|
x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
13-3180631
|
(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
|
|
1099 Ameriprise Financial Center, Minneapolis, Minnesota
|
55474
|
|
(Address of principal executive offices)
|
(Zip Code)
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Title of each class
|
|
Name on each exchange on which registered
|
Common Stock (par value $.01 per share)
|
The New York Stock Exchange, Inc.
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Class
|
|
Outstanding at February 13, 2015
|
|
Common Stock (par value $.01 per share)
|
|
182,511,452 shares
|
|
|
Business
|
3
|
|
|
|
Item 1A.
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Risk Factors
|
24
|
|
|
Item 1B.
|
Unresolved Staff Comments
|
39
|
|
|
Item 2.
|
Properties
|
39
|
|
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Item 3.
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Legal Proceedings
|
40
|
|
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Item 4.
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Mine Safety Disclosures
|
41
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|
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Item 5.
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Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
42
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|
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Item 6.
|
Selected Financial Data
|
43
|
|
|
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
44
|
|
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Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk
|
90
|
|
|
Item 8.
|
Financial Statements and Supplementary Data
|
97
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|
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Item 9.
|
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
|
179
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|
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Item 9A.
|
Controls and Procedures
|
179
|
|
|
Item 9B.
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Other Information
|
179
|
|
Part II
I.
|
||||
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
180
|
|
|
Item 11.
|
Executive Compensation
|
182
|
|
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
182
|
|
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
182
|
|
|
Item 14.
|
Principal Accountant Fees and Services
|
182
|
|
Part I
V.
|
||||
|
Item 15.
|
Exhibits and Financial Statement Schedules
|
183
|
|
|
184
|
|
||
|
Condensed Financial Information of Registrant
|
F-2
|
|
|
|
E-1
|
|
•
|
Advice & Wealth Management;
|
•
|
Asset Management;
|
•
|
Annuities;
|
•
|
Protection; and
|
•
|
Corporate & Other.
|
•
|
Employee Advisors.
Under this affiliation, an advisor is an employee of our company and receives a higher level of support, including leadership, training, office space and staff support. We pay compensation that is competitive with other employee advisor models, which is generally lower than that of our franchisee advisors. Employee advisors are also employed in the Ameriprise Advisor Center (“AAC”), our dedicated platform for remote-based sales and service to Ameriprise retail customers. Advisors in the AAC utilize a team model to service retail customers on a remote basis.
|
•
|
Franchisee Advisors.
Under this affiliation, an advisor is an independent contractor franchisee who affiliates with our company and has the right to use the
Ameriprise
brand. We pay our franchisee advisors a higher payout rate than our employee advisors as they are responsible for paying their own overhead, staff compensation and other business expenses. In addition, our franchisee advisors pay a franchise association fee and other fees in exchange for the support we offer and the right to use our brand name. The support we offer to our franchisee advisors includes generalist and specialist leadership support, technology platforms and tools, training and marketing programs.
|
•
|
We purchase reinsurance with a limit of $5 million per loss, and we retain $750,000 per loss.
|
•
|
We purchase catastrophe reinsurance that, for 2014, had a limit of $125 million per event and we retained $20 million per event. For 2015, our catastrophe reinsurance has a limit of $155 million per event and we retain $20 million per event.
|
•
|
We purchase reinsurance that limits our personal liability insurance exposure to 20% of any loss. This 80% quota share treaty uses the same reinsurers as our excess of loss treaty.
|
|
|
Years Ended December 31,
|
||||||||||||||||||
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
|
|
(in millions, except per share data)
|
||||||||||||||||||
Income Statement Data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total net revenues
|
|
$
|
12,268
|
|
|
$
|
11,199
|
|
|
$
|
10,217
|
|
|
$
|
10,192
|
|
|
$
|
9,512
|
|
Total expenses
|
|
9,721
|
|
|
9,229
|
|
|
8,979
|
|
|
8,745
|
|
|
8,043
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
|
$
|
2,002
|
|
|
$
|
1,478
|
|
|
$
|
903
|
|
|
$
|
1,070
|
|
|
$
|
1,176
|
|
Loss from discontinued operations, net of tax
|
|
(2
|
)
|
|
(3
|
)
|
|
(2
|
)
|
|
(60
|
)
|
|
(24
|
)
|
|||||
Net income
|
|
2,000
|
|
|
1,475
|
|
|
901
|
|
|
1,010
|
|
|
1,152
|
|
|||||
Less: Net income (loss) attributable to noncontrolling interests
|
|
381
|
|
|
141
|
|
|
(128
|
)
|
|
(106
|
)
|
|
163
|
|
|||||
Net income attributable to Ameriprise Financial
|
|
$
|
1,619
|
|
|
$
|
1,334
|
|
|
$
|
1,029
|
|
|
$
|
1,116
|
|
|
$
|
989
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings Per Share Attributable to Ameriprise Financial, Inc. Common Shareholders:
|
||||||||||||||||||||
Basic
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
|
$
|
8.46
|
|
|
$
|
6.58
|
|
|
$
|
4.71
|
|
|
$
|
4.87
|
|
|
$
|
3.94
|
|
Loss from discontinued operations
|
|
(0.01
|
)
|
|
(0.02
|
)
|
|
(0.01
|
)
|
|
(0.25
|
)
|
|
(0.10
|
)
|
|||||
Net income
|
|
$
|
8.45
|
|
|
$
|
6.56
|
|
|
$
|
4.70
|
|
|
$
|
4.62
|
|
|
$
|
3.84
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
|
$
|
8.31
|
|
|
$
|
6.46
|
|
|
$
|
4.63
|
|
|
$
|
4.77
|
|
|
$
|
3.86
|
|
Loss from discontinued operations
|
|
(0.01
|
)
|
|
(0.02
|
)
|
|
(0.01
|
)
|
|
(0.24
|
)
|
|
(0.09
|
)
|
|||||
Net income
|
|
$
|
8.30
|
|
|
$
|
6.44
|
|
|
$
|
4.62
|
|
|
$
|
4.53
|
|
|
$
|
3.77
|
|
Cash Dividends Declared Per Common Share
|
|
$
|
2.26
|
|
|
$
|
2.01
|
|
|
$
|
1.15
|
|
|
$
|
1.15
|
|
|
$
|
0.71
|
|
|
|
December 31,
|
||||||||||||||||||
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
|
|
(in millions)
|
||||||||||||||||||
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investments
(1)
|
|
$
|
35,582
|
|
|
$
|
35,735
|
|
|
$
|
36,877
|
|
|
$
|
39,953
|
|
|
$
|
37,653
|
|
Separate account assets
|
|
83,256
|
|
|
81,223
|
|
|
72,397
|
|
|
66,780
|
|
|
68,330
|
|
|||||
Total assets
|
|
148,810
|
|
|
144,576
|
|
|
134,729
|
|
|
132,307
|
|
|
129,523
|
|
|||||
Policyholder account balances, future policy benefits and claims
|
|
30,350
|
|
|
29,620
|
|
|
31,217
|
|
|
31,710
|
|
|
30,195
|
|
|||||
Separate account liabilities
|
|
83,256
|
|
|
81,223
|
|
|
72,397
|
|
|
66,780
|
|
|
68,330
|
|
|||||
Customer deposits
|
|
7,664
|
|
|
7,062
|
|
|
6,526
|
|
|
9,850
|
|
|
8,779
|
|
|||||
Long-term debt
(1)
|
|
3,062
|
|
|
2,720
|
|
|
2,403
|
|
|
2,393
|
|
|
2,317
|
|
|||||
Short-term borrowings
|
|
200
|
|
|
500
|
|
|
501
|
|
|
504
|
|
|
397
|
|
|||||
Total liabilities
|
|
139,505
|
|
|
135,344
|
|
|
125,017
|
|
|
122,613
|
|
|
119,573
|
|
|||||
Total Ameriprise Financial, Inc. shareholders’ equity
|
|
8,124
|
|
|
8,192
|
|
|
9,092
|
|
|
8,988
|
|
|
9,390
|
|
|||||
Noncontrolling interests’ equity
|
|
1,181
|
|
|
1,040
|
|
|
620
|
|
|
706
|
|
|
560
|
|
|||||
(1)
Represents amounts before consolidated investment entities, as reported on our Consolidated Balance Sheets.
|
•
|
Advice & Wealth Management;
|
•
|
Asset Management;
|
•
|
Annuities;
|
•
|
Protection; and
|
•
|
Corporate & Other.
|
•
|
Ameriprise interest and debt expense was allocated to all segments to more accurately reflect management’s assessment of capital allocation.
|
•
|
Interest accretion income from the intercompany transfer of former bank assets was eliminated for segment reporting resulting in this accretion no longer being allocated to the Annuities and Protection segments. The corresponding offset is no longer reported in the Corporate & Other segment.
|
•
|
Certain fixed wholesaling costs were reclassified from distribution expenses to general and administrative expense to improve consistency in our presentation of wholesaling distribution expense across all segments. This change also impacted the Consolidated Statements of Income.
|
•
|
Operating total net revenue growth of 6% to 8%,
|
•
|
Operating earnings per diluted share growth of 12% to 15%, and
|
•
|
Operating return on equity excluding accumulated other comprehensive income (“AOCI”) of 19% to 23%.
|
|
Years Ended December 31,
|
||||||
|
2014
|
|
2013
|
||||
|
(in millions)
|
||||||
Total net revenues
|
$
|
12,268
|
|
|
$
|
11,199
|
|
Less: Revenue attributable to CIEs
|
651
|
|
|
345
|
|
||
Less: Net realized gains
|
37
|
|
|
7
|
|
||
Less: Market impact on indexed universal life benefits
|
(11
|
)
|
|
(10
|
)
|
||
Operating total net revenues
|
$
|
11,591
|
|
|
$
|
10,857
|
|
|
Estimated Impact to Pretax Income
(1)
|
||
|
(in millions)
|
||
Decrease in future near- and long-term fixed income returns by 100 basis points
|
$
|
(57
|
)
|
|
|
||
Decrease in future near-term equity fund growth returns by 100 basis points
|
$
|
(39
|
)
|
Decrease in future long-term equity fund growth returns by 100 basis points
|
(31
|
)
|
|
Decrease in future near- and long-term equity fund growth returns by 100 basis points
|
$
|
(70
|
)
|
(1)
An increase in the above assumptions by 100 basis points would result in an increase to pretax income for approximately the same amount.
|
|
December 31,
|
|
|
|||||||||||
|
2014
|
|
2013
|
|
Change
|
|||||||||
|
(in billions)
|
|
|
|||||||||||
Assets Under Management and Administration
|
|
|
|
|
|
|
|
|||||||
Advice & Wealth Management AUM
|
$
|
174.1
|
|
|
$
|
153.1
|
|
|
$
|
21.0
|
|
|
14
|
%
|
Asset Management AUM
|
505.6
|
|
|
500.8
|
|
|
4.8
|
|
|
1
|
|
|||
Corporate & Other AUM
|
0.8
|
|
|
0.9
|
|
|
(0.1
|
)
|
|
(11
|
)
|
|||
Eliminations
|
(21.9
|
)
|
|
(20.5
|
)
|
|
(1.4
|
)
|
|
(7
|
)
|
|||
Total Assets Under Management
|
658.6
|
|
|
634.3
|
|
|
24.3
|
|
|
4
|
|
|||
Total Assets Under Administration
|
147.6
|
|
|
137.0
|
|
|
10.6
|
|
|
8
|
|
|||
Total AUM and AUA
|
$
|
806.2
|
|
|
$
|
771.3
|
|
|
$
|
34.9
|
|
|
5
|
%
|
|
Years Ended December 31,
|
|
|
|||||||||||
|
2014
|
|
2013
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|||||||
Management and financial advice fees
|
$
|
5,810
|
|
|
$
|
5,253
|
|
|
$
|
557
|
|
|
11
|
%
|
Distribution fees
|
1,894
|
|
|
1,771
|
|
|
123
|
|
|
7
|
|
|||
Net investment income
|
1,741
|
|
|
1,889
|
|
|
(148
|
)
|
|
(8
|
)
|
|||
Premiums
|
1,385
|
|
|
1,282
|
|
|
103
|
|
|
8
|
|
|||
Other revenues
|
1,466
|
|
|
1,035
|
|
|
431
|
|
|
42
|
|
|||
Total revenues
|
12,296
|
|
|
11,230
|
|
|
1,066
|
|
|
9
|
|
|||
Banking and deposit interest expense
|
28
|
|
|
31
|
|
|
(3
|
)
|
|
(10
|
)
|
|||
Total net revenues
|
12,268
|
|
|
11,199
|
|
|
1,069
|
|
|
10
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|||||||
Distribution expenses
|
3,236
|
|
|
2,925
|
|
|
311
|
|
|
11
|
|
|||
Interest credited to fixed accounts
|
713
|
|
|
806
|
|
|
(93
|
)
|
|
(12
|
)
|
|||
Benefits, claims, losses and settlement expenses
|
1,982
|
|
|
1,954
|
|
|
28
|
|
|
1
|
|
|||
Amortization of deferred acquisition costs
|
367
|
|
|
207
|
|
|
160
|
|
|
77
|
|
|||
Interest and debt expense
|
328
|
|
|
281
|
|
|
47
|
|
|
17
|
|
|||
General and administrative expense
|
3,095
|
|
|
3,056
|
|
|
39
|
|
|
1
|
|
|||
Total expenses
|
9,721
|
|
|
9,229
|
|
|
492
|
|
|
5
|
|
|||
Income from continuing operations before income tax provision
|
2,547
|
|
|
1,970
|
|
|
577
|
|
|
29
|
|
|||
Income tax provision
|
545
|
|
|
492
|
|
|
53
|
|
|
11
|
|
|||
Income from continuing operations
|
2,002
|
|
|
1,478
|
|
|
524
|
|
|
35
|
|
|||
Loss from discontinued operations, net of tax
|
(2
|
)
|
|
(3
|
)
|
|
1
|
|
|
33
|
|
|||
Net income
|
2,000
|
|
|
1,475
|
|
|
525
|
|
|
36
|
|
|||
Less: Net income attributable to noncontrolling interests
|
381
|
|
|
141
|
|
|
240
|
|
|
NM
|
|
|||
Net income attributable to Ameriprise Financial
|
$
|
1,619
|
|
|
$
|
1,334
|
|
|
$
|
285
|
|
|
21
|
%
|
NM Not Meaningful.
|
•
|
The year ended
December 31, 2014
included a $6 million expense from unlocking. The prior year included a $5 million benefit from unlocking, which included a $22 million benefit related to the market impact on variable annuity guaranteed benefits. The market impact on variable annuity guaranteed benefits is discussed below. The unlocking impact for the year ended
December 31, 2014
reflected the difference between our previously assumed interest rates versus the continued low interest rate environment, partially offset by a benefit from updating our variable annuity living benefit withdrawal utilization assumption. The unlocking impact for the prior year reflected the impact of assumed interest rates and changes in assumed policyholder behavior, partially offset by the impact of variable annuity model changes.
|
•
|
A $163 million increase in provision for estimated losses related to our auto and home business reflecting the impact of growth in exposures from
an 11% increase in policies in force
, an increase in catastrophe losses reflecting the growth in exposures and the extremely severe winter and spring weather during 2014, and adverse development in the 2013 and prior accident years auto liability coverage observed during the first quarter of 2014 resulting in a $30 million increase to prior accident year loss reserves. Later in 2014, further adverse loss development was observed primarily in the 2014 auto book of business which resulted in a $60 million increase to loss reserves for estimated losses including
incurred but not reported claims reserves ("IBNR")
. Catastrophe losses were $66 million for the year ended
December 31, 2014
compared to $42 million for the prior year.
|
•
|
A $26 million increase in expense related to higher reserve funding driven by the impact of higher fees from variable annuity guarantee sales in the prior year where the fees start on the first anniversary date.
|
•
|
A $21 million decrease in expenses compared to the prior year from policyholder movement of investments in Portfolio Navigator
(traditional asset allocation)
funds under certain in force variable annuities with living benefit guarantees to the Portfolio Stabilizer
(managed volatility)
funds. See additional discussion in the Annuities segment.
|
•
|
A decrease in expense compared to the prior year due to an $8 million increase in disability income reserves in the second quarter of 2013 related to prior periods.
|
•
|
A $404 million decrease in expense compared to the prior year from the unhedged nonperformance credit spread risk adjustment on variable annuity guaranteed benefits.
As the embedded derivative liability on which the nonperformance credit spread is applied increases (decreases), the impact of the nonperformance credit spread is favorable (unfavorable) to expense. In 2014, the favorable impact of the nonperformance credit spread was $146 million primarily driven by an increase in the embedded derivative liability. In 2013, the unfavorable impact of the nonperformance credit spread was $258 million primarily driven by a decrease in the embedded derivative liability.
|
•
|
A $303 million increase in expense from other market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks and the related DSIC amortization. This increase was the result of an unfavorable $2.9 billion change in the market impact on variable annuity guaranteed living benefits reserves, a favorable $2.6 billion change in the market impact on derivatives hedging the variable annuity guaranteed benefits and an unfavorable $2 million DSIC offset. The main market drivers contributing to these changes are summarized below:
|
•
|
Interest rates were down in 2014 and up in 2013 resulting in an unfavorable change in the variable annuity guaranteed living benefits liability, partially offset by a favorable change in the related hedge assets.
|
•
|
Equity market and volatility impacts on the hedge assets resulted in a smaller increase in expense in 2014 compared to 2013. This benefit was partially offset by an unfavorable change in 2014 compared to 2013 from equity market and volatility impacts on the related variable annuity guaranteed living benefits liability.
|
•
|
Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and various behavioral items, were a net favorable impact compared to the prior year.
|
•
|
Amortization of DAC for the year ended
December 31, 2014
included an $8 million expense from unlocking, primarily driven by the difference between our previously assumed interest rates versus the continued low interest rate environment, partially offset by favorable persistency and mortality experience and a benefit from updating our variable annuity living benefit withdrawal utilization assumption. Amortization of DAC for the prior year included a $79 million benefit from unlocking, which included a $5 million expense related to the DAC offset to the market impact on variable annuity guaranteed benefits, primarily driven by the impact of assumed interest rates and changes in assumed policyholder behavior.
|
•
|
The DAC offset to the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC amortization) was a benefit of $9 million for the year ended
December 31, 2014
compared to a benefit of $34 million for the prior year.
|
•
|
A $7 million expense related to an actuarial model correction in life insurance in the fourth quarter of 2014 primarily related to prior periods.
|
•
|
The impact on DAC from actual versus expected market performance based on our view of bond and equity performance was a benefit of $21 million for the year ended December 31, 2014 compared to a benefit of $26 million for the prior year. Equity market returns were favorable in both periods but less favorable in 2014 versus the prior year. Bond fund returns were favorable in 2014 and unfavorable in the prior year.
|
|
Years Ended December 31,
|
||||||
|
2014
|
|
2013
|
||||
|
(in millions)
|
||||||
Advice & Wealth Management
|
|
|
|
|
|
||
Net revenues
|
$
|
4,806
|
|
|
$
|
4,295
|
|
Expenses
|
4,014
|
|
|
3,703
|
|
||
Operating earnings
|
$
|
792
|
|
|
$
|
592
|
|
Asset Management
|
|
|
|
|
|
||
Net revenues
|
$
|
3,320
|
|
|
$
|
3,169
|
|
Expenses
|
2,532
|
|
|
2,478
|
|
||
Operating earnings
|
$
|
788
|
|
|
$
|
691
|
|
Annuities
|
|
|
|
|
|
||
Net revenues
|
$
|
2,591
|
|
|
$
|
2,561
|
|
Expenses
|
1,958
|
|
|
1,932
|
|
||
Operating earnings
|
$
|
633
|
|
|
$
|
629
|
|
Protection
|
|
|
|
|
|
||
Net revenues
|
$
|
2,287
|
|
|
$
|
2,186
|
|
Expenses
|
2,041
|
|
|
1,850
|
|
||
Operating earnings
|
$
|
246
|
|
|
$
|
336
|
|
Corporate & Other
|
|
|
|
|
|
||
Net revenues
|
$
|
4
|
|
|
$
|
15
|
|
Expenses
|
234
|
|
|
244
|
|
||
Operating loss
|
$
|
(230
|
)
|
|
$
|
(229
|
)
|
|
|
Years Ended December 31,
|
||||||||||||||
|
|
2014
|
|
2013
|
||||||||||||
Segment Pretax Operating Increase (Decrease)
|
|
Annuities
|
|
Protection
|
|
Annuities
|
|
Protection
|
||||||||
|
|
(in millions)
|
||||||||||||||
Other revenues
|
|
$
|
—
|
|
|
$
|
(29
|
)
|
|
$
|
—
|
|
|
$
|
(18
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Benefits, claims, losses and settlement expenses
|
|
5
|
|
|
1
|
|
|
21
|
|
|
(4
|
)
|
||||
Amortization of DAC
|
|
17
|
|
|
(9
|
)
|
|
(81
|
)
|
|
(3
|
)
|
||||
Total expenses
|
|
22
|
|
|
(8
|
)
|
|
(60
|
)
|
|
(7
|
)
|
||||
Total
|
|
$
|
(22
|
)
|
|
$
|
(21
|
)
|
|
$
|
60
|
|
|
$
|
(11
|
)
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
|
2014
|
|
2013
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|||||||
Management and financial advice fees
|
$
|
2,413
|
|
|
$
|
2,039
|
|
|
$
|
374
|
|
|
18
|
%
|
Distribution fees
|
2,213
|
|
|
2,095
|
|
|
118
|
|
|
6
|
|
|||
Net investment income
|
136
|
|
|
127
|
|
|
9
|
|
|
7
|
|
|||
Other revenues
|
72
|
|
|
65
|
|
|
7
|
|
|
11
|
|
|||
Total revenues
|
4,834
|
|
|
4,326
|
|
|
508
|
|
|
12
|
|
|||
Banking and deposit interest expense
|
28
|
|
|
31
|
|
|
(3
|
)
|
|
(10
|
)
|
|||
Total net revenues
|
4,806
|
|
|
4,295
|
|
|
511
|
|
|
12
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|||
Distribution expenses
|
2,943
|
|
|
2,641
|
|
|
302
|
|
|
11
|
|
|||
Interest and debt expense
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|||
General and administrative expense
|
1,065
|
|
|
1,056
|
|
|
9
|
|
|
1
|
|
|||
Total expenses
|
4,014
|
|
|
3,703
|
|
|
311
|
|
|
8
|
|
|||
Operating earnings
|
$
|
792
|
|
|
$
|
592
|
|
|
$
|
200
|
|
|
34
|
%
|
Columbia
Mutual Fund Rankings in top 2 Lipper Quartiles
|
|
|
|
|
2014
|
|
2013
|
||
Domestic Equity
|
Equal weighted
|
|
1 year
|
|
61
|
%
|
|
54
|
%
|
|
|
|
3 year
|
|
68
|
%
|
|
51
|
%
|
|
|
|
5 year
|
|
57
|
%
|
|
58
|
%
|
|
Asset weighted
|
|
1 year
|
|
58
|
%
|
|
39
|
%
|
|
|
|
3 year
|
|
62
|
%
|
|
52
|
%
|
|
|
|
5 year
|
|
62
|
%
|
|
47
|
%
|
International Equity
|
Equal weighted
|
|
1 year
|
|
50
|
%
|
|
65
|
%
|
|
|
|
3 year
|
|
68
|
%
|
|
50
|
%
|
|
|
|
5 year
|
|
65
|
%
|
|
50
|
%
|
|
Asset weighted
|
|
1 year
|
|
74
|
%
|
|
32
|
%
|
|
|
|
3 year
|
|
45
|
%
|
|
26
|
%
|
|
|
|
5 year
|
|
45
|
%
|
|
25
|
%
|
Taxable Fixed Income
|
Equal weighted
|
|
1 year
|
|
50
|
%
|
|
44
|
%
|
|
|
|
3 year
|
|
61
|
%
|
|
65
|
%
|
|
|
|
5 year
|
|
65
|
%
|
|
41
|
%
|
|
Asset weighted
|
|
1 year
|
|
71
|
%
|
|
44
|
%
|
|
|
|
3 year
|
|
83
|
%
|
|
83
|
%
|
|
|
|
5 year
|
|
83
|
%
|
|
52
|
%
|
Tax Exempt Fixed Income
|
Equal weighted
|
|
1 year
|
|
89
|
%
|
|
100
|
%
|
|
|
|
3 year
|
|
100
|
%
|
|
100
|
%
|
|
|
|
5 year
|
|
100
|
%
|
|
94
|
%
|
|
Asset weighted
|
|
1 year
|
|
78
|
%
|
|
100
|
%
|
|
|
|
3 year
|
|
100
|
%
|
|
100
|
%
|
|
|
|
5 year
|
|
100
|
%
|
|
84
|
%
|
Asset Allocation Funds
|
Equal weighted
|
|
1 year
|
|
58
|
%
|
|
31
|
%
|
|
|
|
3 year
|
|
64
|
%
|
|
60
|
%
|
|
|
|
5 year
|
|
89
|
%
|
|
80
|
%
|
|
Asset weighted
|
|
1 year
|
|
67
|
%
|
|
39
|
%
|
|
|
|
3 year
|
|
76
|
%
|
|
64
|
%
|
|
|
|
5 year
|
|
97
|
%
|
|
92
|
%
|
Number of funds with 4 or 5 Morningstar star ratings
|
|
|
Overall
|
|
51
|
|
|
54
|
|
|
|
|
3 year
|
|
42
|
|
|
45
|
|
|
|
|
5 year
|
|
46
|
|
|
41
|
|
Percent of funds with 4 or 5 Morningstar star ratings
|
|
|
Overall
|
|
49
|
%
|
|
55
|
%
|
|
|
|
3 year
|
|
40
|
%
|
|
46
|
%
|
|
|
|
5 year
|
|
47
|
%
|
|
43
|
%
|
Percent of assets with 4 or 5 Morningstar star ratings
|
|
|
Overall
|
|
55
|
%
|
|
56
|
%
|
|
|
|
3 year
|
|
35
|
%
|
|
39
|
%
|
|
|
|
5 year
|
|
54
|
%
|
|
37
|
%
|
Threadneedle
Retail Fund Rankings in Top 2 Morningstar Quartiles or Above Index Benchmark |
|
2014
|
|
2013
|
|||||
Equity
|
Equal weighted
|
|
1 year
|
|
61
|
%
|
|
66
|
%
|
|
|
|
3 year
|
|
64
|
%
|
|
78
|
%
|
|
|
|
5 year
|
|
83
|
%
|
|
81
|
%
|
|
Asset weighted
|
|
1 year
|
|
63
|
%
|
|
46
|
%
|
|
|
|
3 year
|
|
59
|
%
|
|
86
|
%
|
|
|
|
5 year
|
|
86
|
%
|
|
88
|
%
|
Fixed Income
|
Equal weighted
|
|
1 year
|
|
65
|
%
|
|
48
|
%
|
|
|
|
3 year
|
|
68
|
%
|
|
68
|
%
|
|
|
|
5 year
|
|
68
|
%
|
|
67
|
%
|
|
Asset weighted
|
|
1 year
|
|
65
|
%
|
|
50
|
%
|
|
|
|
3 year
|
|
71
|
%
|
|
43
|
%
|
|
|
|
5 year
|
|
51
|
%
|
|
44
|
%
|
Allocation (Managed) Funds
|
Equal weighted
|
|
1 year
|
|
57
|
%
|
|
86
|
%
|
|
|
|
3 year
|
|
83
|
%
|
|
100
|
%
|
|
|
|
5 year
|
|
83
|
%
|
|
67
|
%
|
|
Asset weighted
|
|
1 year
|
|
68
|
%
|
|
92
|
%
|
|
|
|
3 year
|
|
93
|
%
|
|
100
|
%
|
|
|
|
5 year
|
|
93
|
%
|
|
54
|
%
|
|
Years Ended December 31,
|
|
|
|
|
||||||||
|
2014
|
|
2013
|
|
Change
|
||||||||
|
(in billions)
|
|
|
||||||||||
Columbia managed asset net flows
|
$
|
2.3
|
|
|
$
|
(8.3
|
)
|
|
$
|
10.6
|
|
|
NM
|
Threadneedle managed asset net flows
|
—
|
|
|
1.8
|
|
|
(1.8
|
)
|
|
NM
|
|||
Less: Sub-advised eliminations
|
(0.2
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
NM
|
|||
Total managed asset net flows
|
$
|
2.1
|
|
|
$
|
(6.6
|
)
|
|
$
|
8.7
|
|
|
NM
|
NM Not Meaningful.
