Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 25, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 033-28976 | ||
Entity Registrant Name | RIVERSOURCE LIFE INSURANCE COMPANY | ||
Entity Incorporation, State or Country Code | MN | ||
Entity Tax Identification Number | 41-0823832 | ||
Entity Address, Address Line One | 1099 Ameriprise Financial Center | ||
Entity Address, City or Town | Minneapolis | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55474 | ||
City Area Code | (612) | ||
Local Phone Number | 671-3131 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 100,000 | ||
Entity Central Index Key | 0000727892 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Public Float | $ 0 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Minneapolis, Minnesota |
Auditor Firm ID | 238 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Investments: | ||
Reinsurance recoverables (net of allowance for credit losses: 2020, $8 (1) ) | $ 4,529 | $ 3,409 |
Accrued investment income | 124 | 172 |
Deferred acquisition costs | 2,757 | 2,508 |
Separate account assets | 92,238 | 87,556 |
Total assets | 139,496 | 134,424 |
Liabilities: | ||
Policyholder account balances, future policy benefits and claims | 35,744 | 33,986 |
Short-term borrowings | 200 | 200 |
Separate account liabilities | 92,238 | 87,556 |
Liabilities | 137,611 | 131,111 |
Shareholder's equity: | ||
Common stock | 3 | 3 |
Additional paid-in capital | 2,466 | 2,466 |
Retained earnings | (912) | (76) |
Accumulated other comprehensive income, net of tax | 328 | 920 |
Total shareholder's equity | 1,885 | 3,313 |
Total liabilities and shareholder's equity | 139,496 | 134,424 |
RiverSource Life | ||
Investments: | ||
Available-for-Sale: Fixed maturities, at fair value | 16,239 | 22,855 |
Mortgage loans, at amortized cost (net of allowance for credit losses: 2020, $28; 2019, $17) | 1,788 | 2,574 |
Policy loans | 834 | 846 |
Other investments (net of allowance for credit losses: 2020, $7; 2019, $4) | 230 | 701 |
Total investments | 19,091 | 26,976 |
Cash and cash equivalents | 3,200 | 3,191 |
Other receivables | 8,148 | 1,613 |
Other assets | 7,084 | 6,969 |
Liabilities: | ||
Short-term borrowings | 200 | 200 |
Long-term debt | 500 | 500 |
Other liabilities | 6,628 | 6,887 |
Consolidated investment entities | ||
Investments: | ||
Total investments | 2,184 | 1,918 |
Cash and cash equivalents | 121 | 94 |
Other receivables | 17 | 16 |
Other assets | 3 | 2 |
Liabilities: | ||
Long-term debt | 2,164 | 1,913 |
Other liabilities | $ 137 | $ 69 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Common stock, par value (in dollars per share) | $ 30 | $ 30 |
Common stock, shares authorized (in shares) | 100,000 | 100,000 |
Common stock, shares issued (in shares) | 100,000 | 100,000 |
Common stock, shares outstanding (in shares) | 100,000 | 100,000 |
RiverSource Life | ||
Available-for-sale: Fixed maturities, amortized cost | $ 14,718 | $ 20,260 |
Available-for-Sale: Fixed maturities, allowance for credit losses | 1 | 10 |
Reinsurance recoverables, allowance for credit losses | 11 | 8 |
RiverSource Life | Mortgage loans | ||
Allowance for credit losses | 12 | 28 |
RiverSource Life | Other investments | ||
Allowance for credit losses | $ 0 | $ 7 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | |||
Premiums | $ (871) | $ 341 | $ 397 |
Net investment income | 827 | 869 | 917 |
Policy and contract charges | 2,304 | 2,094 | 2,042 |
Other revenues | 616 | 482 | 464 |
Net realized investment gains (losses) | 595 | (10) | (2) |
Total revenues | 3,471 | 3,776 | 3,818 |
Benefits and expenses | |||
Benefits, claims, losses and settlement expenses | 715 | 1,805 | 1,804 |
Interest credited to fixed accounts | 600 | 644 | 669 |
Amortization of deferred acquisition costs | 112 | 264 | 133 |
Interest and Debt Expense | 105 | 5 | |
Other insurance and operating expenses | 738 | 665 | 685 |
Total benefits and expenses | 2,270 | 3,383 | 3,291 |
Pretax income (loss) | 1,201 | 393 | 527 |
Income tax provision (benefit) | 137 | (45) | (60) |
Net income | $ 1,064 | $ 438 | $ 587 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,064 | $ 438 | $ 587 |
Net of Tax | |||
Net unrealized gains (losses) on securities | (592) | 346 | 529 |
Total other comprehensive income (loss), net of tax | (592) | 346 | 529 |
Total comprehensive income | $ 472 | $ 784 | $ 1,116 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY - USD ($) $ in Millions | Total | Common shares | Additional Paid-In Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, AdjustmentRetained Earnings (Deficit) |
Beginning balance at Dec. 31, 2018 | $ 3,572 | $ 3 | $ 2,466 | $ 1,058 | $ 45 | ||
Beginning balance (Premium amortization on purchased callable debt securities guidance) at Dec. 31, 2018 | $ (2) | $ (2) | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 587 | 587 | |||||
Other comprehensive income (loss), net of tax | 529 | 529 | |||||
Cash dividends to Ameriprise Financial, Inc. | (1,350) | (1,350) | |||||
Ending balance at Dec. 31, 2019 | 3,336 | 3 | 2,466 | 293 | 574 | ||
Ending balance (Current expected credit losses guidance) at Dec. 31, 2019 | $ (7) | $ (7) | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 438 | 438 | |||||
Other comprehensive income (loss), net of tax | 346 | 346 | |||||
Cash dividends to Ameriprise Financial, Inc. | (800) | (800) | |||||
Ending balance at Dec. 31, 2020 | 3,313 | 3 | 2,466 | (76) | 920 | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 1,064 | 1,064 | |||||
Other comprehensive income (loss), net of tax | (592) | (592) | |||||
Cash dividends to Ameriprise Financial, Inc. | (1,900) | (1,900) | |||||
Ending balance at Dec. 31, 2021 | $ 1,885 | $ 3 | $ 2,466 | $ (912) | $ 328 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Cash Flows [Abstract] | |||
Net income | $ 1,064 | $ 438 | $ 587 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation, amortization and accretion, net | (98) | (22) | (22) |
Deferred income tax (benefit) expense | (40) | (278) | (278) |
Contractholder and policyholder charges, non-cash | (390) | (385) | (380) |
Loss from equity method investments | 72 | 73 | 99 |
Net realized investment (gains) losses | (611) | (12) | (15) |
Other-than-temporary impairments and provision for loan losses recognized in net realized investment gains (losses) | (3) | 22 | 17 |
Consolidated Investment Entities Unrealized Realized Gain (Loss) on Assets and Liabilities | (20) | (2) | |
Change in operating assets and liabilities: | |||
Deferred acquisition costs | (155) | 48 | (106) |
Policyholder account balances, future policy benefits and claims, net | 2,478 | 3,441 | 751 |
Derivatives, net of collateral | (575) | (134) | 333 |
Reinsurance recoverables | 29 | (166) | (90) |
Other receivables | 114 | 62 | 19 |
Accrued investment income | 10 | (3) | 26 |
Current income tax expense (benefit) | (321) | 378 | 2 |
Other operating assets and liabilities of consolidated investment entities | 20 | ||
Other, net | 4 | 79 | 23 |
Net cash provided by (used in) operating activities | 1,578 | 3,539 | 966 |
Available-for-Sale securities: | |||
Proceeds from sales | 555 | 102 | 232 |
Maturities, sinking fund payments and calls | 2,804 | 2,813 | 2,250 |
Purchases | (3,677) | (4,069) | (1,772) |
Proceeds from sales, maturities and repayments of mortgage loans | 272 | 207 | 223 |
Funding of mortgage loans | (215) | (135) | (331) |
Proceeds from sales and collections of other investments | 93 | 123 | 129 |
Purchase of other investments | (32) | (184) | (164) |
Proceeds from sales, maturities and repayments of investments by consolidated investment entities | 1,047 | 46 | |
Purchase of investments by consolidated investment entities | (1,603) | (57) | |
Purchase of equipment and software | (13) | (10) | (10) |
Change in policy loans, net | 12 | 21 | (6) |
Cash paid for deposit receivable | (377) | (4) | (349) |
Cash received for deposit receivable | 254 | 93 | 98 |
Advance on line of credit to Ameriprise Financial, inc. | (1) | (702) | |
Repayment from Ameriprise Financial, Inc. on line of credit | 1 | 702 | |
Cash paid for written options with deferred premiums | (552) | (338) | (243) |
Cash received from written options with deferred premiums | 106 | 133 | 170 |
Net cash impact of consolidating consolidated investment entities | 83 | ||
Other, net | (39) | 2 | 42 |
Net cash provided by (used in) investing activities | (1,365) | (1,174) | 269 |
Policyholder account balances: | |||
Deposits and other additions | 1,553 | 1,649 | 2,152 |
Net transfers from (to) separate accounts | (273) | (125) | (86) |
Surrenders and other benefits | (1,365) | (1,357) | (1,728) |
Proceeds from line of credit with Ameriprise Financial, Inc. | 6 | 186 | 73 |
Repayments to Ameriprise Financial, Inc. on line of credit | (6) | (236) | (23) |
Proceeds from long-term debt with Ameriprise Financial, Inc. | 500 | ||
Cash received from purchased options with deferred premiums | 1,350 | 40 | 206 |
Cash paid for purchased options with deferred premiums | (156) | (211) | (289) |
Borrowings by consolidated investment entities | 1,756 | ||
Repayments of debt by consolidated investment entities | (1,142) | (1) | |
Cash dividends to Ameriprise Financial, Inc. | (1,900) | (800) | (1,350) |
Net cash provided by (used in) financing activities | (177) | (355) | (1,045) |
Net increase (decrease) in cash and cash equivalents | 36 | 2,010 | 190 |
Cash and cash equivalents at beginning of period | 3,285 | 1,275 | 1,085 |
Cash and cash equivalents at end of period | 3,321 | 3,285 | 1,275 |
Supplemental Disclosures: | |||
Income taxes paid (received), net | 496 | (143) | 215 |
Interest paid on borrowings | 0 | $ 2 | 5 |
Non-cash investing activity: | |||
Partnership commitments not yet remitted | 0 | 4 | |
Investments transferred in connection with fixed annuity reinsurance transaction | $ 7,513 | $ 1,265 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | RiverSource Life Insurance Company is a stock life insurance company with one wholly owned stock life insurance company subsidiary, RiverSource Life Insurance Co. of New York (“RiverSource Life of NY”). RiverSource Life Insurance Company is a wholly owned subsidiary of Ameriprise Financial, Inc. (“Ameriprise Financial”). • RiverSource Life Insurance Company is domiciled in Minnesota and holds Certificates of Authority in American Samoa, the District of Columbia and all states except New York. RiverSource Life Insurance Company issues insurance and annuity products. • RiverSource Life of NY is domiciled and holds a Certificate of Authority in New York. RiverSource Life of NY issues insurance and annuity products. RiverSource Life Insurance Company also wholly owns RiverSource Tax Advantaged Investments, Inc. (“RTA”)and Columbia Cent CLO Advisors, LLC (“Columbia Cent”). RTA is a stock company domiciled in Delaware and is a limited partner in affordable housing partnership investments. Columbia Cent provides asset management services to collateralized loan obligations (“CLOs”). The accompanying Consolidated Financial Statements include the accounts of RiverSource Life Insurance Company and companies in which it directly or indirectly has a controlling financial interest and variable interest entities (“VIEs”) in which it is the primary beneficiary (collectively, the “Company”). All intercompany transactions and balances have been eliminated in consolidation. The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) which vary in certain respects from reporting practices prescribed or permitted by state insurance regulatory authorities as described in Note 15. During the third quarter of 2021, RiverSource Life Insurance Company closed on a transaction with Global Atlantic Financial Group’s subsidiary Commonwealth Annuity and Life Insurance Company (“Commonwealth”), effective July 1, 2021, to reinsure approximately $7.0 billion of fixed deferred and immediate annuity policies. As part of the transaction, RiverSource Life Insurance Company transferred $7.8 billion in consideration primarily consisting of Available-for-Sale securities, commercial mortgage loans, syndicated loans and cash. The transaction resulted in a net realized gain of approximately $532 million on investments sold. A similar previously announced transaction with RiverSource Life of New York did not receive regulatory approval in time to close by September 30, 2021 and the transaction was terminated by the parties. The Company evaluated events or transactions that may have occurred after the balance sheet date for potential recognition or disclosure through the date the financial statements were issued. Other than disclosed in Note 14, no other subsequent events or transactions requiring recognition or disclosure were identified. The Company’s principal products are variable annuities, structured variable annuities, universal life (“UL”) insurance, including indexed universal life (“IUL”) and variable universal life (“VUL”) insurance, which are issued primarily to individuals. Waiver of premium and accidental death benefit riders are generally available with UL products, in addition to other benefit riders. Variable annuity contract purchasers can choose to add optional benefit riders to their contracts, such as guaranteed minimum death benefit (“GMDB”), guaranteed minimum withdrawal benefit (“GMWB”) and guaranteed minimum accumulation benefit (“GMAB”) riders. In 2020, the Company began offering structured variable annuities which give contractholders the option to allocate a portion of their account value to an indexed account with the contractholder’s rate of return, which may be positive or negative, tied to selected indices. During 2021, the Company made the decision to discontinue new sales of substantially all of its variable annuities with living benefit guarantees at the end of 2021, with a full exit by mid-2022. As the Company continues to optimize its risk profile and shift its business mix to lower risk offerings, it has discontinued new sales of its UL insurance with secondary guarantees and its single-pay fixed universal life with a long term care rider products at the end of 2021. The Company also offers immediate annuities, traditional life insurance and disability income (“DI”) insurance. In 2020, the Company discontinued sales of fixed deferred annuities. The Company’s business is sold through the advisor network of Ameriprise Financial Services, LLC (“AFS”), a subsidiary of Ameriprise Financial. RiverSource Distributors, Inc., a subsidiary of Ameriprise Financial, serves as the principal underwriter and distributor of variable annuity and life insurance products issued by the Company. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | The Company adopted accounting standard, Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments , on January 1, 2020. The significant accounting policies for Available-for-Sale Securities, Financing Receivables, and Reinsurance were updated as a result of adopting the new accounting standard. Principles of Consolidation A VIE is an entity that either has equity investors that lack certain essential characteristics of a controlling financial interest (including substantive voting rights, the obligation to absorb the entity’s losses, or the rights to receive the entity’s returns) or has equity investors that do not provide sufficient financial resources for the entity to support its activities. Voting interest entities (“VOEs”) are those entities that do not qualify as a VIE. The Company consolidates VOEs in which it holds a greater than 50% voting interest. The Company generally accounts for entities using the equity method when it holds a greater than 20% but less than 50% voting interest or when the Company exercises significant influence over the entity. All other investments that are not reported at fair value as trading or Available-for-Sale securities are accounted for using the measurement alternative method when the Company owns less than a 20% voting interest and does not exercise significant influence. Under the measurement alternative, the investment is recorded at the cost basis, less impairments, if any, plus or minus observable price changes of identical or similar investments of the same issuer. A VIE is consolidated by the reporting entity that determines it has both: • the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and • the obligation to absorb potentially significant losses or the right to receive potentially significant benefits to the VIE. All VIEs are assessed for consolidation under this framework. When evaluating entities for consolidation, the Company considers its contractual rights in determining whether it has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. In determining whether the Company has this power, it considers whether it is acting in a role that enables it to direct the activities that most significantly impact the economic performance of an entity or if it is acting in an agent role. In determining whether the Company has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Company considers an analysis of its rights to receive benefits such as investment returns and its obligation to absorb losses associated with any investment in the VIE in conjunction with other qualitative factors. Management and incentive fees that are at market and commensurate with the level of services provided, and where the Company does not hold other interests in the VIE that would absorb more than an insignificant amount of the VIE’s expected losses or receive more than an insignificant amount of the VIE’s expected residual returns, are not considered a variable interest and are excluded from the analysis. The consolidation guidance has a scope exception for reporting entities with interests in registered money market funds which do not have an explicit support agreement. Amounts Based on Estimates and Assumptions Accounting estimates are an integral part of the Consolidated Financial Statements. In part, they are based upon assumptions concerning future events. Among the more significant are those that relate to investment securities valuation and the recognition of credit losses or impairments, deferred acquisition costs (“DAC”) and the corresponding recognition of DAC amortization, valuation of derivative instruments and hedging activities, litigation reserves, future policy benefits and claims reserves and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ. Investments Available-for-Sale Securities Available-for-Sale securities are carried at fair value with unrealized gains (losses) recorded in accumulated other comprehensive income (“AOCI”), net of impacts to DAC, deferred sales inducement costs (“DSIC”), unearned revenue, benefit reserves, reinsurance recoverables and income taxes. Gains and losses are recognized on a trade date basis in the Consolidated Statements of Income upon disposition of the securities. Available-for-Sale securities are impaired when the fair value of an investment is less than its amortized cost. When an Available-for-Sale security is impaired, the Company first assesses whether or not: (i) it has the intent to sell the security (made a decision to sell) or (ii) it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If either of these conditions exist, the Company recognizes an impairment by reducing the book value of the security for the difference between the investment’s amortized cost and its fair value with a corresponding charge to earnings. Subsequent increases in the fair value of Available-for-Sale securities that occur in periods after a write-down has occurred are recorded as unrealized gains in other comprehensive income (“OCI”), while subsequent decreases in fair value would continue to be recorded as reductions of book value with a charge to earnings. For securities that do not meet the above criteria, the Company determines whether the decrease in fair value is due to a credit loss or due to other factors. The amount of impairment due to credit-related factors, if any, is recognized as an allowance for credit losses with a related charge to net realized investment gains (losses). The allowance for credit losses is limited to the amount by which the security’s amortized cost basis exceeds its fair value. The amount of the impairment related to other factors is recognized in OCI. Factors the Company considers in determining whether declines in the fair value of fixed maturity securities are due to credit-related factors include: (i) the extent to which the market value is below amortized cost; (ii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iii) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors. If through subsequent evaluation there is a sustained increase in cash flows expected, both the allowance and related charge to earnings may be reversed to reflect the increase in expected principal and interest payments. However, for Available-for-Sale securities that recognized an impairment prior to January 1, 2020 by reducing the book value of the security, the difference between the new amortized cost basis and the improved cash flows expected to be collected is accreted as interest income. In order to determine the amount of the credit loss component for corporate debt securities, a best estimate of the present value of cash flows expected to be collected discounted at the security’s effective interest rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and the Company’s position in the debtor’s overall capital structure. When assessing potential credit-related impairments for structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities and asset backed securities), the Company also considers credit-related factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections. Management has elected to exclude accrued interest in its measurement of the allowance for credit losses for Available-for-Sale securities. Accrued interest on Available-for-Sale securities is recorded as earned in Accrued investment income. Available-for-Sale securities are placed on nonaccrual status when the accrued balance becomes 90 days past due or earlier based on management’s evaluation of the facts and circumstances of each security under review. All previously accrued interest is reversed through Net investment income. Other Investments Other investments primarily reflect the Company’s interests in affordable housing partnerships and syndicated loans. Affordable housing partnerships are accounted for under the equity method. Financing Receivables Financing receivables are comprised of commercial loans, policy loans, and deposit receivables. Commercial Loans Commercial loans include commercial mortgage loans and syndicated loans and are recorded at amortized cost less the allowance for loan losses. Commercial mortgage loans are recorded within Mortgage loans and syndicated loans are recorded within Other investments. Commercial mortgage loans are loans on commercial properties that are originated by the Company. Syndicated loans represent the Company’s investment in loan syndications originated by unrelated third parties. Interest income is accrued as earned on the unpaid principal balances of the loans. Interest income recognized on commercial mortgage loans and syndicated loans is recorded in Net investment income. Policy Loans Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, there is no allowance for credit losses. Interest income is accrued as earned on the unpaid principal balances of the loans. Interest income recognized on policy loans is recorded in Net investment income. Deposit Receivables For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability related to insurance risk in accordance with applicable accounting standards. If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits made and any related embedded derivatives are included in Receivables. As amounts are received, consistent with the underlying contracts, deposit receivables are adjusted. Deposit receivables are accreted using the interest method and the accretion is reported in Other revenues. See Note 7 for additional information on financing receivables. Allowance for Credit Losses The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected over the asset’s expected life, considering past events, current conditions and reasonable and supportable forecasts of future economic conditions. Prior to January 1, 2020, the allowance for credit losses was based on an incurred loss model that did not require estimating expected credit losses over the expected life of the asset. Estimates of expected credit losses consider both historical charge-off and recovery experience as well as current economic conditions and management’s expectation of future charge-off and recovery levels. Expected losses related to risks other than credit risk are excluded from the allowance for credit losses. The allowance for credit losses is measured and recorded upon initial recognition of the loan, regardless of whether it is originated or purchased. The methods and information used to develop the allowance for credit losses for each class of financing receivable are discussed below. Commercial Loans The allowance for credit losses for commercial mortgage loans and syndicated loans utilizes a probability of default and loss severity approach to estimate lifetime expected credit losses. Actual historical default and loss severity data for each type of commercial loan is adjusted for current conditions and reasonable and supportable forecasts of future economic conditions to develop the probability of default and loss severity assumptions that are applied to the amortized cost basis of the loans over the expected life of each portfolio. The allowance for credit losses on commercial mortgage loans and syndicated loans is recorded through provisions charged to Net realized investment gains (losses) and is reduced/increased by net charge-offs/recoveries. Management determines the adequacy of the allowance for credit losses based on the overall loan portfolio composition, recent and historical loss experience, and other pertinent factors, including when applicable, internal risk ratings, loan-to-value (“LTV”) ratios and occupancy rates, along with reasonable and supportable forecasts of economic and market conditions. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change. While the Company may attribute portions of the allowance to specific loan pools as part of the allowance estimation process, the entire allowance is available to absorb losses expected over the life of the loan portfolio. Deposit receivables The allowance for credit losses is calculated on an individual reinsurer basis. Deposit receivables are collateralized by underlying trust arrangements. Management evaluates the terms of the reinsurance and trust agreements, the nature of the underlying assets, and the potential for changes in the collateral value when considering the need for an allowance for credit losses. Nonaccrual Loans Commercial mortgage loans and syndicated loans are placed on nonaccrual status when either the collection of interest or principal has become 90 days past due or is otherwise considered doubtful of collection. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Interest payments received on loans on nonaccrual status are generally applied to principal unless the remaining principal balance has been determined to be fully collectible. Management has elected to exclude accrued interest in its measurement of the allowance for credit losses for commercial mortgage loans and syndicated loans. Restructured Loans A loan is classified as a restructured loan when the Company makes certain concessionary modifications to contractual terms for borrowers experiencing financial difficulties. When the interest rate, minimum payments, and/or due dates have been modified in an attempt to make the loan more affordable to a borrower experiencing financial difficulties, the modification is considered a troubled debt restructuring. Modifications to loan terms do not automatically result in troubled debt restructurings (“TDRs”). Per the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus, modifications made on a good faith basis in response to the coronavirus disease 2019 (“COVID-19”) pandemic to borrowers who were not more than 30 days past due as of December 31, 2019, such as payment deferrals, extensions of repayment terms, fee waivers, or delays in payment that are not significant to the unpaid principal value of the loan, are not considered TDRs. Generally, performance prior to the restructuring or significant events that coincide with the restructuring are considered in assessing whether the borrower can meet the new terms which may result in the loan being returned to accrual status at the time of the restructuring or after a performance period. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status. Charge-off and Foreclosure Charge-offs are recorded when the Company concludes that all or a portion of the commercial mortgage loan or syndicated loan is uncollectible. Factors used by the Company to determine whether all amounts due on commercial mortgage loans will be collected, include but are not limited to, the financial condition of the borrower, performance of the underlying properties, collateral and/or guarantees on the loan, and the borrower’s estimated future ability to pay based on property type and geographic location. Factors used by the Company to determine whether all amounts due on syndicated loans will be collected, include but are not limited to the borrower’s financial condition, industry outlook, and internal risk ratings based on rating agency data and internal analyst expectations. If it is determined that foreclosure on a commercial mortgage loan is probable and the fair value is less than the current loan balance, expected credit losses are measured as the difference between the amortized cost basis of the asset and fair value less estimated selling costs. Upon foreclosure, the commercial mortgage loan and related allowance are reversed, and the foreclosed property is recorded as real estate owned within Other assets. Cash and Cash Equivalents Cash equivalents include highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less. Reinsurance The Company cedes insurance risk to other insurers under reinsurance agreements. Reinsurance premiums paid and benefits received are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Reinsurance premiums for traditional life, long term care (“LTC”) , DI and life contingent immediate annuities, net of the change in any prepaid reinsurance asset, are reported as a reduction of Premiums. UL and VUL reinsurance premiums are reported as a reduction of Policy and contract charges. In addition, for UL and VUL insurance policies, the net cost of reinsurance ceded, which represents the discounted amount of the expected cash flows between the reinsurer and the Company, is classified as an asset or contra asset and amortized over the estimated life of the policies in proportion to the estimated gross profits (“EGPs”) and is subject to retrospective adjustment in a manner similar to retrospective adjustment of DAC. The assumptions used to project the expected cash flows are consistent with those used for DAC valuation for the same contracts. Changes in the net cost of reinsurance are reflected as a component of Policy and contract charges. Reinsurance recoveries are reported as components of Benefits, claims, losses and settlement expenses. Insurance liabilities are reported before the effects of reinsurance. Policyholder account balances, future policy benefits and claims recoverable under reinsurance contracts are recorded within Reinsurance recoverables, net of the allowance for credit losses. The Company evaluates the financial condition of its reinsurers prior to entering into new reinsurance contracts and on a periodic basis during the contract term. The allowance for credit losses related to reinsurance recoverable is based on applying observable industry data including insurer ratings, default and loss severity data to the Company’s reinsurance recoverable balances. Management evaluates the results of the calculation and considers differences between the industry data and the Company’s data. Such differences include the fact that the Company has no actual history of losses and the fact that industry data may contain non-life insurers. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change given the long-term nature of these receivables. In addition, the Company has a reinsurance protection agreement that provides credit protections for its reinsured long term care business. The allowance for credit losses on reinsurance recoverable is recorded through provisions charged to Benefits, claims, losses and settlement expenses. The Company also assumes life insurance and fixed annuity risk from other insurers in limited circumstances. Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Liabilities for assumed business are recorded within Policyholder account balances, future policy benefits and claims. See Note 9 for additional information on reinsurance. Land, Buildings, Equipment and Software Land, buildings, equipment and internally developed software are carried at cost less accumulated depreciation or amortization and are reflected within other assets. The Company uses the straight-line method of depreciation and amortization over periods ranging from three As of December 31, 2021 and 2020, land, buildings, equipment and software were $123 million and $124 million, respectively, net of accumulated depreciation of $216 million and $202 million, respectively. Depreciation and amortization expense for the years ended December 31, 2021, 2020 and 2019 was $14 million, $14 million and $16 million, respectively. Derivative Instruments and Hedging Activities Freestanding derivative instruments are recorded at fair value and are reflected in Other assets or Other liabilities. The Company’s policy is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. The Company primarily uses derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. The Company occasionally designates derivatives as (i) hedges of changes in the fair value of assets, liabilities, or firm commitments (“fair value hedges”) or (ii) hedges of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedges”). Derivative instruments that are entered into for hedging purposes are designated as such at the time the Company enters into the contract. For all derivative instruments that are designated for hedging activities, the Company documents all of the hedging relationships between the hedge instruments and the hedged items at the inception of the relationships. Management also documents its risk management objectives and strategies for entering into the hedge transactions. The Company assesses, at inception and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of hedged items. If it is determined that a derivative is no longer highly effective as a hedge, the Company will discontinue the application of hedge accounting. For derivative instruments that do not qualify for hedge accounting or are not designated as accounting hedges, changes in fair value are recognized in current period earnings. Changes in fair value of derivatives are presented in the Consolidated Statements of Income based on the nature and use of the instrument. Changes in fair value of derivatives used as economic hedges are presented in the Consolidated Statements of Income with the corresponding change in the hedged asset or liability. For derivative instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as changes in the fair value of the hedged assets, liabilities or firm commitments, are recognized on a net basis in current period earnings. The carrying value of the hedged item is adjusted for the change in fair value from the designated hedged risk. If a fair value hedge designation is removed or the hedge is terminated prior to maturity, previous adjustments to the carrying value of the hedged item are recognized into earnings over the remaining life of the hedged item. For derivative instruments that qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is reported in AOCI and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Income with the hedged instrument or transaction impact. Any ineffective portion of the gain or loss is reported in current period earnings as a component of Net investment income. If a hedge designation is removed or a hedge is terminated prior to maturity, the amount previously recorded in AOCI is reclassified to earnings over the period that the hedged item impacts earnings. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in AOCI are recognized in earnings immediately. The equity component of indexed annuity, structured variable annuity and IUL obligations are considered embedded derivatives. Additionally, certain annuities contain GMAB and GMWB provisions. The GMAB and the non-life contingent benefits associated with GMWB provisions are also considered embedded derivatives. See Note 13 for information regarding the Company’s fair value measurement of derivative instruments and Note 17 for the impact of derivatives on the Consolidated Statements of Income. Deferred Acquisition Costs The Company incurs costs in connection with acquiring new and renewal insurance and annuity businesses. The portion of these costs which are incremental and direct to the acquisition of a new or renewal insurance policy or annuity contract are deferred. Significant costs capitalized include sales based compensation related to the acquisition of new and renewal insurance policies and annuity contracts, medical inspection costs for successful sales, and a portion of employee compensation and benefit costs based upon the amount of time spent on successful sales. Sales based compensation paid to AFS advisors and employees and third-party distributors is capitalized. Employee compensation and benefits costs which are capitalized relate primarily to sales efforts, underwriting and processing. All other costs which are not incremental direct costs of acquiring an insurance policy or annuity contract are expensed as incurred. The DAC associated with insurance policies or annuity contracts that are significantly modified or internally replaced with another contract are accounted for as contract terminations. These transactions are anticipated in establishing amortization periods and other valuation assumptions. The Company monitors other DAC amortization assumptions, such as persistency, mortality, morbidity, interest margin, variable annuity benefit utilization and maintenance expense levels each quarter and, when assessed independently, each could impact the Company’s DAC balances. The analysis of DAC balances and the corresponding amortization is a dynamic process that considers all relevant factors and assumptions described previously. Unless the Company’s management identifies a significant deviation over the course of the quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year. Non-Traditional Long-Duration Products For non-traditional long-duration products (including variable, structured variable and fixed deferred annuity contracts, UL and VUL insurance products), DAC are amortized based on projections of EGPs over amortization periods equal to the approximate life of the business. EGPs vary based on persistency rates (assumptions at which contractholders and policyholders are expected to surrender, make withdrawals from and make deposits to their contracts), mortality levels, client asset value growth rates (based on equity and bond market performance), variable annuity benefit utilization and interest margins (the spread between earned rates on invested assets and rates credited to contractholder and policyholder accounts) and are management’s best estimates. Management regularly monitors financial market conditions and actual contractholder and policyholder behavior experience and compares them to its assumptions. These assumptions are updated whenever it appears that earlier estimates should be revised. When assumptions are changed, the percentage of EGPs used to amortize DAC might also change. A change in the required amortization percentage is applied retrospectively; an increase in amortization percentage will result in a decrease in the DAC balance and an increase in DAC amortization expense, while a decrease in amortization percentage will result in an increase in the DAC balance and a decrease in DAC amortization expense. The impact on results of operations of changing assumptions can be either positive or negative in any particular period and is reflected in the period in which such changes are made. At each balance sheet date, the DAC balance is adjusted for the effect that would result from the realization of unrealized gains (losses) on securities impacting EGPs, with the related change recognized through AOCI. The client asset value growth rates are the rates at which variable annuity and VUL insurance contract values invested in separate accounts are assumed to appreciate in the future. The rates used vary by equity and fixed income investments. Management reviews and, where appropriate, adjusts its assumptions with respect to client asset value growth rates on a regular basis. The Company typically uses a five-year mean reversion process as a guideline in setting near-term equity fund growth rates based on a long-term view of financial market performance as well as recent actual performance. The suggested near-term equity fund growth rate is reviewed quarterly to ensure consistency with management’s assessment of anticipated equity market performance. DAC amortization expense recorded in a period when client asset value growth rates exceed management’s near-term estimate will typically be less than in a period when growth rates fall short of management’s near-term estimate. Traditional Long-Duration Products For traditional long-duration products (including traditional life and DI insurance products), DAC are generally amortized as a percentage of premiums over amortization periods equal to the premium paying period. The assumptions made in calculating the DAC balance and DAC amortization expense are consistent with those used in determining the liabilities. For traditional life and DI insurance products, the assumptions provide for adverse deviations in experience and are revised only if management concludes experience will be so adverse that DAC are not recoverable. If management concludes that DAC are not recoverable, DAC are reduced to the amount that is recoverable based on best estimate assumptions and there is a corresponding expense recorded in the Consolidated Statements of Income. Deferred Sales Inducement Costs Sales inducement costs consist of bonus interest credits and premium credits added to certain annuity contract and insurance policy values. These benefits are capitalized to the extent they are incremental to amounts that would be credited on similar contracts without the applicable feature. The amounts capitalized are amortized using the same methodology and assumptions used to amortize DAC. DSIC is recorded in Other assets and amortization of DSIC is recorded in Benefits, claims, losses and settlement expenses. Separate Account Assets and Liabilities Separate account assets represent funds held for the benefit of and Separate account liabilities represent the obligation to the variable annuity contractholders and variable life insurance policyholders who have a contractual right to receive the benefits of their contract or policy and bear the related investment risk. Gains and losses on separate account assets accrue directly to the contractholder or policyholder and are not reported in the Company’s Consolidated Statements of Income. Separate account assets are recorded at fair value and Separate account liabilities are equal to the assets recognized. Policyholder Account Balances, Future Policy Benefits and Claims The Company establishes reserves to cover the benefits associated with non-traditional and traditional long-duration products. Non-traditional long-duration products include variable and structured variable annuity contracts, fixed annuity contracts and UL and VUL policies. Traditional long-duration products include term life, whole life, DI and LTC ins |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Adoption of New Accounting Standards Income Taxes – Simplifying the Accounting for Income Taxes In December 2019, the Financial Accounting Standards Board (“FASB”) updated the accounting standards to simplify the accounting for income taxes. The update eliminates certain exceptions to: (1) accounting principles related to intra-period tax allocation to be applied on a prospective basis, (2) deferred tax liabilities related to outside basis differences to be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption, and (3) year-to-date losses in interim periods to be applied on a prospective basis. The update also amends existing guidance related to situations when an entity receives: (1) a step-up in the tax basis of goodwill to be applied on a prospective basis, (2) an allocation of income tax expense when members of a consolidated tax filing group issue separate financial statements to be applied on a retrospective basis for all periods presented, (3) interim recognition of enactment of tax laws or rate changes to be applied on a prospective basis, and (4) franchise taxes and other taxes partially based on income to be applied on a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The standard is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The Company adopted the standard on January 1, 2021. The adoption of this standard had no impact on the Company’s consolidated financial condition or results of operations. Future Adoption of New Accounting Standards Reference Rate Reform – Expedients for Contract Modifications In March 2020, the FASB updated the accounting standards to provide optional expedients and exceptions for applying GAAP to contracts, hedging or other transactions that are affected by reference rate reform (i.e., the elimination of LIBOR). The following expedients are provided for modified contracts whose reference rate is changed: (1) receivables and debt contracts are accounted for prospectively by adjusting the effective interest rate, (2) leases are accounted for as a continuation of the existing contracts with no reassessments of the lease classification and discount rate or remeasurements of lease payments that otherwise would be required, and (3) an entity is not required to reassess its original conclusion about whether that contract contains an embedded derivative that is clearly and closely related to the economic characteristics and risks of the host contract. The amendments in this update were effective upon issuance and must be elected prior to December 31, 2022. When elected, the optional expedients for contract modifications must be applied consistently for all eligible contracts or eligible transactions. In January 2021, FASB updated the standard to allow an entity to elect to apply the treatment under the original guidance to derivative instruments that use an interest rate that for margining, discounting or contract price alignment that will be modified due to reference rate reform but did not qualify under the original guidance. The Company has not yet applied any of the optional expedients. The adoption of the standard is not expected to have an impact on the Company’s consolidated results of operations and financial condition. Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the FASB updated the accounting standard related to long-duration insurance contracts. The guidance revises key elements of the measurement models and disclosure requirements for long-duration insurance contracts issued by insurers and reinsurers. The guidance establishes a significant new category of benefit features called market risk benefits that protect the contractholder from other-than-nominal capital market risk and expose the insurer to that risk. Insurers will have to measure market risk benefits at fair value. Market risk benefits include variable annuity guaranteed benefits (i.e. guaranteed minimum death, withdrawal, withdrawal for life, accumulation and income benefits). The portion of the change in fair value attributable to a change in the instrument-specific credit risk of market risk benefits in a liability position will be recorded in OCI. Significant changes also relate to the measurement of the liability for future policy benefits for nonparticipating traditional long-duration insurance contracts and immediate annuities with a life contingent feature including the following: • Insurers will be required to review and update the cash flow assumptions used to measure the liability for future policy benefits rather than using assumptions locked in at contract inception. The review of assumptions to measure the liability for all future policy benefits will be required annually at the same time each year, or more frequently if suggested by experience. The effect of updating assumptions will be measured on a retrospective catch-up basis and presented separate from the ongoing policyholder benefit expense in the statement of operations in the period the update is made. This new unlocking process will be required for the Company’s term and whole life insurance, disability income, long term care insurance and immediate annuities with a life contingent feature. • The discount rate used to measure the liability for future policy benefits will be standardized. The current requirement to use a discount rate reflecting expected investment yields will change to an upper-medium grade (low credit risk) fixed income corporate instrument yield (generally interpreted as an “A” rating) reflecting the duration characteristics of the liability. Entities will be required to update the discount rate at each reporting date with the effect of discount rate changes reflected in OCI. • The current premium deficiency test is being replaced with a net premium ratio cap of 100%. If the net premium ratio (i.e. the ratio of the present value of total expected benefits and related expenses to the present value of total expected premiums) exceeds 100%, insurers are required to recognize a loss in the statement of operations in the period. Contracts from different issue years will no longer be permitted to be grouped to determine contracts in a loss position. In addition, the update requires DAC and DSIC relating to all long-duration contracts and most investment contracts to be amortized on a straight-line basis over the expected life of the contract independent of profit emergence. Under the new guidance, interest will not accrue to the deferred balance and DAC and DSIC will not be subject to an impairment test. The update requires significant additional disclosures, including disaggregated rollforwards of the liability for future policy benefits, policyholder account balances, market risk benefits, DAC and DSIC, as well as qualitative and quantitative information about |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | The following table presents disaggregated revenue from contracts with customers and a reconciliation to total revenues reported on the Consolidated Statements of Income. Years Ended December 31, 2021 2020 2019 (in millions) Policy and contract charges Affiliated (from Columbia Management Investment Distributors, Inc.) $ 193 $ 173 $ 170 Unaffiliated 17 14 14 Total 210 187 184 Other revenues Administrative fees Affiliated (from Columbia Management Investment Services, Corp.) 49 44 43 Unaffiliated 20 18 20 69 62 63 Other fees Affiliated (from Columbia Management Investment Advisers, LLC (“CMIA”) and Columbia Wanger Asset Management, LLC) 389 351 344 Unaffiliated 5 4 4 394 355 348 Total 463 417 411 Total revenue from contracts with customers 673 604 595 Revenue from other sources (1) 2,798 3,172 3,223 Total revenues $ 3,471 $ 3,776 $ 3,818 (1) Amounts primarily consist of revenue associated with insurance and annuity products or financial instruments. The following discussion describes the nature, timing, and uncertainty of revenues and cash flows arising from the Company’s contracts with customers. Policy and contract charges The Company earns revenue for providing distribution-related services to affiliated and unaffiliated mutual funds that are available as underlying investments in its variable annuity and variable life insurance products. The performance obligation is satisfied at the time the mutual fund is distributed. Revenue is recognized over the time the mutual fund is held in the variable product and is generally earned based on a fixed rate applied, as a percentage, to the net asset value of the fund. The revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company’s control, including market volatility and how long the fund(s) remain in the insurance policy or annuity contract. The revenue will not be recognized until it is probable that a significant reversal will not occur. These fees are accrued and collected on a monthly basis. Other revenues Administrative fees The Company earns revenue for providing customer support, contract servicing and administrative services for affiliated and unaffiliated mutual funds that are available as underlying instruments in its variable annuity and variable life insurance products. The transfer agent and administration revenue is earned daily based on a fixed rate applied, as a percentage, to assets under management. These performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. These fees are accrued and collected on a monthly basis. Other fees The Company earns revenue for providing affiliated and unaffiliated partners an opportunity to educate the financial advisors of its affiliate, AFS, that sell the Company's products as well as product and marketing personnel to support the offer, sale and servicing of funds within the Company's variable annuity and variable life insurance products. These payments allow the parties to train and support the advisors, explain the features of their products, and distribute marketing and educational materials. The affiliated revenue is earned based on a rate, updated at least annually, which is applied, as a percentage, to the market value of assets invested. The unaffiliated revenue is earned based on a fixed rate applied, as a percentage, to the market value of assets invested. These performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. These fees are accrued and collected on a monthly basis. Receivables Receivables for revenue from contracts with customers are recognized when the performance obligation is satisfied and the Company has an unconditional right to the revenue. Receivables related to revenues from contracts with customers were $62 million and $57 million as of December 31, 2021 and 2020, respectively. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | The Company provides asset management services to CLOs which are considered to be VIEs that are sponsored by the Company. In addition, the Company invests in structured investments other than CLOs and certain affordable housing partnerships which are considered VIEs. The Company consolidates the CLOs if the Company is deemed to be the primary beneficiary. The Company has no obligation to provide financial or other support to the non-consolidated VIEs beyond its initial investment and existing future funding commitments, and the Company has not provided any support to these entities. The Company has unfunded commitments related to consolidated CLOs of $27 million and $13 million as of December 31, 2021 and 2020, respectively. See Note 20 for information on future funding commitments of other VIEs. See Note 2 for further discussion of the Company’s accounting policy on consolidation. CLOs CLOs are asset backed financing entities collateralized by a pool of assets, primarily syndicated loans and, to a lesser extent, high-yield bonds. Multiple tranches of debt securities are issued by a CLO, offering investors various maturity and credit risk characteristics. The debt securities issued by the CLOs are non-recourse to the Company. The CLO’s debt holders have recourse only to the assets of the CLO. The assets of the CLOs cannot be used by the Company. Scheduled debt payments are based on the performance of the CLO’s collateral pool. The Company earns management fees from the CLOs based on the value of the CLO’s collateral pool and, in certain instances, may also receive incentive fees. The fee arrangement is at market and commensurate with the level of effort required to provide those services. The Company has invested in a portion of the unrated, junior subordinated notes and highly rated senior notes of certain CLOs. The Company consolidates certain CLOs where it is the primary beneficiary and has the power to direct the activities that most significantly impact the economic performance of the CLO. Affordable Housing Partnerships and Other Real Estate Partnerships The Company is a limited partner in affordable housing partnerships that qualify for government-sponsored low income housing tax credit programs and partnerships that invest in multi-family residential properties that were originally developed with an affordable housing component. The Company has determined it is not the primary beneficiary and therefore does not consolidate these partnerships. A majority of the limited partnerships are VIEs. The Company’s maximum exposure to loss as a result of its investment in the VIEs is limited to the carrying value. The carrying value is reflected in other investments and was $138 million and $200 million as of December 31, 2021 and 2020, respectively. The Company had a $8 million and $9 million liability recorded as of December 31, 2021 and 2020, respectively, related to original purchase commitments not yet remitted to the VIEs. The Company has not provided any additional support and is not contractually obligated to provide additional support to the VIEs beyond the funding commitments. Structured Investments The Company invests in structured investments which are considered VIEs for which it is not the sponsor. These structured investments typically invest in fixed income instruments and are managed by third parties and include asset backed securities, and commercial and residential mortgage backed securities. The Company classifies these investments as Available-for-Sale securities. The Company has determined that it is not the primary beneficiary of these structures due to the size of the Company’s investment in the entities and position in the capital structure of these entities. The Company's maximum exposure to loss as a result of its investment in these structured investments is limited to its amortized cost. See Note 6 for additional information on these structured investments. Fair Value of Assets and Liabilities The Company categorizes its fair value measurements according to a three-level hierarchy. See Note 13 for the definition of the three levels of the fair value hierarchy. The following tables present the balances of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis: December 31, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Common stocks $ — $ 3 $ — $ 3 Syndicated loans — 2,117 64 2,181 Total investments — 2,120 64 2,184 Receivables — 17 — 17 Other assets — — 3 3 Total assets at fair value $ — $ 2,137 $ 67 $ 2,204 Liabilities Debt (1) $ — $ 2,164 $ — $ 2,164 Other liabilities — 137 — 137 Total liabilities at fair value $ — $ 2,301 $ — $ 2,301 December 31, 2020 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Corporate debt securities $ — $ 8 $ — $ 8 Common stocks — 1 — 1 Syndicated loans — 1,817 92 1,909 Total investments — 1,826 92 1,918 Receivables — 16 — 16 Other assets — — 2 2 Total assets at fair value $ — $ 1,842 $ 94 $ 1,936 Liabilities Debt (1) $ — $ 1,913 $ — $ 1,913 Other liabilities — 69 — 69 Total liabilities at fair value $ — $ 1,982 $ — $ 1,982 (1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.2 billion and $2.0 billion as of December 31, 2021 and 2020, respectively. The following tables provide a summary of changes in Level 3 assets held by consolidated investment entities measured at fair value on a recurring basis: Syndicated Loans Other Assets Balance, January 1, 2021 $ 92 $ 2 Total gains (losses) included in: Net income 2 (1) 1 (1) Purchases 106 — Sales (38) — Settlements (49) — Transfers into Level 3 119 2 Transfers out of Level 3 (150) (2) Deconsolidation of consolidated investment entities (18) — Balance, December 31, 2021 $ 64 $ 3 Changes in unrealized gains (losses) included in net income relating to assets held at December 31, 2021 $ — $ 1 (1) Syndicated Loans Other Assets (in millions) Balance, January 1, 2020 $ — $ — Purchases — 2 Sales (2) — Transfers into Level 3 15 — Transfers out of Level 3 (70) — Consolidation of consolidated investment entities 149 — Balance, December 31, 2020 $ 92 $ 2 Changes in unrealized gains (losses) included in net income relating to assets held at December 31, 2020 $ — $ — (1) Included in Net investment income. Securities and loans transferred from Level 3 primarily represent assets with fair values that are now obtained from a third-party pricing service with observable inputs or priced in active markets. Securities and loans transferred to Level 3 represent assets with fair values that are now based on a single non-binding broker quote. All Level 3 measurements as of December 31, 2021 and 2020 were obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company. Determination of Fair Value Assets Investments The fair value of syndicated loans obtained from third-party pricing services using a market approach with observable inputs is classified as Level 2. The fair value of syndicated loans obtained from third-party pricing services with a single non-binding broker quote as the underlying valuation source is classified as Level 3. The underlying inputs used in non-binding broker quotes are not readily available to the Company. See Note 13 for a description of the Company’s determination of the fair value of corporate debt securities, common stocks and other investments. Receivables For receivables of the consolidated CLOs, the carrying value approximates fair value as the nature of these assets has historically been short term and the receivables have been collectible. The fair value of these receivables is classified as Level 2. Liabilities Debt The fair value of the CLOs’ assets, typically syndicated bank loans, is more observable than the fair value of the CLOs’ debt tranches for which market activity is limited and less transparent. As a result, the fair value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets and is classified as Level 2. Other Liabilities Other liabilities consist primarily of securities purchased but not yet settled held by consolidated CLOs. The carrying value approximates fair value as the nature of these liabilities has historically been short term. The fair value of these liabilities is classified as Level 2. Other liabilities also include accrued interest on the CLO debt. Fair Value Option The Company has elected the fair value option for the financial assets and liabilities of the consolidated CLOs. Management believes that the use of the fair value option better matches the changes in fair value of assets and liabilities related to the CLOs. The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected: December 31, 2021 December 31, 2020 (in millions) Syndicated loans Unpaid principal balance $ 2,233 $ 1,990 Excess unpaid principal over fair value (52) (81) Fair value $ 2,181 $ 1,909 Fair value of loans more than 90 days past due $ — $ 5 Fair value of loans in nonaccrual status 13 19 Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both 10 24 Debt Unpaid principal balance $ 2,296 $ 2,069 Excess unpaid principal over fair value (132) (156) Carrying value (1) $ 2,164 $ 1,913 (1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.2 billion and $2.0 billion as of December 31, 2021 and 2020, respectively. During the first quarter of 2021, the Company launched two new CLOs and issued debt of $817 million. Interest income from syndicated loans, bonds and structured investments is recorded based on contractual rates in net investment income. Gains and losses related to changes in the fair value of investments are recorded in net investment income and gains and losses on sales of investments are recorded in net realized investment gains (losses). Interest expense on debt is recorded in interest and debt expense with gains and losses related to changes in the fair value of debt recorded in net investment income. Total net gains (losses) recognized in Net investment income related to the changes in fair value of investments the Company owns in the consolidated CLOs where it has elected the fair value option and collateralized financing entity accounting were immaterial for the years ended December 31, 2021 and 2020. Debt of the consolidated investment entities and the stated interest rates were as follows: Carrying Value Weighted Average December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 (in millions) Debt of consolidated CLOs due 2028-2034 $ 2,164 $ 1,913 1.7 % 2.1 % |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Available-for-Sale securities distributed by type were as follows: Description of Securities December 31, 2021 Amortized Cost Gross Gross Allowance for Credit Losses Fair (in millions) Fixed maturities: Corporate debt securities $ 8,447 $ 1,238 $ (47) $ — $ 9,638 Residential mortgage backed securities 2,226 36 (12) — 2,250 Commercial mortgage backed securities 2,615 56 (15) — 2,656 State and municipal obligations 832 244 (1) (1) 1,074 Asset backed securities 517 22 (2) — 537 Foreign government bonds and obligations 80 4 (1) — 83 U.S. government and agency obligations 1 — — — 1 Total $ 14,718 $ 1,600 $ (78) $ (1) $ 16,239 Description of Securities December 31, 2020 Amortized Cost Gross Gross Allowance for Credit Losses Fair (in millions) Fixed maturities: Corporate debt securities $ 10,982 $ 1,903 $ (2) $ (10) $ 12,873 Residential mortgage backed securities 2,888 115 (1) — 3,002 Commercial mortgage backed securities 3,935 235 (4) — 4,166 State and municipal obligations 1,050 295 (1) — 1,344 Asset backed securities 1,168 45 (1) — 1,212 Foreign government bonds and obligations 236 22 (1) — 257 U.S. government and agency obligations 1 — — — 1 Total $ 20,260 $ 2,615 $ (10) $ (10) $ 22,855 In March 2020, the Company purchased $368 million of investments at fair value, primarily agency residential mortgage backed securities, from Ameriprise Financial. As of December 31, 2021 and 2020, accrued interest of $118 million and $158 million, respectively, is excluded from the amortized cost basis of Available-for-Sale securities in the tables above and is recorded in Accrued investment income. As of December 31, 2021 and 2020, investment securities with a fair value of $2.4 billion and $2.9 billion, respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $314 million and $454 million, respectively, may be sold, pledged or rehypothecated by the counterparty. As of both December 31, 2021 and 2020, fixed maturity securities comprised approximately 85% of the Company’s total investments. Rating agency designations are based on the availability of ratings from Nationally Recognized Statistical Rating Organizations (“NRSROs”), including Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”) and Fitch Ratings Ltd. (“Fitch”). The Company uses the median of available ratings from Moody’s, S&P and Fitch, or if fewer than three ratings are available, the lower rating is used. When ratings from Moody’s, S&P and Fitch are unavailable, the Company may utilize ratings from other NRSROs or rate the securities internally. As of December 31, 2021 and 2020, $359 million and $553 million, respectively, of securities were internally rated by CMIA, an affiliate of the Company, using criteria similar to those used by NRSROs. A summary of fixed maturity securities by rating was as follows: Ratings December 31, 2021 December 31, 2020 Amortized Cost Fair Percent of Amortized Fair Percent of (in millions, except percentages) AAA $ 5,031 $ 5,107 31 % $ 7,323 $ 7,698 34 % AA 757 932 6 1,036 1,266 6 A 1,662 2,013 12 2,663 3,235 14 BBB 6,293 7,063 44 7,770 9,026 39 Below investment grade 975 1,124 7 1,468 1,630 7 Total fixed maturities $ 14,718 $ 16,239 100 % $ 20,260 $ 22,855 100 % As of December 31, 2021 and 2020, approximately 40% and 37%, respectively, of securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. The Company had holdings of $289 million in Ameriprise Advisor Financing, LLC (“AAF”), an affiliate of the Company, $247 million in Kraft Heinz Co., $225 million in Duke Energy Corp., $221 million in AT&T Inc., and $210 million in Suncor Energy Inc., which were greater than 10% of the Company’s total shareholder’s equity as of December 31, 2021. The Company had holdings of $372 million in AAF which was greater than 10% of the Company’s total shareholder’s equity as of December 31, 2020. There were no other holdings of any other issuer greater than 10% of the Company’s total shareholder’s equity as of both December 31, 2021 and 2020. The following tables summarize the fair value and gross unrealized losses on Available-for-Sale securities, aggregated by major investment type and the length of time that individual securities have been in a continuous unrealized loss position for which no allowance for credit losses has been recorded: Description of Securities December 31, 2021 Less than 12 months 12 months or more Total Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized (in millions, except number of securities) Corporate debt securities 102 $ 2,007 $ (42) 14 $ 81 $ (5) 116 $ 2,088 $ (47) Residential mortgage backed securities 55 1,162 (12) 2 1 — 57 1,163 (12) Commercial mortgage backed securities 60 809 (15) 3 13 — 63 822 (15) State and municipal obligations 25 63 (1) — — — 25 63 (1) Asset backed securities 5 91 (2) — — — 5 91 (2) Foreign government bonds and obligations 5 6 — 6 4 (1) 11 10 (1) Total 252 $ 4,138 $ (72) 25 $ 99 $ (6) 277 $ 4,237 $ (78) Description of Securities December 31, 2020 Less than 12 months 12 months or more Total Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized (in millions, except number of securities) Corporate debt securities 26 $ 228 $ (1) 1 $ 12 $ (1) 27 $ 240 $ (2) Residential mortgage backed securities 11 47 (1) 7 14 — 18 61 (1) Commercial mortgage backed securities 12 179 (3) 7 60 (1) 19 239 (4) State and municipal obligations 2 4 — 1 4 (1) 3 8 (1) Asset backed securities 4 65 — 2 36 (1) 6 101 (1) Foreign government bonds and obligations 1 3 — 7 8 (1) 8 11 (1) Total 56 $ 526 $ (5) 25 $ 134 $ (5) 81 $ 660 $ (10) As part of the Company’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities for which an allowance for credit losses has not been recognized during the year ended December 31, 2021 is primarily attributable to higher interest rates. The Company did not recognize these unrealized losses in earnings because it was determined that such losses were due to non-credit factors. The Company does not intend to sell these securities and does not believe that it is more likely than not that the Company will be required to sell these securities before the anticipated recovery of the remaining amortized cost basis. As of December 31, 2021 and 2020, approximately 92% and 83%, respectively, of the total of Available-for-Sale securities with gross unrealized losses were considered investment grade. The following tables present a rollforward of the allowance for credit losses on Available-for-Sale securities: Corporate Debt Securities State and Municipal Obligations Total (in millions) Balance at January 1, 2021 $ 10 $ — $ 10 Additions for which credit losses were not previously recorded — 1 1 Charge-offs (10) — (10) Balance at December 31, 2021 $ — $ 1 $ 1 Corporate Debt Securities (in millions) Balance at January 1, 2020 (1) $ — Additions for which credit losses were not previously recorded 13 Additional increases (decreases) on securities that had an allowance recorded in a previous period (3) Balance at December 31, 2020 $ 10 (1) Prior to January 1, 2020, credit losses on Available-for-Sale securities were not recorded in an allowance but were recorded as a reduction of the book value of the security if the security was other-than-temporarily impaired. Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in Net realized investment gains (losses) were as follows: Years Ended December 31, 2021 2020 2019 (in millions) Gross realized investment gains $ 576 $ 17 $ 29 Gross realized investment losses (6) (2) (14) Credit losses (1) (10) (17) Other impairments (13) — — Total $ 556 $ 5 $ (2) Credit losses for the year ended December 31, 2021 primarily related to recording an allowance for credit losses on certain state and municipal securities. For the year ended December 31, 2020, credit losses primarily related to recording an allowance for credit losses on certain corporate debt securities, primarily in the oil and gas industry. Other-than-temporary impairments for the year ended December 31, 2019 related to corporate debt securities. Other impairments for the year ended December 31, 2021 related to Available-for-Sale securities that were impaired when they were classified as held for sale prior to being sold in the reinsurance transaction. See Note 1 for more information on the reinsurance transaction. See Note 18 for a rollforward of net unrealized investment gains (losses) included in AOCI. Available-for-Sale securities by contractual maturity as of December 31, 2021 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 470 $ 476 Due after one year through five years 1,878 1,981 Due after five years through 10 years 3,283 3,359 Due after 10 years 3,729 4,980 9,360 10,796 Residential mortgage backed securities 2,226 2,250 Commercial mortgage backed securities 2,615 2,656 Asset backed securities 517 537 Total $ 14,718 $ 16,239 Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities, commercial mortgage backed securities and asset backed securities are not due at a single maturity date. As such, these securities were not included in the maturities distribution. The following is a summary of Net investment income: Years Ended December 31, 2021 2020 2019 (in millions) Fixed maturities $ 643 $ 777 $ 848 Mortgage loans 102 115 119 Other investments 101 (3) (26) 846 889 941 Less: investment expenses 19 20 24 Total $ 827 $ 869 $ 917 Net realized investment gains (losses) are summarized as follows: Years Ended December 31, 2021 2020 2019 (in millions) Fixed maturities $ 556 $ 5 $ (2) Mortgage loans 57 (10) — Other investments (18) (5) — Total $ 595 $ (10) $ (2) |
Financing Receivables
Financing Receivables | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Financing Receivables | Financing receivables are comprised of commercial loans, policy loans, and deposit receivables. See Note 2 for information regarding the Company’s accounting policies related to financing receivables and the allowance for credit losses. Allowance for Credit Losses The following tables present a rollforward of the allowance for credit losses: Commercial Loans (in millions) Balance, January 1, 2021 $ 35 Provisions (23) Balance, December 31, 2021 $ 12 Commercial Loans (in millions) Balance, December 31, 2019 (1) $ 20 Cumulative effect of adoption of current expected credit losses guidance 3 Balance, January 1, 2020 23 Provisions 12 Balance, December 31, 2020 $ 35 (1) Prior to January 1, 2020, the allowance for credit losses was based on an incurred loss model that did not require estimating expected credit losses over the expected life of the asset. Commercial Loans (in millions) Balance, January 1, 2019 $ 20 Charge-offs — Balance, December 31, 2019 $ 20 The decrease in the allowance for credit losses provision for commercial loans reflects the sale of certain commercial mortgage loans and syndicated loans in conjunction with the fixed deferred and immediate annuity reinsurance transaction discussed in Note 1. As of December 31, 2021 and 2020, accrued interest on commercial loans was $11 million and $14 million, respectively, and is recorded in Accrued investment income and excluded from the amortized cost basis of commercial loans. Purchases and Sales During the year ended December 31, 2021, the Company sold $746 million of commercial mortgage loans. During the years ended December 31, 2021, 2020 and 2019, the Company purchased $26 million, $140 million and $121 million, respectively, of syndicated loans and sold $340 million, $13 million and $43 million, respectively, of syndicated loans. The Company has not acquired any loans with deteriorated credit quality as of the acquisition date. Credit Quality Information Nonperforming loans were nil and $7 million as of December 31, 2021 and 2020, respectively. All other loans were considered to be performing. Commercial Mortgage Loans The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Loan-to-value ratio is the primary credit quality indicator included in this review. Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates when credit risk changes. Commercial mortgage loans which management has assigned its highest risk rating were less than 1% of total commercial mortgage loans as of both December 31, 2021 and 2020. Loans with the highest risk rating represent distressed loans which the Company has identified as impaired or expects to become delinquent or enter into foreclosure within the next six months. Total commercial mortgage loan modifications through December 31, 2020 due to the COVID-19 pandemic consisted of 88 loans with a total unpaid balance of $360 million. Modifications primarily consisted of short-term forbearance and interest only payments. There were no additional modifications during the year ended December 31, 2021. As of December 31, 2021, there were no loans remaining that were modified due to COVID-19. All loans returned to their normal payment schedules. Total commercial mortgage loans past due were nil as of both December 31, 2021 and 2020. The tables below present the amortized cost basis of commercial mortgage loans by year of origination and loan-to-value ratio: December 31, 2021 Loan-to-Value Ratio 2021 2020 2019 2018 2017 Prior Total (in millions) > 100% $ — $ — $ 20 $ 10 $ — $ 29 $ 59 80% - 100% 9 2 9 2 — 29 51 60% - 80% 141 76 59 15 58 133 482 40% - 60% 37 30 75 74 49 393 658 < 40% 6 8 46 — 47 443 550 Total $ 193 $ 116 $ 209 $ 101 $ 154 $ 1,027 $ 1,800 December 31, 2020 Loan-to-Value Ratio 2020 2019 2018 2017 2016 Prior Total (in millions) > 100% $ — $ — $ 2 $ — $ — $ 10 $ 12 80% - 100% 15 16 9 3 7 15 65 60% - 80% 85 152 27 29 46 141 480 40% - 60% 20 50 74 147 111 543 945 < 40% 7 22 69 88 58 856 1,100 Total $ 127 $ 240 $ 181 $ 267 $ 222 $ 1,565 $ 2,602 Loan-to-value ratio is based on income and expense data provided by borrowers at least annually and long-term capitalization rate assumptions based on property type. In addition, the Company reviews the concentrations of credit risk by region and property type. Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows: Loans Percentage December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 (in millions) East North Central $ 183 $ 250 10 % 10 % East South Central 54 111 3 4 Middle Atlantic 107 165 6 6 Mountain 111 234 6 10 New England 21 47 1 2 Pacific 589 784 33 30 South Atlantic 477 663 26 25 West North Central 136 192 8 7 West South Central 122 156 7 6 1,800 2,602 100 % 100 % Less: allowance for credit losses 12 28 Total $ 1,788 $ 2,574 Concentrations of credit risk of commercial mortgage loans by property type were as follows: Loans Percentage December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 (in millions) Apartments $ 464 $ 680 26 % 26 % Hotel 15 49 1 2 Industrial 293 401 16 16 Mixed use 57 76 3 3 Office 254 358 14 14 Retail 589 843 33 32 Other 128 195 7 7 1,800 2,602 100 % 100 % Less: allowance for credit losses 12 28 Total $ 1,788 $ 2,574 Syndicated Loans The recorded investment in syndicated loans as of December 31, 2021 and 2020 was $43 million and $446 million, respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. Total syndicated loans past due were nil and $2 million as of December 31, 2021 and 2020, respectively. The Company assigns an internal risk rating to each syndicated loan in its portfolio ranging from 1 through 5, with 5 reflecting the lowest quality. The tables below present the amortized cost basis of syndicated loans by origination year and internal risk rating: December 31, 2021 Internal Risk Rating 2021 2020 2019 2018 2017 Prior Total (in millions) Risk 5 $ — $ — $ — $ — $ — $ — $ — Risk 4 — — — — — — — Risk 3 — — — — — 1 1 Risk 2 11 — 4 1 8 4 28 Risk 1 4 — — 3 3 4 14 Total $ 15 $ — $ 4 $ 4 $ 11 $ 9 $ 43 December 31, 2020 Internal Risk Rating 2020 2019 2018 2017 2016 Prior Total (in millions) Risk 5 $ — $ — $ — $ — $ — $ 2 $ 2 Risk 4 — — 3 7 — 7 17 Risk 3 — 7 6 19 10 18 60 Risk 2 23 42 45 51 10 32 203 Risk 1 14 25 35 43 17 30 164 Total $ 37 $ 74 $ 89 $ 120 $ 37 $ 89 $ 446 Policy Loans Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, there is no allowance for credit losses. Deposit Receivables Deposit receivables were $7.9 billion and $1.4 billion as of December 31, 2021 and 2020, respectively. Deposit receivables are fully collateralized by the fair value of the assets held in trusts. Based on management’s evaluation of the nature of the underlying assets and the potential for changes in the collateral value, there was no allowance for credit losses for deposit receivables as of December 31, 2021 and 2020. The increase in deposit receivables is primarily driven by the reinsurance transaction, effective July 1, 2021, to reinsure fixed deferred and non-life contingent immediate annuity policies. See Note 1 for more information on the fixed deferred and immediate annuity reinsurance transaction. Troubled Debt Restructurings There were no loans accounted for as a troubled debt restructuring by the Company during the years ended December 31, 2021, 2020 and 2019. There are no commitments to lend additional funds to borrowers whose loans have been restructured. |
Deferred Acquisition Costs and
Deferred Acquisition Costs and Deferred Sales Inducement Costs | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Charges, Insurers [Abstract] | |
Deferred Acquisition Costs and Deferred Sales Inducement Costs | Management updates market-related inputs on a quarterly basis and implements model changes related to the living benefit valuation. In addition, management conducts its annual review of life insurance and annuity valuation assumptions relative to current experience and management expectations including modeling changes. These aforementioned changes are collectively referred to as unlocking. The impact of unlocking to DAC for the year ended December 31, 2021 primarily reflected a favorable impact from lower surrenders on variable annuities with living benefits and UL and VUL insurance products. The impact of unlocking to DAC for the year ended December 31, 2020 primarily reflected updates to interest rate assumptions, partially offset by a favorable impact from lower surrenders on annuity contracts with a withdrawal benefit. The impact of unlocking to DAC for the year ended December 31, 2019 primarily reflected updated mortality assumptions on UL and VUL insurance products and lower surrender rate assumptions on variable annuities, partially offset by an unfavorable impact from updates to assumptions on utilization of guaranteed withdrawal benefits. The balances of and changes in DAC were as follows: 2021 2020 2019 (in millions) Balance at January 1 $ 2,508 $ 2,673 $ 2,742 Capitalization of acquisition costs 267 216 239 Amortization (172) (164) (119) Amortization, impact of valuation assumptions review 60 (100) (14) Impact of change in net unrealized (gains) losses on securities 94 (117) (175) Balance at December 31 $ 2,757 $ 2,508 $ 2,673 The balances of and changes in DSIC, which is included in Other assets, were as follows: 2021 2020 2019 (in millions) Balance at January 1 $ 187 $ 216 $ 249 Capitalization of sales inducement costs 1 1 1 Amortization (16) (13) (15) Amortization, impact of valuation assumptions review 2 (16) — Impact of change in net unrealized (gains) losses on securities 13 (1) (19) Balance at December 31 $ 187 $ 187 $ 216 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2021 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | The Company reinsures a portion of the insurance risks associated with its traditional life, DI and LTC insurance products through reinsurance agreements with unaffiliated reinsurance companies. During the third quarter of 2021, the Company reinsured 100% of its insurance risk associated with its life contingent immediate annuity policies in force as of July 1, 2021 through a reinsurance agreement with Commonwealth. Policies issued after July 1, 2021 are not subject to this reinsurance agreement. See Note 1 for more information on the fixed deferred and immediate annuity reinsurance transaction. Reinsurance contracts do not relieve the Company from its primary obligation to policyholders. The Company generally reinsures 90% of the death benefit liability for new term life insurance policies beginning in 2001 (RiverSource Life of NY began in 2002) and new individual UL and VUL insurance policies beginning in 2002 (2003 for RiverSource Life of NY). Policies issued prior to these dates are not subject to these same reinsurance levels. However, for IUL policies issued after September 1, 2013 and VUL policies issued after January 1, 2014, the Company generally reinsures 50% of the death benefit liability. Similarly, the Company reinsures 50% of the death benefit and morbidity liabilities related to its UL product with LTC benefits. The maximum amount of life insurance risk the Company will retain is $10 million on a single life and $10 million on any flexible premium survivorship life policy; however, reinsurance agreements are in place such that retaining more than $1.5 million of insurance risk on a single life or a flexible premium survivorship life policy is very unusual. Risk on UL and VUL policies is reinsured on a yearly renewable term basis. Risk on most term life policies starting in 2001 (2002 for RiverSource Life of NY) is reinsured on a coinsurance basis, a type of reinsurance in which the reinsurer participates proportionally in all material risks and premiums associated with a policy. The Company also has life insurance and fixed annuity risk previously assumed under reinsurance arrangements with unaffiliated insurance companies. For existing LTC policies, the Company has continued ceding 50% of the risk on a coinsurance basis to subsidiaries of Genworth Financial, Inc. (“Genworth”) and retains the remaining risk. For RiverSource Life of NY, this reinsurance arrangement applies for 1996 and later issues only. Under these agreements, the Company has the right, but never the obligation, to recapture some, or all, of the risk ceded to Genworth. Generally, the Company retains at most $5,000 per month of risk per life on DI policies sold on policy forms introduced in most states starting in 2007 (2010 for RiverSource Life of NY) and reinsures the remainder of the risk on a coinsurance basis with unaffiliated reinsurance companies. The Company retains all risk for new claims on DI contracts sold on other policy forms introduced prior to 2007 (2010 for RiverSource Life of NY). The Company also retains all risk on accidental death benefit claims and substantially all risk associated with waiver of premium provisions. As of December 31, 2021 and 2020, traditional life and UL insurance policies in force were $198.6 billion and $195.7 billion, respectively, of which $145.1 billion and $143.6 billion as of December 31, 2021 and 2020 were reinsured at the respective year ends. The effect of reinsurance on premiums for traditional long-duration products was as follows: Years Ended December 31, 2021 2020 2019 (in millions) Direct premiums $ 490 $ 565 $ 621 Reinsurance ceded (1,361) (224) (224) Net premiums $ (871) $ 341 $ 397 Policy and contract charges are presented on the Consolidated Statements of Income net of $152 million, $140 million and $132 million of reinsurance ceded for non-traditional long-duration products for the years ended December 31, 2021, 2020 and 2019, respectively. The amount of claims recovered through reinsurance on all contracts was $404 million, $400 million and $377 million for the years ended December 31, 2021, 2020 and 2019, respectively. Reinsurance recoverables include approximately $2.6 billion and $2.7 billion related to LTC risk ceded to Genworth as of December 31, 2021 and 2020, respectively. Policyholder account balances, future policy benefits and claims include $413 million and $440 million related to previously assumed reinsurance arrangements as of December 31, 2021 and 2020, respectively. |
Policyholder Account Balances,
