|
x
|
QUARTERLY 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
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
|
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1099 Ameriprise Financial Center, Minneapolis, Minnesota
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55474
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(Address of principal executive offices)
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(Zip Code)
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Large Accelerated Filer
x
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Accelerated Filer
o
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Non-Accelerated Filer
o
(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Class
|
|
Outstanding at October 23, 2015
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Common Stock (par value $.01 per share)
|
|
174,111,562 shares
|
|
|
||||
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Financial Statements
(Unaudited)
|
|
||
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Consolidated Statements of Operations — Three months and nine months ended September 30, 2015 and 2014
|
3
|
|
|
|
Consolidated Statements of Comprehensive Income — Three months and nine months ended September 30, 2015 and 2014
|
4
|
|
|
|
Consolidated Balance Sheets — September 30, 2015 and December 31, 2014
|
5
|
|
|
|
Consolidated Statements of Equity — Nine months ended September 30, 2015 and 2014
|
6
|
|
|
|
Consolidated Statements of Cash Flows — Nine months ended September 30, 2015 and 2014
|
7
|
|
|
|
Notes to Consolidated Financial Statements
|
9
|
|
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
55
|
|
|
|
Quantitative and Qualitative Disclosures About Market Risk
|
96
|
|
|
|
Controls and Procedures
|
96
|
|
|
|
|
|
|
|
|
||||
|
Legal Proceedings
|
97
|
|
|
|
Risk Factors
|
97
|
|
|
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
97
|
|
|
|
Exhibits
|
97
|
|
|
|
Signatures
|
98
|
|
|
|
Exhibit Index
|
E-1
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|||||
Management and financial advice fees
|
$
|
1,465
|
|
|
$
|
1,483
|
|
|
$
|
4,451
|
|
|
$
|
4,321
|
|
Distribution fees
|
451
|
|
|
464
|
|
|
1,389
|
|
|
1,410
|
|
||||
Net investment income
|
321
|
|
|
428
|
|
|
1,228
|
|
|
1,332
|
|
||||
Premiums
|
360
|
|
|
351
|
|
|
1,081
|
|
|
1,026
|
|
||||
Other revenues
|
296
|
|
|
392
|
|
|
939
|
|
|
1,111
|
|
||||
Total revenues
|
2,893
|
|
|
3,118
|
|
|
9,088
|
|
|
9,200
|
|
||||
Banking and deposit interest expense
|
7
|
|
|
7
|
|
|
21
|
|
|
21
|
|
||||
Total net revenues
|
2,886
|
|
|
3,111
|
|
|
9,067
|
|
|
9,179
|
|
||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||
Distribution expenses
|
806
|
|
|
813
|
|
|
2,460
|
|
|
2,409
|
|
||||
Interest credited to fixed accounts
|
171
|
|
|
168
|
|
|
503
|
|
|
529
|
|
||||
Benefits, claims, losses and settlement expenses
|
471
|
|
|
458
|
|
|
1,547
|
|
|
1,414
|
|
||||
Amortization of deferred acquisition costs
|
133
|
|
|
116
|
|
|
302
|
|
|
281
|
|
||||
Interest and debt expense
|
98
|
|
|
79
|
|
|
271
|
|
|
237
|
|
||||
General and administrative expense
|
744
|
|
|
757
|
|
|
2,288
|
|
|
2,320
|
|
||||
Total expenses
|
2,423
|
|
|
2,391
|
|
|
7,371
|
|
|
7,190
|
|
||||
Income from continuing operations before income tax provision
|
463
|
|
|
720
|
|
|
1,696
|
|
|
1,989
|
|
||||