|
Columbia Managed Assets Rollforward
|
Years Ended December 31,
|
||||||
2014
|
|
2013
|
|||||
(in billions)
|
|||||||
Retail Funds
|
|
|
|
|
|
||
Beginning assets
|
$
|
239.4
|
|
|
$
|
216.3
|
|
Mutual fund inflows
|
36.0
|
|
|
38.1
|
|
||
Mutual fund outflows
|
(47.4
|
)
|
|
(50.9
|
)
|
||
Net VP/VIT fund flows
|
(0.9
|
)
|
|
(0.6
|
)
|
||
Net new flows
|
(12.3
|
)
|
|
(13.4
|
)
|
||
Reinvested dividends
|
13.4
|
|
|
9.9
|
|
||
Net flows
|
1.1
|
|
|
(3.5
|
)
|
||
Distributions
|
(15.9
|
)
|
|
(11.5
|
)
|
||
Market appreciation and other
|
13.1
|
|
|
38.1
|
|
||
Total ending assets
|
237.7
|
|
|
239.4
|
|
||
Institutional
|
|
|
|
|
|
||
Beginning assets
|
75.6
|
|
|
72.4
|
|
||
Inflows
|
20.4
|
|
|
21.6
|
|
||
Outflows
|
(20.2
|
)
|
|
(26.1
|
)
|
||
Net flows
|
0.2
|
|
|
(4.5
|
)
|
||
Market appreciation and other
|
4.9
|
|
|
7.7
|
|
||
Total ending assets
|
80.7
|
|
|
75.6
|
|
||
Alternative
|
|
|
|
|
|
||
Beginning assets
|
5.6
|
|
|
5.7
|
|
||
Inflows
|
1.7
|
|
|
1.3
|
|
||
Outflows
|
(0.7
|
)
|
|
(1.6
|
)
|
||
Net flows
|
1.0
|
|
|
(0.3
|
)
|
||
Market appreciation and other
|
0.1
|
|
|
0.2
|
|
||
Total ending assets
|
6.7
|
|
|
5.6
|
|
||
Affiliated General Account Assets
|
36.1
|
|
|
36.1
|
|
||
Total Columbia managed assets
|
$
|
361.2
|
|
|
$
|
356.7
|
|
Total Columbia net flows
|
$
|
2.3
|
|
|
$
|
(8.3
|
)
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
|
2014
|
|
2013
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Management and financial advice fees
|
$
|
2,791
|
|
|
$
|
2,643
|
|
|
$
|
148
|
|
|
6
|
%
|
Distribution fees
|
493
|
|
|
469
|
|
|
24
|
|
|
5
|
|
|||
Net investment income
|
30
|
|
|
54
|
|
|
(24
|
)
|
|
(44
|
)
|
|||
Other revenues
|
6
|
|
|
5
|
|
|
1
|
|
|
20
|
|
|||
Total revenues
|
3,320
|
|
|
3,171
|
|
|
149
|
|
|
5
|
|
|||
Banking and deposit interest expense
|
—
|
|
|
2
|
|
|
(2
|
)
|
|
NM
|
|
|||
Total net revenues
|
3,320
|
|
|
3,169
|
|
|
151
|
|
|
5
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|||
Distribution expenses
|
1,148
|
|
|
1,112
|
|
|
36
|
|
|
3
|
|
|||
Amortization of deferred acquisition costs
|
15
|
|
|
17
|
|
|
(2
|
)
|
|
(12
|
)
|
|||
Interest and debt expense
|
26
|
|
|
24
|
|
|
2
|
|
|
8
|
|
|||
General and administrative expense
|
1,343
|
|
|
1,325
|
|
|
18
|
|
|
1
|
|
|||
Total expenses
|
2,532
|
|
|
2,478
|
|
|
54
|
|
|
2
|
|
|||
Operating earnings
|
$
|
788
|
|
|
$
|
691
|
|
|
$
|
97
|
|
|
14
|
%
|
NM Not Meaningful.
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
|
2014
|
|
2013
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Management and financial advice fees
|
$
|
756
|
|
|
$
|
709
|
|
|
$
|
47
|
|
|
7
|
%
|
Distribution fees
|
360
|
|
|
339
|
|
|
21
|
|
|
6
|
|
|||
Net investment income
|
941
|
|
|
1,036
|
|
|
(95
|
)
|
|
(9
|
)
|
|||
Premiums
|
109
|
|
|
110
|
|
|
(1
|
)
|
|
(1
|
)
|
|||
Other revenues
|
425
|
|
|
367
|
|
|
58
|
|
|
16
|
|
|||
Total revenues
|
2,591
|
|
|
2,561
|
|
|
30
|
|
|
1
|
|
|||
Banking and deposit interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
2,591
|
|
|
2,561
|
|
|
30
|
|
|
1
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|||
Distribution expenses
|
439
|
|
|
420
|
|
|
19
|
|
|
5
|
|
|||
Interest credited to fixed accounts
|
556
|
|
|
653
|
|
|
(97
|
)
|
|
(15
|
)
|
|||
Benefits, claims, losses and settlement expenses
|
463
|
|
|
498
|
|
|
(35
|
)
|
|
(7
|
)
|
|||
Amortization of deferred acquisition costs
|
235
|
|
|
111
|
|
|
124
|
|
|
NM
|
|
|||
Interest and debt expense
|
38
|
|
|
37
|
|
|
1
|
|
|
3
|
|
|||
General and administrative expense
|
227
|
|
|
213
|
|
|
14
|
|
|
7
|
|
|||
Total expenses
|
1,958
|
|
|
1,932
|
|
|
26
|
|
|
1
|
|
|||
Operating earnings
|
$
|
633
|
|
|
$
|
629
|
|
|
$
|
4
|
|
|
1
|
%
|
NM Not Meaningful.
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
|
2014
|
|
2013
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Management and financial advice fees
|
$
|
59
|
|
|
$
|
58
|
|
|
$
|
1
|
|
|
2
|
%
|
Distribution fees
|
92
|
|
|
91
|
|
|
1
|
|
|
1
|
|
|||
Net investment income
|
447
|
|
|
439
|
|
|
8
|
|
|
2
|
|
|||
Premiums
|
1,292
|
|
|
1,188
|
|
|
104
|
|
|
9
|
|
|||
Other revenues
|
397
|
|
|
410
|
|
|
(13
|
)
|
|
(3
|
)
|
|||
Total revenues
|
2,287
|
|
|
2,186
|
|
|
101
|
|
|
5
|
|
|||
Banking and deposit interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
2,287
|
|
|
2,186
|
|
|
101
|
|
|
5
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|||
Distribution expenses
|
61
|
|
|
62
|
|
|
(1
|
)
|
|
(2
|
)
|
|||
Interest credited to fixed accounts
|
153
|
|
|
145
|
|
|
8
|
|
|
6
|
|
|||
Benefits, claims, losses and settlement expenses
|
1,416
|
|
|
1,252
|
|
|
164
|
|
|
13
|
|
|||
Amortization of deferred acquisition costs
|
135
|
|
|
118
|
|
|
17
|
|
|
14
|
|
|||
Interest and debt expense
|
28
|
|
|
25
|
|
|
3
|
|
|
12
|
|
|||
General and administrative expense
|
248
|
|
|
248
|
|
|
—
|
|
|
—
|
|
|||
Total expenses
|
2,041
|
|
|
1,850
|
|
|
191
|
|
|
10
|
|
|||
Operating earnings
|
$
|
246
|
|
|
$
|
336
|
|
|
$
|
(90
|
)
|
|
(27
|
)%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
|
2014
|
|
2013
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Distribution fees
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
—
|
%
|
Net investment income (loss)
|
(6
|
)
|
|
8
|
|
|
(14
|
)
|
|
NM
|
|
|||
Other revenues
|
9
|
|
|
6
|
|
|
3
|
|
|
50
|
|
|||
Total revenues
|
4
|
|
|
15
|
|
|
(11
|
)
|
|
(73
|
)
|
|||
Banking and deposit interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
4
|
|
|
15
|
|
|
(11
|
)
|
|
(73
|
)
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
||||
Distribution expenses
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||
Interest and debt expense
|
21
|
|
|
33
|
|
|
(12
|
)
|
|
(36
|
)
|
|||
General and administrative expense
|
212
|
|
|
210
|
|
|
2
|
|
|
1
|
|
|||
Total expenses
|
234
|
|
|
244
|
|
|
(10
|
)
|
|
(4
|
)
|
|||
Operating loss
|
$
|
(230
|
)
|
|
$
|
(229
|
)
|
|
$
|
(1
|
)
|
|
—
|
%
|
NM Not Meaningful.
|
|
Years Ended December 31,
|
|
|
|||||||||||
|
2013
|
|
2012
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|||||||
Management and financial advice fees
|
$
|
5,253
|
|
|
$
|
4,692
|
|
|
$
|
561
|
|
|
12
|
%
|
Distribution fees
|
1,771
|
|
|
1,616
|
|
|
155
|
|
|
10
|
|
|||
Net investment income
|
1,889
|
|
|
1,933
|
|
|
(44
|
)
|
|
(2
|
)
|
|||
Premiums
|
1,282
|
|
|
1,223
|
|
|
59
|
|
|
5
|
|
|||
Other revenues
|
1,035
|
|
|
795
|
|
|
240
|
|
|
30
|
|
|||
Total revenues
|
11,230
|
|
|
10,259
|
|
|
971
|
|
|
9
|
|
|||
Banking and deposit interest expense
|
31
|
|
|
42
|
|
|
(11
|
)
|
|
(26
|
)
|
|||
Total net revenues
|
11,199
|
|
|
10,217
|
|
|
982
|
|
|
10
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|||
Distribution expenses
|
2,925
|
|
|
2,591
|
|
|
334
|
|
|
13
|
|
|||
Interest credited to fixed accounts
|
806
|
|
|
831
|
|
|
(25
|
)
|
|
(3
|
)
|
|||
Benefits, claims, losses and settlement expenses
|
1,954
|
|
|
1,899
|
|
|
55
|
|
|
3
|
|
|||
Amortization of deferred acquisition costs
|
207
|
|
|
286
|
|
|
(79
|
)
|
|
(28
|
)
|
|||
Interest and debt expense
|
281
|
|
|
276
|
|
|
5
|
|
|
2
|
|
|||
General and administrative expense
|
3,056
|
|
|
3,096
|
|
|
(40
|
)
|
|
(1
|
)
|
|||
Total expenses
|
9,229
|
|
|
8,979
|
|
|
250
|
|
|
3
|
|
|||
Income from continuing operations before income tax provision
|
1,970
|
|
|
1,238
|
|
|
732
|
|
|
59
|
|
|||
Income tax provision
|
492
|
|
|
335
|
|
|
157
|
|
|
47
|
|
|||
Income from continuing operations
|
1,478
|
|
|
903
|
|
|
575
|
|
|
64
|
|
|||
Loss from discontinued operations, net of tax
|
(3
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
(50
|
)
|
|||
Net income
|
1,475
|
|
|
901
|
|
|
574
|
|
|
64
|
|
|||
Less: Net income (loss) attributable to noncontrolling interests
|
141
|
|
|
(128
|
)
|
|
269
|
|
|
NM
|
|
|||
Net income attributable to Ameriprise Financial
|
$
|
1,334
|
|
|
$
|
1,029
|
|
|
$
|
305
|
|
|
30
|
%
|
NM Not Meaningful.
|
•
|
The year ended December 31, 2013 included a $5 million benefit from unlocking, which included a $22 million benefit related to the market impact on variable annuity guaranteed benefits, and the prior year included a $28 million benefit, which included an $18 million expense related to the market impact on variable annuity guaranteed benefits. The market impact on variable annuity guaranteed benefits is discussed below. The impact from unlocking for the year ended December 31, 2013 reflected expected higher interest rates and changes in assumed policyholder behavior, partially offset by the impact of variable annuity model changes. The impact from unlocking for the prior year primarily reflected a $50 million benefit from an adjustment to the model which values the reserves related to living benefit guarantees primarily attributable to prior periods, partially offset by lower bond fund returns related to the life contingent benefits associated with GMWB.
|
•
|
An increase in expenses related to our auto and home business driven by higher claim and claim adjustment expense reflecting the impact of growth in exposures due to a 29% increase in gross new policies and higher loss cost trends, partially offset by lower catastrophe losses. Auto and home catastrophe losses were $42 million in 2013 compared to $51 million in the prior year, including $20 million from Superstorm Sandy.
|
•
|
An increase in expenses of approximately $40 million related to higher reserve funding driven by the impact of higher fees from prior year sales with variable annuity guarantees.
|
•
|
An $8 million increase in disability income reserves in the second quarter of 2013 related to prior periods and a $9 million benefit from a life insurance reserve release in the prior year.
|
•
|
A $29 million decrease in expenses from policyholder movement of investments in Portfolio Navigator funds under certain in-force variable annuities with living benefit guarantees to the Portfolio Stabilizer funds. See additional discussion in the Annuities segment.
|
•
|
A $141 million increase in expense compared to the prior year from the unhedged nonperformance credit spread risk adjustment on variable annuity guaranteed benefits.
|
•
|
A $271 million decrease in expense from other market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks and the related DSIC amortization. This decrease was the result of a favorable $916 million change in the market impact on variable annuity guaranteed living benefits reserves, partially offset by an unfavorable $635 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits and an unfavorable $10 million DSIC offset. The main market drivers contributing to these changes are summarized below:
|
•
|
Interest rates were up in 2013 and down in 2012 resulting in a favorable change in the variable annuity guaranteed benefits liability, partially offset by an unfavorable change in the related hedge assets.
|
•
|
Equity market and volatility impacts on the hedge assets resulted in lower expenses in 2013 compared to 2012. This benefit was partially offset by higher expenses in 2013 compared to 2012 due to equity market and volatility impacts on the corresponding variable annuity guaranteed living benefits liability.
|
•
|
Other unhedged items including the difference between the assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and various behavioral items were a net unfavorable impact compared to the prior year.
|
•
|
The year ended December 31, 2013 included a $79 million benefit from unlocking, which included a $5 million expense related to the DAC offset to the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC amortization), primarily driven by the impact of expected higher interest rates and changes in assumed policyholder behavior. The prior year included a $23 million expense from unlocking, which included a $4 million benefit related to the DAC offset to the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC amortization), primarily reflecting spread compression and lower bond fund growth rates, partially offset by a benefit from improved persistency and lowered mortality assumption. The impact of unlocking for the prior year included a $9 million expense for the DAC offset to the adjustment to the model which values the reserves related to living benefit guarantees primarily attributable to prior periods.
|
•
|
The DAC offset to the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC amortization) was a benefit of $34 million for the year ended December 31, 2013 compared to a benefit of $69 million in the prior year.
|
|
Years Ended December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(in millions)
|
||||||
Advice & Wealth Management
|
|
|
|
|
|
||
Net revenues
|
$
|
4,295
|
|
|
$
|
3,873
|
|
Expenses
|
3,703
|
|
|
3,439
|
|
||
Operating earnings
|
$
|
592
|
|
|
$
|
434
|
|
Asset Management
|
|
|
|
|
|
||
Net revenues
|
$
|
3,169
|
|
|
$
|
2,891
|
|
Expenses
|
2,478
|
|
|
2,356
|
|
||
Operating earnings
|
$
|
691
|
|
|
$
|
535
|
|
Annuities
|
|
|
|
|
|
||
Net revenues
|
$
|
2,561
|
|
|
$
|
2,519
|
|
Expenses
|
1,932
|
|
|
1,989
|
|
||
Operating earnings
|
$
|
629
|
|
|
$
|
530
|
|
Protection
|
|
|
|
|
|
||
Net revenues
|
$
|
2,186
|
|
|
$
|
2,087
|
|
Expenses
|
1,850
|
|
|
1,714
|
|
||
Operating earnings
|
$
|
336
|
|
|
$
|
373
|
|
Corporate & Other
|
|
|
|
|
|
||
Net revenues
|
$
|
15
|
|
|
$
|
26
|
|
Expenses
|
244
|
|
|
203
|
|
||
Operating loss
|
$
|
(229
|
)
|
|
$
|
(177
|
)
|
|
|
Years Ended December 31,
|
||||||||||||||
|
|
2013
|
|
2012
|
||||||||||||
Segment Pretax Operating Increase (Decrease)
|
|
Annuities
|
|
Protection
|
|
Annuities
|
|
Protection
|
||||||||
|
|
(in millions)
|
||||||||||||||
Other revenues
|
|
$
|
—
|
|
|
$
|
(18
|
)
|
|
$
|
—
|
|
|
$
|
(41
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Benefits, claims, losses and settlement expenses
|
|
21
|
|
|
(4
|
)
|
|
(32
|
)
|
|
(14
|
)
|
||||
Amortization of DAC
|
|
(81
|
)
|
|
(3
|
)
|
|
41
|
|
|
(14
|
)
|
||||
Interest credited to fixed accounts
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||
Total expenses
|
|
(60
|
)
|
|
(7
|
)
|
|
11
|
|
|
(28
|
)
|
||||
Total
|
|
$
|
60
|
|
|
$
|
(11
|
)
|
|
$
|
(11
|
)
|
|
$
|
(13
|
)
|
|
2013
|
|
2012
|
||||
|
(in billions)
|
||||||
Beginning balance
|
$
|
124.6
|
|
|
$
|
103.4
|
|
Net flows
|
13.1
|
|
|
9.6
|
|
||
Market appreciation and other
|
15.8
|
|
|
11.6
|
|
||
Ending balance
|
$
|
153.5
|
|
|
$
|
124.6
|
|
|
|
|
|
||||
Advisory wrap account assets ending balance
(1)
|
$
|
152.6
|
|
|
$
|
124.2
|
|
Average advisory wrap account assets
(2)
|
$
|
138.2
|
|
|
$
|
115.0
|
|
(1)
Advisory wrap account assets represent those assets for which clients receive advisory services and are the primary driver of revenue earned on wrap accounts. Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee.
(2)
Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period.
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
|
2013
|
|
2012
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Management and financial advice fees
|
$
|
2,039
|
|
|
$
|
1,737
|
|
|
$
|
302
|
|
|
17
|
%
|
Distribution fees
|
2,095
|
|
|
1,879
|
|
|
216
|
|
|
11
|
|
|||
Net investment income
|
127
|
|
|
233
|
|
|
(106
|
)
|
|
(45
|
)
|
|||
Other revenues
|
65
|
|
|
64
|
|
|
1
|
|
|
2
|
|
|||
Total revenues
|
4,326
|
|
|
3,913
|
|
|
413
|
|
|
11
|
|
|||
Banking and deposit interest expense
|
31
|
|
|
40
|
|
|
(9
|
)
|
|
(23
|
)
|
|||
Total net revenues
|
4,295
|
|
|
3,873
|
|
|
422
|
|
|
11
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|||
Distribution expenses
|
2,641
|
|
|
2,321
|
|
|
320
|
|
|
14
|
|
|||
Interest and debt expense
|
6
|
|
|
9
|
|
|
(3
|
)
|
|
(33
|
)
|
|||
General and administrative expense
|
1,056
|
|
|
1,109
|
|
|
(53
|
)
|
|
(5
|
)
|
|||
Total expenses
|
3,703
|
|
|
3,439
|
|
|
264
|
|
|
8
|
|
|||
Operating earnings
|
$
|
592
|
|
|
$
|
434
|
|
|
$
|
158
|
|
|
36
|
%
|
|
|
|
|
|
|
|
|
|
Average
(1)
|
|
|
|
|
||||||||||||||||
|
December 31,
|
|
|
|
|
|
December 31,
|
|
|
|
|
||||||||||||||||||
|
2013
|
|
2012
|
|
Change
|
|
2013
|
|
2012
|
|
Change
|
||||||||||||||||||
|
(in billions)
|
||||||||||||||||||||||||||||
Columbia managed assets
|
$
|
356.7
|
|
|
$
|
330.4
|
|
|
$
|
26.3
|
|
|
8
|
%
|
|
$
|
342.9
|
|
|
$
|
335.8
|
|
|
$
|
7.1
|
|
|
2
|
%
|
Threadneedle managed assets
|
147.4
|
|
|
127.8
|
|
|
19.6
|
|
|
15
|
|
|
133.3
|
|
|
120.9
|
|
|
12.4
|
|
|
10
|
|
||||||
Less: Sub-advised eliminations
|
(3.3
|
)
|
|
(2.8
|
)
|
|
(0.5
|
)
|
|
(18
|
)
|
|
(2.9
|
)
|
|
(3.4
|
)
|
|
0.5
|
|
|
15
|
|
||||||
Total managed assets
|
$
|
500.8
|
|
|
$
|
455.4
|
|
|
$
|
45.4
|
|
|
10
|
%
|
|
$
|
473.3
|
|
|
$
|
453.3
|
|
|
$
|
20.0
|
|
|
4
|
%
|
(1)
Average ending balances are calculated using an average of prior period’s ending balance and all months in the current period.
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
|
2013
|
|
2012
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Management and financial advice fees
|
$
|
2,643
|
|
|
$
|
2,420
|
|
|
$
|
223
|
|
|
9
|
%
|
Distribution fees
|
469
|
|
|
442
|
|
|
27
|
|
|
6
|
|
|||
Net investment income
|
54
|
|
|
19
|
|
|
35
|
|
|
NM
|
|
|||
Other revenues
|
5
|
|
|
12
|
|
|
(7
|
)
|
|
(58
|
)
|
|||
Total revenues
|
3,171
|
|
|
2,893
|
|
|
278
|
|
|
10
|
|
|||
Banking and deposit interest expense
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
3,169
|
|
|
2,891
|
|
|
278
|
|
|
10
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|||
Distribution expenses
|
1,112
|
|
|
1,029
|
|
|
83
|
|
|
8
|
|
|||
Amortization of deferred acquisition costs
|
17
|
|
|
16
|
|
|
1
|
|
|
6
|
|
|||
Interest and debt expense
|
24
|
|
|
22
|
|
|
2
|
|
|
9
|
|
|||
General and administrative expense
|
1,325
|
|
|
1,289
|
|
|
36
|
|
|
3
|
|
|||
Total expenses
|
2,478
|
|
|
2,356
|
|
|
122
|
|
|
5
|
|
|||
Operating earnings
|
$
|
691
|
|
|
$
|
535
|
|
|
$
|
156
|
|
|
29
|
%
|
NM Not Meaningful.
