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Investments | 12 Months Ended
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Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract] |
Investments [Text Block] | Investments The following is a summary of investments:
| December 31,
2020 |  | 2019
(in millions)
Available-for-Sale securities, at fair value | $ | 36,283 |  |  | $ | 33,129 |
Mortgage loans, net (net of allowance for credit losses: 2020, $29; 2019, $19) | 2,718 |  |  | 2,778 |
Policy loans | 846 |  |  | 868 |
Other investments, net (net of allowance for credit losses: 2020, $12; 2019, $5) | 1,184 |  |  | 1,140 |
Total | $ | 41,031 |  |  | $ | 37,915 |
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:
| Years Ended December 31,
2020 |  | 2019 |  | 2018
(in millions)
Investment income on fixed maturities | $ | 1,161 |  |  | $ | 1,378 |  |  | $ | 1,353 |
Net realized gains (losses) | (10) |  | (1) | (8) |  |  | 10 |
Affordable housing partnerships | (66) |  |  | (98) |  |  | (58) |
Other | 89 |  |  | 97 |  |  | 154 |
Consolidated investment entities | 77 |  |  | 94 |  |  | 137 |
Total | $ | 1,251 |  |  | $ | 1,463 |  |  | $ | 1,596 |
(1) Includes the change in the allowance for credit losses of $(27) million for the year ended December 31, 2020. Available-for-Sale securities distributed by type were as follows:
Description of Securities | December 31, 2020
Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for Credit Losses |  | Fair Value
| (in millions)
Corporate debt securities | $ | 11,762 |  |  | $ | 1,924 |  |  | $ | (2) |  |  | $ | (10) |  |  | $ | 13,674 |
Residential mortgage backed securities | 9,845 |  |  | 188 |  |  | (4) |  |  | — |  |  | 10,029 |
Commercial mortgage backed securities | 5,867 |  |  | 242 |  |  | (21) |  |  | — |  |  | 6,088 |
Asset backed securities | 3,283 |  |  | 52 |  |  | (5) |  |  | (1) |  |  | 3,329 |
State and municipal obligations | 1,088 |  |  | 297 |  |  | (1) |  |  | — |  |  | 1,384 |
U.S. government and agency obligations | 1,456 |  |  | — |  |  | — |  |  | — |  |  | 1,456 |
Foreign government bonds and obligations | 241 |  |  | 22 |  |  | (1) |  |  | — |  |  | 262 |
Other securities | 59 |  |  | 2 |  |  | — |  |  | — |  |  | 61 |
Total | $ | 33,601 |  |  | $ | 2,727 |  |  | $ | (34) |  |  | $ | (11) |  |  | $ | 36,283 |
Description of Securities | December 31, 2019
Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
| (in millions)
Corporate debt securities | $ | 10,847 |  |  | $ | 1,344 |  |  | $ | (4) |  |  | $ | 12,187 |
Residential mortgage backed securities | 9,954 |  |  | 94 |  |  | (19) |  |  | 10,029 |
Commercial mortgage backed securities | 5,473 |  |  | 96 |  |  | (6) |  |  | 5,563 |
Asset backed securities | 1,968 |  |  | 42 |  |  | (4) |  |  | 2,006 |
State and municipal obligations | 1,131 |  |  | 238 |  |  | (2) |  |  | 1,367 |
U.S. government and agency obligations | 1,679 |  |  | 1 |  |  | — |  |  | 1,680 |
Foreign government bonds and obligations | 254 |  |  | 19 |  |  | (2) |  |  | 271 |
Other securities | 26 |  |  | — |  |  | — |  |  | 26 |
Total | $ | 31,332 |  |  | $ | 1,834 |  |  | $ | (37) |  |  | $ | 33,129 |