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities [Abstract] | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | Policyholder account balances, future policy benefits and claims consisted of the following: December 31, 2021 2020 (in millions) Policyholder account balances Fixed annuities (1) $ 8,117 $ 8,531 Variable annuity fixed sub-accounts 4,990 5,104 UL/VUL insurance 3,103 3,122 IUL insurance 2,534 2,269 Structured variable annuities 4,440 1,371 Other life insurance 563 605 Total policyholder account balances 23,747 21,002 Future policy benefits Variable annuity GMWB 2,336 3,049 Variable annuity GMAB (2) (23) 1 Other annuity liabilities 67 211 Fixed annuity life contingent liabilities 1,278 1,370 Life and DI insurance 1,139 1,187 LTC insurance 5,664 5,722 UL/VUL and other life insurance additional liabilities 1,291 1,259 Total future policy benefits 11,752 12,799 Policy claims and other policyholders’ funds 245 185 Total policyholder account balances, future policy benefits and claims $ 35,744 $ 33,986 (1) Includes fixed deferred annuities, non-life contingent fixed payout annuities and fixed deferred indexed annuity host contracts. (2) Includes the fair value of GMAB embedded derivatives that was a net asset as of December 31, 2021 reported as a contra liability. Fixed Annuities Fixed annuities include deferred, payout and fixed deferred indexed annuity contracts. In 2020, the Company discontinued sales of fixed deferred and fixed deferred indexed annuities. Deferred contracts offer a guaranteed minimum rate of interest and security of the principal invested. Payout contracts guarantee a fixed income payment for life or the term of the contract. Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates, ranging from 2.23% to 9.38% as of December 31, 2021, depending on year of issue, with an average rate of approximately 3.6%. The Company generally invests the proceeds from the annuity contracts in fixed rate securities. The Company’s equity indexed annuity (“EIA”) product is a single premium fixed deferred annuity. The Company discontinued new sales of EIAs in 2007. The contract was issued with an initial term of seven years and interest earnings are linked to the performance of the S&P 500 ® Index. This annuity has a minimum interest rate guarantee of 3% on 90% of the initial premium, adjusted for any surrenders. The Company generally invests the proceeds from the annuity contracts in fixed rate securities and hedges the equity risk with derivative instruments. The Company’s fixed index annuity product is a fixed annuity that includes an indexed account. The rate of interest credited above the minimum guarantee for funds allocated to the indexed account is linked to the performance of the specific index for the indexed account (subject to a cap). The Company previously offered S&P 500 ® Index and MSCI ® EAFE Index account options. Both options offered two crediting durations, one two Company hedges the interest credited rate including equity and interest rate risk related to the indexed account with derivative instruments. The contractholder could choose to add a GMWB for life rider for an additional fee. See Note 17 for additional information regarding the Company’s derivative instruments used to hedge the risk related to indexed annuities. Variable Annuities Purchasers of variable annuities can select from a variety of investment options and can elect to allocate a portion to a fixed account. A vast majority of the premiums received for variable annuity contracts are held in separate accounts where the assets are held for the exclusive benefit of those contractholders. Most of the variable annuity contracts issued by the Company contain one or more guaranteed benefits, including GMWB, GMAB, GMDB or GGU provisions. The Company previously offered contracts with GMIB provisions. See Note 2 and Note 11 for additional information regarding the Company’s variable annuity guarantees. The Company does not currently hedge its risk under the GGU and GMIB provisions. See Note 13 and Note 17 for additional information regarding the Company’s derivative instruments used to hedge risks related to GMWB, GMAB and GMDB provisions. Structured Variable Annuities In 2020, the Company began offering structured variable annuities which gives contractholders the option to allocate a portion of their account value to an indexed account with the contractholder’s rate of return, which may be positive or negative, tied to selected indices. Insurance Liabilities UL/VUL is the largest group of insurance policies written by the Company. Purchasers of UL accumulate cash value that increases by a fixed interest rate. Purchasers of VUL can select from a variety of investment options and can elect to allocate a portion to a fixed account or a separate account. A vast majority of the premiums received for VUL policies are held in separate accounts where the assets are held for the exclusive benefit of those policyholders. IUL is a UL policy that includes an indexed account. The rate of credited interest above the minimum guarantee for funds allocated to the indexed account is linked to the performance of the specific index for the indexed account (subject to stated account parameters, which include a cap and floor, or a spread and floor). The Company offers an S&P 500 ® Index account option and a blended multi-index account option comprised of the S&P 500 Index, the MSCI ® EAFE Index and the MSCI EM Index. Both options offer two crediting durations, one two The Company also offers term life insurance as well as DI products. The Company no longer offers standalone LTC products and whole life insurance but has in force policies from prior years. Insurance liabilities include accumulation values, incurred but not reported claims, obligations for anticipated future claims and unpaid reported claims. The liability for estimates of benefits that will become payable on future claims on term life, whole life and DI policies is based on the net level premium and LTC policies is based on a gross premium valuation reflecting management’s current best estimate assumptions. Both include the anticipated interest rates earned on assets supporting the liability. Anticipated interest rates for term and whole life ranged from 2.25% to 10% as of December 31, 2021. Anticipated interest rates for DI policies ranged from 3.00% to 7.5% as of December 31, 2021 and for LTC policies ranged from 5% to 5.7% as of December 31, 2021. The liability for unpaid reported claims on DI and LTC policies includes an estimate of the present value of obligations for continuing benefit payments. The discount rates used to calculate present values are based on average interest rates earned on assets supporting the liability for unpaid amounts and were 4.5% and 5.95% for DI and LTC claims, respectively, as of December 31, 2021. Portions of the Company’s UL and VUL policies have product features that result in profits followed by losses from the insurance component of the policy. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the policy. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. Separate Account Liabilities Separate account liabilities consisted of the following: December 31, 2021 2020 (in millions) Variable annuity $ 82,862 $ 79,299 VUL insurance 9,343 8,226 Other insurance 33 31 Total $ 92,238 $ 87,556 |
Variable Annuity and Insurance
Variable Annuity and Insurance Guarantees | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Variable Annuity and Insurance Guarantees | Most of the variable annuity contracts issued by the Company contain one or more guaranteed benefits, including GMWB, GMAB, GMDB or GGU provisions. The Company previously offered contracts containing GMIB provisions. See Note 2 and Note 10 for additional information regarding the Company’s variable annuity guarantees. The GMDB and GGU provisions provide a specified minimum return upon death of the contractholder. The death benefit payable is the greater of (i) the contract value less any purchase payment credits subject to recapture less a pro-rata portion of any rider fees, or (ii) the GMDB provisions specified in the contract. The Company has the following primary GMDB provisions: • Return of premium – provides purchase payments minus adjusted partial surrenders. • Reset – provides that the value resets to the account value every sixth contract anniversary minus adjusted partial surrenders. This provision was often provided in combination with the return of premium provision and is no longer offered. • Ratchet – provides that the value ratchets up to the maximum account value at specified anniversary intervals, plus subsequent purchase payments less adjusted partial surrenders. The variable annuity contracts with GMWB riders typically have account values that are based on an underlying portfolio of mutual funds, the values of which fluctuate based on fund performance. At contract issue, the guaranteed amount is equal to the amount deposited but the guarantee may be increased annually to the account value (a “step-up”) in the case of favorable market performance or by a benefit credit if the contract includes this provision. The Company has GMWB riders in force, which contain one or more of the following provisions: • Withdrawals at a specified rate per year until the amount withdrawn is equal to the guaranteed amount. • Withdrawals at a specified rate per year for the life of the contractholder (“GMWB for life”). • Withdrawals at a specified rate per year for joint contractholders while either is alive. • Withdrawals based on performance of the contract. • Withdrawals based on the age withdrawals begin. • Credits are applied annually for a specified number of years to increase the guaranteed amount as long as withdrawals have not been taken. Variable annuity contractholders age 79 or younger at contract issue can also obtain a principal-back guarantee by purchasing the optional GMAB rider for an additional charge. The GMAB rider guarantees that, regardless of market performance at the end of the 10-year waiting period, the contract value will be no less than the original investment or a specified percentage of the highest anniversary value, adjusted for withdrawals. If the contract value is less than the guarantee at the end of the 10-year period, a lump sum will be added to the contract value to make the contract value equal to the guarantee value. Certain UL policies provide secondary guarantee benefits. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities: Variable Annuity Guarantees by Benefit Type (1) December 31, 2021 December 31, 2020 Total Contract Value Net Weighted Average Attained Age Total Contract Value Net Weighted Average Attained Age (in millions, except age) GMDB: Return of premium $ 70,020 $ 68,145 $ 6 69 $ 66,874 $ 64,932 $ 5 68 Five/six-year reset 8,309 5,612 6 68 8,116 5,386 6 68 One-year ratchet 6,177 5,858 13 71 6,094 5,763 8 71 Five-year ratchet 1,438 1,386 1 68 1,436 1,381 — 67 Other 1,302 1,286 38 74 1,261 1,243 45 73 Total — GMDB $ 87,246 $ 82,287 $ 64 69 $ 83,781 $ 78,705 $ 64 68 GGU death benefit $ 1,260 $ 1,198 $ 184 72 $ 1,183 $ 1,126 $ 162 71 GMIB $ 184 $ 170 $ 4 71 $ 187 $ 173 $ 6 71 GMWB: GMWB $ 1,900 $ 1,895 $ 1 75 $ 1,972 $ 1,967 $ 1 74 GMWB for life 52,387 52,334 187 69 50,142 50,057 185 69 Total — GMWB $ 54,287 $ 54,229 $ 188 69 $ 52,114 $ 52,024 $ 186 69 GMAB $ 2,005 $ 2,005 $ — 62 $ 2,291 $ 2,291 $ — 61 (1) Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table. The net amount at risk for GMDB, GGU and GMAB is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB is defined as the greater of the present value of the minimum guaranteed annuity payments less the current contract value or zero. The net amount at risk for GMWB is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero. The following table provides information related to insurance guarantees for which the Company has established additional liabilities: December 31, 2021 December 31, 2020 Net Amount at Risk Weighted Average Attained Age Net Amount at Risk Weighted Average Attained Age (in millions, except age) UL secondary guarantees $ 6,564 68 $ 6,587 67 The net amount at risk for UL secondary guarantees is defined as the current guaranteed death benefit amount in excess of the current policyholder account balance. Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows: GMDB & GMIB GMWB (1) GMAB (1) UL (in millions) Balance at January 1, 2019 $ 19 $ 8 $ 875 $ (19) $ 659 Incurred claims 2 (1) 587 (20) 141 Paid claims (5) — — — (42) Balance at December 31, 2019 16 7 1,462 (39) 758 Incurred claims 15 — 1,587 40 209 Paid claims (7) (1) — — (51) Balance at December 31, 2020 24 6 3,049 1 916 Incurred claims 17 — (713) (24) 140 Paid claims (5) (1) — — (36) Balance at December 31, 2021 $ 36 $ 5 $ 2,336 $ (23) $ 1,020 (1) The incurred claims for GMWB and GMAB include the change in the fair value of the liabilities (contra liabilities) less paid claims. The liabilities for guaranteed benefits are supported by general account assets. The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: December 31, 2021 2020 (in millions) Mutual funds: Equity $ 49,183 $ 45,947 Bond 24,998 26,073 Other 8,316 6,911 Total mutual funds $ 82,497 $ 78,931 No gains or losses were recognized on assets transferred to separate accounts for the years ended December 31, 2021, 2020 and 2019. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Short-Term Borrowings RiverSource Life Insurance Company is a member of the Federal Home Loan Bank (“FHLB”) of Des Moines which provides access to collateralized borrowings. The Company has pledged Available-for-Sale securities consisting of commercial mortgage backed securities to collateralize its obligation under these borrowings. The fair value of the securities pledged is recorded in Investments and was $1.0 billion and $1.2 billion as of December 31, 2021 and 2020, respectively. The amount of the Company’s liability including accrued interest was $200 million as of both December 31, 2021 and 2020. The remaining maturity of outstanding FHLB advances was less than three months as of both December 31, 2021 and 2020. The weighted average annualized interest rate on the FHLB advances held as of December 31, 2021 and 2020 was 0.3% and 0.4%, respectively. Lines of Credit RiverSource Life Insurance Company, as the borrower, has a revolving credit agreement with Ameriprise Financial as the lender. The aggregate amount outstanding under the line of credit may not exceed 3% of RiverSource Life Insurance Company’s statutory admitted assets (excluding separate accounts) as of the prior year end. The interest rate for any borrowing under the agreement is established by reference to London Inter-Bank Offered Rate (“LIBOR”) for U.S. dollar deposits with maturities comparable to the relevant interest period, plus an applicable margin subject to adjustment based on debt ratings of the senior unsecured debt of Ameriprise Financial. Amounts borrowed may be repaid at any time with no prepayment penalty. There were no amounts outstanding on this line of credit as of both December 31, 2021 and 2020. RiverSource Life of NY, as the borrower, has a revolving credit agreement with Ameriprise Financial as the lender. The aggregate amount outstanding under the line of credit may not exceed the lesser of $25 million or 3% of RiverSource Life of NY’s statutory admitted assets (excluding separate accounts) as of the prior year end. The interest rate for any borrowing under the agreement is established by reference to LIBOR for U.S. dollar deposits with maturities comparable to the relevant interest period. Amounts borrowed may be repaid at any time with no prepayment penalty. There were no amounts outstanding on this line of credit as of both December 31, 2021 and 2020. RTA, as the borrower, has a revolving credit agreement with Ameriprise Financial as the lender not to exceed $100 million. The interest rate for any borrowing under the agreement is established by reference to LIBOR for U.S. dollar deposits with maturities comparable to the relevant interest period, plus an applicable margin subject to adjustment based on debt ratings of the senior unsecured debt of Ameriprise Financial. This line of credit is automatically renewed annually with Ameriprise Financial. There were no amounts outstanding on this revolving credit agreement as of both December 31, 2021 and 2020. Long-Term Debt The Company has a $500 million unsecured 3.5% surplus note due December 31, 2050 to Ameriprise Financial. The surplus note is subordinate in right of payment to the prior payment in full of the Company’s obligations to policyholders, claimants and beneficiaries and all other creditors. No payment of principal or interest shall be made without the prior approval of the Minnesota Department of Commerce and such payments shall be made only from RiverSource Life Insurance Company’s statutory surplus. Interest payments, which commenced on June 30, 2021, are due semiannually in arrears on June 30 and December 31. Subject to the preceding conditions, the Company may prepay all or a portion of the principal at any time. The outstanding balance was $500 million as of both December 31, 2021 and 2020 and is recorded in Long-term debt. |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Assets and Liabilities | GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability is not exchanged subject to a forced liquidation or distressed sale. Valuation Hierarchy The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. Level 2 Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities. Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The following tables present the balances of assets and liabilities measured at fair value on a recurring basis: December 31, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Corporate debt securities $ — $ 9,142 $ 496 $ 9,638 Residential mortgage backed securities — 2,250 — 2,250 Commercial mortgage backed securities — 2,656 — 2,656 State and municipal obligations — 1,074 — 1,074 Asset backed securities — 246 291 537 Foreign government bonds and obligations — 83 — 83 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities 1 15,451 787 16,239 Cash equivalents 1,985 1,191 — 3,176 Receivables: Fixed deferred indexed annuity ceded embedded derivatives — — 59 59 Other assets: Interest rate derivative contracts 1 1,251 — 1,252 Equity derivative contracts 158 4,080 — 4,238 Foreign exchange derivative contracts 1 17 — 18 Credit derivative contracts — 9 — 9 Total other assets 160 5,357 — 5,517 Separate account assets at net asset value (“NAV”) 92,238 (1) Total assets at fair value $ 2,146 $ 21,999 $ 846 $ 117,229 Liabilities Policyholder account balances, future policy benefits and claims: Fixed deferred indexed annuity embedded derivatives $ — $ 5 $ 56 $ 61 IUL embedded derivatives — — 905 905 GMWB and GMAB embedded derivatives — — 1,486 1,486 (2) Structured variable annuity embedded derivatives — — 406 406 Total policyholder account balances, future policy benefits and claims — 5 2,853 2,858 (3) Other liabilities: Interest rate derivative contracts 1 467 — 468 Equity derivative contracts 101 3,610 — 3,711 Foreign exchange derivative contracts 1 — — 1 Total other liabilities 103 4,077 — 4,180 Total liabilities at fair value $ 103 $ 4,082 $ 2,853 $ 7,038 December 31, 2020 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Corporate debt securities $ — $ 12,107 $ 766 $ 12,873 Residential mortgage backed securities — 2,993 9 3,002 Commercial mortgage backed securities — 4,166 — 4,166 State and municipal obligations — 1,344 — 1,344 Asset backed securities — 817 395 1,212 Foreign government bonds and obligations — 257 — 257 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities 1 21,684 1,170 22,855 Cash equivalents 2,419 713 — 3,132 Other assets: Interest rate derivative contracts 1 1,754 — 1,755 Equity derivative contracts 406 3,578 — 3,984 Foreign exchange derivative contracts 1 17 — 18 Credit derivative contracts — 1 — 1 Total other assets 408 5,350 — 5,758 Separate account assets at NAV 87,556 (1) Total assets at fair value $ 2,828 $ 27,747 $ 1,170 $ 119,301 Liabilities Policyholder account balances, future policy benefits and claims: Fixed deferred indexed annuity embedded derivatives $ — $ 3 $ 49 $ 52 IUL embedded derivatives — — 935 935 GMWB and GMAB embedded derivatives — — 2,316 2,316 (4) Structured variable annuity embedded derivatives — — 70 70 Total policyholder account balances, future policy benefits and claims — 3 3,370 3,373 (5) Other liabilities: Interest rate derivative contracts — 734 — 734 Equity derivative contracts 182 3,329 — 3,511 Foreign exchange derivative contracts 2 — — 2 Credit derivative contracts — 1 — 1 Total other liabilities 184 4,064 — 4,248 Total liabilities at fair value $ 184 $ 4,067 $ 3,370 $ 7,621 (1) Amounts are comprised of certain financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. (2) The fair value of the GMWB and GMAB embedded derivatives included $1.6 billion of individual contracts in a liability position and $133 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2021. (3) The Company’s adjustment for nonperformance risk resulted in a $598 million cumulative decrease to the embedded derivatives as of December 31, 2021. (4) The fair value of the GMWB and GMAB embedded derivatives included $2.4 billion of individual contracts in a liability position and $67 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2020. (5) The Company’s adjustment for nonperformance risk resulted in a $727 million cumulative decrease to the embedded derivatives as of December 31, 2020. The following tables provide a summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis: Available-for-Sale Securities Receivables Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total Fixed Deferred Indexed Annuity Ceded Embedded Derivatives (in millions) Balance at January 1, 2021 $ 766 $ 9 $ 395 $ 1,170 $ — Total gains (losses) included in: Net income (1) — — (1) (1) 3 Other comprehensive income (loss) (10) — (1) (11) — Purchases 108 — — 108 — Issues — — — — 57 (4) Settlements (119) — (81) (200) (1) Transfers into Level 3 168 — 2 170 — Transfers out of Level 3 (416) (9) (24) (449) — Balance at December 31, 2021 $ 496 $ — $ 291 $ 787 $ 59 Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2021 $ (1) $ — $ — $ (1) (1) $ — Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2021 $ (8) $ — $ (1) $ (9) $ — Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total (in millions) Balance at January 1, 2021 $ 49 $ 935 $ 2,316 $ 70 $ 3,370 Total (gains) losses included in: Net income 10 (2) 68 (2) (1,344) (3) 393 (3) (873) Issues — — 369 (28) 341 Settlements (3) (98) 145 (29) 15 Balance at December 31, 2021 $ 56 $ 905 $ 1,486 $ 406 $ 2,853 Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2021 $ — $ 68 (2) $ (1,299) (3) $ — $ (1,231) Available-for-Sale Securities Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance at January 1, 2020 $ 735 $ 17 $ 389 $ 1,141 Total gains (losses) included in: Other comprehensive income (loss) 15 1 (2) 14 Purchases 62 39 — 101 Settlements (46) — (6) (52) Transfers into Level 3 — — 14 14 Transfers out of Level 3 — (48) — (48) Balance at December 31, 2020 $ 766 $ 9 $ 395 $ 1,170 Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2020 $ (1) $ — $ — $ (1) (1) Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2020 $ 15 $ 1 $ (2) $ 14 Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total (in millions) Balance at January 1, 2020 $ 43 $ 881 $ 763 $ — $ 1,687 Total (gains) losses included in: Net income 4 (2) 76 (2) 1,152 (3) 91 (3) 1,323 Issues 3 61 362 (21) 405 Settlements (1) (83) 39 — (45) Balance at December 31, 2020 $ 49 $ 935 $ 2,316 $ 70 $ 3,370 Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2020 $ — $ 76 (2) $ 1,206 (3) $ — $ 1,282 Available-for-Sale Securities Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance at January 1, 2019 $ 871 $ 64 $ 374 $ 1,309 Total gains (losses) included in: Net income (1) — — (1) (1) Other comprehensive income (loss) 30 — 5 35 Purchases 55 27 — 82 Settlements (220) (3) — (223) Transfers into Level 3 — — 10 10 Transfers out of Level 3 — (71) — (71) Balance at December 31, 2019 $ 735 $ 17 $ 389 $ 1,141 Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2019 $ (1) $ — $ — $ (1) (1) Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance at January 1, 2019 $ 14 $ 628 $ 328 $ 970 Total (gains) losses included in: Net income 8 (2) 209 (2) 80 (3) 297 Issues 21 113 361 495 Settlements — (69) (6) (75) Balance at December 31, 2019 $ 43 $ 881 $ 763 $ 1,687 Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2019 $ — $ 209 (2) $ 82 (3) $ 291 (1) Included in Net investment income. (2) Included in Interest credited to fixed accounts. (3) Included in Benefits, claims, losses and settlement expenses. (4) Represents the amount of ceded embedded derivatives associated with fixed deferred annuity products reinsured in the third quarter of 2021. See Note 1 for additional information on the reinsurance transaction. The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $(92) million, $196 million and $(190) million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the years ended December 31, 2021, 2020 and 2019, respectively. Securities transferred from Level 3 primarily represent securities with fair values that are obtained from a third-party pricing service with observable inputs or fair values that were included in an observable transaction with a market participant. Securities transferred to Level 3 represent securities with fair values that are now based on a single non-binding broker quote. The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities: December 31, 2021 Fair Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 496 Discounted cash flow Yield/spread to U.S. Treasuries (1) 0.8% - 2.4% 1.1% Asset backed securities $ 291 Discounted cash flow Annual default rate 5.8% 5.8% Loss severity 25.0% 25.0% Yield/spread to swap rates (2) 175 bps - 275 bps 182 bps Fixed deferred indexed annuity ceded embedded derivatives $ 59 Discounted cash flow Surrender rate (4) 0.0% - 66.8% 1.4% IUL embedded derivatives $ 905 Discounted cash flow Nonperformance risk (3) 65 bps 65 bps Fixed deferred indexed annuity embedded derivatives $ 56 Discounted cash flow Surrender rate (4) 0.0% - 66.8% 1.4% Nonperformance risk (3) 65 bps 65 bps GMWB and GMAB embedded derivatives $ 1,486 Discounted cash flow Utilization of guaranteed withdrawals (5) (6) 0.0% - 48.0% 10.6% Surrender rate (4) 0.1% - 55.7% 3.6% Market volatility (7) (8) 4.3% - 16.8% 10.8% Nonperformance risk (3) 65 bps 65 bps Structured variable annuity embedded derivatives $ 406 Discounted cash flow Surrender rate (4) 0.8% - 40.0% 0.9% Nonperformance risk (3) 65 bps 65 bps December 31, 2020 Fair Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 766 Discounted cash flow Yield/spread to U.S. Treasuries (1) 1.0% - 3.3% 1.5% Asset backed securities $ 395 Discounted cash flow Annual default rate 5.3% 5.3% Loss severity 25.0% 25.0% Yield/spread to swap rates (2) 250 bps - 400 bps 259 bps IUL embedded derivatives $ 935 Discounted cash flow Nonperformance risk (3) 65 bps 65 bps Fixed deferred indexed annuity embedded derivatives $ 49 Discounted cash flow Surrender rate (4) 0.0% - 50.0% 1.2% Nonperformance risk (3) 65 bps 65 bps GMWB and GMAB embedded derivatives $ 2,316 Discounted cash flow Utilization of guaranteed withdrawals (5) (6) 0.0% - 48.0% 10.6% Surrender rate (4) 0.1% - 73.5% 3.8% Market volatility (7) (8) 4.3% - 17.1% 11.0% Nonperformance risk (3) 65 bps 65 bps Structured variable annuity embedded derivatives $ 70 Discounted cash flow Surrender rate (4) 0.8% - 40.0% 0.9% Nonperformance risk (3) 65 bps 65 bps (1) The weighted average for the spread to U.S. Treasuries for corporate debt securities (private placements) is weighted based on the security’s market value as a percentage of the aggregate market value of the securities. (2) The weighted average for the spread to swap rates for asset backed securities is calculated as the sum of each tranche’s balance multiplied by its spread to swap divided by the aggregate balances of the tranches. (3) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. (4) The weighted average surrender rate is weighted based on the benefit base of each contract and represents the average assumption in the current year including the effect of a dynamic surrender formula. (5) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. (6) The weighted average utilization rate represents the average assumption for the current year, weighting each policy evenly. The calculation excludes policies that have already started taking withdrawals. (7) Market volatility represents the implied volatility of fund of funds and managed volatility funds. (8) The weighted average market volatility represents the average volatility across all contracts, weighted by the size of the guaranteed benefit. Level 3 measurements not included in the table above are obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company. Uncertainty of Fair Value Measurements Significant increases (decreases) in the yield/spread to U.S. Treasuries used in the fair value measurement of Level 3 corporate debt securities in isolation would have resulted in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the annual default rate used in the fair value measurement of Level 3 asset backed securities in isolation, generally, would have resulted in a significantly lower (higher) fair value measurement and significant increases (decreases) in loss severity in isolation would have resulted in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the yield/spread to swap rates in isolation would have resulted in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the surrender rate used in the fair value measurement of the fixed deferred indexed annuity ceded embedded derivatives in isolation would have resulted in a significantly lower (higher) fair value measurement. Significant increases (decreases) in nonperformance risk used in the fair value measurement of the IUL embedded derivatives in isolation would have resulted in a significantly lower (higher) fair value measurement. Significant increases (decreases) in nonperformance risk and surrender rate used in the fair value measurements of the fixed deferred indexed annuity embedded derivatives and structured variable annuity embedded derivatives in isolation would have resulted in a significantly lower (higher) liability value. Significant increases (decreases) in utilization and volatility used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would have resulted in a significantly higher (lower) liability value. Significant increases (decreases) in nonperformance risk and surrender rate used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would have resulted in a significantly lower (higher) liability value. Utilization of guaranteed withdrawals and surrender rates vary with the type of rider, the duration of the policy, the age of the contractholder, the distribution channel and whether the value of the guaranteed benefit exceeds the contract accumulation value. Determination of Fair Value The Company uses valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The Company’s market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company’s income approach uses valuation techniques to convert future projected cash flows to a single discounted present value amount. When applying either approach, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy. Assets Available-for-Sale Securities When available, the fair value of securities is based on quoted prices in active markets. If quoted prices are not available, fair values are obtained from third-party pricing services, non-binding broker quotes, or other model-based valuation techniques. Level 1 securities primarily include U.S. Treasuries. Level 2 securities primarily include corporate bonds, residential mortgage backed securities, commercial mortgage backed securities, state and municipal obligations, asset backed securities and foreign government securities. The fair value of these Level 2 securities is based on a market approach with prices obtained from third-party pricing services. Observable inputs used to value these securities can include, but are not limited to, reported trades, benchmark yields, issuer spreads and non-binding broker quotes. The fair value of securities included in an observable transaction with a market participant are also considered Level 2 when the market is not active. Level 3 securities primarily include certain corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and asset backed securities with fair value typically based on a single non-binding broker quote. The underlying inputs used for some of the non-binding broker quotes are not readily available to the Company. The Company’s privately placed corporate bonds are typically based on a single non-binding broker quote. The fair value of affiliated asset backed securities is determined using a discounted cash flow model. Inputs used to determine the expected cash flows include assumptions about discount rates and default, prepayment and recovery rates of the underlying assets. Given the significance of the unobservable inputs to this fair value measurement, the fair value of the investment in the affiliated asset backed securities is classified as Level 3. In consideration of the above, management is responsible for the fair values recorded on the financial statements. Prices received from third-party pricing services are subjected to exception reporting that identifies investments with significant daily price movements as well as no movements. The Company reviews the exception reporting and resolves the exceptions through reaffirmation of the price or recording an appropriate fair value estimate. The Company also performs subsequent transaction testing. The Company performs annual due diligence of third-party pricing services. The Company’s due diligence procedures include assessing the vendor’s valuation qualifications, control environment, analysis of asset-class specific valuation methodologies, and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. The Company also considers the results of its exception reporting controls and any resulting price challenges that arise. Cash Equivalents Cash equivalents include time deposits and other highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less. Actively traded money market funds are measured at their NAV and classified as Level 1. U.S. Treasuries are also classified as Level 1. The Company’s remaining cash equivalents are classified as Level 2 and measured at amortized cost, which is a reasonable estimate of fair value because of the short time between the purchase of the instrument and its expected realization. Receivables During the third quarter of 2021, the Company reinsured its fixed deferred indexed annuity products which have an indexed account that is accounted for as an embedded derivative. The Company uses discounted cash flow models to determine the fair value of these ceded embedded derivatives. The fair value of fixed deferred indexed annuity ceded embedded derivatives includes significant observable interest rates, volatilities and equity index levels and significant unobservable surrender rates. Given the significance of the unobservable surrender rates, these embedded derivatives are classified as Level 3. See Note 1 for more information on the reinsurance transaction. Other Assets Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements. The variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active over-the-counter (“OTC”) markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial as of December 31, 2021 and 2020. See Note 16 and Note 17 for further information on the credit risk of derivative instruments and related collateral. Separate Account Assets The fair value of assets held by separate accounts is determined by the NAV of the funds in which those separate accounts are invested. The NAV is used as a practical expedient for fair value and represents the exit price for the separate account. Separate account assets are excluded from classification in the fair value hierarchy. Liabilities Policyholder Account Balances, Future Policy Benefits and Claims There is no active market for the transfer of the Company’s embedded derivatives attributable to the provisions of certain variable annuity riders, fixed deferred indexed annuity, structured variable annuity and IUL products. The Company values the embedded derivatives attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculate fair value as the present value of future expected benefit payments less the present value of future expected rider fees attributable to the embedded derivative feature. The projected cash flows used by these models include observable capital market assumptions and incorporate significant unobservable inputs related to implied volatility as well as contractholder behavior assumptions that include margins for risk, all of which the Company believes a market participant would expect. The fair value also reflects a current estimate of the Company’s nonperformance risk specific to these embedded derivatives. Given the significant unobservable inputs to this valuation, these measurements are classified as Level 3. The embedded derivatives attributable to these provisions are recorded in Policyholder account balances, future policy benefits and claims. The Company uses a discounted cash flow model to determine the fair value of the embedded derivatives associated with the provisions of its equity index annuity product. The projected cash flows generated by this model are based on significant observable inputs related to interest rates, volatilities and equity index levels and, therefore, are classified as Level 2. The Company uses discounted cash flow models to determine the fair value of the embedded derivatives associated with the provisions of its fixed deferred indexed annuity, structured variable annuity and IUL products. The structured variable annuity product is a limited flexible purchase payment annuity that offers 45 different indexed account options providing equity market exposure and a fixed account. Each indexed account includes a protection option (a buffer or a floor). If the index has a negative return, contractholder losses will be reduced by a buffer or limited to a floor. The portion allocated to an indexed account is accounted for as an embedded derivative. The fair value of fixed deferred indexed annuity, structured variable annuity and IUL embedded derivatives includes significant observable interest rates, volatilities and equity index levels and significant unobservable surrender rates and the estimate of the Company’s nonperformance risk. Given the significance of the unobservable surrender rates and the nonperformance risk assumption, the fixed deferred indexed annuity, structured variable annuity and IUL embedded derivatives are classified as Level 3. The embedded derivatives attributable to these provisions are recorded in Policyholder account balances, future policy benefits and claims. Other Liabilities Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements. The variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active OTC markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial as of December 31, 2021 and 2020. See Note 16 and Note 17 for further information on the credit risk of derivative instruments and related collateral. Fair Value on a Nonrecurring Basis The Company assesses its investment in affordable housing partnerships for impairment. The investments that are determined to be impaired are written down to their fair value. The Company uses a discounted cash flow model to measure the fair value of these investments. Inputs to the discounted cash flow model are estimates of future net operating losses and tax credits available to the Company and discount rates based on market condition and the financial strength of the syndicator (general partner). The balance of affordable housing partnerships measured at fair value on a nonrecurring basis was $93 million and $101 million as of December 31, 2021 and 2020, respectively, and is classified as Level 3 in the fair value hierarchy. The Company also measured certain equity-method investments at fair value on a nonrecurring basis using a discounted cash flow model. Inputs to the model include projected cash flows and a market-based discount rate. At December 31, 2021, the fair value of these investments was $7 million and is classified as Level 3 in the fair value hierarchy. Assets and Liabilities Not Reported at Fair Value The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value: December 31, 2021 Carrying Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 1,788 $ — $ — $ 1,872 $ 1,872 Policy loans 834 — 834 — 834 Other investments 61 — 40 21 61 Receivables 7,876 — — 8,630 8,630 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 12,342 $ — $ — $ 13,264 $ 13,264 Short-term borrowings 200 — 200 — 200 Long-term debt 500 — 498 — 498 Other liabilities 9 — — 9 9 Separate account liabilities - investment contracts 403 — 403 — 403 December 31, 2020 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,574 $ — $ — $ 2,724 $ 2,724 Policy loans 846 — 846 — 846 Other investments 457 — 417 40 457 Receivables 1,430 — — 1,732 1,732 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 9,990 $ — $ — $ 11,686 $ 11,686 Short-term borrowings 200 — 200 — 200 Long-term debt 500 — 509 — 509 Other liabilities 12 — — 11 11 Separate account liabilities - investment contracts 351 — 351 — 351 Other investments include syndicated loans and the Company’s membership in the FHLB. Receivables include deposit receivables. See Note 7 for additional information on mortgage loans, policy loans, syndicated loans and deposit receivables. Policyholder account balances, future policy benefits and claims includes fixed annuities in deferral status, non-life contingent fixed annuities in payout status, indexed and structured variable annuity host contracts, and the fixed portion of a small number of variable annuity contracts classified as investment contracts. See Note 10 for additional information on these liabilities. Short-term borrowings include FHLB borrowings. Long-term debt includes the surplus note with Ameriprise Financial. See Note 12 for further information on short-term borrowings and long-term debt. Other liabilities include future funding commitments to affordable housing partnerships and other real estate partnerships. Separate account liabilities are related to certain annuity products that are classified as investment contracts. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Revenues See Note 4 for information about revenues from contracts with customers earned by the Company from related party transactions with affiliates. The Company is the lessor of one real estate property which it leases to Ameriprise Financial under an operating lease that expires November 30, 2029. The Company earned $5 million in rental income for each of the years ended December 31, 2021, 2020 and 2019, which is reflected in Other revenues. The Company expects to earn $5 million in each year of the five year period ending December 31, 2026 and a total of $14 million thereafter. Expenses Charges by Ameriprise Financial and affiliated companies to the Company for use of joint facilities, technology support, marketing services and other services aggregated $345 million, $358 million and $370 million for the years ended December 31, 2021, 2020 and 2019, respectively. Certain of these costs are included in DAC. Expenses allocated to the Company may not be reflective of expenses that would have been incurred by the Company on a stand-alone basis. Income Taxes The Company’s taxable income is included in the consolidated federal income tax return of Ameriprise Financial. The net amount due from (to) Ameriprise Financial for federal income taxes was $18 million and $(297) million as of December 31, 2021 and 2020, respectively, which is reflected in Other assets as of December 31, 2021 and Other liabilities as of December 31, 2020. Investments The Company invests in AA and A rated asset backed securities issued by AAF, an affiliate of the Company. The asset backed securities are collateralized by a portfolio of loans issued to advisors affiliated with AFS, an affiliated broker dealer. As of December 31, 2021 and 2020, the fair value of these asset backed securities was $289 million and $372 million, respectively, and is reported in Investments: Available-for-Sale Fixed Maturities on the Company’s Consolidated Balance Sheets. Interest income from these asset backed securities was $12 million, $14 million and $14 million for the years ended December 31, 2021, 2020 and 2019, respectively, and is reported in Net investment income. Lines of Credit RiverSource Life Insurance Company, as the lender, has a revolving credit agreement with Ameriprise Financial as the borrower. This line of credit is not to exceed 3% of RiverSource Life Insurance Company’s statutory admitted assets as of the prior year end. The interest rate for any borrowing is established by reference to LIBOR for U.S. dollar deposits with maturities comparable to the relevant interest period, plus an applicable margin subject to adjustment based on debt ratings of the senior unsecured debt of Ameriprise Financial. In the event of default, an additional 1% interest will accrue during such period of default. There were no amounts outstanding on this revolving credit agreement as of both December 31, 2021 and 2020. See Note 12 for information about additional lines of credit with an affiliate. Long-Term Debt See Note 12 for information about a surplus note to an affiliate. Dividends or Distributions Cash dividends or distributions paid and received by RiverSource Life Insurance Company were as follows: Years Ended December 31, 2021 2020 2019 (in millions) Paid to Ameriprise Financial $ 1,900 $ 800 $ 1,350 Received from RiverSource Life of NY — — 43 Received from RTA 50 95 100 On February 23, 2022, RiverSource Life Insurance Company’s Board of Directors declared a cash dividend of $300 million to Ameriprise Financial, payable on or after March 25, 2022, pending approval by the Minnesota Department of Commerce. |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Regulatory Requirements | The National Association of Insurance Commissioners (“NAIC”) defines Risk-Based Capital (“RBC”) requirements for insurance companies. The RBC requirements are used by the NAIC and state insurance regulators to identify companies that merit regulatory actions designed to protect policyholders. These requirements apply to the Company. The Company has met its minimum RBC requirements. Insurance companies are required to prepare statutory financial statements in accordance with the accounting practices prescribed or permitted by the insurance departments of their respective states of domicile, which vary materially from GAAP. Prescribed statutory accounting practices include publications of the NAIC, as well as state laws, regulations and general administrative rules. The more significant differences from GAAP include charging policy acquisition costs to expense as incurred, establishing annuity and insurance reserves using different actuarial methods and assumptions, classifying surplus notes as a component of statutory surplus rather than debt, valuing investments on a different basis and excluding certain assets from the balance sheet by charging them directly to surplus, such as a portion of the net deferred income tax assets. RiverSource Life Insurance Company received approval from the Minnesota Department of Commerce to apply a permitted statutory accounting practice, effective July 1, 2017 through June 30, 2019, for certain derivative instruments used to economically hedge the interest rate exposure of certain variable annuity products that do not qualify for statutory hedge accounting. The permitted practice was intended to mitigate the impact to statutory surplus from the misalignment between variable annuity statutory reserves, which are not carried at fair value, and the fair value of derivatives used to economically hedge the interest rate exposure of non-life contingent living benefit guarantees. The permitted practice allowed RiverSource Life Insurance Company to defer a portion of the change in fair value, net investment income and realized gains or losses generated from designated derivatives to the extent the amounts do not offset the current period interest-rate related change in the variable annuity statutory reserve liability. The deferred amount could be amortized over ten years using the straight-line method with the ability to accelerate amortization at management’s discretion. As of June 30, 2019, RiverSource Life Insurance Company elected to accelerate amortization of the net deferred amount associated with its permitted practice. State insurance statutes contain limitations as to the amount of dividends and other distributions that insurers may make without providing prior notification to state regulators. For RiverSource Life Insurance Company, payments in excess of unassigned surplus, as determined in accordance with accounting practices prescribed by the State of Minnesota, require advance notice to the Minnesota Department of Commerce, RiverSource Life Insurance Company’s primary regulator, and are subject to potential disapproval. RiverSource Life Insurance Company’s statutory unassigned surplus aggregated $175 million and $1.3 billion as of December 31, 2021 and 2020, respectively. In addition, dividends or distributions whose fair market value, together with that of other dividends or distributions made within the preceding 12 months, exceed the greater of the previous year’s statutory net gain from operations or 10% of the previous year-end statutory capital and surplus are referred to as “extraordinary dividends.” Extraordinary dividends also require advance notice to the Minnesota Department of Commerce, and are subject to potential disapproval. Statutory capital and surplus was $3.4 billion and $4.8 billion as of December 31, 2021 and 2020, respectively. Statutory net gain from operations and net income for RiverSource Life Insurance Company are summarized as follows: Years Ended December 31, 2021 2020 2019 (in millions) Statutory net gain from operations $ 1,366 $ 1,393 $ 1,505 Statutory net income 253 1,582 786 |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | Certain financial instruments and derivative instruments are eligible for offset in the Consolidated Balance Sheets. The Company’s derivative instruments are subject to master netting and collateral arrangements and qualify for offset. A master netting arrangement with a counterparty creates a right of offset for amounts due to and from that same counterparty that is enforceable in the event of a default or bankruptcy. The Company’s policy is to recognize amounts subject to master netting arrangements on a gross basis in the Consolidated Balance Sheets. The following tables present the gross and net information about the Company’s assets subject to master netting arrangements: December 31, 2021 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 5,330 $ — $ 5,330 $ (3,571) $ (1,623) $ (114) $ 22 OTC cleared 88 — 88 (41) — — 47 Exchange-traded 99 — 99 (91) — — 8 Total derivatives $ 5,517 $ — $ 5,517 $ (3,703) $ (1,623) $ (114) $ 77 December 31, 2020 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 5,391 $ — $ 5,391 $ (3,801) $ (1,243) $ (315) $ 32 OTC cleared 58 — 58 (25) — — 33 Exchange-traded 309 — 309 (90) (165) — 54 Total derivatives $ 5,758 $ — $ 5,758 $ (3,916) $ (1,408) $ (315) $ 119 (1) Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements: December 31, 2021 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Gross Amounts Not Offset Net Amount Financial Instruments (1) Cash Securities (in millions) Derivatives: OTC $ 4,048 $ — $ 4,048 $ (3,571) $ (181) $ (293) $ 3 OTC cleared 41 — 41 (41) — — — Exchange-traded 91 — 91 (91) — — — Total derivatives $ 4,180 $ — $ 4,180 $ (3,703) $ (181) $ (293) $ 3 December 31, 2020 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset Net Amount Financial Instruments (1) Cash Securities (in millions) Derivatives: OTC $ 4,129 $ — $ 4,129 $ (3,801) $ (1) $ (327) $ — OTC cleared 25 — 25 (25) — — — Exchange-traded 94 — 94 (90) — — 4 Total derivatives $ 4,248 $ — $ 4,248 $ (3,916) $ (1) $ (327) $ 4 (1) Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. In the tables above, the amount of assets or liabilities presented are offset first by financial instruments that have the right of offset under master netting or similar arrangements, then any remaining amount is reduced by the amount of cash and securities collateral. The actual collateral may be greater than amounts presented in the tables. When the fair value of collateral accepted by the Company is less than the amount due to the Company, there is a risk of loss if the counterparty fails to perform or provide additional collateral. To mitigate this risk, the Company monitors collateral values regularly and requires additional collateral when necessary. When the value of collateral pledged by the Company declines, it may be required to post additional collateral. Freestanding derivative instruments are reflected in Other assets and Other liabilities. Cash collateral pledged by the Company is reflected in Other assets and cash collateral accepted by the Company is reflected in Other liabilities. See Note 17 for additional disclosures related to the Company’s derivative instruments. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivative instruments enable the Company to manage its exposure to various market risks. The value of such instruments is derived from an underlying variable or multiple variables, including equity and interest rate indices or prices. The Company primarily enters into derivative agreements for risk management purposes related to the Company’s products and operations. Certain of the Company’s freestanding derivative instruments are subject to master netting arrangements. The Company’s policy on the recognition of derivatives on the Consolidated Balance Sheets is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. See Note 16 for additional information regarding the estimated fair value of the Company’s freestanding derivatives after considering the effect of master netting arrangements and collateral. Generally, the Company uses derivatives as economic hedges and accounting hedges. The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives: December 31, 2021 December 31, 2020 Notional Gross Fair Value Notional Gross Fair Value Assets (1) Liabilities (2)(3) Assets (1) Liabilities (2)(3) (in millions) Derivatives not designated as hedging instruments Interest rate contracts $ 79,459 $ 1,252 $ 468 $ 77,925 $ 1,755 $ 734 Equity contracts 59,763 4,238 3,711 55,993 3,984 3,511 Credit contracts 1,717 9 — 2,269 1 1 Foreign exchange contracts 2,239 18 1 3,124 18 2 Total non-designated hedges 143,178 5,517 4,180 139,311 5,758 4,248 Embedded derivatives GMWB and GMAB (4) N/A — 1,486 N/A — 2,316 IUL N/A — 905 N/A — 935 Fixed deferred indexed annuities and deposit receivables N/A 59 61 N/A — 52 Structured variable annuity N/A — 406 N/A — 70 Total embedded derivatives N/A 59 2,858 N/A — 3,373 Total derivatives $ 143,178 $ 5,576 $ 7,038 $ 139,311 $ 5,758 $ 7,621 N/A Not applicable. (1) The fair value of freestanding derivative assets is included in Other assets and the fair value of ceded derivative assets related to deposit receivables is included in Receivables. (2) The fair value of freestanding derivative liabilities is included in Other liabilities. The fair value of GMWB and GMAB, IUL, and fixed deferred indexed annuity and structured variable annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims. (3) The fair value of the Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $3.2 billion and $3.7 billion as of December 31, 2021 and 2020, respectively. See Note 16 for additional information related to master netting arrangements and cash collateral. (4) The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2021 included $1.6 billion of individual contracts in a liability position and $133 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2020 included $2.4 billion of individual contracts in a liability position and $67 million of individual contracts in an asset position. See Note 13 for additional information regarding the Company’s fair value measurement of derivative instruments. As of December 31, 2021 and 2020, investment securities with a fair value of $123 million and $325 million, respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $123 million and $325 million, respectively, may be sold, pledged or rehypothecated by the Company. As of both December 31, 2021 and 2020, the Company had sold, pledged, or rehypothecated none of these securities. In addition, as of both December 31, 2021 and 2020, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets. The following table presents a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income: Net Investment Income Interest Credited to Fixed Accounts Benefits, Claims, Losses and Settlement Expenses (in millions) Year Ended December 31, 2021 Interest rate contracts $ — $ — $ (886) Equity contracts 1 91 (817) Credit contracts — — 43 Foreign exchange contracts — — 5 GMWB and GMAB embedded derivatives — — 830 IUL embedded derivatives — 30 — Fixed deferred indexed annuity and deposit receivables embedded derivatives — (8) — Structured variable annuity embedded derivatives — — (393) Total gain (loss) $ 1 $ 113 $ (1,218) Year Ended December 31, 2020 Interest rate contracts $ — $ — $ 1,633 Equity contracts — 55 (744) Credit contracts — — (106) Foreign exchange contracts — — (8) GMWB and GMAB embedded derivatives — — (1,553) IUL embedded derivatives — 7 — Fixed deferred indexed annuities embedded derivatives — (4) — Structured variable annuity embedded derivatives — — (91) Total gain (loss) $ — $ 58 $ (869) Year Ended December 31, 2019 Interest rate contracts $ — $ — $ 1,100 Equity contracts — 117 (1,501) Credit contracts — — (73) Foreign exchange contracts — — (30) GMWB and GMAB embedded derivatives — — (435) IUL embedded derivatives — (140) — Fixed deferred indexed annuities embedded derivatives — (8) — Total gain (loss) $ — $ (31) $ (939) The Company holds derivative instruments that either do not qualify or are not designated for hedge accounting treatment. These derivative instruments are used as economic hedges of equity, interest rate, credit and foreign currency exchange rate risk related to various products and transactions of the Company. Certain annuity contracts contain GMWB or GMAB provisions, which guarantee the right to make limited partial withdrawals each contract year regardless of the volatility inherent in the underlying investments or guarantee a minimum accumulation value of consideration received at the beginning of the contract period, after a specified holding period, respectively. The indexed portion of structured variable annuities and the GMAB and non-life contingent GMWB provisions are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. The Company economically hedges the aggregate exposure related to the indexed portion of structured variable annuities and the GMAB and non-life contingent GMWB provisions using options, swaptions, swaps and futures. The deferred premium associated with certain of the above options and swaptions is paid or received semi-annually over the life of the contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of December 31, 2021: Premiums Premiums (in millions) 2022 $ 204 $ 204 2023 51 43 2024 137 25 2025 124 22 2026 252 88 2027-2028 18 — Total $ 786 $ 382 Actual timing and payment amounts may differ due to future settlements, modifications or exercises of the contracts prior to the full premium being paid or received. The Company has a macro hedge program to provide protection against the statutory tail scenario risk arising from variable annuity reserves on its statutory surplus and to cover some of the residual risks not covered by other hedging activities. As a means of economically hedging these risks, the Company may use a combination of futures, options, swaps and swaptions. Certain of the macro hedge derivatives may contain settlement provisions linked to both equity returns and interest rates. The Company’s macro hedge derivatives that contain settlement provisions linked to both equity returns and interest rates, if any, are shown in other contracts in the tables above. Structured variable annuity and IUL products have returns tied to the performance of equity markets. As a result of fluctuations in equity markets, the obligation incurred by the Company related to structured variable annuity and IUL products will positively or negatively impact earnings over the life of these products. The equity component of structured variable annuity and IUL product obligations are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. As a means of economically hedging its obligations under the provisions of these products, the Company enters into interest rate swaps, index options and futures contracts. Cash Flow Hedges During the years ended December 31, 2021 and 2020, the Company held no derivatives that were designated as cash flow hedges. During the years ended December 31, 2021, 2020 and 2019, no hedge relationships were discontinued due to forecasted transactions no longer being expected to occur according to the original hedge strategy. Credit Risk Credit risk associated with the Company’s derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative contract. To mitigate such risk, the Company has established guidelines and oversight of credit risk through a comprehensive enterprise risk management program that includes members of senior management. Key components of this program are to require preapproval of counterparties and the use of master netting and collateral arrangements whenever practical. See Note 16 for additional information on the Company’s credit exposure related to derivative assets. Certain of the Company’s derivative contracts contain provisions that adjust the level of collateral the Company is required to post based on the Company’s financial strength rating (or based on the debt rating of the Company’s parent, Ameriprise Financial). Additionally, certain of the Company’s derivative contracts contain provisions that allow the counterparty to terminate the contract if the Company does not maintain a specific financial strength rating or Ameriprise Financial’s debt does not maintain a specific credit rating (generally an investment grade rating). If these termination provisions were to be triggered, the Company’s counterparty could require immediate settlement of any net liability position. As of December 31, 2021 and 2020, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $383 million and $324 million, respectively. The aggregate fair value of assets posted as collateral for such instruments as of December 31, 2021 and 2020 was $383 million and $324 million, respectively. If the credit contingent provisions of derivative contracts in a net liability position as of both December 31, 2021 and 2020 were triggered, the aggregate fair value of additional assets that would be required to be posted as collateral or needed to settle the instruments immediately would have been nil on both December 31, 2021 and 2020. |
Shareholder's Equity
Shareholder's Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Shareholder's Equity | The following tables provide the amounts related to each component of OCI: Year Ended December 31, 2021 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ (527) $ 111 $ (416) Reclassification of net (gains) losses on securities included in net income (2) (556) 117 (439) Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables 333 (70) 263 Net unrealized gains (losses) on securities (750) 158 (592) Total other comprehensive income (loss) $ (750) $ 158 $ (592) Year Ended December 31, 2020 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ 811 $ (170) $ 641 Reclassification of net (gains) losses on securities included in net income (2) 5 (1) 4 Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables (379) 80 (299) Net unrealized gains (losses) on securities 437 (91) 346 Total other comprehensive income (loss) $ 437 $ (91) $ 346 Year Ended December 31, 2019 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ 1,360 $ (289) $ 1,071 Reclassification of net (gains) losses on securities included in net income (2) 2 — 2 Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables (688) 144 (544) Net unrealized gains (losses) on securities 674 (145) 529 Total other comprehensive income (loss) $ 674 $ (145) $ 529 (1) Includes impairments on Available-for-Sale securities related to factors other than credit that were recognized in OCI during the period. (2) Reclassification amounts are recorded in Net realized investment gains (losses). Other comprehensive income (loss) related to net unrealized gains (losses) on securities includes three components: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit other-than-temporary impairment losses to credit losses; and (iii) other adjustments primarily consisting of changes in insurance and annuity asset and liability balances, such as DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates. The following table presents the changes in the balances of each component of AOCI, net of tax: Net Unrealized Gains (Losses) on Securities Other Total (in millions) Balance, January 1, 2019 $ 46 $ (1) $ 45 OCI before reclassifications 527 — 527 Amounts reclassified from AOCI 2 — 2 Total OCI 529 — 529 Balance, December 31, 2019 575 (1) (1) 574 OCI before reclassifications 342 — 342 Amounts reclassified from AOCI 4 — 4 Total OCI 346 — 346 Balance, December 31, 2020 921 (1) (1) 920 OCI before reclassifications (153) — (153) Amounts reclassified from AOCI (439) — (439) Total OCI (592) — (592) Balance, December 31, 2021 $ 329 (1) $ (1) $ 328 (1) Includes nil of noncredit related impairments on securities and net unrealized gains (losses) on previously impaired securities as of December 31, 2021, 2020 and 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The components of income tax provision (benefit) were as follows: Years Ended December 31, 2021 2020 2019 (in millions) Current income tax Federal $ 171 $ 233 $ 210 State 6 — 8 Total current income tax 177 233 218 Deferred income tax Federal (39) (277) (271) State (1) (1) (7) Total deferred income tax (40) (278) (278) Total income tax provision (benefit) $ 137 $ (45) $ (60) The principal reasons that the aggregate income tax provision (benefit) is different from that computed by using the U.S. statutory rate of 21% were as follows: Years Ended December 31, 2021 2020 2019 Tax at U.S. statutory rate 21.0 % 21.0 % 21.0 % Changes in taxes resulting from: Low income housing tax credits (5.6) (20.1) (15.3) Dividend received deduction (2.9) (9.7) (7.6) Foreign tax credit, net of addback (1.5) (1.9) (9.5) Audit adjustments — — (1.4) Uncertain tax positions — — 1.8 Other, net 0.4 (0.8) (0.4) Income tax provision (benefit) 11.4 % (11.5) % (11.4) % The increase in the Company’s effective tax rate for the year ended December 31, 2021 compared to 2020 is primarily due to the higher pre-tax income relative to tax preferred items. Deferred income tax assets and liabilities result from temporary differences between the assets and liabilities measured for GAAP reporting versus income tax return purposes. Deferred income tax assets and liabilities are measured at the statutory rate of 21% as of both December 31, 2021 and 2020. The significant components of the Company’s deferred income tax assets and liabilities, which are included net within Other assets or Other liabilities, were as follows: December 31, 2021 2020 (in millions) Deferred income tax assets Liabilities for policyholder account balances, future policy benefits and claims $ 1,994 $ 1,617 Other 14 13 Gross deferred income tax assets 2,008 1,630 Less: valuation allowance 11 11 Total deferred income tax assets 1,997 1,619 Deferred income tax liabilities Investment related 508 216 Deferred acquisition costs 469 424 Net unrealized gains on Available-for-Sale securities 114 274 Deferred sales inducement costs — 44 Other 58 12 Gross deferred income tax liabilities 1,149 970 Net deferred income tax assets $ 848 $ 649 Included in the Company’s deferred income tax assets are tax benefits primarily related to state net operating losses of $9 million, net of federal benefit, which will expire beginning December 31, 2022. Based on analysis of the Company’s tax position, management believes it is more likely than not that the Company will not realize certain state net operating losses of $9 million and state deferred tax assets of $2 million; therefore, a valuation allowance of $11 million has been established. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows: 2021 2020 2019 (in millions) Balance at January 1 $ 38 $ 39 $ 19 Additions based on tax positions related to the current year — 1 1 Reductions based on tax positions related to the current year (1) (1) — Additions for tax positions of prior years — — 34 Reductions for tax positions of prior years — — (4) Audit settlements — — (11) Reductions due to lapse of statute of limitations — (1) — Balance at December 31 $ 37 $ 38 $ 39 If recognized, approximately $20 million, $20 million and $17 million, net of federal tax benefits, of unrecognized tax benefits as of December 31, 2021, 2020 and 2019, respectively, would affect the effective tax rate. It is reasonably possible that the total amount of unrecognized tax benefits will change in the next 12 months. The Company estimates that the total amount of gross unrecognized tax benefits may decrease by approximately $34 million in the next 12 months primarily due to Internal Revenue Service (“IRS”) settlements. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized a net increase of $1 million, nil and a net increase of $1 million in interest and penalties for the years ended December 31, 2021, 2020 and 2019, respectively. The Company had a payable of $3 million and $2 million related to accrued interest and penalties as of December 31, 2021 and 2020, respectively. The Company files income tax returns as part of its inclusion in the consolidated federal income tax returns of Ameriprise Financial in the U.S. federal jurisdiction and various state jurisdictions. The federal statute of limitations are closed on years through 2015, except for one issue for 2014 and 2015 which was claimed on amended returns. The IRS is currently auditing Ameriprise Financial’s U.S. income tax returns for 2016 through 2020. Ameriprise Financial’s or the Company’s state income tax returns are currently under examination by various jurisdictions for years ranging from 2015 through 2019. |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Guarantees and Contingencies | Commitments The following table presents the Company’s funding commitments as of December 31: 2021 2020 (in millions) Commercial mortgage loans $ 48 $ 18 Affordable housing and other real estate partnerships 9 12 Total funding commitments $ 57 $ 30 Guarantees The Company’s annuity and life products all have minimum interest rate guarantees in their fixed accounts. As of December 31, 2021, these guarantees range from 1% to 5%. Contingencies The Company and its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions, concerning matters arising in connection with the conduct of its activities. These include proceedings specific to the Company as well as proceedings generally applicable to business practices in the industries in which it operates. The Company can also be subject to legal proceedings arising out of its general business activities, such as its investments, contracts, and employment relationships. Uncertain economic conditions, heightened and sustained volatility in the financial markets and significant financial reform legislation may increase the likelihood that clients and other persons or regulators may present or threaten legal claims or that regulators increase the scope or frequency of examinations of the Company or the insurance industry generally. As with other insurance companies, the level of regulatory activity and inquiry concerning the Company’s businesses remains elevated. From time to time, the Company and its affiliates, including AFS and RiverSource Distributors, Inc. receive requests for information from, and/or are subject to examination or claims by various state, federal and other domestic authorities. The Company and its affiliates typically have numerous pending matters, which includes information requests, exams or inquiries regarding their business activities and practices and other subjects, including from time to time: sales and distribution of various products, including the Company’s life insurance and variable annuity products; supervision of associated persons, including AFS financial advisors and RiverSource Distributors Inc.’s wholesalers; administration of insurance and annuity claims; security of client information; and transaction monitoring systems and controls. The Company and its affiliates have cooperated and will continue to cooperate with the applicable regulators. These legal proceedings are subject to uncertainties and, as such, it is inherently difficult to determine whether any loss is probable or even reasonably possible, or to reasonably estimate the amount of any loss. The Company cannot predict with certainty if, how or when any such proceedings will be initiated or resolved. Matters frequently need to be more developed before a loss or range of loss can be reasonably estimated for any proceeding. An adverse outcome in one or more proceedings could eventually result in adverse judgments, settlements, fines, penalties or other sanctions, in addition to further claims, examinations or adverse publicity that could have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity. In accordance with applicable accounting standards, the Company establishes an accrued liability for contingent litigation and regulatory matters when those matters present loss contingencies that are both probable and can be reasonably estimated. The Company discloses the nature of the contingency when management believes there is at least a reasonable possibility that the outcome may be material to the Company’s consolidated financial statements and, where feasible, an estimate of the possible loss. In such cases, there still may be an exposure to loss in excess of any amounts reasonably estimated and accrued. When a loss contingency is not both probable and reasonably estimable, the Company does not establish an accrued liability, but continues to monitor, in conjunction with any outside counsel handling a matter, further developments that would make such loss contingency both probable and reasonably estimable. Once the Company establishes an accrued liability with respect to a loss contingency, the Company continues to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established, and any appropriate adjustments are made each quarter. Guaranty Fund Assessments RiverSource Life Insurance Company and RiverSource Life of NY are required by law to be a member of the guaranty fund association in every state where they are licensed to do business. In the event of insolvency of one or more unaffiliated insurance companies, the Company could be adversely affected by the requirement to pay assessments to the guaranty fund associations. The Company projects its cost of future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and Health Insurance Guaranty Associations and the amount of its premiums written relative to the industry-wide premium in each state. The Company accrues the estimated cost of future guaranty fund assessments when it is considered probable that an assessment will be imposed, the event obligating the Company to pay the assessment has occurred and the amount of the assessment can be reasonably estimated. The Company has a liability for estimated guaranty fund assessments and a related premium tax asset. As of both December 31, 2021 and 2020, the estimated liability was $12 million. As of both December 31, 2021 and 2020, the related premium tax asset was $10 million. The expected period over which guaranty fund assessments will be made and the related tax credits recovered is not known. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation A VIE is an entity that either has equity investors that lack certain essential characteristics of a controlling financial interest (including substantive voting rights, the obligation to absorb the entity’s losses, or the rights to receive the entity’s returns) or has equity investors that do not provide sufficient financial resources for the entity to support its activities. Voting interest entities (“VOEs”) are those entities that do not qualify as a VIE. The Company consolidates VOEs in which it holds a greater than 50% voting interest. The Company generally accounts for entities using the equity method when it holds a greater than 20% but less than 50% voting interest or when the Company exercises significant influence over the entity. All other investments that are not reported at fair value as trading or Available-for-Sale securities are accounted for using the measurement alternative method when the Company owns less than a 20% voting interest and does not exercise significant influence. Under the measurement alternative, the investment is recorded at the cost basis, less impairments, if any, plus or minus observable price changes of identical or similar investments of the same issuer. A VIE is consolidated by the reporting entity that determines it has both: • the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and • the obligation to absorb potentially significant losses or the right to receive potentially significant benefits to the VIE. All VIEs are assessed for consolidation under this framework. When evaluating entities for consolidation, the Company considers its contractual rights in determining whether it has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. In determining whether the Company has this power, it considers whether it is acting in a role that enables it to direct the activities that most significantly impact the economic performance of an entity or if it is acting in an agent role. In determining whether the Company has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Company considers an analysis of its rights to receive benefits such as investment returns and its obligation to absorb losses associated with any investment in the VIE in conjunction with other qualitative factors. Management and incentive fees that are at market and commensurate with the level of services provided, and where the Company does not hold other interests in the VIE that would absorb more than an insignificant amount of the VIE’s expected losses or receive more than an insignificant amount of the VIE’s expected residual returns, are not considered a variable interest and are excluded from the analysis. The consolidation guidance has a scope exception for reporting entities with interests in registered money market funds which do not have an explicit support agreement. |
Amounts Based on Estimates and Assumptions | Amounts Based on Estimates and Assumptions Accounting estimates are an integral part of the Consolidated Financial Statements. In part, they are based upon assumptions concerning future events. Among the more significant are those that relate to investment securities valuation and the recognition of credit losses or impairments, deferred acquisition costs (“DAC”) and the corresponding recognition of DAC amortization, valuation of derivative instruments and hedging activities, litigation reserves, future policy benefits and claims reserves and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ. |
Investments | Investments Available-for-Sale Securities Available-for-Sale securities are carried at fair value with unrealized gains (losses) recorded in accumulated other comprehensive income (“AOCI”), net of impacts to DAC, deferred sales inducement costs (“DSIC”), unearned revenue, benefit reserves, reinsurance recoverables and income taxes. Gains and losses are recognized on a trade date basis in the Consolidated Statements of Income upon disposition of the securities. Available-for-Sale securities are impaired when the fair value of an investment is less than its amortized cost. When an Available-for-Sale security is impaired, the Company first assesses whether or not: (i) it has the intent to sell the security (made a decision to sell) or (ii) it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If either of these conditions exist, the Company recognizes an impairment by reducing the book value of the security for the difference between the investment’s amortized cost and its fair value with a corresponding charge to earnings. Subsequent increases in the fair value of Available-for-Sale securities that occur in periods after a write-down has occurred are recorded as unrealized gains in other comprehensive income (“OCI”), while subsequent decreases in fair value would continue to be recorded as reductions of book value with a charge to earnings. For securities that do not meet the above criteria, the Company determines whether the decrease in fair value is due to a credit loss or due to other factors. The amount of impairment due to credit-related factors, if any, is recognized as an allowance for credit losses with a related charge to net realized investment gains (losses). The allowance for credit losses is limited to the amount by which the security’s amortized cost basis exceeds its fair value. The amount of the impairment related to other factors is recognized in OCI. Factors the Company considers in determining whether declines in the fair value of fixed maturity securities are due to credit-related factors include: (i) the extent to which the market value is below amortized cost; (ii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iii) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors. If through subsequent evaluation there is a sustained increase in cash flows expected, both the allowance and related charge to earnings may be reversed to reflect the increase in expected principal and interest payments. However, for Available-for-Sale securities that recognized an impairment prior to January 1, 2020 by reducing the book value of the security, the difference between the new amortized cost basis and the improved cash flows expected to be collected is accreted as interest income. In order to determine the amount of the credit loss component for corporate debt securities, a best estimate of the present value of cash flows expected to be collected discounted at the security’s effective interest rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and the Company’s position in the debtor’s overall capital structure. When assessing potential credit-related impairments for structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities and asset backed securities), the Company also considers credit-related factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections. Management has elected to exclude accrued interest in its measurement of the allowance for credit losses for Available-for-Sale securities. Accrued interest on Available-for-Sale securities is recorded as earned in Accrued investment income. Available-for-Sale securities are placed on nonaccrual status when the accrued balance becomes 90 days past due or earlier based on management’s evaluation of the facts and circumstances of each security under review. All previously accrued interest is reversed through Net investment income. Other Investments |
Financing Receivables | Financing Receivables Financing receivables are comprised of commercial loans, policy loans, and deposit receivables. Commercial Loans Commercial loans include commercial mortgage loans and syndicated loans and are recorded at amortized cost less the allowance for loan losses. Commercial mortgage loans are recorded within Mortgage loans and syndicated loans are recorded within Other investments. Commercial mortgage loans are loans on commercial properties that are originated by the Company. Syndicated loans represent the Company’s investment in loan syndications originated by unrelated third parties. Interest income is accrued as earned on the unpaid principal balances of the loans. Interest income recognized on commercial mortgage loans and syndicated loans is recorded in Net investment income. Policy Loans Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, there is no allowance for credit losses. Interest income is accrued as earned on the unpaid principal balances of the loans. Interest income recognized on policy loans is recorded in Net investment income. Deposit Receivables For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability related to insurance risk in accordance with applicable accounting standards. If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits made and any related embedded derivatives are included in Receivables. As amounts are received, consistent with the underlying contracts, deposit receivables are adjusted. Deposit receivables are accreted using the interest method and the accretion is reported in Other revenues. See Note 7 for additional information on financing receivables. Allowance for Credit Losses The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected over the asset’s expected life, considering past events, current conditions and reasonable and supportable forecasts of future economic conditions. Prior to January 1, 2020, the allowance for credit losses was based on an incurred loss model that did not require estimating expected credit losses over the expected life of the asset. Estimates of expected credit losses consider both historical charge-off and recovery experience as well as current economic conditions and management’s expectation of future charge-off and recovery levels. Expected losses related to risks other than credit risk are excluded from the allowance for credit losses. The allowance for credit losses is measured and recorded upon initial recognition of the loan, regardless of whether it is originated or purchased. The methods and information used to develop the allowance for credit losses for each class of financing receivable are discussed below. Commercial Loans The allowance for credit losses for commercial mortgage loans and syndicated loans utilizes a probability of default and loss severity approach to estimate lifetime expected credit losses. Actual historical default and loss severity data for each type of commercial loan is adjusted for current conditions and reasonable and supportable forecasts of future economic conditions to develop the probability of default and loss severity assumptions that are applied to the amortized cost basis of the loans over the expected life of each portfolio. The allowance for credit losses on commercial mortgage loans and syndicated loans is recorded through provisions charged to Net realized investment gains (losses) and is reduced/increased by net charge-offs/recoveries. Management determines the adequacy of the allowance for credit losses based on the overall loan portfolio composition, recent and historical loss experience, and other pertinent factors, including when applicable, internal risk ratings, loan-to-value (“LTV”) ratios and occupancy rates, along with reasonable and supportable forecasts of economic and market conditions. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change. While the Company may attribute portions of the allowance to specific loan pools as part of the allowance estimation process, the entire allowance is available to absorb losses expected over the life of the loan portfolio. Deposit receivables The allowance for credit losses is calculated on an individual reinsurer basis. Deposit receivables are collateralized by underlying trust arrangements. Management evaluates the terms of the reinsurance and trust agreements, the nature of the underlying assets, and the potential for changes in the collateral value when considering the need for an allowance for credit losses. Nonaccrual Loans Commercial mortgage loans and syndicated loans are placed on nonaccrual status when either the collection of interest or principal has become 90 days past due or is otherwise considered doubtful of collection. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Interest payments received on loans on nonaccrual status are generally applied to principal unless the remaining principal balance has been determined to be fully collectible. Management has elected to exclude accrued interest in its measurement of the allowance for credit losses for commercial mortgage loans and syndicated loans. Restructured Loans A loan is classified as a restructured loan when the Company makes certain concessionary modifications to contractual terms for borrowers experiencing financial difficulties. When the interest rate, minimum payments, and/or due dates have been modified in an attempt to make the loan more affordable to a borrower experiencing financial difficulties, the modification is considered a troubled debt restructuring. Modifications to loan terms do not automatically result in troubled debt restructurings (“TDRs”). Per the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus, modifications made on a good faith basis in response to the coronavirus disease 2019 (“COVID-19”) pandemic to borrowers who were not more than 30 days past due as of December 31, 2019, such as payment deferrals, extensions of repayment terms, fee waivers, or delays in payment that are not significant to the unpaid principal value of the loan, are not considered TDRs. Generally, performance prior to the restructuring or significant events that coincide with the restructuring are considered in assessing whether the borrower can meet the new terms which may result in the loan being returned to accrual status at the time of the restructuring or after a performance period. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status. Charge-off and Foreclosure Charge-offs are recorded when the Company concludes that all or a portion of the commercial mortgage loan or syndicated loan is uncollectible. Factors used by the Company to determine whether all amounts due on commercial mortgage loans will be collected, include but are not limited to, the financial condition of the borrower, performance of the underlying properties, collateral and/or guarantees on the loan, and the borrower’s estimated future ability to pay based on property type and geographic location. Factors used by the Company to determine whether all amounts due on syndicated loans will be collected, include but are not limited to the borrower’s financial condition, industry outlook, and internal risk ratings based on rating agency data and internal analyst expectations. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents include highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less. |
