XML 30 R20.htm IDEA: XBRL DOCUMENT v3.25.3
Fair Values of Assets and Liabilities
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Values of Assets and Liabilities Fair Values of Assets and Liabilities
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability is not exchanged subject to a forced liquidation or distressed sale.
Valuation Hierarchy
The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety.
The three levels of the fair value hierarchy are defined as follows:
Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date.
Level 2 Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities.
Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.
The following tables present the balances of assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis (See Note 4 for the balances of assets and liabilities for consolidated investment entities): 
 September 30, 2025 
Level 1Level 2Level 3Total
(in millions)
Assets
Cash equivalents$2,571 $3,184 $— $5,755  
Available-for-Sale securities:
Corporate debt securities— 14,561 731 15,292  
Residential mortgage backed securities— 26,732 — 26,732  
Commercial mortgage backed securities— 3,790 — 3,790  
Asset backed securities— 4,242 68 4,310  
State and municipal obligations— 658 — 658  
U.S. government and agency obligations1,148 637 — 1,785  
Foreign government bonds and obligations— 7 — 7  
Total Available-for-Sale securities1,148 50,627 799 52,574  
Investments at net asset value (“NAV”)12 (1)
Trading and other securities366 19 — 385 
Separate account assets at NAV80,679 (1)
Investments and cash equivalents segregated for regulatory purposes439 — — 439 
Market risk benefits— — 2,225 2,225 (2)
Receivables:
Fixed deferred indexed annuity ceded embedded derivatives— — 59 59 
Other assets:
Interest rate derivative contracts— 158 — 158  
Equity derivative contracts280 12,252 — 12,532  
Credit derivative contracts— 1 — 1 
Foreign exchange derivative contracts— 23 — 23  
Total other assets 280 12,434 — 12,714  
Total assets at fair value$4,804 $66,264 $3,083 $154,842  
Liabilities
Policyholder account balances, future policy benefits and claims:
Fixed deferred indexed annuity embedded derivatives$— $— $58 $58  
IUL embedded derivatives— — 1,063 1,063  
Structured variable annuity embedded derivatives— — 3,735 3,735 
Total policyholder account balances, future policy benefits and claims— — 4,856 4,856 (3)
Market risk benefits— — 1,229 1,229 (2)
Customer deposits— 6 — 6  
Other liabilities:
Interest rate derivative contracts1 221 — 222  
Equity derivative contracts361 7,542 — 7,903  
Credit derivative contracts— 25 — 25 
Foreign exchange derivative contracts1 3 — 4 
Other362 5 64 431  
Total other liabilities725 7,796 64 8,585  
Total liabilities at fair value$725 $7,802 $6,149 $14,676  
 December 31, 2024
 
Level 1Level 2Level 3Total
(in millions)
Assets
Cash equivalents$2,526 $2,504 $— $5,030  
Available-for-Sale securities:
Corporate debt securities— 13,416 583 13,999  
Residential mortgage backed securities— 23,306 38 23,344  
Commercial mortgage backed securities— 5,126 — 5,126  
Asset backed securities— 6,316 126 6,442  
State and municipal obligations— 638 — 638  
U.S. government and agency obligations2,591 — — 2,591  
Foreign government bonds and obligations— 13 — 13  
Total Available-for-Sale securities2,591 48,815 747 52,153  
Investments at NAV12 (1)
Trading and other securities321 25 — 346  
Separate account assets at NAV78,114 (1)
Investments and cash equivalents segregated for regulatory purposes557 — — 557 
Market risk benefits— — 2,182 2,182 (2)
Receivables:
Fixed deferred indexed annuity ceded embedded derivatives— — 55 55 
Other assets:
Interest rate derivative contracts— 180 — 180  
Equity derivative contracts114 8,843 — 8,957  
Credit derivative contracts— 59 — 59 
Foreign exchange derivative contracts2 41 — 43  
Total other assets116 9,123 — 9,239  
Total assets at fair value$6,111 $60,467 $2,984 $147,688  
Liabilities
Policyholder account balances, future policy benefits and claims:
Fixed deferred indexed annuity embedded derivatives$— $— $53 $53  
IUL embedded derivatives— — 1,002 1,002  
Structured variable annuity embedded derivatives— — 2,461 2,461 
Total policyholder account balances, future policy benefits and claims— — 3,516 3,516 (3)
Market risk benefits— — 1,263 1,263 (2)
Customer deposits— 7 — 7  
Other liabilities:
Interest rate derivative contracts1 323 — 324  
Equity derivative contracts173 5,189 — 5,362  
Credit derivative contracts— 4 — 4 
Foreign exchange derivative contracts— 13 — 13 
Other314 8 68 390  
Total other liabilities488 5,537 68 6,093  
Total liabilities at fair value$488 $5,544 $4,847 $10,879  
(1) Amounts are comprised of financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy.
