Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2013

Derivatives and Hedging Activities

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

	June 30, 2013		December 31, 2012
	(in millions)
Fair value of OTC derivative liabilities after application of master netting agreements and cash collateral	$	817	$	537
Fair value of embedded derivative liabilities	98		888
Fair value of CIE derivative liabilities	12		17
Fair value of derivative liabilities after application of master netting agreements and cash collateral	$	927	$	1,442

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

		Asset					Liability
Derivatives designated as	Balance Sheet	June 30,		December 31,		Balance Sheet	June 30,		December 31,
hedging instruments	Location	2013		2012		Location	2013		2012
		(in millions)					(in millions)
Fair value hedges
Fixed rate debt	Other assets	$	116	$	167	Other liabilities	$	—	$	—
Total qualifying hedges		116		167			—		—

Derivatives not designated as hedging instruments
GMWB and GMAB
Interest rate contracts	Other assets	1,638		2,191		Other liabilities	1,483		1,486
Equity contracts	Other assets	1,404		1,215		Other liabilities	2,090		1,792
Credit contracts	Other assets	7		—		Other liabilities	—		—
Foreign currency contracts	Other assets	4		6		Other liabilities	—		—
Embedded derivatives (1)	N/A	—		—		Future policy benefits and claims	11		833
Total GMWB and GMAB		3,053		3,412			3,584		4,111
Other derivatives:
Equity
EIA embedded derivatives	N/A	—		—		Future policy benefits and claims	3		2
IUL	Other assets	16		6		Other liabilities	6		1
IUL embedded derivatives	N/A	—		—		Future policy benefits and claims	76		45
Stock market certificates	Other assets	58		37		Other liabilities	50		30
Stock market certificates embedded derivatives	N/A	—		—		Customer deposits	8		8
Foreign exchange
Foreign currency	Other assets	—		—		Other liabilities	1		1
Commodity
Seed money	Other assets	2		1		Other liabilities	—		—
Total other		76		44			144		87
Total non-designated hedges		3,129		3,456			3,728		4,198
Total derivatives		$	3,245	$	3,623		$	3,728	$	4,198

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(1)	$	182	$	29
2014	343		58
2015	316		56
2016	286		49
2017	236		43
2018-2027	778		107

(1) 2013 amounts represent the amounts payable and receivable for the period from July 1, 2013 to December 31, 2013.

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						Six Months Ended
Derivatives not designated as	Location of Gain (Loss) on	June 30,						June 30,
hedging instruments	Derivatives Recognized in Income	2013			2012			2013			2012
		(in millions)
GMWB and GMAB
Interest rate contracts	Benefits, claims, losses and settlement expenses	$	(380	)	$	328		$	(512	)	$	103
Equity contracts	Benefits, claims, losses and settlement expenses	12			188			(480		)	(507		)
Credit contracts	Benefits, claims, losses and settlement expenses	8			1			8			(2		)
Foreign currency contracts	Benefits, claims, losses and settlement expenses	2			(3		)	7			1
Embedded derivatives(1)	Benefits, claims, losses and settlement expenses	255			(566		)	822			179
Total GMWB and GMAB		(103		)	(52		)	(155		)	(226		)
Other derivatives:
Interest
Seed money	Net investment income	2			—			2			—
Equity
IUL	Interest credited to fixed accounts	2			—			6			—
IUL embedded derivatives	Interest credited to fixed accounts	2			—			5			—
EIA	Interest credited to fixed accounts	—			—			1			1
EIA embedded derivatives	Interest credited to fixed accounts	—			—			(1		)	—
Stock market certificates	Banking and deposit interest expense	1			(1		)	4			4
Stock market certificates embedded derivatives	Banking and deposit interest expense	(1		)	1			(4		)	(3		)
Seed money	Net investment income	(2		)	2			(8		)	(3		)
Ameriprise Financial
Franchise Advisor Deferred
Compensation Plan	Distribution expenses	—			(2		)	—			1
Deferred Compensation	Distribution expenses	1			—			2			—
Foreign exchange
Foreign currency	Net investment income	(3		)	(1		)	(3		)	—
Commodity
Seed money	Net investment income	1			—			1			—
Total other		3			(1		)	5			—
Total derivatives		$	(100	)	$	(53	)	$	(150	)	$	(226	)

(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 (Loss) on Derivatives
	Three Months Ended June 30,				Six Months Ended June 30,
Derivatives designated as hedging instruments	2013		2012		2013		2012
	(in millions)
Interest on debt	$	—	$	—	$	—	$	14

	Amount of Gain (Loss) Reclassified from Accumulated
	Other Comprehensive Income into Income
Location of Gain (Loss) Reclassified from Accumulated	Three Months Ended June 30,						Six Months Ended June 30,
Other Comprehensive Income into Income	2013			2012			2013			2012
	(in millions)
Other revenues	$	—		$	—		$	—		$	3
Interest and debt expense	1			1			2			2
Net investment income	(1		)	(1		)	(2		)	(3		)
Total	$	—		$	—		$	—		$	2

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 June 30,				Six Months Ended June 30,
as hedging instruments	Recorded into Income	2013		2012		2013		2012
		(in millions)
Fixed rate debt	Interest and debt expense	$	10	$	10	$	20	$	19