Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 22, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | AMERIPRISE FINANCIAL INC | |
Entity Central Index Key | 820,027 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 161,420,894 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Revenues | |||||
Management and financial advice fees | $ 1,439 | $ 1,518 | $ 2,825 | $ 2,986 | |
Distribution fees | 448 | 472 | 883 | 938 | |
Net investment income | 372 | 423 | 703 | 907 | |
Premiums | 372 | 368 | 740 | 721 | |
Other revenues | 248 | 354 | 502 | 643 | |
Total revenues | 2,879 | 3,135 | 5,653 | 6,195 | |
Banking and deposit interest expense | 8 | 7 | 17 | 14 | |
Total net revenues | [1],[2] | 2,871 | 3,128 | 5,636 | 6,181 |
Expenses | |||||
Distribution expenses | 803 | 835 | 1,573 | 1,654 | |
Interest credited to fixed accounts | 158 | 160 | 304 | 332 | |
Benefits, claims, losses and settlement expenses | 597 | 543 | 1,079 | 1,076 | |
Amortization of deferred acquisition costs | 87 | 94 | 197 | 169 | |
Interest and debt expense | 53 | 89 | 108 | 173 | |
General and administrative expense | 763 | 792 | 1,490 | 1,544 | |
Total expenses | 2,461 | 2,513 | 4,751 | 4,948 | |
Pretax income | 410 | 615 | 885 | 1,233 | |
Income tax provision | 75 | 139 | 186 | 278 | |
Net income | 335 | 476 | 699 | 955 | |
Less: Net income attributable to noncontrolling interests | 0 | 61 | 147 | ||
Net income attributable to Ameriprise Financial | $ 335 | $ 415 | $ 699 | $ 808 | |
Basic | |||||
Net income (in dollars per share) | $ 1.99 | $ 2.26 | $ 4.10 | $ 4.37 | |
Diluted | |||||
Net income (in dollars per share) | 1.97 | 2.23 | 4.06 | 4.30 | |
Cash dividends declared per common share (in dollars per share) | $ 0.75 | $ 0.67 | $ 1.42 | $ 1.25 | |
Supplemental Disclosures | |||||
Total other-than-temporary impairment losses on securities | $ 0 | $ 0 | $ (2) | $ (1) | |
Portion of loss recognized in other comprehensive income (before taxes) | 0 | 0 | 1 | 0 | |
Net impairment losses recognized in net investment income | $ 0 | $ 0 | $ (1) | $ (1) | |
[1] | Includes foreign net revenues of $166 million and $293 million for the three months ended June 30, 2016 and 2015, respectively. | ||||
[2] | Includes foreign net revenues of $338 million and $526 million for the six months ended June 30, 2016 and 2015, respectively. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 335 | $ 476 | $ 699 | $ 955 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | (28) | 100 | (39) | 15 |
Net unrealized gains (losses) on securities | 217 | (238) | 410 | (167) |
Net unrealized gains on derivatives | 1 | 0 | 2 | 0 |
Defined benefit plans | 6 | 0 | 6 | 0 |
Total other comprehensive income (loss), net of tax | 196 | (138) | 379 | (152) |
Total comprehensive income | 531 | 338 | 1,078 | 803 |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 127 | 0 | 157 |
Comprehensive income attributable to Ameriprise Financial | $ 531 | $ 211 | $ 1,078 | $ 646 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 2,819 | $ 2,357 |
Total assets | 142,684 | 145,319 |
Liabilities | ||
Policyholder account balances, future policy benefits and claims | 31,242 | 29,699 |
Separate account liabilities | 80,230 | 80,349 |
Total liabilities | 135,595 | 136,914 |
Ameriprise Financial, Inc. | ||
Common shares | 3 | 3 |
Additional paid-in capital | 7,659 | 7,611 |
Retained earnings | 10,007 | 9,551 |
Appropriated retained earnings of consolidated investment entities | 0 | 137 |
Treasury shares, at cost | (11,218) | (10,338) |
Accumulated other comprehensive income, net of tax | 638 | 253 |
Total Ameriprise Financial, Inc. shareholders' equity | 7,089 | 7,217 |
Noncontrolling interests | 0 | 1,188 |
Total equity | 7,089 | 8,405 |
Total liabilities and equity | 142,684 | 145,319 |
Ameriprise Financial [Member] | ||
Assets | ||
Cash and cash equivalents | 2,819 | |
Investments | 35,265 | 34,144 |
Separate account assets | 80,230 | 80,349 |
Receivables | 5,171 | 5,167 |
Deferred acquisition costs | 2,600 | 2,725 |
Restricted and segregated cash and investments | 2,866 | 2,949 |
Other assets | 10,877 | 8,384 |
Liabilities | ||
Policyholder account balances, future policy benefits and claims | 31,242 | 29,699 |
Separate account liabilities | 80,230 | 80,349 |
Customer deposits | 9,132 | 8,634 |
Short-term borrowings | 200 | 200 |
Long-term debt | 2,452 | 2,692 |
Accounts payable and accrued expenses | 1,337 | 1,552 |
Other liabilities | 8,165 | 5,965 |
Consolidated investment entities [Member] | ||
Assets | ||
Cash and cash equivalents | 231 | 502 |
Investments | 2,605 | 6,570 |
Receivables | 19 | 107 |
Other assets | 1 | 2,065 |
Liabilities | ||
Long-term debt | 2,749 | 7,531 |
Accounts payable and accrued expenses | 0 | 54 |
Other liabilities | $ 88 | $ 238 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common shares, shares authorized | 1,250,000,000 | 1,250,000,000 | |
Common shares, shares issued | 323,422,156 | 322,822,746 | |
Treasury shares | 161,179,934 | 151,789,486 | |
Consolidated investment entities [Member] | |||
Receivables, fair value (in dollars) | $ 19 | $ 70 | |
Debt, fair value (in dollars) | 2,749 | [1] | 6,630 |
Other liabilities, fair value (in dollars) | 88 | 221 | |
Other assets, fair value (in dollars) | $ 1 | $ 2,065 | |
[1] | As the Company elected the measurement alternative effective January 1, 2016, the carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. See Note 2 and above for additional discussion on the measurement alternative. The estimated fair value of the CLOs’ debt was $2.7 billion at June 30, 2016. |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Total Ameriprise Financial, Inc. Shareholders' Equity [Member] | Common Shares [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Appropriated Retained Earnings of Consolidated Investment Entities [Member] | Treasury Shares [Member] | Accumulated Other Comprehensive Income [Member] | Noncontrolling Interests [Member] |
Balances at Dec. 31, 2014 | $ 9,305 | $ 8,124 | $ 3 | $ 7,345 | $ 8,469 | $ 234 | $ (8,589) | $ 662 | $ 1,181 |
Balances (in shares) at Dec. 31, 2014 | 183,109,509 | ||||||||
Comprehensive income (loss) [Abstract] | |||||||||
Net income attributable to Ameriprise Financial | 808 | 808 | |||||||
Net income attributable to noncontrolling interest | (147) | 147 | |||||||
Net income | 955 | ||||||||
Other comprehensive income attributable to Ameriprise Financial, net of tax | (162) | (162) | (162) | ||||||
Other comprehensive loss attributable to noncontrolling interest, net of tax | 10 | 10 | |||||||
Total other comprehensive income | (152) | ||||||||
Comprehensive income attributable to Ameriprise Financial | 646 | 646 | |||||||
Comprehensive income attributable to noncontrolling interests | (157) | 157 | |||||||
Total comprehensive income | 803 | ||||||||
Net income reclassified to appropriated retained earnings | 23 | 23 | (23) | ||||||
Dividends to shareholders | (234) | (234) | (234) | ||||||
Noncontrolling interests investments in subsidiaries | 135 | 135 | |||||||
Distributions to noncontrolling interests | (329) | (329) | |||||||
Repurchase of common shares | (905) | (905) | (905) | ||||||
Repurchase of common shares (in shares) | (6,975,657) | ||||||||
Share-based compensation plans | 221 | 221 | 155 | 66 | |||||
Share-based compensation plans (in shares) | 2,615,760 | ||||||||
Balances at Jun. 30, 2015 | 8,996 | 7,875 | $ 3 | 7,500 | 9,043 | 257 | (9,428) | 500 | 1,121 |
Balances (in shares) at Jun. 30, 2015 | 178,749,612 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative effect of change in accounting policies | 6 | ||||||||
Cumulative effect of change in accounting policies | Adjustments for New Accounting Pronouncement [Member] | (1,318) | (130) | 1 | (137) | 6 | (1,188) | |||
Balances (Adjusted for change in accounting policies [Member]) at Dec. 31, 2015 | 7,087 | 7,087 | 9,552 | 259 | |||||
Balances at Dec. 31, 2015 | 8,405 | 7,217 | $ 3 | 7,611 | 9,551 | $ 137 | (10,338) | 253 | $ 1,188 |
Balances (in shares) at Dec. 31, 2015 | 171,033,260 | ||||||||
Balances (in shares) (Adjustments for New Accounting Pronouncement [Member]) at Dec. 31, 2015 | 0 | ||||||||
Comprehensive income (loss) [Abstract] | |||||||||
Net income attributable to Ameriprise Financial | 699 | 699 | |||||||
Net income | 699 | ||||||||
Other comprehensive income attributable to Ameriprise Financial, net of tax | 379 | 379 | 379 | ||||||
Other comprehensive loss attributable to noncontrolling interest, net of tax | 0 | ||||||||
Total other comprehensive income | 379 | ||||||||
Comprehensive income attributable to Ameriprise Financial | 1,078 | 1,078 | |||||||
Comprehensive income attributable to noncontrolling interests | 0 | ||||||||
Total comprehensive income | 1,078 | ||||||||
Dividends to shareholders | (244) | (244) | (244) | ||||||
Repurchase of common shares | (942) | (942) | (942) | ||||||
Repurchase of common shares (in shares) | (10,301,265) | ||||||||
Share-based compensation plans | 110 | 110 | 48 | 62 | |||||
Share-based compensation plans (in shares) | 1,510,227 | ||||||||
Balances at Jun. 30, 2016 | $ 7,089 | $ 7,089 | $ 3 | $ 7,659 | $ 10,007 | $ (11,218) | $ 638 | ||
Balances (in shares) at Jun. 30, 2016 | 162,242,222 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash Flows from Operating Activities [Abstract] | ||
Net income | $ 699 | $ 955 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and accretion, net | 127 | 123 |
Deferred income tax expense (benefit) | (54) | 88 |
Share-based compensation | 68 | 70 |
Net realized investment losses (gains) | 6 | (17) |
Net trading gains | (4) | (4) |
Loss from equity method investments | 20 | 14 |
Other-than-temporary impairments and provision for loan losses | 0 | 2 |
Net losses (gains) of consolidated investment entities | 5 | (125) |
Changes in operating assets and liabilities: | ||
Restricted and segregated cash and investments | 83 | 123 |
Deferred acquisition costs | 31 | (3) |
Other investments, net | (12) | 53 |
Policyholder account balances, future policy benefits and claims, net | 1,161 | (183) |
Derivatives, net of collateral | (660) | 256 |
Receivables | (26) | (278) |
Brokerage deposits | (69) | 5 |
Accounts payable and accrued expenses | (196) | (144) |
Cash held by consolidated investment entities | (76) | (79) |
Investment properties of consolidated investment entities | 0 | 61 |
Other operating assets and liabilities of consolidated investment entities, net | (10) | 44 |
Other, net | 252 | 571 |
Net cash provided by operating activities | 1,345 | 1,532 |
Available-for-Sale securities: | ||
Proceeds from sales | 314 | 56 |
Maturities, sinking fund payments and calls | 2,384 | 2,499 |
Purchases | (3,110) | (2,338) |
Proceeds from sales, maturities and repayments of mortgage loans | 557 | 319 |
Funding of mortgage loans | (228) | (268) |
Proceeds from sales and collections of other investments | 85 | 111 |
Purchase of other investments | (86) | (142) |
Purchase of investments by consolidated investment entities | (316) | (1,243) |
Proceeds from sales, maturities and repayments of investments by consolidated investment entities | 457 | 859 |
Purchase of land, buildings, equipment and software | (36) | (67) |
Other, net | 42 | 32 |
Net cash provided by (used in) investing activities | 63 | (182) |
Investment certificates: | ||
Proceeds from additions | 2,168 | 1,375 |
Maturities, withdrawals and cash surrenders | (1,597) | (1,227) |
Policyholder account balances: | ||
Deposits and other additions | 999 | 984 |
Net transfers from (to) separate accounts | 83 | (102) |
Surrenders and other benefits | (989) | (1,566) |
Cash paid for purchased options with deferred premiums | (163) | (216) |
Cash received from purchased options with deferred premiums | 33 | 8 |
Repayments of long-term debt | (251) | 0 |
Dividends paid to shareholders | (239) | (229) |
Repurchase of common shares | (901) | (826) |
Exercise of stock options | 4 | 11 |
Excess tax benefits from share-based compensation | 5 | 54 |
Borrowings by consolidated investment entities | 0 | 768 |
Repayments of debt by consolidated investment entities | (60) | (261) |
Noncontrolling interests investments in subsidiaries | 0 | 135 |
Distributions to noncontrolling interests | 0 | (329) |
Net cash used in financing activities | (908) | (1,421) |
Effect of exchange rate changes on cash | (38) | 3 |
Net increase (decrease) in cash and cash equivalents | 462 | (68) |
Cash and cash equivalents at beginning of period | 2,357 | 2,638 |
Cash and cash equivalents at end of period | 2,819 | 2,570 |
Income taxes paid, net | 175 | 80 |
Non-cash investing activity: | ||
Affordable housing partnership commitments not yet remitted | 19 | 9 |
Ameriprise Financial [Member] | ||
Interest paid | 80 | 95 |
Consolidated investment entities [Member] | ||
Policyholder account balances: | ||
Cash and cash equivalents at beginning of period | 502 | |
Cash and cash equivalents at end of period | 231 | |
Interest paid | $ 50 | $ 114 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation [Member] | Basis of Presentation Ameriprise Financial, Inc. is a holding company, which primarily conducts business through its subsidiaries to provide financial planning, products and services that are designed to be utilized as solutions for clients’ cash and liquidity, asset accumulation, income, protection and estate and wealth transfer needs. The foreign operations of Ameriprise Financial, Inc. are conducted primarily through Threadneedle Asset Management Holdings Sàrl and Ameriprise Asset Management Holdings GmbH (collectively, “Threadneedle”). The accompanying Consolidated Financial Statements include the accounts of Ameriprise Financial, Inc., 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. Effective January 1, 2016, the Company adopted ASU 2015-02 - Consolidation: Amendments to the Consolidation Analysis (“ASU 2015-02”) and deconsolidated several collateralized loan obligations (“CLOs”) and all previously consolidated property funds. The income or loss generated by consolidated entities which will not be realized by the Company’s shareholders is attributed to noncontrolling interests in the Consolidated Statements of Operations. Noncontrolling interests are the ownership interests in subsidiaries not attributable, directly or indirectly, to Ameriprise Financial, Inc. and are classified as equity within the Consolidated Balance Sheets. The Company, excluding noncontrolling interests, is defined as “Ameriprise Financial.” Upon adoption of ASU 2015-02, the Company no longer has noncontrolling interests primarily due to the deconsolidation of property funds. See Note 2 and Note 3 for additional information on recently adopted accounting pronouncements and VIEs. The interim financial information in this report has not been audited. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated results of operations and financial position for the interim periods have been made. All adjustments made were of a normal recurring nature. The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Results of operations reported for interim periods are not necessarily indicative of results for the entire year. These Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 , filed with the Securities and Exchange Commission (“SEC”) on February 25, 2016 . 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. No subsequent events or transactions were identified. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adoption of New Accounting Standards Fair Value Measurement – Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) In May 2015, the Financial Accounting Standards Board (“FASB”) updated the accounting standards related to fair value measurement. The update applies to investments that are measured at net asset value (“NAV”). The standard eliminates the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share as a practical expedient. In addition, the update limits disclosures about the nature and risks of the investments to investments for which the entity elected to measure the fair value using the practical expedient rather than all investments that are eligible for the NAV practical expedient. The standard is effective for interim and annual periods beginning after December 15, 2015. The Company adopted the standard on January 1, 2016 on a retrospective basis to all periods presented. There was no impact of the standard to the Company’s consolidated results of operations and financial condition. Interest – Imputation of Interest In April 2015, the FASB updated the accounting standards related to debt issuance costs. The update requires that debt issuance costs be presented on the balance sheet as a direct deduction from the carrying amount of debt. The update does not impact the measurement or recognition of debt issuance costs. In August 2015, the FASB updated the guidance to allow companies to make a policy election to exclude debt issuance costs for line-of-credit arrangements from the standard. The standard is effective for interim and annual periods beginning after December 15, 2015. The Company adopted the standard on January 1, 2016 on a retrospective basis to all periods presented. The reclassification did not have a material impact on the Company’s consolidated financial condition. There was no impact of the standard to the Company’s consolidated results of operations. Consolidation In February 2015, the FASB updated the accounting standard for consolidation. The update changes the accounting for the consolidation model for limited partnerships and VIEs and excludes certain money market funds from the consolidation analysis. Specific to the consolidation analysis of a VIE, the update clarifies consideration of fees paid to a decision maker and amends the related party guidance. The standard is effective for periods beginning after December 15, 2015. The Company adopted the standard on January 1, 2016 using the modified retrospective approach. The adoption resulted in the deconsolidation of several CLOs and all previously consolidated property funds with a decrease of approximately $6.2 billion of assets, $4.9 billion of liabilities and $1.3 billion of equity (noncontrolling interests and appropriated retained earnings of consolidated investment entities). Effective January 1, 2016, intercompany amounts between the Company and the deconsolidated CLOs and property funds are no longer eliminated in consolidation. In August 2014, the FASB updated the accounting standard related to consolidation of collateralized financing entities. The update applies to reporting entities that consolidate a collateralized financing entity and measures all financial assets and liabilities of the collateralized financing entity at fair value. The update provides a measurement alternative which would allow an entity to measure both the financial assets and financial liabilities at the fair value of the more observable of the fair value of the financial assets or financial liabilities. When the measurement alternative is elected, the reporting entity’s net income should reflect its own economic interests in the collateralized financing entity, including changes in the fair value of the beneficial interests retained by the reporting entity and beneficial interests that represent compensation for services. If the measurement alternative is not elected, the financial assets and financial liabilities should be measured separately in accordance with the requirements of the fair value accounting standard. Any difference in the fair value of the assets and liabilities would be recorded to net income attributable to the reporting entity. The standard is effective for interim and annual periods beginning after December 15, 2015. The Company adopted the standard on January 1, 2016 and elected the measurement alternative using the modified retrospective approach. The adoption of the standard did not have a material impact on the Company’s consolidated results of operations and financial condition after the deconsolidation of several CLOs noted above. Compensation – Stock Compensation In June 2014, the FASB updated the accounting standards related to stock compensation. The update clarifies the accounting for share-based payments with a performance target that could be achieved after the requisite service period. The update specifies the performance target should not be reflected in estimating the grant-date fair value of the award. Instead, the probability of achieving the performance target should impact vesting of the award. The standard is effective for interim and annual periods beginning after December 15, 2015. The Company adopted the standard on January 1, 2016. The adoption did not have a material impact on the Company’s consolidated results of operations and financial condition. Future Adoption of New Accounting Standards Financial Instruments - Measurement of Credit Losses In June 2016, the FASB updated the accounting standards related to accounting for credit losses on certain types of financial instruments. The update replaces the current incurred loss model for estimating credit losses with a new model that requires an entity to estimate the credit losses expected over the life of the asset. Generally, the initial estimate of the expected credit losses and subsequent changes in the estimate will be reported in current period earnings and recorded through an allowance for credit losses on the balance sheet. The current credit loss model for Available-for-Sale debt securities does not change; however, the credit loss calculation and subsequent recoveries are required to be recorded through an allowance. The standard is effective for interim and annual periods beginning after December 15, 2019. Early adoption will be permitted for interim and annual periods beginning after December 15, 2018. A modified retrospective cumulative adjustment to retained earnings should be recorded as of the first reporting period in which the guidance is effective for loans, receivables, and other financial instruments subject to the new expected credit loss model. Prospective adoption is required for establishing an allowance related to Available-for-Sale debt securities, certain beneficial interests, and financial assets purchased with a more-than-insignificant amount of credit deterioration since origination. The Company is currently evaluating the impact of the standard on its consolidated results of operations and financial condition. Compensation – Stock Compensation In March 2016, the FASB updated the accounting standards related to employee share-based payments. The update requires all excess tax benefits and tax deficiencies to be recognized as income tax expense or benefit in the income statement. This change is required to be applied prospectively to excess tax benefits and tax deficiencies resulting from settlements after the date of adoption. No adjustment is recorded for any excess tax benefits or tax deficiencies previously recorded in additional paid in capital. The update also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows. This provision can be applied on either a prospective or retrospective basis. The update permits entities to make an accounting policy election to recognize forfeitures as they occur rather than estimating forfeitures to determine the recognition of expense for share-based payment awards. If elected, this provision is required to be adopted on a modified retrospective approach. The update also changes the limit of the amount withheld upon settlement of an award to satisfy the employer’s tax withholding requirement without causing the award to be classified as a liability. Under current guidance, the amount is limited to the employer’s minimum statutory tax withholding requirement. The update allows entities to withhold an amount up to the employees’ maximum individual tax rate in the relevant jurisdiction. This provision is required to be adopted using a modified retrospective approach, with a cumulative effect adjustment to opening retained earnings for any outstanding liability awards that qualify for equity classification under the update. The standard is effective for interim and annual periods beginning after December 15, 2016 with early adoption permitted. The Company is currently evaluating the impact of the standard on its consolidated results of operations, financial condition and cash flows. Leases - Recognition of Lease Assets and Liabilities on Balance Sheet In February 2016, the FASB updated the accounting standards for leases. The update was issued to increase transparency and comparability for the accounting of lease transactions. The standard will require most lease transactions for lessees to be recorded on the balance sheet as lease assets and lease liabilities and both quantitative and qualitative disclosures about leasing arrangements. The standard is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. The update should be applied at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of the standard on its consolidated results of operations and financial condition. Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB updated the accounting standards on the recognition and measurement of financial instruments. The update requires entities to carry marketable equity securities, excluding investments in securities that qualify for the equity method of accounting, at fair value with changes in fair value reflected in net income each reporting period . The update affects other aspects of accounting for equity instruments, as well as the accounting for financial liabilities utilizing the fair value option. The update eliminates the requirement to disclose the methods and assumptions used to estimate the fair value of financial assets or liabilities held at cost on the balance sheet and requires entities to use the exit price notion when measuring the fair value of financial instruments. The standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted for certain provisions. Generally, the update should be applied using a modified retrospective approach by recording a cumulative-effect adjustment to equity at the beginning of the period of adoption. The Company is currently evaluating the impact of the standard on its consolidated results of operations and financial condition. Insurance – Disclosure about Short-Duration Contracts In May 2015, the FASB updated the accounting standard for short-duration insurance contracts. The update requires enhanced disclosures about an insurance entity’s initial claim estimates and subsequent adjustments to those estimates, methodologies and judgements in estimating claims and the timing, frequency and severity of claims. The standard is effective for annual periods beginning after December 15, 2015 and interim periods within annual periods beginning after December 15, 2016 with early adoption permitted. The disclosures should be applied retrospectively by providing comparative disclosures for each period presented, except for those requirements that apply only to the current period. There will be no impact of the standard on the Company’s consolidated results of operations and financial condition. Revenue from Contracts with Customers In May 2014, the FASB updated the accounting standards for revenue from contracts with customers. The update provides a five step revenue recognition model for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers (unless the contracts are in the scope of other standards). The standard also updates the accounting for certain costs associated with obtaining and fulfilling a customer contract and requires disclosure of quantitative and qualitative information that enables users of financial statements to understand the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. Subsequent related updates provide clarification on certain revenue recognition guidance in the new standard. The standard is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted for interim and annual periods beginning after December 15, 2016. The standard may be applied retrospectively for all periods presented or retrospectively with a cumulative-effect adjustment at the date of adoption. The Company is currently evaluating the impact of the standard on its consolidated results of operations, financial condition and disclosures. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2016 | |
Variable Interest Entities [Abstract] | |
Variable interest entities [Text Block] | Variable Interest Entities The Company provides asset management services to investment entities which are considered to be VIEs, such as CLOs, hedge funds, property funds, certain international series funds (Open Ended Investment Companies and Societes d’Investissement A Capital Variable) and private equity funds (collectively, “investment entities”), which 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 certain investment entities (collectively, “consolidated investment entities”). If the Company is deemed to be the primary beneficiary, it will consolidate the VIE. The Company has no obligation to provide financial or other support to the non-consolidated VIEs beyond its investment nor has the Company provided any support to these entities. The carrying value of the Company’s investment in these entities, if any, is included in investments on the Consolidated Balance Sheets. Principles of Consolidation Effective January 1, 2016, the Company adopted ASU 2015-02 using the modified retrospective approach. See Note 2 for additional information on the adoption impact. 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 under the cost method when the Company owns less than a 20% voting interest and does not exercise significant influence. Pre-adoption of ASU 2015-02 A VIE that meets one of these criteria is assessed for consolidation under one of the following models: • If the VIE is a registered money market fund, or is an investment company, or has the financial characteristics of an investment company, and the following are true: (i) the reporting entity does not have an explicit or implicit obligation to fund the investment company’s losses; and (ii) the investment company is not a securitization entity, asset backed financing entity, or an entity previously considered a qualifying special purpose entity, then, the VIE will be consolidated by the entity that determines it stands to absorb a majority of the VIE’s expected losses or to receive a majority of the VIE’s expected residual returns. Entities that are assessed for consolidation under this framework include hedge funds, property funds, private equity funds, international series funds and venture capital funds. When determining whether the Company will absorb the majority of a VIE’s expected losses or receive a majority of a VIE’s expected returns, it analyzes the purpose and design of the VIE and identifies the variable interests it holds including those of related parties and de facto agents of the Company. The Company then quantitatively determines whether its variable interests will absorb a majority of the VIE’s expected losses or residual returns. If the Company will absorb the majority of the VIE’s expected losses or residual returns, the Company consolidates the VIE. • If the VIE does not meet the criteria above, then the VIE will be consolidated by the reporting entity that determines it has both: (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and (ii) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Entities that are assessed for consolidation under this framework include asset-backed financing entities such as CLOs and investments in qualified affordable housing partnerships. When evaluating entities for consolidation under this framework, 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 VIEs economic performance. In determining whether the Company has this power, it considers whether it is acting as an asset manager enabling it to direct the activities that most significantly impact the economic performance of an entity or if it is acting in a more passive role such as a limited partner without substantive rights to impact the economic performance of the entity. 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 management and incentive fees and investment returns and its obligation to absorb losses associated with any investment in the VIE in conjunction with other qualitative factors. Post-adoption of ASU 2015-02 A VIE will be 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 VIEs 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 updated guidance has a scope exception for reporting entities with interests in registered money market funds which do not have an explicit support agreement. 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 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 of certain CLOs. Prior to adoption of ASU 2015-02, the Company considered management fees and incentive fees to be variable interests in the determination as to whether the Company had the obligation to absorb potentially significant losses or the right to receive potentially significant benefits to the VIE (significant economics) and therefore consolidated all CLOs it managed except one. The Company did not have an investment in the non-consolidated CLO. Subsequent to adoption, the fees earned from the CLOs, which are at market and commensurate with the level of effort required to provide those services, are excluded in consideration of significant economics. As a result of excluding these fees, the Company deconsolidated certain CLOs as its ownership interest was not considered significant. See Note 2 for additional information on the adoption impact. The Company's maximum exposure to loss with respect to non-consolidated CLOs is limited to its amortized cost, which was $10 million as of June 30, 2016 . The Company classifies these investments as Available-for-Sale securities. See Note 4 for additional information on these investments. Property Funds The Company provides investment advice and related services to property funds, which are considered VIEs. For investment management services, the Company generally earns management fees based on the market value of assets under management, and in certain instances may also receive performance-based fees. The fee arrangement is at market and commensurate with the level of effort required to provide those services. Prior to adoption, the Company determined that consolidation was required for certain property funds as the Company was deemed to be a de facto agent of the third-party investors and required to consider their interest as its own. Subsequent to adoption, the Company deconsolidated all property funds. The Company is no longer required to consider the interest of the third-party investors as its own as the third-party investors are not under common control or a related party of the Company. As a result of excluding the interest of the third-party investors, the Company does not have significant economics and is not required to consolidate the property funds. See Note 2 for additional information on the adoption impact. The carrying value of the Company’s investment in property funds is reflected in other investments and was $30 million at June 30, 2016 . Hedge Funds and Private Equity Funds The Company has determined that consolidation is not required for hedge funds and private equity funds which are sponsored by the Company and considered VIEs. For investment management services, the Company earns management fees based on the market value of assets under management, and in certain instances may also receive performance-based fees. The fee arrangement is at market and commensurate with the level of effort required to provide those services. The Company's maximum exposure to loss with respect to its investment in these entities is limited to its carrying value. The carrying value of the Company’s investment in these entities is reflected in other investments and was $27 million and $29 million at June 30, 2016 and December 31, 2015 , respectively. International Series Funds The Company manages international series funds, which are considered VIEs. For investment management services, the Company earns management fees based on the market value of assets under management, and in certain instances may also receive performance-based fees. The fee arrangement is at market and commensurate with the level of effort required to provide those services. The Company does not consolidate these funds and its maximum exposure to loss is limited to its carrying value. The carrying value of the Company’s investment in these funds is reflected in other assets and was $28 million as of June 30, 2016 . Affordable Housing Partnerships The Company has variable interests in certain affordable housing partnerships for which it is not the primary beneficiary and therefore does not consolidate. The Company’s maximum exposure to loss as a result of its investments in affordable housing partnerships is limited to the carrying value of these investments. The carrying value of the Company’s investment in affordable housing partnerships is reflected in other investments and was $514 million and $517 million at June 30, 2016 and December 31, 2015 , respectively. 