(2) See Note 10 for additional information related to market risk benefits, including the balances of and changes in market risk benefits as well as the significant inputs and assumptions used in the fair value measurements of market risk benefits.
(3) The Company’s adjustment for nonperformance risk resulted in a $239 million and $211 million cumulative decrease to the embedded derivatives as of September 30, 2025 and December 31, 2024, respectively.
The following tables provide a summary of changes in Level 3 assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis:
Available-for-Sale SecuritiesReceivables
Corporate Debt SecuritiesResidential Mortgage Backed SecuritiesAsset Backed SecuritiesTotalFixed Deferred Indexed Annuity Ceded Embedded Derivatives
(in millions)
Balance at July 1, 2025
$708 $23 $80 $811 $57 
Total gains (losses) included in:
Net income1 — — 1 (1)3 
Other comprehensive income (loss)4 — — 4 — 
Purchases32 — — 32 — 
Settlements(14)— (12)(26)(1)
Transfers out of Level 3— (23)— (23)— 
Balance at September 30, 2025
$731 $— $68 $799 $59 
Changes in unrealized gains (losses) in net income relating to assets held at September 30, 2025
$1 $— $— $1 (1)$— 
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at September 30, 2025
$4 $— $— $4 $— 

Policyholder Account Balances, Future Policy Benefits and ClaimsOther Liabilities
Fixed Deferred Indexed Annuity Embedded DerivativesIUL Embedded DerivativesStructured Variable Annuity Embedded DerivativesTotal
(in millions)
Balance at July 1, 2025
$56 $999 $2,879 $3,934 $66 
Total (gains) losses included in:
Net income4 (2)111 (2)948 (3)1,063 1 (4)
Issues— (3)28 25 10 
Settlements(2)(44)(120)(166)(13)
Balance at September 30, 2025
$58 $1,063 $3,735 $4,856 $64 
Changes in unrealized (gains) losses in net income relating to liabilities held at September 30, 2025
$— (2)$111 (2)$948 (3)$1,059 $— 
Available-for-Sale SecuritiesReceivables
Corporate Debt SecuritiesResidential Mortgage Backed SecuritiesAsset Backed SecuritiesTotalFixed Deferred Indexed Annuity Ceded Embedded Derivatives
(in millions)
Balance at July 1, 2024
$544 $57 $24 $625 $55 
Total gains (losses) included in:
Net income1 — — 1 (1)1 
Other comprehensive income (loss)16 1 — 17 — 
Purchases44 27 1 72 — 
Settlements(28)— — (28)(1)
Transfers out of Level 3— (57)(24)(81)— 
Balance at September 30, 2024
$577 $28 $1 $606 $55 
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at September 30, 2024
$16 $— $— $16 $— 

Policyholder Account Balances, Future Policy Benefits and ClaimsOther Liabilities
Fixed Deferred Indexed Annuity Embedded DerivativesIUL Embedded DerivativesStructured Variable Annuity Embedded DerivativesTotal
(in millions)
Balance at July 1, 2024
$52 $944 $1,896 $2,892 $69 
Total (gains) losses included in:
Net income3 (2)36 (2)487 (3)526 — (4)
Other comprehensive income (loss)— — — — 1 
Issues— 3 23 26 3 
Settlements(1)(40)(89)(130)(7)
Balance at September 30, 2024
$54 $943 $2,317 $3,314 $66 
Changes in unrealized (gains) losses in net income relating to liabilities held at September 30, 2024
$— (2)$36 (2)$487 (3)$523 $— 
Available-for-Sale SecuritiesReceivables
Corporate Debt SecuritiesResidential Mortgage Backed SecuritiesAsset Backed SecuritiesTotalFixed Deferred Indexed Annuity Ceded Embedded Derivatives
(in millions)
Balance at January 1, 2025
$583 $38 $126 $747 $55 
Total gains (losses) included in:
Net income2 — — 2 (1)8 
Other comprehensive income (loss)18 — — 18 — 
Purchases163 25 — 188 — 
