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Investments | 9 Months Ended
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Sep. 30, 2024
Investments [Abstract] |
Investments | Investments The following is a summary of Ameriprise Financial investments:
| September 30, 2024 |  | December 31, 2023
(in millions)
Available-for-Sale securities, at fair value | $ | 52,417 |  |  | $ | 51,562 |
Mortgage loans (allowance for credit losses: 2024, $14; 2023, $14) | 2,297 |  |  | 2,118 |
Policy loans | 966 |  |  | 912 |
Other investments (allowance for credit losses: 2024, $6; 2023, $6) | 1,023 |  |  | 897 |
Total | $ | 56,703 |  |  | $ | 55,489 |
Other investments primarily reflect the Company’s interests in affordable housing partnerships, trading securities, equity securities, seed money investments in proprietary funds, 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,
| 2024 |  | 2023 | 2024 |  | 2023
| (in millions)
Investment income on fixed maturities | $ | 769 |  |  | $ | 693 |  |  | $ | 2,291 |  |  | $ | 1,909 |
Net realized gains (losses) | — |  |  | (37) |  |  | (3) |  |  | (27) |
Consolidated investment entities | 52 |  |  | 46 |  |  | 150 |  |  | 133 |
Other (1) | 113 |  |  | 107 |  |  | 318 |  |  | 303 |
Total | $ | 934 |  |  | $ | 809 |  |  | $ | 2,756 |  |  | $ | 2,318 |
(1) Prior period amount associated with affordable housing partnerships has been reclassified to Other to conform to current year presentation. Available-for-Sale securities distributed by type were as follows:
| September 30, 2024
Description of Securities | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for Credit Losses |  | Fair Value
|  | (in millions)
Corporate debt securities |  | $ | 14,059 |  |  | $ | 518 |  |  | $ | (396) |  |  | $ | — |  |  | $ | 14,181 |
Residential mortgage backed securities |  | 23,598 |  |  | 221 |  |  | (810) |  |  | — |  |  | 23,009 |
Commercial mortgage backed securities |  | 5,459 |  |  | 20 |  |  | (192) |  |  | (4) |  |  | 5,283 |
Asset backed securities |  | 6,548 |  |  | 42 |  |  | (32) |  |  | — |  |  | 6,558 |
State and municipal obligations |  | 646 |  |  | 56 |  |  | (14) |  |  | (1) |  |  | 687 |
U.S. government and agency obligations |  | 2,683 |  |  | 3 |  |  | — |  |  | — |  |  | 2,686 |
Foreign government bonds and obligations |  | 13 |  |  | — |  |  | — |  |  | — |  |  | 13 |
Total |  | $ | 53,006 |  |  | $ | 860 |  |  | $ | (1,444) |  |  | $ | (5) |  |  | $ | 52,417 |
Description of Securities | December 31, 2023
Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for Credit Losses |  | Fair Value
|  | (in millions)
Corporate debt securities |  | $ | 12,675 |  |  | $ | 409 |  |  | $ | (507) |  |  | $ | (1) |  |  | $ | 12,576 |
Residential mortgage backed securities |  | 22,130 |  |  | 107 |  |  | (1,171) |  |  | — |  |  | 21,066 |
Commercial mortgage backed securities |  | 6,380 |  |  | 11 |  |  | (341) |  |  | — |  |  | 6,050 |
Asset backed securities |  | 8,353 |  |  | 25 |  |  | (59) |  |  | — |  |  | 8,319 |
State and municipal obligations |  | 719 |  |  | 62 |  |  | (20) |  |  | (1) |  |  | 760 |
U.S. government and agency obligations |  | 2,739 |  |  | 1 |  |  | — |  |  | — |  |  | 2,740 |
Foreign government bonds and obligations |  | 19 |  |  | — |  |  | (1) |  |  | — |  |  | 18 |
Other securities |  | 33 |  |  | — |  |  | — |  |  | — |  |  | 33 |
Total |  | $ | 53,048 |  |  | $ | 615 |  |  | $ | (2,099) |  |  | $ | (2) |  |  | $ | 51,562 |
As of September 30, 2024 and December 31, 2023, accrued interest of $338 million and $319 million, respectively, is excluded from the amortized cost basis of Available-for-Sale securities in the tables above and is recorded in Receivables. As of September 30, 2024 and December 31, 2023, fixed maturity securities comprised approximately 92% and 93%, 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 September 30, 2024 and December 31, 2023, the Company’s internal analysts rated $440 million and $282 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, 2024 |  | December 31, 2023