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, commercial mortgage backed securities 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 carrying value. See Note 4 for additional information on these structured investments. Fair Value of Assets and Liabilities 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 Company categorizes its fair value measurements according to a three-level hierarchy. See Note 10 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: June 30, 2016 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Corporate debt securities $ — $ 56 $ — $ 56 Common stocks 1 16 1 18 Other investments 4 4 — 8 Syndicated loans — 2,280 243 2,523 Total investments 5 2,356 244 2,605 Receivables — 19 — 19 Other assets — — 1 1 Total assets at fair value $ 5 $ 2,375 $ 245 $ 2,625 Liabilities Debt (1) $ — $ 2,749 $ — $ 2,749 Other liabilities — 88 — 88 Total liabilities at fair value $ — $ 2,837 $ — $ 2,837 (1) As the Company elected the measurement alternative effective January 1, 2016 , the carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. See Note 2 and below for additional discussion on the measurement alternative. The estimated fair value of the CLOs’ debt was $2.7 billion at June 30, 2016 . December 31, 2015 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Corporate debt securities $ — $ 154 $ — $ 154 Common stocks 74 46 3 123 Other investments 4 22 — 26 Syndicated loans — 5,738 529 6,267 Total investments 78 5,960 532 6,570 Receivables — 70 — 70 Other assets — — 2,065 2,065 Total assets at fair value $ 78 $ 6,030 $ 2,597 $ 8,705 Liabilities Debt $ — $ — $ 6,630 $ 6,630 Other liabilities — 221 — 221 Total liabilities at fair value $ — $ 221 $ 6,630 $ 6,851 The following tables provide a summary of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis: Common Stocks Syndicated Loans Other Assets (in millions) Balance, April 1, 2016 $ 2 $ 300 $ — Total gains included in: Net income — 8 (1) 1 (2) Purchases — 35 — Sales — (1 ) — Settlements — (15 ) — Transfers into Level 3 — 90 — Transfers out of Level 3 (1 ) (174 ) — Balance, June 30, 2016 $ 1 $ 243 $ 1 Changes in unrealized gains included in income relating to assets held at June 30, 2016 $ — $ 6 (1) $ — (1) Included in net investment income in the Consolidated Statements of Operations. (2) Included in other revenues in the Consolidated Statements of Operations. Common Stocks Syndicated Loans Other Assets Debt (in millions) Balance, April 1, 2015 $ 11 $ 467 $ 1,889 $ (5,933 ) Total gains (losses) included in: Net income — 1 (1) 67 (2) (23 ) (1) Other comprehensive loss — — 117 — Purchases — 119 4 — Sales — (15 ) (98 ) — Issues — — — (569 ) Settlements — (42 ) — 38 Transfers into Level 3 — 132 — — Transfers out of Level 3 — (205 ) — — Balance, June 30, 2015 $ 11 $ 457 $ 1,979 $ (6,487 ) Changes in unrealized gains (losses) included in income relating to assets and liabilities held at June 30, 2015 $ — $ — $ 58 (2) $ (23 ) (1) (1) Included in net investment income in the Consolidated Statements of Operations. (2) Included in other revenues in the Consolidated Statements of Operations. Common Stocks Syndicated Loans Other Assets Debt (in millions) Balance at January 1, 2016, previously reported $ 3 $ 529 $ 2,065 $ (6,630 ) Cumulative effect of change in accounting policies (3) (2 ) (304 ) (2,065 ) 6,630 Balance at January 1, 2016, as adjusted 1 225 — — Total gains (losses) included in: Net income — (1 ) (1) 1 (2) — Purchases — 50 — — Sales — (1 ) — — Settlements — (25 ) — — Transfers into Level 3 2 229 — — Transfers out of Level 3 (2 ) (234 ) — — Balance, June 30, 2016 $ 1 $ 243 $ 1 $ — Changes in unrealized gains included in income relating to assets and liabilities held at June 30, 2016 $ — $ 3 (1) $ — $ — (1) Included in net investment income in the Consolidated Statements of Operations. (2) Included in other revenues in the Consolidated Statements of Operations. (3) The cumulative effect of change in accounting policies includes the adoption impact of ASU 2015-02 and ASU 2014-13 – Consolidation: Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity (“ASU 2014-13”). Common Stocks Syndicated Loans Other Assets Debt (in millions) Balance at January 1, 2015 $ 7 $ 484 $ 1,935 $ (6,030 ) Total gains (losses) included in: Net income (1 ) (1) — 98 (2) 29 (1) Other comprehensive loss — — 7 — Purchases — 156 346 — Sales — (18 ) (407 ) — Issues — — — (569 ) Settlements — (73 ) — 83 Transfers into Level 3 5 387 — — Transfers out of Level 3 — (479 ) — — Balance, June 30, 2015 $ 11 $ 457 $ 1,979 $ (6,487 ) Changes in unrealized gains (losses) included in income relating to assets and liabilities held at June 30, 2015 $ (1 ) (1) $ (1 ) (1) $ — $ 29 (1) (1) Included in net investment income in the Consolidated Statements of Operations. (2) Included in other revenues in the Consolidated Statements of Operations. Securities and loans transferred from Level 2 to Level 3 represent assets with fair values that are now based on a single non-binding broker quote. Securities and loans transferred from Level 3 to Level 2 represent assets with fair values that are now obtained from a third-party pricing service with observable inputs or priced in active markets. During the reporting periods, there were no transfers between Level 1 and Level 2. The following table provides 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 held by consolidated investment entities at December 31, 2015 : Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Other assets (property funds) $ 2,060 Discounted cash flow / market comparables Equivalent yield 2.6 % – 11.5% 5.8 % Expected rental value (per square foot) $3 – $159 $51 CLO debt $ 6,630 Discounted cash flow Annual default rate 2.5% Discount rate 2.0 % – 11.8% 3.4 % Constant prepayment rate 5.0 % – 10.0% 9.9 % Loss recovery 36.4 % – 63.6% 62.9 % Level 3 measurements at December 31, 2015 not included in the table above and all Level 3 measurements at June 30, 2016 were obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company. Sensitivity of Fair Value Measurements to Changes in Unobservable Inputs Generally, a significant increase (decrease) in the expected rental value used in the fair value measurement of properties held by property funds in isolation would result in a significantly higher (lower) fair value measurement and a significant increase (decrease) in the equivalent yield in isolation would result in a significantly lower (higher) fair value measurement. Generally, a significant increase (decrease) in the annual default rate and discount rate used in the fair value measurement of the CLO’s debt in isolation would result in a significantly lower (higher) fair value measurement and a significant increase (decrease) in loss recovery in isolation would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the constant prepayment rate in isolation would result in a significantly higher (lower) fair value measurement. 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. 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 loans 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 the 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. See Note 10 for a description of the Company’s determination of the fair value of corporate debt securities, U.S. government and agencies obligations, 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. Other Assets At December 31, 2015, other assets primarily consisted of properties held in consolidated property funds managed by Threadneedle and were classified as Level 3. The property funds were deconsolidated effective January 1, 2016 upon the adoption of ASU 2015-02. The consolidated CLOs hold an immaterial amount of stock warrants recorded in other assets. Warrants are classified as Level 2 when the price is derived from observable market data. Warrants from an issuer whose securities are not priced in active markets are classified as Level 3. Liabilities Debt Effective January 1, 2016, the Company adopted ASU 2014-13 and elected the measurement alternative, which allows an entity to measure both the financial assets and financial liabilities at the fair value of the more observable of the fair value of the financial assets or financial liabilities. See Note 2 for additional information on ASU 2014-13. The fair value of the CLOs’ assets, typically syndicated bank loans with active secondary trading markets, 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. Under ASU 2014-13, the fair value of the CLOs’ debt is classified as Level 2. Prior to adoption of ASU 2014-13, the fair value of the CLOs’ debt was determined using a discounted cash flow model. Inputs used to determine the expected cash flows included assumptions about default, discount, prepayment and recovery rates of the CLOs’ underlying assets. Given the significance of the unobservable inputs to this fair value measurement, the fair value of the CLOs’ debt was classified as Level 3 prior to adoption of ASU 2014-13 . 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. Fair Value Option The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected: June 30, December 31, 2015 (in millions) Syndicated loans Unpaid principal balance $ 2,682 $ 6,635 Excess unpaid principal over fair value (159 ) (368 ) Fair value $ 2,523 $ 6,267 Fair value of loans more than 90 days past due $ 33 $ 24 Fair value of loans in nonaccrual status 33 24 Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both 79 72 Debt Unpaid principal balance $ 2,916 $ 7,063 Excess unpaid principal over carrying value (167 ) (433 ) Carrying value $ 2,749 (1) $ 6,630 (1) As the Company elected the measurement alternative effective January 1, 2016 , the carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. See Note 2 and above for additional discussion on the measurement alternative. The estimated fair value of the CLOs’ debt was $2.7 billion at June 30, 2016 . 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 and gains and losses on sales of investments are also recorded in net investment income. 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 losses recognized in net investment income related to changes in the fair value of financial assets and liabilities for which the fair value option was elected were $1 million and $12 million for the three months ended June 30, 2016 and 2015 , respectively. Total net gains (losses) recognized in net investment income related to changes in the fair value of financial assets and liabilities for which the fair value option was elected were $(5) million and $29 million for the six months ended June 30, 2016 and 2015 , respectively. Debt of the consolidated investment entities and the stated interest rates were as follows: Carrying Value Weighted Average Interest Rate June 30, December 31, June 30, December 31, (in millions) Debt of consolidated CLOs due 2019-2026 $ 2,749 $ 6,630 2.1 % 1.6 % Floating rate revolving credit borrowings due 2017-2020 — (1) 901 — 2.8 Total $ 2,749 $ 7,531 (1) The property funds were deconsolidated effective January 1, 2016 upon adoption of ASU 2015-02. The debt of the consolidated CLOs has both fixed and floating interest rates, which range from 0% to 9.2% . The interest rates on the debt of CLOs are weighted average rates based on the outstanding principal and contractual interest rates. The carrying value of the floating rate revolving credit borrowings represents the outstanding principal amount of debt of certain consolidated property funds . The fair value of this debt was $901 million as of December 31, 2015 . The property funds have entered into interest rate swaps and collars to manage the interest rate exposure on the floating rate revolving credit borrowings. The fair value of these derivative instruments is recorded gross and was a liability of $8 million at December 31, 2015 . The overall effective interest rate reflecting the impact of the derivative contracts was 3.2% at December 31, 2015 . |
Investments
Investments | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments [Text Block] | Investments The following is a summary of Ameriprise Financial investments: June 30, December 31, (in millions) Available-for-Sale securities, at fair value $ 30,158 $ 28,673 Mortgage loans, net 3,017 3,359 Policy and certificate loans 830 824 Other investments 1,260 1,288 Total $ 35,265 $ 34,144 The following is a summary of net investment income: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Investment income on fixed maturities $ 343 $ 355 $ 686 $ 709 Net realized gains (losses) 5 5 (11 ) 15 Affordable housing partnerships (11 ) (10 ) (18 ) (18 ) Other 5 19 (12 ) 42 Consolidated investment entities 30 54 58 159 Total $ 372 $ 423 $ 703 $ 907 Available-for-Sale securities distributed by type were as follows: June 30, 2016 Description of Securities Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Noncredit OTTI (1) (in millions) Corporate debt securities $ 15,061 $ 1,455 $ (66 ) $ 16,450 $ 4 Residential mortgage backed securities 6,442 148 (52 ) 6,538 (9 ) Commercial mortgage backed securities 2,825 139 — 2,964 — Asset backed securities 1,387 45 (13 ) 1,419 4 State and municipal obligations 2,180 315 (15 ) 2,480 — U.S. government and agencies obligations 12 1 — 13 — Foreign government bonds and obligations 257 26 (7 ) 276 — Common stocks 8 10 — 18 5 Total $ 28,172 $ 2,139 $ (153 ) $ 30,158 $ 4 December 31, 2015 Description of Securities Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Noncredit OTTI (1) (in millions) Corporate debt securities $ 15,750 $ 894 $ (296 ) $ 16,348 $ 3 Residential mortgage backed securities 5,933 106 (66 ) 5,973 (12 ) Commercial mortgage backed securities 2,400 70 (14 ) 2,456 — Asset backed securities 1,273 34 (11 ) 1,296 — State and municipal obligations 2,105 213 (28 ) 2,290 — U.S. government and agencies obligations 66 2 — 68 — Foreign government bonds and obligations 218 17 (11 ) 224 — Common stocks 7 11 — 18 5 Total $ 27,752 $ 1,347 $ (426 ) $ 28,673 $ (4 ) (1) Represents the amount of other-than-temporary impairment (“OTTI”) losses in accumulated other comprehensive income (“AOCI”). Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period. As of June 30, 2016 and December 31, 2015 , investment securities with a fair value of $863 million and $1.0 billion , respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $225 million and $478 million , respectively, may be sold, pledged or rehypothecated by the counterparty. At June 30, 2016 and December 31, 2015 , fixed maturity securities comprised approximately 85% and 84% , respectively, of Ameriprise Financial 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. At June 30, 2016 and December 31, 2015 , the Company’s internal analysts rated $1.2 billion and $1.3 billion , respectively, of securities using criteria similar to those used by NRSROs. A summary of fixed maturity securities by rating was as follows: June 30, 2016 December 31, 2015 Ratings Amortized Cost Fair Value Percent of Total Fair Value Amortized Cost Fair Value Percent of Total Fair Value (in millions, except percentages) AAA $ 8,087 $ 8,360 28 % $ 7,147 $ 7,289 25 % AA 1,731 1,987 7 1,732 1,930 7 A 5,140 5,773 19 5,131 5,507 19 BBB 11,512 12,365 41 12,052 12,353 43 Below investment grade 1,694 1,655 5 1,683 1,576 6 Total fixed maturities $ 28,164 $ 30,140 100 % $ 27,745 $ 28,655 100 % At June 30, 2016 and December 31, 2015 , approximately 49% and 53% , respectively, of the securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any other issuer were greater than 10% of total equity. The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position: Description of Securities June 30, 2016 Less than 12 months 12 months or more Total Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses (in millions, except number of securities) Corporate debt securities 46 $ 454 $ (14 ) 53 $ 568 $ (52 ) 99 $ 1,022 $ (66 ) Residential mortgage backed securities 103 1,389 (13 ) 173 1,248 (39 ) 276 2,637 (52 ) Asset backed securities 36 346 (9 ) 23 316 (4 ) 59 662 (13 ) State and municipal obligations 5 17 — 6 126 (15 ) 11 143 (15 ) Foreign government bonds and obligations 2 7 — 16 31 (7 ) 18 38 (7 ) Total 192 $ 2,213 $ (36 ) 271 $ 2,289 $ (117 ) 463 $ 4,502 $ (153 ) Description of Securities December 31, 2015 Less than 12 months 12 months or more Total Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses (in millions, except number of securities) Corporate debt securities 347 $ 5,150 $ (220 ) 48 $ 454 $ (76 ) 395 $ 5,604 $ (296 ) Residential mortgage backed securities 123 1,869 (16 ) 164 1,350 (50 ) 287 3,219 (66 ) Commercial mortgage backed securities 58 695 (13 ) 4 49 (1 ) 62 744 (14 ) Asset backed securities 50 455 (7 ) 14 254 (4 ) 64 709 (11 ) State and municipal obligations 31 100 (1 ) 5 110 (27 ) 36 210 (28 ) Foreign government bonds and obligations 9 39 (2 ) 15 27 (9 ) 24 66 (11 ) Total 618 $ 8,308 $ (259 ) 250 $ 2,244 $ (167 ) 868 $ 10,552 $ (426 ) As part of Ameriprise Financial’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities is attributable to a decrease in interest rates as well as a tightening of credit spreads. The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Operations for other-than-temporary impairments related to credit losses on Available-for-Sale securities for which a portion of the securities’ total other-than-temporary impairments was recognized in other comprehensive income (loss) (“OCI”): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Beginning balance $ 81 $ 99 $ 85 $ 98 Credit losses for which an other-than-temporary impairment was not previously recognized — — 1 — Credit losses for which an other-than-temporary impairment was previously recognized — — — 1 Reductions for securities sold during the period (realized) — (14 ) (5 ) (14 ) Ending balance $ 81 $ 85 $ 81 $ 85 Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in earnings were as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Gross realized gains $ 10 $ 6 $ 14 $ 23 Gross realized losses (5 ) (1 ) (9 ) (6 ) Other-than-temporary impairments — — (1 ) (1 ) Total $ 5 $ 5 $ 4 $ 16 Other-than-temporary impairments for the six months ended June 30, 2016 primarily related to credit losses on asset backed securities. Other-than-temporary impairments for the six months ended June 30, 2015 primarily related to credit losses on non-agency residential mortgage backed securities. See Note 13 for a rollforward of net unrealized investment gains (losses) included in AOCI. Available-for-Sale securities by contractual maturity at June 30, 2016 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 887 $ 897 Due after one year through five years 7,240 7,721 Due after five years through 10 years 4,812 5,076 Due after 10 years 4,571 5,525 17,510 19,219 Residential mortgage backed securities 6,442 6,538 Commercial mortgage backed securities 2,825 2,964 Asset backed securities 1,387 1,419 Common stocks 8 18 Total $ 28,172 $ 30,158 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, as well as common stocks, were not included in the maturities distribution. |
Financing Receivables
Financing Receivables | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Financing Receivables [Text Block] | Financing Receivables The Company’s financing receivables include commercial mortgage loans, syndicated loans, consumer loans, policy loans, certificate loans and margin loans. Commercial mortgage loans, syndicated loans, consumer loans, policy loans and certificate loans are reflected in investments. Margin loans are recorded in receivables. Allowance for Loan Losses Policy and certificate loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy and certificate loans, the Company does not record an allowance for loan losses. The Company monitors collateral supporting margin loans and requests additional collateral when necessary in order to mitigate the risk of loss. As there is minimal risk of loss related to margin loans, the allowance for loan losses is immaterial. The following table presents a rollforward of the allowance for loan losses for the six months ended and the ending balance of the allowance for loan losses by impairment method: June 30, 2016 2015 (in millions) Beginning balance $ 32 $ 35 Charge-offs — (2 ) Provisions (1 ) 1 Ending balance $ 31 $ 34 Individually evaluated for impairment $ 2 $ 6 Collectively evaluated for impairment 29 28 The recorded investment in financing receivables by impairment method was as follows: June 30, December 31, (in millions) Individually evaluated for impairment $ 21 $ 34 Collectively evaluated for impairment 3,550 3,910 Total $ 3,571 $ 3,944 As of June 30, 2016 and December 31, 2015 , the Company’s recorded investment in financing receivables individually evaluated for impairment for which there was no related allowance for loan losses was $16 million and $21 million , respectively. Unearned income, unamortized premiums and discounts, and net unamortized deferred fees and costs are not material to the Company’s total loan balance. During the three months ended June 30, 2016 and 2015 , the Company purchased $29 million and $28 million , respectively, and sold nil and $1 million , respectively, primarily of syndicated loans. During the six months ended June 30, 2016 and 2015 , the Company purchased $43 million and $41 million , respectively, and sold $271 million and $7 million , respectively, of loans. The loans sold during the six months ended June 30, 2016 consisted of consumer loans, which were sold in the first quarter of 2016. See below for additional discussion on the sale of these loans. The Company has not acquired any loans with deteriorated credit quality as of the acquisition date. Credit Quality Information Nonperforming loans, which are generally loans 90 days or more past due, were $10 million as of both June 30, 2016 and December 31, 2015 , 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. Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates as necessary. Commercial mortgage loans which management has assigned its highest risk rating were nil and 1% of total commercial mortgage loans at June 30, 2016 and December 31, 2015 , respectively. 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. 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 June 30, December 31, June 30, December 31, (in millions) East North Central $ 201 $ 211 7 % 8 % East South Central 77 74 3 3 Middle Atlantic 207 210 8 8 Mountain 258 248 10 9 New England 109 123 4 4 Pacific 734 741 27 27 South Atlantic 773 782 28 28 West North Central 219 229 8 8 West South Central 135 137 5 5 2,713 2,755 100 % 100 % Less: allowance for loan losses 21 21 Total $ 2,692 $ 2,734 Concentrations of credit risk of commercial mortgage loans by property type were as follows: Loans Percentage June 30, December 31, June 30, December 31, (in millions) Apartments $ 503 $ 504 19 % 18 % Hotel 34 35 1 1 Industrial 440 459 16 17 Mixed use 37 35 1 1 Office 513 541 19 20 Retail 972 984 36 36 Other 214 197 8 7 2,713 2,755 100 % 100 % Less: allowance for loan losses 21 21 Total $ 2,692 $ 2,734 Syndicated Loans The recorded investment in syndicated loans at June 30, 2016 and December 31, 2015 was $528 million and $553 million , respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. The primary credit indicator for syndicated loans is whether the loans are performing in accordance with the contractual terms of the syndication. Total nonperforming syndicated loans at June 30, 2016 and December 31, 2015 were $10 million and $6 million , respectively. Consumer Loans The recorded investment in consumer loans at June 30, 2016 and December 31, 2015 was $330 million and $636 million , respectively. The Company considers the credit worthiness of borrowers (FICO score), collateral characteristics such as loan-to-value (“LTV”) and geographic concentration in determining the allowance for loan losses for consumer loans. At a minimum, management updates FICO scores and LTV ratios semiannually. As of June 30, 2016 and December 31, 2015 , approximately 3% and 4% , respectively, of consumer loans had FICO scores below 640 . As of June 30, 2016 and December 31, 2015 , nil and approximately 2% , respectively, of the Company’s consumer loans had LTV ratios greater than 90% . The Company’s most significant geographic concentration for consumer loans is in California representing 52% and 37% of the portfolio as of June 30, 2016 and December 31, 2015 , respectively, and in Colorado and Washington representing 17% and 14% , respectively, of the portfolio as of June 30, 2016 . No other state represents more than 10% of the total consumer loan portfolio. On March 30, 2016, the Company sold $271 million of its consumer loans to a third party. The Company received cash proceeds of $260 million and recognized a loss of $11 million . Troubled Debt Restructurings The recorded investment in restructured loans was not material as of June 30, 2016 and December 31, 2015 . The troubled debt restructurings did not have a material impact to the Company’s allowance for loan losses or income recognized for the three months and six months ended June 30, 2016 and 2015 . 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 | 6 Months Ended |
Jun. 30, 2016 | |
Deferred Acquisition Costs and Deferred Sales Inducement Costs | |
Deferred acquisition costs and deferred sales inducement costs [Text Block] | Deferred Acquisition Costs and Deferred Sales Inducement Costs The balances of and changes in DAC were as follows: 2016 2015 (in millions) Balance at January 1 $ 2,725 $ 2,608 Capitalization of acquisition costs 166 172 Amortization (197 ) (169 ) Impact of change in net unrealized securities (gains) losses (94 ) 47 Balance at June 30 $ 2,600 $ 2,658 The balances of and changes in DSIC, which is included in other assets, were as follows: 2016 2015 (in millions) Balance at January 1 $ 335 $ 362 Capitalization of sales inducement costs 2 2 Amortization (22 ) (25 ) Impact of change in net unrealized securities (gains) losses (14 ) 7 Balance at June 30 $ 301 $ 346 |
Policyholder Account Balances,
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities [Text Block] | Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities Policyholder account balances, future policy benefits and claims consisted of the following: June 30, December 31, (in millions) Policyholder account balances Fixed annuities $ 10,889 $ 11,239 Variable annuity fixed sub-accounts 5,060 4,912 Variable universal life (“VUL”)/universal life (“UL”) insurance 2,947 2,897 Indexed universal life (“IUL”) insurance 910 808 Other life insurance 775 794 Total policyholder account balances 20,581 20,650 Future policy benefits Variable annuity guaranteed minimum withdrawal benefits (“GMWB”) 2,156 1,057 Variable annuity guaranteed minimum accumulation benefits (“GMAB”) 44 — Other annuity liabilities 120 31 Fixed annuities life contingent liabilities 1,499 1,501 Equity indexed annuities (“EIA”) 26 27 Life, disability income and long term care insurance 5,348 5,112 VUL/UL and other life insurance additional liabilities 527 452 Total future policy benefits 9,720 8,180 Policy claims and other policyholders’ funds 941 869 Total policyholder account balances, future policy benefits and claims $ 31,242 $ 29,699 Separate account liabilities consisted of the following: June 30, December 31, (in millions) Variable annuity $ 69,520 $ 69,333 VUL insurance 6,571 6,637 Other insurance 33 34 Threadneedle investment liabilities 4,106 4,345 Total $ 80,230 $ 80,349 |
Variable Annuity and Insurance
Variable Annuity and Insurance Guarantees | 6 Months Ended |
Jun. 30, 2016 | |
Insurance [Abstract] | |
Variable Annuity and Insurance Guarantees [Text Block] | Variable Annuity and Insurance Guarantees The majority of the variable annuity contracts offered by the Company contain guaranteed minimum death benefit (“GMDB”) provisions. The Company also offers variable annuities with death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as gain gross-up (“GGU”) benefits. In addition, the Company offers contracts with GMWB and GMAB provisions. The Company previously offered contracts containing guaranteed minimum income benefit (“GMIB”) provisions. Certain UL policies offered by the Company 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) June 30, 2016 December 31, 2015 Total Contract Value Contract Value in Separate Accounts Net Amount at Risk Weighted Average Attained Age Total Contract Value Contract Value in Separate Accounts Net Amount at Risk Weighted Average Attained Age (in millions, except age) GMDB: Return of premium $ 55,533 $ 53,623 $ 264 65 $ 54,716 $ 52,871 $ 297 65 Five/six-year reset 9,036 6,389 46 65 9,307 6,731 78 65 One-year ratchet 6,587 6,214 183 67 6,747 6,379 266 67 Five-year ratchet 1,581 1,522 12 64 1,613 1,556 20 63 Other 920 899 84 71 887 869 82 71 Total — GMDB $ 73,657 $ 68,647 $ 589 65 $ 73,270 $ 68,406 $ 743 65 GGU death benefit $ 1,050 $ 998 $ 109 68 $ 1,056 $ 1,004 $ 113 67 GMIB $ 251 $ 232 $ 14 68 $ 270 $ 251 $ 17 68 GMWB: GMWB $ 2,891 $ 2,882 $ 2 69 $ 3,118 $ 3,109 $ 2 69 GMWB for life 38,476 38,351 409 66 37,301 37,179 330 66 Total — GMWB $ 41,367 $ 41,233 $ 411 66 $ 40,419 $ 40,288 $ 332 66 GMAB $ 3,779 $ 3,769 $ 26 58 $ 4,018 $ 4,006 $ 31 58 (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 guarantees is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB and GMWB guarantees is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero. The present value is calculated using a discount rate that is consistent with assumptions embedded in the Company’s annuity pricing models. The following table provides information related to insurance guarantees for which the Company has established additional liabilities: June 30, 2016 December 31, 2015 Net Amount Weighted Average Attained Age Net Amount Weighted Average Attained Age (in millions, except age) UL secondary guarantees $ 6,301 64 $ 6,601 63 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 & GGU GMIB GMWB (1) GMAB (1) UL (in millions) Balance at January 1, 2015 $ 9 $ 7 $ 693 $ (41 ) $ 263 Incurred claims 1 — (225 ) (4 ) 45 Paid claims (1 ) — — — (12 ) Balance at June 30, 2015 $ 9 $ 7 $ 468 $ (45 ) $ 296 Balance at January 1, 2016 $ 14 $ 8 $ 1,057 $ — $ 332 Incurred claims 3 — 1,099 45 44 Paid claims (6 ) — — (1 ) (12 ) Balance at June 30, 2016 $ 11 $ 8 $ 2,156 $ 44 $ 364 (1) The incurred claims for GMWB and GMAB represent the total change in the liabilities (contra liabilities). 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: June 30, December 31, (in millions) Mutual funds: Equity $ 40,061 $ 39,806 Bond 23,659 23,700 Other 5,248 5,241 Total mutual funds $ 68,968 $ 68,747 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt [Text Block] | Debt The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows: Outstanding Balance Stated Interest Rate June 30, December 31, June 30, December 31, (in millions) Long-term debt: Senior notes due 2019 $ 300 $ 300 7.3 % 7.3 % Senior notes due 2020 750 750 5.3 5.3 Senior notes due 2023 750 750 4.0 4.0 Senior notes due 2024 550 550 3.7 3.7 Junior subordinated notes due 2066 — 245 — 7.5 Capitalized lease obligations 55 60 Other (1) 47 37 Total long-term debt 2,452 2,692 Short-term borrowings: Federal Home Loan Bank (“FHLB”) advances 150 150 0.6 0.5 Repurchase agreements 50 50 0.7 0.5 Total short-term borrowings 200 200 Total $ 2,652 $ 2,892 (1) Amounts include adjustments for fair value hedges on the Company’s long-term debt and unamortized discount and debt issuance costs. See Note 12 for information on the Company’s fair value hedges. Long-term Debt The Company’s credit facility contain various administrative, reporting, legal and financial covenants. The Company was in compliance with all such covenants at both June 30, 2016 and December 31, 2015 . During the three months ended March 31, 2016, the Company extinguished $16 million o f its junior subordinated notes due 2066 in open market transactions and recognized a gain of less than $1 million . On June 1, 2016, the Company redeemed the remaining $229 million o f its junior subordinated notes due 2066 at a redemption price equal to 100% of the principal balance of the notes plus accrued and compounded interest. The Company recognized an expense for the remaining unamortized debt issuance costs on the notes in the second quarter of 2016. Short-term Borrowings The Company enters into repurchase agreements in exchange for cash, which it accounts for as secured borrowings and has pledged Available-for-Sale securities to collateralize its obligations under the repurchase agreements. As of both June 30, 2016 and December 31, 2015 , the Company has pledged $30 million of agency residential mortgage backed securities and $22 million of commercial mortgage backed securities. The remaining maturity of outstanding repurchase agreements was less than one month as of both June 30, 2016 and December 31, 2015 . The stated interest rate of the repurchase agreements is a weighted average annualized interest rate on repurchase agreements held as of the balance sheet date. The Company’s life insurance subsidiary is a member of the 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 $416 million and $290 million at June 30, 2016 and December 31, 2015 , respectively. The remaining maturity of outstanding FHLB advances was less than four months and three months as of June 30, 2016 and December 31, 2015 , respectively. The stated interest rate of the FHLB advances is a weighted average annualized interest rate on the outstanding borrowings as of the balance sheet date. The Company has an unsecured revolving credit facility for up to $500 million that expires in May 2020. Under the terms of the underlying credit agreement for the facility, the Company may increase the amount of this facility up to $750 million upon satisfaction of certain approval requirements. Available borrowings under the agreement are reduced by any outstanding letters of credit. The Company had no borrowings outstanding under this facility at both June 30, 2016 and December 31, 2015 and outstanding letters of credit issued against this facility were $1 million as of June 30, 2016 . |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair values of assets and liabilities [Text Block] | 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 of Ameriprise Financial measured at fair value on a recurring basis: June 30, 2016 Level 1 Level 2 Level 3 Total (in millions) Assets Cash equivalents $ 70 $ 2,318 $ — $ 2,388 Available-for-Sale securities: Corporate debt securities — 15,100 1,350 16,450 Residential mortgage backed securities — 6,385 153 6,538 Commercial mortgage backed securities — 2,964 — 2,964 Asset backed securities — 1,241 178 1,419 State and municipal obligations — 2,480 — 2,480 U.S. government and agencies obligations 11 2 — 13 Foreign government bonds and obligations — 276 — 276 Common stocks 4 9 — 13 Common stocks measured at NAV 5 (1) Total Available-for-Sale securities 15 28,457 1,681 30,158 Trading securities 5 30 — 35 Separate account assets measured at NAV 80,230 (1) Investments segregated for regulatory purposes 226 — — 226 Other assets: Interest rate derivative contracts 1 3,939 — 3,940 Equity derivative contracts 68 1,490 — 1,558 Foreign exchange derivative contracts 36 89 — 125 Other derivative contracts — 6 2 8 Total other assets 105 5,524 2 5,631 Total assets at fair value $ 421 $ 36,329 $ 1,683 $ 118,668 Liabilities Policyholder account balances, future policy benefits and claims: EIA embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 408 408 GMWB and GMAB embedded derivatives — — 1,965 1,965 (2) Total policyholder account balances, future policy benefits and claims — 5 2,373 2,378 (3) Customer deposits — 7 — 7 Other liabilities: Interest rate derivative contracts 1 1,865 — 1,866 Equity derivative contracts 41 1,771 — 1,812 Credit derivative contracts — 12 — 12 Foreign exchange derivative contracts 5 34 — 39 Other derivative contracts 2 96 — 98 Other 6 5 — 11 Total other liabilities 55 3,783 — 3,838 Total liabilities at fair value $ 55 $ 3,795 $ 2,373 $ 6,223 (1) Amounts are comprised of certain investments 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. See Note 2 for further information. (2) The fair value of the GMWB and GMAB embedded derivatives included $2.0 billion of individual contracts in a liability position and $51 million of individual contracts in an asset position. (3) The Company’s adjustment for nonperformance risk resulted in a $756 million cumulative decrease to the embedded derivatives. December 31, 2015 Level 1 Level 2 Level 3 Total (in millions) Assets Cash equivalents $ 80 $ 1,918 $ — $ 1,998 Available-for-Sale securities: Corporate debt securities — 14,923 1,425 16,348 Residential mortgage backed securities — 5,755 218 5,973 Commercial mortgage backed securities — 2,453 3 2,456 Asset backed securities — 1,134 162 1,296 State and municipal obligations — 2,290 — 2,290 U.S. government and agencies obligations 33 35 — 68 Foreign government bonds and obligations — 224 — 224 Common stocks 5 8 — 13 Common stocks measured at NAV — — — 5 (1) Total Available-for-Sale securities 38 26,822 1,808 28,673 Trading securities 6 18 — 24 Separate account assets measured at NAV 80,349 (1) Investments segregated for regulatory purposes 401 — — 401 Other assets: Interest rate derivative contracts — 1,940 — 1,940 Equity derivative contracts 92 1,495 — 1,587 Credit derivative contracts — 2 — 2 Foreign exchange derivative contracts 2 54 — 56 Other derivative contracts — 2 — 2 Total other assets at fair value and NAV 94 3,493 — 3,587 Total assets $ 619 $ 32,251 $ 1,808 $ 115,032 Liabilities Policyholder account balances, future policy benefits and claims: EIA embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 364 364 GMWB and GMAB embedded derivatives — — 851 851 (2) Total policyholder account balances, future policy benefits and claims — 5 1,215 1,220 (3) Customer deposits — 4 — 4 Other liabilities: Interest rate derivative contracts — 969 — 969 Equity derivative contracts 47 1,946 — 1,993 Foreign exchange derivative contracts 2 16 — 18 Other derivative contracts — 96 — 96 Other 1 12 — 13 Total other liabilities 50 3,039 — 3,089 Total liabilities at fair value $ 50 $ 3,048 $ 1,215 $ 4,313 (1) Amounts are comprised of certain investments 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. See Note 2 for further information. (2) The fair value of the GMWB and GMAB embedded derivatives included $994 million of individual contracts in a liability position and $143 million of individual contracts in an asset position. (3) The Company’s adjustment for nonperformance risk resulted in a $398 million cumulative decrease to the embedded derivatives. The following tables provide a summary of changes in Level 3 assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis: Available-for-Sale Securities Other Derivative Contracts Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance, April 1, 2016 $ 1,411 $ 174 $ 10 $ 170 $ 1,765 $ — Total gains (losses) included in: Net income (1 ) — — — (1 ) (1) — Other comprehensive income 13 2 — (3 ) 12 — Purchases 14 — — 15 29 2 Settlements (87 ) (23 ) (1 ) (1 ) (112 ) — Transfers into Level 3 — — — 12 12 — Transfers out of Level 3 — — (9 ) (15 ) (24 ) — Balance, June 30, 2016 $ 1,350 $ 153 $ — $ 178 $ 1,681 $ 2 Changes in unrealized gains (losses) relating to assets held at June 30, 2016 included in: Net investment income $ — $ — $ — $ — $ — $ — (1) Included in net investment income in the Consolidated Statements of Operations. Policyholder Account Balances, Future Policy Benefits and Claims IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, April 1, 2016 $ 382 $ 1,515 $ 1,897 Total losses included in: Net income 4 (1) 386 (2) 390 Issues 29 70 99 Settlements (7 ) (6 ) (13 ) Balance, June 30, 2016 $ 408 $ 1,965 $ 2,373 Changes in unrealized losses relating to liabilities held at June 30, 2016 included in: Interest credited to fixed accounts $ 4 $ — $ 4 Benefits, claims, losses and settlement expenses — 405 405 (1) Included in interest credited to fixed accounts in the Consolidated Statements of Operations. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. Available-for-Sale Securities Trading Securities Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Common Stocks Total (in millions) Balance, April 1, 2015 $ 1,526 $ 280 $ 20 $ 158 $ 2 $ 1,986 $ 1 Total losses included in: Net income (1 ) — — — — (1 ) (1) — Other comprehensive loss (19 ) — — — — (19 ) — Purchases 40 104 41 9 — 194 — Settlements (37 ) (13 ) (2 ) (12 ) — (64 ) — Transfers out of Level 3 — (92 ) (15 ) (20 ) (2 ) (129 ) — Balance, June 30, 2015 $ 1,509 $ 279 $ 44 $ 135 $ — $ 1,967 $ 1 Changes in unrealized losses relating to assets held at June 30, 2015 included in: Net investment income $ (1 ) $ — $ — $ — $ — $ (1 ) $ — (1) Included in net investment income in the Consolidated Statements of Operations. Policyholder Account Balances, Future Policy Benefits and Claims IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, April 1, 2015 $ 270 $ 827 $ 1,097 Total gains included in: Net income — (659 ) (1) (659 ) Issues 26 64 90 Settlements (4 ) 3 (1 ) Balance, June 30, 2015 $ 292 $ 235 $ 527 Changes in unrealized gains relating to liabilities held at June 30, 2015 included in: Benefits, claims, losses and settlement expenses $ — $ (651 ) $ (651 ) (1) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. Available-for-Sale Securities Other Derivative Contracts Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance, January 1, 2016 $ 1,425 $ 218 $ 3 $ 162 $ 1,808 $ — Cumulative effect of change in accounting policies — — — 21 21 — Total gains (losses) included in: Net income (2 ) — — (1 ) (3 ) (1) — Other comprehensive income 31 (1 ) — (6 ) 24 — Purchases 14 — 9 16 39 2 Settlements (118 ) (39 ) (3 ) (1 ) (161 ) — Transfers into Level 3 — — — 12 12 — Transfers out of Level 3 — (25 ) (9 ) (25 ) (59 ) — Balance, June 30, 2016 $ 1,350 $ 153 $ — $ 178 $ 1,681 $ 2 Changes in unrealized losses relating to assets held at June 30, 2016 included in: Net investment income $ (1 ) $ — $ — $ (1 ) $ (2 ) $ — (1) Included in net investment income in the Consolidated Statements of Operations. Policyholder Account Balances, Future Policy Benefits and Claims IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2016 $ 364 $ 851 $ 1,215 Total (gains) losses included in: Net income (4 ) (1) 988 (2) 984 Issues 61 138 199 Settlements (13 ) (12 ) (25 ) Balance, June 30, 2016 $ 408 $ 1,965 $ 2,373 Changes in unrealized (gains) losses relating to liabilities held at June 30, 2016 included in: Interest credited to fixed accounts $ (4 ) $ — $ (4 ) Benefits, claims, losses and settlement expenses — 1,021 1,021 (1) Included in interest credited to fixed accounts in the Consolidated Statements of Operations. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. Available-for-Sale Securities Trading Securities Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Common Stocks Total (in millions) Balance, January 1, 2015 $ 1,518 $ 206 $ 91 $ 169 $ 2 $ 1,986 $ 1 Total losses included in: Net income (1 ) — — — — (1 ) (1) — Other comprehensive loss (6 ) — — — — (6 ) — Purchases 55 219 41 32 — 347 — Settlements (57 ) (22 ) (3 ) (14 ) — (96 ) — Transfers into Level 3 — — 6 — — 6 — Transfers out of Level 3 — (124 ) (91 ) (52 ) (2 ) (269 ) — Balance, June 30, 2015 $ 1,509 $ 279 $ 44 $ 135 $ — $ 1,967 $ 1 Changes in unrealized losses relating to assets held at June 30, 2015 included in: Net investment income $ (1 ) $ — $ — $ — $ — $ (1 ) $ — (1) Included in net investment income in the Consolidated Statements of Operations. Policyholder Account Balances, Future Policy Benefits and Claims IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2015 $ 242 $ 479 $ 721 Total (gains) losses included in: Net income 14 (1) (379 ) (2) (365 ) Issues 45 128 173 Settlements (9 ) 7 (2 ) Balance, June 30, 2015 $ 292 $ 235 $ 527 Changes in unrealized (gains) losses relating to liabilities held at June 30, 2015 included in: Interest credited to fixed accounts $ 14 $ — $ 14 Benefits, claims, losses and settlement expenses — (373 ) (373 ) (1) Included in interest credited to fixed accounts in the Consolidated Statements of Operations. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $97 million and $(45) million , net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the three months ended June 30, 2016 and 2015 , respectively. The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $287 million and $(8) million , net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the six months ended June 30, 2016 and 2015 , respectively. Securities transferred from Level 3 primarily represent securities with fair values that are now obtained from a third-party pricing service with observable inputs. Securities transferred to Level 3 represent securities with fair values that are now based on a single non-binding broker quote. The Company recognizes transfers between levels of the fair value hierarchy as of the beginning of the quarter in which each transfer occurred. For assets and liabilities held at the end of the reporting periods that are measured at fair value on a recurring basis, there were no transfers between Level 1 and Level 2. 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: June 30, 2016 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 1,346 Discounted cash flow Yield/spread to U.S. Treasuries 0.5 % – 3.4% 1.6% Other derivative contracts $ 2 Option pricing model Correlation (1) 0.9 Asset backed securities $ 13 Discounted cash flow Annual short-term default rate 4.8% Annual long-term default rate 2.5% Discount rate 16.0% Constant prepayment rate 5.0 % – 10.0% 9.9% Loss recovery 36.4 % – 63.6% 62.8% IUL embedded derivatives $ 408 Discounted cash flow Nonperformance risk (2) 88 bps GMWB and GMAB embedded derivatives $ 1,965 Discounted cash flow Utilization of guaranteed withdrawals (3) 0.0 % – 75.6% Surrender rate 0.0 % – 59.1% Market volatility (4) 5.6 % – 22.3% Nonperformance risk (2) 88 bps December 31, 2015 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 1,411 Discounted cash flow Yield/spread to U.S. Treasuries 1.1 % – 3.8% 1.6% IUL embedded derivatives $ 364 Discounted cash flow Nonperformance risk (2) 68 bps GMWB and GMAB embedded derivatives $ 851 Discounted cash flow Utilization of guaranteed withdrawals (3) 0.0 % – 75.6% Surrender rate 0.0 % – 59.1% Market volatility (4) 5.4 % – 21.5% Nonperformance risk (2) 68 bps (1) Represents the correlation between equity returns and interest rates used in the valuation of the derivative contract. (2) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. (3) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. (4) Market volatility is implied volatility of fund of funds and managed volatility funds. 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. Sensitivity of Fair Value Measurements to Changes in Unobservable Inputs 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 result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the correlation used in the fair value measurement of Level 3 derivatives in isolation would result in a significantly (lower) higher fair value measurement. Significant increases (decreases) in the annual default rate and discount rate used in the fair value measurement of Level 3 asset backed securities in isolation, generally, would result in a significantly lower (higher) fair value measurement and a significant increase (decrease) in loss recovery in isolation would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the constant prepayment rate in isolation would result 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 result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in utilization and volatility used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result 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 result 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 system 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 Cash Equivalents Cash equivalents include highly liquid investments with original maturities of 90 days or less. Actively traded money market funds are measured at their NAV and 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. Investments (Available-for-Sale Securities and Trading 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, asset backed securities, state and municipal obligations and U.S. agency 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. Level 3 securities primarily include certain corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and asset backed securities. The fair value of corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and certain asset backed securities classified as Level 3 is 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 certain 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 certain asset backed securities is classified as Level 3. In addition to the general pricing controls, the Company reviews the broker prices to ensure that the broker quotes are reasonable and, when available, compares prices of privately issued securities to public issues from the same issuer to ensure that the implicit illiquidity premium applied to the privately placed investment is reasonable considering investment characteristics, maturity, and average life of the investment. 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. 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. Investments Segregated for Regulatory Purposes Investments segregated for regulatory purposes includes U.S. Treasuries that are classified as Level 1. Other Assets Derivatives that are measured using quoted prices in active markets, such as foreign currency forwards, or 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 fair value of certain derivatives measured using pricing models which include significant unobservable inputs are classified as Level 3 within the fair value hierarchy. Other derivative contracts consist of the Company’s macro hedge program. See Note 12 for further information on the macro hedge program. The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial at June 30, 2016 and December 31, 2015 . See Note 11 and Note 12 for further information on the credit risk of derivative instruments and related collateral. Liabilities Policyholder Account Balances, Future Policy Benefits and Claims The Company values the embedded derivatives attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculate fair value by discounting expected cash flows from benefits plus margins for profit, risk and expenses less embedded derivative fees. The projected cash flows used by these models include observable capital market assumptions and incorporate significant unobservable inputs related to contractholder behavior assumptions, implied volatility, and margins for risk, profit and expenses that the Company believes an exit 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 various Black-Scholes calculations to determine the fair value of the embedded derivatives associated with the provisions of its EIA and IUL products. Significant inputs to the EIA calculation include observable interest rates, volatilities and equity index levels and, therefore, are classified as Level 2. The fair value of the IUL embedded derivatives includes significant observable interest rates, volatilities and equity index levels and the significant unobservable estimate of the Company’s nonperformance risk. Given the significance of the nonperformance risk assumption to the fair value, the 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. The Company’s Corporate Actuarial Department calculates the fair value of the embedded derivatives on a monthly basis. During this process, control checks are performed to validate the completeness of the data. Actuarial management approves various components of the valuation along with the final results. The change in the fair value of the embedded derivatives is reviewed monthly with senior management. The Level 3 inputs into the valuation are consistent with the pricing assumptions and updated as experience develops. Significant unobservable inputs that reflect policyholder behavior are reviewed quarterly along with other valuation assumptions. Customer Deposits The Company uses various Black-Scholes calculations to determine the fair value of the embedded derivative liability associated with the provisions of its stock market certificates. The inputs to these calculations are primarily market observable and include interest rates, volatilities and equity index levels. As a result, these measurements are classified as Level 2. Other Liabilities Derivatives that are measured using quoted prices in active markets, such as foreign currency forwards, or 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. Other derivative contracts consist of the Company’s macro hedge program. See Note 12 for further information on the macro hedge program. The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial at June 30, 2016 and December 31, 2015 . See Note 11 and Note 12 for further information on the credit risk of derivative instruments and related collateral. Securities sold but not yet purchased include highly liquid investments which are short-term in nature. Securities sold but not yet purchased are measured using 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 and are classified as Level 2. During the reporting periods, there were no material assets or liabilities measured at fair value on a nonrecurring basis. The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value: June 30, 2016 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 3,017 $ — $ — $ 3,178 $ 3,178 Policy and certificate loans 830 — 1 806 807 Receivables 1,511 150 1,363 3 1,516 Restricted and segregated cash 2,640 2,640 — — 2,640 Other investments and assets 554 1 478 67 546 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 11,228 $ — $ — $ 12,349 $ 12,349 Investment certificate reserves 5,400 — — 5,391 5,391 Brokerage customer deposits 3,733 3,733 — — 3,733 Separate account liabilities measured at NAV 4,449 4,449 (1) Debt and other liabilities 2,895 234 2,786 109 3,129 December 31, 2015 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 3,359 $ — $ — $ 3,372 $ 3,372 Policy and certificate loans 824 — 1 803 804 Receivables 1,471 148 1,322 3 1,473 Restricted and segregated cash 2,548 2,548 — — 2,548 Other investments and assets 583 1 510 54 565 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 11,523 $ — $ — $ 12,424 $ 12,424 Investment certificate reserves 4,831 — — 4,823 4,823 Brokerage customer deposits 3,802 3,802 — — 3,802 Separate account liabilities measured at NAV 4,704 4,704 (1) Debt and other liabilities 3,173 202 2,958 113 3,273 (1) Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient. See Note 2 for further information. Mortgage Loans, Net The fair value of commercial mortgage loans, except those with significant credit deterioration, is determined by discounting contractual cash flows using discount rates that reflect current pricing for loans with similar remaining maturities, liquidity and characteristics including LTV ratio, occupancy rate, refinance risk, debt service coverage, location, and property condition. For commercial mortgage loans with significant credit deterioration, fair value is determined using the same adjustments as above with an additional adjustment for the Company’s estimate of the amount recoverable on the loan. Given the significant unobservable inputs to the valuation of commercial mortgage loans, these measurements are classified as Level 3. The fair value of consumer loans is determined by discounting estimated cash flows and incorporating adjustments for prepayment, administration expenses, loss severity, liquidity and credit loss estimates, with discount rates based on the Company’s estimate of current market conditions. The fair value of consumer loans is classified as Level 3 as the valuation includes significant unobservable inputs. Policy and Certificate Loans Policy loans represent loans made against the cash surrender value of the underlying life insurance or annuity product. These loans and the related interest are usually realized at death of the policyholder or contractholder or at surrender of the contract and are not transferable without the underlying insurance or annuity contract. The fair value of policy loans is determined by estimating expected cash flows discounted at rates based on the U.S. Treasury curve. Policy loans are classified as Level 3 as the discount rate used may be adjusted for the underlying performance of individual policies. Certificate loans represent loans made against and collateralized by the underlying certificate balance. These loans do not transfer to third parties separate from the underlying certificate. The outstanding balance of these loans is considered a reasonable estimate of fair value and is classified as Level 2. Receivables Brokerage margin loans are measured at outstanding balances, which are a reasonable estimate of fair value because of the sufficiency of the collateral and short term nature of these loans. Margin loans that are sufficiently collateralized are classified as Level 2. Margin loans that are not sufficiently collateralized are classified as Level 3. Securities borrowed require the Company to deposit cash or collateral with the lender. As the market value of the securities borrowed is monitored daily, the carrying value is a reasonable e |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities [Text Block] | Offsetting Assets and Liabilities Certain financial instruments and derivative instruments are eligible for offset in the Consolidated Balance Sheets. The Company’s derivative instruments, repurchase agreements and securities borrowing and lending agreements are subject to master netting arrangements 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. Securities borrowed and loaned result from transactions between the Company’s broker dealer subsidiary and other financial institutions and are recorded at the amount of cash collateral advanced or received. Securities borrowed and securities loaned are primarily equity securities. The Company’s securities borrowed and securities loaned transactions generally do not have a fixed maturity date and may be terminated by either party under customary terms. 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: June 30, 2016 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Gross Amounts Not Offset in the Financial Instruments (1) Cash Collateral Securities Collateral Net Amount (in millions) Derivatives: OTC $ 4,441 $ — $ 4,441 $ (2,546 ) $ (825 ) $ (1,026 ) $ 44 OTC cleared 1,170 — 1,170 (968 ) (201 ) — 1 Exchange-traded 20 — 20 (14 ) — — 6 Total derivatives 5,631 — 5,631 (3,528 ) (1,026 ) (1,026 ) 51 Securities borrowed 150 — 150 (45 ) — (104 ) 1 Total $ 5,781 $ — $ 5,781 $ (3,573 ) $ (1,026 ) $ (1,130 ) $ 52 December 31, 2015 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 Financial Instruments (1) Cash Collateral Securities Collateral Net Amount (in millions) Derivatives: OTC $ 3,129 $ — $ 3,129 $ (2,331 ) $ (391 ) $ (320 ) $ 87 OTC cleared 418 — 418 (314 ) (102 ) — 2 Exchange-traded 40 — 40 (3 ) — — 37 Total derivatives 3,587 — 3,587 (2,648 ) (493 ) (320 ) 126 Securities borrowed 148 — 148 (30 ) — (115 ) 3 Total $ 3,735 $ — $ 3,735 $ (2,678 ) $ (493 ) $ (435 ) $ 129 (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: June 30, 2016 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Amounts of Liabilities Presented in the Gross Amounts Not Offset in the Financial Instruments (1) Cash Collateral Securities Collateral Net Amount (in millions) Derivatives: OTC $ 2,746 $ — $ 2,746 $ (2,546 ) $ — $ (166 ) $ 34 OTC cleared 1,065 — 1,065 (968 ) (91 ) — 6 Exchange-traded 16 — 16 (14 ) (1 ) — 1 Total derivatives 3,827 — 3,827 (3,528 ) (92 ) (166 ) 41 Securities loaned 234 — 234 (45 ) — (183 ) 6 Repurchase agreements 50 — 50 — — (50 ) — Total $ 4,111 $ — $ 4,111 $ (3,573 ) $ (92 ) $ (399 ) $ 47 December 31, 2015 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Amounts of Liabilities Presented in the Gross Amounts Not Offset in the Financial Instruments (1) Cash Collateral Securities Collateral Net Amount (in millions) Derivatives: OTC $ 2,725 $ — $ 2,725 $ (2,331 ) $ — $ (393 ) $ 1 OTC cleared 345 — 345 (314 ) (25 ) — 6 Exchange-traded 6 — 6 (3 ) (1 ) — 2 Total derivatives 3,076 — 3,076 (2,648 ) (26 ) (393 ) 9 Securities loaned 203 — 203 (30 ) — (164 ) 9 Repurchase agreements 50 — 50 — — (50 ) — Total $ 3,329 $ — $ 3,329 $ (2,678 ) $ (26 ) $ (607 ) $ 18 (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 amounts of assets or liabilities presented in the Consolidated Balance Sheets 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. The Company’s freestanding derivative instruments are reflected in other assets and other liabilities. Repurchase agreements are reflected in short-term borrowings. Securities borrowing and lending agreements are reflected in receivables and other liabilities, respectively. See Note 12 for additional disclosures related to the Company’s derivative instruments, Note 9 for additional disclosures related to the Company’s repurchase agreements and Note 3 for information related to derivatives held by consolidated investment entities. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities [Text Block] | 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, foreign exchange 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. The Company’s freestanding derivative instruments are all 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 11 for additional information regarding the estimated fair value of the Company’s freestanding derivatives after considering the effect of master netting arrangements and collateral. 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: June 30, 2016 December 31, 2015 Notional Gross Fair Value Notional Gross Fair Value Assets (1) Liabilities (2)(3) Assets (1) Liabilities (2)(3) (in millions) Derivatives designated as hedging instruments Interest rate contracts $ 675 $ 66 $ — $ 675 $ 58 $ — Foreign exchange contracts 291 19 — — — — Total qualifying hedges 966 85 — 675 58 — Derivatives not designated as hedging instruments Interest rate contracts 74,431 3,874 1,866 63,798 1,882 969 Equity contracts 61,411 1,558 1,812 70,238 1,587 1,993 Credit contracts 861 — 12 600 2 — Foreign exchange contracts 5,095 106 39 4,408 56 18 Other contracts 2,048 8 98 3,760 2 96 Total non-designated hedges 143,846 5,546 3,827 142,804 3,529 3,076 Embedded derivatives GMWB and GMAB (4) N/A — 1,965 N/A — 851 IUL N/A — 408 N/A — 364 EIA N/A — 5 N/A — 5 SMC N/A — 7 N/A — 4 Total embedded derivatives N/A — 2,385 N/A — 1,224 Total derivatives $ 144,812 $ 5,631 $ 6,212 $ 143,479 $ 3,587 $ 4,300 N/A Not applicable. (1) The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. (2) The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and EIA embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. The fair value of the SMC embedded derivative liability is included in Customer deposits on the Consolidated Balance Sheets. (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 $2.6 billion and $1.6 billion at June 30, 2016 and December 31, 2015 , respectively. See Note 11 for additional information related to master netting arrangements and cash collateral. See Note 3 for information about derivatives held by consolidated VIEs. (4) The fair value of the GMWB and GMAB embedded derivatives at June 30, 2016 included $2.0 billion of individual contracts in a liability position and $51 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives at December 31, 2015 included $994 million of individual contracts in a liability position and $143 million of individual contracts in an asset position. See Note 10 for additional information regarding the Company’s fair value measurement of derivative instruments. At June 30, 2016 and December 31, 2015 , investment securities with a fair value of $1.2 billion and $323 million , respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $893 million and $193 million , respectively, may be sold, pledged or rehypothecated by the Company. At June 30, 2016 and December 31, 2015 , the Company had $52 million and nil , respectively, of securities that were sold, pledged or rehypothecated. In addition, at June 30, 2016 and December 31, 2015 , non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets. Derivatives Not Designated as Hedges The following tables present a summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations: Net Investment Income Banking and Deposit Interest Expense Distribution Expenses Interest Credited to Fixed Accounts Benefits, Claims, Losses and Settlement Expenses General and Administrative Expense (in millions) Three Months Ended June 30, 2016 Interest rate contracts $ (20 ) $ — $ — $ — $ 449 $ — Equity contracts — — 4 1 (96 ) — Credit contracts — — — — (15 ) — Foreign exchange contracts (2 ) — (1 ) — (19 ) 6 Other contracts — — — — 1 — GMWB and GMAB embedded derivatives — — — — (450 ) — IUL embedded derivatives — — — 3 — — SMC embedded derivatives — (1 ) — — — — Total gain (loss) $ (22 ) $ (1 ) $ 3 $ 4 $ (130 ) $ 6 Six Months Ended June 30, 2016 Interest rate contracts $ (60 ) $ — $ — $ — $ 1,204 $ — Equity contracts — (1 ) 2 (2 ) (161 ) 1 Credit contracts — — — — (31 ) — Foreign exchange contracts (2 ) — 2 — (54 ) 12 Other contracts — — — — (8 ) — GMWB and GMAB embedded derivatives — — — — (1,114 ) — IUL embedded derivatives — — — 17 — — Total gain (loss) $ (62 ) $ (1 ) $ 4 $ 15 $ (164 ) $ 13 Net Investment Income Banking and Deposit Interest Expense Distribution Expenses Interest Credited Benefits, Claims, Losses and Settlement Expenses General and Administrative Expense (in millions) Three Months Ended June 30, 2015 Interest rate contracts $ (1 ) $ — $ — $ — $ (562 ) $ — Equity contracts — — (1 ) (2 ) (137 ) — Credit contracts — — — — 14 — Foreign exchange contracts — — 1 — (2 ) — Other contracts — — — — (6 ) — GMWB and GMAB embedded derivatives — — — — 592 — IUL embedded derivatives — — — 4 — — Total gain (loss) $ (1 ) $ — $ — $ 2 $ (101 ) $ — Six Months Ended June 30, 2015 Interest rate contracts $ (1 ) $ — $ — $ — $ (176 ) $ — Equity contracts (2 ) 1 6 (1 ) (259 ) 1 Credit contracts — — — — 5 — Foreign exchange contracts — — (2 ) — (8 ) — Other contracts — — — — (7 ) — GMWB and GMAB embedded derivatives — — — — 244 — IUL embedded derivatives — — — (5 ) — — Total gain (loss) $ (3 ) $ 1 $ 4 $ (6 ) $ (201 ) $ 1 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 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 exposure related to GMAB and non-life contingent GMWB provisions primarily using futures, options, interest rate swaptions, interest rate swaps, total return swaps and variance swaps. The deferred premium associated with certain of the above options is paid or received semi-annually over the life of the option contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options: Premiums Payable Premiums Receivable (in millions) 2016 (1) $ 163 $ 38 2017 276 77 2018 225 132 2019 268 131 2020 198 59 2021 - 2027 762 205 Total $ 1,892 $ 642 (1) 2016 amounts represent the amounts payable and receivable for the period from July 1, 2016 to December 31, 2016 . Actual timing and payment amounts may differ due to future contract settlements, modifications or exercises of options 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 uses a combination of futures, options, interest rate swaptions and/or swaps. Certain of the macro hedge derivatives used contain settlement provisions linked to both equity returns and interest rates; the remaining are interest rate contracts or equity contracts. The Company’s macro hedge derivatives are included in Other contracts in the tables above. EIA, IUL and stock market certificate 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 EIA, IUL and stock market certificate products will positively or negatively impact earnings over the life of these products. The equity component of the EIA, IUL and stock market certificate 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 index options and futures contracts. The Company enters into futures and commodity swaps to manage its exposure to price risk arising from seed money investments in proprietary investment products. The Company enters into foreign currency forward contracts to economically hedge its exposure to certain foreign transactions. The Company enters into futures contracts to economically hedge its exposure related to compensation plans. Cash Flow Hedges The Company has designated and accounts for the following as cash flow hedges: (i) interest rate swaps to hedge interest rate exposure on debt, (ii) interest rate lock agreements to hedge interest rate exposure on debt issuances and (iii) swaptions used to hedge the risk of increasing interest rates on forecasted fixed premium product sales. For the three months and six months ended June 30, 2016 and 2015 , amounts recognized in earnings related to cash flow hedges due to ineffectiveness were not material. The estimated net amount of existing pretax losses as of June 30, 2016 that the Company expects to reclassify to earnings within the next twelve months is $4 million , which consists of $2 million of pretax gains to be recorded as a reduction to interest and debt expense and $6 million of pretax losses to be recorded in net investment income. Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is 20 years and relates to forecasted debt interest payments. See Note 13 for a rollforward of net unrealized derivative gains (losses) included in AOCI related to cash flow hedges. Fair Value Hedges In 2010, the Company entered into and designated as fair value hedges three interest rate swaps to convert senior notes due 2015, 2019 and 2020 from fixed rate debt to floating rate debt. The interest rate swaps related to the senior notes due 2015 expired in the fourth quarter of 2015, consistent with the maturity of the debt. The swaps have identical terms as the underlying debt being hedged so no ineffectiveness is expected to be realized. The Company recognizes gains and losses on the derivatives and the related hedged items within interest and debt expense. The following table presents the amounts recognized in income related to fair value hedges: Derivatives designated as hedging instruments Location of Gain Recorded into Income Amount of Gain Recognized in Income on Derivatives Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Interest rate contracts Interest and debt expense $ 5 $ 8 $ 10 $ 16 Net Investment Hedges During the second quarter of 2016 , the Company entered into, and designated as net investment hedges in foreign operations, two forward contracts to hedge a portion of the Company’s foreign currency exchange rate risk associated with its investment in Threadneedle. As the Company determined that the forward contracts are effective, the change in fair value of the derivatives is recognized in AOCI as part of the foreign currency translation adjustment. For both the three months and six months ended June 30, 2016 , the Company recognized a gain of $19 million in OCI. 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 arrangements and collateral arrangements whenever practical. See Note 11 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 debt rating (or based on the financial strength of the Company’s life insurance subsidiaries for contracts in which those subsidiaries are the counterparty). Additionally, certain of the Company’s derivative contracts contain provisions that allow the counterparty to terminate the contract if the Company’s debt does not maintain a specific credit rating (generally an investment grade rating) or the Company’s life insurance subsidiary does not maintain a specific financial strength rating. If these termination provisions were to be triggered, the Company’s counterparty could require immediate settlement of any net liability position. At June 30, 2016 and December 31, 2015 , the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $185 million and $284 million , respectively. The aggregate fair value of assets posted as collateral for such instruments as of June 30, 2016 and December 31, 2015 was $156 million and $283 million , respectively. If the credit contingent provisions of derivative contracts in a net liability position at June 30, 2016 and December 31, 2015 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 $29 million and $1 million , respectively. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity [Text Block] | Shareholders’ Equity The following tables provide the amounts related to each component of OCI: Three Months Ended June 30, 2016 2015 Pretax Income Tax Net of Tax Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized securities gains (losses): Net unrealized securities gains (losses) arising during the period (1) $ 559 $ (194 ) $ 365 $ (673 ) $ 237 $ (436 ) Reclassification of net securities gains included in net income (2) (5 ) 1 (4 ) (5 ) 2 (3 ) Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables (222 ) 78 (144 ) 309 (108 ) 201 Net unrealized securities gains (losses) 332 (115 ) 217 (369 ) 131 (238 ) Net unrealized derivatives gains: Reclassification of net derivative losses included in net income (3) (4) 2 (1 ) 1 — — — Net unrealized derivatives gains 2 (1 ) 1 — — — Defined benefit plans: Net loss arising during the period 9 (3 ) 6 — — — Defined benefit plans 9 (3 ) 6 — — — Foreign currency translation (42 ) 14 (28 ) 55 (21 ) 34 Other comprehensive income (loss) attributable to Ameriprise Financial 301 (105 ) 196 (314 ) 110 (204 ) Other comprehensive income attributable to noncontrolling interests — — — 101 (35 ) 66 Total other comprehensive income (loss) $ 301 $ (105 ) $ 196 $ (213 ) $ 75 $ (138 ) Six Months Ended June 30, 2016 2015 Pretax Income Tax Net of Tax Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized securities gains (losses): Net unrealized securities gains (losses) arising during the period (1) $ 1,052 $ (367 ) $ 685 $ (445 ) $ 156 $ (289 ) Reclassification of net securities gains included in net income (2) (4 ) 1 (3 ) (16 ) 6 (10 ) Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables (419 ) 147 (272 ) 203 (71 ) 132 Net unrealized securities gains (losses) 629 (219 ) 410 (258 ) 91 (167 ) Net unrealized derivatives gains: Reclassification of net derivative losses included in net income (3) (4) 3 (1 ) 2 — — — Net unrealized derivatives gains 3 (1 ) 2 — — — Defined benefit plans: Net loss arising during the period 9 (3 ) 6 — — — Defined benefit plans 9 (3 ) 6 — — — Foreign currency translation (59 ) 20 (39 ) 7 (2 ) 5 Other comprehensive income (loss) attributable to Ameriprise Financial 582 (203 ) 379 (251 ) 89 (162 ) Other comprehensive income attributable to noncontrolling interests — — — 15 (5 ) 10 Total other comprehensive income (loss) $ 582 $ (203 ) $ 379 $ (236 ) $ 84 $ (152 ) (1) Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period. (2) Reclassification amounts are recorded in net investment income. (3) Includes $1 million pretax gain reclassified to interest and debt expense for both the three months ended June 30, 2016 and 2015 , and a $2 million and $1 million pretax loss reclassified to net investment income for the three months ended June 30, 2016 and 2015 , respectively. (4) Includes $1 million and $2 million pretax gain reclassified to interest and debt expense for the six months ended June 30, 2016 and 2015 , respectively, and a $3 million and $2 million pretax loss reclassified to net investment income for the six months ended June 30, 2016 and 2015 , respectively. Other comprehensive income (loss) related to net unrealized securities gains (losses) 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 tables present the changes in the balances of each component of AOCI, net of tax: Net Unrealized Securities Gains Net Unrealized Derivatives Gains Defined Benefit Plans Foreign Currency Translation Total (in millions) Balance, April 1, 2016 $ 625 $ 2 $ (91 ) $ (94 ) $ 442 OCI before reclassifications 221 — — (28 ) 193 Amounts reclassified from AOCI (4 ) 1 6 — 3 OCI attributable to Ameriprise Financial 217 1 6 (28 ) 196 Balance, June 30, 2016 $ 842 (1) $ 3 $ (85 ) $ (122 ) $ 638 Balance, January 1, 2016 $ 426 $ 1 $ (91 ) $ (83 ) $ 253 Cumulative effect of change in accounting policies 6 — — — 6 Balance, January 1, 2016, as adjusted 432 1 (91 ) (83 ) 259 OCI before reclassifications 413 — — (39 ) 374 Amounts reclassified from AOCI (3 ) 2 6 — 5 OCI attributable to Ameriprise Financial 410 2 6 (39 ) 379 Balance, June 30, 2016 $ 842 (1) $ 3 $ (85 ) $ (122 ) $ 638 Net Unrealized Securities Gains Net Unrealized Derivatives Gains Defined Benefit Plans Foreign Currency Translation Total (in millions) Balance, April 1, 2015 $ 857 $ — $ (71 ) $ (82 ) $ 704 OCI before reclassifications (235 ) — — 34 (201 ) Amounts reclassified from AOCI (3 ) — — — (3 ) OCI attributable to Ameriprise Financial (238 ) — — 34 (204 ) Balance, June 30, 2015 $ 619 (1) $ — $ (71 ) $ (48 ) $ 500 Balance, January 1, 2015 $ 786 $ — $ (71 ) $ (53 ) $ 662 OCI before reclassifications (157 ) — — 5 (152 ) Amounts reclassified from AOCI (10 ) — — — (10 ) OCI attributable to Ameriprise Financial (167 ) — — 5 (162 ) Balance, June 30, 2015 $ 619 (1) $ — $ (71 ) $ (48 ) $ 500 (1) Includes $1 million and $6 million and of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities at June 30, 2016 and June 30, 2015 , respectively. For the six months ended June 30, 2016 and 2015 , the Company repurchased a total of 9.8 million shares and 6.0 million shares, respectively, of its common stock for an aggregate cost of $895 million and $774 million , respectively. In April 2014, the Company's Board of Directors authorized an expenditure of up to $2.5 billion for the repurchase of shares of the Company’s common stock through April 28, 2016, which was exhausted in the three months ended March 31, 2016 . In December 2015, the Company’s Board of Directors authorized additional expenditures of up to $2.5 billion of the Company’s common stock through December 31, 2017. As of June 30, 2016 , the Company had $1.7 billion remaining under its share repurchase authorization. The Company may also reacquire shares of its common stock under its share-based compensation plans related to restricted stock awards and certain option exercises. The holders of restricted shares may elect to surrender a portion of their shares on the vesting date to cover their income tax obligation. These vested restricted shares are reacquired by the Company and the Company’s payment of the holders’ income tax obligations are recorded as a treasury share purchase. For both the six months ended June 30, 2016 and 2015 , the Company reacquired 0.3 million shares of its common stock through the surrender of shares upon vesting and paid in the aggregate $29 million and $44 million , respectively, related to the holders’ income tax obligations on the vesting date. Option holders may elect to net settle their vested awards resulting in the surrender of the number of shares required to cover the strike price and tax obligation of the options exercised. These shares are reacquired by the Company and recorded as treasury shares. For the six months ended June 30, 2016 and 2015 , the Company reacquired 0.2 million shares and 0.7 million shares, respectively, of its common stock through the net settlement of options for an aggregate value of $18 million and $87 million , respectively. During the six months ended June 30, 2016 and 2015 , the Company reissued 0.9 million and 1.0 million treasury shares, respectively, for restricted stock award grants, performance share units and issuance of shares vested under advisor deferred compensation plans. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Text Block] | Income Taxes The Company’s effective tax rate was 18.4% and 22.6% for the three months ended June 30, 2016 and 2015 , respectively. The Company’s effective tax rate was 21.0% and 22.6% for the six months ended June 30, 2016 and 2015 , respectively. The Company’s effective tax rates for the three months and six months ended June 30, 2016 are lower than the statutory rate as a result of tax preferred items including the dividends received deduction, low income housing tax credits, and lower taxes on net income from foreign subsidiaries. The decrease in the effective tax rate for the three months and six months ended June 30, 2016 compared to the prior year periods was primarily due to a $17 million benefit in the second quarter of 2016 primarily related to the completion of tax audits from previous years. Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $15 million , net of federal benefit, which will expire beginning December 31, 2016. The Company is required to establish a valuation allowance for any portion of the deferred tax assets that management believes will not be realized. Included in deferred tax assets is a significant deferred tax asset relating to capital losses that have been recognized for financial statement purposes but not yet for tax return purposes. Under current U.S. federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes. 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. 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 deferred tax assets and state net operating losses and therefore a valuation allowance has been established. The valuation allowance was $11 million at both June 30, 2016 and December 31, 2015 . As of June 30, 2016 and December 31, 2015 , the Company had $119 million and $161 million , respectively, of gross unrecognized tax benefits. If recognized, approximately $50 million and $57 million , net of federal tax benefits, of unrecognized tax benefits at June 30, 2016 and December 31, 2015 , respectively, would affect the effective tax rate. It is reasonably possible that the total amounts 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 $60 million to $70 million in the next 12 months primarily due to resolution of IRS examinations. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized nil and a net decrease of $44 million in interest and penalties for the three months and six months ended June 30, 2016 , respectively. The Company recognized a net increase of $1 million and $2 million in interest and penalties for the three months and six months ended June 30, 2015 , respectively. At June 30, 2016 and December 31, 2015 , the Company had a payable of $7 million and $51 million , respectively, related to accrued interest and penalties. The Company or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The IRS has completed its field examination of the 1997 through 2011 tax returns. However, for federal income tax purposes, tax years 1997 through 2006, 2008, and 2009 remain open for certain unagreed-upon issues. The IRS is currently auditing the Company’s U.S. Income Tax Returns for 2012 and 2013. The Company’s or certain of its subsidiaries’ state income tax returns are currently under examination by various jurisdictions for years ranging from 1997 through 2012 and remain open for all years after 2012. |
Guarantees and Contingencies
Guarantees and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees and contingencies [Text Block] | Guarantees and Contingencies Guarantees The Company is required by law to be a member of the guaranty fund association in every state where it is 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 (“NOLHGA”) 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. At both June 30, 2016 and December 31, 2015 , the estimated liability was $13 million and the related premium tax asset was $12 million . The expected period over which guaranty fund assessments will be made and the related tax credits recovered is not known. Contingencies The Company and its subsidiaries are involved in the normal course of business in legal, regulatory and arbitration proceedings, including class actions, concerning matters arising in connection with the conduct of its activities as a diversified financial services firm. 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 litigation arising out of its general business activities, such as its investments, contracts, leases 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 financial services industry generally. As with other financial services firms, the level of regulatory activity and inquiry concerning the Company’s businesses remains elevated. From time to time, the Company receives requests for information from, and/or has been subject to examination or claims by, the SEC, FINRA, the OCC, the UK Financial Conduct Authority, state insurance and securities regulators, state attorneys general and various other domestic or foreign governmental and quasi-governmental authorities on behalf of themselves or clients concerning the Company’s business activities and practices, and the practices of the Company’s financial advisors. The Company has numerous pending matters which include information requests, exams or inquiries that the Company has received during recent periods regarding certain matters, including: sales and distribution of mutual funds, exchange traded funds, annuities, equity and fixed income securities, real estate investment trusts, insurance products, and financial advice offerings; supervision of the Company’s financial advisors; administration of insurance and annuity claims; security of client information; trading activity; performance advertising; position reporting; and transaction monitoring systems and controls. The Company is also responding to regulatory audits, market conduct examinations and other state inquiries relating to an industry-wide investigation of unclaimed property and escheatment practices and procedures. The number of reviews and investigations has increased in recent years with regard to many firms in the financial services industry, including Ameriprise Financial. The Company has cooperated and will continue to cooperate with the applicable regulators. These legal and regulatory proceedings and disputes are subject to uncertainties and, as such, it is inherently difficult to determine whether any loss is probable or even 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 or what the eventual settlement, fine, penalty or other relief, if any, may be, particularly for proceedings that are in their early stages of development or where plaintiffs seek indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing unsettled legal questions relevant to the proceedings in question, before a loss or range of loss can be reasonably estimated for any proceeding. An adverse outcome in one or more proceeding 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. 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 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. Certain legal and regulatory proceedings are described below. In November 2014, a lawsuit was filed against the Company’s London-based asset management affiliate in England’s High Court of Justice Commercial Court, entitled Otkritie Capital International Ltd and JSC Otkritie Holding v. Threadneedle Asset Management Ltd. and Threadneedle Management Services Ltd. (“Threadneedle Defendants”). Claimants allege that the Threadneedle Defendants should be held liable for the wrongful acts of one of its former employees, who in February 2014 was held jointly and severally liable with several other parties for conspiracy and dishonest assistance in connection with a fraud perpetrated against Claimants in 2011. Claimants allege they were harmed by that fraud in the amount of $120 million . The Threadneedle Defendants applied to the Court for an Order dismissing the proceedings as an abuse of process of the Court. This application was declined in August 2015. The Threadneedle Defendants applied to the Court of Appeal for leave to appeal, which application was granted in November 2015. A hearing on the appeal is expected in January 2017 and the case is stayed pending the outcome of the appeal. The Company cannot reasonably estimate the range of loss, if any, that may result from this matter due to the early procedural status of the case, the number of parties involved, and the failure to allege any specific, evidence based damages. |
Earnings per Share Attributable
Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per share attributable to Ameriprise Financial, Inc. common shareholders [Text Block] | Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders The computations of basic and diluted earnings per share attributable to Ameriprise Financial, Inc. common shareholders are as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions, except per share amounts) Numerator: Net income attributable to Ameriprise Financial $ 335 415 $ 699 $ 808 Denominator: Basic: Weighted-average common shares outstanding 168.3 183.8 170.4 185.1 Effect of potentially dilutive nonqualified stock options and other share-based awards 1.8 2.6 1.8 2.6 Diluted: Weighted-average common shares outstanding 170.1 186.4 172.2 187.7 Earnings per share attributable to Ameriprise Financial, Inc. common shareholders: Basic $ 1.99 $ 2.26 $ 4.10 $ 4.37 Diluted $ 1.97 $ 2.23 $ 4.06 $ 4.30 The calculation of diluted earnings per share excludes the incremental effect of 4.9 million and 1.6 million options as of June 30, 2016 and 2015 , respectively, due to their anti-dilutive effect. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information[Text Block] | The Company’s reporting segments are Advice & Wealth Management, Asset Management, Annuities, Protection and Corporate & Other. The accounting policies of the segments are the same as those of the Company, except for operating adjustments defined below, the method of capital allocation, the accounting for gains (losses) from intercompany revenues and expenses and not providing for income taxes on a segment basis. Management uses segment operating measures in goal setting, as a basis for determining employee compensation and in evaluating performance on a basis comparable to that used by some securities analysts and investors. Consistent with GAAP accounting guidance for segment reporting, operating earnings is the Company’s measure of segment performance. Operating earnings should not be viewed as a substitute for GAAP pretax income. The Company believes the presentation of segment operating earnings, as the Company measures it for management purposes, enhances the understanding of its business by reflecting the underlying performance of its core operations and facilitating a more meaningful trend analysis. Operating earnings is defined as operating net revenues less operating expenses. Operating net revenues and operating expenses exclude the market impact on IUL benefits (net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual), integration and restructuring charges and the impact of consolidating investment entities. Operating net revenues also exclude net realized investment gains or losses (net of unearned revenue amortization and the reinsurance accrual) and the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments. Operating expenses also exclude the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC and DAC amortization) and the DSIC and DAC amortization offset to net realized investment gains or losses. The market impact on variable annuity guaranteed benefits and IUL benefits includes changes in embedded derivative values caused by changes in financial market conditions, net of changes in economic hedge values and unhedged items including the difference between assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and certain policyholder contract elections, net of related impacts on DAC and DSIC amortization. The market impact also includes certain valuation adjustments made in accordance with FASB Accounting Standards Codification 820, Fair Value Measurements and Disclosures, including the impact on embedded derivative values of discounting projected benefits to reflect a current estimate of the Company’s life insurance subsidiary’s nonperformance spread. The following tables summarize selected financial information by segment and reconcile segment totals to those reported on the consolidated financial statements: June 30, December 31, (in millions) Advice & Wealth Management $ 11,738 $ 11,338 Asset Management 8,318 7,931 Annuities 96,009 94,002 Protection 22,026 20,755 Corporate & Other 4,593 11,293 Total assets $ 142,684 $ 145,319 Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Operating net revenues: Advice & Wealth Management $ 1,250 $ 1,274 $ 2,448 $ 2,502 Asset Management 739 832 1,463 1,639 Annuities 619 651 1,215 1,282 Protection 604 600 1,212 1,190 Corporate & Other (7 ) (2 ) (5 ) (8 ) Eliminations (1)(2) (349 ) (372 ) (689 ) (724 ) Total segment operating revenues 2,856 2,983 5,644 5,881 Net realized gains (losses) 5 5 (11 ) 15 Revenues attributable to CIEs 26 141 50 290 Market impact on IUL benefits, net 3 — 12 (4 ) Market impact of hedges on investments (19 ) (1 ) (59 ) (1 ) Total net revenues per consolidated statements of operations (3)(4) $ 2,871 $ 3,128 $ 5,636 $ 6,181 (1) Represents the elimination of intersegment revenues recognized for the three months ended June 30, 2016 and 2015 in each segment as follows: Advice & Wealth Management ( $244 million and $264 million , respectively); Asset Management ( $10 million and $11 million , respectively); Annuities ( $83 million and $86 million , respectively); Protection ( $11 million and $11 million , respectively); and Corporate & Other ( $1 million and nil , respectively). (2) Represents the elimination of intersegment revenues recognized for the six months ended June 30, 2016 and 2015 in each segment as follows: Advice & Wealth Management ( $483 million and $511 million , respectively); Asset Management ( $21 million and $22 million , respectively); Annuities ( $162 million and $170 million , respectively); Protection ( $22 million and $21 million , respectively); and Corporate & Other ( $1 million and nil , respectively). (3) Includes foreign net revenues of $166 million and $293 million for the three months ended June 30, 2016 and 2015 , respectively. (4) Includes foreign net revenues of $338 million and $526 million for the six months ended June 30, 2016 and 2015 , respectively. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Operating earnings: Advice & Wealth Management $ 221 $ 220 $ 426 $ 430 Asset Management 148 197 297 388 Annuities 146 150 270 322 Protection 37 72 106 123 Corporate & Other (76 ) (57 ) (126 ) (119 ) Total segment operating earnings 476 582 973 1,144 Net realized gains (losses) 5 5 (11 ) 15 Net income (loss) attributable to CIEs 1 61 (1 ) 147 Market impact on variable annuity guaranteed benefits, net (58 ) (36 ) (41 ) (70 ) Market impact on IUL benefits, net 5 5 24 (1 ) Market impact of hedges on investments (19 ) (1 ) (59 ) (1 ) Integration and restructuring charges — (1 ) — (1 ) Pretax income per consolidated statements of operations $ 410 $ 615 $ 885 $ 1,233 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Variable interest entities [Abstract] | |
Schedule of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis [Table Text Block] | The following tables present the balances of assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis: June 30, 2016 Level 1 Level 2 Level 3 Total (in millions) Assets Cash equivalents $ 70 $ 2,318 $ — $ 2,388 Available-for-Sale securities: Corporate debt securities — 15,100 1,350 16,450 Residential mortgage backed securities — 6,385 153 6,538 Commercial mortgage backed securities — 2,964 — 2,964 Asset backed securities — 1,241 178 1,419 State and municipal obligations — 2,480 — 2,480 U.S. government and agencies obligations 11 2 — 13 Foreign government bonds and obligations — 276 — 276 Common stocks 4 9 — 13 Common stocks measured at NAV 5 (1) Total Available-for-Sale securities 15 28,457 1,681 30,158 Trading securities 5 30 — 35 Separate account assets measured at NAV 80,230 (1) Investments segregated for regulatory purposes 226 — — 226 Other assets: Interest rate derivative contracts 1 3,939 — 3,940 Equity derivative contracts 68 1,490 — 1,558 Foreign exchange derivative contracts 36 89 — 125 Other derivative contracts — 6 2 8 Total other assets 105 5,524 2 5,631 Total assets at fair value $ 421 $ 36,329 $ 1,683 $ 118,668 Liabilities Policyholder account balances, future policy benefits and claims: EIA embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 408 408 GMWB and GMAB embedded derivatives — — 1,965 1,965 (2) Total policyholder account balances, future policy benefits and claims — 5 2,373 2,378 (3) Customer deposits — 7 — 7 Other liabilities: Interest rate derivative contracts 1 1,865 — 1,866 Equity derivative contracts 41 1,771 — 1,812 Credit derivative contracts — 12 — 12 Foreign exchange derivative contracts 5 34 — 39 Other derivative contracts 2 96 — 98 Other 6 5 — 11 Total other liabilities 55 3,783 — 3,838 Total liabilities at fair value $ 55 $ 3,795 $ 2,373 $ 6,223 (1) Amounts are comprised of certain investments 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. See Note 2 for further information. (2) The fair value of the GMWB and GMAB embedded derivatives included $2.0 billion of individual contracts in a liability position and $51 million of individual contracts in an asset position. (3) The Company’s adjustment for nonperformance risk resulted in a $756 million cumulative decrease to the embedded derivatives. December 31, 2015 Level 1 Level 2 Level 3 Total (in millions) Assets Cash equivalents $ 80 $ 1,918 $ — $ 1,998 Available-for-Sale securities: Corporate debt securities — 14,923 1,425 16,348 Residential mortgage backed securities — 5,755 218 5,973 Commercial mortgage backed securities — 2,453 3 2,456 Asset backed securities — 1,134 162 1,296 State and municipal obligations — 2,290 — 2,290 U.S. government and agencies obligations 33 35 — 68 Foreign government bonds and obligations — 224 — 224 Common stocks 5 8 — 13 Common stocks measured at NAV — — — 5 (1) Total Available-for-Sale securities 38 26,822 1,808 28,673 Trading securities 6 18 — 24 Separate account assets measured at NAV 80,349 (1) Investments segregated for regulatory purposes 401 — — 401 Other assets: Interest rate derivative contracts — 1,940 — 1,940 Equity derivative contracts 92 1,495 — 1,587 Credit derivative contracts — 2 — 2 Foreign exchange derivative contracts 2 54 — 56 Other derivative contracts — 2 — 2 Total other assets at fair value and NAV 94 3,493 — 3,587 Total assets $ 619 $ 32,251 $ 1,808 $ 115,032 Liabilities Policyholder account balances, future policy benefits and claims: EIA embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 364 364 GMWB and GMAB embedded derivatives — — 851 851 (2) Total policyholder account balances, future policy benefits and claims — 5 1,215 1,220 (3) Customer deposits — 4 — 4 Other liabilities: Interest rate derivative contracts — 969 — 969 Equity derivative contracts 47 1,946 — 1,993 Foreign exchange derivative contracts 2 16 — 18 Other derivative contracts — 96 — 96 Other 1 12 — 13 Total other liabilities 50 3,039 — 3,089 Total liabilities at fair value $ 50 $ 3,048 $ 1,215 $ 4,313 (1) Amounts are comprised of certain investments 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. See Note 2 for further information. (2) The fair value of the GMWB and GMAB embedded derivatives included $994 million of individual contracts in a liability position and $143 million of individual contracts in an asset position. (3) The Company’s adjustment for nonperformance risk resulted in a $398 million cumulative decrease to the embedded derivatives. |
Schedule of debt of the consolidated investment entities and the stated interest rates [Table Text Block] | The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows: Outstanding Balance Stated Interest Rate June 30, December 31, June 30, December 31, (in millions) Long-term debt: Senior notes due 2019 $ 300 $ 300 7.3 % 7.3 % Senior notes due 2020 750 750 5.3 5.3 Senior notes due 2023 750 750 4.0 4.0 Senior notes due 2024 550 550 3.7 3.7 Junior subordinated notes due 2066 — 245 — 7.5 Capitalized lease obligations 55 60 Other (1) 47 37 Total long-term debt 2,452 2,692 Short-term borrowings: Federal Home Loan Bank (“FHLB”) advances 150 150 0.6 0.5 Repurchase agreements 50 50 0.7 0.5 Total short-term borrowings 200 200 Total $ 2,652 $ 2,892 (1) Amounts include adjustments for fair value hedges on the Company’s long-term debt and unamortized discount and debt issuance costs. See Note 12 for information on the Company’s fair value hedges. |
Consolidated investment entities [Member] | |
Variable interest entities [Abstract] | |
Schedule of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis [Table Text Block] | The following tables present the balances of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis: June 30, 2016 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Corporate debt securities $ — $ 56 $ — $ 56 Common stocks 1 16 1 18 Other investments 4 4 — 8 Syndicated loans — 2,280 243 2,523 Total investments 5 2,356 244 2,605 Receivables — 19 — 19 Other assets — — 1 1 Total assets at fair value $ 5 $ 2,375 $ 245 $ 2,625 Liabilities Debt (1) $ — $ 2,749 $ — $ 2,749 Other liabilities — 88 — 88 Total liabilities at fair value $ — $ 2,837 $ — $ 2,837 (1) As the Company elected the measurement alternative effective January 1, 2016 , the carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. See Note 2 and below for additional discussion on the measurement alternative. The estimated fair value of the CLOs’ debt was $2.7 billion at June 30, 2016 . December 31, 2015 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Corporate debt securities $ — $ 154 $ — $ 154 Common stocks 74 46 3 123 Other investments 4 22 — 26 Syndicated loans — 5,738 529 6,267 Total investments 78 5,960 532 6,570 Receivables — 70 — 70 Other assets — — 2,065 2,065 Total assets at fair value $ 78 $ 6,030 $ 2,597 $ 8,705 Liabilities Debt $ — $ — $ 6,630 $ 6,630 Other liabilities — 221 — 221 Total liabilities at fair value $ — $ 221 $ 6,630 $ 6,851 |
Schedule of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis [Table Text Block] | The following tables provide a summary of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis: Common Stocks Syndicated Loans Other Assets (in millions) Balance, April 1, 2016 $ 2 $ 300 $ — Total gains included in: Net income — 8 (1) 1 (2) Purchases — 35 — Sales — (1 ) — Settlements — (15 ) — Transfers into Level 3 — 90 — Transfers out of Level 3 (1 ) (174 ) — Balance, June 30, 2016 $ 1 $ 243 $ 1 Changes in unrealized gains included in income relating to assets held at June 30, 2016 $ — $ 6 (1) $ — (1) Included in net investment income in the Consolidated Statements of Operations. (2) Included in other revenues in the Consolidated Statements of Operations. Common Stocks Syndicated Loans Other Assets Debt (in millions) Balance, April 1, 2015 $ 11 $ 467 $ 1,889 $ (5,933 ) Total gains (losses) included in: Net income — 1 (1) 67 (2) (23 ) (1) Other comprehensive loss — — 117 — Purchases — 119 4 — Sales — (15 ) (98 ) — Issues — — — (569 ) Settlements — (42 ) — 38 Transfers into Level 3 — 132 — — Transfers out of Level 3 — (205 ) — — Balance, June 30, 2015 $ 11 $ 457 $ 1,979 $ (6,487 ) Changes in unrealized gains (losses) included in income relating to assets and liabilities held at June 30, 2015 $ — $ — $ 58 (2) $ (23 ) (1) (1) Included in net investment income in the Consolidated Statements of Operations. (2) Included in other revenues in the Consolidated Statements of Operations. Common Stocks Syndicated Loans Other Assets Debt (in millions) Balance at January 1, 2016, previously reported $ 3 $ 529 $ 2,065 $ (6,630 ) Cumulative effect of change in accounting policies (3) (2 ) (304 ) (2,065 ) 6,630 Balance at January 1, 2016, as adjusted 1 225 — — Total gains (losses) included in: Net income — (1 ) (1) 1 (2) — Purchases — 50 — — Sales — (1 ) — — Settlements — (25 ) — — Transfers into Level 3 2 229 — — Transfers out of Level 3 (2 ) (234 ) — — Balance, June 30, 2016 $ 1 $ 243 $ 1 $ — Changes in unrealized gains included in income relating to assets and liabilities held at June 30, 2016 $ — $ 3 (1) $ — $ — (1) Included in net investment income in the Consolidated Statements of Operations. (2) Included in other revenues in the Consolidated Statements of Operations. (3) The cumulative effect of change in accounting policies includes the adoption impact of ASU 2015-02 and ASU 2014-13 – Consolidation: Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity (“ASU 2014-13”). Common Stocks Syndicated Loans Other Assets Debt (in millions) Balance at January 1, 2015 $ 7 $ 484 $ 1,935 $ (6,030 ) Total gains (losses) included in: Net income (1 ) (1) — 98 (2) 29 (1) Other comprehensive loss — — 7 — Purchases — 156 346 — Sales — (18 ) (407 ) — Issues — — — (569 ) Settlements — (73 ) — 83 Transfers into Level 3 5 387 — — Transfers out of Level 3 — (479 ) — — Balance, June 30, 2015 $ 11 $ 457 $ 1,979 $ (6,487 ) Changes in unrealized gains (losses) included in income relating to assets and liabilities held at June 30, 2015 $ (1 ) (1) $ (1 ) (1) $ — $ 29 (1) (1) Included in net investment income in the Consolidated Statements of Operations. (2) Included in other revenues in the Consolidated Statements of Operations. |
Significant unobservable inputs used in the fair value measurements of assets and liabilities held by consolidated investment entities [Table Text Block] | The following table provides 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 held by consolidated investment entities at December 31, 2015 : Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Other assets (property funds) $ 2,060 Discounted cash flow / market comparables Equivalent yield 2.6 % – 11.5% 5.8 % Expected rental value (per square foot) $3 – $159 $51 CLO debt $ 6,630 Discounted cash flow Annual default rate 2.5% Discount rate 2.0 % – 11.8% 3.4 % Constant prepayment rate 5.0 % – 10.0% 9.9 % Loss recovery 36.4 % – 63.6% 62.9 % |
Schedule of fair value and unpaid principal balance of assets and liabilities carried at fair value under the fair value option [Table Text Block] | The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected: June 30, December 31, 2015 (in millions) Syndicated loans Unpaid principal balance $ 2,682 $ 6,635 Excess unpaid principal over fair value (159 ) (368 ) Fair value $ 2,523 $ 6,267 Fair value of loans more than 90 days past due $ 33 $ 24 Fair value of loans in nonaccrual status 33 24 Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both 79 72 Debt Unpaid principal balance $ 2,916 $ 7,063 Excess unpaid principal over carrying value (167 ) (433 ) Carrying value $ 2,749 (1) $ 6,630 (1) As the Company elected the measurement alternative effective January 1, 2016 , the carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. See Note 2 and above for additional discussion on the measurement alternative. The estimated fair value of the CLOs’ debt was $2.7 billion at June 30, 2016 . |
Schedule of debt of the consolidated investment entities and the stated interest rates [Table Text Block] | Debt of the consolidated investment entities and the stated interest rates were as follows: Carrying Value Weighted Average Interest Rate June 30, December 31, June 30, December 31, (in millions) Debt of consolidated CLOs due 2019-2026 $ 2,749 $ 6,630 2.1 % 1.6 % Floating rate revolving credit borrowings due 2017-2020 — (1) 901 — 2.8 Total $ 2,749 $ 7,531 (1) The property funds were deconsolidated effective January 1, 2016 upon adoption of ASU 2015-02. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of investments [Table Text Block] | The following is a summary of Ameriprise Financial investments: June 30, December 31, (in millions) Available-for-Sale securities, at fair value $ 30,158 $ 28,673 Mortgage loans, net 3,017 3,359 Policy and certificate loans 830 824 Other investments 1,260 1,288 Total $ 35,265 $ 34,144 |
Summary of net investment income [Table Text Block] | The following is a summary of net investment income: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Investment income on fixed maturities $ 343 $ 355 $ 686 $ 709 Net realized gains (losses) 5 5 (11 ) 15 Affordable housing partnerships (11 ) (10 ) (18 ) (18 ) Other 5 19 (12 ) 42 Consolidated investment entities 30 54 58 159 Total $ 372 $ 423 $ 703 $ 907 |