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
|
2013
|
|
2012
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Management and financial advice fees
|
$
|
709
|
|
|
$
|
648
|
|
|
$
|
61
|
|
|
9
|
%
|
Distribution fees
|
339
|
|
|
317
|
|
|
22
|
|
|
7
|
|
|||
Net investment income
|
1,036
|
|
|
1,127
|
|
|
(91
|
)
|
|
(8
|
)
|
|||
Premiums
|
110
|
|
|
118
|
|
|
(8
|
)
|
|
(7
|
)
|
|||
Other revenues
|
367
|
|
|
309
|
|
|
58
|
|
|
19
|
|
|||
Total revenues
|
2,561
|
|
|
2,519
|
|
|
42
|
|
|
2
|
|
|||
Banking and deposit interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
2,561
|
|
|
2,519
|
|
|
42
|
|
|
2
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|||
Distribution expenses
|
420
|
|
|
381
|
|
|
39
|
|
|
10
|
|
|||
Interest credited to fixed accounts
|
653
|
|
|
688
|
|
|
(35
|
)
|
|
(5
|
)
|
|||
Benefits, claims, losses and settlement expenses
|
498
|
|
|
419
|
|
|
79
|
|
|
19
|
|
|||
Amortization of deferred acquisition costs
|
111
|
|
|
229
|
|
|
(118
|
)
|
|
(52
|
)
|
|||
Interest and debt expense
|
37
|
|
|
34
|
|
|
3
|
|
|
9
|
|
|||
General and administrative expense
|
213
|
|
|
238
|
|
|
(25
|
)
|
|
(11
|
)
|
|||
Total expenses
|
1,932
|
|
|
1,989
|
|
|
(57
|
)
|
|
(3
|
)
|
|||
Operating earnings
|
$
|
629
|
|
|
$
|
530
|
|
|
$
|
99
|
|
|
19
|
%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
|
2013
|
|
2012
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Management and financial advice fees
|
$
|
58
|
|
|
$
|
55
|
|
|
$
|
3
|
|
|
5
|
%
|
Distribution fees
|
91
|
|
|
91
|
|
|
—
|
|
|
—
|
|
|||
Net investment income
|
439
|
|
|
429
|
|
|
10
|
|
|
2
|
|
|||
Premiums
|
1,188
|
|
|
1,121
|
|
|
67
|
|
|
6
|
|
|||
Other revenues
|
410
|
|
|
392
|
|
|
18
|
|
|
5
|
|
|||
Total revenues
|
2,186
|
|
|
2,088
|
|
|
98
|
|
|
5
|
|
|||
Banking and deposit interest expense
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|||
Total net revenues
|
2,186
|
|
|
2,087
|
|
|
99
|
|
|
5
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|||
Distribution expenses
|
62
|
|
|
53
|
|
|
9
|
|
|
17
|
|
|||
Interest credited to fixed accounts
|
145
|
|
|
143
|
|
|
2
|
|
|
1
|
|
|||
Benefits, claims, losses and settlement expenses
|
1,252
|
|
|
1,146
|
|
|
106
|
|
|
9
|
|
|||
Amortization of deferred acquisition costs
|
118
|
|
|
110
|
|
|
8
|
|
|
7
|
|
|||
Interest and debt expense
|
25
|
|
|
24
|
|
|
1
|
|
|
4
|
|
|||
General and administrative expense
|
248
|
|
|
238
|
|
|
10
|
|
|
4
|
|
|||
Total expenses
|
1,850
|
|
|
1,714
|
|
|
136
|
|
|
8
|
|
|||
Operating earnings
|
$
|
336
|
|
|
$
|
373
|
|
|
$
|
(37
|
)
|
|
(10
|
)%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
|
2013
|
|
2012
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Management and financial advice fees
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
1
|
|
|
NM
|
|
Distribution fees
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
%
|
|||
Net investment income
|
8
|
|
|
15
|
|
|
(7
|
)
|
|
(47
|
)
|
|||
Other revenues
|
6
|
|
|
10
|
|
|
(4
|
)
|
|
(40
|
)
|
|||
Total revenues
|
15
|
|
|
25
|
|
|
(10
|
)
|
|
(40
|
)
|
|||
Banking and deposit interest expense
|
—
|
|
|
(1
|
)
|
|
1
|
|
|
NM
|
|
|||
Total net revenues
|
15
|
|
|
26
|
|
|
(11
|
)
|
|
(42
|
)
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
||||
Distribution expenses
|
1
|
|
|
—
|
|
|
1
|
|
|
NM
|
|
|||
Interest and debt expense
|
33
|
|
|
7
|
|
|
26
|
|
|
NM
|
|
|||
General and administrative expense
|
210
|
|
|
196
|
|
|
14
|
|
|
7
|
|
|||
Total expenses
|
244
|
|
|
203
|
|
|
41
|
|
|
20
|
|
|||
Operating loss
|
$
|
(229
|
)
|
|
$
|
(177
|
)
|
|
$
|
(52
|
)
|
|
(29
|
)%
|
NM Not Meaningful.
|
|
Actual Capital
|
|
Regulatory
Capital Requirements
|
||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in millions)
|
||||||||||||||
RiverSource Life
(1)(2)
|
$
|
3,614
|
|
|
$
|
2,747
|
|
|
$
|
595
|
|
|
$
|
591
|
|
RiverSource Life of NY
(1)(2)
|
312
|
|
|
251
|
|
|
59
|
|
|
49
|
|
||||
IDS Property Casualty
(1)(3)
|
560
|
|
|
531
|
|
|
200
|
|
|
177
|
|
||||
Ameriprise Insurance Company
(1)(3)
|
45
|
|
|
44
|
|
|
2
|
|
|
2
|
|
||||
ACC
(4)(5)
|
248
|
|
|
230
|
|
|
226
|
|
|
215
|
|
||||
Threadneedle
(6)
|
221
|
|
|
257
|
|
|
199
|
|
|
158
|
|
||||
Ameriprise National Trust Bank
(7)
|
21
|
|
|
19
|
|
|
10
|
|
|
10
|
|
||||
AFSI
(3)(4)
|
93
|
|
|
78
|
|
|
#
|
|
|
2
|
|
||||
Ameriprise Captive Insurance Company
(3)
|
61
|
|
|
62
|
|
|
10
|
|
|
11
|
|
||||
Ameriprise Trust Company
(3)
|
26
|
|
|
58
|
|
|
24
|
|
|
56
|
|
||||
AEIS
(3)(4)
|
117
|
|
|
100
|
|
|
49
|
|
|
44
|
|
||||
RiverSource Distributors, Inc.
(3)(4)
|
13
|
|
|
23
|
|
|
#
|
|
|
#
|
|
||||
Columbia Management Investment Distributors, Inc.
(3)(4)
|
18
|
|
|
23
|
|
|
#
|
|
|
#
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
(in millions)
|
||||||||||
RiverSource Life
(1)
|
$
|
811
|
|
|
$
|
580
|
|
|
$
|
268
|
|
ACC
(2)
|
26
|
|
|
15
|
|
|
—
|
|
|||
Columbia Management Investment Advisers, LLC
|
553
|
|
|
506
|
|
|
255
|
|
|||
Columbia Management Investment Services Corporation
|
7
|
|
|
14
|
|
|
9
|
|
|||
Threadneedle
|
175
|
|
|
174
|
|
|
120
|
|
|||
Ameriprise Trust Company
|
36
|
|
|
2
|
|
|
—
|
|
|||
IDS Property Casualty
(3)
|
53
|
|
|
22
|
|
|
38
|
|
|||
Ameriprise Captive Insurance Company
|
65
|
|
|
50
|
|
|
47
|
|
|||
RiverSource Distributors, Inc.
|
23
|
|
|
23
|
|
|
26
|
|
|||
AMPF Holding Corporation
|
680
|
|
|
473
|
|
|
461
|
|
|||
Total dividend capacity
|
$
|
2,429
|
|
|
$
|
1,859
|
|
|
$
|
1,224
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
(in millions)
|
||||||||||
RiverSource Life
|
$
|
900
|
|
|
$
|
800
|
|
|
$
|
865
|
|
Ameriprise Bank, FSB
(1)
|
8
|
|
|
130
|
|
|
213
|
|
|||
ACC
|
5
|
|
|
(10
|
)
|
|
(26
|
)
|
|||
Columbia Management Investment Advisers, LLC
|
362
|
|
|
280
|
|
|
170
|
|
|||
Columbia Management Investment Services Corporation
|
—
|
|
|
10
|
|
|
—
|
|
|||
Threadneedle
(2)
|
—
|
|
|
73
|
|
|
94
|
|
|||
Ameriprise Trust Company
|
34
|
|
|
(8
|
)
|
|
(4
|
)
|
|||
IDS Property Casualty
(3)
|
—
|
|
|
(50
|
)
|
|
—
|
|
|||
Ameriprise Holdings, Inc.
|
—
|
|
|
—
|
|
|
23
|
|
|||
Ameriprise Advisor Capital, LLC
|
(31
|
)
|
|
(37
|
)
|
|
(50
|
)
|
|||
RiverSource Distributors, Inc.
|
10
|
|
|
—
|
|
|
2
|
|
|||
Ameriprise Captive Insurance Company
|
15
|
|
|
—
|
|
|
—
|
|
|||
AMPF Holding Corporation
|
519
|
|
|
340
|
|
|
295
|
|
|||
Total
|
$
|
1,822
|
|
|
$
|
1,528
|
|
|
$
|
1,582
|
|
|
|
Total
|
|
2015
|
|
2016 - 2017
|
|
2018 - 2019
|
|
2020 and Thereafter
|
||||||||||
|
|
(in millions)
|
||||||||||||||||||
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt
(1)
|
|
$
|
2,994
|
|
|
$
|
350
|
|
|
$
|
—
|
|
|
$
|
300
|
|
|
$
|
2,344
|
|
Insurance and annuities
(2)
|
|
40,447
|
|
|
3,570
|
|
|
5,080
|
|
|
4,284
|
|
|
27,513
|
|
|||||
Investment certificates
(3)
|
|
4,207
|
|
|
3,961
|
|
|
246
|
|
|
—
|
|
|
—
|
|
|||||
Deferred premium options
(4)
|
|
1,924
|
|
|
393
|
|
|
604
|
|
|
434
|
|
|
493
|
|
|||||
Affordable housing partnerships
(5)
|
|
124
|
|
|
70
|
|
|
47
|
|
|
2
|
|
|
5
|
|
|||||
Off-Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Lease obligations
|
|
423
|
|
|
83
|
|
|
136
|
|
|
105
|
|
|
99
|
|
|||||
Purchase obligations
(6)
|
|
1,102
|
|
|
251
|
|
|
388
|
|
|
290
|
|
|
173
|
|
|||||
Interest on long-term debt
(7)
|
|
1,923
|
|
|
150
|
|
|
264
|
|
|
253
|
|
|
1,256
|
|
|||||
Total
|
|
$
|
53,144
|
|
|
$
|
8,828
|
|
|
$
|
6,765
|
|
|
$
|
5,668
|
|
|
$
|
31,883
|
|
•
|
statements of the Company’s plans, intentions, positioning, expectations, objectives or goals, including those relating to asset flows, mass affluent and affluent client acquisition strategy, client retention and growth of our client base, financial advisor productivity, retention, recruiting and enrollments, the introduction, cessation, terms or pricing of new or existing products and services, acquisition integration, benefits and claims expenses, general and administrative costs, consolidated tax rate, return of capital to shareholders, debt repayment and excess capital position and financial flexibility to capture additional growth opportunities;
|
•
|
other statements about future economic performance, the performance of equity markets and interest rate variations and the economic performance of the United States and of global markets; and
|
•
|
statements of assumptions underlying such statements.
|
•
|
conditions in the interest rate, credit default, equity market and foreign exchange environments, including changes in valuations, liquidity and volatility;
|
•
|
changes in and the adoption of relevant accounting standards and securities rating agency standards and processes, as well as changes in the litigation and regulatory environment, including ongoing legal proceedings and regulatory actions, the frequency and extent of legal claims threatened or initiated by clients, other persons and regulators, and developments in regulation and legislation, including the rules and regulations implemented or to be implemented in connection with the Dodd-Frank Wall Street Reform and Consumer Protection Act;
|
•
|
investment management performance and distribution partner and consumer acceptance of the Company’s products;
|
•
|
effects of competition in the financial services industry, including pricing pressure, the introduction of new products and services and changes in product distribution mix and distribution channels;
|
•
|
changes to the Company’s reputation that may arise from employee or advisor misconduct, legal or regulatory actions, perceptions of the financial services industry generally, improper management of conflicts of interest or otherwise;
|
•
|
the Company’s capital structure, including indebtedness, limitations on subsidiaries to pay dividends, and the extent, manner, terms and timing of any share or debt repurchases management may effect as well as the opinions of rating agencies and other analysts and the reactions of market participants or the Company’s regulators, advisors, distribution partners or customers in response to any change or prospect of change in any such opinion;
|
•
|
changes to the availability and cost of liquidity and the Company’s credit capacity that may arise due to shifts in market conditions, the Company’s credit ratings and the overall availability of credit;
|
•
|
risks of default, capacity constraint or repricing by issuers or guarantors of investments the Company owns or by counterparties to hedge, derivative, insurance or reinsurance arrangements or by manufacturers of products the Company distributes, experience deviations from the Company’s assumptions regarding such risks, the evaluations or the prospect of changes in
|
•
|
experience deviations from the Company’s assumptions regarding morbidity, mortality and persistency in certain annuity and insurance products, or from assumptions regarding market returns assumed in valuing or unlocking DAC and DSIC or market volatility underlying the Company’s valuation and hedging of guaranteed benefit annuity riders, or from assumptions regarding interest rates assumed in the Company's loss recognition testing of its long term care business, or from assumptions regarding anticipated claims and losses relating to the Company’s automobile and home insurance products;
|
•
|
changes in capital requirements that may be indicated, required or advised by regulators or rating agencies;
|
•
|
the impacts of the Company’s efforts to improve distribution economics and to grow third-party distribution of its products;
|
•
|
the ability to pursue and complete strategic transactions and initiatives, including acquisitions, divestitures, restructurings, joint ventures and the development of new products and services;
|
•
|
the ability to realize the financial, operating and business fundamental benefits of strategic transactions and initiatives the Company has completed, is pursuing or may pursue in the future, which may be impacted by the ability to obtain regulatory approvals, the ability to effectively manage related expenses and by market, business partner and consumer reactions to such strategic transactions and initiatives;
|
•
|
the ability and timing to realize savings and other benefits from re-engineering and tax planning;
|
•
|
interruptions or other failures in the Company’s communications, technology and other operating systems, including errors or failures caused by third party service providers, interference or failures caused by third party attacks on the Company’s systems, or the failure to safeguard the privacy or confidentiality of sensitive information and data on such systems; and
|
•
|
general economic and political factors, including consumer confidence in the economy and the financial industry, the ability and inclination of consumers generally to invest as well as their ability and inclination to invest in financial instruments and products other than cash and cash equivalents, the costs of products and services the Company consumes in the conduct of its business, and applicable legislation and regulation and changes therein, including tax laws, tax treaties, fiscal and central government treasury policy, and policies regarding the financial services industry and publicly-held firms, and regulatory rulings and pronouncements.
|
|
|
Equity Price Exposure to Pretax Income
|
||||||||||
Equity Price Decline 10%
|
|
Before Hedge Impact
|
|
Hedge Impact
|
|
Net Impact
|
||||||
|
|
(in millions)
|
||||||||||
Asset-based management and distribution fees
(1)
|
|
$
|
(254
|
)
|
|
$
|
4
|
|
|
$
|
(250
|
)
|
DAC and DSIC amortization
(2)(3)
|
|
(100
|
)
|
|
—
|
|
|
(100
|
)
|
|||
Variable annuity riders:
|
|
|
|
|
|
|
|
|
|
|||
GMDB and GMIB
(3)
|
|
(103
|
)
|
|
—
|
|
|
(103
|
)
|
|||
GMWB
|
|
(239
|
)
|
|
236
|
|
|
(3
|
)
|
|||
GMAB
|
|
(36
|
)
|
|
34
|
|
|
(2
|
)
|
|||
DAC and DSIC amortization
(4)
|
|
N/A
|
|
|
N/A
|
|
|
8
|
|
|||
Total variable annuity riders
|
|
(378
|
)
|
|
270
|
|
|
(100
|
)
|
|||
Macro hedge program
(5)
|
|
—
|
|
|
19
|
|
|
19
|
|
|||
Equity indexed annuities
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|||
Certificates
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|||
Indexed universal life insurance
|
|
18
|
|
|
(22
|
)
|
|
(4
|
)
|
|||
Total
|
|
$
|
(711
|
)
|
|
$
|
268
|
|
|
$
|
(435
|
)
|
|
|
Interest Rate Exposure to Pretax Income
|
||||||||||
Interest Rate Increase 100 Basis Points
|
|
Before Hedge Impact
|
|
Hedge Impact
|
|
Net Impact
|
||||||
|
|
(in millions)
|
||||||||||
Asset-based management and distribution fees
(1)
|
|
$
|
(44
|
)
|
|
$
|
—
|
|
|
$
|
(44
|
)
|
Variable annuity riders:
|
|
|
|
|
|
|
|
|
|
|||
GMDB and GMIB
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
GMWB
|
|
826
|
|
|
(898
|
)
|
|
(72
|
)
|
|||
GMAB
|
|
28
|
|
|
(30
|
)
|
|
(2
|
)
|
|||
DAC and DSIC amortization
(4)
|
|
N/A
|
|
|
N/A
|
|
|
14
|
|
|||
Total variable annuity riders
|
|
854
|
|
|
(928
|
)
|
|
(60
|
)
|
|||
Macro hedge program
(5)
|
|
—
|
|
|
(31
|
)
|
|
(31
|
)
|
|||
Fixed annuities, fixed insurance and fixed portion of variable annuities and variable insurance products
|
|
49
|
|
|
—
|
|
|
49
|
|
|||
Brokerage client cash balances
|
|
138
|
|
|
—
|
|
|
138
|
|
|||
Certificates
|
|
2
|
|
|
—
|
|
|
2
|
|
|||
Indexed universal life insurance
|
|
34
|
|
|
1
|
|
|
35
|
|
|||
Total
|
|
$
|
1,033
|
|
|
$
|
(958
|
)
|
|
$
|
89
|
|
|
Account Values with Crediting Rates
|
||||||||||||||||||||||
Range of Guaranteed
Minimum Crediting Rates |
At Guaranteed Minimum
|
|
1-49 bps above Guaranteed Minimum
|
|
50-99 bps above Guaranteed Minimum
|
|
100-150 bps above Guaranteed Minimum
|
|
Greater Than 150 bps above Guaranteed Minimum
|
|
Total
|
||||||||||||
(in billions, except percentages)
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1% - 1.99%
|
$
|
0.3
|
|
|
$
|
3.1
|
|
|
$
|
0.4
|
|
|
$
|
0.2
|
|
|
$
|
0.1
|
|
|
$
|
4.1
|
|
2% - 2.99%
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
||||||
3% - 3.99%
|
9.3
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.4
|
|
||||||
4% - 5.00%
|
5.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.6
|
|
||||||
Total
|
$
|
15.7
|
|
|
$
|
3.2
|
|
|
$
|
0.4
|
|
|
$
|
0.2
|
|
|
$
|
0.1
|
|
|
$
|
19.6
|
|
Percentage of Account Values
That Reset In: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Next 12 months
(1)
|
99
|
%
|
|
96
|
%
|
|
34
|
%
|
|
42
|
%
|
|
93
|
%
|
|
97
|
%
|
||||||
> 12 months to 24 months
(2)
|
—
|
|
|
1
|
|
|
28
|
|
|
25
|
|
|
7
|
|
|
1
|
|
||||||
> 24 months
(2)
|
1
|
|
|
3
|
|
|
38
|
|
|
33
|
|
|
—
|
|
|
2
|
|
||||||
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Report of Independent Registered Public Accounting Firm
|
99
|
|
Consolidated Statements of Operations — Years ended December 31, 2014, 2013 and 2012
|
100
|
|
Consolidated Statements of Comprehensive Income — Years ended December 31, 2014, 2013 and 2012
|
101
|
|
Consolidated Balance Sheets — December 31, 2014 and 2013
|
102
|
|
Consolidated Statements of Equity — Years ended December 31, 2014, 2013 and 2012
|
103
|
|
Consolidated Statements of Cash Flows — Years ended December 31, 2014, 2013 and 2012
|
104
|
|
Notes to Consolidated Financial Statements
|
106
|
|
•
|
If the VIE is a registered money market fund, or is an investment company, or has the financial characteristics of an investment company, and the following are true:
|
(i)
|
the reporting entity does not have an explicit or implicit obligation to fund the investment company’s losses; and
|
(ii)
|
the investment company is not a securitization entity, asset backed financing entity, or an entity previously considered a qualifying special purpose entity,
|
•
|
If the VIE does not meet the criteria above, then the VIE will be consolidated by the reporting entity that determines it has both:
|
(i)
|
the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and
|
(ii)
|
the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE
|
|
December 31, 2014
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate debt securities
|
$
|
—
|
|
|
$
|
171
|
|
|
$
|
—
|
|
|
$
|
171
|
|
Common stocks
|
130
|
|
|
40
|
|
|
7
|
|
|
177
|
|
||||
Other investments
|
4
|
|
|
25
|
|
|
—
|
|
|
29
|
|
||||
Syndicated loans
|
—
|
|
|
5,287
|
|
|
484
|
|
|
5,771
|
|
||||
Total investments
|
134
|
|
|
5,523
|
|
|
491
|
|
|
6,148
|
|
||||
Receivables
|
—
|
|
|
49
|
|
|
—
|
|
|
49
|
|
||||
Other assets
|
—
|
|
|
1
|
|
|
1,935
|
|
|
1,936
|
|
||||
Total assets at fair value
|
$
|
134
|
|
|
$
|
5,573
|
|
|
$
|
2,426
|
|
|
$
|
8,133
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,030
|
|
|
$
|
6,030
|
|
Other liabilities
|
—
|
|
|
193
|
|
|
—
|
|
|
193
|
|
||||
Total liabilities at fair value
|
$
|
—
|
|
|
$
|
193
|
|
|
$
|
6,030
|
|
|
$
|
6,223
|
|
|
December 31, 2013
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate debt securities
|
$
|
—
|
|
|
$
|
200
|
|
|
$
|
2
|
|
|
$
|
202
|
|
Common stocks
|
147
|
|
|
31
|
|
|
14
|
|
|
192
|
|
||||
Other investments
|
3
|
|
|
33
|
|
|
—
|
|
|
36
|
|
||||
Syndicated loans
|
—
|
|
|
4,204
|
|
|
368
|
|
|
4,572
|
|
||||
Total investments
|
150
|
|
|
4,468
|
|
|
384
|
|
|
5,002
|
|
||||
Receivables
|
—
|
|
|
32
|
|
|
—
|
|
|
32
|
|
||||
Other assets
|
—
|
|
|
13
|
|
|
1,936
|
|
|
1,949
|
|
||||
Total assets at fair value
|
$
|
150
|
|
|
$
|
4,513
|
|
|
$
|
2,320
|
|
|
$
|
6,983
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,804
|
|
|
$
|
4,804
|
|
Other liabilities
|
—
|
|
|
193
|
|
|
—
|
|
|
193
|
|
||||
Total liabilities at fair value
|
$
|
—
|
|
|
$
|
193
|
|
|
$
|
4,804
|
|
|
$
|
4,997
|
|
|
Corporate Debt Securities
|
|
Common Stocks
|
|
Syndicated Loans
|
|
Other Assets
|
|
Debt
|
|
||||||||||
|
(in millions)
|
|
||||||||||||||||||
Balance, January 1, 2014
|
$
|
2
|
|
|
$
|
14
|
|
|
$
|
368
|
|
|
$
|
1,936
|
|
|
$
|
(4,804
|
)
|
|
Total gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
1
|
|
(1)
|
1
|
|
(1)
|
2
|
|
(1)
|
421
|
|
(2)
|
(34
|
)
|
(1)
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
(175
|
)
|
|
—
|
|
|
|||||
Purchases
|
2
|
|
|
—
|
|
|
417
|
|
|
289
|
|
|
—
|
|
|
|||||
Sales
|
(9
|
)
|
|
(2
|
)
|
|
(42
|
)
|
|
(547
|
)
|
|
—
|
|
|
|||||
Issues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,670
|
)
|
|
|||||
Settlements
|
—
|
|
|
—
|
|
|
(100
|
)
|
|
—
|
|
|
478
|
|
|
|||||
Transfers into Level 3
|
10
|
|
|
13
|
|
|
551
|
|
|
11
|
|
|
—
|
|
|
|||||
Transfers out of Level 3
|
(6
|
)
|
|
(19
|
)
|
|
(712
|
)
|
|
—
|
|
|
—
|
|
|
|||||
Balance, December 31, 2014
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
484
|
|
|
$
|
1,935
|
|
|
$
|
(6,030
|
)
|
|
Changes in unrealized gains (losses) included in
income relating to assets and liabilities held at December 31, 2014 |
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
(1)
|
$
|
362
|
|
(2)
|
$
|
1
|
|
(1)
|
|
Corporate Debt Securities
|
|
Common Stocks
|
|
Syndicated Loans
|
|
Other Assets
|
|
Debt
|
|
||||||||||
|
(in millions)
|
|
||||||||||||||||||
Balance, January 1, 2013
|
$
|
3
|
|
|
$
|
14
|
|
|
$
|
202
|
|
|
$
|
1,214
|
|
|
$
|
(4,450
|
)
|
|
Total gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
—
|
|
|
1
|
|
(1)
|
(1
|
)
|
(1)
|
81
|
|
(2)
|
(53
|
)
|
(1)
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|
|||||
Purchases
|
1
|
|
|
—
|
|
|
417
|
|
|
689
|
|
|
—
|
|
|
|||||
Sales
|
(1
|
)
|
|
(3
|
)
|
|
(63
|
)
|
|
(86
|
)
|
|
—
|
|
|
|||||
Issues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,330
|
)
|
|
|||||
Settlements
|
(1
|
)
|
|
—
|
|
|
(51
|
)
|
|
—
|
|
|
1,029
|
|
|
|||||
Transfers into Level 3
|
—
|
|
|
21
|
|
|
320
|
|
|
8
|
|
|
—
|
|
|
|||||
Transfers out of Level 3
|
—
|
|
|
(19
|
)
|
|
(456
|
)
|
|
(9
|
)
|
|
—
|
|
|
|||||
Balance, December 31, 2013
|
$
|
2
|
|
|
$
|
14
|
|
|
$
|
368
|
|
|
$
|
1,936
|
|
|
$
|
(4,804
|
)
|
|
Changes in unrealized gains (losses) included in
income relating to assets and liabilities held at December 31, 2013 |
$
|
—
|
|
|
$
|
(2
|
)
|
(1)
|
$
|
(2
|
)
|
(1)
|
$
|
67
|
|
(2)
|
$
|
(25
|
)
|
(1)
|
|
Corporate Debt Securities
|
|
Common Stocks
|
|
Syndicated Loans
|
|
Other Assets
|
|
Debt
|
|
||||||||||
|
(in millions)
|
|
||||||||||||||||||
Balance, January 1, 2012
|
$
|
4
|
|
|
$
|
13
|
|
|
$
|
342
|
|
|
$
|
1,108
|
|
|
$
|
(4,712
|
)
|
|
Total gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
—
|
|
|
(1
|
)
|
(1)
|
11
|
|
(1)
|
(78
|
)
|
(2)
|
(316
|
)
|
(1)
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|
|||||
Purchases
|
—
|
|
|
7
|
|
|
91
|
|
|
328
|
|
|
—
|
|
|
|||||
Sales
|
—
|
|
|
(5
|
)
|
|
(14
|
)
|
|
(172
|
)
|
|
—
|
|
|
|||||
Settlements
|
(1
|
)
|
|
—
|
|
|
(87
|
)
|
|
—
|
|
|
578
|
|
|
|||||
Transfers into Level 3
|
—
|
|
|
15
|
|
|
255
|
|
|
—
|
|
|
—
|
|
|
|||||
Transfers out of Level 3
|
—
|
|
|
(15
|
)
|
|
(396
|
)
|
|
—
|
|
|
—
|
|
|
|||||
Balance, December 31, 2012
|
$
|
3
|
|
|
$
|
14
|
|
|
$
|
202
|
|
|
$
|
1,214
|
|
|
$
|
(4,450
|
)
|
|
Changes in unrealized losses included in
income relating to assets and liabilities held at December 31, 2012 |
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(98
|
)
|
(2)
|
$
|
(315
|
)
|
(1)
|
|
December 31, 2014
|
||||||||||||||
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range
|
|
Weighted Average
|
||||||
|
(in millions)
|
|
|
|
|
|
|
|
|||||||
Other assets (property funds)
|
$
|
1,935
|
|
|
Discounted cash flow/ market comparables
|
|
Equivalent yield
|
|
4.4
|
%
|
–
|
12.0%
|
|
6.5
|
%
|
|
|
|
|
|
|
Expected rental value (per square foot)
|
|
$3
|
–
|
$94
|
|
$34
|
|||
CLO debt
|
$
|
6,030
|
|
|
Discounted cash flow
|
|
Annual default rate
|
|
2.5%
|
|
|
||||
|
|
|
|
|
|
Discount rate
|
|
1.2
|
%
|
–
|
8.3%
|
|
2.4
|
%
|
|
|
|
|
|
|
|
Constant prepayment rate
|
|
5.0
|
%
|
–
|
10.0%
|
|
9.8
|
%
|
|
|
|
|
|
|
|
Loss recovery
|
|
36.4
|
%
|
–
|
63.6%
|
|
62.7
|
%
|
|
December 31, 2013
|
||||||||||||||
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range
|
|
Weighted Average
|
||||||
|
(in millions)
|
|
|
|
|
|
|
|
|||||||
Other assets (property funds)
|
$
|
1,936
|
|
|
Discounted cash flow/ market comparables
|
|
Equivalent yield
|
|
4.4
|
%
|
–
|
12.4%
|
|
7.4
|
%
|
|
|
|
|
|
|
Expected rental value (per square foot)
(1)
|
|
$3
|
–
|
$165
|
|
$27
|
|||
CLO debt
|
$
|
4,804
|
|
|
Discounted cash flow
|
|
Annual default rate
|
|
2.5%
|
|
|
||||
|
|
|
|
|
|
Discount rate
|
|
1.5
|
%
|
–
|
8.3%
|
|
2.7
|
%
|
|
|
|
|
|
|
|
Constant prepayment rate
|
|
5.0
|
%
|
–
|
10.0%
|
|
9.8
|
%
|
|
|
|
|
|
|
|
Loss recovery
|
|
36.4
|
%
|
–
|
63.6%
|
|
62.3
|
%
|
(1)
|
The previously reported range and weighted average for the expected rental value was
$5
-
$373
per square foot and
$33
per square foot, respectively. These inputs have been revised in this disclosure only and the change does not impact the fair value of other assets.