Settlements(35)(2)(58)(95)(4)
Transfers out of Level 3— (61)— (61)— 
Balance at September 30, 2025
$731 $— $68 $799 $59 
Changes in unrealized gains (losses) in net income relating to assets held at September 30, 2025
$2 $— $— $2 (1)$— 
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at September 30, 2025
$18 $— $— $18 $— 
Policyholder Account Balances, Future Policy Benefits and ClaimsOther Liabilities
Fixed Deferred Indexed Annuity Embedded DerivativesIUL Embedded DerivativesStructured Variable Annuity Embedded DerivativesTotal
(in millions)
Balance at January 1, 2025
$53 $1,002 $2,461 $3,516 $68 
Total (gains) losses included in:
Net income9 (2)183 (2)1,486 (3)1,678 (5)(4)
Other comprehensive income (loss)— — — — 1 
Issues— (1)80 79 29 
Settlements(4)(121)(292)(417)(29)
Balance at September 30, 2025
$58 $1,063 $3,735 $4,856 $64 
Changes in unrealized (gains) losses in net income relating to liabilities held at September 30, 2025
$— 
(2)
$183 
(2)
$1,486 
(3)
$1,669 $— 
Available-for-Sale SecuritiesReceivables
Corporate Debt SecuritiesResidential Mortgage Backed SecuritiesAsset Backed SecuritiesTotalFixed Deferred Indexed Annuity Ceded Embedded Derivatives
(in millions)
Balance at January 1, 2024
$469 $— $1 $470 $51 
Total gains (losses) included in:
Net income1 — — 1 (1)7 
Other comprehensive income (loss)14 — — 14 — 
Purchases146 112 24 282 — 
Settlements(53)(2)— (55)(3)
Transfers out of Level 3— (82)(24)(106)— 
Balance at September 30, 2024
$577 $28 $1 $606 $55 
Changes in unrealized gains (losses) in net income relating to assets held at September 30, 2024
$1 $— $— $1 (1)$— 
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at September 30, 2024
$13 $— $— $13 $— 
Policyholder Account Balances, Future Policy Benefits and ClaimsOther Liabilities
Fixed Deferred Indexed Annuity Embedded DerivativesIUL Embedded DerivativesStructured Variable Annuity Embedded DerivativesTotal
(in millions)
Balance at January 1, 2024
$49 $873 $1,011 $1,933 $76 
Total (gains) losses included in:
Net income8 (2)169 (2)1,440 (3)1,617 1 (4)
Other comprehensive income (loss)— — — — 1 
Issues— 17 99 116 12 
Settlements(3)(116)(233)(352)(24)
Balance at September 30, 2024
$54 $943 $2,317 $3,314 $66 
Changes in unrealized (gains) losses in net income relating to liabilities held at September 30, 2024
$— 
(2)
$169 
(2)
$1,440 
(3)
$1,609 $— 
Changes in unrealized (gains) losses in other comprehensive income (loss) relating to liabilities held at September 30, 2024
$— $— $— $— $1 
(1) Included in Net investment income.
(2) Included in Interest credited to fixed accounts.
(3) Included in Benefits, claims, losses and settlement expenses.
(4) Included in General and administrative expense.
The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $22 million and $1 million, net of the reinsurance accrual, for the three months ended September 30, 2025 and 2024, respectively.
The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $23 million and $20 million, net of the reinsurance accrual, for the nine months ended September 30, 2025 and 2024, respectively.
Securities transferred from Level 3 primarily represent securities with fair values that are now obtained from a third-party pricing service with observable inputs or fair values that were included in an observable transaction with a market participant. Securities transferred to Level 3 represent securities with fair values that are now based on a single non-binding broker quote.