Available-for-Sale Securities Disclosure [Table Text Block] | Available-for-Sale securities distributed by type were as follows: June 30, 2016 Description of Securities Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Noncredit OTTI (1) (in millions) Corporate debt securities $ 15,061 $ 1,455 $ (66 ) $ 16,450 $ 4 Residential mortgage backed securities 6,442 148 (52 ) 6,538 (9 ) Commercial mortgage backed securities 2,825 139 — 2,964 — Asset backed securities 1,387 45 (13 ) 1,419 4 State and municipal obligations 2,180 315 (15 ) 2,480 — U.S. government and agencies obligations 12 1 — 13 — Foreign government bonds and obligations 257 26 (7 ) 276 — Common stocks 8 10 — 18 5 Total $ 28,172 $ 2,139 $ (153 ) $ 30,158 $ 4 December 31, 2015 Description of Securities Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Noncredit OTTI (1) (in millions) Corporate debt securities $ 15,750 $ 894 $ (296 ) $ 16,348 $ 3 Residential mortgage backed securities 5,933 106 (66 ) 5,973 (12 ) Commercial mortgage backed securities 2,400 70 (14 ) 2,456 — Asset backed securities 1,273 34 (11 ) 1,296 — State and municipal obligations 2,105 213 (28 ) 2,290 — U.S. government and agencies obligations 66 2 — 68 — Foreign government bonds and obligations 218 17 (11 ) 224 — Common stocks 7 11 — 18 5 Total $ 27,752 $ 1,347 $ (426 ) $ 28,673 $ (4 ) (1) Represents the amount of other-than-temporary impairment (“OTTI”) losses in accumulated other comprehensive income (“AOCI”). Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period. |
Investments with fixed maturities disclosure [Table Text Block] | A summary of fixed maturity securities by rating was as follows: June 30, 2016 December 31, 2015 Ratings Amortized Cost Fair Value Percent of Total Fair Value Amortized Cost Fair Value Percent of Total Fair Value (in millions, except percentages) AAA $ 8,087 $ 8,360 28 % $ 7,147 $ 7,289 25 % AA 1,731 1,987 7 1,732 1,930 7 A 5,140 5,773 19 5,131 5,507 19 BBB 11,512 12,365 41 12,052 12,353 43 Below investment grade 1,694 1,655 5 1,683 1,576 6 Total fixed maturities $ 28,164 $ 30,140 100 % $ 27,745 $ 28,655 100 % |
Available-for-Sale securities continuous unrealized loss disclosure [Table Text Block] | The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position: Description of Securities June 30, 2016 Less than 12 months 12 months or more Total Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses (in millions, except number of securities) Corporate debt securities 46 $ 454 $ (14 ) 53 $ 568 $ (52 ) 99 $ 1,022 $ (66 ) Residential mortgage backed securities 103 1,389 (13 ) 173 1,248 (39 ) 276 2,637 (52 ) Asset backed securities 36 346 (9 ) 23 316 (4 ) 59 662 (13 ) State and municipal obligations 5 17 — 6 126 (15 ) 11 143 (15 ) Foreign government bonds and obligations 2 7 — 16 31 (7 ) 18 38 (7 ) Total 192 $ 2,213 $ (36 ) 271 $ 2,289 $ (117 ) 463 $ 4,502 $ (153 ) Description of Securities December 31, 2015 Less than 12 months 12 months or more Total Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses (in millions, except number of securities) Corporate debt securities 347 $ 5,150 $ (220 ) 48 $ 454 $ (76 ) 395 $ 5,604 $ (296 ) Residential mortgage backed securities 123 1,869 (16 ) 164 1,350 (50 ) 287 3,219 (66 ) Commercial mortgage backed securities 58 695 (13 ) 4 49 (1 ) 62 744 (14 ) Asset backed securities 50 455 (7 ) 14 254 (4 ) 64 709 (11 ) State and municipal obligations 31 100 (1 ) 5 110 (27 ) 36 210 (28 ) Foreign government bonds and obligations 9 39 (2 ) 15 27 (9 ) 24 66 (11 ) Total 618 $ 8,308 $ (259 ) 250 $ 2,244 $ (167 ) 868 $ 10,552 $ (426 ) |
Credit losses on available-for-sale securities disclosure [Table Text Block] | The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Operations for other-than-temporary impairments related to credit losses on Available-for-Sale securities for which a portion of the securities’ total other-than-temporary impairments was recognized in other comprehensive income (loss) (“OCI”): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Beginning balance $ 81 $ 99 $ 85 $ 98 Credit losses for which an other-than-temporary impairment was not previously recognized — — 1 — Credit losses for which an other-than-temporary impairment was previously recognized — — — 1 Reductions for securities sold during the period (realized) — (14 ) (5 ) (14 ) Ending balance $ 81 $ 85 $ 81 $ 85 |
Available-for-Sale securities recognized in earnings disclosure [Table Text Block] | Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in earnings were as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Gross realized gains $ 10 $ 6 $ 14 $ 23 Gross realized losses (5 ) (1 ) (9 ) (6 ) Other-than-temporary impairments — — (1 ) (1 ) Total $ 5 $ 5 $ 4 $ 16 |
Available-for-Sale securities contractual maturity disclosure [Table Text Block] | Available-for-Sale securities by contractual maturity at June 30, 2016 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 887 $ 897 Due after one year through five years 7,240 7,721 Due after five years through 10 years 4,812 5,076 Due after 10 years 4,571 5,525 17,510 19,219 Residential mortgage backed securities 6,442 6,538 Commercial mortgage backed securities 2,825 2,964 Asset backed securities 1,387 1,419 Common stocks 8 18 Total $ 28,172 $ 30,158 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Rollforward of the Allowance for Loan Losses [Table Text Block] | The following table presents a rollforward of the allowance for loan losses for the six months ended and the ending balance of the allowance for loan losses by impairment method: June 30, 2016 2015 (in millions) Beginning balance $ 32 $ 35 Charge-offs — (2 ) Provisions (1 ) 1 Ending balance $ 31 $ 34 Individually evaluated for impairment $ 2 $ 6 Collectively evaluated for impairment 29 28 |
Schedule of Recorded Investment in Financing Receivables by Impairment Method [Table Text Block] | The recorded investment in financing receivables by impairment method was as follows: June 30, December 31, (in millions) Individually evaluated for impairment $ 21 $ 34 Collectively evaluated for impairment 3,550 3,910 Total $ 3,571 $ 3,944 |
Schedule of Commercial Mortgage Loans by Geographic Region [Table Text Block] | Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows: Loans Percentage June 30, December 31, June 30, December 31, (in millions) East North Central $ 201 $ 211 7 % 8 % East South Central 77 74 3 3 Middle Atlantic 207 210 8 8 Mountain 258 248 10 9 New England 109 123 4 4 Pacific 734 741 27 27 South Atlantic 773 782 28 28 West North Central 219 229 8 8 West South Central 135 137 5 5 2,713 2,755 100 % 100 % Less: allowance for loan losses 21 21 Total $ 2,692 $ 2,734 |
Schedule of Commercial Mortgage Loans by Property Type [Table Text Block] | Concentrations of credit risk of commercial mortgage loans by property type were as follows: Loans Percentage June 30, December 31, June 30, December 31, (in millions) Apartments $ 503 $ 504 19 % 18 % Hotel 34 35 1 1 Industrial 440 459 16 17 Mixed use 37 35 1 1 Office 513 541 19 20 Retail 972 984 36 36 Other 214 197 8 7 2,713 2,755 100 % 100 % Less: allowance for loan losses 21 21 Total $ 2,692 $ 2,734 |
Deferred Acquisition Costs an28
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Deferred Acquisition Costs and Deferred Sales Inducement Costs | |
Schedule of balances of and changes in DAC [Table Text Block] | The balances of and changes in DAC were as follows: 2016 2015 (in millions) Balance at January 1 $ 2,725 $ 2,608 Capitalization of acquisition costs 166 172 Amortization (197 ) (169 ) Impact of change in net unrealized securities (gains) losses (94 ) 47 Balance at June 30 $ 2,600 $ 2,658 |
Schedule of balances of and changes in DSIC [Table Text Block] | The balances of and changes in DSIC, which is included in other assets, were as follows: 2016 2015 (in millions) Balance at January 1 $ 335 $ 362 Capitalization of sales inducement costs 2 2 Amortization (22 ) (25 ) Impact of change in net unrealized securities (gains) losses (14 ) 7 Balance at June 30 $ 301 $ 346 |
Policyholder Account Balances29
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | |
Policyholder Account Balances, Future Policy Benefits and Unpaid Claims Disclosure [Table Text Block] | Policyholder account balances, future policy benefits and claims consisted of the following: June 30, December 31, (in millions) Policyholder account balances Fixed annuities $ 10,889 $ 11,239 Variable annuity fixed sub-accounts 5,060 4,912 Variable universal life (“VUL”)/universal life (“UL”) insurance 2,947 2,897 Indexed universal life (“IUL”) insurance 910 808 Other life insurance 775 794 Total policyholder account balances 20,581 20,650 Future policy benefits Variable annuity guaranteed minimum withdrawal benefits (“GMWB”) 2,156 1,057 Variable annuity guaranteed minimum accumulation benefits (“GMAB”) 44 — Other annuity liabilities 120 31 Fixed annuities life contingent liabilities 1,499 1,501 Equity indexed annuities (“EIA”) 26 27 Life, disability income and long term care insurance 5,348 5,112 VUL/UL and other life insurance additional liabilities 527 452 Total future policy benefits 9,720 8,180 Policy claims and other policyholders’ funds 941 869 Total policyholder account balances, future policy benefits and claims $ 31,242 $ 29,699 |
Schedule of Separate Account Liabilities by Policy Type [Table Text Block] | Separate account liabilities consisted of the following: June 30, December 31, (in millions) Variable annuity $ 69,520 $ 69,333 VUL insurance 6,571 6,637 Other insurance 33 34 Threadneedle investment liabilities 4,106 4,345 Total $ 80,230 $ 80,349 |
Variable Annuity and Insuranc30
Variable Annuity and Insurance Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Insurance [Abstract] | |
Schedule of Variable Annuity Guarantees [Table Text Block] | 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) June 30, 2016 December 31, 2015 Total Contract Value Contract Value in Separate Accounts Net Amount at Risk Weighted Average Attained Age Total Contract Value Contract Value in Separate Accounts Net Amount at Risk Weighted Average Attained Age (in millions, except age) GMDB: Return of premium $ 55,533 $ 53,623 $ 264 65 $ 54,716 $ 52,871 $ 297 65 Five/six-year reset 9,036 6,389 46 65 9,307 6,731 78 65 One-year ratchet 6,587 6,214 183 67 6,747 6,379 266 67 Five-year ratchet 1,581 1,522 12 64 1,613 1,556 20 63 Other 920 899 84 71 887 869 82 71 Total — GMDB $ 73,657 $ 68,647 $ 589 65 $ 73,270 $ 68,406 $ 743 65 GGU death benefit $ 1,050 $ 998 $ 109 68 $ 1,056 $ 1,004 $ 113 67 GMIB $ 251 $ 232 $ 14 68 $ 270 $ 251 $ 17 68 GMWB: GMWB $ 2,891 $ 2,882 $ 2 69 $ 3,118 $ 3,109 $ 2 69 GMWB for life 38,476 38,351 409 66 37,301 37,179 330 66 Total — GMWB $ 41,367 $ 41,233 $ 411 66 $ 40,419 $ 40,288 $ 332 66 GMAB $ 3,779 $ 3,769 $ 26 58 $ 4,018 $ 4,006 $ 31 58 (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 Net Amount of Risk UL Secondary Guarantees [Table Text Block] | The following table provides information related to insurance guarantees for which the Company has established additional liabilities: June 30, 2016 December 31, 2015 Net Amount Weighted Average Attained Age Net Amount Weighted Average Attained Age (in millions, except age) UL secondary guarantees $ 6,301 64 $ 6,601 63 |
Schedule of Changes in Additional Liabilities for Variable Annuity and Insurance Guarantees [Table Text Block] | Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows: GMDB & GGU GMIB GMWB (1) GMAB (1) UL (in millions) Balance at January 1, 2015 $ 9 $ 7 $ 693 $ (41 ) $ 263 Incurred claims 1 — (225 ) (4 ) 45 Paid claims (1 ) — — — (12 ) Balance at June 30, 2015 $ 9 $ 7 $ 468 $ (45 ) $ 296 Balance at January 1, 2016 $ 14 $ 8 $ 1,057 $ — $ 332 Incurred claims 3 — 1,099 45 44 Paid claims (6 ) — — (1 ) (12 ) Balance at June 30, 2016 $ 11 $ 8 $ 2,156 $ 44 $ 364 (1) The incurred claims for GMWB and GMAB represent the total change in the liabilities (contra liabilities). |
Schedule of Separate Account Balances by Asset Type [Table Text Block] | The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: June 30, December 31, (in millions) Mutual funds: Equity $ 40,061 $ 39,806 Bond 23,659 23,700 Other 5,248 5,241 Total mutual funds $ 68,968 $ 68,747 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows: Outstanding Balance Stated Interest Rate June 30, December 31, June 30, December 31, (in millions) Long-term debt: Senior notes due 2019 $ 300 $ 300 7.3 % 7.3 % Senior notes due 2020 750 750 5.3 5.3 Senior notes due 2023 750 750 4.0 4.0 Senior notes due 2024 550 550 3.7 3.7 Junior subordinated notes due 2066 — 245 — 7.5 Capitalized lease obligations 55 60 Other (1) 47 37 Total long-term debt 2,452 2,692 Short-term borrowings: Federal Home Loan Bank (“FHLB”) advances 150 150 0.6 0.5 Repurchase agreements 50 50 0.7 0.5 Total short-term borrowings 200 200 Total $ 2,652 $ 2,892 (1) Amounts include adjustments for fair value hedges on the Company’s long-term debt and unamortized discount and debt issuance costs. See Note 12 for information on the Company’s fair value hedges. |
Fair Values of Assets and Lia32
Fair Values of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of balances of assets and liabilities measured at fair value on a recurring basis | The following tables present the balances of assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis: June 30, 2016 Level 1 Level 2 Level 3 Total (in millions) Assets Cash equivalents $ 70 $ 2,318 $ — $ 2,388 Available-for-Sale securities: Corporate debt securities — 15,100 1,350 16,450 Residential mortgage backed securities — 6,385 153 6,538 Commercial mortgage backed securities — 2,964 — 2,964 Asset backed securities — 1,241 178 1,419 State and municipal obligations — 2,480 — 2,480 U.S. government and agencies obligations 11 2 — 13 Foreign government bonds and obligations — 276 — 276 Common stocks 4 9 — 13 Common stocks measured at NAV 5 (1) Total Available-for-Sale securities 15 28,457 1,681 30,158 Trading securities 5 30 — 35 Separate account assets measured at NAV 80,230 (1) Investments segregated for regulatory purposes 226 — — 226 Other assets: Interest rate derivative contracts 1 3,939 — 3,940 Equity derivative contracts 68 1,490 — 1,558 Foreign exchange derivative contracts 36 89 — 125 Other derivative contracts — 6 2 8 Total other assets 105 5,524 2 5,631 Total assets at fair value $ 421 $ 36,329 $ 1,683 $ 118,668 Liabilities Policyholder account balances, future policy benefits and claims: EIA embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 408 408 GMWB and GMAB embedded derivatives — — 1,965 1,965 (2) Total policyholder account balances, future policy benefits and claims — 5 2,373 2,378 (3) Customer deposits — 7 — 7 Other liabilities: Interest rate derivative contracts 1 1,865 — 1,866 Equity derivative contracts 41 1,771 — 1,812 Credit derivative contracts — 12 — 12 Foreign exchange derivative contracts 5 34 — 39 Other derivative contracts 2 96 — 98 Other 6 5 — 11 Total other liabilities 55 3,783 — 3,838 Total liabilities at fair value $ 55 $ 3,795 $ 2,373 $ 6,223 (1) Amounts are comprised of certain investments 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. See Note 2 for further information. (2) The fair value of the GMWB and GMAB embedded derivatives included $2.0 billion of individual contracts in a liability position and $51 million of individual contracts in an asset position. (3) The Company’s adjustment for nonperformance risk resulted in a $756 million cumulative decrease to the embedded derivatives. December 31, 2015 Level 1 Level 2 Level 3 Total (in millions) Assets Cash equivalents $ 80 $ 1,918 $ — $ 1,998 Available-for-Sale securities: Corporate debt securities — 14,923 1,425 16,348 Residential mortgage backed securities — 5,755 218 5,973 Commercial mortgage backed securities — 2,453 3 2,456 Asset backed securities — 1,134 162 1,296 State and municipal obligations — 2,290 — 2,290 U.S. government and agencies obligations 33 35 — 68 Foreign government bonds and obligations — 224 — 224 Common stocks 5 8 — 13 Common stocks measured at NAV — — — 5 (1) Total Available-for-Sale securities 38 26,822 1,808 28,673 Trading securities 6 18 — 24 Separate account assets measured at NAV 80,349 (1) Investments segregated for regulatory purposes 401 — — 401 Other assets: Interest rate derivative contracts — 1,940 — 1,940 Equity derivative contracts 92 1,495 — 1,587 Credit derivative contracts — 2 — 2 Foreign exchange derivative contracts 2 54 — 56 Other derivative contracts — 2 — 2 Total other assets at fair value and NAV 94 3,493 — 3,587 Total assets $ 619 $ 32,251 $ 1,808 $ 115,032 Liabilities Policyholder account balances, future policy benefits and claims: EIA embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 364 364 GMWB and GMAB embedded derivatives — — 851 851 (2) Total policyholder account balances, future policy benefits and claims — 5 1,215 1,220 (3) Customer deposits — 4 — 4 Other liabilities: Interest rate derivative contracts — 969 — 969 Equity derivative contracts 47 1,946 — 1,993 Foreign exchange derivative contracts 2 16 — 18 Other derivative contracts — 96 — 96 Other 1 12 — 13 Total other liabilities 50 3,039 — 3,089 Total liabilities at fair value $ 50 $ 3,048 $ 1,215 $ 4,313 (1) Amounts are comprised of certain investments 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. See Note 2 for further information. (2) The fair value of the GMWB and GMAB embedded derivatives included $994 million of individual contracts in a liability position and $143 million of individual contracts in an asset position. (3) The Company’s adjustment for nonperformance risk resulted in a $398 million cumulative decrease to the embedded derivatives. |
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | The following tables provide a summary of changes in Level 3 assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis: Available-for-Sale Securities Other Derivative Contracts Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance, April 1, 2016 $ 1,411 $ 174 $ 10 $ 170 $ 1,765 $ — Total gains (losses) included in: Net income (1 ) — — — (1 ) (1) — Other comprehensive income 13 2 — (3 ) 12 — Purchases 14 — — 15 29 2 Settlements (87 ) (23 ) (1 ) (1 ) (112 ) — Transfers into Level 3 — — — 12 12 — Transfers out of Level 3 — — (9 ) (15 ) (24 ) — Balance, June 30, 2016 $ 1,350 $ 153 $ — $ 178 $ 1,681 $ 2 Changes in unrealized gains (losses) relating to assets held at June 30, 2016 included in: Net investment income $ — $ — $ — $ — $ — $ — (1) Included in net investment income in the Consolidated Statements of Operations. Policyholder Account Balances, Future Policy Benefits and Claims IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, April 1, 2016 $ 382 $ 1,515 $ 1,897 Total losses included in: Net income 4 (1) 386 (2) 390 Issues 29 70 99 Settlements (7 ) (6 ) (13 ) Balance, June 30, 2016 $ 408 $ 1,965 $ 2,373 Changes in unrealized losses relating to liabilities held at June 30, 2016 included in: Interest credited to fixed accounts $ 4 $ — $ 4 Benefits, claims, losses and settlement expenses — 405 405 (1) Included in interest credited to fixed accounts in the Consolidated Statements of Operations. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. Available-for-Sale Securities Trading Securities Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Common Stocks Total (in millions) Balance, April 1, 2015 $ 1,526 $ 280 $ 20 $ 158 $ 2 $ 1,986 $ 1 Total losses included in: Net income (1 ) — — — — (1 ) (1) — Other comprehensive loss (19 ) — — — — (19 ) — Purchases 40 104 41 9 — 194 — Settlements (37 ) (13 ) (2 ) (12 ) — (64 ) — Transfers out of Level 3 — (92 ) (15 ) (20 ) (2 ) (129 ) — Balance, June 30, 2015 $ 1,509 $ 279 $ 44 $ 135 $ — $ 1,967 $ 1 Changes in unrealized losses relating to assets held at June 30, 2015 included in: Net investment income $ (1 ) $ — $ — $ — $ — $ (1 ) $ — (1) Included in net investment income in the Consolidated Statements of Operations. Policyholder Account Balances, Future Policy Benefits and Claims IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, April 1, 2015 $ 270 $ 827 $ 1,097 Total gains included in: Net income — (659 ) (1) (659 ) Issues 26 64 90 Settlements (4 ) 3 (1 ) Balance, June 30, 2015 $ 292 $ 235 $ 527 Changes in unrealized gains relating to liabilities held at June 30, 2015 included in: Benefits, claims, losses and settlement expenses $ — $ (651 ) $ (651 ) (1) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. Available-for-Sale Securities Other Derivative Contracts Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance, January 1, 2016 $ 1,425 $ 218 $ 3 $ 162 $ 1,808 $ — Cumulative effect of change in accounting policies — — — 21 21 — Total gains (losses) included in: Net income (2 ) — — (1 ) (3 ) (1) — Other comprehensive income 31 (1 ) — (6 ) 24 — Purchases 14 — 9 16 39 2 Settlements (118 ) (39 ) (3 ) (1 ) (161 ) — Transfers into Level 3 — — — 12 12 — Transfers out of Level 3 — (25 ) (9 ) (25 ) (59 ) — Balance, June 30, 2016 $ 1,350 $ 153 $ — $ 178 $ 1,681 $ 2 Changes in unrealized losses relating to assets held at June 30, 2016 included in: Net investment income $ (1 ) $ — $ — $ (1 ) $ (2 ) $ — (1) Included in net investment income in the Consolidated Statements of Operations. Policyholder Account Balances, Future Policy Benefits and Claims IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2016 $ 364 $ 851 $ 1,215 Total (gains) losses included in: Net income (4 ) (1) 988 (2) 984 Issues 61 138 199 Settlements (13 ) (12 ) (25 ) Balance, June 30, 2016 $ 408 $ 1,965 $ 2,373 Changes in unrealized (gains) losses relating to liabilities held at June 30, 2016 included in: Interest credited to fixed accounts $ (4 ) $ — $ (4 ) Benefits, claims, losses and settlement expenses — 1,021 1,021 (1) Included in interest credited to fixed accounts in the Consolidated Statements of Operations. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. Available-for-Sale Securities Trading Securities Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Common Stocks Total (in millions) Balance, January 1, 2015 $ 1,518 $ 206 $ 91 $ 169 $ 2 $ 1,986 $ 1 Total losses included in: Net income (1 ) — — — — (1 ) (1) — Other comprehensive loss (6 ) — — — — (6 ) — Purchases 55 219 41 32 — 347 — Settlements (57 ) (22 ) (3 ) (14 ) — (96 ) — Transfers into Level 3 — — 6 — — 6 — Transfers out of Level 3 — (124 ) (91 ) (52 ) (2 ) (269 ) — Balance, June 30, 2015 $ 1,509 $ 279 $ 44 $ 135 $ — $ 1,967 $ 1 Changes in unrealized losses relating to assets held at June 30, 2015 included in: Net investment income $ (1 ) $ — $ — $ — $ — $ (1 ) $ — (1) Included in net investment income in the Consolidated Statements of Operations. Policyholder Account Balances, Future Policy Benefits and Claims IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2015 $ 242 $ 479 $ 721 Total (gains) losses included in: Net income 14 (1) (379 ) (2) (365 ) Issues 45 128 173 Settlements (9 ) 7 (2 ) Balance, June 30, 2015 $ 292 $ 235 $ 527 Changes in unrealized (gains) losses relating to liabilities held at June 30, 2015 included in: Interest credited to fixed accounts $ 14 $ — $ 14 Benefits, claims, losses and settlement expenses — (373 ) (373 ) (1) Included in interest credited to fixed accounts in the Consolidated Statements of Operations. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. |
Significant unobservable inputs used in the fair value measurements | 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: June 30, 2016 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 1,346 Discounted cash flow Yield/spread to U.S. Treasuries 0.5 % – 3.4% 1.6% Other derivative contracts $ 2 Option pricing model Correlation (1) 0.9 Asset backed securities $ 13 Discounted cash flow Annual short-term default rate 4.8% Annual long-term default rate 2.5% Discount rate 16.0% Constant prepayment rate 5.0 % – 10.0% 9.9% Loss recovery 36.4 % – 63.6% 62.8% IUL embedded derivatives $ 408 Discounted cash flow Nonperformance risk (2) 88 bps GMWB and GMAB embedded derivatives $ 1,965 Discounted cash flow Utilization of guaranteed withdrawals (3) 0.0 % – 75.6% Surrender rate 0.0 % – 59.1% Market volatility (4) 5.6 % – 22.3% Nonperformance risk (2) 88 bps December 31, 2015 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 1,411 Discounted cash flow Yield/spread to U.S. Treasuries 1.1 % – 3.8% 1.6% IUL embedded derivatives $ 364 Discounted cash flow Nonperformance risk (2) 68 bps GMWB and GMAB embedded derivatives $ 851 Discounted cash flow Utilization of guaranteed withdrawals (3) 0.0 % – 75.6% Surrender rate 0.0 % – 59.1% Market volatility (4) 5.4 % – 21.5% Nonperformance risk (2) 68 bps (1) Represents the correlation between equity returns and interest rates used in the valuation of the derivative contract. (2) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. (3) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. (4) Market volatility is implied volatility of fund of funds and managed volatility funds. |
Schedule of carrying value and the estimated fair value of financial instruments that are 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: June 30, 2016 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 3,017 $ — $ — $ 3,178 $ 3,178 Policy and certificate loans 830 — 1 806 807 Receivables 1,511 150 1,363 3 1,516 Restricted and segregated cash 2,640 2,640 — — 2,640 Other investments and assets 554 1 478 67 546 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 11,228 $ — $ — $ 12,349 $ 12,349 Investment certificate reserves 5,400 — — 5,391 5,391 Brokerage customer deposits 3,733 3,733 — — 3,733 Separate account liabilities measured at NAV 4,449 4,449 (1) Debt and other liabilities 2,895 234 2,786 109 3,129 December 31, 2015 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 3,359 $ — $ — $ 3,372 $ 3,372 Policy and certificate loans 824 — 1 803 804 Receivables 1,471 148 1,322 3 1,473 Restricted and segregated cash 2,548 2,548 — — 2,548 Other investments and assets 583 1 510 54 565 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 11,523 $ — $ — $ 12,424 $ 12,424 Investment certificate reserves 4,831 — — 4,823 4,823 Brokerage customer deposits 3,802 3,802 — — 3,802 Separate account liabilities measured at NAV 4,704 4,704 (1) Debt and other liabilities 3,173 202 2,958 113 3,273 (1) Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient. See Note 2 for further information. |
Offsetting Assets and Liabili33
Offsetting Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Offsetting [Abstract] | |
Schedule of gross and net information about the Company's assets subject to master netting arrangements [Table Text Block] | The following tables present the gross and net information about the Company’s assets subject to master netting arrangements: June 30, 2016 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Gross Amounts Not Offset in the Financial Instruments (1) Cash Collateral Securities Collateral Net Amount (in millions) Derivatives: OTC $ 4,441 $ — $ 4,441 $ (2,546 ) $ (825 ) $ (1,026 ) $ 44 OTC cleared 1,170 — 1,170 (968 ) (201 ) — 1 Exchange-traded 20 — 20 (14 ) — — 6 Total derivatives 5,631 — 5,631 (3,528 ) (1,026 ) (1,026 ) 51 Securities borrowed 150 — 150 (45 ) — (104 ) 1 Total $ 5,781 $ — $ 5,781 $ (3,573 ) $ (1,026 ) $ (1,130 ) $ 52 December 31, 2015 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 Financial Instruments (1) Cash Collateral Securities Collateral Net Amount (in millions) Derivatives: OTC $ 3,129 $ — $ 3,129 $ (2,331 ) $ (391 ) $ (320 ) $ 87 OTC cleared 418 — 418 (314 ) (102 ) — 2 Exchange-traded 40 — 40 (3 ) — — 37 Total derivatives 3,587 — 3,587 (2,648 ) (493 ) (320 ) 126 Securities borrowed 148 — 148 (30 ) — (115 ) 3 Total $ 3,735 $ — $ 3,735 $ (2,678 ) $ (493 ) $ (435 ) $ 129 (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 the Company's liabilities subject to master netting arrangements [Table Text Block] | The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements: June 30, 2016 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Amounts of Liabilities Presented in the Gross Amounts Not Offset in the Financial Instruments (1) Cash Collateral Securities Collateral Net Amount (in millions) Derivatives: OTC $ 2,746 $ — $ 2,746 $ (2,546 ) $ — $ (166 ) $ 34 OTC cleared 1,065 — 1,065 (968 ) (91 ) — 6 Exchange-traded 16 — 16 (14 ) (1 ) — 1 Total derivatives 3,827 — 3,827 (3,528 ) (92 ) (166 ) 41 Securities loaned 234 — 234 (45 ) — (183 ) 6 Repurchase agreements 50 — 50 — — (50 ) — Total $ 4,111 $ — $ 4,111 $ (3,573 ) $ (92 ) $ (399 ) $ 47 December 31, 2015 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Amounts of Liabilities Presented in the Gross Amounts Not Offset in the Financial Instruments (1) Cash Collateral Securities Collateral Net Amount (in millions) Derivatives: OTC $ 2,725 $ — $ 2,725 $ (2,331 ) $ — $ (393 ) $ 1 OTC cleared 345 — 345 (314 ) (25 ) — 6 Exchange-traded 6 — 6 (3 ) (1 ) — 2 Total derivatives 3,076 — 3,076 (2,648 ) (26 ) (393 ) 9 Securities loaned 203 — 203 (30 ) — (164 ) 9 Repurchase agreements 50 — 50 — — (50 ) — Total $ 3,329 $ — $ 3,329 $ (2,678 ) $ (26 ) $ (607 ) $ 18 (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 Activ34
Derivatives and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments, Gain (Loss) | |
Schedule of gross fair value of derivative instruments, including embedded derivatives [Table Text Block] | 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: June 30, 2016 December 31, 2015 Notional Gross Fair Value Notional Gross Fair Value Assets (1) Liabilities (2)(3) Assets (1) Liabilities (2)(3) (in millions) Derivatives designated as hedging instruments Interest rate contracts $ 675 $ 66 $ — $ 675 $ 58 $ — Foreign exchange contracts 291 19 — — — — Total qualifying hedges 966 85 — 675 58 — Derivatives not designated as hedging instruments Interest rate contracts 74,431 3,874 1,866 63,798 1,882 969 Equity contracts 61,411 1,558 1,812 70,238 1,587 1,993 Credit contracts 861 — 12 600 2 — Foreign exchange contracts 5,095 106 39 4,408 56 18 Other contracts 2,048 8 98 3,760 2 96 Total non-designated hedges 143,846 5,546 3,827 142,804 3,529 3,076 Embedded derivatives GMWB and GMAB (4) N/A — 1,965 N/A — 851 IUL N/A — 408 N/A — 364 EIA N/A — 5 N/A — 5 SMC N/A — 7 N/A — 4 Total embedded derivatives N/A — 2,385 N/A — 1,224 Total derivatives $ 144,812 $ 5,631 $ 6,212 $ 143,479 $ 3,587 $ 4,300 N/A Not applicable. (1) The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. (2) The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and EIA embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. The fair value of the SMC embedded derivative liability is included in Customer deposits on the Consolidated Balance Sheets. (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 $2.6 billion and $1.6 billion at June 30, 2016 and December 31, 2015 , respectively. See Note 11 for additional information related to master netting arrangements and cash collateral. See Note 3 for information about derivatives held by consolidated VIEs. (4) The fair value of the GMWB and GMAB embedded derivatives at June 30, 2016 included $2.0 billion of individual contracts in a liability position and $51 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives at December 31, 2015 included $994 million of individual contracts in a liability position and $143 million of individual contracts in an asset position. |
Schedule of gain (loss) on derivative instruments [Table Text Block] | The following tables present a summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations: Net Investment Income Banking and Deposit Interest Expense Distribution Expenses Interest Credited to Fixed Accounts Benefits, Claims, Losses and Settlement Expenses General and Administrative Expense (in millions) Three Months Ended June 30, 2016 Interest rate contracts $ (20 ) $ — $ — $ — $ 449 $ — Equity contracts — — 4 1 (96 ) — Credit contracts — — — — (15 ) — Foreign exchange contracts (2 ) — (1 ) — (19 ) 6 Other contracts — — — — 1 — GMWB and GMAB embedded derivatives — — — — (450 ) — IUL embedded derivatives — — — 3 — — SMC embedded derivatives — (1 ) — — — — Total gain (loss) $ (22 ) $ (1 ) $ 3 $ 4 $ (130 ) $ 6 Six Months Ended June 30, 2016 Interest rate contracts $ (60 ) $ — $ — $ — $ 1,204 $ — Equity contracts — (1 ) 2 (2 ) (161 ) 1 Credit contracts — — — — (31 ) — Foreign exchange contracts (2 ) — 2 — (54 ) 12 Other contracts — — — — (8 ) — GMWB and GMAB embedded derivatives — — — — (1,114 ) — IUL embedded derivatives — — — 17 — — Total gain (loss) $ (62 ) $ (1 ) $ 4 $ 15 $ (164 ) $ 13 Net Investment Income Banking and Deposit Interest Expense Distribution Expenses Interest Credited Benefits, Claims, Losses and Settlement Expenses General and Administrative Expense (in millions) Three Months Ended June 30, 2015 Interest rate contracts $ (1 ) $ — $ — $ — $ (562 ) $ — Equity contracts — — (1 ) (2 ) (137 ) — Credit contracts — — — — 14 — Foreign exchange contracts — — 1 — (2 ) — Other contracts — — — — (6 ) — GMWB and GMAB embedded derivatives — — — — 592 — IUL embedded derivatives — — — 4 — — Total gain (loss) $ (1 ) $ — $ — $ 2 $ (101 ) $ — Six Months Ended June 30, 2015 Interest rate contracts $ (1 ) $ — $ — $ — $ (176 ) $ — Equity contracts (2 ) 1 6 (1 ) (259 ) 1 Credit contracts — — — — 5 — Foreign exchange contracts — — (2 ) — (8 ) — Other contracts — — — — (7 ) — GMWB and GMAB embedded derivatives — — — — 244 — IUL embedded derivatives — — — (5 ) — — Total gain (loss) $ (3 ) $ 1 $ 4 $ (6 ) $ (201 ) $ 1 |
Schedule of payments to make and receive for options [Table Text Block] | The deferred premium associated with certain of the above options is paid or received semi-annually over the life of the option contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options: Premiums Payable Premiums Receivable (in millions) 2016 (1) $ 163 $ 38 2017 276 77 2018 225 132 2019 268 131 2020 198 59 2021 - 2027 762 205 Total $ 1,892 $ 642 (1) 2016 amounts represent the amounts payable and receivable for the period from July 1, 2016 to December 31, 2016 . |
Fair value hedges [Member] | |
Derivative Instruments, Gain (Loss) | |
Schedule of gain (loss) on derivative instruments [Table Text Block] | The following table presents the amounts recognized in income related to fair value hedges: Derivatives designated as hedging instruments Location of Gain Recorded into Income Amount of Gain Recognized in Income on Derivatives Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Interest rate contracts Interest and debt expense $ 5 $ 8 $ 10 $ 16 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of other comprehensive income (loss) [Table Text Block] | The following tables provide the amounts related to each component of OCI: Three Months Ended June 30, 2016 2015 Pretax Income Tax Net of Tax Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized securities gains (losses): Net unrealized securities gains (losses) arising during the period (1) $ 559 $ (194 ) $ 365 $ (673 ) $ 237 $ (436 ) Reclassification of net securities gains included in net income (2) (5 ) 1 (4 ) (5 ) 2 (3 ) Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables (222 ) 78 (144 ) 309 (108 ) 201 Net unrealized securities gains (losses) 332 (115 ) 217 (369 ) 131 (238 ) Net unrealized derivatives gains: Reclassification of net derivative losses included in net income (3) (4) 2 (1 ) 1 — — — Net unrealized derivatives gains 2 (1 ) 1 — — — Defined benefit plans: Net loss arising during the period 9 (3 ) 6 — — — Defined benefit plans 9 (3 ) 6 — — — Foreign currency translation (42 ) 14 (28 ) 55 (21 ) 34 Other comprehensive income (loss) attributable to Ameriprise Financial 301 (105 ) 196 (314 ) 110 (204 ) Other comprehensive income attributable to noncontrolling interests — — — 101 (35 ) 66 Total other comprehensive income (loss) $ 301 $ (105 ) $ 196 $ (213 ) $ 75 $ (138 ) Six Months Ended June 30, 2016 2015 Pretax Income Tax Net of Tax Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized securities gains (losses): Net unrealized securities gains (losses) arising during the period (1) $ 1,052 $ (367 ) $ 685 $ (445 ) $ 156 $ (289 ) Reclassification of net securities gains included in net income (2) (4 ) 1 (3 ) (16 ) 6 (10 ) Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables (419 ) 147 (272 ) 203 (71 ) 132 Net unrealized securities gains (losses) 629 (219 ) 410 (258 ) 91 (167 ) Net unrealized derivatives gains: Reclassification of net derivative losses included in net income (3) (4) 3 (1 ) 2 — — — Net unrealized derivatives gains 3 (1 ) 2 — — — Defined benefit plans: Net loss arising during the period 9 (3 ) 6 — — — Defined benefit plans 9 (3 ) 6 — — — Foreign currency translation (59 ) 20 (39 ) 7 (2 ) 5 Other comprehensive income (loss) attributable to Ameriprise Financial 582 (203 ) 379 (251 ) 89 (162 ) Other comprehensive income attributable to noncontrolling interests — — — 15 (5 ) 10 Total other comprehensive income (loss) $ 582 $ (203 ) $ 379 $ (236 ) $ 84 $ (152 ) (1) Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period. (2) Reclassification amounts are recorded in net investment income. (3) Includes $1 million pretax gain reclassified to interest and debt expense for both the three months ended June 30, 2016 and 2015 , and a $2 million and $1 million pretax loss reclassified to net investment income for the three months ended June 30, 2016 and 2015 , respectively. (4) Includes $1 million and $2 million pretax gain reclassified to interest and debt expense for the six months ended June 30, 2016 and 2015 , respectively, and a $3 million and $2 million pretax loss reclassified to net investment income for the six months ended June 30, 2016 and 2015 , respectively. |