Income tax provision
|
111
|
|
|
155
|
|
|
389
|
|
|
441
|
|
||||
Income from continuing operations
|
352
|
|
|
565
|
|
|
1,307
|
|
|
1,548
|
|
||||
Loss from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Net income
|
352
|
|
|
565
|
|
|
1,307
|
|
|
1,547
|
|
||||
Less: Net income (loss) attributable to noncontrolling interests
|
(45
|
)
|
|
145
|
|
|
102
|
|
|
353
|
|
||||
Net income attributable to Ameriprise Financial
|
$
|
397
|
|
|
$
|
420
|
|
|
$
|
1,205
|
|
|
$
|
1,194
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share attributable to Ameriprise Financial, Inc. common shareholders
|
|||||||||||||||
Basic
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income from continuing operations
|
$
|
2.20
|
|
|
$
|
2.21
|
|
|
$
|
6.57
|
|
|
$
|
6.20
|
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
||||
Net income
|
$
|
2.20
|
|
|
$
|
2.21
|
|
|
$
|
6.57
|
|
|
$
|
6.19
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income from continuing operations
|
$
|
2.17
|
|
|
$
|
2.17
|
|
|
$
|
6.48
|
|
|
$
|
6.09
|
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
||||
Net income
|
$
|
2.17
|
|
|
$
|
2.17
|
|
|
$
|
6.48
|
|
|
$
|
6.08
|
|
|
|
|
|
|
|
|
|
||||||||
Cash dividends declared per common share
|
$
|
0.67
|
|
|
$
|
0.58
|
|
|
$
|
1.92
|
|
|
$
|
1.68
|
|
|
|
|
|
|
|
|
|
||||||||
Supplemental Disclosures:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total other-than-temporary impairment losses on securities
|
$
|
(7
|
)
|
|
$
|
(5
|
)
|
|
$
|
(8
|
)
|
|
$
|
(6
|
)
|
Portion of loss recognized in other comprehensive income (before taxes)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net impairment losses recognized in net investment income
|
$
|
(7
|
)
|
|
$
|
(5
|
)
|
|
$
|
(8
|
)
|
|
$
|
(6
|
)
|
See Notes to Consolidated Financial Statements.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
352
|
|
|
$
|
565
|
|
|
$
|
1,307
|
|
|
$
|
1,547
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency translation adjustment
|
(65
|
)
|
|
(84
|
)
|
|
(50
|
)
|
|
(31
|
)
|
||||
Net unrealized gains (losses) on securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net unrealized securities gains (losses) arising during the period
|
(76
|
)
|
|
(137
|
)
|
|
(365
|
)
|
|
341
|
|
||||
Reclassification of net securities (gains) losses included in net income
|
6
|
|
|
(4
|
)
|
|
(4
|
)
|
|
(8
|
)
|
||||
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables
|
51
|
|
|
(1
|
)
|
|
183
|
|
|
(168
|
)
|
||||
Total net unrealized gains (losses) on securities
|
(19
|
)
|
|
(142
|
)
|
|
(186
|
)
|
|
165
|
|
||||
Net unrealized gains on derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reclassification of net derivative losses included in net income
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
||||
Total net unrealized gains on derivatives
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
||||
Total other comprehensive income (loss), net of tax
|
(83
|
)
|
|
(225
|
)
|
|
(235
|
)
|
|
135
|
|
||||
Total comprehensive income
|
269
|
|
|
340
|
|
|
1,072
|
|
|
1,682
|
|
||||
Less: Comprehensive income (loss) attributable to noncontrolling interests
|
(89
|
)
|
|
94
|
|
|
68
|
|
|
337
|
|
||||
Comprehensive income attributable to Ameriprise Financial
|
$
|
358
|
|
|
$
|
246
|
|
|
$
|
1,004
|
|
|
$
|
1,345
|
|
See Notes to Consolidated Financial Statements.