The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities:
 
September 30, 2025
Fair ValueValuation TechniqueUnobservable InputRange Weighted Average
(in millions)
Corporate debt securities (private placements)$731 Discounted cash flow
Yield/spread to U.S. Treasuries (1)
0.9%–1.6%1.1%
Asset backed securities$1 Discounted cash flow
Annual short-term default rate (2)
3.0%3.0%
Annual long-term default rate (2)
3.5%3.5%
Discount rate15.0%15.0%
Constant prepayment rate20.0%20.0%
Loss recovery60.0%60.0%
Fixed deferred indexed annuity ceded embedded derivatives$59 Discounted cash flow
Surrender rate (3)
0.2%–93.8%7.2%
Fixed deferred indexed annuity embedded derivatives$58 Discounted cash flow
Surrender rate (3)
0.2%–93.8%7.2%
 
 
 
Nonperformance risk (4)
60 bps60 bps
IUL embedded derivatives$1,063 Discounted cash flow
Nonperformance risk (4)
60 bps60 bps
Structured variable annuity embedded derivatives $3,735 Discounted cash flow
Surrender rate (3)
0.5%–75.0%2.0%
Nonperformance risk (4)
60 bps60 bps
Contingent consideration liabilities$64 Discounted cash flow
Discount rate (5)
0.0%–10.5%2.7%

 
December 31, 2024
Fair ValueValuation TechniqueUnobservable InputRangeWeighted Average
(in millions)
Corporate debt securities (private placements)$583 Discounted cash flow
Yield/spread to U.S. Treasuries (1)
0.8%–1.7%1.1%
Asset backed securities$1 Discounted cash flow
Annual short-term default rate (2)
3.5%3.5%
Annual long-term default rate (2)
3.5%3.5%
Discount rate15.3%15.3%
Constant prepayment rate20.0%20.0%
Loss recovery60.0%60.0%
Fixed deferred indexed annuity ceded embedded derivatives$55 Discounted cash flow
Surrender rate (3)
0.0%–89.1%10.6%
Fixed deferred indexed annuity embedded derivatives$53 Discounted cash flow
Surrender rate (3)
0.0%–89.1%10.6%
 
Nonperformance risk (4)
65 bps65 bps
IUL embedded derivatives$1,002 Discounted cash flow
Nonperformance risk (4)
65 bps65 bps
Structured variable annuity embedded derivatives$2,461 Discounted cash flow
Surrender rate (3)
0.5%–75.0%1.7%
Nonperformance risk (4)
65 bps65 bps
Contingent consideration liabilities$68 Discounted cash flow
Discount rate (5)
0.0%–10.5%3.3%
(1) The weighted average for the yield/spread to U.S. Treasuries for corporate debt securities (private placements) is weighted based on the security’s market value as a percentage of the aggregate market value of the securities.
(2) The weighted average annual default rates of asset backed securities is weighted based on the security’s market value as a percentage of the aggregate market value of the securities.
(3) The weighted average surrender rate represents the average assumption weighted based on the account value of each contract.
(4) The nonperformance risk is the spread added to the U.S. Treasury curve.
(5) The weighted average discount rate represents the average discount rate across all contingent consideration liabilities, weighted based on the size of the contingent consideration liability.
Level 3 measurements not included in the tables above are obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company.
Uncertainty of Fair Value Measurements
Significant increases (decreases) in the yield/spread to U.S. Treasuries used in the fair value measurement of Level 3 corporate debt securities in isolation would have resulted in a significantly lower (higher) fair value measurement.
Significant increases (decreases) in the annual default rate and discount rate used in the fair value measurement of Level 3 asset backed securities in isolation, generally, would have resulted in a significantly lower (higher) fair value measurement and significant increases (decreases) in loss recovery in isolation would have resulted in a significantly lower (higher) fair value measurement.
Significant increases (decreases) in the constant prepayment rate used in the fair value measurement of Level 3 asset backed securities in isolation would have resulted in a significantly lower (higher) fair value measurement.
Significant increases (decreases) in the surrender assumption used in the fair value measurement of the fixed deferred indexed annuity ceded embedded derivatives in isolation would have resulted in a significantly lower (higher) fair value measurement.
Significant increases (decreases) in nonperformance risk used in the fair value measurement of the IUL embedded derivatives in isolation would have resulted in a significantly lower (higher) fair value measurement.
Significant increases (decreases) in nonperformance risk and surrender assumption used in the fair value measurements of the fixed deferred indexed annuity embedded derivatives and structured variable annuity embedded derivatives in isolation would have resulted in a significantly lower (higher) liability value.
Significant increases (decreases) in the discount rate used in the fair value measurement of the contingent consideration liability in isolation would have resulted in a significantly lower (higher) fair value measurement.
Determination of Fair Value
The Company uses valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The Company’s market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company’s income approach uses valuation techniques to convert future projected cash flows to a single discounted present value amount. When applying either approach, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs.
The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy.
Assets
Cash Equivalents
Cash equivalents include time deposits and other highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less. Actively traded money market funds are measured at their NAV and classified as Level 1. U.S. Treasuries are also classified as Level 1. The Company’s remaining cash equivalents are classified as Level 2 and measured at amortized cost, which is a reasonable estimate of fair value because of the short time between the purchase of the instrument and its expected realization.
Investments (Available-for-Sale Securities, Equity Securities and Trading Securities)
When available, the fair value of securities is based on quoted prices in active markets. If quoted prices are not available, fair values are obtained from third-party pricing services, non-binding broker quotes, or other model-based valuation techniques.
