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Financing Receivables | 12 Months Ended
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Dec. 31, 2022
Receivables [Abstract] |
Financing Receivables | Financing Receivables Financing receivables are comprised of commercial loans, consumer loans and deposit receivables. See Note 2 for information regarding the Company’s accounting policies related to financing receivables and the allowance for credit losses. Allowance for Credit Losses The following table presents a rollforward of the allowance for credit losses:
| Commercial Loans |  | Consumer Loans |  | Total
(in millions)
Balance at December 31, 2019 (1) | $ | 51 |  |  | $ | — |  |  | $ | 51 |
Cumulative effect of adoption of current expected credit losses guidance | 2 |  |  | 3 |  |  | 5 |
Balance at January 1, 2020 | 53 |  |  | 3 |  |  | 56 |
Provisions | 19 |  |  | 2 |  |  | 21 |
Charge-offs | (6) |  |  | (3) |  |  | (9) |
Balance at December 31, 2020 | 66 |  |  | 2 |  |  | 68 |
Provisions | (13) |  |  | 2 |  |  | (11) |
Charge-offs | (8) |  |  | (2) |  |  | (10) |
Recoveries | — |  |  | 1 |  |  | 1 |
Other | 2 |  |  | — |  |  | 2 |
Balance at December 31, 2021 | 47 |  |  | 3 |  |  | 50 |
Provisions | 10 |  |  | 3 |  |  | 13 |
Charge-offs | (3) |  |  | (1) |  |  | (4) |
Balance at December 31, 2022 | $ | 54 |  |  | $ | 5 |  |  | $ | 59 |
(1) Prior to January 1, 2020, the allowance for credit losses was based on an incurred loss model that did not require estimating expected credit losses over the expected life of the asset. The decrease in the allowance for credit losses provision for commercial loans in 2021 reflected the sale of certain commercial mortgage loans and syndicated loans in conjunction with the fixed deferred and immediate annuity reinsurance transaction in 2021. As of December 31, 2022 and 2021, accrued interest on commercial loans was $17 million and $13 million, respectively, and is recorded in Receivables and excluded from the amortized cost basis of commercial loans. Purchases and Sales There were no commercial mortgage loans sold for the years ended December 31, 2022 and 2020. During the year ended December 31, 2021, the Company sold $746 million of commercial mortgage loans. During the years ended December 31, 2022, 2021 and 2020, the Company purchased $67 million, $37 million and $173 million, respectively, of syndicated loans, and sold $1 million, $354 million and $17 million, respectively, of syndicated loans. During the years ended December 31, 2022, 2021 and 2020, the Company purchased $72 million, $33 million and $22 million, respectively, of residential mortgage loans, and sold nil, $1 million and nil, respectively, of residential mortgage loans. The allowance for credit losses for residential mortgage loans was not material as of both December 31, 2022 and 2021. The Company has not acquired any loans with deteriorated credit quality as of the acquisition date. Credit Quality Information Nonperforming loans were $11 million and $9 million as of December 31, 2022 and 2021, respectively. All other loans were considered to be performing. Commercial Loans Commercial Mortgage Loans The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Loan-to-value ratio is the primary credit quality indicator included in this review. Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates when credit risk changes. Commercial mortgage loans which management has assigned its highest risk rating were less than 1% of total commercial mortgage loans as of both December 31, 2022 and 2021. 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. There were no commercial mortgage loans past due as of both December 31, 2022 and 2021. The tables below present the amortized cost basis of commercial mortgage loans by the year of origination and loan-to-value ratio:
|  | December 31, 2022
Loan-to-Value Ratio |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior |  | Total
| (in millions)
> 100% |  | $ | — |  |  | $ | — |  |  | $ | 2 |  |  | $ | 2 |  |  | $ | 3 |  |  | $ | 39 |  |  | $ | 46 |
80% - 100% |  | 7 |  |  | 9 |  |  | 2 |  |  | 20 |  |  | 8 |  |  | 29 |  |  | 75 |
60% - 80% |  | 39 |  |  | 87 |  |  | 17 |  |  | 52 |  |  | 9 |  |  | 107 |  |  | 311 |