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
|
(in millions)
|
||||||
Syndicated loans
|
|
|
|
|
|
||
Unpaid principal balance
|
$
|
5,871
|
|
|
$
|
4,628
|
|
Excess unpaid principal over fair value
|
(100
|
)
|
|
(56
|
)
|
||
Fair value
|
$
|
5,771
|
|
|
$
|
4,572
|
|
Fair value of loans more than 90 days past due
|
$
|
32
|
|
|
$
|
23
|
|
Fair value of loans in nonaccrual status
|
32
|
|
|
23
|
|
||
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both
|
25
|
|
|
33
|
|
||
Debt
|
|
|
|
|
|
||
Unpaid principal balance
|
$
|
6,248
|
|
|
$
|
5,032
|
|
Excess unpaid principal over fair value
|
(218
|
)
|
|
(228
|
)
|
||
Fair value
|
$
|
6,030
|
|
|
$
|
4,804
|
|
|
Carrying Value
|
|
Weighted Average Interest Rate
|
||||||||||
|
December 31,
|
|
December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||
|
(in millions)
|
|
|
|
|
||||||||
Debt of consolidated CLOs due 2016-2026
|
$
|
6,030
|
|
|
$
|
4,804
|
|
|
1.3
|
%
|
|
1.0
|
%
|
Floating rate revolving credit borrowings due 2015-2019
|
837
|
|
|
932
|
|
|
2.7
|
|
|
3.2
|
|
||
Total
|
$
|
6,867
|
|
|
$
|
5,736
|
|
|
|
|
|
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
|
(in millions)
|
||||||
Available-for-Sale securities, at fair value
|
$
|
30,027
|
|
|
$
|
30,310
|
|
Mortgage loans, net
|
3,440
|
|
|
3,510
|
|
||
Policy and certificate loans
|
806
|
|
|
774
|
|
||
Other investments
|
1,309
|
|
|
1,141
|
|
||
Total
|
$
|
35,582
|
|
|
$
|
35,735
|
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
(in millions)
|
||||||||||
Investment income on fixed maturities
|
$
|
1,479
|
|
|
$
|
1,575
|
|
|
$
|
1,768
|
|
Net realized gains
|
37
|
|
|
7
|
|
|
7
|
|
|||
Affordable housing partnerships
|
(25
|
)
|
|
(12
|
)
|
|
(25
|
)
|
|||
Other
|
93
|
|
|
99
|
|
|
73
|
|
|||
Consolidated investment entities
|
157
|
|
|
220
|
|
|
110
|
|
|||
Total net investment income
|
$
|
1,741
|
|
|
$
|
1,889
|
|
|
$
|
1,933
|
|
|
|
December 31, 2014
|
||||||||||||||||||
Description of Securities
|
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair Value
|
|
Noncredit
OTTI
(1)
|
||||||||||
|
|
(in millions)
|
||||||||||||||||||
Corporate debt securities
|
|
$
|
15,742
|
|
|
$
|
1,482
|
|
|
$
|
(59
|
)
|
|
$
|
17,165
|
|
|
$
|
3
|
|
Residential mortgage backed securities
|
|
6,099
|
|
|
168
|
|
|
(60
|
)
|
|
6,207
|
|
|
(15
|
)
|
|||||
Commercial mortgage backed securities
|
|
2,513
|
|
|
120
|
|
|
(3
|
)
|
|
2,630
|
|
|
—
|
|
|||||
Asset backed securities
|
|
1,417
|
|
|
59
|
|
|
(6
|
)
|
|
1,470
|
|
|
—
|
|
|||||
State and municipal obligations
|
|
2,008
|
|
|
257
|
|
|
(26
|
)
|
|
2,239
|
|
|
—
|
|
|||||
U.S. government and agencies obligations
|
|
43
|
|
|
4
|
|
|
—
|
|
|
47
|
|
|
—
|
|
|||||
Foreign government bonds and obligations
|
|
236
|
|
|
21
|
|
|
(6
|
)
|
|
251
|
|
|
—
|
|
|||||
Common stocks
|
|
8
|
|
|
10
|
|
|
—
|
|
|
18
|
|
|
5
|
|
|||||
Total
|
|
$
|
28,066
|
|
|
$
|
2,121
|
|
|
$
|
(160
|
)
|
|
$
|
30,027
|
|
|
$
|
(7
|
)
|
|
|
December 31, 2013
|
||||||||||||||||||
Description of Securities
|
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair Value
|
|
Noncredit
OTTI (1) |
||||||||||
|
|
(in millions)
|
||||||||||||||||||
Corporate debt securities
|
|
$
|
16,233
|
|
|
$
|
1,330
|
|
|
$
|
(97
|
)
|
|
$
|
17,466
|
|
|
$
|
3
|
|
Residential mortgage backed securities
|
|
6,114
|
|
|
147
|
|
|
(137
|
)
|
|
6,124
|
|
|
(33
|
)
|
|||||
Commercial mortgage backed securities
|
|
2,612
|
|
|
141
|
|
|
(12
|
)
|
|
2,741
|
|
|
—
|
|
|||||
Asset backed securities
|
|
1,459
|
|
|
53
|
|
|
(8
|
)
|
|
1,504
|
|
|
—
|
|
|||||
State and municipal obligations
|
|
2,132
|
|
|
106
|
|
|
(78
|
)
|
|
2,160
|
|
|
—
|
|
|||||
U.S. government and agencies obligations
|
|
47
|
|
|
5
|
|
|
—
|
|
|
52
|
|
|
—
|
|
|||||
Foreign government bonds and obligations
|
|
235
|
|
|
18
|
|
|
(8
|
)
|
|
245
|
|
|
—
|
|
|||||
Common stocks
|
|
7
|
|
|
11
|
|
|
—
|
|
|
18
|
|
|
4
|
|
|||||
Total
|
|
$
|
28,839
|
|
|
$
|
1,811
|
|
|
$
|
(340
|
)
|
|
$
|
30,310
|
|
|
$
|
(26
|
)
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||
Ratings
|
|
Amortized
Cost |
|
Fair Value
|
|
Percent of
Total Fair Value |
|
Amortized
Cost |
|
Fair Value
|
|
Percent of
Total Fair Value |
||||||||||
|
|
(in millions, except percentages)
|
||||||||||||||||||||
AAA
|
|
$
|
7,500
|
|
|
$
|
7,776
|
|
|
26
|
%
|
|
$
|
7,562
|
|
|
$
|
7,746
|
|
|
25
|
%
|
AA
|
|
1,581
|
|
|
1,799
|
|
|
6
|
|
|
1,587
|
|
|
1,707
|
|
|
6
|
|
||||
A
|
|
6,028
|
|
|
6,668
|
|
|
22
|
|
|
6,381
|
|
|
6,738
|
|
|
22
|
|
||||
BBB
|
|
11,187
|
|
|
12,025
|
|
|
40
|
|
|
11,427
|
|
|
12,272
|
|
|
41
|
|
||||
Below investment grade
|
|
1,762
|
|
|
1,741
|
|
|
6
|
|
|
1,875
|
|
|
1,829
|
|
|
6
|
|
||||
Total fixed maturities
|
|
$
|
28,058
|
|
|
$
|
30,009
|
|
|
100
|
%
|
|
$
|
28,832
|
|
|
$
|
30,292
|
|
|
100
|
%
|
|
|
December 31, 2014
|
|||||||||||||||||||||||||||||||
|
|
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
|
182
|
|
|
$
|
2,165
|
|
|
$
|
(41
|
)
|
|
40
|
|
|
$
|
689
|
|
|
$
|
(18
|
)
|
|
222
|
|
|
$
|
2,854
|
|
|
$
|
(59
|
)
|
|
Residential mortgage backed securities
|
73
|
|
|
879
|
|
|
(7
|
)
|
|
138
|
|
|
1,387
|
|
|
(53
|
)
|
|
211
|
|
|
2,266
|
|
|
(60
|
)
|
|||||||
Commercial mortgage backed securities
|
15
|
|
|
173
|
|
|
—
|
|
|
12
|
|
|
131
|
|
|
(3
|
)
|
|
27
|
|
|
304
|
|
|
(3
|
)
|
|||||||
Asset backed securities
|
17
|
|
|
201
|
|
|
(2
|
)
|
|
14
|
|
|
238
|
|
|
(4
|
)
|
|
31
|
|
|
439
|
|
|
(6
|
)
|
|||||||
State and municipal obligations
|
11
|
|
|
29
|
|
|
(1
|
)
|
|
10
|
|
|
115
|
|
|
(25
|
)
|
|
21
|
|
|
144
|
|
|
(26
|
)
|
|||||||
Foreign government bonds and obligations
|
4
|
|
|
10
|
|
|
(1
|
)
|
|
14
|
|
|
27
|
|
|
(5
|
)
|
|
18
|
|
|
37
|
|
|
(6
|
)
|
|||||||
Total
|
302
|
|
|
$
|
3,457
|
|
|
$
|
(52
|
)
|
|
228
|
|
|
$
|
2,587
|
|
|
$
|
(108
|
)
|
|
530
|
|
|
$
|
6,044
|
|
|
$
|
(160
|
)
|
|
|
December 31, 2013
|
|||||||||||||||||||||||||||||||
|
|
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
|
181
|
|
|
$
|
2,817
|
|
|
$
|
(83
|
)
|
|
12
|
|
|
$
|
181
|
|
|
$
|
(14
|
)
|
|
193
|
|
|
$
|
2,998
|
|
|
$
|
(97
|
)
|
|
Residential mortgage backed securities
|
128
|
|
|
2,393
|
|
|
(66
|
)
|
|
113
|
|
|
663
|
|
|
(71
|
)
|
|
241
|
|
|
3,056
|
|
|
(137
|
)
|
|||||||
Commercial mortgage backed securities
|
35
|
|
|
426
|
|
|
(10
|
)
|
|
4
|
|
|
22
|
|
|
(2
|
)
|
|
39
|
|
|
448
|
|
|
(12
|
)
|
|||||||
Asset backed securities
|
40
|
|
|
531
|
|
|
(7
|
)
|
|
4
|
|
|
32
|
|
|
(1
|
)
|
|
44
|
|
|
563
|
|
|
(8
|
)
|
|||||||
State and municipal obligations
|
169
|
|
|
468
|
|
|
(36
|
)
|
|
14
|
|
|
117
|
|
|
(42
|
)
|
|
183
|
|
|
585
|
|
|
(78
|
)
|
|||||||
Foreign government bonds and obligations
|
23
|
|
|
77
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
77
|
|
|
(8
|
)
|
|||||||
Total
|
576
|
|
|
$
|
6,712
|
|
|
$
|
(210
|
)
|
|
147
|
|
|
$
|
1,015
|
|
|
$
|
(130
|
)
|
|
723
|
|
|
$
|
7,727
|
|
|
$
|
(340
|
)
|
|
December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
(in millions)
|
||||||||||
Beginning balance
|
$
|
147
|
|
|
$
|
176
|
|
|
$
|
303
|
|
Credit losses for which an other-than-temporary impairment was not previously recognized
|
—
|
|
|
2
|
|
|
2
|
|
|||
Credit losses for which an other-than-temporary impairment was previously recognized
|
1
|
|
|
7
|
|
|
32
|
|
|||
Reductions for securities sold during the period (realized)
|
(50
|
)
|
|
(38
|
)
|
|
(161
|
)
|
|||
Ending balance
|
$
|
98
|
|
|
$
|
147
|
|
|
$
|
176
|
|
|
Net Unrealized
Securities Gains |
|
Deferred
Income Tax |
|
AOCI Related
to Net Unrealized Securities Gains |
|
||||||
|
(in millions)
|
|
||||||||||
Balance at January 1, 2012
|
$
|
1,350
|
|
|
$
|
(467
|
)
|
|
$
|
883
|
|
|
Net unrealized securities gains arising during the period
(1)
|
911
|
|
|
(323
|
)
|
|
588
|
|
|
|||
Reclassification of net securities gains included in net income
|
(7
|
)
|
|
2
|
|
|
(5
|
)
|
|
|||
Impact of other adjustments
|
(237
|
)
|
|
83
|
|
|
(154
|
)
|
|
|||
Balance at December 31, 2012
|
2,017
|
|
|
(705
|
)
|
|
1,312
|
|
(2)
|
|||
Net unrealized securities losses arising during the period
(1)
|
(1,484
|
)
|
|
513
|
|
|
(971
|
)
|
|
|||
Reclassification of net securities gains included in net income
|
(7
|
)
|
|
2
|
|
|
(5
|
)
|
|
|||
Impact of other adjustments
|
490
|
|
|
(171
|
)
|
|
319
|
|
|
|||
Balance at December 31, 2013
|
1,016
|
|
|
(361
|
)
|
|
655
|
|
(2)
|
|||
Net unrealized securities gains arising during the period
(1)
|
529
|
|
|
(184
|
)
|
|
345
|
|
|
|||
Reclassification of net securities gains included in net income
|
(39
|
)
|
|
14
|
|
|
(25
|
)
|
|
|||
Impact of other adjustments
|
(290
|
)
|
|
101
|
|
|
(189
|
)
|
|
|||
Balance at December 31, 2014
|
$
|
1,216
|
|
|
$
|
(430
|
)
|
|
$
|
786
|
|
(2)
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
(in millions)
|
||||||||||
Gross realized gains
|
$
|
53
|
|
|
$
|
17
|
|
|
$
|
109
|
|
Gross realized losses
|
(8
|
)
|
|
(1
|
)
|
|
(65
|
)
|
|||
Other-than-temporary impairments
|
(6
|
)
|
|
(9
|
)
|
|
(37
|
)
|
|||
Total
|
$
|
39
|
|
|
$
|
7
|
|
|
$
|
7
|
|
|
Amortized Cost
|
|
Fair Value
|
||||
|
(in millions)
|
||||||
Due within one year
|
$
|
1,495
|
|
|
$
|
1,508
|
|
Due after one year through five years
|
6,975
|
|
|
7,494
|
|
||
Due after five years through 10 years
|
5,001
|
|
|
5,216
|
|
||
Due after 10 years
|
4,558
|
|
|
5,484
|
|
||
|
18,029
|
|
|
19,702
|
|
||
Residential mortgage backed securities
|
6,099
|
|
|
6,207
|
|
||
Commercial mortgage backed securities
|
2,513
|
|
|
2,630
|
|
||
Asset backed securities
|
1,417
|
|
|
1,470
|
|
||
Common stocks
|
8
|
|
|
18
|
|
||
Total
|
$
|
28,066
|
|
|
$
|
30,027
|
|
|
December 31, 2014
|
||||||||||||||
|
Commercial Mortgage Loans
|
|
Syndicated Loans
|
|
Consumer Loans
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Beginning balance
|
$
|
26
|
|
|
$
|
6
|
|
|
$
|
5
|
|
|
$
|
37
|
|
Charge-offs
|
(1
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
(4
|
)
|
||||
Recoveries
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Provisions
|
—
|
|
|
2
|
|
|
(1
|
)
|
|
1
|
|
||||
Ending balance
|
$
|
25
|
|
|
$
|
6
|
|
|
$
|
4
|
|
|
$
|
35
|
|
|
|||||||||||||||
Individually evaluated for impairment
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
9
|
|
Collectively evaluated for impairment
|
17
|
|
|
6
|
|
|
3
|
|
|
26
|
|
|
December 31, 2013
|
||||||||||||||
|
Commercial Mortgage Loans
|
|
Syndicated Loans
|
|
Consumer Loans
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Beginning balance
|
$
|
29
|
|
|
$
|
7
|
|
|
$
|
8
|
|
|
$
|
44
|
|
Charge-offs
|
(3
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
(7
|
)
|
||||
Recoveries
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Provisions
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||
Ending balance
|
$
|
26
|
|
|
$
|
6
|
|
|
$
|
5
|
|
|
$
|
37
|
|
|
|||||||||||||||
Individually evaluated for impairment
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
9
|
|
Collectively evaluated for impairment
|
18
|
|
|
6
|
|
|
4
|
|
|
28
|
|
|
December 31, 2012
|
||||||||||||||
|
Commercial Mortgage Loans
|
|
Syndicated Loans
|
|
Consumer Loans
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Beginning balance
|
$
|
35
|
|
|
$
|
9
|
|
|
$
|
16
|
|
|
$
|
60
|
|
Charge-offs
|
(6
|
)
|
|
(2
|
)
|
|
(14
|
)
|
|
(22
|
)
|
||||
Recoveries
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Provisions
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
||||
Ending balance
|
$
|
29
|
|
|
$
|
7
|
|
|
$
|
8
|
|
|
$
|
44
|
|
|
|||||||||||||||
Individually evaluated for impairment
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
7
|
|
Collectively evaluated for impairment
|
23
|
|
|
7
|
|
|
7
|
|
|
37
|
|
|
December 31, 2014
|
||||||||||||||
|
Commercial Mortgage Loans
|
|
Syndicated Loans
|
|
Consumer Loans
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Individually evaluated for impairment
|
$
|
31
|
|
|
$
|
4
|
|
|
$
|
7
|
|
|
$
|
42
|
|
Collectively evaluated for impairment
|
2,698
|
|
|
507
|
|
|
746
|
|
|
3,951
|
|
||||
Total
|
$
|
2,729
|
|
|
$
|
511
|
|
|
$
|
753
|
|
|
$
|
3,993
|
|
|
December 31, 2013
|
||||||||||||||
|
Commercial Mortgage Loans
|
|
Syndicated Loans
|
|
Consumer Loans
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Individually evaluated for impairment
|
$
|
42
|
|
|
$
|
9
|
|
|
$
|
7
|
|
|
$
|
58
|
|
Collectively evaluated for impairment
|
2,640
|
|
|
370
|
|
|
873
|
|
|
3,883
|
|
||||
Total
|
$
|
2,682
|
|
|
$
|
379
|
|
|
$
|
880
|
|
|
$
|
3,941
|
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
(in millions)
|
||||||||||
Purchases
|
|
|
|
|
|
|
|
|
|||
Consumer loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
51
|
|
Syndicated loans
|
227
|
|
|
158
|
|
|
111
|
|
|||
Total loans purchased
|
$
|
227
|
|
|
$
|
158
|
|
|
$
|
162
|
|
|
|||||||||||
Sales
|
|
|
|
|
|
|
|
|
|||
Consumer loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
452
|
|
Syndicated loans
|
13
|
|
|
3
|
|
|
12
|
|
|||
Total loans sold
|
$
|
13
|
|
|
$
|
3
|
|
|
$
|
464
|
|
|
Loans
|
|
Percentage
|
||||||||||
|
December 31,
|
|
December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||
|
(in millions)
|
|
|
|
|
||||||||
East North Central
|
$
|
238
|
|
|
$
|
251
|
|
|
9
|
%
|
|
9
|
%
|
East South Central
|
62
|
|
|
71
|
|
|
2
|
|
|
3
|
|
||
Middle Atlantic
|
217
|
|
|
211
|
|
|
8
|
|
|
8
|
|
||
Mountain
|
245
|
|
|
257
|
|
|
9
|
|
|
10
|
|
||
New England
|
140
|
|
|
149
|
|
|
5
|
|
|
5
|
|
||
Pacific
|
694
|
|
|
661
|
|
|
25
|
|
|
25
|
|
||
South Atlantic
|
740
|
|
|
713
|
|
|
27
|
|
|
26
|
|
||
West North Central
|
233
|
|
|
207
|
|
|
9
|
|
|
8
|
|
||
West South Central
|
160
|
|
|
162
|
|
|
6
|
|
|
6
|
|
||
|
2,729
|
|
|
2,682
|
|
|
100
|
%
|
|
100
|
%
|
||
Less: allowance for loan losses
|
25
|
|
|
26
|
|
|
|
|
|
|
|
||
Total
|
$
|
2,704
|
|
|
$
|
2,656
|
|
|
|
|
|
|
|
|
Loans
|
|
Percentage
|
||||||||||
|
December 31,
|
|
December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||
|
(in millions)
|
|
|
|
|
||||||||
Apartments
|
$
|
500
|
|
|
$
|
488
|
|
|
18
|
%
|
|
18
|
%
|
Hotel
|
34
|
|
|
33
|
|
|
1
|
|
|
1
|
|
||
Industrial
|
461
|
|
|
454
|
|
|
17
|
|
|
17
|
|
||
Mixed use
|
45
|
|
|
36
|
|
|
2
|
|
|
1
|
|
||
Office
|
545
|
|
|
559
|
|
|
20
|
|
|
21
|
|
||
Retail
|
988
|
|
|
951
|
|
|
36
|
|
|
36
|
|
||
Other
|
156
|
|
|
161
|
|
|
6
|
|
|
6
|
|
||
|
2,729
|
|
|
2,682
|
|
|
100
|
%
|
|
100
|
%
|
||
Less: allowance for loan losses
|
25
|
|
|
26
|
|
|
|
|
|
|
|
||
Total
|
$
|
2,704
|
|
|
$
|
2,656
|
|
|
|
|
|
|
|
|
Years Ended December 31,
|
||||||||||||
|
2014
|
|
2013
|
||||||||||
|
Number of Loans
|
|
Recorded Investment
|
|
Number of Loans
|
|
Recorded Investment
|
||||||
|
(in millions, except number of loans)
|
||||||||||||
Commercial mortgage loans
|
3
|
|
|
$
|
9
|
|
|
8
|
|
|
$
|
24
|
|
Syndicated loans
|
1
|
|
|
1
|
|
|
1
|
|
|
—
|
|
||
Consumer bank loans
|
9
|
|
|
1
|
|
|
15
|
|
|
—
|
|
||
Total
|
13
|
|
|
$
|
11
|
|
|
24
|
|
|
$
|
24
|
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
(in millions)
|
||||||||||
Written premiums
|
|
|
|
|
|
||||||
Direct
|
$
|
1,025
|
|
|
$
|
900
|
|
|
$
|
814
|
|
Ceded
|
(17
|
)
|
|
(16
|
)
|
|
(13
|
)
|
|||
Total net written premiums
|
$
|
1,008
|
|
|
$
|
884
|
|
|
$
|
801
|
|
Earned premiums
|
|
|
|
|
|
||||||
Direct
|
$
|
979
|
|
|
$
|
868
|
|
|
$
|
795
|
|
Ceded
|
(17
|
)
|
|
(16
|
)
|
|
(14
|
)
|
|||
Total net earned premiums
|
$
|
962
|
|
|
$
|
852
|
|
|
$
|
781
|
|
|
Advice & Wealth
Management |
|
Asset
Management |
|
Annuities
|
|
Protection
|
|
Consolidated
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Balance at January 1, 2013
|
$
|
253
|
|
|
$
|
830
|
|
|
$
|
46
|
|
|
$
|
45
|
|
|
$
|
1,174
|
|
Foreign currency translation
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
Purchase price adjustments
|
(1
|
)
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|||||
Balance at December 31, 2013
|
252
|
|
|
821
|
|
|
46
|
|
|
45
|
|
|
1,164
|
|
|||||
Foreign currency translation
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|||||
Purchase price adjustments
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|||||
Balance at December 31, 2014
|
$
|
252
|
|
|
$
|
811
|
|
|
$
|
46
|
|
|
$
|
45
|
|
|
$
|
1,154
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Customer relationships
|
$
|
150
|
|
|
$
|
(97
|
)
|
|
$
|
53
|
|
|
$
|
152
|
|
|
$
|
(87
|
)
|
|
$
|
65
|
|
Contracts
|
233
|
|
|
(180
|
)
|
|
53
|
|
|
240
|
|
|
(167
|
)
|
|
73
|
|
||||||
Other
|
151
|
|
|
(98
|
)
|
|
53
|
|
|
155
|
|
|
(94
|
)
|
|
61
|
|
||||||
Total
|
$
|
534
|
|
|
$
|
(375
|
)
|
|
$
|
159
|
|
|
$
|
547
|
|
|
$
|
(348
|
)
|
|
$
|
199
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
(in millions)
|
||||||||||
Balance at January 1
|
$
|
2,663
|
|
|
$
|
2,399
|
|
|
$
|
2,440
|
|
Capitalization of acquisition costs
|
336
|
|
|
339
|
|
|
313
|
|
|||
Amortization, excluding the impact of valuation assumptions review
|
(360
|
)
|
|
(285
|
)
|
|
(275
|
)
|
|||
Amortization impact of valuation assumptions review
|
(7
|
)
|
|
78
|
|
|
(11
|
)
|
|||
Impact of change in net unrealized securities losses (gains)
|
(24
|
)
|
|
132
|
|
|
(68
|
)
|
|||
Balance at December 31
|
$
|
2,608
|
|
|
$
|
2,663
|
|
|
$
|
2,399
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
(in millions)
|
||||||||||
Balance at January 1
|
$
|
409
|
|
|
$
|
404
|
|
|
$
|
464
|
|
Capitalization of sales inducement costs
|
5
|
|
|
5
|
|
|
7
|
|
|||
Amortization, excluding the impact of valuation assumptions review
|
(51
|
)
|
|
(48
|
)
|
|
(45
|
)
|
|||
Amortization impact of valuation assumptions review
|
(2
|
)
|
|
25
|
|
|
(13
|
)
|
|||
Impact of change in net unrealized securities losses (gains)
|
1
|
|
|
23
|
|
|
(9
|
)
|
|||
Balance at December 31
|
$
|
362
|
|
|
$
|
409
|
|
|
$
|
404
|
|
|
December 31,
|
|
||||||
|
2014
|
|
2013
|
|
||||
|
(in millions)
|
|
||||||
Policyholder account balances
|
|
|
|
|
||||
Fixed annuities
|
$
|
12,700
|
|
|
$
|
13,826
|
|
|
Variable annuity fixed sub-accounts
|
4,860
|
|
|
4,926
|
|
|
||
VUL/UL insurance
|
2,856
|
|
|
2,790
|
|
|
||
IUL insurance
|
534
|
|
|
315
|
|
|
||
Other life insurance
|
840
|
|
|
878
|
|
|
||
Total policyholder account balances
|
21,790
|
|
|
22,735
|
|
|
||
|
|
|
|
|
||||
Future policy benefits
|
|
|
|
|
||||
Variable annuity GMWB
|
693
|
|
|
(383
|
)
|
(1)
|
||
Variable annuity GMAB
|
(41
|
)
|
(2)
|
(62
|
)
|
(2)
|
||
Other annuity liabilities
|
115
|
|
|
76
|
|
|
||
Fixed annuities life contingent liabilities
|
1,511
|
|
|
1,523
|
|
|
||
EIA
|
29
|
|
|
29
|
|
|
||
Life, DI and LTC insurance
|
5,106
|
|
|
4,739
|
|
|
||
VUL/UL and other life insurance additional liabilities
|
437
|
|
|
336
|
|
|
||
Total future policy benefits
|
7,850
|
|
|
6,258
|
|
|
||
Policy claims and other policyholders’ funds
|
710
|
|
|
627
|
|
|
||
Total policyholder account balances, future policy benefits and claims
|
$
|
30,350
|
|
|
$
|
29,620
|
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
|
(in millions)
|
||||||
Variable annuity
|
$
|
72,125
|
|
|
$
|
70,687
|
|
VUL insurance
|
7,016
|
|
|
6,885
|
|
||
Other insurance
|
37
|
|
|
44
|
|
||
Threadneedle investment liabilities
|
4,078
|
|
|
3,607
|
|
||
Total
|
$
|
83,256
|
|
|
$
|
81,223
|
|
•
|
Return of premium — provides purchase payments minus adjusted partial surrenders.