As of December 31, 2020 and 2019, accrued interest of $178 million and $177 million, respectively, is excluded from the amortized cost basis of Available-for-Sale securities in the tables above and is recorded in receivables on the Consolidated Balance Sheets. As of December 31, 2020 and 2019, investment securities with a fair value of $3.6 billion and $2.2 billion, respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $454 million and $576 million, respectively, may be sold, pledged or rehypothecated by the counterparty. As of December 31, 2020 and 2019, fixed maturity securities comprised approximately 88% and 87%, 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. As of December 31, 2020 and 2019, the Company’s internal analysts rated $605 million and $624 million, respectively, of securities using criteria similar to those used by NRSROs. A summary of fixed maturity securities by rating was as follows:
Ratings | December 31, 2020 |  | December 31, 2019
Amortized Cost |  | Fair Value |  | Percent of Total Fair Value | Amortized Cost |  | Fair Value |  | Percent of Total Fair Value
| (in millions, except percentages)
AAA | $ | 19,815 |  |  | $ | 20,253 |  |  | 56 | % |  | $ | 18,256 |  |  | $ | 18,437 |  |  | 56 | %
AA | 1,082 |  |  | 1,312 |  |  | 3 |  |  | 1,113 |  |  | 1,304 |  |  | 4 |
A | 2,953 |  |  | 3,534 |  |  | 10 |  |  | 3,008 |  |  | 3,474 |  |  | 10 |
BBB | 8,271 |  |  | 9,542 |  |  | 26 |  |  | 8,178 |  |  | 9,102 |  |  | 28 |
Below investment grade (1) | 1,480 |  |  | 1,642 |  |  | 5 |  |  | 777 |  |  | 812 |  |  | 2 |
Total fixed maturities | $ | 33,601 |  |  | $ | 36,283 |  |  | 100 | % |  | $ | 31,332 |  |  | $ | 33,129 |  |  | 100 | %
(1) The amortized cost and fair value of below investment grade securities includes interest in CLOs managed by the Company of $3 million, as of December 31, 2020, and $5 million and $6 million, respectively, as of December 31, 2019. These securities are not rated but are included in below investment grade due to their risk characteristics. As of December 31, 2020 and 2019, approximately 33% and 45%, 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 | December 31, 2020
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 |  | 26 |  |  | $ | 228 |  |  | $ | (1) |  |  | 11 |  |  | $ | 19 |  |  | $ | (1) |  |  | 37 |  |  | $ | 247 |  |  | $ | (2) |
Residential mortgage backed securities |  | 72 |  |  | 833 |  |  | (2) |  |  | 71 |  |  | 391 |  |  | (2) |  |  | 143 |  |  | 1,224 |  |  | (4) |
Commercial mortgage backed securities |  | 35 |  |  | 781 |  |  | (11) |  |  | 19 |  |  | 393 |  |  | (10) |  |  | 54 |  |  | 1,174 |  |  | (21) |
Asset backed securities |  | 17 |  |  | 344 |  |  | (3) |  |  | 13 |  |  | 231 |  |  | (2) |  |  | 30 |  |  | 575 |  |  | (5) |
State and municipal obligations |  | 2 |  |  | 4 |  |  | — |  |  | 1 |  |  | 4 |  |  | (1) |  |  | 3 |  |  | 8 |  |  | (1) |
Foreign government bonds and obligations |  | 1 |  |  | 3 |  |  | — |  |  | 7 |  |  | 8 |  |  | (1) |  |  | 8 |  |  | 11 |  |  | (1) |
Total |  | 153 |  |  | $ | 2,193 |  |  | $ | (17) |  |  | 122 |  |  | $ | 1,046 |  |  | $ | (17) |  |  | 275 |  |  | $ | 3,239 |  |  | $ | (34) |
Description of Securities | December 31, 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 |  | 13 |  |  | $ | 66 |  |  | $ | (1) |  |  | 23 |  |  | $ | 173 |  |  | $ | (3) |  |  | 36 |  |  | $ | 239 |  |  | $ | (4) |
Residential mortgage backed securities |  | 150 |  |  | 4,328 |  |  | (10) |  |  | 118 |  |  | 1,164 |  |  | (9) |  |  | 268 |  |  | 5,492 |  |  | (19) |
Commercial mortgage backed securities |  | 52 |  |  | 1,622 |  |  | (3) |  |  | 31 |  |  | 314 |  |  | (3) |  |  | 83 |  |  | 1,936 |  |  | (6) |
Asset backed securities |  | 34 |  |  | 598 |  |  | (3) |  |  | 16 |  |  | 213 |  |  | (1) |  |  | 50 |  |  | 811 |  |  | (4) |
State and municipal obligations |  | 5 |  |  | 23 |  |  | — |  |  | 4 |  |  | 57 |  |  | (2) |  |  | 9 |  |  | 80 |  |  | (2) |
