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Investments | 9 Months Ended
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Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract] |
Investments [Text Block] | Investments The following is a summary of Ameriprise Financial investments:
| September 30, 2019 |  | December 31, 2018
(in millions)
Available-for-Sale securities, at fair value | $ | 30,967 |  |  | $ | 31,058 |
Mortgage loans, net | 2,704 |  |  | 2,696 |
Policy loans | 864 |  |  | 861 |
Other investments | 1,190 |  |  | 1,210 |
Total | $ | 35,725 |  |  | $ | 35,825 |
Other investments primarily reflect the Company’s interests in affordable housing partnerships, trading securities, seed money investments, syndicated loans, credit card receivables and certificates of deposit with original or remaining maturities at the time of purchase of more than 90 days. The following is a summary of net investment income:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
2019 |  | 2018 |  | 2019 |  | 2018
(in millions)
Investment income on fixed maturities | $ | 349 |  |  | $ | 339 |  |  | $ | 1,046 |  |  | $ | 1,002 |
Net realized gains (losses) (1) | (10 | ) |  | 4 |  |  | (6 | ) |  | 15 |
Affordable housing partnerships | (26 | ) |  | (24 | ) |  | (58 | ) |  | (49 | )
Other | 19 |  |  | 43 |  |  | 67 |  |  | 132 |
Consolidated investment entities | 24 |  |  | 24 |  |  | 72 |  |  | 101 |
Total | $ | 356 |  |  | $ | 386 |  |  | $ | 1,121 |  |  | $ | 1,201 |
(1) | Net realized gains for the nine months ended September 30, 2019 included other-than-temporary impairments (“OTTI”) on investments held by AAH, which were classified as held for sale on the Consolidated Balance Sheet as of September 30, 2019. See Note 15 for additional information.
Available-for-Sale securities distributed by type were as follows:
Description of Securities | September 30, 2019
Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Noncredit OTTI (1)
| (in millions)
Corporate debt securities | $ | 11,203 |  |  | $ | 1,318 |  |  | $ | (13 | ) |  | $ | 12,508 |  |  | $ | — |
Residential mortgage backed securities | 8,020 |  |  | 104 |  |  | (12 | ) |  | 8,112 |  |  | — |
Commercial mortgage backed securities | 5,144 |  |  | 134 |  |  | (3 | ) |  | 5,275 |  |  | — |
Asset backed securities | 1,631 |  |  | 51 |  |  | (2 | ) |  | 1,680 |  |  | 1 |
State and municipal obligations | 1,166 |  |  | 265 |  |  | (3 | ) |  | 1,428 |  |  | — |
U.S. government and agency obligations | 1,692 |  |  | 1 |  |  | — |  |  | 1,693 |  |  | — |
Foreign government bonds and obligations | 256 |  |  | 18 |  |  | (3 | ) |  | 271 |  |  | — |
Total | $ | 29,112 |  |  | $ | 1,891 |  |  | $ | (36 | ) |  | $ | 30,967 |  |  | $ | 1 |
Description of Securities | December 31, 2018
Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Noncredit OTTI (1)
| (in millions)
Corporate debt securities | $ | 13,741 |  |  | $ | 555 |  |  | $ | (230 | ) |  | $ | 14,066 |  |  | $ | — |
Residential mortgage backed securities | 6,373 |  |  | 34 |  |  | (78 | ) |  | 6,329 |  |  | — |
Commercial mortgage backed securities | 4,975 |  |  | 18 |  |  | (116 | ) |  | 4,877 |  |  | — |
Asset backed securities | 1,373 |  |  | 36 |  |  | (11 | ) |  | 1,398 |  |  | 1 |
State and municipal obligations | 2,166 |  |  | 192 |  |  | (13 | ) |  | 2,345 |  |  | — |
U.S. government and agency obligations | 1,745 |  |  | — |  |  | — |  |  | 1,745 |  |  | — |
Foreign government bonds and obligations | 298 |  |  | 9 |  |  | (9 | ) |  | 298 |  |  | — |