Information related to amounts reclassified from AOCI [Table Text Block] | The following tables present the changes in the balances of each component of AOCI, net of tax: Net Unrealized Securities Gains Net Unrealized Derivatives Gains Defined Benefit Plans Foreign Currency Translation Total (in millions) Balance, April 1, 2016 $ 625 $ 2 $ (91 ) $ (94 ) $ 442 OCI before reclassifications 221 — — (28 ) 193 Amounts reclassified from AOCI (4 ) 1 6 — 3 OCI attributable to Ameriprise Financial 217 1 6 (28 ) 196 Balance, June 30, 2016 $ 842 (1) $ 3 $ (85 ) $ (122 ) $ 638 Balance, January 1, 2016 $ 426 $ 1 $ (91 ) $ (83 ) $ 253 Cumulative effect of change in accounting policies 6 — — — 6 Balance, January 1, 2016, as adjusted 432 1 (91 ) (83 ) 259 OCI before reclassifications 413 — — (39 ) 374 Amounts reclassified from AOCI (3 ) 2 6 — 5 OCI attributable to Ameriprise Financial 410 2 6 (39 ) 379 Balance, June 30, 2016 $ 842 (1) $ 3 $ (85 ) $ (122 ) $ 638 Net Unrealized Securities Gains Net Unrealized Derivatives Gains Defined Benefit Plans Foreign Currency Translation Total (in millions) Balance, April 1, 2015 $ 857 $ — $ (71 ) $ (82 ) $ 704 OCI before reclassifications (235 ) — — 34 (201 ) Amounts reclassified from AOCI (3 ) — — — (3 ) OCI attributable to Ameriprise Financial (238 ) — — 34 (204 ) Balance, June 30, 2015 $ 619 (1) $ — $ (71 ) $ (48 ) $ 500 Balance, January 1, 2015 $ 786 $ — $ (71 ) $ (53 ) $ 662 OCI before reclassifications (157 ) — — 5 (152 ) Amounts reclassified from AOCI (10 ) — — — (10 ) OCI attributable to Ameriprise Financial (167 ) — — 5 (162 ) Balance, June 30, 2015 $ 619 (1) $ — $ (71 ) $ (48 ) $ 500 (1) Includes $1 million and $6 million and of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities at June 30, 2016 and June 30, 2015 , respectively. |
Earnings per Share Attributab36
Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per common share [Table Text Block] | The computations of basic and diluted earnings per share attributable to Ameriprise Financial, Inc. common shareholders are as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions, except per share amounts) Numerator: Net income attributable to Ameriprise Financial $ 335 415 $ 699 $ 808 Denominator: Basic: Weighted-average common shares outstanding 168.3 183.8 170.4 185.1 Effect of potentially dilutive nonqualified stock options and other share-based awards 1.8 2.6 1.8 2.6 Diluted: Weighted-average common shares outstanding 170.1 186.4 172.2 187.7 Earnings per share attributable to Ameriprise Financial, Inc. common shareholders: Basic $ 1.99 $ 2.26 $ 4.10 $ 4.37 Diluted $ 1.97 $ 2.23 $ 4.06 $ 4.30 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information [Table Text Block] | The following tables summarize selected financial information by segment and reconcile segment totals to those reported on the consolidated financial statements: June 30, December 31, (in millions) Advice & Wealth Management $ 11,738 $ 11,338 Asset Management 8,318 7,931 Annuities 96,009 94,002 Protection 22,026 20,755 Corporate & Other 4,593 11,293 Total assets $ 142,684 $ 145,319 Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Operating net revenues: Advice & Wealth Management $ 1,250 $ 1,274 $ 2,448 $ 2,502 Asset Management 739 832 1,463 1,639 Annuities 619 651 1,215 1,282 Protection 604 600 1,212 1,190 Corporate & Other (7 ) (2 ) (5 ) (8 ) Eliminations (1)(2) (349 ) (372 ) (689 ) (724 ) Total segment operating revenues 2,856 2,983 5,644 5,881 Net realized gains (losses) 5 5 (11 ) 15 Revenues attributable to CIEs 26 141 50 290 Market impact on IUL benefits, net 3 — 12 (4 ) Market impact of hedges on investments (19 ) (1 ) (59 ) (1 ) Total net revenues per consolidated statements of operations (3)(4) $ 2,871 $ 3,128 $ 5,636 $ 6,181 (1) Represents the elimination of intersegment revenues recognized for the three months ended June 30, 2016 and 2015 in each segment as follows: Advice & Wealth Management ( $244 million and $264 million , respectively); Asset Management ( $10 million and $11 million , respectively); Annuities ( $83 million and $86 million , respectively); Protection ( $11 million and $11 million , respectively); and Corporate & Other ( $1 million and nil , respectively). (2) Represents the elimination of intersegment revenues recognized for the six months ended June 30, 2016 and 2015 in each segment as follows: Advice & Wealth Management ( $483 million and $511 million , respectively); Asset Management ( $21 million and $22 million , respectively); Annuities ( $162 million and $170 million , respectively); Protection ( $22 million and $21 million , respectively); and Corporate & Other ( $1 million and nil , respectively). (3) Includes foreign net revenues of $166 million and $293 million for the three months ended June 30, 2016 and 2015 , respectively. (4) Includes foreign net revenues of $338 million and $526 million for the six months ended June 30, 2016 and 2015 , respectively. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Operating earnings: Advice & Wealth Management $ 221 $ 220 $ 426 $ 430 Asset Management 148 197 297 388 Annuities 146 150 270 322 Protection 37 72 106 123 Corporate & Other (76 ) (57 ) (126 ) (119 ) Total segment operating earnings 476 582 973 1,144 Net realized gains (losses) 5 5 (11 ) 15 Net income (loss) attributable to CIEs 1 61 (1 ) 147 Market impact on variable annuity guaranteed benefits, net (58 ) (36 ) (41 ) (70 ) Market impact on IUL benefits, net 5 5 24 (1 ) Market impact of hedges on investments (19 ) (1 ) (59 ) (1 ) Integration and restructuring charges — (1 ) — (1 ) Pretax income per consolidated statements of operations $ 410 $ 615 $ 885 $ 1,233 |
Recent Accounting Pronounceme38
Recent Accounting Pronouncements Consolidations ASU 2015-02 (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | $ 142,684 | $ 145,319 | ||
Liabilities | 135,595 | 136,914 | ||
Equity | 7,089 | $ 8,405 | $ 8,996 | $ 9,305 |
Adjustments for New Accounting Pronouncement [Member] | Consolidated investment entities [Member] | ||||
Assets | (6,200) | |||
Liabilities | (4,900) | |||
Equity | $ (1,300) |
Variable Interest Entities (Ass
Variable Interest Entities (Asset & Liability Balances) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | ||
Consolidated investment entities [Member] | ||||
Assets and liabilities measured at fair value | ||||
CLO debt valued using DCF model | $ 2,673 | |||
Assets | ||||
Other assets | 1 | $ 2,065 | ||
Liabilities | ||||
Debt | 2,749 | [1] | 6,630 | |
Other liabilities | 88 | 221 | ||
Investment in non-consolidated CLOs [Member] | Nonconsolidated VIEs [Member] | ||||
Assets and liabilities measured at fair value | ||||
Carrying value of nonconsolidated VIEs | 10 | |||
Property Funds [Member] | Nonconsolidated VIEs [Member] | ||||
Assets and liabilities measured at fair value | ||||
Carrying value of nonconsolidated VIEs | 30 | |||
Sponsored hedge funds and private equity funds [Member] | Nonconsolidated VIEs [Member] | ||||
Assets and liabilities measured at fair value | ||||
Carrying value of nonconsolidated VIEs | 27 | 29 | ||
International series funds [Member] | Nonconsolidated VIEs [Member] | ||||
Assets and liabilities measured at fair value | ||||
Carrying value of nonconsolidated VIEs | 28 | |||
Affordable housing partnerships [Member] | Nonconsolidated VIEs [Member] | ||||
Assets and liabilities measured at fair value | ||||
Carrying value of nonconsolidated VIEs | 514 | 517 | ||
Recurring basis [Member] | Consolidated investment entities [Member] | ||||
Assets | ||||
Investments | 2,605 | 6,570 | ||
Receivables | 19 | 70 | ||
Other assets | 1 | 2,065 | ||
Total assets at fair value | 2,625 | 8,705 | ||
Liabilities | ||||
Debt | 2,749 | [2] | 6,630 | |
Other liabilities | 88 | 221 | ||
Total liabilities at fair value | 2,837 | 6,851 | ||
Recurring basis [Member] | Corporate debt securities [Member] | Consolidated investment entities [Member] | ||||
Assets | ||||
Investments | 56 | 154 | ||
Recurring basis [Member] | Common stocks [Member] | Consolidated investment entities [Member] | ||||
Assets | ||||
Investments | 18 | 123 | ||
Recurring basis [Member] | Other investments [Member] | Consolidated investment entities [Member] | ||||
Assets | ||||
Investments | 8 | 26 | ||
Recurring basis [Member] | Syndicated loans [Member] | Consolidated investment entities [Member] | ||||
Assets | ||||
Investments | 2,523 | 6,267 | ||
Recurring basis [Member] | Level 1 [Member] | Consolidated investment entities [Member] | ||||
Assets | ||||
Investments | 5 | 78 | ||
Total assets at fair value | 5 | 78 | ||
Recurring basis [Member] | Level 1 [Member] | Common stocks [Member] | Consolidated investment entities [Member] | ||||
Assets | ||||
Investments | 1 | 74 | ||
Recurring basis [Member] | Level 1 [Member] | Other investments [Member] | Consolidated investment entities [Member] | ||||
Assets | ||||
Investments | 4 | 4 | ||
Recurring basis [Member] | Level 2 [Member] | Consolidated investment entities [Member] | ||||
Assets | ||||
Investments | 2,356 | 5,960 | ||
Receivables | 19 | 70 | ||
Total assets at fair value | 2,375 | 6,030 | ||
Liabilities | ||||
Debt | [2] | 2,749 | ||
Other liabilities | 88 | 221 | ||
Total liabilities at fair value | 2,837 | 221 | ||
Recurring basis [Member] | Level 2 [Member] | Corporate debt securities [Member] | Consolidated investment entities [Member] | ||||
Assets | ||||
Investments | 56 | 154 | ||
Recurring basis [Member] | Level 2 [Member] | Common stocks [Member] | Consolidated investment entities [Member] | ||||
Assets | ||||
Investments | 16 | 46 | ||
Recurring basis [Member] | Level 2 [Member] | Other investments [Member] | Consolidated investment entities [Member] | ||||
Assets | ||||
Investments | 4 | 22 | ||
Recurring basis [Member] | Level 2 [Member] | Syndicated loans [Member] | Consolidated investment entities [Member] | ||||
Assets | ||||
Investments | 2,280 | 5,738 | ||
Recurring basis [Member] | Level 3 [Member] | Consolidated investment entities [Member] | ||||
Assets | ||||
Investments | 244 | 532 | ||
Other assets | 1 | 2,065 | ||
Total assets at fair value | 245 | 2,597 | ||
Liabilities | ||||
Total liabilities at fair value | 6,630 | |||
Recurring basis [Member] | Level 3 [Member] | Common stocks [Member] | Consolidated investment entities [Member] | ||||
Assets | ||||
Investments | 1 | 3 | ||
Recurring basis [Member] | Level 3 [Member] | Syndicated loans [Member] | Consolidated investment entities [Member] | ||||
Assets | ||||
Investments | $ 243 | $ 529 | ||
[1] | As the Company elected the measurement alternative effective January 1, 2016, the carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. See Note 2 and above for additional discussion on the measurement alternative. The estimated fair value of the CLOs’ debt was $2.7 billion at June 30, 2016. | |||
[2] | As the Company elected the measurement alternative effective January 1, 2016, the carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. See Note 2 and below for additional discussion on the measurement alternative. The estimated fair value of the CLOs’ debt was $2.7 billion at June 30, 2016. |
Variable Interest Entities (Cha
Variable Interest Entities (Changes in Level 3 Assets and Liabilities) (Details 2) - Consolidated investment entities [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||
Transfers from Level 1 to Level 2, assets | $ 0 | $ 0 | $ 0 | $ 0 | |
Transfers from Level 2 to Level 1, assets | 0 | 0 | 0 | 0 | |
Transfers from Level 1 to Level 2, liabilities | 0 | 0 | 0 | 0 | |
Transfers from Level 2 to Level 1, liabilities | 0 | 0 | 0 | 0 | |
Common stocks [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 2 | 11 | 3 | 7 | |
Total gains (losses) included in net income | [1] | (1) | |||
Transfers into Level 3 | 2 | 5 | |||
Transfers out of Level 3 | (1) | (2) | |||
Balance, at the end of the period | 1 | 11 | 1 | 11 | |
Changes in unrealized gains/ (losses) included in income relating to assets held at end of period | [1] | (1) | |||
Syndicated loans [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 300 | 467 | 529 | 484 | |
Total gains (losses) included in net income | [1] | 8 | 1 | (1) | |
Purchases | 35 | 119 | 50 | 156 | |
Sales | (1) | (15) | (1) | (18) | |
Settlements | (15) | (42) | (25) | (73) | |
Transfers into Level 3 | 90 | 132 | 229 | 387 | |
Transfers out of Level 3 | (174) | (205) | (234) | (479) | |
Balance, at the end of the period | 243 | 457 | 243 | 457 | |
Changes in unrealized gains/ (losses) included in income relating to assets held at end of period | [1] | 6 | 3 | (1) | |
Other assets [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 0 | 1,889 | 2,065 | 1,935 | |
Total gains (losses) included in net income | [2] | 1 | 67 | 1 | 98 |
Total gains (losses) included in other comprehensive income (loss) | 117 | 7 | |||
Purchases | 4 | 346 | |||
Sales | (98) | (407) | |||
Balance, at the end of the period | 1 | 1,979 | 1 | 1,979 | |
Changes in unrealized gains/ (losses) included in income relating to assets held at end of period | [2] | 58 | |||
Debt [Member] | |||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | (5,933) | (6,630) | (6,030) | ||
Total gains (losses) included in net income | [1] | (23) | 29 | ||
Issues | (569) | (569) | |||
Settlements | 38 | 83 | |||
Balance, at the end of the period | $ 0 | (6,487) | 0 | (6,487) | |
Changes in unrealized gains/ (losses) included in income relating to liabilities held at end of period | [1] | $ (23) | $ 29 | ||
Adjustments for New Accounting Pronouncement [Member] | Common stocks [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | [3] | (2) | |||
Adjustments for New Accounting Pronouncement [Member] | Syndicated loans [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | [3] | (304) | |||
Adjustments for New Accounting Pronouncement [Member] | Other assets [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | [3] | (2,065) | |||
Adjustments for New Accounting Pronouncement [Member] | Debt [Member] | |||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | [3] | 6,630 | |||
Adjusted for change in accounting policies [Member] | Common stocks [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 1 | ||||
Adjusted for change in accounting policies [Member] | Syndicated loans [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 225 | ||||
Adjusted for change in accounting policies [Member] | Other assets [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 0 | ||||
Adjusted for change in accounting policies [Member] | Debt [Member] | |||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | $ 0 | ||||
[1] | Included in net investment income in the Consolidated Statements of Operations. | ||||
[2] | Included in other revenues in the Consolidated Statements of Operations. | ||||
[3] | The cumulative effect of change in accounting policies includes the adoption impact of ASU 2015-02 and ASU 2014-13 – Consolidation: Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity (“ASU 2014-13”). |
Variable Interest Entities (Fai
Variable Interest Entities (Fair Value Unobservable Inputs) (Details 3) - Consolidated investment entities [Member] $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)$ / ft² | Jun. 30, 2016USD ($) | ||
Summary of the significant unobservable inputs | |||
Debt | $ 6,630 | $ 2,749 | [1] |
Property Funds [Member] | Minimum [Member] | Discounted cash flow/market comparables [Member] | |||
Summary of the significant unobservable inputs | |||
Equivalent yield | 2.60% | ||
Expected rental value (per square foot) | $ / ft² | 3 | ||
Property Funds [Member] | Maximum [Member] | Discounted cash flow/market comparables [Member] | |||
Summary of the significant unobservable inputs | |||
Equivalent yield | 11.50% | ||
Expected rental value (per square foot) | $ / ft² | 159 | ||
Property Funds [Member] | Weighted average [Member] | Discounted cash flow/market comparables [Member] | |||
Summary of the significant unobservable inputs | |||
Equivalent yield | 5.80% | ||
Expected rental value (per square foot) | $ / ft² | 51 | ||
Debt [Member] | Discounted cash flow [Member] | |||
Summary of the significant unobservable inputs | |||
Annual default rate | 2.50% | ||
Debt [Member] | Minimum [Member] | Discounted cash flow [Member] | |||
Summary of the significant unobservable inputs | |||
Discount rate | 2.00% | ||
Constant prepayment rate | 5.00% | ||
Loss recovery | 36.40% | ||
Debt [Member] | Maximum [Member] | Discounted cash flow [Member] | |||
Summary of the significant unobservable inputs | |||
Discount rate | 11.80% | ||
Constant prepayment rate | 10.00% | ||
Loss recovery | 63.60% | ||
Debt [Member] | Weighted average [Member] | Discounted cash flow [Member] | |||
Summary of the significant unobservable inputs | |||
Discount rate | 3.40% | ||
Constant prepayment rate | 9.90% | ||
Loss recovery | 62.90% | ||
Recurring basis [Member] | |||
Summary of the significant unobservable inputs | |||
Debt | $ 6,630 | $ 2,749 | [2] |
Level 3 [Member] | Recurring basis [Member] | Property Funds [Member] | |||
Summary of the significant unobservable inputs | |||
Other assets | 2,060 | ||
Level 3 [Member] | Recurring basis [Member] | Debt [Member] | |||
Summary of the significant unobservable inputs | |||
Debt | $ 6,630 | ||
[1] | As the Company elected the measurement alternative effective January 1, 2016, the carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. See Note 2 and above for additional discussion on the measurement alternative. The estimated fair value of the CLOs’ debt was $2.7 billion at June 30, 2016. | ||
[2] | As the Company elected the measurement alternative effective January 1, 2016, the carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. See Note 2 and below for additional discussion on the measurement alternative. The estimated fair value of the CLOs’ debt was $2.7 billion at June 30, 2016. |
Variable Interest Entities (FV
Variable Interest Entities (FV Options for consolidated CDOs) (Details 4) - Consolidated investment entities [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |||
Fair value and unpaid principal balance of assets and liabilities carried at fair value under the fair value option | |||||||
CLO debt valued using DCF model | $ 2,673 | $ 2,673 | |||||
Syndicated loans [Abstract] | |||||||
Unpaid principal balance | 2,682 | 2,682 | $ 6,635 | ||||
Excess estimated unpaid principal over fair value | (159) | (159) | (368) | ||||
Fair value | 2,523 | 2,523 | 6,267 | ||||
Fair value of loans more than 90 days past due | 33 | 33 | 24 | ||||
Fair value of loans in nonaccrual status | 33 | 33 | 24 | ||||
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both | 79 | 79 | 72 | ||||
Debt [Abstract] | |||||||
Unpaid principal balance | 2,916 | 2,916 | 7,063 | ||||
Excess unpaid principal over fair value | (167) | (167) | (433) | ||||
Fair value | 2,749 | [1] | 2,749 | [1] | $ 6,630 | ||
Net investment income [Member] | |||||||
Fair value and unpaid principal balance of assets and liabilities carried at fair value under the fair value option | |||||||
Total net losses recognized in net investment income related to changes in the fair value of financial assets and liabilities for which the fair value option was elected | $ (1) | $ (12) | $ (5) | $ 29 | |||
[1] | As the Company elected the measurement alternative effective January 1, 2016, the carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. See Note 2 and above for additional discussion on the measurement alternative. The estimated fair value of the CLOs’ debt was $2.7 billion at June 30, 2016. |
Variable Interest Entities (CLO
Variable Interest Entities (CLO Debt) (Details 5) - Consolidated investment entities [Member] - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2015 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | $ 2,749 | $ 7,531 | |
Derivative liability | $ 8 | ||
Effective interest rate reflecting the impact of derivative contracts | 3.20% | ||
Minimum [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Stated interest rate according to the terms of CDO structure | 0.00% | ||
Maximum [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Stated interest rate according to the terms of CDO structure | 9.20% | ||
CLO [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | $ 2,749 | $ 6,630 | |
Weighted average interest rate | 2.10% | 1.60% | |
Property Funds [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | $ 0 | [1] | $ 901 |
Weighted average interest rate | 2.80% | ||
[1] | The property funds were deconsolidated effective January 1, 2016 upon adoption of ASU 2015-02. |
Investments (Holdings info) (De
Investments (Holdings info) (Details) - Ameriprise Financial [Member] - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Investments | $ 35,265 | $ 34,144 |
Available-for-sale securities [Member] | ||
Investments | 30,158 | 28,673 |
Mortgage loans, net [Member] | ||
Investments | 3,017 | 3,359 |
Policy and certificate loans [Member] | ||
Investments | 830 | 824 |
Other investments [Member] | ||
Investments | $ 1,260 | $ 1,288 |
Investments (Net Inv Inc summar
Investments (Net Inv Inc summary) (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Investment income on fixed maturities | $ 343 | $ 355 | $ 686 | $ 709 |
Net realized gains (losses) | 5 | 5 | (11) | 15 |
Affordable housing partnerships | (11) | (10) | (18) | (18) |
Other | 5 | 19 | (12) | 42 |
Consolidated investment entities | 30 | 54 | 58 | 159 |
Total | $ 372 | $ 423 | $ 703 | $ 907 |
Investments (AFS by Type) (Deta
Investments (AFS by Type) (Details 3) - Ameriprise Financial [Member] - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Investments | |||
Amortized cost | $ 28,172 | $ 27,752 | |
Gross unrealized gains | 2,139 | 1,347 | |
Gross unrealized losses | (153) | (426) | |
Fair value | 30,158 | 28,673 | |
Noncredit OTTI | [1] | 4 | (4) |
Fair value of securities owned and pledged as collateral | 863 | 1,000 | |
Fair value of securities owned and pledged as collateral which are eligible for rehypothecation | $ 225 | $ 478 | |
Fixed maturity securities as percentage of total investments | 85.00% | 84.00% | |
Amount of securities internally rated | $ 1,200 | $ 1,300 | |
Corporate debt securities [Member] | |||
Investments | |||
Amortized cost | 15,061 | 15,750 | |
Gross unrealized gains | 1,455 | 894 | |
Gross unrealized losses | (66) | (296) | |
Fair value | 16,450 | 16,348 | |
Noncredit OTTI | [1] | 4 | 3 |
Residential mortgage backed securities [Member] | |||
Investments | |||
Amortized cost | 6,442 | 5,933 | |
Gross unrealized gains | 148 | 106 | |
Gross unrealized losses | (52) | (66) | |
Fair value | 6,538 | 5,973 | |
Noncredit OTTI | [1] | (9) | (12) |
Commercial mortgage backed securities [Member] | |||
Investments | |||
Amortized cost | 2,825 | 2,400 | |
Gross unrealized gains | 139 | 70 | |
Gross unrealized losses | 0 | (14) | |
Fair value | 2,964 | 2,456 | |
Asset backed securities [Member] | |||
Investments | |||
Amortized cost | 1,387 | 1,273 | |
Gross unrealized gains | 45 | 34 | |
Gross unrealized losses | (13) | (11) | |
Fair value | 1,419 | 1,296 | |
Noncredit OTTI | [1] | 4 | |
State and municipal obligations [Member] | |||
Investments | |||
Amortized cost | 2,180 | 2,105 | |
Gross unrealized gains | 315 | 213 | |
Gross unrealized losses | (15) | (28) | |
Fair value | 2,480 | 2,290 | |
U.S. government and agencies obligations [Member] | |||
Investments | |||
Amortized cost | 12 | 66 | |
Gross unrealized gains | 1 | 2 | |
Fair value | 13 | 68 | |
Foreign government bonds and obligations [Member] | |||
Investments | |||
Amortized cost | 257 | 218 | |
Gross unrealized gains | 26 | 17 | |
Gross unrealized losses | (7) | (11) | |
Fair value | 276 | 224 | |
Common stocks [Member] | |||
Investments | |||
Amortized cost | 8 | 7 | |
Gross unrealized gains | 10 | 11 | |
Fair value | 18 | 18 | |
Noncredit OTTI | [1] | $ 5 | $ 5 |
[1] | Represents the amount of other-than-temporary impairment (“OTTI”) losses in accumulated other comprehensive income (“AOCI”). Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period. |
Investments (Rating info) (Deta
Investments (Rating info) (Details 4) - Ameriprise Financial [Member] - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Investments | ||
Percentage of GNMA, FNMA and FHLMC securities rated AAA | 49.00% | 53.00% |
Number of holdings of other than GNMA, FNMA, and FHLMC having greater than 10% of total equity | 0 | 0 |
AAA [Member] | ||
Investments | ||
Amortized cost | $ 8,087 | $ 7,147 |
Fair value | $ 8,360 | $ 7,289 |
Percent of total fair value | 28.00% | 25.00% |
AA [Member] | ||
Investments | ||
Amortized cost | $ 1,731 | $ 1,732 |
Fair value | $ 1,987 | $ 1,930 |
Percent of total fair value | 7.00% | 7.00% |
A [Member] | ||
Investments | ||
Amortized cost | $ 5,140 | $ 5,131 |
Fair value | $ 5,773 | $ 5,507 |
Percent of total fair value | 19.00% | 19.00% |
BBB [Member] | ||
Investments | ||
Amortized cost | $ 11,512 | $ 12,052 |
Fair value | $ 12,365 | $ 12,353 |
Percent of total fair value | 41.00% | 43.00% |
Below investment grade [Member] | ||
Investments | ||
Amortized cost | $ 1,694 | $ 1,683 |
Fair value | $ 1,655 | $ 1,576 |
Percent of total fair value | 5.00% | 6.00% |
Total fixed maturities [Member] | ||
Investments | ||
Amortized cost | $ 28,164 | $ 27,745 |
Fair value | $ 30,140 | $ 28,655 |
Percent of total fair value | 100.00% | 100.00% |
Investments (EITF info) (Detail
Investments (EITF info) (Details 5) - Ameriprise Financial [Member] $ in Millions | Jun. 30, 2016USD ($)Positions | Dec. 31, 2015USD ($)Positions |
Number of securities | ||
Less than 12 months | Positions | 192 | 618 |
12 months or more | Positions | 271 | 250 |
Total | Positions | 463 | 868 |
Fair Value | ||
Less than 12 months | $ 2,213 | $ 8,308 |
12 months or more | 2,289 | 2,244 |
Total | 4,502 | 10,552 |
Unrealized losses | ||
Less than 12 months | (36) | (259) |
12 months or more | (117) | (167) |
Total | $ (153) | $ (426) |
Corporate debt securities [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 46 | 347 |
12 months or more | Positions | 53 | 48 |
Total | Positions | 99 | 395 |
Fair Value | ||
Less than 12 months | $ 454 | $ 5,150 |
12 months or more | 568 | 454 |
Total | 1,022 | 5,604 |
Unrealized losses | ||
Less than 12 months | (14) | (220) |
12 months or more | (52) | (76) |
Total | $ (66) | $ (296) |
Residential mortgage backed securities [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 103 | 123 |
12 months or more | Positions | 173 | 164 |
Total | Positions | 276 | 287 |
Fair Value | ||
Less than 12 months | $ 1,389 | $ 1,869 |
12 months or more | 1,248 | 1,350 |
Total | 2,637 | 3,219 |
Unrealized losses | ||
Less than 12 months | (13) | (16) |
12 months or more | (39) | (50) |
Total | $ (52) | $ (66) |
Commercial mortgage backed securities [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 58 | |
12 months or more | Positions | 4 | |
Total | Positions | 62 | |
Fair Value | ||
Less than 12 months | $ 695 | |
12 months or more | 49 | |
Total | 744 | |
Unrealized losses | ||
Less than 12 months | (13) | |
12 months or more | (1) | |
Total | $ (14) | |
Asset backed securities [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 36 | 50 |
12 months or more | Positions | 23 | 14 |
Total | Positions | 59 | 64 |
Fair Value | ||
Less than 12 months | $ 346 | $ 455 |
12 months or more | 316 | 254 |
Total | 662 | 709 |
Unrealized losses | ||
Less than 12 months | (9) | (7) |
12 months or more | (4) | (4) |
Total | $ (13) | $ (11) |
State and municipal obligations [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 5 | 31 |
12 months or more | Positions | 6 | 5 |
Total | Positions | 11 | 36 |
Fair Value | ||
Less than 12 months | $ 17 | $ 100 |
12 months or more | 126 | 110 |
Total | 143 | 210 |
Unrealized losses | ||
Less than 12 months | 0 | (1) |
12 months or more | (15) | (27) |
Total | $ (15) | $ (28) |
Foreign government bonds and obligations [Member] | ||
Number of securities | ||
Less than 12 months | Positions | 2 | 9 |
12 months or more | Positions | 16 | 15 |
Total | Positions | 18 | 24 |
Fair Value | ||
Less than 12 months | $ 7 | $ 39 |
12 months or more | 31 | 27 |
Total | 38 | 66 |
Unrealized losses | ||
Less than 12 months | 0 | (2) |
12 months or more | (7) | (9) |
Total | $ (7) | $ (11) |
Investments (OTTI rollforward)
Investments (OTTI rollforward) (Details 6) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
OTTI Recognized in Earnings | ||||
Beginning balance | $ 81 | $ 99 | $ 85 | $ 98 |
Credit losses for which an other-than-temporary impairment was not previously recognized | 0 | 1 | ||
Credit losses for which an other-than-temporary impairment was previously recognized | 0 | 1 | ||
Reductions for securities sold during the period (realized) | 0 | (14) | (5) | (14) |
Ending balance | $ 81 | $ 85 | $ 81 | $ 85 |
Investments (Realized GL Info)
Investments (Realized GL Info) (Details 7) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Investments | ||||
Other-than-temporary impairments | $ 0 | $ 0 | $ (1) | $ (1) |
Ameriprise Financial [Member] | ||||
Investments | ||||
Gross realized gains | 10 | 6 | 14 | 23 |
Gross realized losses | (5) | (1) | (9) | (6) |
Other-than-temporary impairments | 0 | 0 | (1) | (1) |
Total | $ 5 | $ 5 | $ 4 | $ 16 |
Investments (AFS contractual ma
Investments (AFS contractual maturity) (Details 8) - Ameriprise Financial [Member] - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Amortized cost | ||
Due within one year | $ 887 | |
Due after one year through five years | 7,240 | |
Due after five years through 10 years | 4,812 | |
Due after 10 years | 4,571 | |
Total having single maturity dates | 17,510 | |
Amortized cost | 28,172 | $ 27,752 |
Fair value | ||
Due within one year | 897 | |
Due after one year through five years | 7,721 | |
Due after five years through 10 years | 5,076 | |
Due after 10 years | 5,525 | |
Total having single maturity dates | 19,219 | |
Fair value | 30,158 | 28,673 |
Residential mortgage backed securities [Member] | ||
Amortized cost | ||
Without single maturity dates | 6,442 | |
Amortized cost | 6,442 | 5,933 |
Fair value | ||
Without single maturity dates | 6,538 | |
Fair value | 6,538 | 5,973 |
Commercial mortgage backed securities [Member] | ||
Amortized cost | ||
Without single maturity dates | 2,825 | |
Amortized cost | 2,825 | 2,400 |
Fair value | ||
Without single maturity dates | 2,964 | |
Fair value | 2,964 | 2,456 |
Asset backed securities [Member] | ||
Amortized cost | ||
Without single maturity dates | 1,387 | |
Amortized cost | 1,387 | 1,273 |
Fair value | ||
Without single maturity dates | 1,419 | |
Fair value | 1,419 | 1,296 |
Common stocks [Member] | ||
Amortized cost | ||
Without single maturity dates | 8 | |
Amortized cost | 8 | 7 |
Fair value | ||
Without single maturity dates | 18 | |
Fair value | $ 18 | $ 18 |
Financing Receivables (Allowanc
Financing Receivables (Allowance for Loan Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Purchases of financing receivables | $ 29 | $ 28 | $ 43 | $ 41 | |
Sales of financing receivables | 0 | 1 | 271 | 7 | |
Rollforward of the allowance for loan losses | |||||
Beginning balance | 32 | 35 | |||
Charge-offs | 0 | (2) | |||
Provisions | (1) | 1 | |||
Ending balance | 31 | 34 | 31 | 34 | |
Individually evaluated for impairment | 2 | 6 | 2 | 6 | |
Collectively evaluated for impairment | 29 | $ 28 | 29 | $ 28 | |
Credit quality information [Line Items] | |||||
Individually evaluated for impairment | 21 | 21 | $ 34 | ||
Collectively evaluated for impairment | 3,550 | 3,550 | 3,910 | ||
Total recorded investment, gross | 3,571 | 3,571 | 3,944 | ||
Recorded investment in financing receivables individually evaluated for impairment with no related allowance for loan losses | 16 | 16 | 21 | ||
Residential and Consumer Portfolio Segment [Member] | |||||
Sales of financing receivables | 271 | ||||
Proceeds from sales of financing receivables | 260 | ||||
Loss on sale of financing receivables | (11) | ||||
Credit quality information [Line Items] | |||||
Total recorded investment, gross | $ 330 | $ 330 | $ 636 |
Financing Receivables (Credit Q
Financing Receivables (Credit Quality Information Text) (Details 2) $ in Millions | Jun. 30, 2016USD ($)item | Dec. 31, 2015USD ($)item |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | $ 3,571 | $ 3,944 |
90 days or more past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonperforming loans | 10 | 10 |
Commercial Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | $ 2,713 | $ 2,755 |
Percentage of commercial mortgage loans with highest risk rating | 0.00% | 1.00% |
Syndicated loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | $ 528 | $ 553 |
Syndicated loans [Member] | 90 days or more past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonperforming loans | 10 | 6 |
Residential and Consumer Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | $ 330 | $ 636 |
Percentage of residential mortgage loans below specific FICO score | 3.00% | 4.00% |
FICO score | item | 640 | 640 |
Percentage of residential mortgage loans above specific LTV ratio | 0.00% | 2.00% |
LTV ratio | 90.00% | 90.00% |
Percentage of loan portfolio represented by state of California | 52.00% | 37.00% |
Percentage of loan portfolio represented by Colorado | 17.00% | |
Percentage of loan portfolio represented by Washington state | 14.00% |
Financing Receivables (Credit54
Financing Receivables (Credit Quality Information Tables) (Details 3) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 3,571 | $ 3,944 | ||
Less: allowance for loan losses | 31 | 32 | $ 34 | $ 35 |
Commercial Real Estate Portfolio Segment [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | 2,713 | 2,755 | ||
Less: allowance for loan losses | 21 | 21 | ||
Total loans, net | $ 2,692 | $ 2,734 | ||
Percentage of gross commercial mortgage loans | 100.00% | 100.00% | ||
Commercial Real Estate Portfolio Segment [Member] | Apartment Building [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 503 | $ 504 | ||
Percentage of gross commercial mortgage loans | 19.00% | 18.00% | ||
Commercial Real Estate Portfolio Segment [Member] | Hotel [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 34 | $ 35 | ||
Percentage of gross commercial mortgage loans | 1.00% | 1.00% | ||
Commercial Real Estate Portfolio Segment [Member] | Industrial [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 440 | $ 459 | ||
Percentage of gross commercial mortgage loans | 16.00% | 17.00% | ||
Commercial Real Estate Portfolio Segment [Member] | Mixed use [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 37 | $ 35 | ||
Percentage of gross commercial mortgage loans | 1.00% | 1.00% | ||
Commercial Real Estate Portfolio Segment [Member] | Office [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 513 | $ 541 | ||
Percentage of gross commercial mortgage loans | 19.00% | 20.00% | ||
Commercial Real Estate Portfolio Segment [Member] | Retail [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 972 | $ 984 | ||
Percentage of gross commercial mortgage loans | 36.00% | 36.00% | ||
Commercial Real Estate Portfolio Segment [Member] | Other [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 214 | $ 197 | ||