Level 1 securities primarily include trading securities and U.S. Treasuries.
Level 2 securities primarily include corporate bonds, residential mortgage backed securities, commercial mortgage backed securities, asset backed securities, state and municipal obligations, U.S. government and agency obligations, foreign government securities, and trading and other securities. The fair value of these Level 2 securities is based on a market approach with prices obtained from third-party pricing services. Observable inputs used to value these securities can include, but are not limited to, reported trades, benchmark yields, issuer spreads and non-binding broker quotes. The fair value of securities included in an observable transaction with a market participant are also considered Level 2 when the market is not active.
Level 3 securities primarily include certain corporate bonds, non-agency residential mortgage backed securities and asset backed securities with fair value typically based on a single non-binding broker quote. The underlying inputs used for some of the non-binding broker quotes are not readily available to the Company. The Company’s privately placed corporate bonds are typically based on a single non-binding broker quote. The fair value of certain asset backed securities is determined using a discounted cash flow model. Inputs used to determine the expected cash flows include assumptions about discount rates and default, prepayment and recovery rates of the underlying assets. Given the significance of the unobservable inputs to this fair value measurement, the fair value of the investment in certain asset backed securities is classified as Level 3.
Management is responsible for the fair values recorded on the financial statements. Prices received from third-party pricing services are subjected to exception reporting that identifies investments with significant daily price movements as well as no movements. The Company reviews the exception reporting and resolves the exceptions through reaffirmation of the price or recording an appropriate fair value estimate. The Company also performs subsequent transaction testing. The Company performs annual due diligence of third-party pricing services. The Company’s due diligence procedures include assessing the vendor’s valuation qualifications, control environment, analysis of asset-class specific valuation methodologies, and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. The Company also considers the results of its exception reporting controls and any resulting price challenges that arise.
Separate Account Assets
The fair value of assets held by separate accounts is determined by the NAV of the funds in which those separate accounts are invested. The NAV is used as a practical expedient for fair value and represents the exit price for the separate account. Separate account assets are excluded from classification in the fair value hierarchy.
Investments and Cash Equivalents Segregated for Regulatory Purposes
Investments and cash equivalents segregated for regulatory purposes includes U.S. Treasuries that are classified as Level 1.
Receivables
The Company reinsured its fixed deferred indexed annuity products which have an indexed account that is accounted for as an embedded derivative. The Company uses discounted cash flow models to determine the fair value of these ceded embedded derivatives. The fair value of fixed deferred indexed annuity ceded embedded derivatives includes significant observable interest rates, volatilities and equity index levels and significant unobservable surrender rates. Given the significance of the unobservable surrender rates, these embedded derivatives are classified as Level 3.
Other Assets
Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements. The variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active over-the-counter (“OTC”) markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps, foreign currency forwards and the majority of options. The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial as of both September 30, 2025 and December 31, 2024. See Note 13 and Note 14 for further information on the credit risk of derivative instruments and related collateral.
Liabilities
Policyholder Account Balances, Future Policy Benefits and Claims
There is no active market for the transfer of the Company’s embedded derivatives attributable to the provisions of fixed deferred indexed annuity, structured variable annuity and IUL products.
The Company uses discounted cash flow models to determine the fair value of the embedded derivatives associated with the provisions of its fixed deferred indexed annuity, structured variable annuity and IUL products. The fair value of fixed deferred indexed annuity, structured variable annuity and IUL embedded derivatives includes significant observable interest rates, volatilities and equity index levels and significant unobservable surrender rates and the estimate of the Company’s nonperformance risk. Given the significance of the unobservable surrender rates and the nonperformance risk assumption, the fixed deferred indexed annuity, structured variable annuity and IUL embedded derivatives are classified as Level 3.
The embedded derivatives attributable to these provisions are recorded in Policyholder account balances, future policy benefits and claims.
Customer Deposits
The Company uses Black-Scholes models to determine the fair value of the embedded derivative liability associated with the provisions of its stock market certificates (“SMC”). The inputs to these calculations are primarily market observable and include interest rates, volatilities and equity index levels. As a result, these measurements are classified as Level 2.
Other Liabilities
Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements. The variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active OTC markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps, foreign currency forwards and the majority of options. The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial as of both September 30, 2025 and December 31, 2024. See Note 13 and Note 14 for further information on the credit risk of derivative instruments and related collateral.
