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Investments

12 Months Ended

Dec. 31, 2024

Investments [Abstract]

Investments

Investments

The following is a summary of Ameriprise Financial investments:

			December 31,
			2024						2023
			(in millions)
Available-for-Sale securities, at fair value			$	52,153					$	51,562
Mortgage loans (allowance for credit losses: 2024, $14; 2023, $14)			2,354						2,118
Policy loans			982						912
Other investments (allowance for credit losses: 2024, $6; 2023, $6)			934						897
Total			$	56,423					$	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:

			Years Ended December 31,
			2024						2023						2022(1)
			(in millions)
Investment income on fixed maturities			$	3,039					$	2,637					$	1,320
Net realized gains (losses)			(18)						(27)						(87)
Consolidated investment entities			207						181						102
Other			420						415						139
Total			$	3,648					$	3,206					$	1,474

(1) Prior period amounts associated with affordable housing partnerships have been reclassified to Other to conform to current year presentation.

Available-for-Sale securities distributed by type were as follows:

						December 31, 2024
Description of Securities						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Allowance for Credit Losses						Fair Value
						(in millions)
Corporate debt securities						$	14,509					$	201					$	(711)					$	—					$	13,999
Residential mortgage backed securities						24,396						81						(1,133)						—						23,344
Commercial mortgage backed securities						5,339						10						(219)						(4)						5,126
Asset backed securities						6,451						30						(39)						—						6,442
State and municipal obligations						629						29						(19)						(1)						638
U.S. government and agency obligations						2,589						2						—						—						2,591
Foreign government bonds and obligations						13						—						—						—						13
Total						$	53,926					$	353					$	(2,121)					$	(5)					$	52,153

						December 31, 2023
Description of Securities						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 December 31, 2024 and 2023, accrued interest of $326 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 December 31, 2024 and 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 December 31, 2024 and 2023, the Company’s internal analysts rated $508 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:

						December 31, 2024																		December 31, 2023
Ratings						Amortized Cost						Fair Value						Percent of Total Fair Value						Amortized Cost						Fair Value						Percent of Total Fair Value
						(in millions, except percentages)
AAA						$	25,251					$	24,614					47		%				$	25,235					$	24,342					47		%
AA						13,498						12,909						25						14,013						13,534						26
A						2,979						2,935						5						3,073						3,139						6
BBB						11,896						11,402						22						10,396						10,216						20
Below investment grade						302						293						1						331						331						1
Total fixed maturities						$	53,926					$	52,153					100		%				$	53,048					$	51,562					100		%

As of December 31, 2024 and 2023, approximately 82% and 83% of securities rated AA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any issuer were greater than 10% of the Company’s total equity as of both December 31, 2024 and 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:

						December 31, 2024
						Less than 12 months																		12 months or more																		Total
Description of Securities						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						282						$	5,328					$	(178)					291						$	4,042					$	(533)					573						$	9,370					$	(711)
Residential mortgage backed securities						203						6,728						(96)						659						9,122						(1,037)						862						15,850						(1,133)
Commercial mortgage backed securities						24						478						(6)						233						3,298						(213)						257						3,776						(219)
Asset backed securities						15						309						(2)						37						384						(37)						52						693						(39)
State and municipal obligations						21						57						(2)						45						133						(17)						66						190						(19)
U.S. government and agency obligations						1						100						—						—						—						—						1						100						—
Foreign government bonds and obligations						—						—						—						3						12						—						3						12						—
Total						546						$	13,000					$	(284)					1,268						$	16,991					$	(1,837)					1,814						$	29,991					$	(2,121)

						December 31, 2023
						Less than 12 months																		12 months or more																		Total
Description of Securities						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 increase in gross unrealized loss on its Available-for-Sale securities for which an allowance for credit losses has not been recognized during the year ended December 31, 2024 is primarily attributable to higher interest rates. 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 December 31, 2024 and 2023, approximately 97% and 96%, respectively, 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						Commercial Mortgage Backed Securities												State and Municipal Obligations						Total
			(in millions)
Balance at January 1, 2022			$	—					$	—											$	1					$	1
Additions for which credit losses were not previously recorded			20						—												—						20
Additional increases (decreases) on securities that had an allowance recorded in a previous period			—						—												1						1
Balance at December 31, 2022			20						—												2						22
Additions for which credit losses were not previously recorded			1						—												—						1
Reductions for securities sold during the period (realized)			(20)						—												(1)						(21)
Balance at December 31, 2023			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 December 31, 2024			$	—					$	4											$	1					$	5

Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in Net investment income were as follows:

			Years Ended December 31,
			2024						2023						2022
			(in millions)
Gross realized investment gains			$	41					$	11					$	28
Gross realized investment losses			(57)						(58)						(22)
Credit reversals (losses)			(3)						20						(21)
Other impairments			—						(2)						(70)
Total			$	(19)					$	(29)					$	(85)

Credit losses recorded during the year ended December 31, 2022 and subsequently reversed due to sale of the security during the year ended December 31, 2023 relate to a corporate debt security in the communications industry. Other impairments for the years ended December 31, 2023 and 2022 related to Available-for-Sale securities which the Company intended to sell.

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, 2024 were as follows:

			Amortized Cost						Fair Value
			(in millions)
Due within one year			$	3,537					$	3,536
Due after one year through five years			2,423						2,361
Due after five years through 10 years			5,507						5,216
Due after 10 years			6,273						6,128
			17,740						17,241
Residential mortgage backed securities			24,396						23,344
Commercial mortgage backed securities			5,339						5,126
Asset backed securities			6,451						6,442
Total			$	53,926					$	52,153

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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