|
•
|
Reset — provides that the value resets to the account value every sixth contract anniversary minus adjusted partial surrenders. This provision was often provided in combination with the return of premium provision and is no longer offered.
|
•
|
Ratchet — provides that the value ratchets up to the maximum account value at specified anniversary intervals, plus subsequent purchase payments less adjusted partial surrenders.
|
•
|
Withdrawals at a specified rate per year until the amount withdrawn is equal to the guaranteed amount.
|
•
|
Withdrawals at a specified rate per year for the life of the contractholder (“GMWB for life”).
|
•
|
Withdrawals at a specified rate per year for joint contractholders while either is alive.
|
•
|
Withdrawals based on performance of the contract.
|
•
|
Withdrawals based on the age withdrawals begin.
|
•
|
Once withdrawals begin, the contractholder’s funds are moved to one of the three least aggressive asset allocation models.
|
•
|
Credits are applied annually for a specified number of years to increase the guaranteed amount as long as withdrawals have not been taken.
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||||
Variable Annuity Guarantees by Benefit Type
(1)
|
|
Total Contract Value
|
|
Contract Value in Separate Accounts
|
|
Net Amount at Risk
|
|
Weighted Average Attained Age
|
|
Total Contract Value
|
|
Contract Value in Separate Accounts
|
|
Net Amount at Risk
|
|
Weighted Average Attained Age
|
||||||||||||
|
|
(in millions, except age)
|
||||||||||||||||||||||||||
GMDB:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Return of premium
|
|
$
|
55,378
|
|
|
$
|
53,565
|
|
|
$
|
24
|
|
|
64
|
|
$
|
52,616
|
|
|
$
|
50,790
|
|
|
$
|
28
|
|
|
64
|
Five/six-year reset
|
|
10,360
|
|
|
7,821
|
|
|
28
|
|
|
64
|
|
11,220
|
|
|
8,663
|
|
|
42
|
|
|
64
|
||||||
One-year ratchet
|
|
7,392
|
|
|
7,006
|
|
|
39
|
|
|
66
|
|
7,676
|
|
|
7,261
|
|
|
38
|
|
|
65
|
||||||
Five-year ratchet
|
|
1,773
|
|
|
1,717
|
|
|
2
|
|
|
63
|
|
1,781
|
|
|
1,725
|
|
|
1
|
|
|
62
|
||||||
Other
|
|
959
|
|
|
941
|
|
|
38
|
|
|
70
|
|
1,015
|
|
|
996
|
|
|
36
|
|
|
69
|
||||||
Total — GMDB
|
|
$
|
75,862
|
|
|
$
|
71,050
|
|
|
$
|
131
|
|
|
64
|
|
$
|
74,308
|
|
|
$
|
69,435
|
|
|
$
|
145
|
|
|
64
|
GGU death benefit
|
|
$
|
1,072
|
|
|
$
|
1,019
|
|
|
$
|
123
|
|
|
67
|
|
$
|
1,052
|
|
|
$
|
998
|
|
|
$
|
121
|
|
|
64
|
GMIB
|
|
$
|
343
|
|
|
$
|
321
|
|
|
$
|
9
|
|
|
67
|
|
$
|
413
|
|
|
$
|
389
|
|
|
$
|
8
|
|
|
66
|
GMWB:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
GMWB
|
|
$
|
3,671
|
|
|
$
|
3,659
|
|
|
$
|
1
|
|
|
68
|
|
$
|
3,936
|
|
|
$
|
3,921
|
|
|
$
|
1
|
|
|
67
|
GMWB for life
|
|
36,843
|
|
|
36,735
|
|
|
95
|
|
|
65
|
|
34,069
|
|
|
33,930
|
|
|
77
|
|
|
64
|
||||||
Total — GMWB
|
|
$
|
40,514
|
|
|
$
|
40,394
|
|
|
$
|
96
|
|
|
65
|
|
$
|
38,005
|
|
|
$
|
37,851
|
|
|
$
|
78
|
|
|
64
|
GMAB
|
|
$
|
4,247
|
|
|
$
|
4,234
|
|
|
$
|
2
|
|
|
58
|
|
$
|
4,194
|
|
|
$
|
4,181
|
|
|
$
|
2
|
|
|
58
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||
|
Net Amount at Risk
|
|
Weighted Average Attained Age
|
|
Net Amount at Risk
|
|
Weighted Average Attained Age
|
||||
|
(in millions, except age)
|
||||||||||
UL secondary guarantees
|
$
|
6,076
|
|
|
62
|
|
$
|
5,674
|
|
|
62
|
|
GMDB & GGU
|
|
GMIB
|
|
GMWB
(1)
|
|
GMAB
(1)
|
|
UL
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Balance at January 1, 2012
|
$
|
5
|
|
|
$
|
9
|
|
|
$
|
1,377
|
|
|
$
|
237
|
|
|
$
|
111
|
|
Incurred claims
|
6
|
|
|
1
|
|
|
(578
|
)
|
|
(134
|
)
|
|
57
|
|
|||||
Paid claims
|
(7
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|||||
Balance at December 31, 2012
|
4
|
|
|
9
|
|
|
799
|
|
|
103
|
|
|
155
|
|
|||||
Incurred claims
|
4
|
|
|
(2
|
)
|
|
(1,182
|
)
|
|
(165
|
)
|
|
67
|
|
|||||
Paid claims
|
(4
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|||||
Balance at December 31, 2013
|
4
|
|
|
6
|
|
|
(383
|
)
|
|
(62
|
)
|
|
206
|
|
|||||
Incurred claims
|
9
|
|
|
1
|
|
|
1,076
|
|
|
21
|
|
|
67
|
|
|||||
Paid claims
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|||||
Balance at December 31, 2014
|
$
|
9
|
|
|
$
|
7
|
|
|
$
|
693
|
|
|
$
|
(41
|
)
|
|
$
|
263
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
|
(in millions)
|
||||||
Fixed rate certificates
|
$
|
3,597
|
|
|
$
|
3,338
|
|
Stock market certificates
|
581
|
|
|
611
|
|
||
Stock market embedded derivative reserve
|
6
|
|
|
7
|
|
||
Other
|
23
|
|
|
28
|
|
||
Less: accrued interest classified in other liabilities
|
(8
|
)
|
|
(10
|
)
|
||
Total investment certificate reserves
|
4,199
|
|
|
3,974
|
|
||
Brokerage deposits
|
3,465
|
|
|
3,088
|
|
||
Total
|
$
|
7,664
|
|
|
$
|
7,062
|
|
|
Outstanding Balance
|
|
Stated Interest Rate
|
||||||||||
|
December 31,
|
|
December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||
|
(in millions)
|
|
|
|
|
|
|
||||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|
|
|
||
Senior notes due 2015
|
$
|
358
|
|
(1)
|
$
|
366
|
|
(1)
|
5.7
|
%
|
|
5.7
|
%
|
Senior notes due 2019
|
326
|
|
(1)
|
327
|
|
(1)
|
7.3
|
|
|
7.3
|
|
||
Senior notes due 2020
|
786
|
|
(1)
|
783
|
|
(1)
|
5.3
|
|
|
5.3
|
|
||
Senior notes due 2023
|
750
|
|
|
750
|
|
|
4.0
|
|
|
4.0
|
|
||
Senior notes due 2024
|
548
|
|
|
—
|
|
|
3.7
|
|
|
—
|
|
||
Senior notes due 2039
|
—
|
|
|
200
|
|
|
—
|
|
|
7.8
|
|
||
Junior subordinated notes due 2066
|
294
|
|
|
294
|
|
|
7.5
|
|
|
7.5
|
|
||
Total long-term debt
|
3,062
|
|
|
2,720
|
|
|
|
|
|
|
|
||
Short-term borrowings:
|
|
|
|
|
|
|
|
|
|
|
|||
Federal Home Loan Bank (“FHLB”) advances
|
150
|
|
|
450
|
|
|
0.3
|
|
|
0.3
|
|
||
Repurchase agreements
|
50
|
|
|
50
|
|
|
0.4
|
|
|
0.3
|
|
||
Total short-term borrowings
|
200
|
|
|
500
|
|
|
|
|
|
|
|
||
Total
|
$
|
3,262
|
|
|
$
|
3,220
|
|
|
|
|
|
|
|
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.
|
|
December 31, 2014
|
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
||||||||
|
(in millions)
|
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash equivalents
|
$
|
27
|
|
|
$
|
1,930
|
|
|
$
|
—
|
|
|
$
|
1,957
|
|
|
Available-for-Sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate debt securities
|
—
|
|
|
15,647
|
|
|
1,518
|
|
|
17,165
|
|
|
||||
Residential mortgage backed securities
|
—
|
|
|
6,001
|
|
|
206
|
|
|
6,207
|
|
|
||||
Commercial mortgage backed securities
|
—
|
|
|
2,539
|
|
|
91
|
|
|
2,630
|
|
|
||||
Asset backed securities
|
—
|
|
|
1,301
|
|
|
169
|
|
|
1,470
|
|
|
||||
State and municipal obligations
|
—
|
|
|
2,239
|
|
|
—
|
|
|
2,239
|
|
|
||||
U.S. government and agencies obligations
|
12
|
|
|
35
|
|
|
—
|
|
|
47
|
|
|
||||
Foreign government bonds and obligations
|
—
|
|
|
251
|
|
|
—
|
|
|
251
|
|
|
||||
Common stocks
|
5
|
|
|
7
|
|
|
6
|
|
|
18
|
|
|
||||
Total Available-for-Sale securities
|
17
|
|
|
28,020
|
|
|
1,990
|
|
|
30,027
|
|
|
||||
Trading securities
|
54
|
|
|
28
|
|
|
1
|
|
|
83
|
|
|
||||
Separate account assets
|
—
|
|
|
83,256
|
|
|
—
|
|
|
83,256
|
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest rate derivative contracts
|
—
|
|
|
2,031
|
|
|
—
|
|
|
2,031
|
|
|
||||
Equity derivative contracts
|
282
|
|
|
1,757
|
|
|
—
|
|
|
2,039
|
|
|
||||
Foreign exchange derivative contracts
|
1
|
|
|
29
|
|
|
—
|
|
|
30
|
|
|
||||
Other derivative contracts
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
||||
Total other assets
|
283
|
|
|
3,818
|
|
|
—
|
|
|
4,101
|
|
|
||||
Total assets at fair value
|
$
|
381
|
|
|
$
|
117,052
|
|
|
$
|
1,991
|
|
|
$
|
119,424
|
|
|
|
||||||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Policyholder account balances, future policy benefits and claims:
|
|
|
|
|
|
|
|
|
|
|
|
|||||
EIA embedded derivatives
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
IUL embedded derivatives
|
—
|
|
|
—
|
|
|
242
|
|
|
242
|
|
|
||||
GMWB and GMAB embedded derivatives
|
—
|
|
|
—
|
|
|
479
|
|
|
479
|
|
(2)
|
||||
Total policyholder account balances, future policy benefits and claims
|
—
|
|
|
6
|
|
|
721
|
|
|
727
|
|
(1)
|
||||
Customer deposits
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
||||
Other liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate derivative contracts
|
—
|
|
|
1,136
|
|
|
—
|
|
|
1,136
|
|
|
||||
Equity derivative contracts
|
376
|
|
|
2,326
|
|
|
—
|
|
|
2,702
|
|
|
||||
Foreign exchange derivative contracts
|
1
|
|
|
2
|
|
|
—
|
|
|
3
|
|
|
||||
Other derivative contracts
|
—
|
|
|
114
|
|
|
—
|
|
|
114
|
|
|
||||
Other
|
—
|
|
|
12
|
|
|
—
|
|
|
12
|
|
|
||||
Total other liabilities
|
377
|
|
|
3,590
|
|
|
—
|
|
|
3,967
|
|
|
||||
Total liabilities at fair value
|
$
|
377
|
|
|
$
|
3,602
|
|
|
$
|
721
|
|
|
$
|
4,700
|
|
|
|
December 31, 2013
|
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
||||||||
|
(in millions)
|
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash equivalents
|
$
|
12
|
|
|
$
|
1,841
|
|
|
$
|
—
|
|
|
$
|
1,853
|
|
|
Available-for-Sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate debt securities
|
—
|
|
|
15,826
|
|
|
1,640
|
|
|
17,466
|
|
|
||||
Residential mortgage backed securities
|
—
|
|
|
5,937
|
|
|
187
|
|
|
6,124
|
|
|
||||
Commercial mortgage backed securities
|
—
|
|
|
2,711
|
|
|
30
|
|
|
2,741
|
|
|
||||
Asset backed securities
|
—
|
|
|
1,244
|
|
|
260
|
|
|
1,504
|
|
|
||||
State and municipal obligations
|
—
|
|
|
2,160
|
|
|
—
|
|
|
2,160
|
|
|
||||
U.S. government and agencies obligations
|
17
|
|
|
35
|
|
|
—
|
|
|
52
|
|
|
||||
Foreign government bonds and obligations
|
—
|
|
|
245
|
|
|
—
|
|
|
245
|
|
|
||||
Common stocks
|
5
|
|
|
7
|
|
|
6
|
|
|
18
|
|
|
||||
Total Available-for-Sale securities
|
22
|
|
|
28,165
|
|
|
2,123
|
|
|
30,310
|
|
|
||||
Trading securities
|
3
|
|
|
32
|
|
|
2
|
|
|
37
|
|
|
||||
Separate account assets
|
—
|
|
|
81,223
|
|
|
—
|
|
|
81,223
|
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate derivative contracts
|
—
|
|
|
1,566
|
|
|
—
|
|
|
1,566
|
|
|
||||
Equity derivative contracts
|
265
|
|
|
1,576
|
|
|
—
|
|
|
1,841
|
|
|
||||
Credit derivative contracts
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
||||
Foreign exchange derivative contracts
|
2
|
|
|
2
|
|
|
—
|
|
|
4
|
|
|
||||
Other derivative contracts
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
||||
Total other assets
|
267
|
|
|
3,151
|
|
|
—
|
|
|
3,418
|
|
|
||||
Total assets at fair value
|
$
|
304
|
|
|
$
|
114,412
|
|
|
$
|
2,125
|
|
|
$
|
116,841
|
|
|
|
||||||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Policyholder account balances, future policy benefits and claims:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
EIA embedded derivatives
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
IUL embedded derivatives
|
—
|
|
|
—
|
|
|
125
|
|
|
125
|
|
|
||||
GMWB and GMAB embedded derivatives
|
—
|
|
|
—
|
|
|
(575
|
)
|
|
(575
|
)
|
(2)
|
||||
Total policyholder account balances, future policy benefits and claims
|
—
|
|
|
5
|
|
|
(450
|
)
|
|
(445
|
)
|
(1)
|
||||
Customer deposits
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|
||||
Other liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate derivative contracts
|
—
|
|
|
1,672
|
|
|
—
|
|
|
1,672
|
|
|
||||
Equity derivative contracts
|
550
|
|
|
2,447
|
|
|
—
|
|
|
2,997
|
|
|
||||
Other derivative contracts
|
—
|
|
|
139
|
|
|
—
|
|
|
139
|
|
|
||||
Other
|
—
|
|
|
12
|
|
|
—
|
|
|
12
|
|
|
||||
Total other liabilities
|
550
|
|
|
4,270
|
|
|
—
|
|
|
4,820
|
|
|
||||
Total liabilities at fair value
|
$
|
550
|
|
|
$
|
4,282
|
|
|
$
|
(450
|
)
|
|
$
|
4,382
|
|
|
|
Policyholder Account Balances,
Future Policy Benefits and Claims |
||||||||||
|
IUL Embedded Derivatives
|
|
GMWB and GMAB Embedded Derivatives
|
|
Total
|
||||||
|
(in millions)
|
||||||||||
Balance, January 1, 2014
|
$
|
125
|
|
|
$
|
(575
|
)
|
|
$
|
(450
|
)
|
Total losses included in:
|
|||||||||||
Net income
|
40
|
|
(1)
|
811
|
|
(2)
|
851
|
|
|||
Issues
|
90
|
|
|
254
|
|
|
344
|
|
|||
Settlements
|
(13
|
)
|
|
(11
|
)
|
|
(24
|
)
|
|||
Balance, December 31, 2014
|
$
|
242
|
|
|
$
|
479
|
|
|
$
|
721
|
|
|
|||||||||||
Changes in unrealized losses relating to liabilities held at December 31, 2014 included in:
|
|||||||||||
Interest credited to fixed accounts
|
$
|
40
|
|
|
$
|
—
|
|
|
$
|
40
|
|
Benefits, claims, losses and settlement expenses
|
—
|
|
|
811
|
|
|
811
|
|
|
Available-for-Sale Securities
|
|
|
||||||||||||||||||||||||
|
Corporate Debt Securities
|
|
Residential Mortgage Backed Securities
|
|
Commercial Mortgage Backed Securities
|
|
Asset Backed Securities
|
|
Common Stocks
|
|
Total
|
|
Trading Securities
|
||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||
Balance, January 1, 2013
|
$
|
1,764
|
|
|
$
|
284
|
|
|
$
|
206
|
|
|
$
|
178
|
|
|
$
|
6
|
|
|
$
|
2,438
|
|
|
$
|
—
|
|
Total gains (losses) included in:
|
|||||||||||||||||||||||||||
Net income
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
(1
|
)
|
(1)
|
—
|
|
|||||||
Other comprehensive loss
|
(41
|
)
|
|
—
|
|
|
(6
|
)
|
|
9
|
|
|
1
|
|
|
(37
|
)
|
|
—
|
|
|||||||
Purchases
|
135
|
|
|
335
|
|
|
25
|
|
|
259
|
|
|
—
|
|
|
754
|
|
|
2
|
|
|||||||
Settlements
|
(215
|
)
|
|
(18
|
)
|
|
(36
|
)
|
|
(5
|
)
|
|
—
|
|
|
(274
|
)
|
|
—
|
|
|||||||
Transfers into Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|||||||
Transfers out of Level 3
|
—
|
|
|
(414
|
)
|
|
(159
|
)
|
|
(191
|
)
|
|
(1
|
)
|
|
(765
|
)
|
|
—
|
|
|||||||
Balance, December 31, 2013
|
$
|
1,640
|
|
|
$
|
187
|
|
|
$
|
30
|
|
|
$
|
260
|
|
|
$
|
6
|
|
|
$
|
2,123
|
|
|
$
|
2
|
|
|
|||||||||||||||||||||||||||
Changes in unrealized gains (losses) relating to assets held at December 31, 2013 included in:
|
|||||||||||||||||||||||||||
Net investment income
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
Policyholder Account Balances,
Future Policy Benefits and Claims |
||||||||||
|
IUL Embedded Derivatives
|
|
GMWB and GMAB Embedded Derivatives
|
|
Total
|
||||||
|
(in millions)
|
||||||||||
Balance, January 1, 2013
|
$
|
45
|
|
|
$
|
833
|
|
|
$
|
878
|
|
Total (gains) losses included in:
|
|||||||||||
Net income
|
19
|
|
(1)
|
(1,617
|
)
|
(2)
|
(1,598
|
)
|
|||
Issues
|
62
|
|
|
228
|
|
|
290
|
|
|||
Settlements
|
(1
|
)
|
|
(19
|
)
|
|
(20
|
)
|
|||
Balance, December 31, 2013
|
$
|
125
|
|
|
$
|
(575
|
)
|
|
$
|
(450
|
)
|
|
|||||||||||
Changes in unrealized (gains) losses relating to liabilities held at December 31, 2013 included in:
|
|||||||||||
Interest credited to fixed accounts
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
19
|
|
Benefits, claims, losses and settlement expenses
|
|
|
(1,598
|
)
|
|
(1,598
|
)
|
|
Available-for-Sale Securities
|
|
||||||||||||||||||||||
|
Corporate Debt Securities
|
|
Residential Mortgage Backed Securities
|
|
Commercial Mortgage Backed Securities
|
|
Asset Backed Securities
|
|
Common Stocks
|
|
Total
|
|
||||||||||||
|
(in millions)
|
|||||||||||||||||||||||
Balance, January 1, 2012
|
$
|
1,355
|
|
|
$
|
215
|
|
|
$
|
50
|
|
|
$
|
189
|
|
|
$
|
5
|
|
|
$
|
1,814
|
|
|
Total gains (losses) included in:
|
||||||||||||||||||||||||
Net income
|
(1
|
)
|
|
(45
|
)
|
|
1
|
|
|
3
|
|
|
—
|
|
|
(42
|
)
|
(1)
|
||||||
Other comprehensive income
|
12
|
|
|
68
|
|
|
8
|
|
|
1
|
|
|
—
|
|
|
89
|
|
|
||||||
Purchases
|
543
|
|
|
309
|
|
|
20
|
|
|
—
|
|
|
2
|
|
|
874
|
|
|
||||||
Sales
|
—
|
|
|
(75
|
)
|
|
(19
|
)
|
|
(18
|
)
|
|
—
|
|
|
(112
