other		75		39			115		44
Total non-designated hedges		3,839		3,162			4,869		3,868
Total derivatives		$	4,019	$	3,319		$	4,869	$	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)	$	110	$	9
2013	371		36
2014	345		34
2015	318		32
2016	287		25
2017-2026	1,022		84

(1) 2012 amounts represent the amounts payable and receivable for the period from October 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 Recognized in Income
		Three Months Ended						Nine Months Ended
Derivatives not designated as	Location of Gain (Loss) on	September 30,						September 30,
hedging instruments	Derivatives Recognized in Income	2012			2011			2012			2011
		(in millions)
GMWB and GMAB
Interest rate contracts	Benefits, claims, losses and settlement expenses	$	(12	)	$	582		$	91		$	644
Equity contracts	Benefits, claims, losses and settlement expenses	(402		)	843			(909		)	593
Credit contracts	Benefits, claims, losses and settlement expenses	—			(3		)	(2		)	(10		)
Foreign currency contracts	Benefits, claims, losses and settlement expenses	(6		)	8			(5		)	2
Embedded derivatives(1)	Benefits, claims, losses and settlement expenses	264			(1,284		)	443			(1,179		)
Total GMWB and GMAB		(156		)	146			(382		)	50
Other derivatives:
Interest rate
Bank assets	Net investment income	(7		)	—			(7		)	—
Interest rate lock commitments	Other revenues	—			—			—			(1		)
Equity
IUL	Interest credited to fixed accounts	1			—			1			—
IUL embedded derivatives	Interest credited to fixed accounts	1			—			1			—
EIA	Interest credited to fixed accounts	—			(1		)	1			(1		)
EIA embedded derivatives	Interest credited to fixed accounts	—			—			—			1
Stock market certificates	Banking and deposit interest expense	2			(4		)	6			(1		)
Stock market certificates embedded derivatives	Banking and deposit interest expense	2			4			5			2
Seed money	Net investment income	(2		)	12			(5		)	9
Ameriprise Financial
Franchise Advisor Deferred
Compensation Plan	Distribution expenses	2			(11		)	3			(11		)
Foreign exchange
Foreign currency	Net investment income	1			(2		)	1			(1		)
Commodity
Seed money	Net investment income	(1		)	—			(1		)	—
Total other		(1		)	(2		)	5			(3		)
Total derivatives		$	(157	)	$	144		$	(377	)	$	47

(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
	Three Months Ended September 30,						Nine Months Ended September 30,
Derivatives designated as hedging instruments	2012			2011			2012			2011
	(in millions)
Interest on debt	$	—		$	—		$	14		$	—
Asset-based distribution fees	—			—			—			1
Total	$	—		$	—		$	14		$	1
	Amount of Gain (Loss) Reclassified from Accumulated
	Other Comprehensive Income into Income
Location of Gain (Loss) Reclassified from Accumulated	Three Months Ended September 30,						Nine Months Ended September 30,
Other Comprehensive Income into Income	2012			2011			2012			2011
	(in millions)
Other revenues	$	—		$	—		$	3		$	27
Interest and debt expense	1			1			3			3
Distribution fees	—			—			—			9
Net investment income	(2		)	(1		)	(5		)	(4		)
Total	$	(1	)	$	—		$	1		$	35

Fair value hedges

Derivative instruments

Schedule of gain (loss) on derivative instruments

		Amount of Gain Recognized in Income on Derivatives
Derivatives designated	Location of Gain	Three Months Ended September 30,				Nine Months Ended September 30,
as hedging instruments	Recorded into Income	2012		2011		2012		2011
		(in millions)				(in millions)
Fixed rate debt	Interest and debt expense	$	9	$	11	$	28	$	31