Total | $ | 30,671 |  |  | $ | 844 |  |  | $ | (457 | ) |  | $ | 31,058 |  |  | $ | 1 |
(1) | Represents the amount of OTTI losses in 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 September 30, 2019 and December 31, 2018, investment securities with a fair value of $2.4 billion and $1.5 billion, respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $724 million and $510 million, respectively, may be sold, pledged or rehypothecated by the counterparty. As of both September 30, 2019 and December 31, 2018, fixed maturity securities comprised approximately 87% 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. As of September 30, 2019 and December 31, 2018, the Company’s internal analysts rated $609 million and $755 million, respectively, of securities using criteria similar to those used by NRSROs. A summary of fixed maturity securities by rating was as follows:
Ratings | September 30, 2019 |  | December 31, 2018
Amortized Cost |  | Fair Value |  | Percent of Total Fair Value | Amortized Cost |  | Fair Value |  | Percent of Total Fair Value
| (in millions, except percentages)
AAA | $ | 15,675 |  |  | $ | 15,916 |  |  | 51 | % |  | $ | 13,399 |  |  | $ | 13,252 |  |  | 43 | %
AA | 1,080 |  |  | 1,291 |  |  | 4 |  |  | 1,571 |  |  | 1,723 |  |  | 5 |
A | 3,020 |  |  | 3,498 |  |  | 11 |  |  | 3,667 |  |  | 3,899 |  |  | 13 |
BBB | 8,542 |  |  | 9,441 |  |  | 31 |  |  | 11,102 |  |  | 11,290 |  |  | 36 |
Below investment grade (1) | 795 |  |  | 821 |  |  | 3 |  |  | 932 |  |  | 894 |  |  | 3 |
Total fixed maturities | $ | 29,112 |  |  | $ | 30,967 |  |  | 100 | % |  | $ | 30,671 |  |  | $ | 31,058 |  |  | 100 | %
(1) | The amortized cost and fair value of below investment grade securities includes interest in CLOs managed by the Company of $4 million and $6 million, respectively, at September 30, 2019, and $5 million and $6 million, respectively, at December 31, 2018. These securities are not rated but are included in below investment grade due to their risk characteristics.
As of September 30, 2019 and December 31, 2018, approximately 41% and 36%, respectively, of securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any 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 | September 30, 2019
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 | 20 |  |  | $ | 135 |  |  | $ | (2 | ) |  | 39 |  |  | $ | 407 |  |  | $ | (11 | ) |  | 59 |  |  | $ | 542 |  |  | $ | (13 | )
Residential mortgage backed securities | 88 |  |  | 1,933 |  |  | (4 | ) |  | 113 |  |  | 1,201 |  |  | (8 | ) |  | 201 |  |  | 3,134 |  |  | (12 | )
Commercial mortgage backed securities | 39 |  |  | 1,054 |  |  | (2 | ) |  | 30 |  |  | 278 |  |  | (1 | ) |  | 69 |  |  | 1,332 |  |  | (3 | )
Asset backed securities | 17 |  |  | 237 |  |  | — |  |  | 16 |  |  | 195 |  |  | (2 | ) |  | 33 |  |  | 432 |  |  | (2 | )
State and municipal obligations | 1 |  |  | 4 |  |  | — |  |  | 4 |  |  | 79 |  |  | (3 | ) |  | 5 |  |  | 83 |  |  | (3 | )
Foreign government bonds and obligations | 2 |  |  | 5 |  |  | — |  |  | 13 |  |  | 26 |  |  | (3 | ) |  | 15 |  |  | 31 |  |  | (3 | )
Total | 167 |  |  | $ | 3,368 |  |  | $ | (8 | ) |  | 215 |  |  | $ | 2,186 |  |  | $ | (28 | ) |  | 382 |  |  | $ | 5,554 |  |  | $ | (36 | )
Description of Securities | December 31, 2018
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 | 345 |  |  | $ | 5,522 |  |  | $ | (152 | ) |  | 148 |  |  | $ | 1,717 |  |  | $ | (78 | ) |  | 493 |  |  | $ | 7,239 |  |  | $ | (230 | )