Foreign government bonds and obligations |  | 1 |  |  | — |  |  | — |  |  | 10 |  |  | 15 |  |  | (2) |  |  | 11 |  |  | 15 |  |  | (2) |
Total |  | 255 |  |  | $ | 6,637 |  |  | $ | (17) |  |  | 202 |  |  | $ | 1,936 |  |  | $ | (20) |  |  | 457 |  |  | $ | 8,573 |  |  | $ | (37) |
As part of the Company’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities during the twelve months ended December 31, 2020 is primarily attributable to lower interest rates as well as credit spread tightening. Consistent with the accounting policy described in Note 2, the Company did not recognize any of the total unrealized losses in earnings because it was determined that such losses were due to non-credit factors. The Company does not intend to sell these securities and does not believe that it is more likely than not that the Company will be required to sell these securities before the anticipated recovery of the remaining amortized cost basis. As of December 31, 2020, 92% of the total of Available-for-Sale securities with gross unrealized losses were considered investment grade. The following table presents a rollforward of the allowance for credit losses on Available-for-Sale securities:
| Corporate Debt Securities |  | Asset Backed Securities |  | Total
(in millions)
Balance, January 1, 2020 (1) | $ | — |  |  | $ | — |  |  | $ | — |
Additions for which credit losses were not previously recorded | 13 |  |  | 1 |  |  | 14 |
Additional increases (decreases) on securities that had an allowance recorded in a previous period | (3) |  |  | — |  |  | (3) |
Balance, December 31, 2020 | $ | 10 |  |  | $ | 1 |  |  | $ | 11 |
(1) Prior to January 1, 2020, credit losses on Available-for-Sale securities were not recorded in an allowance but were recorded as a reduction of the book value of the security if the security was other-than-temporarily impaired. There is no adoption impact due to the prospective transition for Available-for-Sale securities. Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in earnings were as follows:
| Years Ended December 31,
2020 |  | 2019 |  | 2018
(in millions)
Gross realized investment gains | $ | 25 |  |  | $ | 30 |  |  | $ | 18 |
Gross realized investment losses | (3) |  |  | (14) |  |  | (9) |
Credit losses | (11) |  |  | (22) |  |  | — |
Total | $ | 11 |  |  | $ | (6) |  |  | $ | 9 |
Credit losses for the year ended December 31, 2020 primarily related to credit losses on corporate debt securities, primarily in the oil and gas industry. Other-than-temporary impairments for the year ended December 31, 2019 primarily related to corporate debt securities and investments held by AAH. The Company recognized an impairment of $5 million in the first quarter of 2019 on investments held by AAH as the Company no longer intended to hold the securities until the recovery of fair value to book value. See Note 21 for a rollforward of net unrealized investment gains (losses) included in AOCI. Available-for-Sale securities by contractual maturity as of December 31, 2020 were as follows:
| Amortized Cost |  | Fair Value
(in millions)
Due within one year | $ | 2,569 |  |  | $ | 2,584 |
Due after one year through five years | 4,717 |  |  | 5,057 |
Due after five years through 10 years | 2,908 |  |  | 3,213 |
Due after 10 years | 4,412 |  |  | 5,983 |
| 14,606 |  |  | 16,837 |
Residential mortgage backed securities | 9,845 |  |  | 10,029 |
Commercial mortgage backed securities | 5,867 |  |  | 6,088 |
Asset backed securities | 3,283 |  |  | 3,329 |
Total | $ | 33,601 |  |  | $ | 36,283 |
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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