Percentage of gross commercial mortgage loans | 8.00% | 7.00% | ||
Commercial Real Estate Portfolio Segment [Member] | East North Central [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 201 | $ 211 | ||
Percentage of gross commercial mortgage loans | 7.00% | 8.00% | ||
Commercial Real Estate Portfolio Segment [Member] | East South Central [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 77 | $ 74 | ||
Percentage of gross commercial mortgage loans | 3.00% | 3.00% | ||
Commercial Real Estate Portfolio Segment [Member] | Middle Atlantic [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 207 | $ 210 | ||
Percentage of gross commercial mortgage loans | 8.00% | 8.00% | ||
Commercial Real Estate Portfolio Segment [Member] | Mountain [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 258 | $ 248 | ||
Percentage of gross commercial mortgage loans | 10.00% | 9.00% | ||
Commercial Real Estate Portfolio Segment [Member] | New England [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 109 | $ 123 | ||
Percentage of gross commercial mortgage loans | 4.00% | 4.00% | ||
Commercial Real Estate Portfolio Segment [Member] | Pacific [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 734 | $ 741 | ||
Percentage of gross commercial mortgage loans | 27.00% | 27.00% | ||
Commercial Real Estate Portfolio Segment [Member] | South Atlantic [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 773 | $ 782 | ||
Percentage of gross commercial mortgage loans | 28.00% | 28.00% | ||
Commercial Real Estate Portfolio Segment [Member] | West North Central [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 219 | $ 229 | ||
Percentage of gross commercial mortgage loans | 8.00% | 8.00% | ||
Commercial Real Estate Portfolio Segment [Member] | West South Central [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Gross | $ 135 | $ 137 | ||
Percentage of gross commercial mortgage loans | 5.00% | 5.00% |
Financing Receivables Financing
Financing Receivables Financing Receivables (Troubled Debt Restructurings) (Details 4) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Commitments to lend additional funds to borrowers whose loans have been restructured | $ 0 | $ 0 |
Deferred Acquisition Costs an56
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Details) - Ameriprise Financial [Member] - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Balances of and changes in DAC [Roll Forward] | ||
Balance, at the beginning of the period | $ 2,725 | $ 2,608 |
Capitalization of acquisition costs | 166 | 172 |
Amortization | (197) | (169) |
Impact of change in net unrealized securities (gains) losses | (94) | 47 |
Balance, at the end of the period | 2,600 | 2,658 |
Balances of and changes in DSIC [Roll Forward] | ||
Balance at the beginning of the period | 335 | 362 |
Capitalization of sales inducement costs | 2 | 2 |
Amortization | (22) | (25) |
Impact of change in net unrealized securities (gains) losses | (14) | 7 |
Balance at the end of the period | $ 301 | $ 346 |
Policyholder Account Balances57
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Balances by product) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Policyholder account balances | $ 20,581 | $ 20,650 |
Future policy benefits | 9,720 | 8,180 |
Policy claims and other policyholders' funds | 941 | 869 |
Policyholder account balances, future policy benefits and claims | 31,242 | 29,699 |
Fixed annuities [Member] | ||
Policyholder account balances | 10,889 | 11,239 |
Variable annuity fixed sub-accounts [Member] | ||
Policyholder account balances | 5,060 | 4,912 |
VUL/UL insurance [Member] | ||
Policyholder account balances | 2,947 | 2,897 |
IUL [Member] | ||
Policyholder account balances | 910 | 808 |
Other life insurance [Member] | ||
Policyholder account balances | 775 | 794 |
Variable annuity GMWB [Member] | ||
Future policy benefits | 2,156 | 1,057 |
Variable annuity GMAB [Member] | ||
Future policy benefits | 44 | 0 |
Other annuity liabilities [Member] | ||
Future policy benefits | 120 | 31 |
Fixed annuities life contingent liabilities [Member] | ||
Future policy benefits | 1,499 | 1,501 |
EIA [Member] | ||
Future policy benefits | 26 | 27 |
Life, disability income and long term care insurance [Member] | ||
Future policy benefits | 5,348 | 5,112 |
VUL/UL and other life insurance additional liabilities [Member] | ||
Future policy benefits | $ 527 | $ 452 |
Policyholder Account Balances58
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Separate Account Liabilities) (Details 2) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Separate Accounts Disclosure [Abstract] | ||
Variable annuity | $ 69,520 | $ 69,333 |
VUL insurance | 6,571 | 6,637 |
Other insurance | 33 | 34 |
Threadneedle investment liabilities | 4,106 | 4,345 |
Total | $ 80,230 | $ 80,349 |
Variable Annuity and Insuranc59
Variable Annuity and Insurance Guarantees (VA Guarantees Details) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | ||
GMDB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 73,657 | $ 73,270 |
Contract value in separate accounts | [1] | 68,647 | 68,406 |
Net amount at risk | [1] | $ 589 | $ 743 |
Weighted average attained age | [1] | 65 years | 65 years |
GMDB [Member] | Return of premium [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 55,533 | $ 54,716 |
Contract value in separate accounts | [1] | 53,623 | 52,871 |
Net amount at risk | [1] | $ 264 | $ 297 |
Weighted average attained age | [1] | 65 years | 65 years |
GMDB [Member] | Five/six-year reset [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 9,036 | $ 9,307 |
Contract value in separate accounts | [1] | 6,389 | 6,731 |
Net amount at risk | [1] | $ 46 | $ 78 |
Weighted average attained age | [1] | 65 years | 65 years |
GMDB [Member] | One-year ratchet [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 6,587 | $ 6,747 |
Contract value in separate accounts | [1] | 6,214 | 6,379 |
Net amount at risk | [1] | $ 183 | $ 266 |
Weighted average attained age | [1] | 67 years | 67 years |
GMDB [Member] | Five-year ratchet [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 1,581 | $ 1,613 |
Contract value in separate accounts | [1] | 1,522 | 1,556 |
Net amount at risk | [1] | $ 12 | $ 20 |
Weighted average attained age | [1] | 64 years | 63 years |
GMDB [Member] | Other [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 920 | $ 887 |
Contract value in separate accounts | [1] | 899 | 869 |
Net amount at risk | [1] | $ 84 | $ 82 |
Weighted average attained age | [1] | 71 years | 71 years |
GGU death benefit [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 1,050 | $ 1,056 |
Contract value in separate accounts | [1] | 998 | 1,004 |
Net amount at risk | [1] | $ 109 | $ 113 |
Weighted average attained age | [1] | 68 years | 67 years |
GMIB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 251 | $ 270 |
Contract value in separate accounts | [1] | 232 | 251 |
Net amount at risk | [1] | $ 14 | $ 17 |
Weighted average attained age | [1] | 68 years | 68 years |
GMWB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 41,367 | $ 40,419 |
Contract value in separate accounts | [1] | 41,233 | 40,288 |
Net amount at risk | [1] | $ 411 | $ 332 |
Weighted average attained age | [1] | 66 years | 66 years |
GMWB [Member] | GMWB standard benefit [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 2,891 | $ 3,118 |
Contract value in separate accounts | [1] | 2,882 | 3,109 |
Net amount at risk | [1] | $ 2 | $ 2 |
Weighted average attained age | [1] | 69 years | 69 years |
GMWB [Member] | GMWB for life [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 38,476 | $ 37,301 |
Contract value in separate accounts | [1] | 38,351 | 37,179 |
Net amount at risk | [1] | $ 409 | $ 330 |
Weighted average attained age | [1] | 66 years | 66 years |
GMAB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 3,779 | $ 4,018 |
Contract value in separate accounts | [1] | 3,769 | 4,006 |
Net amount at risk | [1] | $ 26 | $ 31 |
Weighted average attained age | [1] | 58 years | 58 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 Insuranc60
Variable Annuity and Insurance Guarantees (IUL Secondary Guarantees) (Details) - UL secondary guarantees [Member] - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Insurance Guarantees by Benefit Type | ||
Net amount at risk | $ 6,301 | $ 6,601 |
Weighted average attained age | 64 years | 63 years |
Variable Annuity and Insuranc61
Variable Annuity and Insurance Guarantees (Liability Rollforward) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | ||
GMDB and GGU [Member] | |||
Changes in Additional Liabilities for Variable Annuity and Insurance Guarantees | |||
Balance, at the beginning of the period | $ 14 | $ 9 | |
Incurred claims | 3 | 1 | |
Paid claims | (6) | (1) | |
Balance, at the end of the period | 11 | 9 | |
GMIB [Member] | |||
Changes in Additional Liabilities for Variable Annuity and Insurance Guarantees | |||
Balance, at the beginning of the period | 8 | 7 | |
Balance, at the end of the period | 8 | 7 | |
GMWB [Member] | |||
Changes in Additional Liabilities for Variable Annuity and Insurance Guarantees | |||
Balance, at the beginning of the period | [1] | 1,057 | 693 |
Incurred claims | [1] | 1,099 | (225) |
Balance, at the end of the period | [1] | 2,156 | 468 |
GMAB [Member] | |||
Changes in Additional Liabilities for Variable Annuity and Insurance Guarantees | |||
Balance, at the beginning of the period | [1] | 0 | (41) |
Incurred claims | [1] | 45 | (4) |
Paid claims | [1] | (1) | |
Balance, at the end of the period | [1] | 44 | (45) |
UL [Member] | |||
Changes in Additional Liabilities for Variable Annuity and Insurance Guarantees | |||
Balance, at the beginning of the period | 332 | 263 | |
Incurred claims | 44 | 45 | |
Paid claims | (12) | (12) | |
Balance, at the end of the period | $ 364 | $ 296 | |
[1] | The incurred claims for GMWB and GMAB represent the total change in the liabilities (contra liabilities). |
Variable Annuity and Insuranc62
Variable Annuity and Insurance Guarantees (Separate Account Balances by Type) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Mutual funds | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | $ 68,968 | $ 68,747 |
Equity [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | 40,061 | 39,806 |
Bond [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | 23,659 | 23,700 |
Other [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | $ 5,248 | $ 5,241 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - Ameriprise Financial [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | ||
Debt and stated interest rates | |||||
Long-term debt | $ 2,452 | $ 2,452 | $ 2,692 | ||
Total long-term debt | 2,452 | 2,452 | 2,692 | ||
Short-term borrowings | 200 | 200 | 200 | ||
Total | 2,652 | 2,652 | 2,892 | ||
Federal Home Loan Bank Advances [Member] | |||||
Debt and stated interest rates | |||||
Short-term borrowings | $ 150 | $ 150 | $ 150 | ||
Stated Interest Rate (as a percent) short-term debt | 0.60% | 0.60% | 0.50% | ||
Remaining maturity of outstanding amount of short term borrowings | 4 months | 3 months | |||
Repurchase agreements [Member] | |||||
Debt and stated interest rates | |||||
Short-term borrowings | $ 50 | $ 50 | $ 50 | ||
Stated Interest Rate (as a percent) short-term debt | 0.70% | 0.70% | 0.50% | ||
Remaining maturity of outstanding amount of short term borrowings | 1 month | 1 month | |||
Senior notes due 2019 [Member] | |||||
Debt and stated interest rates | |||||
Long-term debt | $ 300 | $ 300 | $ 300 | ||
Stated Interest Rate (as a percent) long-term debt | 7.30% | 7.30% | 7.30% | ||
Senior notes due 2020 [Member] | |||||
Debt and stated interest rates | |||||
Long-term debt | $ 750 | $ 750 | $ 750 | ||
Stated Interest Rate (as a percent) long-term debt | 5.30% | 5.30% | 5.30% | ||
Senior notes due 2023 [Member] | |||||
Debt and stated interest rates | |||||
Long-term debt | $ 750 | $ 750 | $ 750 | ||
Stated Interest Rate (as a percent) long-term debt | 4.00% | 4.00% | 4.00% | ||
Senior notes due 2024 [Member] | |||||
Debt and stated interest rates | |||||
Long-term debt | $ 550 | $ 550 | $ 550 | ||
Stated Interest Rate (as a percent) long-term debt | 3.70% | 3.70% | 3.70% | ||
Junior subordinated notes due 2066 [Member] | |||||
Debt and stated interest rates | |||||
Long-term debt | $ 0 | $ 0 | $ 245 | ||
Stated Interest Rate (as a percent) long-term debt | 0.00% | 0.00% | 7.50% | ||
Extinguishment of debt | $ 229 | $ 16 | |||
Gain on extinguishment of debt | $ 1 | ||||
Capitalized lease obligations [Member] | |||||
Debt and stated interest rates | |||||
Capitalized lease obligations | 55 | $ 55 | $ 60 | ||
Other [Member] | |||||
Debt and stated interest rates | |||||
Other | [1] | 47 | 47 | 37 | |
Residential mortgage backed securities [Member] | Repurchase agreements [Member] | |||||
Debt and stated interest rates | |||||
Available-for-sale securities pledged as collateral | 30 | 30 | 30 | ||
Commercial mortgage backed securities [Member] | Federal Home Loan Bank Advances [Member] | |||||
Debt and stated interest rates | |||||
Available-for-sale securities pledged as collateral | 416 | 416 | 290 | ||
Commercial mortgage backed securities [Member] | Repurchase agreements [Member] | |||||
Debt and stated interest rates | |||||
Available-for-sale securities pledged as collateral | $ 22 | $ 22 | $ 22 | ||
[1] | Amounts include adjustments for fair value hedges on the Company’s long-term debt and unamortized discount and debt issuance costs. See Note 12 for information on the Company’s fair value hedges. |
Line of Credit Narrative (Detai
Line of Credit Narrative (Details 2) - Ameriprise Financial [Member] - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Line of Credit Facility | ||
Line of credit borrowings outstanding | $ 0 | $ 0 |
Current borrowing capacity for line of credit facility | 500 | |
Maximum borrowing capacity for line of credit facility | 750 | |
Outstanding letters of credit issued against line of credit facility | $ 1 |
Fair Values of Assets and Lia65
Fair Values of Assets and Liabilities (Assets & liabilities reported at FV) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Dec. 31, 2015 | ||||
Liabilities | |||||
Derivative liability | [1],[2] | $ 6,212 | $ 4,300 | ||
Cumulative change in embedded derivatives due to nonperformance | (756) | (398) | |||
GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities | |||||
Derivative liability | 2,000 | 994 | |||
Derivative asset | 51 | 143 | |||
Ameriprise Financial [Member] | |||||
Assets | |||||
Available-for-Sale securities | 30,158 | 28,673 | |||
Separate account assets | 80,230 | 80,349 | |||
Ameriprise Financial [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 16,450 | 16,348 | |||
Ameriprise Financial [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 6,538 | 5,973 | |||
Ameriprise Financial [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 2,964 | 2,456 | |||
Ameriprise Financial [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 1,419 | 1,296 | |||
Ameriprise Financial [Member] | State and municipal obligations [Member] | |||||
Assets | |||||
Available-for-Sale securities | 2,480 | 2,290 | |||
Ameriprise Financial [Member] | U.S. government and agencies obligations [Member] | |||||
Assets | |||||
Available-for-Sale securities | 13 | 68 | |||
Ameriprise Financial [Member] | Foreign government bonds and obligations [Member] | |||||
Assets | |||||
Available-for-Sale securities | 276 | 224 | |||
Ameriprise Financial [Member] | Common stocks [Member] | |||||
Assets | |||||
Available-for-Sale securities | 18 | 18 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | |||||
Assets | |||||
Cash equivalents | 2,388 | 1,998 | |||
Available-for-Sale securities | 30,158 | 28,673 | |||
Trading securities | 35 | 24 | |||
Separate account assets | 80,230 | [3] | 80,349 | [4] | |
Investments segregated for regulatory purposes | 226 | 401 | |||
Other assets | 5,631 | 3,587 | |||
Total assets at fair value | 118,668 | 115,032 | |||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 2,378 | [5] | 1,220 | [6] | |
Customer deposits | 7 | 4 | |||
Other liabilities | 3,838 | 3,089 | |||
Total liabilities at fair value | 6,223 | 4,313 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Other liabilities [Member] | |||||
Liabilities | |||||
Other liabilities | 11 | 13 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Interest rate derivative contracts [Member] | |||||
Assets | |||||
Other assets | 3,940 | 1,940 | |||
Liabilities | |||||
Other liabilities | 1,866 | 969 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Equity derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1,558 | 1,587 | |||
Liabilities | |||||
Other liabilities | 1,812 | 1,993 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Credit derivative contracts [Member] | |||||
Assets | |||||
Other assets | 2 | ||||
Liabilities | |||||
Other liabilities | 12 | ||||
Ameriprise Financial [Member] | Recurring basis [Member] | Foreign exchange derivative contracts [Member] | |||||
Assets | |||||
Other assets | 125 | 56 | |||
Liabilities | |||||
Other liabilities | 39 | 18 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Other derivative contracts [Member] | |||||
Assets | |||||
Other assets | 8 | 2 | |||
Liabilities | |||||
Other liabilities | 98 | 96 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | EIA embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 5 | 5 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | IUL embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 408 | 364 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 1,965 | [7] | 851 | [8] | |
Ameriprise Financial [Member] | Recurring basis [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 16,450 | 16,348 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 6,538 | 5,973 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 2,964 | 2,456 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 1,419 | 1,296 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | State and municipal obligations [Member] | |||||
Assets | |||||
Available-for-Sale securities | 2,480 | 2,290 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | U.S. government and agencies obligations [Member] | |||||
Assets | |||||
Available-for-Sale securities | 13 | 68 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Foreign government bonds and obligations [Member] | |||||
Assets | |||||
Available-for-Sale securities | 276 | 224 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Common stocks [Member] | |||||
Assets | |||||
Available-for-Sale securities | 13 | 13 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Common stocks measured at NAV [Member] | |||||
Assets | |||||
Available-for-Sale securities | 5 | [3] | 5 | [4] | |
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | |||||
Assets | |||||
Cash equivalents | 70 | 80 | |||
Available-for-Sale securities | 15 | 38 | |||
Trading securities | 5 | 6 | |||
Investments segregated for regulatory purposes | 226 | 401 | |||
Other assets | 105 | 94 | |||
Total assets at fair value | 421 | 619 | |||
Liabilities | |||||
Other liabilities | 55 | 50 | |||
Total liabilities at fair value | 55 | 50 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | Other liabilities [Member] | |||||
Liabilities | |||||
Other liabilities | 6 | 1 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | Interest rate derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1 | ||||
Liabilities | |||||
Other liabilities | 1 | ||||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | Equity derivative contracts [Member] | |||||
Assets | |||||
Other assets | 68 | 92 | |||
Liabilities | |||||
Other liabilities | 41 | 47 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | Foreign exchange derivative contracts [Member] | |||||
Assets | |||||
Other assets | 36 | 2 | |||
Liabilities | |||||
Other liabilities | 5 | 2 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | Other derivative contracts [Member] | |||||
Liabilities | |||||
Other liabilities | 2 | ||||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | U.S. government and agencies obligations [Member] | |||||
Assets | |||||
Available-for-Sale securities | 11 | 33 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 1 [Member] | Common stocks [Member] | |||||
Assets | |||||
Available-for-Sale securities | 4 | 5 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | |||||
Assets | |||||
Cash equivalents | 2,318 | 1,918 | |||
Available-for-Sale securities | 28,457 | 26,822 | |||
Trading securities | 30 | 18 | |||
Other assets | 5,524 | 3,493 | |||
Total assets at fair value | 36,329 | 32,251 | |||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 5 | 5 | |||
Customer deposits | 7 | 4 | |||
Other liabilities | 3,783 | 3,039 | |||
Total liabilities at fair value | 3,795 | 3,048 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Other liabilities [Member] | |||||
Liabilities | |||||
Other liabilities | 5 | 12 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Interest rate derivative contracts [Member] | |||||
Assets | |||||
Other assets | 3,939 | 1,940 | |||
Liabilities | |||||
Other liabilities | 1,865 | 969 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Equity derivative contracts [Member] | |||||
Assets | |||||
Other assets | 1,490 | 1,495 | |||
Liabilities | |||||
Other liabilities | 1,771 | 1,946 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Credit derivative contracts [Member] | |||||
Assets | |||||
Other assets | 2 | ||||
Liabilities | |||||
Other liabilities | 12 | ||||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Foreign exchange derivative contracts [Member] | |||||
Assets | |||||
Other assets | 89 | 54 | |||
Liabilities | |||||
Other liabilities | 34 | 16 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Other derivative contracts [Member] | |||||
Assets | |||||
Other assets | 6 | 2 | |||
Liabilities | |||||
Other liabilities | 96 | 96 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | EIA embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 5 | 5 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 15,100 | 14,923 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 6,385 | 5,755 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 2,964 | 2,453 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 1,241 | 1,134 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | State and municipal obligations [Member] | |||||
Assets | |||||
Available-for-Sale securities | 2,480 | 2,290 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | U.S. government and agencies obligations [Member] | |||||
Assets | |||||
Available-for-Sale securities | 2 | 35 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Foreign government bonds and obligations [Member] | |||||
Assets | |||||
Available-for-Sale securities | 276 | 224 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 2 [Member] | Common stocks [Member] | |||||
Assets | |||||
Available-for-Sale securities | 9 | 8 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | |||||
Assets | |||||
Available-for-Sale securities | 1,681 | 1,808 | |||
Other assets | 2 | 0 | |||
Total assets at fair value | 1,683 | 1,808 | |||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 2,373 | 1,215 | |||
Total liabilities at fair value | 2,373 | 1,215 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | Other derivative contracts [Member] | |||||
Assets | |||||
Other assets | 2 | ||||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | IUL embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 408 | 364 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | GMWB and GMAB embedded derivatives [Member] | |||||
Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 1,965 | 851 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | Corporate debt securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 1,350 | 1,425 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | Residential mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 153 | 218 | |||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | Commercial mortgage backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | 3 | ||||
Ameriprise Financial [Member] | Recurring basis [Member] | Level 3 [Member] | Asset backed securities [Member] | |||||
Assets | |||||
Available-for-Sale securities | $ 178 | $ 162 | |||
[1] | The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and EIA embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. The fair value of the SMC embedded derivative liability is included in Customer deposits on the Consolidated Balance Sheets. | ||||
[2] | 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 $2.6 billion and $1.6 billion at June 30, 2016 and December 31, 2015, respectively. See Note 11 for additional information related to master netting arrangements and cash collateral. See Note 3 for information about derivatives held by consolidated VIEs. | ||||
[3] | Amounts are comprised of certain investments 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. See Note 2 for further information. | ||||
[4] | Amounts are comprised of certain investments 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. See Note 2 for further information. | ||||
[5] | The Company’s adjustment for nonperformance risk resulted in a $756 million cumulative decrease to the embedded derivatives. | ||||
[6] | The Company’s adjustment for nonperformance risk resulted in a $398 million cumulative decrease to the embedded derivatives. | ||||
[7] | The fair value of the GMWB and GMAB embedded derivatives included $2.0 billion of individual contracts in a liability position and $51 million of individual contracts in an asset position. | ||||
[8] | The fair value of the GMWB and GMAB embedded derivatives included $994 million of individual contracts in a liability position and $143 million of individual contracts in an asset position. |
Fair Values of Assets and Lia66
Fair Values of Assets and Liabilities (Level 3 rollforwards-Assets) (Details 2) - Ameriprise Financial [Member] - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |||||
Transfers from Level 1 to Level 2, assets | $ 0 | $ 0 | $ 0 | $ 0 | |
Transfers from Level 2 to Level 1, assets | 0 | 0 | 0 | 0 | |
Corporate debt securities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 1,411,000,000 | 1,526,000,000 | 1,425,000,000 | 1,518,000,000 | |
Total gains (losses) included in net income | (1,000,000) | (1,000,000) | (2,000,000) | (1,000,000) | |
Total gains (losses) included in other comprehensive income (loss) | 13,000,000 | (19,000,000) | 31,000,000 | (6,000,000) | |
Purchases | 14,000,000 | 40,000,000 | 14,000,000 | 55,000,000 | |
Settlements | (87,000,000) | (37,000,000) | (118,000,000) | (57,000,000) | |
Balance, at the end of the period | 1,350,000,000 | 1,509,000,000 | 1,350,000,000 | 1,509,000,000 | |
Changes in unrealized gains (losses) relating to assets held at the end of the period included in: | |||||
Changes in unrealized gains/ (losses) included in income relating to assets held at end of period | (1,000,000) | (1,000,000) | (1,000,000) | ||
Residential mortgage backed securities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 174,000,000 | 280,000,000 | 218,000,000 | 206,000,000 | |
Total gains (losses) included in other comprehensive income (loss) | 2,000,000 | (1,000,000) | |||
Purchases | 104,000,000 | 219,000,000 | |||
Settlements | (23,000,000) | (13,000,000) | (39,000,000) | (22,000,000) | |
Transfers out of Level 3 | (92,000,000) | (25,000,000) | (124,000,000) | ||
Balance, at the end of the period | 153,000,000 | 279,000,000 | 153,000,000 | 279,000,000 | |
Commercial mortgage backed securities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 10,000,000 | 20,000,000 | 3,000,000 | 91,000,000 | |
Purchases | 41,000,000 | 9,000,000 | 41,000,000 | ||
Settlements | (1,000,000) | (2,000,000) | (3,000,000) | (3,000,000) | |
Transfers into Level 3 | 6,000,000 | ||||
Transfers out of Level 3 | (9,000,000) | (15,000,000) | (9,000,000) | (91,000,000) | |
Balance, at the end of the period | 0 | 44,000,000 | 0 | 44,000,000 | |
Asset backed securities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 170,000,000 | 158,000,000 | 162,000,000 | 169,000,000 | |
Total gains (losses) included in net income | 0 | (1,000,000) | |||
Total gains (losses) included in other comprehensive income (loss) | (3,000,000) | (6,000,000) | |||
Purchases | 15,000,000 | 9,000,000 | 16,000,000 | 32,000,000 | |
Settlements | (1,000,000) | (12,000,000) | (1,000,000) | (14,000,000) | |
Transfers into Level 3 | 12,000,000 | 12,000,000 | |||
Transfers out of Level 3 | (15,000,000) | (20,000,000) | (25,000,000) | (52,000,000) | |
Balance, at the end of the period | 178,000,000 | 135,000,000 | 178,000,000 | 135,000,000 | |
Changes in unrealized gains (losses) relating to assets held at the end of the period included in: | |||||
Changes in unrealized gains/ (losses) included in income relating to assets held at end of period | (1,000,000) | ||||
Asset backed securities [Member] | Adjustments for New Accounting Pronouncement [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 21,000,000 | ||||
Common stocks [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 2,000,000 | 2,000,000 | |||
Transfers out of Level 3 | (2,000,000) | (2,000,000) | |||
Balance, at the end of the period | 0 | 0 | |||
Total available-for-sale securities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 1,765,000,000 | 1,986,000,000 | 1,808,000,000 | 1,986,000,000 | |
Total gains (losses) included in net income | [1] | (1,000,000) | (1,000,000) | (3,000,000) | (1,000,000) |
Total gains (losses) included in other comprehensive income (loss) | 12,000,000 | (19,000,000) | 24,000,000 | (6,000,000) | |
Purchases | 29,000,000 | 194,000,000 | 39,000,000 | 347,000,000 | |
Settlements | (112,000,000) | (64,000,000) | (161,000,000) | (96,000,000) | |
Transfers into Level 3 | 12,000,000 | 12,000,000 | 6,000,000 | ||
Transfers out of Level 3 | (24,000,000) | (129,000,000) | (59,000,000) | (269,000,000) | |
Balance, at the end of the period | 1,681,000,000 | 1,967,000,000 | 1,681,000,000 | 1,967,000,000 | |
Changes in unrealized gains (losses) relating to assets held at the end of the period included in: | |||||
Changes in unrealized gains/ (losses) included in income relating to assets held at end of period | (1,000,000) | (2,000,000) | (1,000,000) | ||
Total available-for-sale securities [Member] | Adjustments for New Accounting Pronouncement [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 21,000,000 | ||||
Other derivative contracts [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Purchases | 2,000,000 | 2,000,000 | |||
Balance, at the end of the period | $ 2,000,000 | $ 2,000,000 | |||
Trading securities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 1,000,000 | 1,000,000 | |||
Balance, at the end of the period | $ 1,000,000 | $ 1,000,000 | |||
[1] | Included in net investment income in the Consolidated Statements of Operations. |
Fair Values of Assets and Lia67
Fair Values of Assets and Liabilities (Level 3 rollforwards-Liabilities) (Details 3) - Ameriprise Financial [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||||||
Net increase (decrease) to pretax income from embedded derivative liability | $ 97 | $ (45) | $ 287 | $ (8) | ||||
Transfers from Level 1 to Level 2, liabilities | 0 | 0 | 0 | 0 | ||||
Transfers from Level 2 to Level 1, liabilities | 0 | 0 | 0 | 0 | ||||
IUL embedded derivatives [Member] | ||||||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | ||||||||
Balance, at the beginning of the period | 382 | 270 | 364 | 242 | ||||
Total gains (losses) included in net income | 4 | [1] | 0 | (4) | [1] | 14 | [1] | |
Issues | 29 | 26 | 61 | 45 | ||||
Settlements | (7) | (4) | (13) | (9) | ||||
Balance, at the end of the period | 408 | 292 | 408 | 292 | ||||
Changes in unrealized gains (losses) relating to liabilities held at the end of the period included in: | ||||||||
Interest credited to fixed accounts | 4 | (4) | 14 | |||||
GMWB and GMAB embedded derivatives [Member] | ||||||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | ||||||||
Balance, at the beginning of the period | 1,515 | 827 | 851 | 479 | ||||
Total gains (losses) included in net income | [2] | 386 | (659) | 988 | (379) | |||
Issues | 70 | 64 | 138 | 128 | ||||
Settlements | (6) | 3 | (12) | 7 | ||||
Balance, at the end of the period | 1,965 | 235 | 1,965 | 235 | ||||
Changes in unrealized gains (losses) relating to liabilities held at the end of the period included in: | ||||||||
Benefits, claims, losses and settlement expenses | 405 | (651) | 1,021 | (373) | ||||
Policyholder account balances, future policy benefits and claims [Member] | ||||||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | ||||||||
Balance, at the beginning of the period | 1,897 | 1,097 | 1,215 | 721 | ||||
Total gains (losses) included in net income | 390 | (659) | 984 | (365) | ||||
Issues | 99 | 90 | 199 | 173 | ||||
Settlements | (13) | (1) | (25) | (2) | ||||
Balance, at the end of the period | 2,373 | 527 | 2,373 | 527 | ||||
Changes in unrealized gains (losses) relating to liabilities held at the end of the period included in: | ||||||||
Interest credited to fixed accounts | 4 | (4) | 14 | |||||
Benefits, claims, losses and settlement expenses | $ 405 | $ (651) | $ 1,021 | $ (373) | ||||
[1] | Included in interest credited to fixed accounts in the Consolidated Statements of Operations. | |||||||
[2] | Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities (Unobservable inputs) (Details 4) - Ameriprise Financial [Member] $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | ||
IUL embedded derivatives [Member] | Discounted cash flow [Member] | |||
Fair values of assets and liabilities | |||
Liabilities at fair value | $ 408 | $ 364 | |
Nonperformance risk | [1] | 0.88% | 0.68% |
GMWB and GMAB embedded derivatives [Member] | Discounted cash flow [Member] | |||
Fair values of assets and liabilities | |||
Liabilities at fair value | $ 1,965 | $ 851 | |
Nonperformance risk | [1] | 0.88% | 0.68% |
GMWB and GMAB embedded derivatives [Member] | Discounted cash flow [Member] | Minimum [Member] | |||
Fair values of assets and liabilities | |||
Utilization of guaranteed withdrawals (as a percent) | [2] | 0.00% | 0.00% |
Surrender rate (as a percent) | 0.00% | 0.00% | |
Market volatility | [3] | 5.60% | 5.40% |
GMWB and GMAB embedded derivatives [Member] | Discounted cash flow [Member] | Maximum [Member] | |||
Fair values of assets and liabilities | |||
Utilization of guaranteed withdrawals (as a percent) | [2] | 75.60% | 75.60% |
Surrender rate (as a percent) | 59.10% | 59.10% | |
Market volatility | [3] | 22.30% | 21.50% |
Corporate debt securities [Member] | Discounted cash flow [Member] | |||
Fair values of assets and liabilities | |||
Assets at fair value | $ 1,346 | $ 1,411 | |
Corporate debt securities [Member] | Discounted cash flow [Member] | Minimum [Member] | |||
Fair values of assets and liabilities | |||
Yield/spread to U.S. Treasuries (as a percent) | 0.50% | 1.10% | |
Corporate debt securities [Member] | Discounted cash flow [Member] | Maximum [Member] | |||
Fair values of assets and liabilities | |||
Yield/spread to U.S. Treasuries (as a percent) | 3.40% | 3.80% | |
Corporate debt securities [Member] | Discounted cash flow [Member] | Weighted average [Member] | |||
Fair values of assets and liabilities | |||
Yield/spread to U.S. Treasuries (as a percent) | 1.60% | 1.60% | |
Other derivative contracts [Member] | Option pricing model [Member] | |||
Fair values of assets and liabilities | |||
Assets at fair value | $ 2 | ||
Other derivative contracts [Member] | Option pricing model [Member] | Weighted average [Member] | |||
Fair values of assets and liabilities | |||
Correlation | 0.9 | ||
Asset-backed Securities [Member] | Discounted cash flow [Member] | |||
Fair values of assets and liabilities | |||
Assets at fair value | $ 13 | ||
Asset-backed Securities [Member] | Discounted cash flow [Member] | Minimum [Member] | |||
Fair values of assets and liabilities | |||
Annual short-term default rate | 4.80% | ||
Annual long-term default rate | 2.50% | ||
Discount rate | 16.00% | ||
Constant prepayment rate | 5.00% | ||
Loss recovery | 36.40% | ||
Asset-backed Securities [Member] | Discounted cash flow [Member] | Maximum [Member] | |||