Residential mortgage backed securities | 142 |  |  | 2,029 |  |  | (18 | ) |  | 175 |  |  | 2,132 |  |  | (60 | ) |  | 317 |  |  | 4,161 |  |  | (78 | )
Commercial mortgage backed securities | 104 |  |  | 2,062 |  |  | (30 | ) |  | 112 |  |  | 1,806 |  |  | (86 | ) |  | 216 |  |  | 3,868 |  |  | (116 | )
Asset backed securities | 38 |  |  | 491 |  |  | (6 | ) |  | 35 |  |  | 396 |  |  | (5 | ) |  | 73 |  |  | 887 |  |  | (11 | )
State and municipal obligations | 81 |  |  | 255 |  |  | (4 | ) |  | 100 |  |  | 254 |  |  | (9 | ) |  | 181 |  |  | 509 |  |  | (13 | )
Foreign government bonds and obligations | 17 |  |  | 86 |  |  | (4 | ) |  | 14 |  |  | 17 |  |  | (5 | ) |  | 31 |  |  | 103 |  |  | (9 | )
Total | 727 |  |  | $ | 10,445 |  |  | $ | (214 | ) |  | 584 |  |  | $ | 6,322 |  |  | $ | (243 | ) |  | 1,311 |  |  | $ | 16,767 |  |  | $ | (457 | )
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 lower interest rates as well as tighter credit spreads. The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Operations for OTTI related to credit losses on Available-for-Sale securities for which a portion of the securities’ total OTTI was recognized in OCI:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
2019 |  | 2018 | 2019 |  | 2018
(in millions)
Beginning balance | $ | 2 |  |  | $ | 2 |  |  | $ | 2 |  |  | $ | 2 |
Credit losses for which an other-than-temporary impairment was not previously recognized | 15 |  |  | — |  |  | 15 |  |  | — |
Ending balance | $ | 17 |  |  | $ | 2 |  |  | $ | 17 |  |  | $ | 2 |
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 September 30, |  | Nine Months Ended September 30,
2019 |  | 2018 | 2019 |  | 2018
(in millions)
Gross realized investment gains | $ | 6 |  |  | $ | 4 |  |  | $ | 28 |  |  | $ | 15 |
Gross realized investment losses | (1 | ) |  | — |  |  | (13 | ) |  | (1 | )
Other-than-temporary impairments | (15 | ) |  | — |  |  | (20 | ) |  | — |
Total | $ | (10 | ) |  | $ | 4 |  |  | $ | (5 | ) |  | $ | 14 |
Other-than-temporary impairments for the three months ended September 30, 2019 primarily related to credit losses on corporate debt securities. Other-than-temporary impairments for the nine months ended September 30, 2019 primarily related to credit losses on corporate debt securities and investments held by AAH, which were classified as held for sale on the Consolidated Balance Sheet as of September 30, 2019. See Note 15 for additional information. See Note 16 for a rollforward of net unrealized investment gains (losses) included in AOCI. Available-for-Sale securities by contractual maturity as of September 30, 2019 were as follows:
| Amortized Cost |  | Fair Value
(in millions)
Due within one year | $ | 2,608 |  |  | $ | 2,611 |
Due after one year through five years | 4,749 |  |  | 4,913 |
Due after five years through 10 years | 2,817 |  |  | 3,040 |
Due after 10 years | 4,143 |  |  | 5,336 |
| 14,317 |  |  | 15,900 |
Residential mortgage backed securities | 8,020 |  |  | 8,112 |
Commercial mortgage backed securities | 5,144 |  |  | 5,275 |
Asset backed securities | 1,631 |  |  | 1,680 |
Total | $ | 29,112 |  |  | $ | 30,967 |
Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities, commercial mortgage backed securities and asset backed securities are not due at a single maturity date. As such, these securities were not included in the maturities distribution.

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