Reinsurance | Reinsurance The Company cedes insurance risk to other insurers under reinsurance agreements. Reinsurance premiums paid and benefits received are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Reinsurance premiums for traditional life, long term care (“LTC”) , DI and life contingent immediate annuities, net of the change in any prepaid reinsurance asset, are reported as a reduction of Premiums. UL and VUL reinsurance premiums are reported as a reduction of Policy and contract charges. In addition, for UL and VUL insurance policies, the net cost of reinsurance ceded, which represents the discounted amount of the expected cash flows between the reinsurer and the Company, is classified as an asset or contra asset and amortized over the estimated life of the policies in proportion to the estimated gross profits (“EGPs”) and is subject to retrospective adjustment in a manner similar to retrospective adjustment of DAC. The assumptions used to project the expected cash flows are consistent with those used for DAC valuation for the same contracts. Changes in the net cost of reinsurance are reflected as a component of Policy and contract charges. Reinsurance recoveries are reported as components of Benefits, claims, losses and settlement expenses. Insurance liabilities are reported before the effects of reinsurance. Policyholder account balances, future policy benefits and claims recoverable under reinsurance contracts are recorded within Reinsurance recoverables, net of the allowance for credit losses. The Company evaluates the financial condition of its reinsurers prior to entering into new reinsurance contracts and on a periodic basis during the contract term. The allowance for credit losses related to reinsurance recoverable is based on applying observable industry data including insurer ratings, default and loss severity data to the Company’s reinsurance recoverable balances. Management evaluates the results of the calculation and considers differences between the industry data and the Company’s data. Such differences include the fact that the Company has no actual history of losses and the fact that industry data may contain non-life insurers. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change given the long-term nature of these receivables. In addition, the Company has a reinsurance protection agreement that provides credit protections for its reinsured long term care business. The allowance for credit losses on reinsurance recoverable is recorded through provisions charged to Benefits, claims, losses and settlement expenses. The Company also assumes life insurance and fixed annuity risk from other insurers in limited circumstances. Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Liabilities for assumed business are recorded within Policyholder account balances, future policy benefits and claims. See Note 9 for additional information on reinsurance. |
Land, Buildings, Equipment and Software | Land, Buildings, Equipment and Software Land, buildings, equipment and internally developed software are carried at cost less accumulated depreciation or amortization and are reflected within other assets. The Company uses the straight-line method of depreciation and amortization over periods ranging from three As of December 31, 2021 and 2020, land, buildings, equipment and software were $123 million and $124 million, respectively, net of accumulated depreciation of $216 million and $202 million, respectively. Depreciation and amortization expense for the years ended December 31, 2021, 2020 and 2019 was $14 million, $14 million and $16 million, respectively. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Freestanding derivative instruments are recorded at fair value and are reflected in Other assets or Other liabilities. The Company’s policy is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. The Company primarily uses derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. The Company occasionally designates derivatives as (i) hedges of changes in the fair value of assets, liabilities, or firm commitments (“fair value hedges”) or (ii) hedges of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedges”). Derivative instruments that are entered into for hedging purposes are designated as such at the time the Company enters into the contract. For all derivative instruments that are designated for hedging activities, the Company documents all of the hedging relationships between the hedge instruments and the hedged items at the inception of the relationships. Management also documents its risk management objectives and strategies for entering into the hedge transactions. The Company assesses, at inception and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of hedged items. If it is determined that a derivative is no longer highly effective as a hedge, the Company will discontinue the application of hedge accounting. For derivative instruments that do not qualify for hedge accounting or are not designated as accounting hedges, changes in fair value are recognized in current period earnings. Changes in fair value of derivatives are presented in the Consolidated Statements of Income based on the nature and use of the instrument. Changes in fair value of derivatives used as economic hedges are presented in the Consolidated Statements of Income with the corresponding change in the hedged asset or liability. For derivative instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as changes in the fair value of the hedged assets, liabilities or firm commitments, are recognized on a net basis in current period earnings. The carrying value of the hedged item is adjusted for the change in fair value from the designated hedged risk. If a fair value hedge designation is removed or the hedge is terminated prior to maturity, previous adjustments to the carrying value of the hedged item are recognized into earnings over the remaining life of the hedged item. For derivative instruments that qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is reported in AOCI and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Income with the hedged instrument or transaction impact. Any ineffective portion of the gain or loss is reported in current period earnings as a component of Net investment income. If a hedge designation is removed or a hedge is terminated prior to maturity, the amount previously recorded in AOCI is reclassified to earnings over the period that the hedged item impacts earnings. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in AOCI are recognized in earnings immediately. The equity component of indexed annuity, structured variable annuity and IUL obligations are considered embedded derivatives. Additionally, certain annuities contain GMAB and GMWB provisions. The GMAB and the non-life contingent benefits associated with GMWB provisions are also considered embedded derivatives. See Note 13 for information regarding the Company’s fair value measurement of derivative instruments and Note 17 for the impact of derivatives on the Consolidated Statements of Income. |
Deferred Acquisition Costs | Deferred Acquisition Costs The Company incurs costs in connection with acquiring new and renewal insurance and annuity businesses. The portion of these costs which are incremental and direct to the acquisition of a new or renewal insurance policy or annuity contract are deferred. Significant costs capitalized include sales based compensation related to the acquisition of new and renewal insurance policies and annuity contracts, medical inspection costs for successful sales, and a portion of employee compensation and benefit costs based upon the amount of time spent on successful sales. Sales based compensation paid to AFS advisors and employees and third-party distributors is capitalized. Employee compensation and benefits costs which are capitalized relate primarily to sales efforts, underwriting and processing. All other costs which are not incremental direct costs of acquiring an insurance policy or annuity contract are expensed as incurred. The DAC associated with insurance policies or annuity contracts that are significantly modified or internally replaced with another contract are accounted for as contract terminations. These transactions are anticipated in establishing amortization periods and other valuation assumptions. The Company monitors other DAC amortization assumptions, such as persistency, mortality, morbidity, interest margin, variable annuity benefit utilization and maintenance expense levels each quarter and, when assessed independently, each could impact the Company’s DAC balances. The analysis of DAC balances and the corresponding amortization is a dynamic process that considers all relevant factors and assumptions described previously. Unless the Company’s management identifies a significant deviation over the course of the quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year. Non-Traditional Long-Duration Products For non-traditional long-duration products (including variable, structured variable and fixed deferred annuity contracts, UL and VUL insurance products), DAC are amortized based on projections of EGPs over amortization periods equal to the approximate life of the business. EGPs vary based on persistency rates (assumptions at which contractholders and policyholders are expected to surrender, make withdrawals from and make deposits to their contracts), mortality levels, client asset value growth rates (based on equity and bond market performance), variable annuity benefit utilization and interest margins (the spread between earned rates on invested assets and rates credited to contractholder and policyholder accounts) and are management’s best estimates. Management regularly monitors financial market conditions and actual contractholder and policyholder behavior experience and compares them to its assumptions. These assumptions are updated whenever it appears that earlier estimates should be revised. When assumptions are changed, the percentage of EGPs used to amortize DAC might also change. A change in the required amortization percentage is applied retrospectively; an increase in amortization percentage will result in a decrease in the DAC balance and an increase in DAC amortization expense, while a decrease in amortization percentage will result in an increase in the DAC balance and a decrease in DAC amortization expense. The impact on results of operations of changing assumptions can be either positive or negative in any particular period and is reflected in the period in which such changes are made. At each balance sheet date, the DAC balance is adjusted for the effect that would result from the realization of unrealized gains (losses) on securities impacting EGPs, with the related change recognized through AOCI. The client asset value growth rates are the rates at which variable annuity and VUL insurance contract values invested in separate accounts are assumed to appreciate in the future. The rates used vary by equity and fixed income investments. Management reviews and, where appropriate, adjusts its assumptions with respect to client asset value growth rates on a regular basis. The Company typically uses a five-year mean reversion process as a guideline in setting near-term equity fund growth rates based on a long-term view of financial market performance as well as recent actual performance. The suggested near-term equity fund growth rate is reviewed quarterly to ensure consistency with management’s assessment of anticipated equity market performance. DAC amortization expense recorded in a period when client asset value growth rates exceed management’s near-term estimate will typically be less than in a period when growth rates fall short of management’s near-term estimate. Traditional Long-Duration Products For traditional long-duration products (including traditional life and DI insurance products), DAC are generally amortized as a percentage of premiums over amortization periods equal to the premium paying period. The assumptions made in calculating the DAC balance and DAC amortization expense are consistent with those used in determining the liabilities. For traditional life and DI insurance products, the assumptions provide for adverse deviations in experience and are revised only if management concludes experience will be so adverse that DAC are not recoverable. If management concludes that DAC are not recoverable, DAC are reduced to the amount that is recoverable based on best estimate assumptions and there is a corresponding expense recorded in the Consolidated Statements of Income. |
Deferred Sales Inducement Costs | Deferred Sales Inducement Costs Sales inducement costs consist of bonus interest credits and premium credits added to certain annuity contract and insurance policy values. These benefits are capitalized to the extent they are incremental to amounts that would be credited on similar contracts without the applicable feature. The amounts capitalized are amortized using the same methodology and assumptions used to amortize DAC. DSIC is recorded in Other assets and amortization of DSIC is recorded in Benefits, claims, losses and settlement expenses. |
Separate Account Assets and Liabilities | Separate Account Assets and Liabilities Separate account assets represent funds held for the benefit of and Separate account liabilities represent the obligation to the variable annuity contractholders and variable life insurance policyholders who have a contractual right to receive the benefits of their contract or policy and bear the related investment risk. Gains and losses on separate account assets accrue directly to the contractholder or policyholder and are not reported in the Company’s Consolidated Statements of Income. Separate account assets are recorded at fair value and Separate account liabilities are equal to the assets recognized. |
Policyholder Account Balances, Future Policy Benefits and Claims | Policyholder Account Balances, Future Policy Benefits and Claims The Company establishes reserves to cover the benefits associated with non-traditional and traditional long-duration products. Non-traditional long-duration products include variable and structured variable annuity contracts, fixed annuity contracts and UL and VUL policies. Traditional long-duration products include term life, whole life, DI and LTC insurance products. Guarantees accounted for as insurance liabilities include GMDB, gain gross-up (“GGU”), guaranteed minimum income benefit (“GMIB”) and the life contingent benefits associated with GMWB. In addition, UL and VUL policies with product features that result in profits followed by losses are accounted for as insurance liabilities. Guarantees accounted for as embedded derivatives include GMAB and the non-life contingent benefits associated with GMWB. In addition, the portion of structured variable annuities, indexed annuities and IUL policies allocated to the indexed account is accounted for as an embedded derivative. Changes in future policy benefits and claims are reflected in earnings in the period adjustments are made. Where applicable, benefit amounts expected to be recoverable from reinsurance companies who share in the risk are separately recorded as Reinsurance recoverables. Non-Traditional Long-Duration Products The liabilities for non-traditional long-duration products include fixed account values on variable and fixed annuities and UL and VUL policies, liabilities for guaranteed benefits associated with variable annuities and embedded derivatives for variable and structured variable annuities, indexed annuities and IUL products. Liabilities for fixed account values on variable, structured variable and fixed deferred annuities and UL and VUL policies are equal to accumulation values, which are the cumulative gross deposits and credited interest less withdrawals and various charges. A portion of the Company’s UL and VUL policies have product features that result in profits followed by losses from the insurance component of the contract. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the contract. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. The liability for these future losses is determined by estimating the death benefits in excess of account value and recognizing the excess over the estimated life based on expected assessments (e.g. cost of insurance charges, contractual administrative charges, similar fees and investment margin). See Note 11 for information regarding the liability for contracts with secondary guarantees. Liabilities for fixed deferred indexed annuity, structured variable annuity and IUL products are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options. The GMDB and GGU liability is determined by estimating the expected value of death benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees). If elected by the contract owner and after a stipulated waiting period from contract issuance, a GMIB guarantees a minimum lifetime annuity based on a specified rate of contract accumulation value growth and predetermined annuity purchase rates. The GMIB liability is determined each period by estimating the expected value of annuitization benefits in excess of the projected contract accumulation value at the date of annuitization and recognizing the excess over the estimated life based on expected assessments. The liability for the life contingent benefits associated with GMWB provisions is determined by estimating the expected value of benefits that are contingent upon survival after the account value is equal to zero and recognizing the benefits over the estimated life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees). In determining the liabilities for GMDB, GGU, GMIB and the life contingent benefits associated with GMWB, the Company projects these benefits and contract assessments using actuarial models to simulate various equity market scenarios. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency, benefit utilization and investment margins and are consistent with those used for DAC valuation for the same contracts. As with DAC, unless the Company’s management identifies a significant deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year. See Note 11 for information regarding variable annuity guarantees. Liabilities for fixed annuities in a benefit or payout status utilize assumptions established as of the date the payout phase is initiated. The liabilities are the present value of future estimated payments reduced for mortality (which is based on industry mortality tables with modifications based on the Company’s experience) and discounted with interest rates. Embedded Derivatives The fair value of embedded derivatives related to GMAB and the non-life contingent benefits associated with GMWB provisions fluctuate based on equity, interest rate and credit markets and the estimate of the Company’s nonperformance risk, which can cause these embedded derivatives to be either an asset or a liability. The fair value of embedded derivatives related to structured variable annuities, indexed annuities and IUL fluctuate based on equity markets and interest rates and the estimate of the Company’s nonperformance risk and is a liability. See Note 13 for information regarding the fair value measurement of embedded derivatives. Traditional Long-Duration Products The liabilities for traditional long-duration products include liabilities for unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that will become payable on term life, whole life, DI and LTC policies as claims are incurred in the future. Liabilities for unpaid amounts on reported life insurance claims are equal to the death benefits payable under the policies. Liabilities for unpaid amounts on reported DI and LTC claims include any periodic or other benefit amounts due and accrued, along with estimates of the present value of obligations for continuing benefit payments. These unpaid amounts are calculated using anticipated claim continuance rates based on established industry tables, adjusted as appropriate for the Company’s experience. The discount rates used to calculate present values are based on average interest rates earned on assets supporting the liability for unpaid amounts. Liabilities for estimated benefits payable on claims that have been incurred but not yet reported are based on periodic analysis of the actual time lag between when a claim occurs and when it is reported. Liabilities for estimates of benefits that will become payable on future claims on term life, whole life and DI insurance policies are based on the net level premium and LTC policies are based on a gross premium valuation reflecting management’s current best estimate assumptions. Net level premium includes anticipated premium payments, mortality and morbidity rates, policy persistency and interest rates earned on assets supporting the liability. Gross premium valuation includes expected premium rate increases, benefit reductions, morbidity rates, policy persistency and interest rates earned on assets supporting the liability. Anticipated mortality and morbidity rates are based on established industry mortality and morbidity tables, with modifications based on the Company’s experience. Anticipated premium payments and persistency rates vary by policy form, issue age, policy duration and certain other pricing factors. For term life, whole life, DI and LTC policies, the Company utilizes best estimate assumptions as of the date the policy is issued with provisions for the risk of adverse deviation, as appropriate. After the liabilities are initially established, management performs premium deficiency tests using current best estimate assumptions without provisions for adverse deviation annually in the third quarter of each year unless management identifies a material deviation over the course of quarterly monitoring. If the liabilities determined based on these best estimate assumptions are greater than the net reserves (i.e., GAAP reserves net of any DAC balance), the existing net reserves are adjusted by first reducing the DAC balance by the amount of the deficiency or to zero through a charge to current period earnings. If the deficiency is more than the DAC balance, then the net reserves are increased by the excess through a charge to current period earnings. If a premium deficiency is recognized, the assumptions as of the date of the loss recognition are locked in and used in subsequent periods. The assumptions for LTC insurance products are management’s best estimate as of the date of loss recognition and thus no longer provide for adverse deviations in experience. See Note 10 for information regarding the liabilities for traditional long-duration products. |
Unearned Revenue Liability | Unearned Revenue Liability The Company’s UL and VUL policies require payment of fees or other policyholder assessments in advance for services to be provided in future periods. These charges are deferred as unearned revenue and amortized using EGPs, similar to DAC. The unearned revenue liability is recorded in Other liabilities and the amortization is recorded in Policy and contract charges. |
Income Taxes | Income Taxes The Company qualifies as a life insurance company for federal income tax purposes. As such, the Company is subject to the Internal Revenue Code provisions applicable to life insurance companies. The Company’s taxable income is included in the consolidated federal income tax return of Ameriprise Financial. The Company provides for income taxes on a separate return basis, except that, under an agreement between Ameriprise Financial and the Company, tax benefits are recognized for losses to the extent they can be used in the consolidated return. It is the policy of Ameriprise Financial that it will reimburse its subsidiaries for any tax benefits recorded. The Company’s provision for income taxes represents the net amount of income taxes that the Company expects to pay or to receive from various taxing jurisdictions in connection with its operations. The Company provides for income taxes based on amounts that the Company believes it will ultimately owe taking into account the recognition and measurement for uncertain tax positions. Inherent in the provision for income taxes are estimates and judgments regarding the tax treatment of certain items. In connection with the provision for income taxes, the Consolidated Financial Statements reflect certain amounts related to deferred tax assets and liabilities, which result from temporary differences between the assets and liabilities measured for financial statement purposes versus the assets and liabilities measured for tax return purposes. The Company is required to establish a valuation allowance for any portion of its deferred tax assets that management believes will not be realized. Significant judgment is required in determining if a valuation allowance should be established and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business. Consideration is given to, among other things in making this determination: (i) future taxable income exclusive of reversing temporary differences and carryforwards; (ii) future reversals of existing taxable temporary differences; (iii) taxable income in prior carryback years; and (iv) tax planning strategies. Management may need to identify and implement appropriate planning strategies to ensure its ability to realize deferred tax assets and reduce the likelihood of the establishment of a valuation allowance with respect to such assets. See Note 19 for additional information on the Company’s valuation allowance. |
Revenue Recognition | Revenue Recognition Premiums on traditional life, DI and LTC insurance products and immediate annuities with a life contingent feature are net of reinsurance ceded and are recognized as revenue when due. Interest income is accrued as earned using the effective interest method, which makes an adjustment of the yield for security premiums and discounts on all performing fixed maturity securities classified as Available-for-Sale so that the related security or loan recognizes a constant rate of return on the outstanding balance throughout its term. When actual prepayments differ significantly from originally anticipated prepayments, the retrospective effective yield is recalculated to reflect actual payments to date and updated future payment assumptions and a catch-up adjustment is recorded in the current period. In addition, the new effective yield, which reflects anticipated future payments, is used prospectively. Mortality and expense risk fees are based on a percentage of the fair value of assets held in the Company’s separate accounts and recognized when assessed. Variable annuity guaranteed benefit rider charges, cost of insurance charges on UL and VUL insurance and contract charges (net of reinsurance premiums and cost of reinsurance for UL insurance products) and surrender charges on annuities and UL and VUL insurance are recognized as revenue when assessed. Realized gains and losses on the sale of securities, other than equity method investments, are recognized using the specific identification method, on a trade date basis. Fees received under marketing support and distribution services arrangements are recognized as revenue when earned. See Note 4 for further discussion of accounting policies on revenue from contracts with customers. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregated revenue from contracts with cutomers | Years Ended December 31, 2021 2020 2019 (in millions) Policy and contract charges Affiliated (from Columbia Management Investment Distributors, Inc.) $ 193 $ 173 $ 170 Unaffiliated 17 14 14 Total 210 187 184 Other revenues Administrative fees Affiliated (from Columbia Management Investment Services, Corp.) 49 44 43 Unaffiliated 20 18 20 69 62 63 Other fees Affiliated (from Columbia Management Investment Advisers, LLC (“CMIA”) and Columbia Wanger Asset Management, LLC) 389 351 344 Unaffiliated 5 4 4 394 355 348 Total 463 417 411 Total revenue from contracts with customers 673 604 595 Revenue from other sources (1) 2,798 3,172 3,223 Total revenues $ 3,471 $ 3,776 $ 3,818 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) - Consolidated investment entities | 12 Months Ended |
Dec. 31, 2021 | |
Assets and liabilities measured at fair value | |
Schedule of balances of assets and liabilities measured at fair value on a recurring basis | December 31, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Common stocks $ — $ 3 $ — $ 3 Syndicated loans — 2,117 64 2,181 Total investments — 2,120 64 2,184 Receivables — 17 — 17 Other assets — — 3 3 Total assets at fair value $ — $ 2,137 $ 67 $ 2,204 Liabilities Debt (1) $ — $ 2,164 $ — $ 2,164 Other liabilities — 137 — 137 Total liabilities at fair value $ — $ 2,301 $ — $ 2,301 December 31, 2020 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Corporate debt securities $ — $ 8 $ — $ 8 Common stocks — 1 — 1 Syndicated loans — 1,817 92 1,909 Total investments — 1,826 92 1,918 Receivables — 16 — 16 Other assets — — 2 2 Total assets at fair value $ — $ 1,842 $ 94 $ 1,936 Liabilities Debt (1) $ — $ 1,913 $ — $ 1,913 Other liabilities — 69 — 69 Total liabilities at fair value $ — $ 1,982 $ — $ 1,982 (1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.2 billion and $2.0 billion as of December 31, 2021 and 2020, respectively. |
Summary of changes in Level 3 assets measured at fair value on a recurring basis | Syndicated Loans Other Assets Balance, January 1, 2021 $ 92 $ 2 Total gains (losses) included in: Net income 2 (1) 1 (1) Purchases 106 — Sales (38) — Settlements (49) — Transfers into Level 3 119 2 Transfers out of Level 3 (150) (2) Deconsolidation of consolidated investment entities (18) — Balance, December 31, 2021 $ 64 $ 3 Changes in unrealized gains (losses) included in net income relating to assets held at December 31, 2021 $ — $ 1 (1) Syndicated Loans Other Assets (in millions) Balance, January 1, 2020 $ — $ — Purchases — 2 Sales (2) — Transfers into Level 3 15 — Transfers out of Level 3 (70) — Consolidation of consolidated investment entities 149 — Balance, December 31, 2020 $ 92 $ 2 Changes in unrealized gains (losses) included in net income relating to assets held at December 31, 2020 $ — $ — (1) Included in Net investment income. |
Schedule of fair value and unpaid principal balance of loans and debt for which fair value option has been elected | December 31, 2021 December 31, 2020 (in millions) Syndicated loans Unpaid principal balance $ 2,233 $ 1,990 Excess unpaid principal over fair value (52) (81) Fair value $ 2,181 $ 1,909 Fair value of loans more than 90 days past due $ — $ 5 Fair value of loans in nonaccrual status 13 19 Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both 10 24 Debt Unpaid principal balance $ 2,296 $ 2,069 Excess unpaid principal over fair value (132) (156) Carrying value (1) $ 2,164 $ 1,913 (1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.2 billion and $2.0 billion as of December 31, 2021 and 2020, respectively. |
Schedule of debt and stated interest rates | Carrying Value Weighted Average December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 (in millions) Debt of consolidated CLOs due 2028-2034 $ 2,164 $ 1,913 1.7 % 2.1 % |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-Sale securities by type | Description of Securities December 31, 2021 Amortized Cost Gross Gross Allowance for Credit Losses Fair (in millions) Fixed maturities: Corporate debt securities $ 8,447 $ 1,238 $ (47) $ — $ 9,638 Residential mortgage backed securities 2,226 36 (12) — 2,250 Commercial mortgage backed securities 2,615 56 (15) — 2,656 State and municipal obligations 832 244 (1) (1) 1,074 Asset backed securities 517 22 (2) — 537 Foreign government bonds and obligations 80 4 (1) — 83 U.S. government and agency obligations 1 — — — 1 Total $ 14,718 $ 1,600 $ (78) $ (1) $ 16,239 Description of Securities December 31, 2020 Amortized Cost Gross Gross Allowance for Credit Losses Fair (in millions) Fixed maturities: Corporate debt securities $ 10,982 $ 1,903 $ (2) $ (10) $ 12,873 Residential mortgage backed securities 2,888 115 (1) — 3,002 Commercial mortgage backed securities 3,935 235 (4) — 4,166 State and municipal obligations 1,050 295 (1) — 1,344 Asset backed securities 1,168 45 (1) — 1,212 Foreign government bonds and obligations 236 22 (1) — 257 U.S. government and agency obligations 1 — — — 1 Total $ 20,260 $ 2,615 $ (10) $ (10) $ 22,855 |
Summary of fixed maturity securities by rating | Ratings December 31, 2021 December 31, 2020 Amortized Cost Fair Percent of Amortized Fair Percent of (in millions, except percentages) AAA $ 5,031 $ 5,107 31 % $ 7,323 $ 7,698 34 % AA 757 932 6 1,036 1,266 6 A 1,662 2,013 12 2,663 3,235 14 BBB 6,293 7,063 44 7,770 9,026 39 Below investment grade 975 1,124 7 1,468 1,630 7 Total fixed maturities $ 14,718 $ 16,239 100 % $ 20,260 $ 22,855 100 % |
Summary of fair value and gross unrealized losses on Available-for-Sale securities in continuous unrealized loss position | Description of Securities December 31, 2021 Less than 12 months 12 months or more Total Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized (in millions, except number of securities) Corporate debt securities 102 $ 2,007 $ (42) 14 $ 81 $ (5) 116 $ 2,088 $ (47) Residential mortgage backed securities 55 1,162 (12) 2 1 — 57 1,163 (12) Commercial mortgage backed securities 60 809 (15) 3 13 — 63 822 (15) State and municipal obligations 25 63 (1) — — — 25 63 (1) Asset backed securities 5 91 (2) — — — 5 91 (2) Foreign government bonds and obligations 5 6 — 6 4 (1) 11 10 (1) Total 252 $ 4,138 $ (72) 25 $ 99 $ (6) 277 $ 4,237 $ (78) Description of Securities December 31, 2020 Less than 12 months 12 months or more Total Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized (in millions, except number of securities) Corporate debt securities 26 $ 228 $ (1) 1 $ 12 $ (1) 27 $ 240 $ (2) Residential mortgage backed securities 11 47 (1) 7 14 — 18 61 (1) Commercial mortgage backed securities 12 179 (3) 7 60 (1) 19 239 (4) State and municipal obligations 2 4 — 1 4 (1) 3 8 (1) Asset backed securities 4 65 — 2 36 (1) 6 101 (1) Foreign government bonds and obligations 1 3 — 7 8 (1) 8 11 (1) Total 56 $ 526 $ (5) 25 $ 134 $ (5) 81 $ 660 $ (10) |
Rollforward of allowance for credit losses on Available-for-Sale securities | Corporate Debt Securities State and Municipal Obligations Total (in millions) Balance at January 1, 2021 $ 10 $ — $ 10 Additions for which credit losses were not previously recorded — 1 1 Charge-offs (10) — (10) Balance at December 31, 2021 $ — $ 1 $ 1 Corporate Debt Securities (in millions) Balance at January 1, 2020 (1) $ — Additions for which credit losses were not previously recorded 13 Additional increases (decreases) on securities that had an allowance recorded in a previous period (3) Balance at December 31, 2020 $ 10 |
Schedule of net realized gains and losses on Available-for-Sale securities | Years Ended December 31, 2021 2020 2019 (in millions) Gross realized investment gains $ 576 $ 17 $ 29 Gross realized investment losses (6) (2) (14) Credit losses (1) (10) (17) Other impairments (13) — — Total $ 556 $ 5 $ (2) |
Schedule of Available-for-Sale securities by contractual maturity | Amortized Cost Fair Value (in millions) Due within one year $ 470 $ 476 Due after one year through five years 1,878 1,981 Due after five years through 10 years 3,283 3,359 Due after 10 years 3,729 4,980 9,360 10,796 Residential mortgage backed securities 2,226 2,250 Commercial mortgage backed securities 2,615 2,656 Asset backed securities 517 537 Total $ 14,718 $ 16,239 |
Summary of net investment income | Years Ended December 31, 2021 2020 2019 (in millions) Fixed maturities $ 643 $ 777 $ 848 Mortgage loans 102 115 119 Other investments 101 (3) (26) 846 889 941 Less: investment expenses 19 20 24 Total $ 827 $ 869 $ 917 |
Summary of net realized investment gains (losses) | Years Ended December 31, 2021 2020 2019 (in millions) Fixed maturities $ 556 $ 5 $ (2) Mortgage loans 57 (10) — Other investments (18) (5) — Total $ 595 $ (10) $ (2) |
Financing Receivables (Tables)
Financing Receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financing Receivables | |
Rollforward of allowance for loan losses | Commercial Loans (in millions) Balance, January 1, 2021 $ 35 Provisions (23) Balance, December 31, 2021 $ 12 Commercial Loans (in millions) Balance, December 31, 2019 (1) $ 20 Cumulative effect of adoption of current expected credit losses guidance 3 Balance, January 1, 2020 23 Provisions 12 Balance, December 31, 2020 $ 35 (1) Prior to January 1, 2020, the allowance for credit losses was based on an incurred loss model that did not require estimating expected credit losses over the expected life of the asset. Commercial Loans (in millions) Balance, January 1, 2019 $ 20 Charge-offs — Balance, December 31, 2019 $ 20 |
Schedule of concentrations of credit risk of loans by region and property type | Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows: Loans Percentage December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 (in millions) East North Central $ 183 $ 250 10 % 10 % East South Central 54 111 3 4 Middle Atlantic 107 165 6 6 Mountain 111 234 6 10 New England 21 47 1 2 Pacific 589 784 33 30 South Atlantic 477 663 26 25 West North Central 136 192 8 7 West South Central 122 156 7 6 1,800 2,602 100 % 100 % Less: allowance for credit losses 12 28 Total $ 1,788 $ 2,574 Concentrations of credit risk of commercial mortgage loans by property type were as follows: Loans Percentage December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 (in millions) Apartments $ 464 $ 680 26 % 26 % Hotel 15 49 1 2 Industrial 293 401 16 16 Mixed use 57 76 3 3 Office 254 358 14 14 Retail 589 843 33 32 Other 128 195 7 7 1,800 2,602 100 % 100 % Less: allowance for credit losses 12 28 Total $ 1,788 $ 2,574 |
Commercial Loans | Commercial mortgage loans | |
Financing Receivables | |
Schedule of amortized cost basis of loans and credit quality information | December 31, 2021 Loan-to-Value Ratio 2021 2020 2019 2018 2017 Prior Total (in millions) > 100% $ — $ — $ 20 $ 10 $ — $ 29 $ 59 80% - 100% 9 2 9 2 — 29 51 60% - 80% 141 76 59 15 58 133 482 40% - 60% 37 30 75 74 49 393 658 < 40% 6 8 46 — 47 443 550 Total $ 193 $ 116 $ 209 $ 101 $ 154 $ 1,027 $ 1,800 December 31, 2020 Loan-to-Value Ratio 2020 2019 2018 2017 2016 Prior Total (in millions) > 100% $ — $ — $ 2 $ — $ — $ 10 $ 12 80% - 100% 15 16 9 3 7 15 65 60% - 80% 85 152 27 29 46 141 480 40% - 60% 20 50 74 147 111 543 945 < 40% 7 22 69 88 58 856 1,100 Total $ 127 $ 240 $ 181 $ 267 $ 222 $ 1,565 $ 2,602 |
Commercial Loans | Syndicated loans | |
Financing Receivables | |
Schedule of amortized cost basis of loans and credit quality information | December 31, 2021 Internal Risk Rating 2021 2020 2019 2018 2017 Prior Total (in millions) Risk 5 $ — $ — $ — $ — $ — $ — $ — Risk 4 — — — — — — — Risk 3 — — — — — 1 1 Risk 2 11 — 4 1 8 4 28 Risk 1 4 — — 3 3 4 14 Total $ 15 $ — $ 4 $ 4 $ 11 $ 9 $ 43 December 31, 2020 Internal Risk Rating 2020 2019 2018 2017 2016 Prior Total (in millions) Risk 5 $ — $ — $ — $ — $ — $ 2 $ 2 Risk 4 — — 3 7 — 7 17 Risk 3 — 7 6 19 10 18 60 Risk 2 23 42 45 51 10 32 203 Risk 1 14 25 35 43 17 30 164 Total $ 37 $ 74 $ 89 $ 120 $ 37 $ 89 $ 446 |
Deferred Acquisition Costs an_2
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Charges, Insurers [Abstract] | |
Schedule of balances of and changes in DAC | 2021 2020 2019 (in millions) Balance at January 1 $ 2,508 $ 2,673 $ 2,742 Capitalization of acquisition costs 267 216 239 Amortization (172) (164) (119) Amortization, impact of valuation assumptions review 60 (100) (14) Impact of change in net unrealized (gains) losses on securities 94 (117) (175) Balance at December 31 $ 2,757 $ 2,508 $ 2,673 |
Schedule of balances of and changes in DSIC | 2021 2020 2019 (in millions) Balance at January 1 $ 187 $ 216 $ 249 Capitalization of sales inducement costs 1 1 1 Amortization (16) (13) (15) Amortization, impact of valuation assumptions review 2 (16) — Impact of change in net unrealized (gains) losses on securities 13 (1) (19) Balance at December 31 $ 187 $ 187 $ 216 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Reinsurance Disclosures [Abstract] | |
Schedule of effect of reinsurance on premiums | Years Ended December 31, 2021 2020 2019 (in millions) Direct premiums $ 490 $ 565 $ 621 Reinsurance ceded (1,361) (224) (224) Net premiums $ (871) $ 341 $ 397 |
Policyholder Account Balances_2
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities [Abstract] | |
Schedule of components of policyholder account balances, future policy benefits and claims | December 31, 2021 2020 (in millions) Policyholder account balances Fixed annuities (1) $ 8,117 $ 8,531 Variable annuity fixed sub-accounts 4,990 5,104 UL/VUL insurance 3,103 3,122 IUL insurance 2,534 2,269 Structured variable annuities 4,440 1,371 Other life insurance 563 605 Total policyholder account balances 23,747 21,002 Future policy benefits Variable annuity GMWB 2,336 3,049 Variable annuity GMAB (2) (23) 1 Other annuity liabilities 67 211 Fixed annuity life contingent liabilities 1,278 1,370 Life and DI insurance 1,139 1,187 LTC insurance 5,664 5,722 UL/VUL and other life insurance additional liabilities 1,291 1,259 Total future policy benefits 11,752 12,799 Policy claims and other policyholders’ funds 245 185 Total policyholder account balances, future policy benefits and claims $ 35,744 $ 33,986 (1) Includes fixed deferred annuities, non-life contingent fixed payout annuities and fixed deferred indexed annuity host contracts. (2) Includes the fair value of GMAB embedded derivatives that was a net asset as of December 31, 2021 reported as a contra liability. |
Schedule of components of separate account liabilities | December 31, 2021 2020 (in millions) Variable annuity $ 82,862 $ 79,299 VUL insurance 9,343 8,226 Other insurance 33 31 Total $ 92,238 $ 87,556 |
Variable Annuity and Insuranc_2
Variable Annuity and Insurance Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Schedule of variable annuity guarantees with additional liabilities | Variable Annuity Guarantees by Benefit Type (1) December 31, 2021 December 31, 2020 Total Contract Value Net Weighted Average Attained Age Total Contract Value Net Weighted Average Attained Age (in millions, except age) GMDB: Return of premium $ 70,020 $ 68,145 $ 6 69 $ 66,874 $ 64,932 $ 5 68 Five/six-year reset 8,309 5,612 6 68 8,116 5,386 6 68 One-year ratchet 6,177 5,858 13 71 6,094 5,763 8 71 Five-year ratchet 1,438 1,386 1 68 1,436 1,381 — 67 Other 1,302 1,286 38 74 1,261 1,243 45 73 Total — GMDB $ 87,246 $ 82,287 $ 64 69 $ 83,781 $ 78,705 $ 64 68 GGU death benefit $ 1,260 $ 1,198 $ 184 72 $ 1,183 $ 1,126 $ 162 71 GMIB $ 184 $ 170 $ 4 71 $ 187 $ 173 $ 6 71 GMWB: GMWB $ 1,900 $ 1,895 $ 1 75 $ 1,972 $ 1,967 $ 1 74 GMWB for life 52,387 52,334 187 69 50,142 50,057 185 69 Total — GMWB $ 54,287 $ 54,229 $ 188 69 $ 52,114 $ 52,024 $ 186 69 GMAB $ 2,005 $ 2,005 $ — 62 $ 2,291 $ 2,291 $ — 61 (1) Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table. |
Schedule of insurance guarantees with additional liabilities | December 31, 2021 December 31, 2020 Net Amount at Risk Weighted Average Attained Age Net Amount at Risk Weighted Average Attained Age (in millions, except age) UL secondary guarantees $ 6,564 68 $ 6,587 67 |