|
)
|
|
||||||
Settlements
|
(155
|
)
|
|
(56
|
)
|
|
(3
|
)
|
|
(19
|
)
|
|
—
|
|
|
(233
|
)
|
|
||||||
Transfers into Level 3
|
10
|
|
|
42
|
|
|
183
|
|
|
22
|
|
|
—
|
|
|
257
|
|
|
||||||
Transfers out of Level 3
|
—
|
|
|
(174
|
)
|
|
(34
|
)
|
|
—
|
|
|
(1
|
)
|
|
(209
|
)
|
|
||||||
Balance, December 31, 2012
|
$
|
1,764
|
|
|
$
|
284
|
|
|
$
|
206
|
|
|
$
|
178
|
|
|
$
|
6
|
|
|
$
|
2,438
|
|
|
|
||||||||||||||||||||||||
Changes in unrealized gains (losses) relating to assets held at December 31, 2012 included in:
|
||||||||||||||||||||||||
Net investment income
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
|
December 31, 2014
|
|||||||||||||
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range
|
|
Weighted Average
|
|||||
|
(in millions)
|
|
|
|
|
|
|
|
|
|
||||
Corporate debt securities (private placements)
|
$
|
1,476
|
|
|
Discounted cash flow
|
|
Yield/spread to U.S. Treasuries
|
|
1.0
|
%
|
–
|
3.9%
|
|
1.5%
|
IUL embedded derivatives
|
$
|
242
|
|
|
Discounted cash flow
|
|
Nonperformance risk
(1)
|
|
65
|
|
|
bps
|
|
|
GMWB and GMAB embedded derivatives
|
$
|
479
|
|
|
Discounted cash flow
|
|
Utilization of guaranteed withdrawals
(2)
|
|
0.0
|
%
|
–
|
51.1%
|
|
|
|
|
|
|
|
|
Surrender rate
|
|
0.0
|
%
|
–
|
59.1%
|
|
|
|
|
|
|
|
|
|
Market volatility
(3)
|
|
5.2
|
%
|
–
|
20.9%
|
|
|
|
|
|
|
|
|
|
Nonperformance risk
(1)
|
|
65
|
|
|
bps
|
|
|
|
|
|
|
|
|
Elective contractholder strategy allocations
(4)
|
|
0.0
|
%
|
–
|
3.0%
|
|
|
|
December 31, 2013
|
|||||||||||||
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range
|
|
Weighted Average
|
|||||
|
(in millions)
|
|
|
|
|
|
|
|
|
|
||||
Corporate debt securities (private placements)
|
$
|
1,589
|
|
|
Discounted cash flow
|
|
Yield/spread to U.S. Treasuries
|
|
0.9
|
%
|
–
|
5.3%
|
|
1.5%
|
IUL embedded derivatives
|
$
|
125
|
|
|
Discounted cash flow
|
|
Nonperformance risk
(1)
|
|
74
|
|
|
bps
|
|
|
GMWB and GMAB embedded derivatives
|
$
|
(575
|
)
|
|
Discounted cash flow
|
|
Utilization of guaranteed withdrawals
(2)
|
|
0.0
|
%
|
–
|
51.1%
|
|
|
|
|
|
|
|
|
Surrender rate
|
|
0.1
|
%
|
–
|
57.9%
|
|
|
|
|
|
|
|
|
|
Market volatility
(3)
|
|
4.9
|
%
|
–
|
18.8%
|
|
|
|
|
|
|
|
|
|
Nonperformance risk
(1)
|
|
74
|
|
|
bps
|
|
|
|
|
|
|
|
|
Elective contractholder strategy allocations
(4)
|
|
0.0
|
%
|
–
|
50.0%
|
|
|
|
December 31, 2014
|
||||||||||||||||||
|
Carrying Value
|
|
Fair Value
|
||||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||
|
(in millions)
|
||||||||||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mortgage loans, net
|
$
|
3,440
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,512
|
|
|
$
|
3,512
|
|
Policy and certificate loans
|
806
|
|
|
—
|
|
|
1
|
|
|
793
|
|
|
794
|
|
|||||
Receivables
|
1,418
|
|
|
215
|
|
|
1,200
|
|
|
3
|
|
|
1,418
|
|
|||||
Restricted and segregated cash
|
2,614
|
|
|
2,614
|
|
|
—
|
|
|
—
|
|
|
2,614
|
|
|||||
Other investments and assets
|
551
|
|
|
—
|
|
|
460
|
|
|
84
|
|
|
544
|
|
|||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Policyholder account balances, future policy benefits and claims
|
$
|
12,979
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,996
|
|
|
$
|
13,996
|
|
Investment certificate reserves
|
4,201
|
|
|
—
|
|
|
—
|
|
|
4,195
|
|
|
4,195
|
|
|||||
Brokerage customer deposits
|
3,465
|
|
|
3,465
|
|
|
—
|
|
|
—
|
|
|
3,465
|
|
|||||
Separate account liabilities
|
4,478
|
|
|
—
|
|
|
4,478
|
|
|
—
|
|
|
4,478
|
|
|||||
Debt and other liabilities
|
3,576
|
|
|
261
|
|
|
3,446
|
|
|
121
|
|
|
3,828
|
|
|
December 31, 2013
|
||||||||||||||||||
|
Carrying Value
|
|
Fair Value
|
||||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||
|
(in millions)
|
||||||||||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mortgage loans, net
|
$
|
3,510
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,490
|
|
|
$
|
3,490
|
|
Policy and certificate loans
|
774
|
|
|
—
|
|
|
1
|
|
|
765
|
|
|
766
|
|
|||||
Receivables
|
1,141
|
|
|
107
|
|
|
1,026
|
|
|
8
|
|
|
1,141
|
|
|||||
Restricted and segregated cash
|
2,360
|
|
|
2,360
|
|
|
—
|
|
|
—
|
|
|
2,360
|
|
|||||
Other investments and assets
|
440
|
|
|
—
|
|
|
368
|
|
|
73
|
|
|
441
|
|
|||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Policyholder account balances, future policy benefits and claims
|
$
|
14,106
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,724
|
|
|
$
|
14,724
|
|
Investment certificate reserves
|
3,977
|
|
|
—
|
|
|
—
|
|
|
3,982
|
|
|
3,982
|
|
|||||
Brokerage customer deposits
|
3,088
|
|
|
3,088
|
|
|
—
|
|
|
—
|
|
|
3,088
|
|
|||||
Separate account liabilities
|
4,007
|
|
|
—
|
|
|
4,007
|
|
|
—
|
|
|
4,007
|
|
|||||
Debt and other liabilities
|
3,416
|
|
|
137
|
|
|
3,372
|
|
|
134
|
|
|
3,643
|
|
|
December 31, 2014
|
||||||||||||||||||||||||||
|
Gross Amounts of Recognized Assets
|
|
Gross Amounts Offset in the Consolidated Balance Sheets
|
|
Amounts of Assets Presented in the Consolidated Balance Sheets
|
|
Gross Amounts Not Offset in the Consolidated Balance Sheets
|
|
|
||||||||||||||||||
|
|
|
|
Financial Instruments
(1)
|
|
Cash Collateral
|
|
Securities Collateral
|
|
Net Amount
|
|||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
OTC
|
$
|
3,735
|
|
|
$
|
—
|
|
|
$
|
3,735
|
|
|
$
|
(3,000
|
)
|
|
$
|
(281
|
)
|
|
$
|
(418
|
)
|
|
$
|
36
|
|
OTC cleared
|
305
|
|
|
—
|
|
|
305
|
|
|
(224
|
)
|
|
(81
|
)
|
|
—
|
|
|
—
|
|
|||||||
Exchange-traded
|
61
|
|
|
—
|
|
|
61
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|||||||
Total derivatives
|
4,101
|
|
|
—
|
|
|
4,101
|
|
|
(3,224
|
)
|
|
(362
|
)
|
|
(418
|
)
|
|
97
|
|
|||||||
Securities borrowed
|
215
|
|
|
—
|
|
|
215
|
|
|
(49
|
)
|
|
—
|
|
|
(163
|
)
|
|
3
|
|
|||||||
Total
|
$
|
4,316
|
|
|
$
|
—
|
|
|
$
|
4,316
|
|
|
$
|
(3,273
|
)
|
|
$
|
(362
|
)
|
|
$
|
(581
|
)
|
|
$
|
100
|
|
|
December 31, 2013
|
||||||||||||||||||||||||||
|
Gross Amounts of Recognized Assets
|
|
Gross Amounts Offset in the Consolidated Balance Sheets
|
|
Amounts of Assets Presented in the Consolidated Balance Sheets
|
|
Gross Amounts Not Offset in the Consolidated Balance Sheets
|
|
|
||||||||||||||||||
|
|
|
|
Financial Instruments
(1)
|
|
Cash Collateral
|
|
Securities Collateral
|
|
Net Amount
|
|||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
OTC
|
$
|
3,337
|
|
|
$
|
—
|
|
|
$
|
3,337
|
|
|
$
|
(3,227
|
)
|
|
$
|
(75
|
)
|
|
$
|
(15
|
)
|
|
$
|
20
|
|
OTC cleared
|
21
|
|
|
—
|
|
|
21
|
|
|
(20
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|||||||
Exchange-traded
|
60
|
|
|
—
|
|
|
60
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|||||||
Total derivatives
|
3,418
|
|
|
—
|
|
|
3,418
|
|
|
(3,247
|
)
|
|
(76
|
)
|
|
(15
|
)
|
|
80
|
|
|||||||
Securities borrowed
|
107
|
|
|
—
|
|
|
107
|
|
|
(15
|
)
|
|
—
|
|
|
(90
|
)
|
|
2
|
|
|||||||
Total
|
$
|
3,525
|
|
|
$
|
—
|
|
|
$
|
3,525
|
|
|
$
|
(3,262
|
)
|
|
$
|
(76
|
)
|
|
$
|
(105
|
)
|
|
$
|
82
|
|
|
December 31, 2014
|
||||||||||||||||||||||||||
|
Gross Amounts of Recognized Liabilities
|
|
Gross Amounts Offset in the Consolidated Balance Sheets
|
|
Amounts of Liabilities Presented in the Consolidated Balance Sheets
|
|
Gross Amounts Not Offset in the Consolidated Balance Sheets
|
|
|
||||||||||||||||||
|
|
|
|
Financial Instruments
(1)
|
|
Cash Collateral
|
|
Securities Collateral
|
|
Net Amount
|
|||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
OTC
|
$
|
3,723
|
|
|
$
|
—
|
|
|
$
|
3,723
|
|
|
$
|
(3,000
|
)
|
|
$
|
—
|
|
|
$
|
(723
|
)
|
|
$
|
—
|
|
OTC cleared
|
232
|
|
|
—
|
|
|
232
|
|
|
(224
|
)
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|||||||
Total derivatives
|
3,955
|
|
|
—
|
|
|
3,955
|
|
|
(3,224
|
)
|
|
(8
|
)
|
|
(723
|
)
|
|
—
|
|
|||||||
Securities loaned
|
261
|
|
|
—
|
|
|
261
|
|
|
(49
|
)
|
|
—
|
|
|
(205
|
)
|
|
7
|
|
|||||||
Repurchase agreements
|
50
|
|
|
—
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
—
|
|
|||||||
Total
|
$
|
4,266
|
|
|
$
|
—
|
|
|
$
|
4,266
|
|
|
$
|
(3,273
|
)
|
|
$
|
(8
|
)
|
|
$
|
(978
|
)
|
|
$
|
7
|
|
|
December 31, 2013
|
||||||||||||||||||||||||||
|
Gross Amounts of Recognized Liabilities
|
|
Gross Amounts Offset in the Consolidated Balance Sheets
|
|
Amounts of Liabilities Presented in the Consolidated Balance Sheets
|
|
Gross Amounts Not Offset in the Consolidated Balance Sheets
|
|
|
||||||||||||||||||
|
|
|
|
Financial Instruments
(1)
|
|
Cash Collateral
|
|
Securities Collateral
|
|
Net Amount
|
|||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
OTC
|
$
|
4,786
|
|
|
$
|
—
|
|
|
$
|
4,786
|
|
|
$
|
(3,227
|
)
|
|
$
|
—
|
|
|
$
|
(1,498
|
)
|
|
$
|
61
|
|
OTC cleared
|
22
|
|
|
—
|
|
|
22
|
|
|
(20
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|||||||
Total derivatives
|
4,808
|
|
|
—
|
|
|
4,808
|
|
|
(3,247
|
)
|
|
(2
|
)
|
|
(1,498
|
)
|
|
61
|
|
|||||||
Securities loaned
|
136
|
|
|
—
|
|
|
136
|
|
|
(15
|
)
|
|
—
|
|
|
(117
|
)
|
|
4
|
|
|||||||
Repurchase agreements
|
50
|
|
|
—
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
—
|
|
|||||||
Total
|
$
|
4,994
|
|
|
$
|
—
|
|
|
$
|
4,994
|
|
|
$
|
(3,262
|
)
|
|
$
|
(2
|
)
|
|
$
|
(1,665
|
)
|
|
$
|
65
|
|
Derivatives designated as hedging instruments
|
|
|
|
Assets
|
|
|
|
Liabilities
|
||||||||||||
Balance Sheet
Location |
December 31,
|
Balance Sheet
Location |
December 31,
|
|||||||||||||||||
2014
|
|
2013
|
2014
|
|
2013
|
|||||||||||||||
|
|
|
(in millions)
|
|
|
(in millions)
|
||||||||||||||
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed rate debt
|
|
Other assets
|
|
$
|
76
|
|
|
$
|
82
|
|
|
Other liabilities
|
|
$
|
—
|
|
|
$
|
—
|
|
Total qualifying hedges
|
|
|
|
76
|
|
|
82
|
|
|
|
|
—
|
|
|
—
|
|
||||
Derivatives not designated as hedging instruments
|
|
|
||||||||||||||||||
GMWB and GMAB
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
|
Other assets
|
|
1,955
|
|
|
1,484
|
|
|
Other liabilities
|
|
1,136
|
|
|
1,672
|
|
||||
Equity contracts
|
|
Other assets
|
|
1,954
|
|
|
1,741
|
|
|
Other liabilities
|
|
2,650
|
|
|
2,918
|
|
||||
Credit contracts
|
|
Other assets
|
|
—
|
|
|
3
|
|
|
Other liabilities
|
|
—
|
|
|
—
|
|
||||
Foreign exchange contracts
|
|
Other assets
|
|
29
|
|
|
2
|
|
|
Other liabilities
|
|
2
|
|
|
—
|
|
||||
Embedded derivatives
(1)
|
|
N/A
|
|
—
|
|
|
—
|
|
|
Policyholder account balances, future policy benefits and claims
(2)
|
|
479
|
|
|
(575
|
)
|
||||
Total GMWB and GMAB
|
|
|
|
3,938
|
|
|
3,230
|
|
|
|
|
4,267
|
|
|
4,015
|
|
||||
Other derivatives:
|
||||||||||||||||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
EIA embedded derivatives
|
|
N/A
|
|
—
|
|
|
—
|
|
|
Policyholder account balances, future policy benefits and claims
|
|
6
|
|
|
5
|
|
||||
IUL
|
|
Other assets
|
|
39
|
|
|
27
|
|
|
Other liabilities
|
|
12
|
|
|
13
|
|
||||
IUL embedded derivatives
|
|
N/A
|
|
—
|
|
|
—
|
|
|
Policyholder account balances, future policy benefits and claims
|
|
242
|
|
|
125
|
|
||||
Stock market certificates
|
|
Other assets
|
|
46
|
|
|
73
|
|
|
Other liabilities
|
|
40
|
|
|
66
|
|
||||
Stock market certificates embedded derivatives
|
|
N/A
|
|
—
|
|
|
—
|
|
|
Customer deposits
|
|
6
|
|
|
7
|
|
||||
Foreign exchange
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency
|
|
Other assets
|
|
1
|
|
|
2
|
|
|
Other liabilities
|
|
—
|
|
|
—
|
|
||||
Seed money
|
|
Other assets
|
|
—
|
|
|
—
|
|
|
Other liabilities
|
|
1
|
|
|
—
|
|
||||
Other
|
||||||||||||||||||||
Macro hedge program
|
|
Other assets
|
|
1
|
|
|
4
|
|
|
Other liabilities
|
|
114
|
|
|
139
|
|
||||
Total other derivatives
|
|
|
|
87
|
|
|
106
|
|
|
|
|
421
|
|
|
355
|
|
||||
Total non-designated hedges
|
|
|
|
4,025
|
|
|
3,336
|
|
|
|
|
4,688
|
|
|
4,370
|
|
||||
Total derivatives
|
|
|
|
$
|
4,101
|
|
|
$
|
3,418
|
|
|
|
|
$
|
4,688
|
|
|
$
|
4,370
|
|
(1)
|
The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.
|
(2)
|
The fair value of the GMWB and GMAB embedded derivatives at December 31, 2014 included
$700 million
of individual contracts in a liability position and
$221 million
of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives was a net asset at December 31, 2013 reported as a contra liability, including
$742 million
of individual contracts in an asset position and
$167 million
of individual contracts in a liability position.
|
Derivatives not designated as
hedging instruments |
|
Location of Gain (Loss) on
Derivatives Recognized in Income |
|
Amount of Gain (Loss) on
Derivatives Recognized in Income |
||||||||||
Years Ended December 31,
|
||||||||||||||
2014
|
|
2013
|
|
2012
|
||||||||||
|
|
|
|
(in millions)
|
||||||||||
GMWB and GMAB
|
||||||||||||||
Interest rate contracts
|
|
Benefits, claims, losses and settlement expenses
|
|
$
|
1,122
|
|
|
$
|
(742
|
)
|
|
$
|
17
|
|
Equity contracts
|
|
Benefits, claims, losses and settlement expenses
|
|
(304
|
)
|
|
(1,084
|
)
|
|
(1,218
|
)
|
|||
Credit contracts
|
|
Benefits, claims, losses and settlement expenses
|
|
(33
|
)
|
|
6
|
|
|
(2
|
)
|
|||
Foreign exchange contracts
|
|
Benefits, claims, losses and settlement expenses
|
|
(9
|
)
|
|
26
|
|
|
(1
|
)
|
|||
Embedded derivatives
(1)
|
|
Benefits, claims, losses and settlement expenses
|
|
(1,054
|
)
|
|
1,408
|
|
|
752
|
|
|||
Total GMWB and GMAB
|
|
|
|
(278
|
)
|
|
(386
|
)
|
|
(452
|
)
|
|||
Other derivatives:
|
||||||||||||||
Interest rate
|
|
|
|
|
|
|
|
|
||||||
Bank assets
|
|
Net investment income
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|||
Tax hedge
|
|
Net investment income
|
|
3
|
|
|
—
|
|
|
1
|
|
|||
Seed money
|
|
Net investment income
|
|
(2
|
)
|
|
2
|
|
|
—
|
|
|||
Equity
|
|
|
|
|
|
|
|
|
||||||
IUL
|
|
Interest credited to fixed accounts
|
|
20
|
|
|
11
|
|
|
1
|
|
|||
IUL embedded derivatives
|
|
Interest credited to fixed accounts
|
|
(27
|
)
|
|
(16
|
)
|
|
4
|
|
|||
EIA
|
|
Interest credited to fixed accounts
|
|
1
|
|
|
3
|
|
|
1
|
|
|||
EIA embedded derivatives
|
|
Interest credited to fixed accounts
|
|
(2
|
)
|
|
(3
|
)
|
|
1
|
|
|||
Stock market certificates
|
|
Banking and deposit interest expense
|
|
3
|
|
|
7
|
|
|
6
|
|
|||
Stock market certificates embedded derivatives
|
|
Banking and deposit interest expense
|
|
(3
|
)
|
|
(6
|
)
|
|
(5
|
)
|
|||
Seed money
|
|
Net investment income
|
|
(4
|
)
|
|
(17
|
)
|
|
(6
|
)
|
|||
Ameriprise Financial Franchise Advisor Deferred Compensation Plan
|
|
Distribution expenses
|
|
—
|
|
|
—
|
|
|
5
|
|
|||
Deferred compensation
|
|
Distribution expenses
|
|
13
|
|
|
9
|
|
|
—
|
|
|||
Deferred compensation
|
|
General and administrative expense
|
|
4
|
|
|
5
|
|
|
—
|
|
|||
Foreign exchange
|
|
|
|
|
|
|
|
|
||||||
Foreign currency
|
|
Net investment income
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|||
Deferred compensation
|
|
Distribution expenses
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|||
Deferred compensation
|
|
General and administrative expense
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|||
Commodity
|
|
|
|
|
|
|
|
|
||||||
Seed money
|
|
Net investment income
|
|
—
|
|
|
1
|
|
|
—
|
|
|||
Other
|
|
|
|
|
|
|
|
|
||||||
Macro hedge program
|
|
Benefits, claims, losses and settlement expenses
|
|
(12
|
)
|
|
(42
|
)
|
|
—
|
|
|||
Total other derivatives
|
|
|
|
(10
|
)
|
|
(48
|
)
|
|
1
|
|
|||
Total derivatives
|
|
|
|
$
|
(288
|
)
|
|
$
|
(434
|
)
|
|
$
|
(451
|
)
|
(1)
|
The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.