Fair values of assets and liabilities | |||
Annual short-term default rate | 4.80% | ||
Annual long-term default rate | 2.50% | ||
Discount rate | 16.00% | ||
Constant prepayment rate | 10.00% | ||
Loss recovery | 63.60% | ||
Asset-backed Securities [Member] | Discounted cash flow [Member] | Weighted average [Member] | |||
Fair values of assets and liabilities | |||
Annual short-term default rate | 4.80% | ||
Annual long-term default rate | 2.50% | ||
Discount rate | 16.00% | ||
Constant prepayment rate | 9.90% | ||
Loss recovery | 62.80% | ||
[1] | The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. | ||
[2] | The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. | ||
[3] | Market volatility is implied volatility of fund of funds and managed volatility funds. |
Fair Values of Assets and Lia69
Fair Values of Assets and Liabilities (Carrying & Estimated Fair Value of non-Fair Value Reported Instruments) (Details 5) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Financial Liabilities | |||
Separate account liabilities | $ 80,230 | $ 80,349 | |
Ameriprise Financial [Member] | |||
Financial Liabilities | |||
Separate account liabilities | 80,230 | 80,349 | |
Ameriprise Financial [Member] | Level 1 [Member] | |||
Financial Assets | |||
Receivables | 150 | 148 | |
Restricted and segregated cash | 2,640 | 2,548 | |
Other investments and assets | 1 | 1 | |
Financial Liabilities | |||
Brokerage customer deposits | 3,733 | 3,802 | |
Debt and other liabilities | 234 | 202 | |
Ameriprise Financial [Member] | Level 2 [Member] | |||
Financial Assets | |||
Policy and certificate loans | 1 | 1 | |
Receivables | 1,363 | 1,322 | |
Other investments and assets | 478 | 510 | |
Financial Liabilities | |||
Debt and other liabilities | 2,786 | 2,958 | |
Ameriprise Financial [Member] | Level 3 [Member] | |||
Financial Assets | |||
Mortgage loans, net | 3,178 | 3,372 | |
Policy and certificate loans | 806 | 803 | |
Receivables | 3 | 3 | |
Other investments and assets | 67 | 54 | |
Financial Liabilities | |||
Policyholder account balances, future policy benefits and claims | 12,349 | 12,424 | |
Investment certificate reserves | 5,391 | 4,823 | |
Debt and other liabilities | 109 | 113 | |
Ameriprise Financial [Member] | Estimate of Fair Value Measurement [Member] | |||
Financial Assets | |||
Mortgage loans, net | 3,178 | 3,372 | |
Policy and certificate loans | 807 | 804 | |
Receivables | 1,516 | 1,473 | |
Restricted and segregated cash | 2,640 | 2,548 | |
Other investments and assets | 546 | 565 | |
Financial Liabilities | |||
Policyholder account balances, future policy benefits and claims | 12,349 | 12,424 | |
Investment certificate reserves | 5,391 | 4,823 | |
Brokerage customer deposits | 3,733 | 3,802 | |
Separate account liabilities | [1] | 4,449 | 4,704 |
Debt and other liabilities | 3,129 | 3,273 | |
Ameriprise Financial [Member] | Carrying value [Member] | |||
Financial Assets | |||
Mortgage loans, net | 3,017 | 3,359 | |
Policy and certificate loans | 830 | 824 | |
Receivables | 1,511 | 1,471 | |
Restricted and segregated cash | 2,640 | 2,548 | |
Other investments and assets | 554 | 583 | |
Financial Liabilities | |||
Policyholder account balances, future policy benefits and claims | 11,228 | 11,523 | |
Investment certificate reserves | 5,400 | 4,831 | |
Brokerage customer deposits | 3,733 | 3,802 | |
Separate account liabilities | 4,449 | 4,704 | |
Debt and other liabilities | $ 2,895 | $ 3,173 | |
[1] | Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient. See Note 2 for further information. |
Offsetting Assets and Liabili70
Offsetting Assets and Liabilities (Assets Subject to Netting) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Derivatives [Abstract] | |||
Gross amounts of recognized assets | [1] | $ 5,631 | $ 3,587 |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [2] | (3,528) | (2,648) |
Cash collateral | (1,026) | (493) | |
Securities collateral | (1,026) | (320) | |
Net amount | 51 | 126 | |
Securities borrowed [Abstract] | |||
Gross amounts of recognized assets | 150 | 148 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [2] | (45) | (30) |
Securities borrowed | (104) | (115) | |
Net amount | 1 | 3 | |
Total [Abstract] | |||
Gross amounts of recognized assets | 5,781 | 3,735 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [2] | (3,573) | (2,678) |
Cash collateral | (1,026) | (493) | |
Securities collateral | (1,130) | (435) | |
Net amount | 52 | 129 | |
OTC [Member] | |||
Derivatives [Abstract] | |||
Gross amounts of recognized assets | 4,441 | 3,129 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [2] | (2,546) | (2,331) |
Cash collateral | (825) | (391) | |
Securities collateral | (1,026) | (320) | |
Net amount | 44 | 87 | |
OTC cleared [Member] | |||
Derivatives [Abstract] | |||
Gross amounts of recognized assets | 1,170 | 418 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [2] | (968) | (314) |
Cash collateral | (201) | (102) | |
Net amount | 1 | 2 | |
Exchange-traded [Member] | |||
Derivatives [Abstract] | |||
Gross amounts of recognized assets | 20 | 40 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [2] | (14) | (3) |
Net amount | $ 6 | $ 37 | |
[1] | The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. | ||
[2] | 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 Liabili71
Offsetting Assets and Liabilities (Details 2) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Derivatives [Abstract] | |||
Gross amounts of recognized liabilities | [1],[2] | $ 6,212 | $ 4,300 |
Securities loaned [Abstract] | |||
Gross amounts of recognized liabilities | 234 | 203 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [3] | (45) | (30) |
Securities collateral | (183) | (164) | |
Net amount | 6 | 9 | |
Repurchase agreements [Abstract] | |||
Gross amounts of recognized liabilities | 50 | 50 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Securities collateral | (50) | (50) | |
Net amount | 0 | 0 | |
Total [Abstract] | |||
Gross amounts of recognized liabilities | 4,111 | 3,329 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [3] | (3,573) | (2,678) |
Cash collateral | (92) | (26) | |
Securities collateral | (399) | (607) | |
Net amount | 47 | 18 | |
OTC [Member] | |||
Derivatives [Abstract] | |||
Gross amounts of recognized liabilities | 2,746 | 2,725 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [3] | (2,546) | (2,331) |
Cash collateral | 0 | ||
Securities collateral | (166) | (393) | |
Net amount | 34 | 1 | |
OTC cleared [Member] | |||
Derivatives [Abstract] | |||
Gross amounts of recognized liabilities | 1,065 | 345 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [3] | (968) | (314) |
Cash collateral | (91) | (25) | |
Net amount | 6 | 6 | |
Exchange-traded [Member] | |||
Derivatives [Abstract] | |||
Gross amounts of recognized liabilities | 16 | 6 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [3] | (14) | (3) |
Cash collateral | (1) | (1) | |
Net amount | 1 | 2 | |
Total derivatives [Member] | |||
Derivatives [Abstract] | |||
Gross amounts of recognized liabilities | 3,827 | 3,076 | |
Gross amounts not offset in the consolidated balance sheets [Abstract] | |||
Financial instruments | [3] | (3,528) | (2,648) |
Cash collateral | (92) | (26) | |
Securities collateral | (166) | (393) | |
Net amount | $ 41 | $ 9 | |
[1] | The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and EIA embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. The fair value of the SMC embedded derivative liability is included in Customer deposits on the Consolidated Balance Sheets. | ||
[2] | 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 $2.6 billion and $1.6 billion at June 30, 2016 and December 31, 2015, respectively. See Note 11 for additional information related to master netting arrangements and cash collateral. See Note 3 for information about derivatives held by consolidated VIEs. | ||
[3] | Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
Derivatives and Hedging Activ72
Derivatives and Hedging Activities (Balance Sheet) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Derivatives and Hedging Activities | |||
Notional amount | $ 144,812 | $ 143,479 | |
Derivative Liability After Application Of Master Netting Arrangements And Cash Collateral Including Embedded Derivative Liabilities | 2,600 | 1,600 | |
Derivative liability | [1],[2] | 6,212 | 4,300 |
Derivative asset | [3] | 5,631 | 3,587 |
Fair value of derivative collateral | 1,200 | 323 | |
Fair Value of Securities Received as Collateral that Can be Resold or Repledged | 893 | 193 | |
Fair Value of Securities Received as Collateral that Have Been Resold or Repledged | 52 | 0 | |
GMWB and GMAB [Member] | |||
Derivatives and Hedging Activities | |||
Derivative liability | 2,000 | 994 | |
Derivatives designated as hedging instruments [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 966 | 675 | |
Derivatives designated as hedging instruments [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Derivative asset | [3] | 85 | 58 |
Derivatives designated as hedging instruments [Member] | Interest rate contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 675 | 675 | |
Derivatives designated as hedging instruments [Member] | Interest rate contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Derivative asset | [3] | 66 | 58 |
Derivatives designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 291 | ||
Derivatives designated as hedging instruments [Member] | Foreign exchange contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Derivative asset | [3] | 19 | |
Derivatives not designated as hedging instruments [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 143,846 | 142,804 | |
Derivatives not designated as hedging instruments [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Derivative asset | [3] | 5,546 | 3,529 |
Derivatives not designated as hedging instruments [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Derivative liability | [1],[2] | 3,827 | 3,076 |
Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 74,431 | 63,798 | |
Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Derivative asset | [3] | 3,874 | 1,882 |
Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Derivative liability | [1],[2] | 1,866 | 969 |
Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 61,411 | 70,238 | |
Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Derivative asset | [3] | 1,558 | 1,587 |
Derivatives not designated as hedging instruments [Member] | Equity contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Derivative liability | [1],[2] | 1,812 | 1,993 |
Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 861 | 600 | |
Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Derivative asset | [3] | 2 | |
Derivatives not designated as hedging instruments [Member] | Credit contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Derivative liability | [1],[2] | 12 | |
Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 5,095 | 4,408 | |
Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Derivative asset | [3] | 106 | 56 |
Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Derivative liability | [1],[2] | 39 | 18 |
Derivatives not designated as hedging instruments [Member] | Other derivative contracts [Member] | |||
Derivatives and Hedging Activities | |||
Notional amount | 2,048 | 3,760 | |
Derivatives not designated as hedging instruments [Member] | Other derivative contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Derivative asset | [3] | 8 | 2 |
Derivatives not designated as hedging instruments [Member] | Other derivative contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Derivative liability | [1],[2] | 98 | 96 |
Derivatives not designated as hedging instruments [Member] | GMWB and GMAB [Member] | Policyholder account balances, future policy benefits and claims [Member] | |||
Derivatives and Hedging Activities | |||
Derivative liability | [1],[2],[4] | 1,965 | 851 |
Derivatives not designated as hedging instruments [Member] | IUL [Member] | Policyholder account balances, future policy benefits and claims [Member] | |||
Derivatives and Hedging Activities | |||
Derivative liability | [1],[2] | 408 | 364 |
Derivatives not designated as hedging instruments [Member] | EIA [Member] | Policyholder account balances, future policy benefits and claims [Member] | |||
Derivatives and Hedging Activities | |||
Derivative liability | [1],[2] | 5 | 5 |
Derivatives not designated as hedging instruments [Member] | SMC [Member] | Customer deposits [Member] | |||
Derivatives and Hedging Activities | |||
Derivative liability | [1],[2] | 7 | 4 |
Derivatives not designated as hedging instruments [Member] | Total embedded derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Derivative liability | [1],[2] | $ 2,385 | $ 1,224 |
[1] | The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and EIA embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. The fair value of the SMC embedded derivative liability is included in Customer deposits on the Consolidated Balance Sheets. | ||
[2] | 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 $2.6 billion and $1.6 billion at June 30, 2016 and December 31, 2015, respectively. See Note 11 for additional information related to master netting arrangements and cash collateral. See Note 3 for information about derivatives held by consolidated VIEs. | ||
[3] | The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets. | ||
[4] | The fair value of the GMWB and GMAB embedded derivatives at June 30, 2016 included $2.0 billion of individual contracts in a liability position and $51 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives at December 31, 2015 included $994 million of individual contracts in a liability position and $143 million of individual contracts in an asset position. |
Derivatives and Hedging Activ73
Derivatives and Hedging Activities (Income Statement) (Details 2) - Derivatives not designated as hedging instruments [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net investment income [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | $ (22) | $ (1) | $ (62) | $ (3) |
Net investment income [Member] | Interest rate contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (20) | (1) | (60) | (1) |
Net investment income [Member] | Equity contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (2) | |||
Net investment income [Member] | Foreign exchange contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (2) | (2) | ||
Banking and deposit interest expense [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (1) | (1) | 1 | |
Banking and deposit interest expense [Member] | Equity contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (1) | 1 | ||
Banking and deposit interest expense [Member] | SMC [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (1) | |||
Distribution expenses [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 3 | 0 | 4 | 4 |
Distribution expenses [Member] | Equity contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 4 | (1) | 2 | 6 |
Distribution expenses [Member] | Foreign exchange contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (1) | 1 | 2 | (2) |
Interest credited to fixed accounts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 4 | 2 | 15 | (6) |
Interest credited to fixed accounts [Member] | Equity contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 1 | (2) | (2) | (1) |
Interest credited to fixed accounts [Member] | IUL [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 3 | 4 | 17 | (5) |
Benefits, claims, losses and settlement expenses [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (130) | (101) | (164) | (201) |
Benefits, claims, losses and settlement expenses [Member] | Interest rate contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 449 | (562) | 1,204 | (176) |
Benefits, claims, losses and settlement expenses [Member] | Equity contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (96) | (137) | (161) | (259) |
Benefits, claims, losses and settlement expenses [Member] | Credit contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (15) | 14 | (31) | 5 |
Benefits, claims, losses and settlement expenses [Member] | Foreign exchange contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (19) | (2) | (54) | (8) |
Benefits, claims, losses and settlement expenses [Member] | Other derivative contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 1 | (6) | (8) | (7) |
Benefits, claims, losses and settlement expenses [Member] | GMWB and GMAB [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | (450) | $ 592 | (1,114) | 244 |
General and administrative expense [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 6 | 13 | 1 | |
General and administrative expense [Member] | Equity contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | 1 | $ 1 | ||
General and administrative expense [Member] | Foreign exchange contracts [Member] | ||||
Impact of derivatives not designated as hedging instruments on Consolidated Statements of Income | ||||
Amount of gain (loss) on derivatives recognized in income | $ 6 | $ 12 |
Derivatives and Hedging Activ74
Derivatives and Hedging Activites (Option Pay/Rec) (Details 3) $ in Millions | Jun. 30, 2016USD ($) | |
Summary of Option Premiums Payable and Receivable | ||
Premiums payable | $ 1,892 | |
Premiums receivable | 642 | |
2016 [Member] | ||
Summary of Option Premiums Payable and Receivable | ||
Premiums payable | 163 | [1] |
Premiums receivable | 38 | [1] |
2017 [Member] | ||
Summary of Option Premiums Payable and Receivable | ||
Premiums payable | 276 | |
Premiums receivable | 77 | |
2018 [Member] | ||
Summary of Option Premiums Payable and Receivable | ||
Premiums payable | 225 | |
Premiums receivable | 132 | |
2019 [Member] | ||
Summary of Option Premiums Payable and Receivable | ||
Premiums payable | 268 | |
Premiums receivable | 131 | |
2020 [Member] | ||
Summary of Option Premiums Payable and Receivable | ||
Premiums payable | 198 | |
Premiums receivable | 59 | |
2021-2027 [Member] | ||
Summary of Option Premiums Payable and Receivable | ||
Premiums payable | 762 | |
Premiums receivable | $ 205 | |
[1] | 2016 amounts represent the amounts payable and receivable for the period from July 1, 2016 to December 31, 2016. |
Derivatives and Hedging Activ75
Derivatives and Hedging Activities (Impact of Hedging Activity) (Details 4) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Derivative, Credit Risk Related Contingent Features [Abstract] | |||||
Derivative, Net Liability Position, Aggregate Fair Value | $ 185 | $ 185 | $ 284 | ||
Collateral Already Posted, Aggregate Fair Value | 156 | 156 | 283 | ||
Additional Collateral, Aggregate Fair Value | 29 | 29 | $ 1 | ||
Cash flow hedges [Member] | |||||
Derivative Instruments, Gain (Loss) | |||||
Estimated reclassification of net pretax losses on cash flow hedges from accumulated other comprehensive income to earnings during the next 12 months | 4 | ||||
Cash flow hedge gain to be reclassified within twelve months to interest and debt expense | (2) | ||||
Cash flow hedge loss to be reclassified within twelve months recorded in net investment income | $ 6 | ||||
Longest period of time over which the entity hedges exposure to the variability in future cash flows | 20 years | ||||
Net investment hedges [Member] | |||||
Derivative Instruments, Gain (Loss) | |||||
Gain on net investment hedge | 19 | ||||
Interest rate contracts [Member] | Interest and debt expense [Member] | Fair value hedges [Member] | |||||
Derivative Instruments, Gain (Loss) | |||||
Amount of gain recognized in income on derivatives | $ 5 | $ 8 | $ 10 | $ 16 |
Shareholders' Equity Comprehens
Shareholders' Equity Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net unrealized securities gains, before tax [Abstract] | ||||
Net unrealized securities gains arising during the period, before tax | $ 559 | $ (673) | $ 1,052 | $ (445) |
Reclassification of net securities (gains) losses included in net income, before tax | (5) | (5) | (4) | (16) |
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, before tax | (222) | 309 | (419) | 203 |
Net unrealized securities gains, before tax | 332 | (369) | 629 | (258) |
Net unrealized derivatives gains, before tax [Abstract] | ||||
Reclassification of net derivative losses included in net income, before tax | 2 | 0 | 3 | 0 |
Net unrealized derivatives gains, before tax | 2 | 0 | 3 | 0 |
Defined benefit plans net loss arising during the period, before tax | 9 | 0 | 9 | 0 |
Defined benefit plans, before tax | 9 | 0 | 9 | 0 |
Foreign currency translation, before tax | (42) | 55 | (59) | 7 |
Other comprehensive income attributable to Ameriprise Financial, before tax | 301 | (314) | 582 | (251) |
Other comprehensive loss attributable to noncontrolling interests, before tax | 0 | 101 | 0 | 15 |
Total other comprehensive income (loss), before tax | 301 | (213) | 582 | (236) |
Net unrealized securities gains (losses), tax impact [Abstract] | ||||
Net unrealized securities gains arising during the period, tax impact | (194) | 237 | (367) | 156 |
Reclassification of net securities gains (losses) included in net income, tax impact | 1 | 2 | 1 | 6 |
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, tax impact | 78 | (108) | 147 | (71) |
Net unrealized securities gains, tax impact | (115) | 131 | (219) | 91 |
Net unrealized derivatives losses, tax impact [Abstract] | ||||
Reclassification of net derivative losses included in net income, tax impact | (1) | 0 | (1) | 0 |
Net unrealized derivatives gains, tax impact | (1) | 0 | (1) | 0 |
Defined benefit plans net loss arising during the period, tax impact | (3) | 0 | (3) | 0 |
Defined benefit plans, tax impact | (3) | 0 | (3) | 0 |
Foreign currency translation, tax impact | 14 | (21) | 20 | (2) |
Other comprehensive income attributable to Ameriprise Financial, tax impact | (105) | 110 | (203) | 89 |
Other comprehensive loss attributable to noncontrolling interests, tax impact | 0 | (35) | 0 | (5) |
Total other comprehensive (income) loss, tax impact | (105) | 75 | (203) | 84 |
Net unrealized securities gains (losses), net of tax [Abstract] | ||||
Net unrealized securities gains arising during the period, net of tax | 365 | (436) | 685 | (289) |
Reclassification of net securities (gains) losses included in net income, net of tax | (4) | (3) | (3) | (10) |
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, net of tax | (144) | 201 | (272) | 132 |
Net unrealized securities gains, net of tax | 217 | (238) | 410 | (167) |
Net unrealized derivatives losses, net of tax [Abstract] | ||||
Reclassification of net derivative losses included in net income, net of tax | 1 | 0 | 2 | 0 |
Net unrealized derivatives gains, net of tax | 1 | 0 | 2 | 0 |
Defined benefit plans net loss arising during the period, net of tax | 6 | 0 | 6 | 0 |
Defined benefit plans, net of tax | 6 | 0 | 6 | 0 |
Foreign currency translation, net of tax | (28) | 34 | (39) | 5 |
Other comprehensive income attributable to Ameriprise Financial, net of tax | 196 | (204) | 379 | (162) |
Other comprehensive loss attributable to noncontrolling interest, net of tax | 0 | 66 | 0 | 10 |
Total other comprehensive income (loss), net of tax | 196 | (138) | 379 | (152) |
Interest and debt expense [Member] | ||||
Net unrealized derivatives gains (losses) reclassified from AOCI into income, effective portion, net | 1 | 1 | 1 | 2 |
Net investment income [Member] | ||||
Net unrealized derivatives gains (losses) reclassified from AOCI into income, effective portion, net | $ (2) | $ (1) | $ (3) | $ (2) |
AOCI Rollforward (Details 2)
AOCI Rollforward (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | $ 442 | $ 704 | $ 253 | $ 662 | ||
Cumulative effect of change in accounting policies | $ 6 | |||||
OCI before reclassifications | 193 | (201) | 374 | (152) | ||
Amounts reclassified from AOCI | 3 | (3) | 5 | (10) | ||
Other comprehensive income attributable to Ameriprise Financial, net of tax | 196 | (204) | 379 | (162) | ||
Ending balance | 638 | 500 | 638 | 500 | ||
Accumulated Other Comprehensive Income (Loss) Available For Sale Securities Impairment Other than Credit | 1 | 6 | 1 | 6 | ||
Net unrealized securities gains [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | 625 | 857 | 426 | 786 | ||
Cumulative effect of change in accounting policies | 6 | |||||
OCI before reclassifications | 221 | (235) | 413 | (157) | ||
Amounts reclassified from AOCI | (4) | (3) | (3) | (10) | ||
Other comprehensive income attributable to Ameriprise Financial, net of tax | 217 | (238) | 410 | (167) | ||
Ending balance | [1] | 842 | 619 | 842 | 619 | |
Net unrealized derivatives gains [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | 2 | 0 | 1 | 0 | ||
Cumulative effect of change in accounting policies | 0 | |||||
OCI before reclassifications | 0 | 0 | 0 | 0 | ||
Amounts reclassified from AOCI | 1 | 0 | 2 | 0 | ||
Other comprehensive income attributable to Ameriprise Financial, net of tax | 1 | 0 | 2 | 0 | ||
Ending balance | 3 | 0 | 3 | 0 | ||
Defined benefit plans [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | (91) | (71) | (91) | (71) | ||
Cumulative effect of change in accounting policies | 0 | |||||
OCI before reclassifications | 0 | 0 | 0 | 0 | ||
Amounts reclassified from AOCI | 6 | 0 | 6 | 0 | ||
Other comprehensive income attributable to Ameriprise Financial, net of tax | 6 | 0 | 6 | 0 | ||
Ending balance | (85) | (71) | (85) | (71) | ||
Foreign currency translation [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | (94) | (82) | (83) | (53) | ||
Cumulative effect of change in accounting policies | $ 0 | |||||
OCI before reclassifications | (28) | 34 | (39) | 5 | ||
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | ||
Other comprehensive income attributable to Ameriprise Financial, net of tax | (28) | 34 | (39) | 5 | ||
Ending balance | $ (122) | $ (48) | (122) | $ (48) | ||
Adjusted for change in accounting policies [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | 259 | |||||
Adjusted for change in accounting policies [Member] | Net unrealized securities gains [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | $ 432 | |||||
[1] | Net Unrealized Securities Gains Net Unrealized Derivatives Gains Defined Benefit Plans Foreign Currency Translation Total (in millions)Balance, April 1, 2016$625 $2 $(91) $(94) $442OCI before reclassifications221 — — (28) 193Amounts reclassified from AOCI(4) 1 6 — 3OCI attributable to Ameriprise Financial217 1 6 (28) 196Balance, June 30, 2016$842(1) $3 $(85) $(122) $638Balance, January 1, 2016$426 $1 $(91) $(83) $253Cumulative effect of change in accounting policies6 — — — 6Balance, January 1, 2016, as adjusted432 1 (91) (83) 259OCI before reclassifications413 — — (39) 374Amounts reclassified from AOCI(3) 2 6 — 5OCI attributable to Ameriprise Financial410 2 6 (39) 379Balance, June 30, 2016$842(1) $3 $(85) $(122) $638 Net Unrealized Securities Gains Net Unrealized Derivatives Gains Defined Benefit Plans Foreign Currency Translation Total (in millions)Balance, April 1, 2015$857 $— $(71) $(82) $704OCI before reclassifications(235) — — 34 (201)Amounts reclassified from AOCI(3) — — — (3)OCI attributable to Ameriprise Financial(238) — — 34 (204)Balance, June 30, 2015$619(1) $— $(71) $(48) $500Balance, January 1, 2015$786 $— $(71) $(53) $662OCI before reclassifications(157) — — 5 (152)Amounts reclassified from AOCI(10) — — — (10)OCI attributable to Ameriprise Financial(167) — — 5 (162)Balance, June 30, 2015$619(1) $— $(71) $(48) $500 |
Changes in Shareholders' Equity
Changes in Shareholders' Equity (Details 3) - USD ($) shares in Millions, $ in Millions | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Apr. 28, 2014 | |
Stock repurchase program, authorized amount | $ 2,500 | $ 2,500 | ||
Remaining balance under stock repurchase program | $ 1,700 | |||
Number of shares reacquired through surrender of restricted shares | 0.3 | 0.3 | ||
Value of shares reacquired through surrender of restricted shares | $ 29 | $ 44 | ||
Number of shares reacquired through net settlement options | 0.2 | 0.7 | ||
Aggregate value of shares reacquired through net settlement options | $ 18 | $ 87 | ||
Treasury shares reissued for restricted stock award grants and Ameriprise Financial Franchise Advisor Deferred Compensation Plan | 0.9 | 1 | ||
Open Market Share Repurchases [Member] | ||||
Repurchase of common shares (in shares) | 9.8 | 6 | ||
Repurchase of common shares | $ 895 | $ 774 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||||
Effective tax rate on income from continuing operations (as a percent) | 18.40% | 22.60% | 21.00% | 22.60% | |
Benefits Tax Planning and Completion of Audits | $ 17 | $ 17 | |||
Valuation allowance | 11 | 11 | $ 11 | ||
Gross unrecognized tax benefit (expense) | 119 | 119 | 161 | ||
Unrecognized tax benefits (net of federal tax benefits) that would impact the effective tax rate | 50 | 50 | 57 | ||
Increase (reduction) in interest and penalties | 0 | $ 1 | 44 | $ 2 | |
Accrued interest and penalties | 7 | 7 | $ 51 | ||
Minimum [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Decrease in gross unrecognized tax benefits due to resolution of IRS examination | 60 | 60 | |||
Maximum [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Decrease in gross unrecognized tax benefits due to resolution of IRS examination | 70 | 70 | |||
State and Local [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
State net operating losses | $ 15 | $ 15 |
Guarantees and Contingencies (D
Guarantees and Contingencies (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Insurance-related Assessments [Member] | ||
Contingencies | ||
Liability related to guaranty fund assessments | $ 13 | $ 13 |
Premium tax asset | 12 | $ 12 |
Otkritie Capital International LTD and JSC Otkririe Holding v. Threadneedle Asset Management LTD. and Threadneedle Management Services Ltd. [Member] | Pending Litigation [Member] | ||
Contingencies | ||
Damages sought by plaintiffs | $ 120 |
Earnings per Share Attributab81
Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders (Basic & Diluted) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Numerator: | ||||
Net income attributable to Ameriprise Financial | $ 335 | $ 415 | $ 699 | $ 808 |
Denominator: | ||||
Basic: Weighted-average common shares outstanding | 168.3 | 183.8 | 170.4 | 185.1 |
Effect of potentially dilutive nonqualified stock options and other share-based awards (in shares) | 1.8 | 2.6 | 1.8 | 2.6 |
Diluted: Weighted-average common shares outstanding | 170.1 | 186.4 | 172.2 | 187.7 |
Basic: | ||||
Net income (in dollars per share) | $ 1.99 | $ 2.26 | $ 4.10 | $ 4.37 |
Diluted: | ||||
Net income (in dollars per share) | $ 1.97 | $ 2.23 | $ 4.06 | $ 4.30 |
Effect of potentially dilutive nonqualified stock options and other share-based awards (in shares) | 4.9 | 1.6 |
Segment Information - Total Ass
Segment Information - Total Assets (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Summary of assets by segment | ||
Total assets | $ 142,684 | $ 145,319 |
Advice & Wealth Management [Member] | ||
Summary of assets by segment | ||
Total assets | 11,738 | 11,338 |
Asset Management [Member] | ||
Summary of assets by segment | ||
Total assets | 8,318 | 7,931 |
Annuities [Member] | ||
Summary of assets by segment | ||
Total assets | 96,009 | 94,002 |
Protection [Member] | ||
Summary of assets by segment | ||
Total assets | 22,026 | 20,755 |
Corporate & Other [Member] | ||
Summary of assets by segment | ||
Total assets | $ 4,593 | $ 11,293 |
Segment Information - Operating
Segment Information - Operating net revenues (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Summary of segment operating results [Abstract] | |||||
Total segment operating revenues | $ 2,856 | $ 2,983 | $ 5,644 | $ 5,881 | |
Net realized gains (losses) | 5 | 5 | (11) | 15 | |
Revenues attributable to CIEs | 26 | 141 | 50 | 290 | |
Market impact on IUL benefits, net | 3 | 12 | (4) | ||
Market impact of hedges on investments | (19) | (1) | (59) | (1) | |
Total net revenues | [1],[2] | 2,871 | 3,128 | 5,636 | 6,181 |
Reconciliation of operating profit (loss) from segments to consolidated | |||||
Total segment operating earnings | 476 | 582 | 973 | 1,144 | |
Net realized gains (losses) | 5 | 5 | (11) | 15 | |
Net income (loss) attributable to CIEs | 1 | 61 | (1) | 147 | |
Market impact on variable annuity guaranteed benefits, net | (58) | (36) | (41) | (70) | |
Market impact on IUL benefits, net | 5 | 5 | 24 | (1) | |
Market impact of hedges on investments | (19) | (1) | (59) | (1) | |
Integration and restructuring charges | 0 | (1) | 0 | (1) | |
Pretax income | 410 | 615 | 885 | 1,233 | |
Advice & Wealth Management [Member] | |||||
Summary of segment operating results [Abstract] | |||||
Total segment operating revenues | 1,250 | 1,274 | 2,448 | 2,502 | |
Reconciliation of operating profit (loss) from segments to consolidated | |||||
Total segment operating earnings | 221 | 220 | 426 | 430 | |
Asset Management [Member] | |||||
Summary of segment operating results [Abstract] | |||||
Total segment operating revenues | 739 | 832 | 1,463 | 1,639 | |
Reconciliation of operating profit (loss) from segments to consolidated | |||||
Total segment operating earnings | 148 | 197 | 297 | 388 | |
Annuities [Member] | |||||
Summary of segment operating results [Abstract] | |||||
Total segment operating revenues | 619 | 651 | 1,215 | 1,282 | |
Reconciliation of operating profit (loss) from segments to consolidated | |||||
Total segment operating earnings | 146 | 150 | 270 | 322 | |
Protection [Member] | |||||
Summary of segment operating results [Abstract] | |||||
Total segment operating revenues | 604 | 600 | 1,212 | 1,190 | |
Reconciliation of operating profit (loss) from segments to consolidated | |||||
Total segment operating earnings | 37 | 72 | 106 | 123 | |
Corporate & Other [Member] | |||||
Summary of segment operating results [Abstract] | |||||
Total segment operating revenues | (7) | (2) | (5) | (8) | |
Reconciliation of operating profit (loss) from segments to consolidated | |||||
Total segment operating earnings | (76) | (57) | (126) | (119) | |
Eliminations [Member] | |||||
Summary of segment operating results [Abstract] | |||||
Total segment operating revenues | [3],[4] | (349) | (372) | (689) | (724) |
Eliminations [Member] | Advice & Wealth Management [Member] | |||||
Summary of segment operating results [Abstract] | |||||
Total segment operating revenues | 244 | 264 | 483 | 511 | |
Eliminations [Member] | Asset Management [Member] | |||||
Summary of segment operating results [Abstract] | |||||
Total segment operating revenues | 10 | 11 | 21 | 22 | |
Eliminations [Member] | Annuities [Member] | |||||
Summary of segment operating results [Abstract] | |||||
Total segment operating revenues | 83 | 86 | 162 | 170 | |
Eliminations [Member] | Protection [Member] | |||||
Summary of segment operating results [Abstract] | |||||
Total segment operating revenues | 11 | 11 | 22 | 21 | |
Eliminations [Member] | Corporate & Other [Member] | |||||
Summary of segment operating results [Abstract] | |||||
Total segment operating revenues | 1 | 0 | 1 | 0 | |
Non-US [Member] | |||||
Summary of segment operating results [Abstract] | |||||
Total net revenues | $ 166 | $ 293 | $ 338 | $ 526 | |
[1] | Includes foreign net revenues of $166 million and $293 million for the three months ended June 30, 2016 and 2015, respectively. | ||||
[2] | Includes foreign net revenues of $338 million and $526 million for the six months ended June 30, 2016 and 2015, respectively. | ||||
[3] | Represents the elimination of intersegment revenues recognized for the six months ended June 30, 2016 and 2015 in each segment as follows: Advice & Wealth Management ($483 million and $511 million, respectively); Asset Management ($21 million and $22 million, respectively); Annuities ($162 million and $170 million, respectively); Protection ($22 million and $21 million, respectively); and Corporate & Other ($1 million and nil, respectively). | ||||
[4] | Represents the elimination of intersegment revenues recognized for the three months ended June 30, 2016 and 2015 in each segment as follows: Advice & Wealth Management ($244 million and $264 million, respectively); Asset Management ($10 million and $11 million, respectively); Annuities ($83 million and $86 million, respectively); Protection ($11 million and $11 million, respectively); and Corporate & Other ($1 million and nil, respectively). |