Schedule of changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees | GMDB & GMIB GMWB (1) GMAB (1) UL (in millions) Balance at January 1, 2019 $ 19 $ 8 $ 875 $ (19) $ 659 Incurred claims 2 (1) 587 (20) 141 Paid claims (5) — — — (42) Balance at December 31, 2019 16 7 1,462 (39) 758 Incurred claims 15 — 1,587 40 209 Paid claims (7) (1) — — (51) Balance at December 31, 2020 24 6 3,049 1 916 Incurred claims 17 — (713) (24) 140 Paid claims (5) (1) — — (36) Balance at December 31, 2021 $ 36 $ 5 $ 2,336 $ (23) $ 1,020 (1) The incurred claims for GMWB and GMAB include the change in the fair value of the liabilities (contra liabilities) less paid claims. |
Summary of distribution of separate account balances by asset type | December 31, 2021 2020 (in millions) Mutual funds: Equity $ 49,183 $ 45,947 Bond 24,998 26,073 Other 8,316 6,911 Total mutual funds $ 82,497 $ 78,931 |
Fair Values of Assets and Lia_2
Fair Values of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Assets and liabilities measured at fair value | |
Summary of significant unobservable inputs used in fair value measurements of Level 3 assets and liabilities | December 31, 2021 Fair Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 496 Discounted cash flow Yield/spread to U.S. Treasuries (1) 0.8% - 2.4% 1.1% Asset backed securities $ 291 Discounted cash flow Annual default rate 5.8% 5.8% Loss severity 25.0% 25.0% Yield/spread to swap rates (2) 175 bps - 275 bps 182 bps Fixed deferred indexed annuity ceded embedded derivatives $ 59 Discounted cash flow Surrender rate (4) 0.0% - 66.8% 1.4% IUL embedded derivatives $ 905 Discounted cash flow Nonperformance risk (3) 65 bps 65 bps Fixed deferred indexed annuity embedded derivatives $ 56 Discounted cash flow Surrender rate (4) 0.0% - 66.8% 1.4% Nonperformance risk (3) 65 bps 65 bps GMWB and GMAB embedded derivatives $ 1,486 Discounted cash flow Utilization of guaranteed withdrawals (5) (6) 0.0% - 48.0% 10.6% Surrender rate (4) 0.1% - 55.7% 3.6% Market volatility (7) (8) 4.3% - 16.8% 10.8% Nonperformance risk (3) 65 bps 65 bps Structured variable annuity embedded derivatives $ 406 Discounted cash flow Surrender rate (4) 0.8% - 40.0% 0.9% Nonperformance risk (3) 65 bps 65 bps December 31, 2020 Fair Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 766 Discounted cash flow Yield/spread to U.S. Treasuries (1) 1.0% - 3.3% 1.5% Asset backed securities $ 395 Discounted cash flow Annual default rate 5.3% 5.3% Loss severity 25.0% 25.0% Yield/spread to swap rates (2) 250 bps - 400 bps 259 bps IUL embedded derivatives $ 935 Discounted cash flow Nonperformance risk (3) 65 bps 65 bps Fixed deferred indexed annuity embedded derivatives $ 49 Discounted cash flow Surrender rate (4) 0.0% - 50.0% 1.2% Nonperformance risk (3) 65 bps 65 bps GMWB and GMAB embedded derivatives $ 2,316 Discounted cash flow Utilization of guaranteed withdrawals (5) (6) 0.0% - 48.0% 10.6% Surrender rate (4) 0.1% - 73.5% 3.8% Market volatility (7) (8) 4.3% - 17.1% 11.0% Nonperformance risk (3) 65 bps 65 bps Structured variable annuity embedded derivatives $ 70 Discounted cash flow Surrender rate (4) 0.8% - 40.0% 0.9% Nonperformance risk (3) 65 bps 65 bps (1) The weighted average for the spread to U.S. Treasuries for corporate debt securities (private placements) is weighted based on the security’s market value as a percentage of the aggregate market value of the securities. (2) The weighted average for the spread to swap rates for asset backed securities is calculated as the sum of each tranche’s balance multiplied by its spread to swap divided by the aggregate balances of the tranches. (3) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. (4) The weighted average surrender rate is weighted based on the benefit base of each contract and represents the average assumption in the current year including the effect of a dynamic surrender formula. (5) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. (6) The weighted average utilization rate represents the average assumption for the current year, weighting each policy evenly. The calculation excludes policies that have already started taking withdrawals. (7) Market volatility represents the implied volatility of fund of funds and managed volatility funds. (8) The weighted average market volatility represents the average volatility across all contracts, weighted by the size of the guaranteed benefit. |
Schedule of carrying value and estimated fair value of financial instruments not reported at fair value | December 31, 2021 Carrying Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 1,788 $ — $ — $ 1,872 $ 1,872 Policy loans 834 — 834 — 834 Other investments 61 — 40 21 61 Receivables 7,876 — — 8,630 8,630 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 12,342 $ — $ — $ 13,264 $ 13,264 Short-term borrowings 200 — 200 — 200 Long-term debt 500 — 498 — 498 Other liabilities 9 — — 9 9 Separate account liabilities - investment contracts 403 — 403 — 403 December 31, 2020 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 2,574 $ — $ — $ 2,724 $ 2,724 Policy loans 846 — 846 — 846 Other investments 457 — 417 40 457 Receivables 1,430 — — 1,732 1,732 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 9,990 $ — $ — $ 11,686 $ 11,686 Short-term borrowings 200 — 200 — 200 Long-term debt 500 — 509 — 509 Other liabilities 12 — — 11 11 Separate account liabilities - investment contracts 351 — 351 — 351 |
RiverSource Life | |
Assets and liabilities measured at fair value | |
Schedule of balances of assets and liabilities measured at fair value on a recurring basis | December 31, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Corporate debt securities $ — $ 9,142 $ 496 $ 9,638 Residential mortgage backed securities — 2,250 — 2,250 Commercial mortgage backed securities — 2,656 — 2,656 State and municipal obligations — 1,074 — 1,074 Asset backed securities — 246 291 537 Foreign government bonds and obligations — 83 — 83 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities 1 15,451 787 16,239 Cash equivalents 1,985 1,191 — 3,176 Receivables: Fixed deferred indexed annuity ceded embedded derivatives — — 59 59 Other assets: Interest rate derivative contracts 1 1,251 — 1,252 Equity derivative contracts 158 4,080 — 4,238 Foreign exchange derivative contracts 1 17 — 18 Credit derivative contracts — 9 — 9 Total other assets 160 5,357 — 5,517 Separate account assets at net asset value (“NAV”) 92,238 (1) Total assets at fair value $ 2,146 $ 21,999 $ 846 $ 117,229 Liabilities Policyholder account balances, future policy benefits and claims: Fixed deferred indexed annuity embedded derivatives $ — $ 5 $ 56 $ 61 IUL embedded derivatives — — 905 905 GMWB and GMAB embedded derivatives — — 1,486 1,486 (2) Structured variable annuity embedded derivatives — — 406 406 Total policyholder account balances, future policy benefits and claims — 5 2,853 2,858 (3) Other liabilities: Interest rate derivative contracts 1 467 — 468 Equity derivative contracts 101 3,610 — 3,711 Foreign exchange derivative contracts 1 — — 1 Total other liabilities 103 4,077 — 4,180 Total liabilities at fair value $ 103 $ 4,082 $ 2,853 $ 7,038 December 31, 2020 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Corporate debt securities $ — $ 12,107 $ 766 $ 12,873 Residential mortgage backed securities — 2,993 9 3,002 Commercial mortgage backed securities — 4,166 — 4,166 State and municipal obligations — 1,344 — 1,344 Asset backed securities — 817 395 1,212 Foreign government bonds and obligations — 257 — 257 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities 1 21,684 1,170 22,855 Cash equivalents 2,419 713 — 3,132 Other assets: Interest rate derivative contracts 1 1,754 — 1,755 Equity derivative contracts 406 3,578 — 3,984 Foreign exchange derivative contracts 1 17 — 18 Credit derivative contracts — 1 — 1 Total other assets 408 5,350 — 5,758 Separate account assets at NAV 87,556 (1) Total assets at fair value $ 2,828 $ 27,747 $ 1,170 $ 119,301 Liabilities Policyholder account balances, future policy benefits and claims: Fixed deferred indexed annuity embedded derivatives $ — $ 3 $ 49 $ 52 IUL embedded derivatives — — 935 935 GMWB and GMAB embedded derivatives — — 2,316 2,316 (4) Structured variable annuity embedded derivatives — — 70 70 Total policyholder account balances, future policy benefits and claims — 3 3,370 3,373 (5) Other liabilities: Interest rate derivative contracts — 734 — 734 Equity derivative contracts 182 3,329 — 3,511 Foreign exchange derivative contracts 2 — — 2 Credit derivative contracts — 1 — 1 Total other liabilities 184 4,064 — 4,248 Total liabilities at fair value $ 184 $ 4,067 $ 3,370 $ 7,621 (1) Amounts are comprised of certain financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. (2) The fair value of the GMWB and GMAB embedded derivatives included $1.6 billion of individual contracts in a liability position and $133 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2021. (3) The Company’s adjustment for nonperformance risk resulted in a $598 million cumulative decrease to the embedded derivatives as of December 31, 2021. (4) The fair value of the GMWB and GMAB embedded derivatives included $2.4 billion of individual contracts in a liability position and $67 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2020. (5) The Company’s adjustment for nonperformance risk resulted in a $727 million cumulative decrease to the embedded derivatives as of December 31, 2020. |
Summary of changes in Level 3 assets measured at fair value on a recurring basis | Available-for-Sale Securities Receivables Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total Fixed Deferred Indexed Annuity Ceded Embedded Derivatives (in millions) Balance at January 1, 2021 $ 766 $ 9 $ 395 $ 1,170 $ — Total gains (losses) included in: Net income (1) — — (1) (1) 3 Other comprehensive income (loss) (10) — (1) (11) — Purchases 108 — — 108 — Issues — — — — 57 (4) Settlements (119) — (81) (200) (1) Transfers into Level 3 168 — 2 170 — Transfers out of Level 3 (416) (9) (24) (449) — Balance at December 31, 2021 $ 496 $ — $ 291 $ 787 $ 59 Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2021 $ (1) $ — $ — $ (1) (1) $ — Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2021 $ (8) $ — $ (1) $ (9) $ — Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total (in millions) Balance at January 1, 2021 $ 49 $ 935 $ 2,316 $ 70 $ 3,370 Total (gains) losses included in: Net income 10 (2) 68 (2) (1,344) (3) 393 (3) (873) Issues — — 369 (28) 341 Settlements (3) (98) 145 (29) 15 Balance at December 31, 2021 $ 56 $ 905 $ 1,486 $ 406 $ 2,853 Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2021 $ — $ 68 (2) $ (1,299) (3) $ — $ (1,231) Available-for-Sale Securities Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance at January 1, 2020 $ 735 $ 17 $ 389 $ 1,141 Total gains (losses) included in: Other comprehensive income (loss) 15 1 (2) 14 Purchases 62 39 — 101 Settlements (46) — (6) (52) Transfers into Level 3 — — 14 14 Transfers out of Level 3 — (48) — (48) Balance at December 31, 2020 $ 766 $ 9 $ 395 $ 1,170 Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2020 $ (1) $ — $ — $ (1) (1) Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2020 $ 15 $ 1 $ (2) $ 14 Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total (in millions) Balance at January 1, 2020 $ 43 $ 881 $ 763 $ — $ 1,687 Total (gains) losses included in: Net income 4 (2) 76 (2) 1,152 (3) 91 (3) 1,323 Issues 3 61 362 (21) 405 Settlements (1) (83) 39 — (45) Balance at December 31, 2020 $ 49 $ 935 $ 2,316 $ 70 $ 3,370 Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2020 $ — $ 76 (2) $ 1,206 (3) $ — $ 1,282 Available-for-Sale Securities Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance at January 1, 2019 $ 871 $ 64 $ 374 $ 1,309 Total gains (losses) included in: Net income (1) — — (1) (1) Other comprehensive income (loss) 30 — 5 35 Purchases 55 27 — 82 Settlements (220) (3) — (223) Transfers into Level 3 — — 10 10 Transfers out of Level 3 — (71) — (71) Balance at December 31, 2019 $ 735 $ 17 $ 389 $ 1,141 Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2019 $ (1) $ — $ — $ (1) (1) Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance at January 1, 2019 $ 14 $ 628 $ 328 $ 970 Total (gains) losses included in: Net income 8 (2) 209 (2) 80 (3) 297 Issues 21 113 361 495 Settlements — (69) (6) (75) Balance at December 31, 2019 $ 43 $ 881 $ 763 $ 1,687 Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2019 $ — $ 209 (2) $ 82 (3) $ 291 (1) Included in Net investment income. (2) Included in Interest credited to fixed accounts. (3) Included in Benefits, claims, losses and settlement expenses. (4) Represents the amount of ceded embedded derivatives associated with fixed deferred annuity products reinsured in the third quarter of 2021. See Note 1 for additional information on the reinsurance transaction. |
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis | Available-for-Sale Securities Receivables Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total Fixed Deferred Indexed Annuity Ceded Embedded Derivatives (in millions) Balance at January 1, 2021 $ 766 $ 9 $ 395 $ 1,170 $ — Total gains (losses) included in: Net income (1) — — (1) (1) 3 Other comprehensive income (loss) (10) — (1) (11) — Purchases 108 — — 108 — Issues — — — — 57 (4) Settlements (119) — (81) (200) (1) Transfers into Level 3 168 — 2 170 — Transfers out of Level 3 (416) (9) (24) (449) — Balance at December 31, 2021 $ 496 $ — $ 291 $ 787 $ 59 Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2021 $ (1) $ — $ — $ (1) (1) $ — Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2021 $ (8) $ — $ (1) $ (9) $ — Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total (in millions) Balance at January 1, 2021 $ 49 $ 935 $ 2,316 $ 70 $ 3,370 Total (gains) losses included in: Net income 10 (2) 68 (2) (1,344) (3) 393 (3) (873) Issues — — 369 (28) 341 Settlements (3) (98) 145 (29) 15 Balance at December 31, 2021 $ 56 $ 905 $ 1,486 $ 406 $ 2,853 Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2021 $ — $ 68 (2) $ (1,299) (3) $ — $ (1,231) Available-for-Sale Securities Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance at January 1, 2020 $ 735 $ 17 $ 389 $ 1,141 Total gains (losses) included in: Other comprehensive income (loss) 15 1 (2) 14 Purchases 62 39 — 101 Settlements (46) — (6) (52) Transfers into Level 3 — — 14 14 Transfers out of Level 3 — (48) — (48) Balance at December 31, 2020 $ 766 $ 9 $ 395 $ 1,170 Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2020 $ (1) $ — $ — $ (1) (1) Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2020 $ 15 $ 1 $ (2) $ 14 Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total (in millions) Balance at January 1, 2020 $ 43 $ 881 $ 763 $ — $ 1,687 Total (gains) losses included in: Net income 4 (2) 76 (2) 1,152 (3) 91 (3) 1,323 Issues 3 61 362 (21) 405 Settlements (1) (83) 39 — (45) Balance at December 31, 2020 $ 49 $ 935 $ 2,316 $ 70 $ 3,370 Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2020 $ — $ 76 (2) $ 1,206 (3) $ — $ 1,282 Available-for-Sale Securities Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance at January 1, 2019 $ 871 $ 64 $ 374 $ 1,309 Total gains (losses) included in: Net income (1) — — (1) (1) Other comprehensive income (loss) 30 — 5 35 Purchases 55 27 — 82 Settlements (220) (3) — (223) Transfers into Level 3 — — 10 10 Transfers out of Level 3 — (71) — (71) Balance at December 31, 2019 $ 735 $ 17 $ 389 $ 1,141 Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2019 $ (1) $ — $ — $ (1) (1) Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance at January 1, 2019 $ 14 $ 628 $ 328 $ 970 Total (gains) losses included in: Net income 8 (2) 209 (2) 80 (3) 297 Issues 21 113 361 495 Settlements — (69) (6) (75) Balance at December 31, 2019 $ 43 $ 881 $ 763 $ 1,687 Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2019 $ — $ 209 (2) $ 82 (3) $ 291 (1) Included in Net investment income. (2) Included in Interest credited to fixed accounts. (3) Included in Benefits, claims, losses and settlement expenses. (4) Represents the amount of ceded embedded derivatives associated with fixed deferred annuity products reinsured in the third quarter of 2021. See Note 1 for additional information on the reinsurance transaction. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of cash dividends or distributions paid and received | Years Ended December 31, 2021 2020 2019 (in millions) Paid to Ameriprise Financial $ 1,900 $ 800 $ 1,350 Received from RiverSource Life of NY — — 43 Received from RTA 50 95 100 |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Summary of statutory net gain from operations and net income (loss) | Years Ended December 31, 2021 2020 2019 (in millions) Statutory net gain from operations $ 1,366 $ 1,393 $ 1,505 Statutory net income 253 1,582 786 |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Offsetting [Abstract] | |
Schedule of gross and net information about assets subject to master netting arrangements | December 31, 2021 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 5,330 $ — $ 5,330 $ (3,571) $ (1,623) $ (114) $ 22 OTC cleared 88 — 88 (41) — — 47 Exchange-traded 99 — 99 (91) — — 8 Total derivatives $ 5,517 $ — $ 5,517 $ (3,703) $ (1,623) $ (114) $ 77 December 31, 2020 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 5,391 $ — $ 5,391 $ (3,801) $ (1,243) $ (315) $ 32 OTC cleared 58 — 58 (25) — — 33 Exchange-traded 309 — 309 (90) (165) — 54 Total derivatives $ 5,758 $ — $ 5,758 $ (3,916) $ (1,408) $ (315) $ 119 (1) Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
Schedule of gross and net information about liabilities subject to master netting arrangements | December 31, 2021 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Gross Amounts Not Offset Net Amount Financial Instruments (1) Cash Securities (in millions) Derivatives: OTC $ 4,048 $ — $ 4,048 $ (3,571) $ (181) $ (293) $ 3 OTC cleared 41 — 41 (41) — — — Exchange-traded 91 — 91 (91) — — — Total derivatives $ 4,180 $ — $ 4,180 $ (3,703) $ (181) $ (293) $ 3 December 31, 2020 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset Net Amount Financial Instruments (1) Cash Securities (in millions) Derivatives: OTC $ 4,129 $ — $ 4,129 $ (3,801) $ (1) $ (327) $ — OTC cleared 25 — 25 (25) — — — Exchange-traded 94 — 94 (90) — — 4 Total derivatives $ 4,248 $ — $ 4,248 $ (3,916) $ (1) $ (327) $ 4 (1) Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional value and gross fair value of derivative instruments, including embedded derivatives | December 31, 2021 December 31, 2020 Notional Gross Fair Value Notional Gross Fair Value Assets (1) Liabilities (2)(3) Assets (1) Liabilities (2)(3) (in millions) Derivatives not designated as hedging instruments Interest rate contracts $ 79,459 $ 1,252 $ 468 $ 77,925 $ 1,755 $ 734 Equity contracts 59,763 4,238 3,711 55,993 3,984 3,511 Credit contracts 1,717 9 — 2,269 1 1 Foreign exchange contracts 2,239 18 1 3,124 18 2 Total non-designated hedges 143,178 5,517 4,180 139,311 5,758 4,248 Embedded derivatives GMWB and GMAB (4) N/A — 1,486 N/A — 2,316 IUL N/A — 905 N/A — 935 Fixed deferred indexed annuities and deposit receivables N/A 59 61 N/A — 52 Structured variable annuity N/A — 406 N/A — 70 Total embedded derivatives N/A 59 2,858 N/A — 3,373 Total derivatives $ 143,178 $ 5,576 $ 7,038 $ 139,311 $ 5,758 $ 7,621 N/A Not applicable. (1) The fair value of freestanding derivative assets is included in Other assets and the fair value of ceded derivative assets related to deposit receivables is included in Receivables. (2) The fair value of freestanding derivative liabilities is included in Other liabilities. The fair value of GMWB and GMAB, IUL, and fixed deferred indexed annuity and structured variable annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims. (3) The fair value of the Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $3.2 billion and $3.7 billion as of December 31, 2021 and 2020, respectively. See Note 16 for additional information related to master netting arrangements and cash collateral. |
Summary of impact of derivatives not designated as hedging instruments, including embedded derivatives | Net Investment Income Interest Credited to Fixed Accounts Benefits, Claims, Losses and Settlement Expenses (in millions) Year Ended December 31, 2021 Interest rate contracts $ — $ — $ (886) Equity contracts 1 91 (817) Credit contracts — — 43 Foreign exchange contracts — — 5 GMWB and GMAB embedded derivatives — — 830 IUL embedded derivatives — 30 — Fixed deferred indexed annuity and deposit receivables embedded derivatives — (8) — Structured variable annuity embedded derivatives — — (393) Total gain (loss) $ 1 $ 113 $ (1,218) Year Ended December 31, 2020 Interest rate contracts $ — $ — $ 1,633 Equity contracts — 55 (744) Credit contracts — — (106) Foreign exchange contracts — — (8) GMWB and GMAB embedded derivatives — — (1,553) IUL embedded derivatives — 7 — Fixed deferred indexed annuities embedded derivatives — (4) — Structured variable annuity embedded derivatives — — (91) Total gain (loss) $ — $ 58 $ (869) Year Ended December 31, 2019 Interest rate contracts $ — $ — $ 1,100 Equity contracts — 117 (1,501) Credit contracts — — (73) Foreign exchange contracts — — (30) GMWB and GMAB embedded derivatives — — (435) IUL embedded derivatives — (140) — Fixed deferred indexed annuities embedded derivatives — (8) — Total gain (loss) $ — $ (31) $ (939) |
Summary of payments to make and receive for options and swaptions | Premiums Premiums (in millions) 2022 $ 204 $ 204 2023 51 43 2024 137 25 2025 124 22 2026 252 88 2027-2028 18 — Total $ 786 $ 382 |
Shareholder's Equity (Tables)
Shareholder's Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of amounts related to each component of OCI | Year Ended December 31, 2021 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ (527) $ 111 $ (416) Reclassification of net (gains) losses on securities included in net income (2) (556) 117 (439) Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables 333 (70) 263 Net unrealized gains (losses) on securities (750) 158 (592) Total other comprehensive income (loss) $ (750) $ 158 $ (592) Year Ended December 31, 2020 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ 811 $ (170) $ 641 Reclassification of net (gains) losses on securities included in net income (2) 5 (1) 4 Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables (379) 80 (299) Net unrealized gains (losses) on securities 437 (91) 346 Total other comprehensive income (loss) $ 437 $ (91) $ 346 Year Ended December 31, 2019 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ 1,360 $ (289) $ 1,071 Reclassification of net (gains) losses on securities included in net income (2) 2 — 2 Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables (688) 144 (544) Net unrealized gains (losses) on securities 674 (145) 529 Total other comprehensive income (loss) $ 674 $ (145) $ 529 (1) Includes impairments on Available-for-Sale securities related to factors other than credit that were recognized in OCI during the period. (2) Reclassification amounts are recorded in Net realized investment gains (losses). |
Schedule of changes in the balances of each component of AOCI | Net Unrealized Gains (Losses) on Securities Other Total (in millions) Balance, January 1, 2019 $ 46 $ (1) $ 45 OCI before reclassifications 527 — 527 Amounts reclassified from AOCI 2 — 2 Total OCI 529 — 529 Balance, December 31, 2019 575 (1) (1) 574 OCI before reclassifications 342 — 342 Amounts reclassified from AOCI 4 — 4 Total OCI 346 — 346 Balance, December 31, 2020 921 (1) (1) 920 OCI before reclassifications (153) — (153) Amounts reclassified from AOCI (439) — (439) Total OCI (592) — (592) Balance, December 31, 2021 $ 329 (1) $ (1) $ 328 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax provision (benefit) | Years Ended December 31, 2021 2020 2019 (in millions) Current income tax Federal $ 171 $ 233 $ 210 State 6 — 8 Total current income tax 177 233 218 Deferred income tax Federal (39) (277) (271) State (1) (1) (7) Total deferred income tax (40) (278) (278) Total income tax provision (benefit) $ 137 $ (45) $ (60) |
Schedule of reasons for aggregate income tax provision (benefit) differences to U.S. statutory rate | Years Ended December 31, 2021 2020 2019 Tax at U.S. statutory rate 21.0 % 21.0 % 21.0 % Changes in taxes resulting from: Low income housing tax credits (5.6) (20.1) (15.3) Dividend received deduction (2.9) (9.7) (7.6) Foreign tax credit, net of addback (1.5) (1.9) (9.5) Audit adjustments — — (1.4) Uncertain tax positions — — 1.8 Other, net 0.4 (0.8) (0.4) Income tax provision (benefit) 11.4 % (11.5) % (11.4) % |
Schedule of significant components of deferred income tax assets and liabilities | December 31, 2021 2020 (in millions) Deferred income tax assets Liabilities for policyholder account balances, future policy benefits and claims $ 1,994 $ 1,617 Other 14 13 Gross deferred income tax assets 2,008 1,630 Less: valuation allowance 11 11 Total deferred income tax assets 1,997 1,619 Deferred income tax liabilities Investment related 508 216 Deferred acquisition costs 469 424 Net unrealized gains on Available-for-Sale securities 114 274 Deferred sales inducement costs — 44 Other 58 12 Gross deferred income tax liabilities 1,149 970 Net deferred income tax assets $ 848 $ 649 |
Reconciliation rollforward of gross unrecognized tax benefits | 2021 2020 2019 (in millions) Balance at January 1 $ 38 $ 39 $ 19 Additions based on tax positions related to the current year — 1 1 Reductions based on tax positions related to the current year (1) (1) — Additions for tax positions of prior years — — 34 Reductions for tax positions of prior years — — (4) Audit settlements — — (11) Reductions due to lapse of statute of limitations — (1) — Balance at December 31 $ 37 $ 38 $ 39 |
Commitments, Guarantees and C_2
Commitments, Guarantees and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of funding commitments | 2021 2020 (in millions) Commercial mortgage loans $ 48 $ 18 Affordable housing and other real estate partnerships 9 12 Total funding commitments $ 57 $ 30 |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation - Subsidiaries (Details) | Dec. 31, 2021item |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of wholly owned subsidiaries | 1 |
Nature of Business and Basis _3
Nature of Business and Basis of Presentation - Reinsurance Transaction (Details) - USD ($) $ in Millions | Jul. 01, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Reinsurance transaction | |||||
Net realized gain | $ 595 | $ (10) | $ (2) | ||
RiverSource Life Insurance Company | |||||
Reinsurance transaction | |||||
Consideration transferred in reinsurance transaction | $ 7,800 | ||||
Net realized gain | $ 532 | ||||
RiverSource Life Insurance Company | Fixed deferred and immediate annuity policies | |||||
Reinsurance transaction | |||||
Policies reinsured | $ 7,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Consolidation (Details) | Dec. 31, 2021 |
Minimum | |
Principles of consolidation | |
Voting interest for consolidation (as a percent) | 50.00% |
Equity method ownership (as a percent) | 20.00% |
Maximum | |
Principles of consolidation | |
Equity method ownership (as a percent) | 50.00% |
Voting interest ownership for using measurement alternative cost method (as a percent) | 20.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Investments and Financing Receivables (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Available-for-Sale securities: | |
Period past due for nonaccrual status | 90 days |
COVID 19 loan modifications | Maximum | |
Financing Receivables | |
Period past due | 30 days |
Commercial Loans | Commercial mortgage loans | |
Financing Receivables | |
Period past due for nonaccrual status | 90 days |
Commercial Loans | Syndicated loans | |
Financing Receivables | |
Period past due for nonaccrual status | 90 days |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies- Land, Buildings, Equipment and Software (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Land, buildings, equipment and software | |||
Land, buildings, equipment and software, net of accumulated depreciation | $ 123 | $ 124 | |
Accumulated depreciation | 216 | 202 | |
Depreciation and amortization expense | $ 14 | $ 14 | $ 16 |
Minimum | |||
Land, buildings, equipment and software | |||
Depreciation and amortization period | 3 years | ||
Maximum | |||
Land, buildings, equipment and software | |||
Depreciation and amortization period | 39 years |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Revenues | ||||
Revenue from contracts with customers | $ 673 | $ 604 | $ 595 | |
Revenue from other sources | [1] | 2,798 | 3,172 | 3,223 |
Total revenues | 3,471 | 3,776 | 3,818 | |
Receivables related to revenues from contracts with customers | 62 | 57 | ||
Policy and contract charges | ||||
Revenues | ||||
Revenue from contracts with customers | 210 | 187 | 184 | |
Policy and contract charges | Affiliated | ||||
Revenues | ||||
Revenue from contracts with customers | 193 | 173 | 170 | |
Policy and contract charges | Unaffiliated | ||||
Revenues | ||||
Revenue from contracts with customers | 17 | 14 | 14 | |
Total Other revenues | ||||
Revenues | ||||
Revenue from contracts with customers | 463 | 417 | 411 | |
Other revenues: Administrative fees | ||||
Revenues | ||||
Revenue from contracts with customers | 69 | 62 | 63 | |
Other revenues: Administrative fees | Affiliated | ||||
Revenues | ||||
Revenue from contracts with customers | 49 | 44 | 43 | |
Other revenues: Administrative fees | Unaffiliated | ||||
Revenues | ||||
Revenue from contracts with customers | 20 | 18 | 20 | |
Other revenues: Other fees | ||||
Revenues | ||||
Revenue from contracts with customers | 394 | 355 | 348 | |
Other revenues: Other fees | Affiliated | ||||
Revenues | ||||
Revenue from contracts with customers | 389 | 351 | 344 | |
Other revenues: Other fees | Unaffiliated | ||||
Revenues | ||||
Revenue from contracts with customers | $ 5 | $ 4 | $ 4 | |
[1] | Amounts primarily consist of revenue associated with insurance and annuity products or financial instruments. |
Variable Interest Entities - In
Variable Interest Entities - Investment Entities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
VIEs, not primary beneficiary | ||
Variable interest entities | ||
Obligation to provide financial or other support to VIEs | $ 0 | |
VIEs, not primary beneficiary | Affordable Housing Partnerships and Other Real Estate Partnerships | ||
Variable interest entities | ||
Maximum loss exposure | 138 | $ 200 |
Other investments | 138 | 200 |
Liability related to original purchase commitments not yet remitted | 8 | 9 |
Consolidated investment entities | Unfunded commitments | ||
Variable interest entities | ||
Loans | $ 27 | $ 13 |
Variable Interest Entities - Fa
Variable Interest Entities - Fair Value of Assets and Liabilities (Details) - Consolidated investment entities - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Liabilities | |||
Debt | [1] | $ 2,164 | $ 1,913 |
Recurring basis | |||
Assets | |||
Investments | 2,184 | 1,918 | |
Receivables | 17 | 16 | |
Other assets | 3 | 2 | |
Total assets at fair value | 2,204 | 1,936 | |
Liabilities | |||
Debt | [1] | 2,164 | 1,913 |
Other liabilities | 137 | 69 | |
Total liabilities at fair value | 2,301 | 1,982 | |
Recurring basis | Corporate debt securities | |||
Assets | |||
Investments | 8 | ||
Recurring basis | Common stocks | |||
Assets | |||
Investments | 3 | 1 | |
Recurring basis | Syndicated loans | |||
Assets | |||
Investments | 2,181 | 1,909 | |
Recurring basis | Level 2 | |||
Assets | |||
Investments | 2,120 | 1,826 | |
Receivables | 17 | 16 | |
Total assets at fair value | 2,137 | 1,842 | |
Liabilities | |||
Debt | [1] | 2,164 | 1,913 |
Other liabilities | 137 | 69 | |
Total liabilities at fair value | 2,301 | 1,982 | |
Recurring basis | Level 2 | Corporate debt securities | |||
Assets | |||
Investments | 8 | ||
Recurring basis | Level 2 | Common stocks | |||
Assets | |||
Investments | 3 | 1 | |
Recurring basis | Level 2 | Syndicated loans | |||
Assets | |||
Investments | 2,117 | 1,817 | |
Recurring basis | Level 3 | |||
Assets | |||
Investments | 64 | 92 | |
Other assets | 3 | 2 | |
Total assets at fair value | 67 | 94 | |
Recurring basis | Level 3 | Syndicated loans | |||
Assets | |||
Investments | 64 | 92 | |
CLOs | |||
Liabilities | |||
Debt | $ 2,200 | $ 2,000 | |
[1] | The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.2 billion and $2.0 billion as of December 31, 2021 and 2020, respectively. |
Variable Interest Entities - Ch
Variable Interest Entities - Changes in Level 3 Assets (Details) - Consolidated investment entities - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Syndicated loans | |||
Summary of changes in Level 3 assets measured at fair value on a recurring basis | |||
Balance, beginning | $ 92 | $ 0 | |
Total gains (losses) included in Net income | [1] | 2 | |
Purchases | 106 | ||
Sales | (38) | (2) | |
Settlements | (49) | ||
Transfers into Level 3 | 119 | 15 | |
Transfers out of Level 3 | (150) | (70) | |
Deconsolidation of consolidated investment entities | (18) | ||
Consolidation of consolidated investment entities | 149 | ||
Balance, ending | 64 | 92 | |
Other assets | |||
Summary of changes in Level 3 assets measured at fair value on a recurring basis | |||
Balance, beginning | 2 | 0 | |
Total gains (losses) included in Net income | [1] | 1 | |
Purchases | 2 | ||
Transfers into Level 3 | 2 | ||
Transfers out of Level 3 | (2) | ||
Balance, ending | 3 | $ 2 | |
Changes in unrealized gains (losses) in net income relating to assets held at end of period | [1] | $ 1 | |
[1] | Included in Net investment income. |
Variable Interest Entities - _2
Variable Interest Entities - Fair Value Option (Details) - Consolidated investment entities - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Loans | ||||
Unpaid principal balance | $ 2,233 | $ 1,990 | ||
Excess unpaid principal over fair value | (52) | (81) | ||
Fair Value | 2,181 | 1,909 | ||
Fair value of loans more than 90 days past due | 5 | |||
Fair value of loans in nonaccrual status | 13 | 19 | ||
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both | 10 | 24 | ||
Debt | ||||
Unpaid principal balance | 2,296 | 2,069 | ||
Excess unpaid principal over fair value | (132) | (156) | ||
Debt Carrying value and Fair value | [1] | 2,164 | 1,913 | |
Debt issued | $ 817 | |||
CLOs | ||||
Debt | ||||
Debt Carrying value and Fair value | $ 2,200 | $ 2,000 | ||
[1] | The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.2 billion and $2.0 billion as of December 31, 2021 and 2020, respectively. |
Variable Interest Entities - De
Variable Interest Entities - Debt and Stated Interest Rates (Details) - Consolidated investment entities - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt and stated interest rates | ||
Debt, Carrying Value | $ 2,164 | $ 1,913 |
Weighted Average Interest Rate | 1.70% | 2.10% |
Minimum | ||
Debt and stated interest rates | ||
Interest rates (as a percent) | 0.00% | |
Maximum | ||
Debt and stated interest rates | ||
Interest rates (as a percent) | 9.40% |
Investments - Available-for-Sal
Investments - Available-for-Sale Securities by Type (Details) - USD ($) $ in Millions | 1 Months Ended | ||||
Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | [1] | |
Purchase of investments | Ameriprise Financial | |||||
Investments | |||||
Purchases from related party | $ 368 | ||||
RiverSource Life | |||||
Investments | |||||
Amortized Cost | $ 14,718 | $ 20,260 | |||
Gross Unrealized Gains | 1,600 | 2,615 | |||
Gross Unrealized Losses | (78) | (10) | |||
Allowance for Credit Losses | (1) | (10) | |||
Fair value | 16,239 | 22,855 | |||
Accrued interest excluded from amortized cost basis | 118 | 158 | |||
Fair value of investment securities pledged to meet contractual obligations | 2,400 | 2,900 | |||
Fair value of investment securities pledged that may be sold, pledged or rehypothecated by the counterparty | 314 | 454 | |||
RiverSource Life | Corporate debt securities | |||||
Investments | |||||
Amortized Cost | 8,447 | 10,982 | |||
Gross Unrealized Gains | 1,238 | 1,903 | |||
Gross Unrealized Losses | (47) | (2) | |||
Allowance for Credit Losses | 0 | (10) | $ 0 | ||
Fair value | 9,638 | 12,873 | |||
RiverSource Life | Residential mortgage backed securities | |||||
Investments | |||||
Amortized Cost | 2,226 | 2,888 | |||
Gross Unrealized Gains | 36 | 115 | |||
Gross Unrealized Losses | (12) | (1) | |||
Fair value | 2,250 | 3,002 | |||
RiverSource Life | Commercial mortgage backed securities | |||||
Investments | |||||
Amortized Cost | 2,615 | 3,935 | |||
Gross Unrealized Gains | 56 | 235 | |||
Gross Unrealized Losses | (15) | (4) | |||
Fair value | 2,656 | 4,166 | |||
RiverSource Life | State and municipal obligations | |||||
Investments | |||||
Amortized Cost | 832 | 1,050 | |||
Gross Unrealized Gains | 244 | 295 | |||
Gross Unrealized Losses | (1) | (1) | |||
Allowance for Credit Losses | (1) | 0 | |||
Fair value | 1,074 | 1,344 | |||
RiverSource Life | Asset backed securities | |||||
Investments | |||||
Amortized Cost | 517 | 1,168 | |||
Gross Unrealized Gains | 22 | 45 | |||
Gross Unrealized Losses | (2) | (1) | |||
Fair value | 537 | 1,212 | |||
RiverSource Life | Foreign government bonds and obligations | |||||
Investments | |||||
Amortized Cost | 80 | 236 | |||
Gross Unrealized Gains | 4 | 22 | |||
Gross Unrealized Losses | (1) | (1) | |||
Fair value | 83 | 257 | |||
RiverSource Life | U.S. government and agency obligations | |||||
Investments | |||||
Amortized Cost | 1 | 1 | |||
Fair value | $ 1 | $ 1 | |||
[1] | Prior to January 1, 2020, credit losses on Available-for-Sale securities were not recorded in an allowance but were recorded as a reduction of the book value of the security if the security was other-than-temporarily impaired. |
Investments - Summary of Fixed
Investments - Summary of Fixed Maturity Securities by Rating (Details) - RiverSource Life - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investments | ||
Fixed maturity securities rated internally | $ 359 | $ 553 |
Amortized Cost | 14,718 | 20,260 |
Fair value | 16,239 | 22,855 |
Ameriprise Advisor Financing, LLC ("AAF") | ||
Investments | ||
Holdings of single issuer greater than 10% of equity | 289 | 372 |
Kraft Heinz Co. | ||
Investments | ||
Holdings of single issuer greater than 10% of equity | 247 | |
Duke Energy Corp. | ||
Investments | ||
Holdings of single issuer greater than 10% of equity | 225 | |
AT&T Inc. | ||
Investments | ||
Holdings of single issuer greater than 10% of equity | 221 | |
Suncor Energy Inc. | ||
Investments | ||
Holdings of single issuer greater than 10% of equity | 210 | |
AAA | ||
Investments | ||
Amortized Cost | 5,031 | 7,323 |
Fair value | 5,107 | 7,698 |
AA | ||
Investments | ||
Amortized Cost | 757 | 1,036 |
Fair value | 932 | 1,266 |
A | ||
Investments | ||
Amortized Cost | 1,662 | 2,663 |
Fair value | 2,013 | 3,235 |
BBB | ||
Investments | ||
Amortized Cost | 6,293 | 7,770 |
Fair value | 7,063 | 9,026 |
Below investment grade | ||
Investments | ||
Amortized Cost | 975 | 1,468 |
Fair value | $ 1,124 | $ 1,630 |
Total investments | Credit concentration risk | Fixed maturity securities | ||
Investments | ||
Percentage of total | 85.00% | 85.00% |
Fixed maturity securities | Credit concentration risk | ||
Investments | ||
Percentage of total | 100.00% | 100.00% |
Fixed maturity securities | Credit concentration risk | AAA | ||
Investments | ||
Percentage of total | 31.00% | 34.00% |
Fixed maturity securities | Credit concentration risk | AA | ||
Investments | ||
Percentage of total | 6.00% | 6.00% |
Fixed maturity securities | Credit concentration risk | A | ||
Investments | ||
Percentage of total | 12.00% | 14.00% |
Fixed maturity securities | Credit concentration risk | BBB | ||
Investments | ||
Percentage of total | 44.00% | 39.00% |
Fixed maturity securities | Credit concentration risk | Below investment grade | ||
Investments | ||
Percentage of total | 7.00% | 7.00% |
Fixed maturity securities | Credit concentration risk | GNMA, FNMA and FHLMC mortgage backed securities. | AAA | ||
Investments | ||
Percentage of total | 40.00% | 37.00% |
Investments - Available-for Sal
Investments - Available-for Sale Securities in Continuous Unrealized Loss Position (Details) - RiverSource Life $ in Millions | Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($)item |
Number of Securities | ||
Less than 12 months | item | 252 | 56 |
12 months or more | item | 25 | 25 |
Total | item | 277 | 81 |
Fair Value | ||
Less than 12 months | $ 4,138 | $ 526 |
12 months or more | 99 | 134 |
Total | 4,237 | 660 |
Unrealized Losses | ||
Less than 12 months | (72) | (5) |
12 months or more | (6) | (5) |
Total | $ (78) | $ (10) |
Available -for-Sale Securities with gross unrealized losses considered investment grade (as a percent) | 92.00% | 83.00% |
Corporate debt securities | ||
Number of Securities | ||
Less than 12 months | item | 102 | 26 |
12 months or more | item | 14 | 1 |
Total | item | 116 | 27 |
Fair Value | ||
Less than 12 months | $ 2,007 | $ 228 |
12 months or more | 81 | 12 |
Total | 2,088 | 240 |
Unrealized Losses | ||
Less than 12 months | (42) | (1) |
12 months or more | (5) | (1) |
Total | $ (47) | $ (2) |
Residential mortgage backed securities | ||
Number of Securities | ||
Less than 12 months | item | 55 | 11 |
12 months or more | item | 2 | 7 |
Total | item | 57 | 18 |
Fair Value | ||
Less than 12 months | $ 1,162 | $ 47 |
12 months or more | 1 | 14 |
Total | 1,163 | 61 |
Unrealized Losses | ||
Less than 12 months | (12) | (1) |
Total | $ (12) | $ (1) |
Commercial mortgage backed securities | ||
Number of Securities | ||
Less than 12 months | item | 60 | 12 |
12 months or more | item | 3 | 7 |
Total | item | 63 | 19 |
Fair Value | ||
Less than 12 months | $ 809 | $ 179 |
12 months or more | 13 | 60 |
Total | 822 | 239 |
Unrealized Losses | ||
Less than 12 months | (15) | (3) |
12 months or more | (1) | |
Total | $ (15) | $ (4) |
State and municipal obligations | ||
Number of Securities | ||
Less than 12 months | item | 25 | 2 |
12 months or more | item | 1 | |
Total | item | 25 | 3 |
Fair Value | ||
Less than 12 months | $ 63 | $ 4 |
12 months or more | 4 | |
Total | 63 | 8 |
Unrealized Losses | ||
Less than 12 months | (1) | |
12 months or more | (1) | |
Total | $ (1) | $ (1) |
Asset backed securities | ||
Number of Securities | ||
Less than 12 months | item | 5 | 4 |
12 months or more | item | 2 | |
Total | item | 5 | 6 |
Fair Value | ||
Less than 12 months | $ 91 | $ 65 |
12 months or more | 36 | |
Total | 91 | 101 |
Unrealized Losses | ||
Less than 12 months | (2) | |
12 months or more | (1) | |
Total | $ (2) | $ (1) |
Foreign government bonds and obligations | ||
Number of Securities | ||
Less than 12 months | item | 5 | 1 |
12 months or more | item | 6 | 7 |
Total | item | 11 | 8 |
Fair Value | ||
Less than 12 months | $ 6 | $ 3 |
12 months or more | 4 | 8 |
Total | 10 | 11 |
Unrealized Losses | ||
12 months or more | (1) | (1) |
Total | $ (1) | $ (1) |
Investments - Rollforward of Al
Investments - Rollforward of Allowance for Credit Losses (Details) - RiverSource Life - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Rollforward of available-for-Sale securities allowance for credit losses | |||
Beginning balance | $ 10 | ||
Additions for which credit losses were not previously recognized | 1 | ||
Charge-offs | (10) | ||
Ending balance | 1 | $ 10 | |
Corporate debt securities | |||
Rollforward of available-for-Sale securities allowance for credit losses | |||
Beginning balance | 10 | 0 | [1] |
Additions for which credit losses were not previously recognized | 13 | ||
Additional increases (decreases) on securities that had an allowance recorded in a previous period | (3) | ||
Charge-offs | (10) | ||
Ending balance | 0 | 10 | |
State and municipal obligations | |||
Rollforward of available-for-Sale securities allowance for credit losses | |||
Beginning balance | 0 | ||
Additions for which credit losses were not previously recognized | 1 | ||
Ending balance | $ 1 | $ 0 | |
[1] | Prior to January 1, 2020, credit losses on Available-for-Sale securities were not recorded in an allowance but were recorded as a reduction of the book value of the security if the security was other-than-temporarily impaired. |
Investments - Net Realized Gain
Investments - Net Realized Gains and Losses on Available-for-Sale Securities (Details) - RiverSource Life - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net realized gains and losses on Available-for-Sale securities | |||
Gross realized investment gains | $ 576 | $ 17 | $ 29 |
Gross realized investment losses | (6) | (2) | (14) |
Credit losses | (1) | (10) | (17) |
Other impairments | (13) | ||