40% - 60% |  | 48 |  |  | 89 |  |  | 69 |  |  | 90 |  |  | 57 |  |  | 435 |  |  | 788 |
< 40% |  | 18 |  |  | 12 |  |  | 30 |  |  | 46 |  |  | 85 |  |  | 471 |  |  | 662 |
Total |  | $ | 112 |  |  | $ | 197 |  |  | $ | 120 |  |  | $ | 210 |  |  | $ | 162 |  |  | $ | 1,081 |  |  | $ | 1,882 |
|  | December 31, 2021
Loan-to-Value Ratio |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior |  | Total
| (in millions)
> 100% |  | $ | — |  |  | $ | — |  |  | $ | 20 |  |  | $ | 10 |  |  | $ | — |  |  | $ | 29 |  |  | $ | 59 |
80% - 100% |  | 9 |  |  | 2 |  |  | 9 |  |  | 2 |  |  | — |  |  | 29 |  |  | 51 |
60% - 80% |  | 142 |  |  | 80 |  |  | 60 |  |  | 23 |  |  | 61 |  |  | 138 |  |  | 504 |
40% - 60% |  | 42 |  |  | 33 |  |  | 86 |  |  | 74 |  |  | 57 |  |  | 401 |  |  | 693 |
< 40% |  | 11 |  |  | 8 |  |  | 48 |  |  | 6 |  |  | 58 |  |  | 478 |  |  | 609 |
Total |  | $ | 204 |  |  | $ | 123 |  |  | $ | 223 |  |  | $ | 115 |  |  | $ | 176 |  |  | $ | 1,075 |  |  | $ | 1,916 |
Loan-to-value ratio is based on income and expense data provided by borrowers at least annually and long-term capitalization rate assumptions based on property type. In addition, the Company reviews the concentrations of credit risk by region and property type. Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows:
| Loans |  | Percentage
December 31, | December 31,
2022 |  | 2021 | 2022 |  | 2021
(in millions) |  |  |
East North Central | $ | 201 |  |  | $ | 194 |  |  | 11 | % |  | 10 | %
East South Central | 54 |  |  | 57 |  |  | 3 |  |  | 3 |
Middle Atlantic | 114 |  |  | 122 |  |  | 6 |  |  | 6 |
Mountain | 129 |  |  | 119 |  |  | 7 |  |  | 6 |
New England | 23 |  |  | 28 |  |  | 1 |  |  | 2 |
Pacific | 638 |  |  | 627 |  |  | 34 |  |  | 33 |
South Atlantic | 479 |  |  | 497 |  |  | 25 |  |  | 26 |
West North Central | 120 |  |  | 141 |  |  | 6 |  |  | 7 |
West South Central | 124 |  |  | 131 |  |  | 7 |  |  | 7 |
| 1,882 |  |  | 1,916 |  |  | 100 | % |  | 100 | %
Less: allowance for credit losses | 11 |  |  | 12 |  |  |
Total | $ | 1,871 |  |  | $ | 1,904 |
Concentrations of credit risk of commercial mortgage loans by property type were as follows:
| Loans |  | Percentage
December 31, |  | December 31,
2022 |  | 2021 |  | 2022 |  | 2021
(in millions) |  |  |  |
Apartments | $ | 495 |  |  | $ | 496 |  |  | 26 | % |  | 26 | %
Hotel | 14 |  |  | 14 |  |  | 1 |  |  | 1 |
Industrial | 321 |  |  | 319 |  |  | 17 |  |  | 17 |
Mixed use | 66 |  |  | 68 |  |  | 4 |  |  | 3 |
Office | 259 |  |  | 271 |  |  | 14 |  |  | 14 |
Retail | 594 |  |  | 617 |  |  | 31 |  |  | 32 |
Other | 133 |  |  | 131 |  |  | 7 |  |  | 7 |
| 1,882 |  |  | 1,916 |  |  | 100 | % |  | 100 | %
Less: allowance for credit losses | 11 |  |  | 12 |  |  |
Total | $ | 1,871 |  |  | $ | 1,904 |
Syndicated Loans The recorded investment in syndicated loans as of December 31, 2022 and 2021 was $175 million and $149 million, respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. There were no syndicated loans past due as of both December 31, 2022 and 2021. The Company assigns an internal risk rating to each syndicated loan in its portfolio ranging from 1 through 5, with 5 reflecting the lowest quality. The tables below present the amortized cost basis of syndicated loans by origination year and internal risk rating:
|  | December 31, 2022
Internal Risk Rating |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior |  | Total
| (in millions)
Risk 5 |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |
Risk 4 |  | — |  |  | — |  |  | — |  |  | 2 |  |  | — |  |  | 2 |  |  | 4 |
Risk 3 |  | — |  |  | 9 |  |  | 1 |  |  | 6 |  |  | 5 |  |  | 8 |  |  | 29 |
Risk 2 |  | 8 |  |  | 21 |  |  | 7 |  |  | 12 |  |  | 5 |  |  | 28 |  |  | 81 |
Risk 1 |  | 6 |  |  | 9 |  |  | 4 |  |  | 6 |  |  | 13 |  |  | 22 |  |  | 60 |
Total |  | $ | 15 |  |  | $ | 39 |  |  | $ | 12 |  |  | $ | 26 |  |  | $ | 23 |  |  | $ | 60 |  |  | $ | 175 |
|  | December 31, 2021
Internal Risk Rating |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior |  | Total
| (in millions)
Risk 5 |  | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |
Risk 4 |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 2 |  |  | 3 |
Risk 3 |  | — |  |  | — |  |  | 4 |  |  | 5 |  |  | 5 |  |  | 6 |  |  | 20 |