Amortized Cost |  | Fair Value |  | Percent of Total Fair Value | Amortized Cost |  | Fair Value |  | Percent of Total Fair Value
| (in millions, except percentages)
AAA | $ | 25,149 |  |  | $ | 24,746 |  |  | 47 | % |  | $ | 25,235 |  |  | $ | 24,342 |  |  | 47 | %
AA | 13,043 |  |  | 12,755 |  |  | 24 |  |  | 14,013 |  |  | 13,534 |  |  | 26 |
A | 3,114 |  |  | 3,219 |  |  | 6 |  |  | 3,073 |  |  | 3,139 |  |  | 6 |
BBB | 11,423 |  |  | 11,415 |  |  | 22 |  |  | 10,396 |  |  | 10,216 |  |  | 20 |
Below investment grade (1) | 277 |  |  | 282 |  |  | 1 |  |  | 331 |  |  | 331 |  |  | 1 |
Total fixed maturities | $ | 53,006 |  |  | $ | 52,417 |  |  | 100 | % |  | $ | 53,048 |  |  | $ | 51,562 |  |  | 100 | %
(1) The amortized cost and fair value of below investment grade securities includes interest in non-consolidated CLOs managed by the Company of $1 million as of both September 30, 2024 and December 31, 2023. These securities are not rated but are included in below investment grade due to their risk characteristics. As of September 30, 2024 and December 31, 2023, approximately 85% and 83% of securities rated AA were GNMA, FNMA and FHLMC mortgage backed securities, respectively. No holdings of any issuer were greater than 10% of the Company’s total equity as of both September 30, 2024 and December 31, 2023. The following tables summarize the fair value and gross unrealized losses on Available-for-Sale securities, aggregated by major investment type and the length of time that individual securities have been in a continuous unrealized loss position for which no allowance for credit losses has been recorded:
Description of Securities |  | September 30, 2024
| 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 |  | 67 |  |  | $ | 678 |  |  | $ | (9) |  |  | 314 |  |  | $ | 4,666 |  |  | $ | (387) |  |  | 381 |  |  | $ | 5,344 |  |  | $ | (396) |
Residential mortgage backed securities |  | 19 |  |  | 597 |  |  | (3) |  |  | 676 |  |  | 9,955 |  |  | (807) |  |  | 695 |  |  | 10,552 |  |  | (810) |
Commercial mortgage backed securities |  | 8 |  |  | 196 |  |  | (1) |  |  | 243 |  |  | 3,507 |  |  | (191) |  |  | 251 |  |  | 3,703 |  |  | (192) |
Asset backed securities |  | 5 |  |  | 56 |  |  | — |  |  | 41 |  |  | 415 |  |  | (32) |  |  | 46 |  |  | 471 |  |  | (32) |
State and municipal obligations |  | 5 |  |  | 6 |  |  | (1) |  |  | 46 |  |  | 137 |  |  | (13) |  |  | 51 |  |  | 143 |  |  | (14) |
U.S. government and agency obligations |  | 1 |  |  | 58 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 58 |  |  | — |
Foreign government bonds and obligations |  | — |  |  | — |  |  | — |  |  | 3 |  |  | 13 |  |  | — |  |  | 3 |  |  | 13 |  |  | — |
Total |  | 105 |  |  | $ | 1,591 |  |  | $ | (14) |  |  | 1,323 |  |  | $ | 18,693 |  |  | $ | (1,430) |  |  | 1,428 |  |  | $ | 20,284 |  |  | $ | (1,444) |
Description of Securities | December 31, 2023
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 |  | 97 |  |  | $ | 1,276 |  |  | $ | (11) |  |  | 376 |  |  | $ | 5,197 |  |  | $ | (496) |  |  | 473 |  |  | $ | 6,473 |  |  | $ | (507) |
Residential mortgage backed securities |  | 82 |  |  | 3,052 |  |  | (25) |  |  | 734 |  |  | 10,677 |  |  | (1,146) |  |  | 816 |  |  | 13,729 |  |  | (1,171) |
Commercial mortgage backed securities |  | 31 |  |  | 747 |  |  | (9) |  |  | 277 |  |  | 4,092 |  |  | (332) |  |  | 308 |  |  | 4,839 |  |  | (341) |
Asset backed securities |  | 49 |  |  | 885 |  |  | (2) |  |  | 116 |  |  | 2,840 |  |  | (57) |  |  | 165 |  |  | 3,725 |  |  | (59) |
State and municipal obligations |  | 5 |  |  | 29 |  |  | (1) |  |  | 49 |  |  | 138 |  |  | (19) |  |  | 54 |  |  | 167 |  |  | (20) |
U.S. government and agency obligations |  | 11 |  |  | 955 |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 12 |  |  | 955 |  |  | — |
Foreign government bonds and obligations |  | — |  |  | — |  |  | — |  |  | 3 |  |  | 12 |  |  | (1) |  |  | 3 |  |  | 12 |  |  | (1) |