Total | $ 556 | $ 5 | $ (2) |
Investments - Available-for-S_2
Investments - Available-for-Sale Securities by Contractual Maturity (Details) - RiverSource Life - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due within one year | $ 470 | |
Due after one year through five years | 1,878 | |
Due after five years through 10 years | 3,283 | |
Due after 10 years | 3,729 | |
Total having single maturity dates | 9,360 | |
Amortized Cost | 14,718 | $ 20,260 |
Fair Value | ||
Due within one year | 476 | |
Due after one year through five years | 1,981 | |
Due after five years through 10 years | 3,359 | |
Due after 10 years | 4,980 | |
Total having single maturity dates | 10,796 | |
Fair value | 16,239 | 22,855 |
Residential mortgage backed securities | ||
Amortized Cost | ||
Without single maturity dates | 2,226 | |
Amortized Cost | 2,226 | 2,888 |
Fair Value | ||
Without single maturity dates | 2,250 | |
Fair value | 2,250 | 3,002 |
Commercial mortgage backed securities | ||
Amortized Cost | ||
Without single maturity dates | 2,615 | |
Amortized Cost | 2,615 | 3,935 |
Fair Value | ||
Without single maturity dates | 2,656 | |
Fair value | 2,656 | 4,166 |
Asset backed securities | ||
Amortized Cost | ||
Without single maturity dates | 517 | |
Amortized Cost | 517 | 1,168 |
Fair Value | ||
Without single maturity dates | 537 | |
Fair value | $ 537 | $ 1,212 |
Investments - Summary of Net In
Investments - Summary of Net Investment Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net investment income | |||
Fixed maturities | $ 643 | $ 777 | $ 848 |
Mortgage loans | 102 | 115 | 119 |
Other investments | 101 | (3) | (26) |
Gross investment income | 846 | 889 | 941 |
Less: investment expenses | 19 | 20 | 24 |
Total | $ 827 | $ 869 | $ 917 |
Investments - Net Realized Inve
Investments - Net Realized Investment Gains (Losses) Summary (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net realized investment gains (losses) summary | |||
Net realized investment gains (losses) | $ 595 | $ (10) | $ (2) |
Fixed maturities | |||
Net realized investment gains (losses) summary | |||
Net realized investment gains (losses) | 556 | 5 | $ (2) |
Mortgage loans | |||
Net realized investment gains (losses) summary | |||
Net realized investment gains (losses) | 57 | (10) | |
Other investments | |||
Net realized investment gains (losses) summary | |||
Net realized investment gains (losses) | $ (18) | $ (5) |
Financing Receivables - Allowan
Financing Receivables - Allowance for Credit Losses (Details) - Commercial Loans - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Rollforward of allowance for credit losses | |||||
Beginning balance | $ 35 | $ 20 | [1] | ||
Provisions | (23) | 12 | |||
Ending balance | 12 | 35 | $ 20 | [1] | |
Rollforward of allowance for credit losses, incurred loss model | |||||
Beginning balance | 20 | 20 | |||
Charge-offs | 0 | ||||
Ending balance | 20 | ||||
Accrued investment income | |||||
Financing receivables | |||||
Accrued interest on loans | $ 11 | 14 | |||
Cumulative Effect, Period of Adoption, Adjustment | |||||
Rollforward of allowance for credit losses | |||||
Beginning balance | 3 | ||||
Ending balance | 3 | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance | |||||
Rollforward of allowance for credit losses | |||||
Beginning balance | $ 23 | ||||
Ending balance | $ 23 | ||||
[1] | Prior to January 1, 2020, the allowance for credit losses was based on an incurred loss model that did not require estimating expected credit losses over the expected life of the asset. |
Financing Receivables - Purchas
Financing Receivables - Purchases, Sales and Nonperforming (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Nonperforming | |||
Financing Receivables | |||
Loans | $ 0 | $ 7 | |
Deteriorated credit quality | |||
Financing Receivables | |||
Loans purchased | 0 | ||
Commercial Loans | Commercial mortgage loans | |||
Financing Receivables | |||
Loans sold | 746 | ||
Loans | 1,800 | 2,602 | |
Commercial Loans | Syndicated loans | |||
Financing Receivables | |||
Loans purchased | 26 | 140 | $ 121 |
Loans sold | 340 | 13 | $ 43 |
Loans | $ 43 | $ 446 |
Financing Receivables - General
Financing Receivables - General Credit Quality Information - Commercial Mortgage Loans (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | |
Commercial Loans | Commercial mortgage loans | ||
Financing Receivables | ||
Loans | $ | $ 1,800 | $ 2,602 |
Commercial Loans | Commercial mortgage loans | Past due | ||
Financing Receivables | ||
Loans | $ | $ 0 | $ 0 |
Commercial Loans | Commercial mortgage loans | COVID 19 loan modifications | ||
Financing Receivables | ||
Total number of loan modifications | loan | 88 | |
Total unpaid principal balance of loan modifications | $ | $ 360 | |
Number of loan modifications | loan | 0 | |
Number of modified loans remaining | loan | 0 | |
Total commercial mortgage loans | Credit concentration risk | Commercial Loans | Commercial mortgage loans | ||
Financing Receivables | ||
Percentage of total | 100.00% | 100.00% |
Total commercial mortgage loans | Credit concentration risk | Highest credit risk rating | Maximum | ||
Financing Receivables | ||
Percentage of total | 1.00% | 1.00% |
Financing Receivables - Credit
Financing Receivables - Credit Quality - Commercial Mortgage Loans by LTV Ratio and Year of Origination (Details) - Commercial Loans - Commercial mortgage loans - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated in current fiscal year | $ 193 | $ 127 |
Originated in Fiscal Year before Latest Fiscal Year | 116 | 240 |
Originated Two Years before Latest Fiscal Year | 209 | 181 |
Originated Three Years before Latest Fiscal Year | 101 | 267 |
Originated Four Years before Latest Fiscal Year | 154 | 222 |
Originated Five or More Years before Latest Fiscal Year | 1,027 | 1,565 |
Total amortized cost basis | 1,800 | 2,602 |
Greater than 100 Percent | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated Two Years before Latest Fiscal Year | 20 | 2 |
Originated Three Years before Latest Fiscal Year | 10 | |
Originated Five or More Years before Latest Fiscal Year | 29 | 10 |
Total amortized cost basis | 59 | 12 |
80 to 100 Percent | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated in current fiscal year | 9 | 15 |
Originated in Fiscal Year before Latest Fiscal Year | 2 | 16 |
Originated Two Years before Latest Fiscal Year | 9 | 9 |
Originated Three Years before Latest Fiscal Year | 2 | 3 |
Originated Four Years before Latest Fiscal Year | 7 | |
Originated Five or More Years before Latest Fiscal Year | 29 | 15 |
Total amortized cost basis | 51 | 65 |
60 to 80 Percent | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated in current fiscal year | 141 | 85 |
Originated in Fiscal Year before Latest Fiscal Year | 76 | 152 |
Originated Two Years before Latest Fiscal Year | 59 | 27 |
Originated Three Years before Latest Fiscal Year | 15 | 29 |
Originated Four Years before Latest Fiscal Year | 58 | 46 |
Originated Five or More Years before Latest Fiscal Year | 133 | 141 |
Total amortized cost basis | 482 | 480 |
40 to 60 Percent | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated in current fiscal year | 37 | 20 |
Originated in Fiscal Year before Latest Fiscal Year | 30 | 50 |
Originated Two Years before Latest Fiscal Year | 75 | 74 |
Originated Three Years before Latest Fiscal Year | 74 | 147 |
Originated Four Years before Latest Fiscal Year | 49 | 111 |
Originated Five or More Years before Latest Fiscal Year | 393 | 543 |
Total amortized cost basis | 658 | 945 |
Less than 40 Percent | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated in current fiscal year | 6 | 7 |
Originated in Fiscal Year before Latest Fiscal Year | 8 | 22 |
Originated Two Years before Latest Fiscal Year | 46 | 69 |
Originated Three Years before Latest Fiscal Year | 88 | |
Originated Four Years before Latest Fiscal Year | 47 | 58 |
Originated Five or More Years before Latest Fiscal Year | 443 | 856 |
Total amortized cost basis | $ 550 | $ 1,100 |
Financing Receivables - Credi_2
Financing Receivables - Credit Quality - Commercial Mortgage Loans by Region (Details) - Commercial Loans - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | [1] | |
Financing receivables - credit quality information | ||||
Allowance for credit losses | $ 12 | $ 35 | $ 20 | |
Commercial mortgage loans | ||||
Financing receivables - credit quality information | ||||
Loans | 1,800 | 2,602 | ||
Allowance for credit losses | 12 | 28 | ||
Total loans | 1,788 | 2,574 | ||
Commercial mortgage loans | East North Central | ||||
Financing receivables - credit quality information | ||||
Loans | 183 | 250 | ||
Commercial mortgage loans | East South Central | ||||
Financing receivables - credit quality information | ||||
Loans | 54 | 111 | ||
Commercial mortgage loans | Middle Atlantic | ||||
Financing receivables - credit quality information | ||||
Loans | 107 | 165 | ||
Commercial mortgage loans | Mountain | ||||
Financing receivables - credit quality information | ||||
Loans | 111 | 234 | ||
Commercial mortgage loans | New England | ||||
Financing receivables - credit quality information | ||||
Loans | 21 | 47 | ||
Commercial mortgage loans | Pacific | ||||
Financing receivables - credit quality information | ||||
Loans | 589 | 784 | ||
Commercial mortgage loans | South Atlantic | ||||
Financing receivables - credit quality information | ||||
Loans | 477 | 663 | ||
Commercial mortgage loans | West North Central | ||||
Financing receivables - credit quality information | ||||
Loans | 136 | 192 | ||
Commercial mortgage loans | West South Central | ||||
Financing receivables - credit quality information | ||||
Loans | $ 122 | $ 156 | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 100.00% | 100.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | East North Central | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 10.00% | 10.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | East South Central | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 3.00% | 4.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Middle Atlantic | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 6.00% | 6.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Mountain | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 6.00% | 10.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | New England | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 1.00% | 2.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Pacific | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 33.00% | 30.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | South Atlantic | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 26.00% | 25.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | West North Central | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 8.00% | 7.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | West South Central | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 7.00% | 6.00% | ||
[1] | Prior to January 1, 2020, the allowance for credit losses was based on an incurred loss model that did not require estimating expected credit losses over the expected life of the asset. |
Financing Receivables - Credi_3
Financing Receivables - Credit Quality - Commercial Mortgage Loans by Property Type (Details) - Commercial Loans - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | [1] | |
Financing receivables - credit quality information | ||||
Allowance for credit losses | $ 12 | $ 35 | $ 20 | |
Commercial mortgage loans | ||||
Financing receivables - credit quality information | ||||
Loans | 1,800 | 2,602 | ||
Allowance for credit losses | 12 | 28 | ||
Total loans | 1,788 | 2,574 | ||
Commercial mortgage loans | Apartments | ||||
Financing receivables - credit quality information | ||||
Loans | 464 | 680 | ||
Commercial mortgage loans | Hotel | ||||
Financing receivables - credit quality information | ||||
Loans | 15 | 49 | ||
Commercial mortgage loans | Industrial | ||||
Financing receivables - credit quality information | ||||
Loans | 293 | 401 | ||
Commercial mortgage loans | Mixed use | ||||
Financing receivables - credit quality information | ||||
Loans | 57 | 76 | ||
Commercial mortgage loans | Office | ||||
Financing receivables - credit quality information | ||||
Loans | 254 | 358 | ||
Commercial mortgage loans | Retail | ||||
Financing receivables - credit quality information | ||||
Loans | 589 | 843 | ||
Commercial mortgage loans | Other | ||||
Financing receivables - credit quality information | ||||
Loans | $ 128 | $ 195 | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 100.00% | 100.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Apartments | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 26.00% | 26.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Hotel | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 1.00% | 2.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Industrial | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 16.00% | 16.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Mixed use | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 3.00% | 3.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Office | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 14.00% | 14.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Retail | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 33.00% | 32.00% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Other | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 7.00% | 7.00% | ||
[1] | Prior to January 1, 2020, the allowance for credit losses was based on an incurred loss model that did not require estimating expected credit losses over the expected life of the asset. |
Financing Receivables - Credi_4
Financing Receivables - Credit Quality Information - Syndicated Loans (Details) - Commercial Loans - Syndicated loans - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Financing receivables - credit quality information | ||
Recorded investment | $ 43 | $ 446 |
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated in current fiscal year | 15 | 37 |
Originated in Fiscal Year before Latest Fiscal Year | 74 | |
Originated Two Years before Latest Fiscal Year | 4 | 89 |
Originated Three Years before Latest Fiscal Year | 4 | 120 |
Originated Four Years before Latest Fiscal Year | 11 | 37 |
Originated Five or More Years before Latest Fiscal Year | 9 | 89 |
Total amortized cost basis | 43 | 446 |
Risk 5 | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated Five or More Years before Latest Fiscal Year | 2 | |
Total amortized cost basis | 2 | |
Risk 4 | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated Two Years before Latest Fiscal Year | 3 | |
Originated Three Years before Latest Fiscal Year | 7 | |
Originated Five or More Years before Latest Fiscal Year | 7 | |
Total amortized cost basis | 17 | |
Risk 3 | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated in Fiscal Year before Latest Fiscal Year | 7 | |
Originated Two Years before Latest Fiscal Year | 6 | |
Originated Three Years before Latest Fiscal Year | 19 | |
Originated Four Years before Latest Fiscal Year | 10 | |
Originated Five or More Years before Latest Fiscal Year | 1 | 18 |
Total amortized cost basis | 1 | 60 |
Risk 2 | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated in current fiscal year | 11 | 23 |
Originated in Fiscal Year before Latest Fiscal Year | 42 | |
Originated Two Years before Latest Fiscal Year | 4 | 45 |
Originated Three Years before Latest Fiscal Year | 1 | 51 |
Originated Four Years before Latest Fiscal Year | 8 | 10 |
Originated Five or More Years before Latest Fiscal Year | 4 | 32 |
Total amortized cost basis | 28 | 203 |
Risk 1 | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated in current fiscal year | 4 | 14 |
Originated in Fiscal Year before Latest Fiscal Year | 25 | |
Originated Two Years before Latest Fiscal Year | 35 | |
Originated Three Years before Latest Fiscal Year | 3 | 43 |
Originated Four Years before Latest Fiscal Year | 3 | 17 |
Originated Five or More Years before Latest Fiscal Year | 4 | 30 |
Total amortized cost basis | 14 | 164 |
Past due | ||
Financing receivables - credit quality information | ||
Recorded investment | $ 0 | $ 2 |
Financing Receivables -Credit Q
Financing Receivables -Credit Quality Information - Policy Loans and Deposit Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Receivable | ||
Reinsurance deposit receivable | $ 7,900 | $ 1,400 |
Deposit Receivable | ||
Receivable | ||
Allowance for credit losses | 0 | 0 |
Consumer | Policy Loans | ||
Financing Receivables | ||
Allowance for credit losses | $ 0 | $ 0 |
Financing Receivables - Trouble
Financing Receivables - Troubled Debt Restructurings (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)loan | Dec. 31, 2020loan | Dec. 31, 2019loan | |
Troubled Debt Restructurings | |||
Loans accounted for as troubled debt restructuring | loan | 0 | 0 | 0 |
Commitments to lend additional funds to borrowers whose loans have been restructured | $ | $ 0 |
Deferred Acquisition Costs an_3
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Balances of and changes in DAC | |||
Beginning balance | $ 2,508 | $ 2,673 | $ 2,742 |
Capitalization of acquisition costs | 267 | 216 | 239 |
Amortization | (172) | (164) | (119) |
Amortization, impact of valuation assumptions review | 60 | (100) | (14) |
Impact of change in net unrealized (gains) losses on securities | 94 | (117) | (175) |
Ending balance | 2,757 | 2,508 | 2,673 |
Balances of and changes in DSIC | |||
Beginning balance | 187 | 216 | 249 |
Capitalization of sales inducement costs | 1 | 1 | 1 |
Amortization | (16) | (13) | (15) |
Amortization, impact of valuation assumptions review | 2 | (16) | 0 |
Impact of change in net unrealized (gains) losses on securities | 13 | (1) | (19) |
Ending balance | $ 187 | $ 187 | $ 216 |
Reinsurance - Products and Risk
Reinsurance - Products and Risks Reinsured (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 132 Months Ended | 144 Months Ended |
Sep. 30, 2021 | Dec. 31, 2021 | Jan. 01, 2014 | Jan. 01, 2014 | |
Term life insurance policies | ||||
Reinsured risk | ||||
Percentage of risk reinsured | 90.00% | |||
Universal life insurance policies | ||||
Reinsured risk | ||||
Percentage of risk reinsured | 90.00% | |||
Indexed universal life policies | ||||
Reinsured risk | ||||
Percentage of risk reinsured | 50.00% | |||
Variable universal life insurance policies | ||||
Reinsured risk | ||||
Percentage of risk reinsured | 50.00% | |||
Universal life product with long-term care benefits | ||||
Reinsured risk | ||||
Percentage of risk reinsured | 50.00% | |||
Single life insurance policy | ||||
Reinsured risk | ||||
Maximum amount of life insurance risk retained by the entity | $ 1,500,000 | |||
Single life insurance policy | Maximum | ||||
Reinsured risk | ||||
Maximum amount of life insurance risk retained by the entity | 10,000,000 | |||
Flexible premium survivorship life policy | ||||
Reinsured risk | ||||
Maximum amount of life insurance risk retained by the entity | 1,500,000 | |||
Flexible premium survivorship life policy | Maximum | ||||
Reinsured risk | ||||
Maximum amount of life insurance risk retained by the entity | $ 10,000,000 | |||
Long term care insurance | ||||
Reinsured risk | ||||
Percentage of risk reinsured | 50.00% | |||
Disability income policies | ||||
Reinsured risk | ||||
Maximum amount of life insurance risk retained by the entity | $ 5,000 | |||
RiverSource Life Insurance Company | Fixed annuity life contingent liabilities | ||||
Reinsured risk | ||||
Percentage of risk reinsured | 100.00% | |||
RiverSource Life Insurance Company | Variable universal life insurance policies | ||||
Reinsured risk | ||||
Percentage of risk reinsured | 90.00% | |||
Subsidiary | RiverSource Life of NY | Variable universal life insurance policies | ||||
Reinsured risk | ||||
Percentage of risk reinsured | 90.00% |
Reinsurance - Effect of Reinsur
Reinsurance - Effect of Reinsurance - Traditional Long Duration Contracts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earned premiums | |||
Net premiums | $ (871) | $ 341 | $ 397 |
Traditional and universal life insurance policies | |||
Life insurance policies In force | |||
Insurance policies in force, gross | 198,600 | 195,700 | |
Insurance policies in force, reinsured | 145,100 | 143,600 | |
Traditional long-duration contracts | |||
Earned premiums | |||
Direct premiums | 490 | 565 | 621 |
Reinsurance ceded | (1,361) | (224) | (224) |
Net premiums | $ (871) | $ 341 | $ 397 |
Reinsurance - Non-Traditional L
Reinsurance - Non-Traditional Long-Duration Contracts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Non-traditional long-duration products | |||
Reinsurance | |||
Reinsurance ceded | $ 152 | $ 140 | $ 132 |
Reinsurance - Recoverables and
Reinsurance - Recoverables and Claims (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reinsurance | |||
Claims recovered through reinsurance | $ 404 | $ 400 | $ 377 |
Liability for assumed reinsurance arrangements | 413 | 440 | |
Long term care insurance | |||
Reinsurance | |||
Reinsurance recoverable related to LTC risk ceded to Genworth | $ 2,600 | $ 2,600 |
Policyholder Account Balances_3
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities - Balances by Product (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Policyholder account balances, future policy benefits and claims components | |||
Policyholder account balances | $ 23,747 | $ 21,002 | |
Future policy benefits | 11,752 | 12,799 | |
Policy claims and other policyholders’ funds | 245 | 185 | |
Total policyholder account balances, future policy benefits and claims | 35,744 | 33,986 | |
Fixed annuities | |||
Policyholder account balances, future policy benefits and claims components | |||
Policyholder account balances | [1] | 8,117 | 8,531 |
Variable annuity | GMWB | |||
Policyholder account balances, future policy benefits and claims components | |||
Future policy benefits | 2,336 | 3,049 | |
Variable annuity | GMAB | |||
Policyholder account balances, future policy benefits and claims components | |||
Future policy benefits | [2] | (23) | 1 |
Variable annuity fixed sub-accounts | |||
Policyholder account balances, future policy benefits and claims components | |||
Policyholder account balances | 4,990 | 5,104 | |
UL/VUL insurance | |||
Policyholder account balances, future policy benefits and claims components | |||
Policyholder account balances | 3,103 | 3,122 | |
IUL insurance | |||
Policyholder account balances, future policy benefits and claims components | |||
Policyholder account balances | 2,534 | 2,269 | |
Structured variable annuities | |||
Policyholder account balances, future policy benefits and claims components | |||
Policyholder account balances | 4,440 | 1,371 | |
Other life insurance | |||
Policyholder account balances, future policy benefits and claims components | |||
Policyholder account balances | 563 | 605 | |
Other annuity liabilities | |||
Policyholder account balances, future policy benefits and claims components | |||
Future policy benefits | 67 | 211 | |
Fixed annuity life contingent liabilities | |||
Policyholder account balances, future policy benefits and claims components | |||
Future policy benefits | 1,278 | 1,370 | |
Life and disability income insurance | |||
Policyholder account balances, future policy benefits and claims components | |||
Future policy benefits | 1,139 | 1,187 | |
Long term care insurance | |||
Policyholder account balances, future policy benefits and claims components | |||
Future policy benefits | 5,664 | 5,722 | |
UL/VUL and other life insurance additional liabilities | |||
Policyholder account balances, future policy benefits and claims components | |||
Future policy benefits | $ 1,291 | $ 1,259 | |
[1] | Includes fixed deferred annuities, non-life contingent fixed payout annuities and fixed deferred indexed annuity host contracts. | ||
[2] | Includes the fair value of GMAB embedded derivatives that was a net asset as of December 31, 2021 reported as a contra liability. |
Policyholder Account Balances_4
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities - Additional Product Information (Details) | 12 Months Ended |
Dec. 31, 2021item | |
Fixed annuities | |
Policyholder account balances, future policy benefits and claims | |
Number of crediting durations offered for indexed account | 2 |
EIA | |
Policyholder account balances, future policy benefits and claims | |
Contract initial term | 7 years |
Minimum interest rate guarantee | 3.00% |
Percentage of initial premium receiving interest guarantee | 90.00% |
IUL insurance | |
Policyholder account balances, future policy benefits and claims | |
Number of crediting durations offered for indexed account | 2 |
Disability income | |
Policyholder account balances, future policy benefits and claims | |
Unpaid reported claims discount rate (as a percent) | 4.50% |
Long term care insurance | |
Policyholder account balances, future policy benefits and claims | |
Unpaid reported claims discount rate (as a percent) | 5.95% |
Minimum | |
Policyholder account balances, future policy benefits and claims | |
Fixed annuities liabilities interest rates | 2.23% |
Minimum | Fixed annuities | |
Policyholder account balances, future policy benefits and claims | |
Indexed account interest crediting period | 1 year |
Minimum | IUL insurance | |
Policyholder account balances, future policy benefits and claims | |
Indexed account interest crediting period | 1 year |
Minimum | Term and whole life insurance | |
Policyholder account balances, future policy benefits and claims | |
Anticipated interest rate for future claims | 2.25% |
Minimum | Disability income | |
Policyholder account balances, future policy benefits and claims | |
Anticipated interest rate for future claims | 3.00% |
Minimum | Long term care insurance | |
Policyholder account balances, future policy benefits and claims | |
Anticipated interest rate for future claims | 5.00% |
Maximum | |
Policyholder account balances, future policy benefits and claims | |
Fixed annuities liabilities interest rates | 9.38% |
Maximum | Fixed annuities | |
Policyholder account balances, future policy benefits and claims | |
Indexed account interest crediting period | 2 years |
Maximum | IUL insurance | |
Policyholder account balances, future policy benefits and claims | |
Indexed account interest crediting period | 2 years |
Maximum | Term and whole life insurance | |
Policyholder account balances, future policy benefits and claims | |
Anticipated interest rate for future claims | 10.00% |
Maximum | Disability income | |
Policyholder account balances, future policy benefits and claims | |
Anticipated interest rate for future claims | 7.50% |
Maximum | Long term care insurance | |
Policyholder account balances, future policy benefits and claims | |
Anticipated interest rate for future claims | 5.70% |
Average | |
Policyholder account balances, future policy benefits and claims | |
Fixed annuities liabilities interest rates | 3.60% |
Policyholder Account Balances_5
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Separate Account Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Separate accounts liabilities | ||
Variable annuity | $ 82,862 | $ 79,299 |
VUL insurance | 9,343 | 8,226 |
Other insurance | 33 | 31 |
Total | $ 92,238 | $ 87,556 |
Variable Annuity and Insuranc_3
Variable Annuity and Insurance Guarantees - General Information (Details) - GMAB | 12 Months Ended |
Dec. 31, 2021 | |
Insurance guarantees | |
Maximum age of variable annuity contractholders | 79 years |
GMAB rider guarantees waiting period | 10 years |
Variable Annuity and Insuranc_4
Variable Annuity and Insurance Guarantees - VA Guarantees (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
GMDB | |||
Information related to variable annuity guarantees | |||
Total contract value | [1] | $ 87,246 | $ 83,781 |
Contract value in separate accounts | [1] | 82,287 | 78,705 |
Net amount at risk | [1] | $ 64 | $ 64 |
Weighted average attained age | [1] | 69 years | 68 years |
GMDB | Return of premium | |||
Information related to variable annuity guarantees | |||
Total contract value | [1] | $ 70,020 | $ 66,874 |
Contract value in separate accounts | [1] | 68,145 | 64,932 |
Net amount at risk | [1] | $ 6 | $ 5 |
Weighted average attained age | [1] | 69 years | 68 years |
GMDB | Five/six year reset | |||
Information related to variable annuity guarantees | |||
Total contract value | [1] | $ 8,309 | $ 8,116 |
Contract value in separate accounts | [1] | 5,612 | 5,386 |
Net amount at risk | [1] | $ 6 | $ 6 |
Weighted average attained age | [1] | 68 years | 68 years |
GMDB | One-year ratchet | |||
Information related to variable annuity guarantees | |||
Total contract value | [1] | $ 6,177 | $ 6,094 |
Contract value in separate accounts | [1] | 5,858 | 5,763 |
Net amount at risk | [1] | $ 13 | $ 8 |
Weighted average attained age | [1] | 71 years | 71 years |
GMDB | Five-year ratchet | |||
Information related to variable annuity guarantees | |||
Total contract value | [1] | $ 1,438 | $ 1,436 |
Contract value in separate accounts | [1] | 1,386 | $ 1,381 |
Net amount at risk | [1] | $ 1 | |
Weighted average attained age | [1] | 68 years | 67 years |
GMDB | Other | |||
Information related to variable annuity guarantees | |||
Total contract value | [1] | $ 1,302 | $ 1,261 |
Contract value in separate accounts | [1] | 1,286 | 1,243 |
Net amount at risk | [1] | $ 38 | $ 45 |
Weighted average attained age | [1] | 74 years | 73 years |
GGU death benefit | |||
Information related to variable annuity guarantees | |||
Total contract value | [1] | $ 1,260 | $ 1,183 |
Contract value in separate accounts | [1] | 1,198 | 1,126 |
Net amount at risk | [1] | $ 184 | $ 162 |
Weighted average attained age | [1] | 72 years | 71 years |
GMIB | |||
Information related to variable annuity guarantees | |||
Total contract value | [1] | $ 184 | $ 187 |
Contract value in separate accounts | [1] | 170 | 173 |
Net amount at risk | [1] | $ 4 | $ 6 |
Weighted average attained age | [1] | 71 years | 71 years |
GMWB | |||
Information related to variable annuity guarantees | |||
Total contract value | [1] | $ 54,287 | $ 52,114 |
Contract value in separate accounts | [1] | 54,229 | 52,024 |
Net amount at risk | [1] | $ 188 | $ 186 |
Weighted average attained age | [1] | 69 years | 69 years |
GMWB | GMWB standard benefit | |||
Information related to variable annuity guarantees | |||
Total contract value | [1] | $ 1,900 | $ 1,972 |
Contract value in separate accounts | [1] | 1,895 | 1,967 |
Net amount at risk | [1] | $ 1 | $ 1 |
Weighted average attained age | [1] | 75 years | 74 years |
GMWB | GMWB for life | |||
Information related to variable annuity guarantees | |||
Total contract value | [1] | $ 52,387 | $ 50,142 |
Contract value in separate accounts | [1] | 52,334 | 50,057 |
Net amount at risk | [1] | $ 187 | $ 185 |
Weighted average attained age | [1] | 69 years | 69 years |
GMAB | |||
Information related to variable annuity guarantees | |||
Total contract value | [1] | $ 2,005 | $ 2,291 |
Contract value in separate accounts | [1] | $ 2,005 | $ 2,291 |
Weighted average attained age | [1] | 62 years | 61 years |
[1] | Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table. |
Variable Annuity and Insuranc_5
Variable Annuity and Insurance Guarantees - UL Secondary Guarantees (Details) - UL secondary guarantees - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Insurance guarantees | ||
Net amount at risk | $ 6,564 | $ 6,587 |
Weighted average attained age | 68 years | 67 years |
Variable Annuity and Insuranc_6
Variable Annuity and Insurance Guarantees - Liability Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
GMDB and GGU | ||||
Changes in additional liabilities for variable annuity and insurance guarantees | ||||
Beginning Balance | $ 24 | $ 16 | $ 19 | |
Incurred claims | 17 | 15 | 2 | |
Paid claims | (5) | (7) | (5) | |
Ending Balance | 36 | 24 | 16 | |
GMIB | ||||
Changes in additional liabilities for variable annuity and insurance guarantees | ||||
Beginning Balance | 6 | 7 | 8 | |
Incurred claims | 0 | |||
Incurred claims | (1) | |||
Paid claims | (1) | (1) | ||
Ending Balance | 5 | 6 | 7 | |
GMWB | ||||
Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees | ||||
Beginning balance | 3,049 | 1,462 | 875 | |
Incurred claims | [1] | (713) | 1,587 | 587 |
Ending balance | 2,336 | 3,049 | 1,462 | |
GMAB | ||||
Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees | ||||
Beginning balance | 1 | (39) | (19) | |
Incurred claims | [1] | (24) | 40 | (20) |
Ending balance | (23) | 1 | (39) | |
UL | ||||
Changes in additional liabilities for variable annuity and insurance guarantees | ||||
Beginning Balance | 916 | 758 | 659 | |
Incurred claims | 140 | 209 | 141 | |
Paid claims | (36) | (51) | (42) | |
Ending Balance | $ 1,020 | $ 916 | $ 758 | |
[1] | The incurred claims for GMWB and GMAB include the change in the fair value of the liabilities (contra liabilities) less paid claims. |
Variable Annuity and Insuranc_7
Variable Annuity and Insurance Guarantees - Separate Account Balances by Type (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Mutual funds | ||
Variable Annuity and Insurance Guarantees | ||
Separate account balances | $ 82,497 | $ 78,931 |
Equity | ||
Variable Annuity and Insurance Guarantees | ||
Separate account balances | 49,183 | 45,947 |
Bond | ||
Variable Annuity and Insurance Guarantees | ||
Separate account balances | 24,998 | 26,073 |
Other | ||
Variable Annuity and Insurance Guarantees | ||
Separate account balances | $ 8,316 | $ 6,911 |
Debt - Short-term Borrowings (D
Debt - Short-term Borrowings (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Short-term borrowings | ||
Amount of FHLB liability | $ 200 | $ 200 |
RiverSource Life | ||
Short-term borrowings | ||
Amount of FHLB liability | $ 200 | $ 200 |
RiverSource Life | Weighted average | ||
Short-term borrowings | ||
Interest rate on FHLB borrowings (as a percent) | 0.30% | 0.40% |
RiverSource Life | Commercial mortgage backed securities | ||
Short-term borrowings | ||
Securities pledged as collateral for FHLB borrowings | $ 1,000 | $ 1,200 |
RiverSource Life | Federal Home Loan Bank borrowings | Maximum | ||
Short-term borrowings | ||
Term | 3 months | 3 months |
Debt - Lines of Credit (Details
Debt - Lines of Credit (Details) - Ameriprise Financial - Revolving line of credit borrowing arrangement - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
RiverSource Life Insurance Company | ||
Debt | ||
Outstanding borrowings, maximum percentage of statutory admitted assets | 3.00% | |
Prepayment penalty | $ 0 | |
Amounts outstanding | 0 | $ 0 |
Subsidiaries | RiverSource Life of NY | ||
Debt | ||
Maximum borrowing capacity | $ 25 | |
Outstanding borrowings, maximum percentage of statutory admitted assets | 3.00% | |
Prepayment penalty | $ 0 | |
Amounts outstanding | 0 | 0 |
Subsidiaries | RTA | ||
Debt | ||
Maximum borrowing capacity | 100 | |
Amounts outstanding | $ 0 | $ 0 |
Debt - Long-Term Debt (Details)
Debt - Long-Term Debt (Details) - Ameriprise Financial - Unsecured surplus note due December 31, 2050 - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt | ||
Long-term debt | $ 500 | $ 500 |
Interest rate (as a percent) | 3.50% |
Fair Values of Assets and Lia_3
Fair Values of Assets and Liabilities - Recurring Basis (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | ||||
Assets | |||||
Separate account assets at NAV | $ 92,238 | $ 87,556 | |||
GMWB and GMAB embedded derivatives | |||||
Assets | |||||
Receivables: embedded derivatives | 133 | 67 | |||
Liabilities | |||||
Liabilities embedded derivatives | 1,600 | 2,400 | |||
RiverSource Life | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 16,239 | 22,855 | |||
RiverSource Life | Corporate debt securities | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 9,638 | 12,873 | |||
RiverSource Life | Residential mortgage backed securities | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 2,250 | 3,002 | |||
RiverSource Life | Commercial mortgage backed securities | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 2,656 | 4,166 | |||
RiverSource Life | State and municipal obligations | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 1,074 | 1,344 | |||
RiverSource Life | Asset backed securities | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 537 | 1,212 | |||
RiverSource Life | Foreign government bonds and obligations | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 83 | 257 | |||
RiverSource Life | U.S. government and agency obligations | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 1 | 1 | |||
RiverSource Life | Policyholder account balances, future policy benefits and claims embedded derivatives | |||||
Liabilities | |||||
Cumulative increase (decrease) in embedded derivatives due to nonperformance | (598) | (727) | |||
RiverSource Life | Level 3 | Corporate debt securities | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 496 | 766 | |||
RiverSource Life | Level 3 | Asset backed securities | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 291 | 395 | |||
RiverSource Life | Level 3 | Fixed deferred indexed annuities ceded embedded derivatives | |||||
Assets | |||||
Receivables: embedded derivatives | 59 | ||||
RiverSource Life | Level 3 | Fixed deferred indexed annuity embedded derivatives | |||||
Liabilities | |||||
Liabilities embedded derivatives | 56 | 49 | |||
RiverSource Life | Level 3 | IUL embedded derivatives | |||||
Liabilities | |||||
Liabilities embedded derivatives | 905 | 935 | |||
RiverSource Life | Level 3 | GMWB and GMAB embedded derivatives | |||||
Liabilities | |||||
Liabilities embedded derivatives, net | 1,486 | 2,316 | |||
RiverSource Life | Level 3 | Structured variable annuity embedded derivatives | |||||
Liabilities | |||||
Liabilities embedded derivatives | 406 | 70 | |||
RiverSource Life | Recurring basis | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 16,239 | 22,855 | |||
Cash equivalents | 3,176 | 3,132 | |||
Other assets: derivative contracts | 5,517 | 5,758 | |||
Separate account assets at NAV | [1] | 92,238 | 87,556 | ||
Total assets at fair value | 117,229 | 119,301 | |||
Liabilities | |||||
Other liabilities: derivative contracts | 4,180 | 4,248 | |||
Total liabilities at fair value | 7,038 | 7,621 | |||
RiverSource Life | Recurring basis | Corporate debt securities | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 9,638 | 12,873 | |||
RiverSource Life | Recurring basis | Residential mortgage backed securities | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 2,250 | 3,002 | |||
RiverSource Life | Recurring basis | Commercial mortgage backed securities | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 2,656 | 4,166 | |||
RiverSource Life | Recurring basis | State and municipal obligations | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 1,074 | 1,344 | |||
RiverSource Life | Recurring basis | Asset backed securities | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 537 | 1,212 | |||
RiverSource Life | Recurring basis | Foreign government bonds and obligations | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 83 | 257 | |||
RiverSource Life | Recurring basis | U.S. government and agency obligations | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 1 | 1 | |||
RiverSource Life | Recurring basis | Fixed deferred indexed annuities ceded embedded derivatives | |||||
Assets | |||||
Receivables: embedded derivatives | 59 | ||||
RiverSource Life | Recurring basis | Policyholder account balances, future policy benefits and claims embedded derivatives | |||||
Liabilities | |||||
Liabilities embedded derivatives, net | 2,858 | [2] | 3,373 | [3] | |
RiverSource Life | Recurring basis | Fixed deferred indexed annuity embedded derivatives | |||||
Liabilities | |||||
Liabilities embedded derivatives | 61 | 52 | |||
RiverSource Life | Recurring basis | IUL embedded derivatives | |||||
Liabilities | |||||
Liabilities embedded derivatives | 905 | 935 | |||
RiverSource Life | Recurring basis | GMWB and GMAB embedded derivatives | |||||
Liabilities | |||||
Liabilities embedded derivatives, net | 1,486 | [4] | 2,316 | [5] | |
RiverSource Life | Recurring basis | Structured variable annuity embedded derivatives | |||||
Liabilities | |||||
Liabilities embedded derivatives | 406 | 70 | |||
RiverSource Life | Recurring basis | Interest rate derivative contracts | |||||
Assets | |||||
Other assets: derivative contracts | 1,252 | 1,755 | |||
Liabilities | |||||
Other liabilities: derivative contracts | 468 | 734 | |||
RiverSource Life | Recurring basis | Equity derivative contracts | |||||
Assets | |||||
Other assets: derivative contracts | 4,238 | 3,984 | |||
Liabilities | |||||
Other liabilities: derivative contracts | 3,711 | 3,511 | |||
RiverSource Life | Recurring basis | Foreign exchange derivative contracts | |||||
Assets | |||||
Other assets: derivative contracts | 18 | 18 | |||
Liabilities | |||||
Other liabilities: derivative contracts | 1 | 2 | |||
RiverSource Life | Recurring basis | Credit derivative contracts | |||||
Assets | |||||
Other assets: derivative contracts | 9 | 1 | |||
Liabilities | |||||
Other liabilities: derivative contracts | 1 | ||||
RiverSource Life | Recurring basis | Level 1 | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 1 | 1 | |||
Cash equivalents | 1,985 | 2,419 | |||
Other assets: derivative contracts | 160 | 408 | |||
Total assets at fair value | 2,146 | 2,828 | |||
Liabilities | |||||
Other liabilities: derivative contracts | 103 | 184 | |||
Total liabilities at fair value | 103 | 184 | |||
RiverSource Life | Recurring basis | Level 1 | U.S. government and agency obligations | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 1 | 1 | |||
RiverSource Life | Recurring basis | Level 1 | Interest rate derivative contracts | |||||
Assets | |||||
Other assets: derivative contracts | 1 | 1 | |||
Liabilities | |||||
Other liabilities: derivative contracts | 1 | ||||
RiverSource Life | Recurring basis | Level 1 | Equity derivative contracts | |||||
Assets | |||||
Other assets: derivative contracts | 158 | 406 | |||
Liabilities | |||||
Other liabilities: derivative contracts | 101 | 182 | |||
RiverSource Life | Recurring basis | Level 1 | Foreign exchange derivative contracts | |||||
Assets | |||||
Other assets: derivative contracts | 1 | 1 | |||
Liabilities | |||||
Other liabilities: derivative contracts | 1 | 2 | |||
RiverSource Life | Recurring basis | Level 2 | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 15,451 | 21,684 | |||
Cash equivalents | 1,191 | 713 | |||
Other assets: derivative contracts | 5,357 | 5,350 | |||
Total assets at fair value | 21,999 | 27,747 | |||
Liabilities | |||||
Other liabilities: derivative contracts | 4,077 | 4,064 | |||
Total liabilities at fair value | 4,082 | 4,067 | |||
RiverSource Life | Recurring basis | Level 2 | Corporate debt securities | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 9,142 | 12,107 | |||
RiverSource Life | Recurring basis | Level 2 | Residential mortgage backed securities | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 2,250 | 2,993 | |||
RiverSource Life | Recurring basis | Level 2 | Commercial mortgage backed securities | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 2,656 | 4,166 | |||
RiverSource Life | Recurring basis | Level 2 | State and municipal obligations | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 1,074 | 1,344 | |||
RiverSource Life | Recurring basis | Level 2 | Asset backed securities | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 246 | 817 | |||
RiverSource Life | Recurring basis | Level 2 | Foreign government bonds and obligations | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 83 | 257 | |||
RiverSource Life | Recurring basis | Level 2 | Policyholder account balances, future policy benefits and claims embedded derivatives | |||||
Liabilities | |||||
Liabilities embedded derivatives, net | 5 | 3 | |||
RiverSource Life | Recurring basis | Level 2 | Fixed deferred indexed annuity embedded derivatives | |||||
Liabilities | |||||
Liabilities embedded derivatives | 5 | 3 | |||
RiverSource Life | Recurring basis | Level 2 | Interest rate derivative contracts | |||||
Assets | |||||
Other assets: derivative contracts | 1,251 | 1,754 | |||
Liabilities | |||||
Other liabilities: derivative contracts | 467 | 734 | |||
RiverSource Life | Recurring basis | Level 2 | Equity derivative contracts | |||||
Assets | |||||
Other assets: derivative contracts | 4,080 | 3,578 | |||
Liabilities | |||||
Other liabilities: derivative contracts | 3,610 | 3,329 | |||
RiverSource Life | Recurring basis | Level 2 | Foreign exchange derivative contracts | |||||
Assets | |||||
Other assets: derivative contracts | 17 | 17 | |||
RiverSource Life | Recurring basis | Level 2 | Credit derivative contracts | |||||