|
|
Premiums Payable
|
|
Premiums Receivable
|
||||
|
(in millions)
|
||||||
2015
|
$
|
393
|
|
|
$
|
70
|
|
2016
|
333
|
|
|
69
|
|
||
2017
|
271
|
|
|
70
|
|
||
2018
|
208
|
|
|
80
|
|
||
2019
|
226
|
|
|
71
|
|
||
2020-2027
|
493
|
|
|
118
|
|
||
Total
|
$
|
1,924
|
|
|
$
|
478
|
|
|
|
Amount of Gain Recognized in Other Comprehensive Income (Loss) on Derivatives
|
||||||||||
|
|
Years Ended December 31,
|
||||||||||
Derivatives designated as hedging instruments
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
|
(in millions)
|
||||||||||
Interest on debt
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14
|
|
|
|
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
|
||||||||||
Location of Gain (Loss) Reclassified from Accumulated
Other Comprehensive Income into Income |
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
|||||||
|
|
(in millions)
|
||||||||||
Other revenues
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
Interest and debt expense
|
|
4
|
|
|
4
|
|
|
4
|
|
|||
Net investment income
|
|
(5
|
)
|
|
(5
|
)
|
|
(6
|
)
|
|||
Total
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
$
|
1
|
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
|
(in millions)
|
||||||||||
Net unrealized derivatives losses at January 1
|
|
$
|
(1
|
)
|
|
$
|
(2
|
)
|
|
$
|
(11
|
)
|
Holding gains
|
|
—
|
|
|
—
|
|
|
14
|
|
|||
Reclassification of realized (gains) losses
|
|
1
|
|
|
1
|
|
|
(1
|
)
|
|||
Income tax provision
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|||
Net unrealized derivatives losses at December 31
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
(2
|
)
|
|
December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
(in millions)
|
||||||||||
Stock option
|
$
|
37
|
|
|
$
|
36
|
|
|
$
|
40
|
|
Restricted stock
(1)
|
26
|
|
|
46
|
|
|
40
|
|
|||
Restricted stock units
|
67
|
|
|
61
|
|
|
54
|
|
|||
Liability awards
|
30
|
|
|
31
|
|
|
14
|
|
|||
Total
|
$
|
160
|
|
|
$
|
174
|
|
|
$
|
148
|
|
|
2014
|
|
2013
|
|
2012
|
|||
Dividend yield
|
2.0
|
%
|
|
3.0
|
%
|
|
2.0
|
%
|
Expected volatility
|
31
|
%
|
|
41
|
%
|
|
45
|
%
|
Risk-free interest rate
|
1.5
|
%
|
|
0.9
|
%
|
|
0.8
|
%
|
Expected life of stock option (years)
|
5.0
|
|
|
5.0
|
|
|
5.0
|
|
|
Shares
|
|
Weighted Average Exercise Price
|
|
Weighted Average Remaining Contractual Term (Years)
|
|
Aggregate Intrinsic Value
|
|||||
Outstanding at January 1
|
9.4
|
|
|
$
|
53.03
|
|
|
5.2
|
|
$
|
583
|
|
Granted
|
1.6
|
|
|
108.32
|
|
|
|
|
|
|||
Exercised
|
(3.7
|
)
|
|
52.59
|
|
|
|
|
|
|||
Forfeited
|
(0.1
|
)
|
|
74.77
|
|
|
|
|
|
|||
Outstanding at December 31
|
7.2
|
|
|
65.07
|
|
|
6.7
|
|
485
|
|
||
Exercisable at December 31
|
4.1
|
|
|
49.92
|
|
|
5.4
|
|
334
|
|
|
Shares
|
|
Weighted Average Grant-date Fair Value
|
|||
Non-vested shares at January 1
|
2.8
|
|
|
$
|
43.87
|
|
Granted
|
0.7
|
|
|
109.71
|
|
|
Deferred
|
0.3
|
|
|
116.29
|
|
|
Vested
|
(2.3
|
)
|
|
49.32
|
|
|
Forfeited
|
(0.1
|
)
|
|
77.97
|
|
|
Non-vested shares at December 31
|
1.4
|
|
|
80.68
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
|
(in millions)
|
||||||
Net unrealized securities gains
|
$
|
786
|
|
|
$
|
655
|
|
Net unrealized derivatives losses
|
—
|
|
|
(1
|
)
|
||
Foreign currency translation
|
(53
|
)
|
|
(13
|
)
|
||
Defined benefit plans
|
(71
|
)
|
|
(46
|
)
|
||
Total
|
$
|
662
|
|
|
$
|
595
|
|
AOCI Reclassification
|
|
Location of Loss (Gain) Recognized in Income
|
|
Years Ended December 31,
|
||||||
2014
|
|
2013
|
||||||||
|
|
|
|
(in millions)
|
||||||
Net unrealized gains on Available-for-Sale securities
|
|
Net investment income
|
|
$
|
(39
|
)
|
|
$
|
(7
|
)
|
Tax expense
|
|
Income tax provision
|
|
14
|
|
|
2
|
|
||
Net of tax
|
|
|
|
$
|
(25
|
)
|
|
$
|
(5
|
)
|
Losses (gains) on cash flow hedges:
|
|
|
|
|
|
|
||||
Interest rate contracts
|
|
Interest and debt expense
|
|
(4
|
)
|
|
(4
|
)
|
||
Swaptions
|
|
Net investment income
|
|
5
|
|
|
5
|
|
||
Total before tax
|
|
|
|
1
|
|
|
1
|
|
||
Tax expense
|
|
Income tax provision
|
|
—
|
|
|
—
|
|
||
Net of tax
|
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
(in millions)
|
||||||||||
RiverSource Life
|
|
|
|
|
|
||||||
Statutory net gain from operations
(1)
|
$
|
1,412
|
|
|
$
|
1,633
|
|
|
$
|
2,189
|
|
Statutory net income
(1)
|
1,154
|
|
|
1,337
|
|
|
1,976
|
|
|||
IDS Property Casualty
|
|
|
|
|
|
||||||
Statutory net income (loss)
|
(25
|
)
|
|
11
|
|
|
27
|
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
(in millions)
|
||||||||||
Current income tax
|
|
|
|
|
|
||||||
Federal
|
$
|
248
|
|
|
$
|
549
|
|
|
$
|
229
|
|
State and local
|
33
|
|
|
24
|
|
|
25
|
|
|||
Foreign
|
36
|
|
|
37
|
|
|
31
|
|
|||
Total current income tax
|
317
|
|
|
610
|
|
|
285
|
|
|||
Deferred income tax
|
|
|
|
|
|
||||||
Federal
|
202
|
|
|
(102
|
)
|
|
37
|
|
|||
State and local
|
30
|
|
|
(10
|
)
|
|
15
|
|
|||
Foreign
|
(4
|
)
|
|
(6
|
)
|
|
(2
|
)
|
|||
Total deferred income tax
|
228
|
|
|
(118
|
)
|
|
50
|
|
|||
Total income tax provision
|
$
|
545
|
|
|
$
|
492
|
|
|
$
|
335
|
|
|
Years Ended December 31,
|
|||||||
|
2014
|
|
2013
|
|
2012
|
|||
Tax at U.S. statutory rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
Changes in taxes resulting from:
|
|
|
|
|
|
|||
Net income (loss) attributable to noncontrolling interests
|
(5.2
|
)
|
|
(2.5
|
)
|
|
3.6
|
|
Dividend exclusion
|
(4.7
|
)
|
|
(5.1
|
)
|
|
(5.9
|
)
|
Low income housing tax credits
|
(2.1
|
)
|
|
(2.7
|
)
|
|
(3.0
|
)
|
Foreign tax credits, net of addback
|
(2.0
|
)
|
|
(0.9
|
)
|
|
(3.2
|
)
|
State taxes, net of federal benefit
|
1.6
|
|
|
0.5
|
|
|
2.5
|
|
Tax-exempt interest income
|
(0.7
|
)
|
|
(0.9
|
)
|
|
(1.7
|
)
|
Taxes applicable to prior years
|
(0.2
|
)
|
|
—
|
|
|
(2.5
|
)
|
Other, net
|
(0.3
|
)
|
|
1.6
|
|
|
2.3
|
|
Income tax provision
|
21.4
|
%
|
|
25.0
|
%
|
|
27.1
|
%
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
|
(in millions)
|
||||||
Deferred income tax assets
|
|
|
|
||||
Liabilities for policyholder account balances, future policy benefits and claims
|
$
|
1,292
|
|
|
$
|
918
|
|
Deferred compensation
|
350
|
|
|
335
|
|
||
Investment related
|
83
|
|
|
724
|
|
||
Loss carryovers and tax credit carryforwards
|
25
|
|
|
39
|
|
||
Other
|
102
|
|
|
61
|
|
||
Gross deferred income tax assets
|
1,852
|
|
|
2,077
|
|
||
Less: valuation allowance
|
20
|
|
|
19
|
|
||
Total deferred income tax assets
|
1,832
|
|
|
2,058
|
|
||
Deferred income tax liabilities
|
|
|
|
||||
Deferred acquisition costs
|
738
|
|
|
749
|
|
||
Net unrealized gains on Available-for-Sale securities
|
424
|
|
|
352
|
|
||
Depreciation expense
|
131
|
|
|
138
|
|
||
Deferred sales inducement costs
|
128
|
|
|
145
|
|
||
Intangible assets
|
96
|
|
|
84
|
|
||
Other
|
101
|
|
|
113
|
|
||
Gross deferred income tax liabilities
|
1,618
|
|
|
1,581
|
|
||
Net deferred income tax assets
|
$
|
214
|
|
|
$
|
477
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
(in millions)
|
||||||||||
Balance at January 1
|
$
|
209
|
|
|
$
|
116
|
|
|
$
|
184
|
|
Additions based on tax positions related to the current year
|
17
|
|
|
22
|
|
|
2
|
|
|||
Additions for tax positions of prior years
|
35
|
|
|
74
|
|
|
25
|
|
|||
Reductions for tax positions of prior years
|
(19
|
)
|
|
(3
|
)
|
|
(83
|
)
|
|||
Settlements
|
—
|
|
|
—
|
|
|
(12
|
)
|
|||
Balance at December 31
|
$
|
242
|
|
|
$
|
209
|
|
|
$
|
116
|
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
(in millions)
|
||||||||||
Net unrealized securities gains (losses)
|
$
|
69
|
|
|
$
|
(344
|
)
|
|
$
|
238
|
|
Net unrealized derivatives gains
|
—
|
|
|
—
|
|
|
4
|
|
|||
Defined benefit plans
|
(13
|
)
|
|
24
|
|
|
(9
|
)
|
|||
Foreign currency translation
|
(18
|
)
|
|
3
|
|
|
7
|
|
|||
Net income tax provision (benefit)
|
$
|
38
|
|
|
$
|
(317
|
)
|
|
$
|
240
|
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
(in millions)
|
||||||||||
Service cost
|
$
|
43
|
|
|
$
|
46
|
|
|
$
|
41
|
|
Interest cost
|
28
|
|
|
23
|
|
|
24
|
|
|||
Expected return on plan assets
|
(38
|
)
|
|
(33
|
)
|
|
(30
|
)
|
|||
Amortization of prior service costs
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|||
Amortization of net loss
|
7
|
|
|
11
|
|
|
7
|
|
|||
Other
|
3
|
|
|
2
|
|
|
4
|
|
|||
Net periodic benefit cost
|
$
|
42
|
|
|
$
|
48
|
|
|
$
|
45
|
|
|
2014
|
|
2013
|
||||
|
(in millions)
|
||||||
Benefit obligation, January 1
|
$
|
676
|
|
|
$
|
643
|
|
Service cost
|
43
|
|
|
46
|
|
||
Interest cost
|
28
|
|
|
23
|
|
||
Benefits paid
|
(7
|
)
|
|
(7
|
)
|
||
Actuarial (gain) loss
|
30
|
|
|
(8
|
)
|
||
Settlements
|
(20
|
)
|
|
(23
|
)
|
||
Foreign currency rate changes
|
(8
|
)
|
|
2
|
|
||
Additional voluntary contribution ("AVC") obligation
|
34
|
|
|
—
|
|
||
Benefit obligation, December 31
|
$
|
776
|
|
|
$
|
676
|
|
|
2014
|
|
2013
|
||||
|
(in millions)
|
||||||
Fair value of plan assets, January 1
|
$
|
544
|
|
|
$
|
437
|
|
Actual return on plan assets
|
37
|
|
|
85
|
|
||
Employer contributions
|
47
|
|
|
50
|
|
||
Benefits paid
|
(7
|
)
|
|
(7
|
)
|
||
Settlements
|
(20
|
)
|
|
(23
|
)
|
||
Foreign currency rate changes
|
(8
|
)
|
|
2
|
|
||
AVC asset
|
19
|
|
|
—
|
|
||
Fair value of plan assets, December 31
|
$
|
612
|
|
|
$
|
544
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
|
(in millions)
|
||||||
Benefit liability
|
$
|
(178
|
)
|
|
$
|
(136
|
)
|
Benefit asset
|
14
|
|
|
4
|
|
||
Net amount recognized
|
$
|
(164
|
)
|
|
$
|
(132
|
)
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
|
(in millions)
|
||||||
Accumulated benefit obligation
|
$
|
582
|
|
|
$
|
514
|
|
Fair value of plan assets
|
449
|
|
|
418
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
|
(in millions)
|
||||||
Projected benefit obligation
|
$
|
628
|
|
|
$
|
554
|
|
Fair value of plan assets
|
449
|
|
|
418
|
|
|
2014
|
|
2013
|
||
Discount rates
|
3.44
|
%
|
|
4.06
|
%
|
Rates of increase in compensation levels
|
4.35
|
|
|
4.38
|
|
|
|
December 31, 2014
|
||||||||||||||
Asset Category
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Equity securities:
|
|
(in millions)
|
||||||||||||||
U.S. large cap stocks
|
|
$
|
74
|
|
|
$
|
84
|
|
|
$
|
—
|
|
|
$
|
158
|
|
U.S. small cap stocks
|
|
59
|
|
|
1
|
|
|
—
|
|
|
60
|
|
||||
Non-U.S. large cap stocks
|
|
21
|
|
|
33
|
|
|
—
|
|
|
54
|
|
||||
Non-U.S. small cap stocks
|
|
18
|
|
|
—
|
|
|
—
|
|
|
18
|
|
||||
Emerging markets
|
|
15
|
|
|
24
|
|
|
—
|
|
|
39
|
|
||||
Debt securities:
|
||||||||||||||||
U.S. investment grade bonds
|
|
19
|
|
|
15
|
|
|
—
|
|
|
34
|
|
||||
U.S. high yield bonds
|
|
—
|
|
|
27
|
|
|
—
|
|
|
27
|
|
||||
Non-U.S. investment grade bonds
|
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
||||
Real estate investment trusts
|
|
—
|
|
|
—
|
|
|
14
|
|
|
14
|
|
||||
Hedge funds
|
|
—
|
|
|
—
|
|
|
21
|
|
|
21
|
|
||||
Pooled pension funds
|
|
—
|
|
|
144
|
|
|
—
|
|
|
144
|
|
||||
AVC assets (pooled pension funds)
|
|
—
|
|
|
19
|
|
|
—
|
|
|
19
|
|
||||
Cash equivalents
|
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||||
Total
|
|
$
|
215
|
|
|
$
|
362
|
|
|
$
|
35
|
|
|
$
|
612
|
|
|
|
December 31, 2013
|
||||||||||||||
Asset Category
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Equity securities:
|
|
(in millions)
|
||||||||||||||
U.S. large cap stocks
|
|
$
|
97
|
|
|
$
|
43
|
|
|
$
|
—
|
|
|
$
|
140
|
|
U.S. small cap stocks
|
|
55
|
|
|
1
|
|
|
—
|
|
|
56
|
|
||||
Non-U.S. large cap stocks
|
|
21
|
|
|
35
|
|
|
—
|
|
|
56
|
|
||||
Non-U.S. small cap stocks
|
|
21
|
|
|
—
|
|
|
—
|
|
|
21
|
|
||||
Emerging markets
|
|
14
|
|
|
23
|
|
|
—
|
|
|
37
|
|
||||
Debt securities:
|
||||||||||||||||
U.S. investment grade bonds
|
|
17
|
|
|
14
|
|
|
—
|
|
|
31
|
|
||||
U.S. high yield bonds
|
|
—
|
|
|
21
|
|
|
—
|
|
|
21
|
|
||||
Non-U.S. investment grade bonds
|
|
—
|
|
|
14
|
|
|
—
|
|
|
14
|
|
||||
Real estate investment trusts
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||
Hedge funds
|
|
—
|
|
|
—
|
|
|
20
|
|
|
20
|
|
||||
Pooled pension funds
|
|
—
|
|
|
126
|
|
|
—
|
|
|
126
|
|
||||
Cash equivalents
|
|
20
|
|
|
—
|
|
|
—
|
|
|
20
|
|
||||
Total
|
|
$
|
245
|
|
|
$
|
277
|
|
|
$
|
22
|
|
|
$
|
544
|
|
Asset Category
|
|
Real Estate Investment Trusts
|
|
Hedge Funds
|
||||
|
|
(in millions)
|
||||||
Balance at January 1, 2012
|
|
$
|
11
|
|
|
$
|
12
|
|
Actual return on plan assets:
|
|
|
|
|
||||
Relating to assets still held at the reporting date
|
|
—
|
|
|
1
|
|
||
Purchases
|
|
1
|
|
|
5
|
|
||
Balance at December 31, 2012
|
|
12
|
|
|
18
|
|
||
Actual return on plan assets:
|
|
|
|
|
|
|
||
Relating to assets still held at the reporting date
|
|
—
|
|
|
2
|
|
||
Purchases
|
|
2
|
|
|
—
|
|
||
Sales
|
|
(12
|
)
|
|
—
|
|
||
Balance at December 31, 2013
|
|
2
|
|
|
20
|
|
||
Actual return on plan assets:
|
|
|
|
|
||||
Relating to assets still held at the reporting date
|
|
1
|
|
|
1
|
|
||
Purchases
|
|
11
|
|
|
—
|
|
||
Sales
|
|
—
|
|
|
—
|
|
||
Balance at December 31, 2014
|
|
$
|
14
|
|
|
$
|
21
|
|
|
2014
|
|
2013
|
||||
|
(in millions)
|
||||||
Benefit obligation, January 1
|
$
|
18
|
|
|
$
|
20
|
|
Interest cost
|
1
|
|
|
1
|
|
||
Benefits paid
|
(4
|
)
|
|
(4
|
)
|
||
Participant contributions
|
3
|
|
|
2
|
|
||
Actuarial gain
|
—
|
|
|
(1
|
)
|
||
Benefit obligation, December 31
|
$
|
18
|
|
|
$
|
18
|
|
|
2014
|
|
2013
|
||
Discount rates
|
3.60
|
%
|
|
4.25
|
%
|
Healthcare cost increase rates:
|
|
|
|
||
Next year trend rate
|
6.00
|
|
|
6.00
|
|
Ultimate trend rate
|
5.00
|
|
|
5.00
|
|
Years to ultimate trend rate
|
4
|
|
|
2
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
(in millions)
|
||||||||||
Net unrealized defined benefit losses at January 1
|
$
|
(46
|
)
|
|
$
|
(91
|
)
|
|
$
|
(75
|
)
|
Net gains (losses)
|
(37
|
)
|
|
71
|
|
|
(23
|
)
|
|||
Prior service credit
|
(1
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|||
Income tax (provision) benefit
|
13
|
|
|
(24
|
)
|
|
9
|
|
|||
Net unrealized defined benefit losses at December 31
|
$
|
(71
|
)
|
|
$
|
(46
|
)
|
|
$
|
(91
|
)
|
|
2014
|
|
2013
|
||||
|
(in millions)
|
||||||
Commercial mortgage loans
|
$
|
55
|
|
|
$
|
71
|
|
Consumer mortgage loans
|
491
|
|
|
542
|
|
||
Consumer lines of credit
|
3
|
|
|
4
|
|
||
Affordable housing partnerships
|
124
|
|
|
137
|
|
||
Total funding commitments
|
$
|
673
|
|
|
$
|
754
|
|
•
|
Ameriprise interest and debt expense was allocated to all segments to more accurately reflect management’s assessment of capital allocation.
|
•
|
Interest accretion income from the intercompany transfer of former bank assets was eliminated for segment reporting resulting in this accretion no longer being allocated to the Annuities and Protection segments. The corresponding offset is no longer reported in the Corporate & Other segment.
|
•
|
Certain fixed wholesaling costs were reclassified from distribution expenses to general and administrative expense to improve consistency in our presentation of wholesaling distribution expense across all segments.
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
|
(in millions)
|
||||||
Advice & Wealth Management
|
$
|
10,220
|
|
|
$
|
9,571
|
|
Asset Management
|
7,509
|
|
|
7,223
|
|
||
Annuities
|
98,535
|
|
|
98,354
|
|
||
Protection
|
20,779
|
|
|
19,605
|
|
||
Corporate & Other
|
11,767
|
|
|
9,823
|
|
||
Total assets
|
$
|
148,810
|
|
|
$
|
144,576
|
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
(in millions)
|
||||||||||
Operating net revenues:
|
|||||||||||
Advice & Wealth Management
|
$
|
4,806
|
|
|
$
|
4,295
|
|
|
$
|
3,873
|
|
Asset Management
|
3,320
|
|
|
3,169
|
|
|
2,891
|
|
|||
Annuities
|
2,591
|
|
|
2,561
|
|
|
2,519
|
|
|||
Protection
|
2,287
|
|
|
2,186
|
|
|
2,087
|
|
|||
Corporate & Other
|
4
|
|
|
15
|
|
|
26
|
|
|||
Eliminations
(1)
|
(1,417
|
)
|
|
(1,369
|
)
|
|
(1,253
|
)
|
|||
Total segment operating revenues
|
11,591
|
|
|
10,857
|
|
|
10,143
|
|
|||
Net realized gains
|
37
|
|
|
7
|
|
|
7
|
|
|||
Revenue attributable to CIEs
|
651
|
|
|
345
|
|
|
71
|
|
|||
Market impact on IUL benefits, net
|
(11
|
)
|
|
(10
|
)
|
|
—
|
|
|||
Integration and restructuring charges
|
—
|
|
|
—
|
|
|
(4
|
)
|
|||
Total net revenues per consolidated statements of operations
|
$
|
12,268
|
|
|
$
|
11,199
|
|
|
$
|
10,217
|
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
(in millions)
|
||||||||||
Operating earnings:
|
|||||||||||
Advice & Wealth Management
|
$
|
792
|
|
|
$
|
592
|
|
|
$
|
434
|
|
Asset Management
|
788
|
|
|
691
|
|
|
535
|
|
|||
Annuities
|
633
|
|
|
629
|
|
|
530
|
|
|||
Protection
|
246
|
|
|
336
|
|
|
373
|
|
|||
Corporate & Other
|
(230
|
)
|
|
(229
|
)
|
|
(177
|
)
|
|||
Total segment operating earnings
|
2,229
|
|
|
2,019
|
|
|
1,695
|
|
|||
Net realized gains
|
37
|
|
|
7
|
|
|
7
|
|
|||
Net income (loss) attributable to noncontrolling interests
|
381
|
|
|
141
|
|
|
(128
|
)
|
|||
Market impact on variable annuity guaranteed benefits, net
|
(94
|
)
|
|
(170
|
)
|
|
(265
|
)
|
|||
Market impact on IUL benefits, net
|
(6
|
)
|
|
(13
|
)
|
|
—
|
|
|||
Integration and restructuring charges
|
—
|
|
|
(14
|
)
|
|
(71
|
)
|
|||
Income from continuing operations before income tax provision per consolidated statements of operations
|
$
|
2,547
|
|
|
$
|
1,970
|
|
|
$
|
1,238
|
|
|
2014
|
|
2013
|
||||||||||||||||||||||||||||
|
12/31
|
|
9/30
|
|
6/30
|
|
3/31
|
|
12/31
|
|
9/30
|
|
6/30
|
|
3/31
|
||||||||||||||||
|
(in millions, except per share data)
|
||||||||||||||||||||||||||||||
Net revenues
|
$
|
3,089
|
|
|
$
|
3,111
|
|
|
$
|
3,072
|
|
|
$
|
2,996
|
|
|
$
|
2,946
|
|
|
$
|
2,813
|
|
|
$
|
2,749
|
|
|
$
|
2,691
|
|
Income from continuing operations before income tax provision
|
558
|
|
|
720
|
|
|
619
|
|
|
650
|
|
|
479
|
|
|
602
|
|
|
402
|
|
|
487
|
|
||||||||
Income from continuing operations
|
454
|
|
|
565
|
|
|
467
|
|
|
516
|
|
|
382
|
|
|
448
|
|
|
282
|
|
|
366
|
|
||||||||
Income (loss) from discontinued operations, net of tax
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(2
|
)
|
|
1
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||
Net income
|
453
|
|
|
565
|
|
|
467
|
|
|
515
|
|
|
380
|
|
|
449
|
|
|
281
|
|
|
365
|
|
||||||||
Less: Net income (loss) attributable to noncontrolling interests
|
28
|
|
|
145
|
|
|
93
|
|
|
115
|
|
|
84
|
|
|
67
|
|
|
(40
|
)
|
|
30
|
|
||||||||
Net income attributable to Ameriprise Financial
|
$
|
425
|
|
|
$
|
420
|
|
|
$
|
374
|
|
|
$
|
400
|
|
|
$
|
296
|
|
|
$
|
382
|
|
|
$
|
321
|
|
|
$
|
335
|
|
|
|||||||||||||||||||||||||||||||
Earnings per share attributable to Ameriprise Financial, Inc. common shareholders:
|
|||||||||||||||||||||||||||||||
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Income from continuing operations
|
$
|
2.27
|
|
|
$
|
2.21
|
|
|
$
|
1.94
|
|
|
$
|
2.05
|
|
|
$
|
1.50
|
|
|
$
|
1.90
|
|
|
$
|
1.57
|
|
|
$
|
1.61
|
|
Income (loss) from discontinued operations
|
(0.01
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net income
|
$
|
2.26
|
|
|
$
|
2.21
|
|
|
$
|
1.94
|
|
|
$
|
2.05
|
|
|
$
|
1.49
|
|
|
$
|
1.90
|
|
|
$
|
1.57
|
|
|
$
|
1.61
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Income from continuing operations
|
$
|
2.23
|
|
|
$
|
2.17
|
|
|
$
|
1.91
|
|
|
$
|
2.01
|
|
|
$
|
1.47
|
|
|
$
|
1.86
|
|
|
$
|
1.54
|
|
|
$
|
1.58
|
|
Income (loss) from discontinued operations
|
(0.01
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net income
|
$
|
2.22
|
|
|
$
|
2.17
|
|
|
$
|
1.91
|
|
|
$
|
2.01
|
|
|
$
|
1.46
|
|
|
$
|
1.86
|
|
|
$
|
1.54
|
|
|
$
|
1.58
|
|
|
|||||||||||||||||||||||||||||||
Weighted average common shares outstanding:
|
|||||||||||||||||||||||||||||||
Basic
|
187.9
|
|
|
190.3
|
|
|
192.7
|
|
|
195.5
|
|
|
198.3
|
|
|
201.3
|
|
|
204.9
|
|
|
208.4
|
|
||||||||
Diluted
|
191.2
|
|
|
193.7
|
|
|
196.2
|
|
|
199.1
|
|
|
202.3
|
|
|
205.1
|
|
|
208.6
|
|
|
212.3
|
|
||||||||
Cash dividends declared per common share
|
$
|
0.58
|
|
|
$
|
0.58
|
|
|
$
|
0.58
|
|
|
$
|
0.52
|
|
|
$
|
0.52
|
|
|
$
|
0.52
|
|
|
$
|
0.52
|
|
|
$
|
0.45
|
|
Common share price:
|
|||||||||||||||||||||||||||||||
High
|
137.33
|
|
|
128.51
|
|
|
120.32
|
|
|
116.82
|
|
|
115.36
|
|
|
94.45
|
|
|
84.29
|
|
|
75.14
|
|
||||||||
Low
|
105.41
|
|
|
116.02
|
|
|
100.94
|
|
|
101.29
|
|
|
89.37
|
|
|
80.49
|
|
|
69.35
|
|
|
63.59
|
|
•
|
Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
|
•
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
|
•
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
|
•
|
information included under the caption “Items to be Voted on by Shareholders-Item 1-Election of Directors”;
|
•
|
information included under the caption “Requirements, Including Deadlines, for Submission of Proxy Proposals, Nomination of Directors and Other Business of Shareholders”;
|
•
|
information under the caption “Corporate Governance-Codes of Conduct”;
|
•
|
information included under the caption “Corporate Governance-Membership on Board Committees”;
|
•
|
information under the caption “Corporate Governance-Nominating and Governance Committee-Director Nomination Process”;
|
•
|
information included under the caption “Corporate Governance-Audit Committee”;
|
•
|
information included under the caption “Corporate Governance-Audit Committee Financial Experts”; and
|
•
|
information under the caption “Section 16(a) Beneficial Ownership Reporting Compliance.”
|
•
|
information under the caption “Corporate Governance-Compensation and Benefits Committee-Compensation Committee Interlocks and Insider Participation”;
|
•
|
information included under the caption “Compensation of Executive Officers”; and
|
•
|
information included under the caption “Compensation of Directors.”
|
|
(a)
|
|
(b)
|
|
(c)
|
|
||||
|
Number of securities to be issued upon exercise of outstanding options, warrants and rights
|
|
Weighted-average exercise price of outstanding options, warrants and rights
|
|
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) – shares
|
|
||||
Plan category
|
|
|
|
|
|
|
|
|
||
Equity compensation plans approved by security holders
|
9,164,205
|
|
(1)
|
$
|
65.25
|
|
|
18,535,585
|
|
|
Equity compensation plans not approved by security holders
|
2,930,248
|
|
(2)
|
$
|
47.50
|
|
|
6,902,384
|
|
(3)
|
Total
|
12,094,453
|
|
|
$
|
65.07
|
|
|
25,437,969
|
|
|
Schedule I — Condensed Financial Information of Registrant
Condensed Statements of Operations
(Parent Company Only)
|
|||||||||||
|
Years Ended December 31,
|
||||||||||
2014
|
|
2013
|
|
2012
|
|||||||
|
(in millions)
|
||||||||||
Revenues
|
|
|
|
|
|
||||||
Management and financial advice fees
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
1
|
|
Distribution fees
|
—
|
|
|
1
|
|
|
—
|
|
|||
Net investment income
|
30
|
|
|
33
|
|
|
29
|
|
|||
Other revenues
|
11
|
|
|
7
|
|
|
9
|
|
|||
Total revenues
|
41
|
|
|
45
|
|
|
39
|
|
|||
Banking and deposit interest expense
|
—
|
|
|
—
|
|
|
3
|
|
|||
Total net revenues
|
41
|
|
|
45
|
|
|
36
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|||
Benefits, claims, losses and settlement expenses
|
11
|
|
|
19
|
|
|
—
|
|
|||
Distribution expenses
|
—
|
|
|
—
|
|
|
(5
|
)
|
|||
Interest and debt expense
|
118
|
|
|
123
|
|
|
94
|
|
|||
General and administrative expense
|
195
|
|
|
221
|
|
|
255
|
|
|||
Total expenses
|
324
|
|
|
363
|
|
|
344
|
|
|||
Pretax loss before equity in earnings of subsidiaries
|
(283
|
)
|
|
(318
|
)
|
|
(308
|
)
|
|||
Income tax benefit
|
(88
|
)
|
|
(85
|
)
|
|
(104
|
)
|
|||
Loss before equity in earnings of subsidiaries
|
(195
|
)
|
|
(233
|
)
|
|
(204
|
)
|
|||
Equity in earnings of subsidiaries excluding discontinued operations
|
1,816
|
|
|
1,570
|
|
|
1,235
|
|
|||
Net income from continuing operations
|
1,621
|
|
|
1,337
|
|
|
1,031
|
|
|||
Loss from discontinued operations, net of tax
|
(2
|
)
|
|
(3
|
)
|
|
(2
|
)
|
|||
Net income
|
$
|
1,619
|
|
|
$
|
1,334
|
|
|
$
|
1,029
|
|
See Notes to Condensed Financial Information of Registrant.
