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Investments

9 Months Ended

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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- Definition

The entire disclosure for investment.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/320/tableOfContent

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Accounting Standards Codification
-Topic 321
-Publisher FASB
-URI https://asc.fasb.org/321/tableOfContent

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Accounting Standards Codification
-Topic 325
-Publisher FASB
-URI https://asc.fasb.org/325/tableOfContent

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