Assets | |||||
Other assets: derivative contracts | 9 | 1 | |||
Liabilities | |||||
Other liabilities: derivative contracts | 1 | ||||
RiverSource Life | Recurring basis | Level 3 | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 787 | 1,170 | |||
Total assets at fair value | 846 | 1,170 | |||
Liabilities | |||||
Total liabilities at fair value | 2,853 | 3,370 | |||
RiverSource Life | Recurring basis | Level 3 | Corporate debt securities | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 496 | 766 | |||
RiverSource Life | Recurring basis | Level 3 | Residential mortgage backed securities | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 9 | ||||
RiverSource Life | Recurring basis | Level 3 | Asset backed securities | |||||
Assets | |||||
Available-for-Sale: Fixed maturities, at fair value | 291 | 395 | |||
RiverSource Life | Recurring basis | Level 3 | Fixed deferred indexed annuities ceded embedded derivatives | |||||
Assets | |||||
Receivables: embedded derivatives | 59 | ||||
RiverSource Life | Recurring basis | Level 3 | Policyholder account balances, future policy benefits and claims embedded derivatives | |||||
Liabilities | |||||
Liabilities embedded derivatives, net | 2,853 | 3,370 | |||
RiverSource Life | Recurring basis | Level 3 | Fixed deferred indexed annuity embedded derivatives | |||||
Liabilities | |||||
Liabilities embedded derivatives | 56 | 49 | |||
RiverSource Life | Recurring basis | Level 3 | IUL embedded derivatives | |||||
Liabilities | |||||
Liabilities embedded derivatives | 905 | 935 | |||
RiverSource Life | Recurring basis | Level 3 | GMWB and GMAB embedded derivatives | |||||
Liabilities | |||||
Liabilities embedded derivatives, net | 1,486 | 2,316 | |||
RiverSource Life | Recurring basis | Level 3 | Structured variable annuity embedded derivatives | |||||
Liabilities | |||||
Liabilities embedded derivatives | $ 406 | $ 70 | |||
[1] | Amounts are comprised of certain financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. | ||||
[2] | The Company’s adjustment for nonperformance risk resulted in a $598 million cumulative decrease to the embedded derivatives as of December 31, 2021. | ||||
[3] | The Company’s adjustment for nonperformance risk resulted in a $727 million cumulative decrease to the embedded derivatives as of December 31, 2020. | ||||
[4] | The fair value of the GMWB and GMAB embedded derivatives included $1.6 billion of individual contracts in a liability position and $133 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2021. | ||||
[5] | The fair value of the GMWB and GMAB embedded derivatives included $2.4 billion of individual contracts in a liability position and $67 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2020. |
Fair Values of Assets and Lia_4
Fair Values of Assets and Liabilities - Changes in Level 3 Assets (Details)) - RiverSource Life - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Available-for-Sale securities | ||||
Changes in Level 3 assets measured at fair value on a recurring basis | ||||
Balance, beginning | $ 1,170 | $ 1,141 | $ 1,309 | |
Total gains (losses) included in Net income | [1] | (1) | (1) | |
Total gains (losses) included in other comprehensive income (loss) | (11) | 14 | 35 | |
Purchases | 108 | 101 | 82 | |
Settlements | (200) | (52) | (223) | |
Transfers into Level 3 | 170 | 14 | 10 | |
Transfers out of Level 3 | (449) | (48) | (71) | |
Balance, ending | 787 | 1,170 | 1,141 | |
Changes in unrealized gains (losses) in net income relating to assets held at end of period | [1] | (1) | (1) | (1) |
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at end of period | (9) | 14 | ||
Corporate debt securities | ||||
Changes in Level 3 assets measured at fair value on a recurring basis | ||||
Balance, beginning | 766 | 735 | 871 | |
Total gains (losses) included in Net income | (1) | (1) | ||
Total gains (losses) included in other comprehensive income (loss) | (10) | 15 | 30 | |
Purchases | 108 | 62 | 55 | |
Settlements | (119) | (46) | (220) | |
Transfers into Level 3 | 168 | |||
Transfers out of Level 3 | (416) | |||
Balance, ending | 496 | 766 | 735 | |
Changes in unrealized gains (losses) in net income relating to assets held at end of period | (1) | (1) | (1) | |
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at end of period | (8) | 15 | ||
Residential mortgage backed securities | ||||
Changes in Level 3 assets measured at fair value on a recurring basis | ||||
Balance, beginning | 9 | 17 | 64 | |
Total gains (losses) included in other comprehensive income (loss) | 1 | |||
Purchases | 39 | 27 | ||
Settlements | (3) | |||
Transfers out of Level 3 | (9) | (48) | (71) | |
Balance, ending | 0 | 9 | 17 | |
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at end of period | 1 | |||
Asset backed securities | ||||
Changes in Level 3 assets measured at fair value on a recurring basis | ||||
Balance, beginning | 395 | 389 | 374 | |
Total gains (losses) included in other comprehensive income (loss) | (1) | (2) | 5 | |
Settlements | (81) | (6) | ||
Transfers into Level 3 | 2 | 14 | 10 | |
Transfers out of Level 3 | (24) | |||
Balance, ending | 291 | 395 | $ 389 | |
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at end of period | (1) | (2) | ||
Fixed deferred indexed annuities ceded embedded derivatives | ||||
Changes in Level 3 assets measured at fair value on a recurring basis | ||||
Balance, beginning | 0 | |||
Total gains (losses) included in Net income | 3 | |||
Issues | [2] | 57 | ||
Settlements | (1) | |||
Balance, ending | $ 59 | $ 0 | ||
[1] | Included in Net investment income. | |||
[2] | Represents the amount of ceded embedded derivatives associated with fixed deferred annuity products reinsured in the third quarter of 2021. See Note 1 for additional information on the reinsurance transaction. |
Fair Values of Assets and Lia_5
Fair Values of Assets and Liabilities - Changes in Level 3 Liabilities (Details) - RiverSource Life - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Changes in Level 3 liabilities measured at fair value on a recurring basis | ||||
Net increase (decrease) to pretax income from adjustment for nonperformance risk on fair value of embedded derivatives | $ (92) | $ 196 | $ (190) | |
Policyholder account balances, future policy benefits and claims embedded derivatives | ||||
Changes in Level 3 liabilities measured at fair value on a recurring basis | ||||
Balance, beginning | 3,370 | 1,687 | 970 | |
Total (gains) losses included in net income | (873) | 1,323 | 297 | |
Issues | 341 | 405 | 495 | |
Settlements | 15 | (45) | (75) | |
Balance, ending | 2,853 | 3,370 | 1,687 | |
Changes in unrealized (gains) losses in net income relating to liabilities held at the end of the period | (1,231) | 1,282 | 291 | |
Fixed deferred indexed annuity embedded derivatives | ||||
Changes in Level 3 liabilities measured at fair value on a recurring basis | ||||
Balance, beginning | 49 | 43 | 14 | |
Total (gains) losses included in net income | [1] | 10 | 4 | 8 |
Issues | 3 | 21 | ||
Settlements | (3) | (1) | ||
Balance, ending | 56 | 49 | 43 | |
IUL embedded derivatives | ||||
Changes in Level 3 liabilities measured at fair value on a recurring basis | ||||
Balance, beginning | 935 | 881 | 628 | |
Total (gains) losses included in net income | [1] | 68 | 76 | 209 |
Issues | 61 | 113 | ||
Settlements | (98) | (83) | (69) | |
Balance, ending | 905 | 935 | 881 | |
Changes in unrealized (gains) losses in net income relating to liabilities held at the end of the period | [1] | 68 | 76 | 209 |
GMWB and GMAB embedded derivatives | ||||
Changes in Level 3 liabilities measured at fair value on a recurring basis | ||||
Balance, beginning | 2,316 | 763 | 328 | |
Total (gains) losses included in net income | [2] | (1,344) | 1,152 | 80 |
Issues | 369 | 362 | 361 | |
Settlements | 145 | 39 | (6) | |
Balance, ending | 1,486 | 2,316 | 763 | |
Changes in unrealized (gains) losses in net income relating to liabilities held at the end of the period | [2] | (1,299) | 1,206 | 82 |
Structured variable annuity embedded derivatives | ||||
Changes in Level 3 liabilities measured at fair value on a recurring basis | ||||
Balance, beginning | 70 | 0 | ||
Total (gains) losses included in net income | [2] | 393 | 91 | |
Issues | (28) | (21) | ||
Settlements | (29) | |||
Balance, ending | $ 406 | $ 70 | $ 0 | |
[1] | Included in Interest credited to fixed accounts. | |||
[2] | Included in Benefits, claims, losses and settlement expenses. |
Fair Values of Assets and Lia_6
Fair Values of Assets and Liabilities - Significant Unobservable inputs (Details) - RiverSource Life $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale: Fixed maturities, at fair value | $ 16,239 | $ 22,855 | |
Corporate debt securities | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale: Fixed maturities, at fair value | 9,638 | 12,873 | |
Asset backed securities | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale: Fixed maturities, at fair value | 537 | 1,212 | |
Level 3 | Corporate debt securities | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale: Fixed maturities, at fair value | 496 | 766 | |
Level 3 | Asset backed securities | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale: Fixed maturities, at fair value | 291 | 395 | |
Level 3 | Fixed deferred indexed annuities ceded embedded derivatives | |||
Significant unobservable inputs used in fair value measurements | |||
Receivables: embedded derivatives | 59 | ||
Level 3 | IUL embedded derivatives | |||
Significant unobservable inputs used in fair value measurements | |||
Liabilities embedded derivatives | 905 | 935 | |
Level 3 | Fixed deferred indexed annuity embedded derivatives | |||
Significant unobservable inputs used in fair value measurements | |||
Liabilities embedded derivatives | 56 | 49 | |
Level 3 | GMWB and GMAB embedded derivatives | |||
Significant unobservable inputs used in fair value measurements | |||
Liabilities embedded derivatives, net | 1,486 | 2,316 | |
Level 3 | Structured variable annuity embedded derivatives | |||
Significant unobservable inputs used in fair value measurements | |||
Liabilities embedded derivatives | $ 406 | $ 70 | |
Level 3 | Discounted cash flow | Corporate debt securities | Minimum | Yield/spread to U.S. Treasuries | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-sale securities, measurement inputs | 0.008 | 0.010 | |
Level 3 | Discounted cash flow | Corporate debt securities | Maximum | Yield/spread to U.S. Treasuries | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-sale securities, measurement inputs | 0.024 | 0.033 | |
Level 3 | Discounted cash flow | Corporate debt securities | Weighted average | Yield/spread to U.S. Treasuries | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-sale securities, measurement inputs | [1] | 0.011 | 0.015 |
Level 3 | Discounted cash flow | Asset backed securities | Annual default rate | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-sale securities, measurement inputs | 0.058 | 0.053 | |
Level 3 | Discounted cash flow | Asset backed securities | Loss severity | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-sale securities, measurement inputs | 0.250 | 0.250 | |
Level 3 | Discounted cash flow | Asset backed securities | Minimum | Yield/spread to swap rates | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-sale securities, measurement inputs | 0.0175 | 0.0250 | |
Level 3 | Discounted cash flow | Asset backed securities | Maximum | Yield/spread to swap rates | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-sale securities, measurement inputs | 0.0275 | 0.0400 | |
Level 3 | Discounted cash flow | Asset backed securities | Weighted average | Annual default rate | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-sale securities, measurement inputs | 0.058 | 0.053 | |
Level 3 | Discounted cash flow | Asset backed securities | Weighted average | Loss severity | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-sale securities, measurement inputs | 0.250 | 0.250 | |
Level 3 | Discounted cash flow | Asset backed securities | Weighted average | Yield/spread to swap rates | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-sale securities, measurement inputs | [2] | 0.0182 | 0.0259 |
Level 3 | Discounted cash flow | Fixed deferred indexed annuities ceded embedded derivatives | Minimum | Surrender rate | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative asset, measurement input | 0 | ||
Level 3 | Discounted cash flow | Fixed deferred indexed annuities ceded embedded derivatives | Maximum | Surrender rate | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative asset, measurement input | 0.668 | ||
Level 3 | Discounted cash flow | Fixed deferred indexed annuities ceded embedded derivatives | Weighted average | Surrender rate | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative asset, measurement input | [3] | 0.014 | |
Level 3 | Discounted cash flow | IUL embedded derivatives | Nonperformance risk | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, measurement input | [4] | 0.0065 | 0.0065 |
Level 3 | Discounted cash flow | IUL embedded derivatives | Weighted average | Nonperformance risk | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, measurement input | [4] | 0.0065 | 0.0065 |
Level 3 | Discounted cash flow | Fixed deferred indexed annuity embedded derivatives | Nonperformance risk | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, measurement input | [4] | 0.0065 | 0.0065 |
Level 3 | Discounted cash flow | Fixed deferred indexed annuity embedded derivatives | Minimum | Surrender rate | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, measurement input | 0 | 0 | |
Level 3 | Discounted cash flow | Fixed deferred indexed annuity embedded derivatives | Maximum | Surrender rate | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, measurement input | 0.668 | 0.500 | |
Level 3 | Discounted cash flow | Fixed deferred indexed annuity embedded derivatives | Weighted average | Surrender rate | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, measurement input | [3] | 0.014 | 0.012 |
Level 3 | Discounted cash flow | Fixed deferred indexed annuity embedded derivatives | Weighted average | Nonperformance risk | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, measurement input | [4] | 0.0065 | 0.0065 |
Level 3 | Discounted cash flow | GMWB and GMAB embedded derivatives | Nonperformance risk | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, net, measurement input | [4] | 0.0065 | 0.0065 |
Level 3 | Discounted cash flow | GMWB and GMAB embedded derivatives | Minimum | Utilization of guaranteed withdrawals | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, net, measurement input | [5] | 0 | 0 |
Level 3 | Discounted cash flow | GMWB and GMAB embedded derivatives | Minimum | Surrender rate | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, net, measurement input | 0.001 | 0.001 | |
Level 3 | Discounted cash flow | GMWB and GMAB embedded derivatives | Minimum | Market volatility | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, net, measurement input | [6] | 0.043 | 0.043 |
Level 3 | Discounted cash flow | GMWB and GMAB embedded derivatives | Maximum | Utilization of guaranteed withdrawals | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, net, measurement input | [5] | 0.480 | 0.480 |
Level 3 | Discounted cash flow | GMWB and GMAB embedded derivatives | Maximum | Surrender rate | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, net, measurement input | 0.557 | 0.735 | |
Level 3 | Discounted cash flow | GMWB and GMAB embedded derivatives | Maximum | Market volatility | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, net, measurement input | [6] | 0.168 | 0.171 |
Level 3 | Discounted cash flow | GMWB and GMAB embedded derivatives | Weighted average | Utilization of guaranteed withdrawals | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, net, measurement input | [5],[7] | 0.106 | 0.106 |
Level 3 | Discounted cash flow | GMWB and GMAB embedded derivatives | Weighted average | Surrender rate | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, net, measurement input | [3] | 0.036 | 0.038 |
Level 3 | Discounted cash flow | GMWB and GMAB embedded derivatives | Weighted average | Market volatility | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, net, measurement input | [6],[8] | 0.108 | 0.110 |
Level 3 | Discounted cash flow | GMWB and GMAB embedded derivatives | Weighted average | Nonperformance risk | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, net, measurement input | [4] | 0.0065 | 0.0065 |
Level 3 | Discounted cash flow | Structured variable annuity embedded derivatives | Nonperformance risk | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, measurement input | [4] | 0.0065 | 0.0065 |
Level 3 | Discounted cash flow | Structured variable annuity embedded derivatives | Minimum | Surrender rate | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, measurement input | 0.008 | 0.008 | |
Level 3 | Discounted cash flow | Structured variable annuity embedded derivatives | Maximum | Surrender rate | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, measurement input | 0.400 | 0.400 | |
Level 3 | Discounted cash flow | Structured variable annuity embedded derivatives | Weighted average | Surrender rate | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, measurement input | [3] | 0.009 | 0.009 |
Level 3 | Discounted cash flow | Structured variable annuity embedded derivatives | Weighted average | Nonperformance risk | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, measurement input | [4] | 0.0065 | 0.0065 |
[1] | The weighted average for the spread to U.S. Treasuries for corporate debt securities (private placements) is weighted based on the security’s market value as a percentage of the aggregate market value of the securities. | ||
[2] | The weighted average for the spread to swap rates for asset backed securities is calculated as the sum of each tranche’s balance multiplied by its spread to swap divided by the aggregate balances of the tranches. | ||
[3] | The weighted average surrender rate is weighted based on the benefit base of each contract and represents the average assumption in the current year including the effect of a dynamic surrender formula. | ||
[4] | The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. | ||
[5] | The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. | ||
[6] | Market volatility represents the implied volatility of fund of funds and managed volatility funds. | ||
[7] | The weighted average utilization rate represents the average assumption for the current year, weighting each policy evenly. The calculation excludes policies that have already started taking withdrawals. | ||
[8] | The weighted average market volatility represents the average volatility across all contracts, weighted by the size of the guaranteed benefit. |
Fair Values of Assets and Lia_7
Fair Values of Assets and Liabilities - Non-Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
VIEs, not primary beneficiary | Affordable housing partnerships | Nonrecurring basis | Level 3 | ||
Assets and liabilities measured at fair value | ||
Investment balance | $ 93 | $ 101 |
Fair Values of Assets and Lia_8
Fair Values of Assets and Liabilities - Financial Instruments Not Reported at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Financial Liabilities | ||
Separate account liabilities - investment contracts | $ 92,238 | $ 87,556 |
Carrying Value | ||
Financial Assets | ||
Mortgage loans, net | 1,788 | 2,574 |
Policy loans | 834 | 846 |
Other investments | 61 | 457 |
Receivables | 7,876 | 1,430 |
Financial Liabilities | ||
Policyholder account balances, future policy benefits and claims | 12,342 | 9,990 |
Short-term borrowings | 200 | 200 |
Long-term debt | 500 | 500 |
Other liabilities | 9 | 12 |
Separate account liabilities - investment contracts | 403 | 351 |
Fair Value | ||
Financial Assets | ||
Mortgage loans, net | 1,872 | 2,724 |
Policy loans | 834 | 846 |
Other investments | 61 | 457 |
Receivables | 8,630 | 1,732 |
Financial Liabilities | ||
Policyholder account balances, future policy benefits and claims | 13,264 | 11,686 |
Short-term borrowings | 200 | 200 |
Long-term debt | 498 | 509 |
Other liabilities | 9 | 11 |
Separate account liabilities - investment contracts | 403 | 351 |
Fair Value | Level 2 | ||
Financial Assets | ||
Policy loans | 834 | 846 |
Other investments | 40 | 417 |
Financial Liabilities | ||
Short-term borrowings | 200 | 200 |
Long-term debt | 498 | 509 |
Separate account liabilities - investment contracts | 403 | 351 |
Fair Value | Level 3 | ||
Financial Assets | ||
Mortgage loans, net | 1,872 | 2,724 |
Other investments | 21 | 40 |
Receivables | 8,630 | 1,732 |
Financial Liabilities | ||
Policyholder account balances, future policy benefits and claims | 13,264 | 11,686 |
Other liabilities | $ 9 | $ 11 |
Related Party Transactions - Re
Related Party Transactions - Revenues, Expenses, Income Taxes and Investments (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)Property | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Ameriprise Financial | Related party lessor operating lease | |||
Related Party Transactions | |||
Number of real estate properties | Property | 1 | ||
Other revenues from transactions with related party. | $ 5 | $ 5 | $ 5 |
Rental income to be received from related party in each year of next five year period ending December 31, 2026 | 5 | ||
Rental income to be received from related party thereafter | 14 | ||
Ameriprise Financial | Related party Federal income tax sharing agreement | Other assets | |||
Related Party Transactions | |||
Due from related party for Federal income taxes | 18 | ||
Ameriprise Financial | Related party Federal income tax sharing agreement | Other liabilities | |||
Related Party Transactions | |||
Due (to) related party for Federal income taxes | (297) | ||
Ameriprise Financial and affiliated companies | Related party services agreements | |||
Related Party Transactions | |||
Charges by related parties | 345 | 358 | 370 |
Ameriprise Financial and affiliated companies | Investments in securities issued by related party | Net Investment Income | |||
Related Party Transactions | |||
Interest income from related party | 12 | 14 | $ 14 |
Ameriprise Financial and affiliated companies | Investments in securities issued by related party | Investments | |||
Related Party Transactions | |||
Fair value of Available-for-Sale Fixed Maturities of related party | $ 289 | $ 372 |
Related Party Transactions - Li
Related Party Transactions - Lines of Credit (Details) - Ameriprise Financial - Revolving line of credit lending arrangement - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transactions | ||
Maximum percentage of lender's statutory admitted assets | 3.00% | |
Percentage of additional interest to be accrued in the event of default | 1.00% | |
Amounts outstanding | $ 0 | $ 0 |
Related Party Transactions - Di
Related Party Transactions - Dividends or Distributions (Details) - USD ($) $ in Millions | Feb. 23, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transactions | ||||
Cash dividends or distributions paid by RiverSource Life Insurance Company to Ameriprise Financial | $ 1,900 | $ 800 | $ 1,350 | |
Cash dividend declared | 1,900 | 800 | 1,350 | |
RiverSource Life Insurance Company | ||||
Related Party Transactions | ||||
Cash dividends or distributions paid by RiverSource Life Insurance Company to Ameriprise Financial | 1,900 | 800 | 1,350 | |
RiverSource Life Insurance Company | Subsequent event | Expected | ||||
Related Party Transactions | ||||
Cash dividend declared | $ 300 | |||
Subsidiaries | RiverSource Life of NY | ||||
Related Party Transactions | ||||
Cash dividends or distributions received by RiverSource Life Insurance Company from subsidiaries | 43 | |||
Subsidiaries | RTA | ||||
Related Party Transactions | ||||
Cash dividends or distributions received by RiverSource Life Insurance Company from subsidiaries | $ 50 | $ 95 | $ 100 |
Regulatory Requirements - Gener
Regulatory Requirements - General Insurance Company Information (Details) - RiverSource Life Insurance Company - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2021 | Jun. 30, 2019 | Dec. 31, 2020 | |
Regulatory Requirements | |||
Nonaccelerated amortization period for deferred gains or losses from designated derivatives | 10 years | ||
Statutory unassigned surplus | $ 175 | $ 1,300 | |
Percentage of previous year-end statutory capital and surplus | 10.00% | ||
Statutory capital and surplus | $ 3,400 | $ 4,800 |
Regulatory Requirements - Insur
Regulatory Requirements - Insurance Company Statutory Financial Information and Securities on Deposit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Regulatory Requirements | |||
Government debt securities on deposit with states as required by law | $ 5 | $ 4 | |
RiverSource Life Insurance Company | |||
Regulatory Requirements | |||
Statutory net gain from operations | 1,366 | 1,393 | $ 1,505 |
Statutory net income (loss) | $ 253 | $ 1,582 | $ 786 |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities - Assets (Details)) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivatives: | |||
Gross Amounts of Recognized Assets | $ 5,517 | $ 5,758 | |
Amounts of Assets Presented in the Consolidated Balance Sheets | 5,517 | 5,758 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [1] | (3,703) | (3,916) |
Cash collateral | (1,623) | (1,408) | |
Securities collateral | (114) | (315) | |
Net amount | 77 | 119 | |
OTC | |||
Derivatives: | |||
Gross Amounts of Recognized Assets | 5,330 | 5,391 | |
Amounts of Assets Presented in the Consolidated Balance Sheets | 5,330 | 5,391 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [1] | (3,571) | (3,801) |
Cash collateral | (1,623) | (1,243) | |
Securities collateral | (114) | (315) | |
Net amount | 22 | 32 | |
OTC cleared | |||
Derivatives: | |||
Gross Amounts of Recognized Assets | 88 | 58 | |
Amounts of Assets Presented in the Consolidated Balance Sheets | 88 | 58 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [1] | (41) | (25) |
Net amount | 47 | 33 | |
Exchange-traded | |||
Derivatives: | |||
Gross Amounts of Recognized Assets | 99 | 309 | |
Amounts of Assets Presented in the Consolidated Balance Sheets | 99 | 309 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [1] | (91) | (90) |
Cash collateral | (165) | ||
Net amount | $ 8 | $ 54 | |
[1] | Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
Offsetting Assets and Liabili_4
Offsetting Assets and Liabilities - Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivatives: | |||
Gross amounts of Recognized Liabilities | $ 4,180 | $ 4,248 | |
Amounts of Liabilities Presented in the Consolidated Balance Sheets | 4,180 | 4,248 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial Instruments | [1] | (3,703) | (3,916) |
Cash Collateral | (181) | (1) | |
Securities Collateral | (293) | (327) | |
Net Amount | 3 | 4 | |
OTC | |||
Derivatives: | |||
Gross amounts of Recognized Liabilities | 4,048 | 4,129 | |
Amounts of Liabilities Presented in the Consolidated Balance Sheets | 4,048 | 4,129 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial Instruments | [1] | (3,571) | (3,801) |
Cash Collateral | (181) | (1) | |
Securities Collateral | (293) | (327) | |
Net Amount | 3 | ||
OTC cleared | |||
Derivatives: | |||
Gross amounts of Recognized Liabilities | 41 | 25 | |
Amounts of Liabilities Presented in the Consolidated Balance Sheets | 41 | 25 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial Instruments | [1] | (41) | (25) |
Exchange-traded | |||
Derivatives: | |||
Gross amounts of Recognized Liabilities | 91 | 94 | |
Amounts of Liabilities Presented in the Consolidated Balance Sheets | 91 | 94 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial Instruments | [1] | $ (91) | (90) |
Net Amount | $ 4 | ||
[1] | Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Notional Value and Gross Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivatives and Hedging Activities | |||
Notional | $ 143,178 | $ 139,311 | |
Gross Fair Value Assets, freestanding derivatives | 5,517 | 5,758 | |
Gross Fair Value Liabilities, freestanding derivatives | 4,180 | 4,248 | |
Total Gross Fair Value, derivative assets | [1] | 5,576 | 5,758 |
Total Gross Fair Value, derivative liabilities | [2],[3] | 7,038 | 7,621 |
Derivative liability after application of master netting arrangements and cash collateral including embedded derivative liabilities | 3,200 | 3,700 | |
Fair value of investment securities received as collateral | 123 | 325 | |
Fair value of investment securities received as collateral that can be repledged | 123 | 325 | |
Fair value of investment securities received as collateral that were repledged | 0 | 0 | |
Receivables | |||
Derivatives and Hedging Activities | |||
Gross Fair Value Assets, embedded derivatives | [1] | 59 | |
Policyholder account balances, future policy benefits and claims | |||
Derivatives and Hedging Activities | |||
Fair Value Liabilities, embedded derivatives, net | [2],[3] | 2,858 | 3,373 |
GMWB and GMAB embedded derivatives | |||
Derivatives and Hedging Activities | |||
Gross Fair Value Assets, embedded derivatives | 133 | 67 | |
Gross Fair Value Liabilities, embedded derivatives | 1,600 | 2,400 | |
GMWB and GMAB embedded derivatives | Policyholder account balances, future policy benefits and claims | |||
Derivatives and Hedging Activities | |||
Fair Value Liabilities, embedded derivatives, net | [2],[3],[4] | 1,486 | 2,316 |
IUL embedded derivatives | Policyholder account balances, future policy benefits and claims | |||
Derivatives and Hedging Activities | |||
Gross Fair Value Liabilities, embedded derivatives | [2],[3] | 905 | 935 |
Deposit receivables embedded derivative | Receivables | |||
Derivatives and Hedging Activities | |||
Gross Fair Value Assets, embedded derivatives | [1] | 59 | |
Fixed deferred indexed annuity embedded derivatives | Policyholder account balances, future policy benefits and claims | |||
Derivatives and Hedging Activities | |||
Gross Fair Value Liabilities, embedded derivatives | [2],[3] | 61 | 52 |
Structured variable annuity embedded derivatives | Policyholder account balances, future policy benefits and claims | |||
Derivatives and Hedging Activities | |||
Gross Fair Value Liabilities, embedded derivatives | [2],[3] | 406 | 70 |
Not designated as hedging instruments | |||
Derivatives and Hedging Activities | |||
Notional | 143,178 | 139,311 | |
Not designated as hedging instruments | Other assets | |||
Derivatives and Hedging Activities | |||
Gross Fair Value Assets, freestanding derivatives | [1] | 5,517 | 5,758 |
Not designated as hedging instruments | Other liabilities | |||
Derivatives and Hedging Activities | |||
Gross Fair Value Liabilities, freestanding derivatives | [2],[3] | 4,180 | 4,248 |
Not designated as hedging instruments | Interest rate contracts | |||
Derivatives and Hedging Activities | |||
Notional | 79,459 | 77,925 | |
Not designated as hedging instruments | Interest rate contracts | Other assets | |||
Derivatives and Hedging Activities | |||
Gross Fair Value Assets, freestanding derivatives | [1] | 1,252 | 1,755 |
Not designated as hedging instruments | Interest rate contracts | Other liabilities | |||
Derivatives and Hedging Activities | |||
Gross Fair Value Liabilities, freestanding derivatives | [2],[3] | 468 | 734 |
Not designated as hedging instruments | Equity contracts | |||
Derivatives and Hedging Activities | |||
Notional | 59,763 | 55,993 | |
Not designated as hedging instruments | Equity contracts | Other assets | |||
Derivatives and Hedging Activities | |||
Gross Fair Value Assets, freestanding derivatives | [1] | 4,238 | 3,984 |
Not designated as hedging instruments | Equity contracts | Other liabilities | |||
Derivatives and Hedging Activities | |||
Gross Fair Value Liabilities, freestanding derivatives | [2],[3] | 3,711 | 3,511 |
Not designated as hedging instruments | Credit contracts | |||
Derivatives and Hedging Activities | |||
Notional | 1,717 | 2,269 | |
Not designated as hedging instruments | Credit contracts | Other assets | |||
Derivatives and Hedging Activities | |||
Gross Fair Value Assets, freestanding derivatives | [1] | 9 | 1 |
Not designated as hedging instruments | Credit contracts | Other liabilities | |||
Derivatives and Hedging Activities | |||
Gross Fair Value Liabilities, freestanding derivatives | [2],[3] | 1 | |
Not designated as hedging instruments | Foreign exchange contracts | |||
Derivatives and Hedging Activities | |||
Notional | 2,239 | 3,124 | |
Not designated as hedging instruments | Foreign exchange contracts | Other assets | |||
Derivatives and Hedging Activities | |||
Gross Fair Value Assets, freestanding derivatives | [1] | 18 | 18 |
Not designated as hedging instruments | Foreign exchange contracts | Other liabilities | |||
Derivatives and Hedging Activities | |||
Gross Fair Value Liabilities, freestanding derivatives | [2],[3] | $ 1 | $ 2 |
[1] | The fair value of freestanding derivative assets is included in Other assets and the fair value of ceded derivative assets related to deposit receivables is included in Receivables. | ||
[2] | The fair value of freestanding derivative liabilities is included in Other liabilities. The fair value of GMWB and GMAB, IUL, and fixed deferred indexed annuity and structured variable annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims. | ||
[3] | The fair value of the Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $3.2 billion and $3.7 billion as of December 31, 2021 and 2020, respectively. See Note 16 for additional information related to master netting arrangements and cash collateral. | ||
[4] | The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2021 included $1.6 billion of individual contracts in a liability position and $133 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2020 included $2.4 billion of individual contracts in a liability position and $67 million of individual contracts in an asset position. |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Derivatives Not Designated as Hedges Impact (Details) - Not designated as hedging instruments - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Investment Income | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | $ 1 | ||
Net Investment Income | Equity contracts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 1 | ||
Interest Credited to Fixed Accounts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 113 | $ 58 | $ (31) |
Interest Credited to Fixed Accounts | Equity contracts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 91 | 55 | 117 |
Interest Credited to Fixed Accounts | IUL embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 30 | 7 | (140) |
Interest Credited to Fixed Accounts | Fixed deferred indexed annuity and deposit receivables embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | (8) | ||
Interest Credited to Fixed Accounts | Fixed deferred indexed annuity embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | (4) | (8) | |
Benefits, Claims, Losses and Settlement Expenses | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | (1,218) | (869) | (939) |
Benefits, Claims, Losses and Settlement Expenses | Interest rate contracts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | (886) | 1,633 | 1,100 |
Benefits, Claims, Losses and Settlement Expenses | Equity contracts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | (817) | (744) | (1,501) |
Benefits, Claims, Losses and Settlement Expenses | Credit contracts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 43 | (106) | (73) |
Benefits, Claims, Losses and Settlement Expenses | Foreign exchange contracts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 5 | (8) | (30) |
Benefits, Claims, Losses and Settlement Expenses | GMWB and GMAB embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 830 | (1,553) | $ (435) |
Benefits, Claims, Losses and Settlement Expenses | Structured variable annuity embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | $ (393) | $ (91) |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Deferred Premium, Options and Swaptions (Details) - Options and Swaptions $ in Millions | Dec. 31, 2021USD ($) |
Premiums Payable | |
2022 | $ 204 |
2023 | 51 |
2024 | 137 |
2025 | 124 |
2026 | 252 |
2027-2028 | 18 |
Total | 786 |
Premiums Receivable | |
2022 | 204 |
2023 | 43 |
2024 | 25 |
2025 | 22 |
2026 | 88 |
Total | $ 382 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities - Cash Flow Hedges and Credit Risk (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flow Hedges | |||
Derivatives designated as cash flow hedges | $ 0 | $ 0 | |
Hedge relationships discontinued due to forecasted transactions no longer being expected to occur according to original hedge strategy | 0 | 0 | $ 0 |
Credit Risk | |||
Aggregate fair value of derivative contracts in net liability position containing credit contingent provisions | 383 | 324 | |
Aggregate fair value of assets posted as collateral | 383 | 324 | |
Aggregate fair value of additional assets required to be posted or needed to settle | $ 0 | $ 0 |
Shareholder's Equity - OCI Comp
Shareholder's Equity - OCI Components (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Pretax | ||||
Total other comprehensive income (loss) | $ (750) | $ 437 | $ 674 | |
Income Tax Benefit (Expense) | ||||
Total other comprehensive income (loss) | 158 | (91) | (145) | |
Net of Tax | ||||
Total other comprehensive income (loss), net of tax | (592) | 346 | 529 | |
Net Unrealized Gains (Losses) on Securities | ||||
Pretax | ||||
Reclassification to net income | [1] | (556) | 5 | 2 |
Total other comprehensive income (loss) | (750) | 437 | 674 | |
Income Tax Benefit (Expense) | ||||
Reclassification to net income | 117 | (1) | ||
Total other comprehensive income (loss) | 158 | (91) | (145) | |
Net of Tax | ||||
Arising during the period | (153) | 342 | 527 | |
Reclassification to net income | (439) | 4 | 2 | |
Total other comprehensive income (loss), net of tax | (592) | 346 | 529 | |
Net unrealized gains (losses) on securities, excluding insurance related impact | ||||
Pretax | ||||
Arising during the period | [2] | (527) | 811 | 1,360 |
Income Tax Benefit (Expense) | ||||
Other Comprehensive Income (Loss) before Reclassifications, Tax | [2] | 111 | (170) | (289) |
Net of Tax | ||||
Arising during the period | [2] | (416) | 641 | 1,071 |
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables | ||||
Pretax | ||||
Arising during the period | 333 | (379) | (688) | |
Income Tax Benefit (Expense) | ||||
Other Comprehensive Income (Loss) before Reclassifications, Tax | (70) | 80 | 144 | |
Net of Tax | ||||
Arising during the period | $ 263 | $ (299) | $ (544) | |
[1] | Reclassification amounts are recorded in Net realized investment gains (losses). | |||
[2] | Includes impairments on Available-for-Sale securities related to factors other than credit that were recognized in OCI during the period. |
Shareholder's Equity - Changes
Shareholder's Equity - Changes in AOCI Components (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Changes in balances of each component of AOCI, net of tax | ||||||
Beginning balance | $ 3,313 | $ 3,336 | $ 3,572 | |||
Total other comprehensive income (loss), net of tax | (592) | 346 | 529 | |||
Ending balance | 1,885 | 3,313 | 3,336 | |||
Total AOCI | ||||||
Changes in balances of each component of AOCI, net of tax | ||||||
Beginning balance | 920 | 574 | 45 | |||
OCI before reclassifications | (153) | 342 | 527 | |||
Amounts reclassified from AOCI | (439) | 4 | 2 | |||
Total other comprehensive income (loss), net of tax | (592) | 346 | 529 | |||
Ending balance | 328 | 920 | 574 | |||
Net Unrealized Gains (Losses) on Securities | ||||||
Changes in balances of each component of AOCI, net of tax | ||||||
Beginning balance | 921 | [1] | 575 | [1] | 46 | |
OCI before reclassifications | (153) | 342 | 527 | |||
Amounts reclassified from AOCI | (439) | 4 | 2 | |||
Total other comprehensive income (loss), net of tax | (592) | 346 | 529 | |||
Ending balance | [1] | 329 | 921 | 575 | ||
Noncredit related impairments | ||||||
Changes in balances of each component of AOCI, net of tax | ||||||
Beginning balance | 0 | 0 | ||||
Ending balance | 0 | 0 | 0 | |||
Other | ||||||
Changes in balances of each component of AOCI, net of tax | ||||||
Beginning balance | (1) | (1) | (1) | |||
Total other comprehensive income (loss), net of tax | 0 | 0 | 0 | |||
Ending balance | $ (1) | $ (1) | $ (1) | |||
[1] | Includes nil of noncredit related impairments on securities and net unrealized gains (losses) on previously impaired securities as of December 31, 2021, 2020 and 2019. |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current income tax: | |||
Federal | $ 171 | $ 233 | $ 210 |
State | 6 | 8 | |
Total current income tax | 177 | 233 | 218 |
Deferred income tax: | |||
Federal | (39) | (277) | (271) |
State | (1) | (1) | (7) |
Total deferred income tax | (40) | (278) | (278) |
Total income tax provision | $ 137 | $ (45) | $ (60) |
Income Taxes - Reasons for Inco
Income Taxes - Reasons for Income Tax Provision Differences to Statutory Rate (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Tax at U.S. statutory rate | 21.00% | 21.00% | 21.00% |
Changes in taxes resulting from: | |||
Low income housing tax credits (as a percent) | (5.60%) | (20.10%) | (15.30%) |
Dividend received deduction (as a percent) | (2.90%) | (9.70%) | (7.60%) |
Foreign tax credit, net of addback (as a percent) | (1.50%) | (1.90%) | (9.50%) |
Audit adjustments (as a percent) | (1.40%) | ||
Uncertain tax positions (as a percent) | 1.80% | ||
Other, net (as a percent) | 0.40% | (0.80%) | (0.40%) |
Income tax provision (as a percent) | 11.40% | (11.50%) | (11.40%) |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred income tax assets and liabilities | |||
Statutory rate (as a percent) | 21.00% | 21.00% | 21.00% |
Deferred income tax assets | |||
Liabilities for policyholder account balances, future policy benefits and claims | $ 1,994 | $ 1,617 | |
Other | 14 | 13 | |
Gross deferred income tax assets | 2,008 | 1,630 | |
Valuation allowance | 11 | 11 | |
Total deferred income tax assets | 1,997 | 1,619 | |
Deferred income tax liabilities | |||
Investment related | 508 | 216 | |
Deferred acquisition costs | 469 | 424 | |
Net unrealized gains on Available-for-Sale securities | 114 | 274 | |
Deferred sales inducement costs | 44 | ||
Other | 58 | 12 | |
Gross deferred income tax liabilities | 1,149 | 970 | |
Net deferred income tax assets | $ 848 | $ 649 |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Losses (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Operating loss carryforwards | ||
Valuation allowance | $ 11 | $ 11 |
State | ||
Operating loss carryforwards | ||
Deferred tax assets, loss carryforwards | 9 | |
Valuation allowance, net operating losses | 9 | |
Valuation allowance | $ 2 |
Income Taxes - Reconciliation R
Income Taxes - Reconciliation Rollforward of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of gross unrecognized tax benefits | |||
Beginning Balance | $ 38 | $ 39 | $ 19 |
Additions based on tax positions related to current year | 1 | 1 | |
Reductions based on tax positions related to current year | (1) | (1) | |
Additions for tax positions of prior years | 34 | ||
Reductions for tax positions of prior years | (4) | ||
Audit settlements | (11) | ||
Reductions due to lapse of statute of limitations | (1) | ||
Ending Balance | 37 | 38 | 39 |
Unrecognized tax benefits, net of federal tax benefits, that would affect the effective tax rate if recognized | 20 | 20 | 17 |
Estimated decrease in gross amount of unrecognized tax benefits reasonably possible in next 12 months | 34 | ||
Interest and penalties related to unrecognized tax benefits | |||
Increase in interest and penalties | 1 | 0 | $ 1 |
Payable related to accrued interest and penalties | $ 3 | $ 2 |
Commitments, Guarantees and C_3
Commitments, Guarantees and Contingencies - Funding Commitments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments | ||
Funding commitments | $ 57 | $ 30 |
Commercial mortgage loans | ||
Commitments | ||
Funding commitments | 48 | 18 |
Affordable housing and other real estate partnerships | ||
Commitments | ||
Funding commitments | $ 9 | $ 12 |
Commitments, Guarantees and C_4
Commitments, Guarantees and Contingencies - Guarantees and Guaranty Fund Assessments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Guaranty Fund Assessments | ||
Liability related to guaranty fund assessments | $ 12 | $ 12 |
Related premium tax asset | $ 10 | $ 10 |
Minimum | ||
Loss contingencies | ||
Minimum interest rate guarantees in fixed accounts | 1.00% | |
Maximum | ||
Loss contingencies | ||
Minimum interest rate guarantees in fixed accounts | 5.00% |