|
(Parent Company Only)
|
|||||||||||
|
Years Ended December 31,
|
||||||||||
2014
|
|
2013
|
|
2012
|
|||||||
|
(in millions)
|
||||||||||
Cash Flows from Operating Activities
|
|
|
|
|
|
||||||
Net income
|
$
|
1,619
|
|
|
$
|
1,334
|
|
|
$
|
1,029
|
|
Equity in earnings of subsidiaries excluding discontinued operations
|
(1,816
|
)
|
|
(1,570
|
)
|
|
(1,235
|
)
|
|||
Loss from discontinued operations, net of tax
|
2
|
|
|
3
|
|
|
2
|
|
|||
Dividends received from subsidiaries
|
1,569
|
|
|
1,163
|
|
|
1,366
|
|
|||
Other operating activities, primarily with subsidiaries
|
614
|
|
|
(34
|
)
|
|
197
|
|
|||
Net cash provided by operating activities
|
1,988
|
|
|
896
|
|
|
1,359
|
|
|||
Cash Flows from Investing Activities
|
|
|
|
|
|
||||||
Available-for-Sale securities:
|
|
|
|
|
|
||||||
Proceeds from sales
|
62
|
|
|
2
|
|
|
—
|
|
|||
Maturities, sinking fund payments and calls
|
284
|
|
|
191
|
|
|
30
|
|
|||
Purchases
|
(756
|
)
|
|
(109
|
)
|
|
—
|
|
|||
Proceeds from sale of other investments
|
—
|
|
|
43
|
|
|
1
|
|
|||
Purchase of other investments
|
(50
|
)
|
|
(1
|
)
|
|
(55
|
)
|
|||
Purchase of land, buildings, equipment and software
|
(40
|
)
|
|
(54
|
)
|
|
(38
|
)
|
|||
Contributions to subsidiaries
|
(31
|
)
|
|
(106
|
)
|
|
(131
|
)
|
|||
Return of capital from subsidiaries
|
284
|
|
|
470
|
|
|
347
|
|
|||
Repayment of loans to subsidiaries
|
3,402
|
|
|
1,420
|
|
|
1,150
|
|
|||
Issuance of loans to subsidiaries
|
(3,112
|
)
|
|
(1,412
|
)
|
|
(994
|
)
|
|||
Other, net
|
99
|
|
|
20
|
|
|
(16
|
)
|
|||
Net cash provided by investing activities
|
142
|
|
|
464
|
|
|
294
|
|
|||
Cash Flows from Financing Activities
|
|
|
|
|
|
||||||
Dividends paid to shareholders
|
(426
|
)
|
|
(401
|
)
|
|
(305
|
)
|
|||
Repurchase of common shares
|
(1,577
|
)
|
|
(1,583
|
)
|
|
(1,381
|
)
|
|||
Cash paid for purchased options with deferred premiums
|
(388
|
)
|
|
(4
|
)
|
|
—
|
|
|||
Cash received for purchased options with deferred premiums
|
59
|
|
|
23
|
|
|
—
|
|
|||
Issuances of debt, net of issuance costs
|
543
|
|
|
744
|
|
|
—
|
|
|||
Repayments of debt
|
(200
|
)
|
|
(350
|
)
|
|
—
|
|
|||
Loans from subsidiaries
|
15
|
|
|
—
|
|
|
—
|
|
|||
Repayment of loans from subsidiaries
|
(15
|
)
|
|
—
|
|
|
—
|
|
|||
Exercise of stock options
|
33
|
|
|
118
|
|
|
160
|
|
|||
Excess tax benefits from share-based compensation
|
162
|
|
|
120
|
|
|
64
|
|
|||
Other, net
|
(4
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|||
Net cash used in financing activities
|
(1,798
|
)
|
|
(1,335
|
)
|
|
(1,465
|
)
|
|||
Net increase in cash and cash equivalents
|
332
|
|
|
25
|
|
|
188
|
|
|||
Cash and cash equivalents at beginning of year
|
925
|
|
|
900
|
|
|
712
|
|
|||
Cash and cash equivalents at end of year
|
$
|
1,257
|
|
|
$
|
925
|
|
|
$
|
900
|
|
Supplemental Disclosures:
|
|||||||||||
Interest paid on debt
|
$
|
145
|
|
|
$
|
129
|
|
|
$
|
139
|
|
Income taxes paid, net
|
482
|
|
|
354
|
|
|
170
|
|
|||
Non-cash dividends from subsidiaries
|
152
|
|
|
—
|
|
|
—
|
|
|||
Non-cash contributions to subsidiaries
|
51
|
|
|
—
|
|
|
—
|
|
|||
See Notes to Condensed Financial Information of Registrant.
|
•
|
At both
December 31, 2014
and
2013
, the debt of Ameriprise Financial included
$50 million
of repurchase agreements, which are accounted for as secured borrowings.
|
•
|
As of
December 31, 2014
and
2013
, Ameriprise Financial had
$150 million
and
$450 million
, respectively, of borrowings from the Federal Home Loan Bank of Des Moines (“FHLB”), which is collateralized with commercial mortgage backed securities.
|
3.1
|
Amended Restated Certificate of Incorporation of Ameriprise Financial, Inc. (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K, File No. 1-32525, filed on May 1, 2014).
|
3.2
|
Amended and Restated Bylaws of Ameriprise Financial, Inc. (incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K, File No. 1-32525, filed on May 1, 2014).
|
4.1
|
Form of Specimen Common Stock Certificate (incorporated by reference to Exhibit 4.1 to Amendment No. 3 to Form 10 Registration Statement, File No. 1-32525, filed on August 19, 2005).
|
4.2
|
Indenture dated as of October 5, 2005, between Ameriprise Financial, Inc. and U.S. Bank National Association, trustee (incorporated by reference to Exhibit 4(a) to the Registration Statement on Form S-3, File No. 333-128834, filed on October 5, 2005).
|
4.3
|
Indenture dated as of May 5, 2006, between Ameriprise Financial, Inc. and U.S. Bank National Association, trustee (incorporated by reference to Exhibit 4.A to the Registration Statement on Form S-3ASR, File No. 333-133860, filed on May 5, 2006).
|
4.4
|
Junior Subordinated Debt Indenture, dated as of May 5, 2006, between Ameriprise Financial, Inc. and U.S. Bank National Association, trustee (incorporated by reference to Exhibit 4.C to the Registration Statement on Form S-3ASR, File No. 333-133860, filed on May 5, 2006).
|
10.1
|
Tax Allocation Agreement by and between American Express and Ameriprise Financial, Inc., dated as of September 30, 2005 (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, File No. 1-32525, filed on October 4, 2005).
|
10.2
|
Ameriprise Financial 2005 Incentive Compensation Plan, as amended and restated effective April 30, 2014 (incorporated by reference to Exhibit B to the Proxy Statement for the Annual Meeting of Shareholders held on April 30, 2014, File No. 001-32525, filed on March 17, 2014).
|
10.3
|
Ameriprise Financial Deferred Compensation Plan, as amended and restated effective January 1, 2012 (incorporated by reference to Exhibit 10.3 of the Annual Report on Form 10-K, File No. 1-32525, filed on February 24, 2012).
|
10.4
|
Ameriprise Financial Supplemental Retirement Plan, as amended and restated effective April 1, 2010 (incorporated by reference to Exhibit 10.3 of the Quarterly Report on Form 10-Q, File No. 1-32525, filed on May 4, 2010).
|
10.5
|
Form of Ameriprise Financial 2005 Incentive Compensation Plan Master Agreement for Substitution Awards (incorporated by reference to Exhibit 10.8 to Amendment No. 2 to Form 10 Registration Statement, File No. 1-32525, filed on August 15, 2005).
|
10.6
|
Ameriprise Financial Form of Award Certificate — Non-Qualified Stock Option Award (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K, File No. 1-32525, filed on October 4, 2005).
|
10.7
|
Ameriprise Financial Form of Award Certificate — Restricted Stock Award (incorporated by reference to Exhibit 10.5 to the Current Report on Form 8-K, File No. 1-32525, filed on October 4, 2005).
|
10.8
|
Ameriprise Financial Form of Award Certificate — Restricted Stock Unit Award (incorporated by reference to Exhibit 10.6 to the Current Report on Form 8-K, File No. 1-32525, filed on October 4, 2005).
|
10.9
|
Ameriprise Financial Form of Agreement — Cash Incentive Award (incorporated by reference to Exhibit 10.7 to the Current Report on Form 8-K, File No. 1-32525, filed on October 4, 2005).
|
10.10
|
Ameriprise Financial Long-Term Incentive Award Program Guide (incorporated by reference to Exhibit 10.10 of the Annual Report on Form 10-K, File No. 1-32525, filed on February 29, 2008).
|
10.11
|
Ameriprise Financial Performance Cash Unit Plan Supplement to the Long Term Incentive Award Program Guide (incorporated by reference to Exhibit 10.1 of the Quarterly Report on Form 10-Q, File No. 1-32525, filed on May 2, 2011).
|
10.12
|
Ameriprise Financial Form of Award Certificate — Performance Cash Unit Plan Award (incorporated by reference to Exhibit 10.2 of the Quarterly Report on Form 10-Q, File No. 1-32525, filed on May 2, 2011).
|
10.13
|
Ameriprise Financial Performance Share Unit Plan Supplement to the Long-Term Incentive Award Program Guide (incorporated by reference to Exhibit 10.3 of the Quarterly Report on Form 10-Q, File No. 1-32525, filed on May 2, 2011).
|
10.14
|
Ameriprise Financial Form of Award Certificate — Performance Share Unit Plan Award (incorporated by reference to Exhibit 10.4 of the Quarterly Report on Form 10-Q, File No. 1-32525, filed on May 2, 2011).
|
10.15*
|
Ameriprise Financial Deferred Share Plan for Outside Directors, as amended and restated effective December 3, 2014.
|
10.16
|
CEO Security and Compensation Arrangements (incorporated by reference to Item 1.01 of the Current Report on Form 8-K, File No. 1-32525, filed on October 31, 2005).
|
10.17
|
Ameriprise Financial Senior Executive Severance Plan, as amended and restated effective January 1, 2012 (incorporated by reference to Exhibit 10.17 of the Annual Report on Form 10-K, File No. 1-32525, filed on February 24, 2012).
|
10.18
|
Restricted Stock Awards in lieu of Key Executive Life Insurance Program (incorporated by reference to Item 1.01 of the Current Report on Form 8-K, File No. 1-32525, filed on November 18, 2005).
|
10.19
|
Ameriprise Financial Annual Incentive Award Plan, adopted effective as of September 30, 2005 (incorporated by reference to Exhibit 10.28 of the Annual Report on Form 10-K, File No. 1-32525, filed on March 8, 2006).
|
10.20
|
Form of Indemnification Agreement for directors, Chief Executive Officer, Chief Financial Officer, General Counsel and Principal Accounting Officer and any other officers designated by the Chief Executive Officer (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, File No. 1-32525, filed on April 26, 2012).
|
10.21
|
Ameriprise Financial 2008 Employment Incentive Equity Award Plan (incorporated by reference to Exhibit 4.1 to the Registration Statement on Form S-8, File No. 333-156075, filed on December 11, 2008).
|
10.22
|
Ameriprise Advisor Group Deferred Compensation Plan, as amended and restated effective January 1, 2012 (incorporated by reference to Exhibit 10.22 of the Annual Report on Form 10-K, File No. 1-32525, filed on February 27, 2013).
|
10.23
|
First Amendment to the Ameriprise Advisor Group Deferred Compensation Plan dated April 30, 2014 (incorporated by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q, File No. 1-32525, filed on May 5, 2014).
|
10.24
|
Second Amendment to the Ameriprise Advisor Group Deferred Compensation Plan dated August 13, 2014 (incorporated by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q, File No. 1-32525, filed on November 3, 2014).
|
10.25
|
Third Amendment to the Ameriprise Advisor Group Deferred Compensation Plan dated September 24, 2014 (incorporated by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q, File No. 1-32525, filed on November 3, 2014).
|
10.26
|
Amended and Restated Credit Agreement, dated as of September 30, 2013, among Ameriprise Financial, Inc., the lenders party thereto, Wells Fargo Bank, National Association, as Administrative Agent, Bank of America, N.A., as Syndication Agent, and Credit Suisse AG, Cayman Islands Branch, HSBC Bank USA, National Association, Citibank, N.A., and JPMorgan Chase Bank, N.A., as Co-Documentation Agents (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, File No. 1-32525, filed on October 1, 2013).
|
10.27
|
Capital Support Agreement by and between Ameriprise Financial, Inc. and Ameriprise Certificate Company, dated as of March 2, 2009 (incorporated by reference to Exhibit 10.19 of the Annual Report on Form 10-K, File No. 1-32525, filed on March 2, 2009).
|
12*
|
Ratio of Earnings to Fixed Charges.
|
13*
|
Portions of the Ameriprise Financial, Inc. 2014 Annual Report to Shareholders, which, except for those sections incorporated herein by reference, are furnished solely for the information of the SEC and are not to be deemed “filed.”
|
21*
|
Subsidiaries of Ameriprise Financial, Inc.
|
23*
|
Consent of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm.
|
24
|
Powers of attorney (included on Signature Page).
|
31.1*
|
Certification of James M. Cracchiolo pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
|
31.2*
|
Certification of Walter S. Berman pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
|
32*
|
Certification of James M. Cracchiolo and Walter S. Berman pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101*
|
The following materials from Ameriprise Financial, Inc.’s Annual Report on Form 10-K for the year ended
December 31, 2014
, formatted in XBRL: (i) Consolidated Statements of Operations for the years ended
December 31, 2014
,
2013
and
2012
; (ii) Consolidated Statements of Comprehensive Income for the years ended
December 31, 2014
,
2013
and
2012
; (iii) Consolidated Balance Sheets at
December 31, 2014
and
December 31, 2013
; (iv) Consolidated Statements of Equity for the years ended
December 31, 2014
,
2013
and
2012
; (v) Consolidated Statements of Cash Flows for the years ended
December 31, 2014
,
2013
and
2012
; and (vi) Notes to the Consolidated Financial Statements.
|
Subsidiary Name
|
|
Jurisdiction
|
Ameriprise Advisor Capital, LLC
|
|
DE
|
Ameriprise National Trust Bank
|
|
Federal
|
Ameriprise Capital Trust I
|
|
DE
|
Ameriprise Capital Trust II
|
|
DE
|
Ameriprise Capital Trust III
|
|
DE
|
Ameriprise Capital Trust IV
|
|
DE
|
Ameriprise Captive Insurance Company
|
|
VT
|
Ameriprise Certificate Company
|
|
DE
|
Investors Syndicate Development Corporation
|
|
NV
|
Ameriprise Holdings, Inc.
|
|
DE
|
201 Eleventh Street South, LLC
|
|
MN
|
Ameriprise India Private Limited
|
|
India
|
Ameriprise India Insurance Brokers Services Private Limited
|
|
India
|
Ameriprise International Holdings GmbH
|
|
Switzerland
|
Ameriprise Asset Management Holdings GmbH
|
|
Switzerland
|
Ameriprise Trust Company
|
|
MN
|
AMPF Holding Corporation
|
|
MI
|
American Enterprise Investment Services Inc.
|
|
MN
|
Ameriprise Financial Services, Inc.
|
|
DE
|
TIC TPS Portland 35, LLC
|
|
DE
|
AMPF Property Corporation
|
|
MI
|
AMPF Realty Corporation
|
|
MI
|
Columbia Management Investment Advisers, LLC
|
|
MN
|
Advisory Capital Strategies Group Inc.
|
|
MN
|
Columbia Wanger Asset Management, LLC
|
|
DE
|
GA Legacy, LLC
|
|
DE
|
J.& W. Seligman & Co. Incorporated
|
|
DE
|
Columbia Management Investment Distributors, Inc.
|
|
NY
|
Seligman Health Plus Partners LLC
|
|
DE
|
Seligman Partners LLC
|
|
DE
|
RiverSource CDO Seed Investment, LLC
|
|
MN
|
WAM Acquisition GP, Inc.
|
|
DE
|
Columbia Management Investment Services Corp.
|
|
MN
|
IDS Property Casualty Insurance Company
|
|
WI
|
Ameriprise Auto & Home Insurance Agency, Inc.
|
|
WI
|
Ameriprise Insurance Company
|
|
WI
|
RiverSource Distributors, Inc.
|
|
DE
|
RiverSource Life Insurance Company
|
|
MN
|
RiverSource Life Insurance Co. of New York
|
|
NY
|
RiverSource NY REO, LLC
|
|
NY
|
RiverSource REO 1, LLC
|
|
MN
|
RiverSource Tax Advantaged Investments, Inc.
|
|
DE
|
AEXP Affordable Housing Porfolio LLC
|
|
DE
|
Threadneedle EMEA Holdings 1, LLC
|
|
MN
|
Threadneedle Asset Management Holdings Sàrl
|
|
Luxembourg
|
Tam Investment Limited
|
|
UK
|
Threadneedle Asset Management Malaysia Sdn. Bhd.
|
|
Malaysia
|
Threadneedle Holdings Limited
|
|
UK
|
Subsidiary Name
|
|
Jurisdiction
|
Tam UK Holdings Limited
|
|
UK
|
Threadneedle Asset Management Holdings Limited
|
|
UK
|
TC Financing Limited
|
|
UK
|
Threadneedle Asset Management Limited
|
|
UK
|
Threadneedle Investment Services Limited
|
|
UK
|
Threadneedle Asset Management (Nominees) Limited
|
|
UK
|
ADT Nominees Limited
|
|
UK
|
Convivo Asset Management Limited
|
|
UK
|
Sackville Tipp Property (GP) Limited
|
|
UK
|
Threadneedle Investment Advisors Limited
|
|
UK
|
Threadneedle Portfolio Managers Limited
|
|
UK
|
Threadneedle Asset Management Finance Limited
|
|
UK
|
Threadneedle International Property Fund SICAV - FIS (In Liquidation)
|
|
Luxembourg
|
TMS Investment Limited
|
|
Jersey
|
Threadneedle International Fund Management Limited
|
|
UK
|
Threadneedle International Limited
|
|
UK
|
Threadneedle Investment Services Gmbh
|
|
Germany
|
Threadneedle Investments (Channel Islands) Limited
|
|
Jersey
|
Threadneedle Investments Limited
|
|
UK
|
Threadneedle Management Services Limited
|
|
UK
|
Threadneedle Capital Management Limited
|
|
UK
|
Threadneedle Pension Trustees Limited
|
|
UK
|
Threadneedle Securities Limited
|
|
UK
|
Threadneedle Navigator Isa Manager Limited
|
|
UK
|
Threadneedle Pensions Limited
|
|
UK
|
Sackville (TPEN)
|
|
UK
|
Threadneedle Portfolio Services Limited
|
|
UK
|
Threadneedle Portfolio Services Ag
|
|
Switzerland
|
Threadneedle Property Investments Limited
|
|
UK
|
Sackville LCW (GP) Limited
|
|
UK
|
Sackville LCW Sub LP 1 (GP) Limited
|
|
UK
|
Sackville LCW Nominee 1 Limited
|
|
UK
|
Sackville LCW Nominee 2 Limited
|
|
UK
|
Sackville Property (GP) Limited
|
|
UK
|
Sackville Property (GP) Nominee 1 Limited
|
|
UK
|
Sackville Property (GP) Nominee 2 Limited
|
|
UK
|
Sackville Property Hayes (Jersey GP) Limited
|
|
Jersey
|
Sackville UKPEC6 Hayes Nominee 1 Limited
|
|
UK
|
Sackville UKPEC 6 Hayes Nominee 2 Limited
|
|
UK
|
Sackville Property Tower (Jersey GP) Limited
|
|
Jersey
|
Sackville UKPEC7 Tower Nominee 1 Limited
|
|
UK
|
Sackville UKPEC7 Tower Nominee 2 Limited
|
|
UK
|
Sackville SPF IV (GP) No.1 Limited
|
|
UK
|
Sackville SPF IV Property Nominee (1) Limited
|
|
UK
|
Sackville SPF F IV Property Nominee (2) Limited
|
|
UK
|
Sackville SPF IV (GP) No.2 Limited
|
|
UK
|
Sackville SPF IV Property Nominee (3) Limited
|
|
UK
|
Sackville SPF IV Property Nominee (4) Limited
|
|
UK
|
Subsidiary Name
|
|
Jurisdiction
|
Sackville SPF IV (GP) No.3 Limited
|
|
UK
|
Sackville SPF IV Property Nominee (5) Limited
|
|
UK
|
Sackville SPF IV Property Nominee (6) Limited
|
|
UK
|
Sackville SPF IV Property (GP) Limited
|
|
UK
|
Sackville Tandem Property (GP) Limited
|
|
UK
|
Sackville Tandem Property Nominee Limited
|
|
UK
|
Sackville TPEN Property (GP) Limited
|
|
UK
|
Sackville TPEN Property Nominee (2) Limited
|
|
UK
|
Sackville TPEN Property Nominee Limited
|
|
UK
|
Sackville (TPEN)
|
|
UK
|
Sackville TSP Property (GP) Limited
|
|
UK
|
Sackville TSP Property Nominee Limited
|
|
UK
|
Sackville UK Property Select II (GP) Limited
|
|
UK
|
Sackville UK Property Select II (GP) No. 2 Limited
|
|
UK
|
Sackville UK Property Select II Nominee (2) Limited
|
|
UK
|
Sackville UK Property Select II (GP) No. 3 Limited
|
|
UK
|
Sackville UK Property Select II Nominee (3) Limited
|
|
UK
|
Sackville UK Property Select II (GP) No.1 Limited
|
|
UK
|
Sackville UK Property Select II Nominee (1) Limited
|
|
UK
|
Sackville UKPEC1 Leeds (GP) Limited
|
|
UK
|
Sackville UKPEC 1 Leeds Nominee 1 Limited
|
|
UK
|
Sackville UKPEC 1 Leeds Nominee 2 Limited
|
|
UK
|
Sackville UKPEC 2 Galahad (GP) Limited
|
|
UK
|
Sackville UKPEC 2 Galahad Nominee 1 Limited
|
|
UK
|
Sackville UKPEC 2 Galahad Nominee 2 Limited
|
|
UK
|
Voyager Park North Management Company Limited
|
|
UK
|
Sackville UKPEC 3 Croxley (GP) Limited
|
|
UK
|
Sackville UKPEC 3 Croxley Nominee 1 Limited
|
|
UK
|
Sackville UKPEC 3 Croxley Nominee 2 Limited
|
|
UK
|
Sackville UKPEC 4 Brentford (GP) Limited
|
|
UK
|
Sackville UKPEC 4 Brentford Nominee 1 Limited
|
|
UK
|
Sackville UKPEC4 Brentford Nominee 2 Limited
|
|
UK
|
Sackville UKPEC 5 Kensington (GP) Limited
|
|
UK
|
Sackville UKPEC 5 Kensington Nominee 1 Limited
|
|
UK
|
Sackville UKPEC 5 Kensington Nominee 2 Limited
|
|
UK
|
Threadneedle UK Property Equity Club PCC
|
|
Jersey
|
Threadneedle UK Property Equity Club 7 PC
|
|
Jersey
|
Threadneedle UK Property Equity Club 8 PC
|
|
Jersey
|
Threadneedle Unit Trust Manager Limited
|
|
UK
|
Threadneedle International Investments GMBH
|
|
Switzerland
|
Threadneedle Investments Singapore (Pte.) Limited
|
|
Singapore
|
Threadneedle Investments Taiwan Limited
|
|
Taiwan
|
Threadneedle Management Luxembourg S.A.
|
|
Luxembourg
|
Threadneedle Portfolio Services Hong Kong Limited
|
|
Hong Kong
|
Threadneedle UKPEC7 Tower Jersey LP
|
|
Jersey
|
Threadneedle UKPEC8 Victoria Jersey LP
|
|
Jersey
|
•
|
Registration Statement (Form S-3 No. 333-128834) of Ameriprise Financial, Inc.,
|
•
|
Registration Statement (Form S-8 No. 333-128789 and No. 333-195690) pertaining to the Ameriprise Financial 2005 Incentive Compensation Plan,
|
•
|
Registration Statements (Form S-8 No. 333-128790 and No. 333-156074) pertaining to the Ameriprise Financial 401(k) Plan,
|
•
|
Registration Statements (Form S-8 No. 333-128791, No. 333-150677 and No. 333-181008) pertaining to the Ameriprise Financial Franchise Advisor Deferred Compensation Plan (formerly the Ameriprise Financial Deferred Equity Program for Independent Financial Advisors),
|
•
|
Registration Statement (Form S-8 No. 333-156075) pertaining to the Ameriprise Financial 2008 Employment Incentive Equity Award Plan,
|
•
|
Registration Statement (Form S-3ASR No. 333-181005) of Ameriprise Financial, Inc. and Ameriprise Capital Trusts I through IV, and
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Registration Statement (Form S-8 No. 333-159025) pertaining to the Ameriprise Advisor Group Deferred Compensation Plan;
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1.
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I have reviewed this Annual Report on Form 10-K of Ameriprise Financial, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: February 24, 2015
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By
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/s/ James M. Cracchiolo
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James M. Cracchiolo
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Chief Executive Officer
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1.
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I have reviewed this Annual Report on Form 10-K of Ameriprise Financial, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: February 24, 2015
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By
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/s/ Walter S. Berman
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Walter S. Berman
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Chief Financial Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date: February 24, 2015
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By
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/s/ James M. Cracchiolo
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James M. Cracchiolo
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Chief Executive Officer
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Date: February 24, 2015
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By
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/s/ Walter S. Berman
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Walter S. Berman
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Chief Financial Officer
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