Risk 2 |  | 15 |  |  | 4 |  |  | 12 |  |  | 10 |  |  | 18 |  |  | 12 |  |  | 71 |
Risk 1 |  | 8 |  |  | 3 |  |  | 3 |  |  | 11 |  |  | 16 |  |  | 13 |  |  | 54 |
Total |  | $ | 23 |  |  | $ | 7 |  |  | $ | 20 |  |  | $ | 26 |  |  | $ | 40 |  |  | $ | 33 |  |  | $ | 149 |
Financial Advisor Loans The Company offers loans to financial advisors for transitional cost assistance and practice operations. Repayment of the loan is highly dependent on the retention of the financial advisor. In the event a financial advisor is no longer affiliated with the Company, any unpaid balances become immediately due. Accordingly, the primary risk factor for advisor loans is termination status. The allowance for credit losses related to loans to advisors that have terminated their relationship with the Company was $6 million and $5 million as of December 31, 2022 and 2021, respectively. The tables below present the amortized cost basis of advisor loans by origination year and termination status:
|  | December 31, 2022
Termination Status |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior |  | Total
| (in millions)
Active |  | $ | 359 |  |  | $ | 178 |  |  | $ | 133 |  |  | $ | 99 |  |  | $ | 76 |  |  | $ | 158 |  |  | $ | 1,003 |
Terminated |  | — |  |  | 1 |  |  | 1 |  |  | 2 |  |  | 1 |  |  | 5 |  |  | 10 |
Total |  | $ | 359 |  |  | $ | 179 |  |  | $ | 134 |  |  | $ | 101 |  |  | $ | 77 |  |  | $ | 163 |  |  | $ | 1,013 |
|  | December 31, 2021
Termination Status |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior |  | Total
| (in millions)
Active |  | $ | 231 |  |  | $ | 184 |  |  | $ | 120 |  |  | $ | 89 |  |  | $ | 116 |  |  | $ | 113 |  |  | $ | 853 |
Terminated |  | 1 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 6 |  |  | 8 |
Total |  | $ | 232 |  |  | $ | 185 |  |  | $ | 120 |  |  | $ | 89 |  |  | $ | 116 |  |  | $ | 119 |  |  | $ | 861 |
Consumer Loans Credit Card Receivables The credit cards are co-branded with Ameriprise Financial, Inc. and issued to the Company’s customers by a third party. FICO scores and delinquency rates are the primary credit quality indicators for the credit card portfolio. Delinquency rates are measured based on the number of days past due. Credit card receivables over 30 days past due were 1% of total credit card receivables as of both December 31, 2022 and 2021. The table below presents the amortized cost basis of credit card receivables by FICO score:
| December 31,
2022 |  | 2021
(in millions)
> 800 | $ | 32 |  |  | $ | 30 |
750 - 799 | 27 |  |  | 24 |
700 - 749 | 28 |  |  | 25 |
650 - 699 | 17 |  |  | 14 |
< 650 | 6 |  |  | 5 |
Total | $ | 110 |  |  | $ | 98 |
Policy Loans Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, there is no allowance for credit losses. Margin Loans The margin loans balance was $1.2 billion as of both December 31, 2022 and 2021. The Company monitors collateral supporting margin loans and requests additional collateral when necessary in order to mitigate the risk of loss. As of both December 31, 2022 and 2021, there was no allowance for credit losses on margin loans. Pledged Asset Lines of Credit The pledged asset lines of credit balance was $589 million and $467 million as of December 31, 2022 and 2021, respectively. The Company monitors collateral supporting pledged asset lines of credit and requests additional collateral when necessary in order to mitigate the risk of loss. As of both December 31, 2022 and 2021, there was no allowance for credit losses on pledged asset lines of credit. Deposit Receivables Deposit receivables were $7.4 billion and $7.9 billion as of December 31, 2022 and 2021, respectively. Deposit receivables are collateralized by the fair value of the assets held in trusts. Based on management’s evaluation of the collateral value relative to the deposit receivables, the allowance for credit losses for deposit receivables was not material as of both December 31, 2022 and 2021. Troubled Debt Restructurings There were no loans accounted for as a troubled debt restructuring by the Company during the years ended December 31, 2022, 2021 and 2020. There are no commitments to lend additional funds to borrowers whose loans have been restructured.

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