Total |  | 275 |  |  | $ | 6,944 |  |  | $ | (48) |  |  | 1,556 |  |  | $ | 22,956 |  |  | $ | (2,051) |  |  | 1,831 |  |  | $ | 29,900 |  |  | $ | (2,099) |
As part of the Company’s ongoing monitoring process, management determined that the decrease in total gross unrealized losses on its Available-for-Sale securities for which an allowance for credit losses has not been recognized during the nine months ended September 30, 2024 is primarily attributable to the impact of lower interest rates. As of September 30, 2024, the Company did not recognize these unrealized losses in earnings because it was determined that such losses were due to non-credit factors. The Company does not intend to sell these securities and does not believe that it is more likely than not that the Company will be required to sell these securities before the anticipated recovery of the remaining amortized cost basis. As of both September 30, 2024 and December 31, 2023, approximately 96% of the total of Available-for-Sale securities with gross unrealized losses were considered investment grade. The following table presents rollforwards of the allowance for credit losses on Available-for-Sale securities:
| Corporate Debt Securities |  |  |  | Commercial Mortgage Backed Securities | State and Municipal Obligations |  | Total
(in millions)
Balance at July 1, 2024 | $ | — |  |  |  |  | $ | 4 |  | $ | 1 |  |  | $ | 5 |
Balance at September 30, 2024 | $ | — |  |  |  |  | $ | 4 |  | $ | 1 |  |  | $ | 5 |
Balance at July 1, 2023 | $ | 7 |  |  |  |  | $ | — |  | $ | 2 |  |  | $ | 9 |
Reductions for securities sold during the period (realized) | (7) |  |  |  |  | — |  | (1) |  |  | (8) |
Balance at September 30, 2023 | $ | — |  |  |  |  | $ | — |  | $ | 1 |  |  | $ | 1 |
Balance at January 1, 2024 | $ | 1 |  |  |  |  | $ | — |  | $ | 1 |  |  | $ | 2 |
Additions for which credit losses were not previously recorded | — |  |  |  |  | 4 |  | — |  |  | 4 |
Reductions for securities sold during the period (realized) | (1) |  |  |  |  | — |  | — |  |  | (1) |
Balance at September 30, 2024 | $ | — |  |  |  |  | $ | 4 |  | $ | 1 |  |  | $ | 5 |
Balance at January 1, 2023 | $ | 20 |  |  |  |  | $ | — |  | $ | 2 |  |  | $ | 22 |
Reductions for securities sold during the period (realized) | (20) |  |  |  |  | — |  | (1) |  |  | (21) |
Balance at September 30, 2023 | $ | — |  |  |  |  | $ | — |  | $ | 1 |  |  | $ | 1 |
Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in Net investment income were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
2024 |  | 2023 | 2024 |  | 2023
(in millions)
Gross realized investment gains | $ | 31 |  |  | $ | — |  |  | $ | 35 |  |  | $ | 10 |
Gross realized investment losses | (33) |  |  | (46) |  |  | (36) |  |  | (58) |
Credit reversals (losses) | — |  |  | 8 |  |  | (3) |  |  | 21 |
Other impairments | — |  |  | — |  |  | — |  |  | (2) |
Total | $ | (2) |  |  | $ | (38) |  |  | $ | (4) |  |  | $ | (29) |
Credit losses for the nine months ended September 30, 2024 primarily related to recording an allowance for credit losses on a commercial mortgage backed security with a recent downgrade. Previously recorded allowance for credit losses was reversed during the three and nine months ended September 30, 2023 primarily due to the sale of a corporate debt security in the communications industry. See Note 15 for a rollforward of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss) (“AOCI”). Available-for-Sale securities by contractual maturity as of September 30, 2024 were as follows:
| Amortized Cost |  | Fair Value
| (in millions)
Due within one year | $ | 4,125 |  | $ | 4,127
Due after one year through five years | 2,277 |  | 2,265
Due after five years through 10 years | 5,200 |  | 5,099
Due after 10 years | 5,799 |  | 6,076
| 17,401 |  | 17,567
Residential mortgage backed securities | 23,598 |  | 23,009
Commercial mortgage backed securities | 5,459 |  | 5,283
Asset backed securities | 6,548 |  | 6,558
Total | $ | 53,006 |  | $ | 52,417
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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