Securities sold but not yet purchased represent obligations of the Company to deliver specified securities that it does not yet own, creating a liability to purchase the security in the market at prevailing prices. When available, the fair value of securities is based on quoted prices in active markets. If quoted prices are not available, fair values are obtained from nationally-recognized pricing services, or other model-based valuation techniques such as the present value of cash flows. Level 1 securities sold but not yet purchased primarily include trading securities and U.S. Treasuries traded in active markets. Level 2 securities sold but not yet purchased primarily include corporate bonds.
Contingent consideration liabilities consist of earn-outs and/or deferred payments related to the Company’s acquisitions. Contingent consideration liabilities are recorded at fair value utilizing a discounted cash flow model using an unobservable input (discount rate). Given the use of a significant unobservable input, the fair value of contingent consideration liabilities is classified as Level 3 within the fair value hierarchy.
Fair Value on a Nonrecurring Basis
The Company assesses its investment in affordable housing partnerships for impairment. The investments that are determined to be impaired are written down to their fair value. The Company uses a discounted cash flow model to measure the fair value of these investments. Inputs to the discounted cash flow model are estimates of future net operating losses and tax credits available to the Company and discount rates based on market condition and the financial strength of the syndicator (general partner). The balance of affordable housing partnerships measured at fair value on a nonrecurring basis was $18 million and $27 million as of September 30, 2025 and December 31, 2024, respectively, and is classified as Level 3 in the fair value hierarchy.
Assets and Liabilities Not Reported at Fair Value
The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value:
 September 30, 2025
Carrying ValueFair Value
Level 1Level 2Level 3Total
(in millions)
Financial Assets
Mortgage loans, net$2,650 $— $643 $1,925 $2,568 
Policy loans1,043 — 1,043 — 1,043 
Receivables 9,397 279 2,123 6,018 8,420 
Restricted and segregated cash751 751 — — 751 
Other investments and assets249 — 195 55 250 
Financial Liabilities
Policyholder account balances, future policy benefits and claims
$22,409 $— $— $19,092 $19,092 
Investment certificate reserves8,931 — — 8,906 8,906 
Banking and brokerage deposits24,711 24,698 13 — 24,711 
Separate account liabilities — investment contracts2,904 — 2,904 — 2,904 
Debt and other liabilities3,628 328 3,368 4 3,700 
 December 31, 2024
Carrying ValueFair Value
Level 1Level 2Level 3Total
(in millions)
Financial Assets
Mortgage loans, net$2,354 $— $433 $1,768 $2,201 
Policy loans982 — 982 — 982 
Receivables9,236 218 1,879 5,964 8,061 
Restricted and segregated cash887 887 — — 887 
Other investments and assets272 — 220 53 273 
Financial Liabilities
Policyholder account balances, future policy benefits and claims$20,097 $— $— $16,826 $16,826 
Investment certificate reserves11,205 — — 11,183 11,183 
Banking and brokerage deposits24,639 24,639 — — 24,639 
Separate account liabilities — investment contracts2,902 — 2,902 — 2,902 
Debt and other liabilities3,326 274 3,031 4 3,309 
Receivables include deposit receivables, brokerage margin loans, securities borrowed, pledged asset lines of credit and loans to financial advisors. Restricted and segregated cash includes cash segregated under federal and other regulations held in special reserve bank accounts for the exclusive benefit of the Company’s brokerage customers. Other investments and assets primarily include syndicated loans, credit card receivables, certificate of deposits with original or remaining maturities at the time of purchase of more than 90 days, the Company’s membership in the FHLB and investments related to the Community Reinvestment Act. See Note 6 for additional information on mortgage loans, policy loans, syndicated loans, credit card receivables and deposit receivables.
Policyholder account balances, future policy benefits and claims include fixed annuities in deferral status, non-life contingent fixed annuities in payout status, indexed and structured variable annuity host contracts, and the fixed portion of a small number of variable annuity contracts classified as investment contracts. See Note 8 for additional information on these liabilities. Investment certificate reserves represent customer deposits for fixed rate certificates and stock market certificates. Banking and brokerage deposits are amounts payable to customers related to free credit balances, funds deposited by customers and funds accruing to customers as a result of trades or contracts. Separate account liabilities are primarily investment contracts in pooled pension funds offered by Threadneedle. Debt and other liabilities include the Company’s long-term debt, short-term borrowings, securities loaned and future funding commitments to affordable housing partnerships and other real estate partnerships. See Note 11 for further information on the Company’s long-term debt and short-term borrowings.