|
|
September 30, 2015
|
|
December 31, 2014
|
||||
Assets
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
2,780
|
|
|
$
|
2,638
|
|
Cash of consolidated investment entities
|
790
|
|
|
390
|
|
||
Investments
|
34,746
|
|
|
35,582
|
|
||
Investments of consolidated investment entities, at fair value
|
6,977
|
|
|
6,148
|
|
||
Separate account assets
|
78,636
|
|
|
83,256
|
|
||
Receivables
|
5,187
|
|
|
4,887
|
|
||
Receivables of consolidated investment entities (includes $65 and $49, respectively, at fair value)
|
102
|
|
|
140
|
|
||
Deferred acquisition costs
|
2,634
|
|
|
2,608
|
|
||
Restricted and segregated cash and investments
|
2,703
|
|
|
2,614
|
|
||
Other assets
|
8,625
|
|
|
8,611
|
|
||
Other assets of consolidated investment entities (includes $2,129 and $1,936, respectively, at fair value)
|
2,140
|
|
|
1,936
|
|
||
Total assets
|
$
|
145,320
|
|
|
$
|
148,810
|
|
|
|
|
|
||||
Liabilities and Equity
|
|
|
|
|
|
||
Liabilities:
|
|
|
|
|
|
||
Policyholder account balances, future policy benefits and claims
|
$
|
30,046
|
|
|
$
|
30,350
|
|
Separate account liabilities
|
78,636
|
|
|
83,256
|
|
||
Customer deposits
|
8,046
|
|
|
7,664
|
|
||
Short-term borrowings
|
200
|
|
|
200
|
|
||
Long-term debt
|
3,019
|
|
|
3,062
|
|
||
Debt of consolidated investment entities (includes $6,976 and $6,030, respectively, at fair value)
|
7,926
|
|
|
6,867
|
|
||
Accounts payable and accrued expenses
|
1,435
|
|
|
1,482
|
|
||
Accounts payable and accrued expenses of consolidated investment entities
|
62
|
|
|
41
|
|
||
Other liabilities
|
6,567
|
|
|
6,357
|
|
||
Other liabilities of consolidated investment entities (includes $529 and $193, respectively, at fair value)
|
562
|
|
|
226
|
|
||
Total liabilities
|
136,499
|
|
|
139,505
|
|
||
Equity:
|
|
|
|
|
|
||
Ameriprise Financial, Inc.:
|
|
|
|
|
|
||
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 322,742,143 and 320,990,255, respectively)
|
3
|
|
|
3
|
|
||
Additional paid-in capital
|
7,557
|
|
|
7,345
|
|
||
Retained earnings
|
9,319
|
|
|
8,469
|
|
||
Appropriated retained earnings of consolidated investment entities
|
174
|
|
|
234
|
|
||
Treasury shares, at cost (147,720,668 and 137,880,746 shares, respectively)
|
(9,885
|
)
|
|
(8,589
|
)
|
||
Accumulated other comprehensive income, net of tax
|
461
|
|
|
662
|
|
||
Total Ameriprise Financial, Inc. shareholders’ equity
|
7,629
|
|
|
8,124
|
|
||
Noncontrolling interests
|
1,192
|
|
|
1,181
|
|
||
Total equity
|
8,821
|
|
|
9,305
|
|
||
Total liabilities and equity
|
$
|
145,320
|
|
|
$
|
148,810
|
|
See Notes to Consolidated Financial Statements.
|
|
Ameriprise Financial, Inc.
|
|
|
|
|
|||||||||||||||||||||||||||||||||
|
Number of
Outstanding Shares |
|
Common
Shares |
|
Additional
Paid-In Capital |
|
Retained
Earnings |
|
Appropriated
Retained Earnings of Consolidated Investment Entities |
|
Treasury
Shares |
|
Accumulated
Other Com- prehensive Income |
|
Total
Ameriprise Financial, Inc. Share- holders’ Equity |
|
Non-controlling
Interests |
|
Total
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Balances at
January 1, 2014 |
192,118,307
|
|
|
$
|
3
|
|
|
$
|
6,929
|
|
|
$
|
7,289
|
|
|
$
|
337
|
|
|
$
|
(6,961
|
)
|
|
$
|
595
|
|
|
$
|
8,192
|
|
|
$
|
1,040
|
|
|
$
|
9,232
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
1,194
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,194
|
|
|
353
|
|
|
1,547
|
|
|||||||||
Other comprehensive income (loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
151
|
|
|
151
|
|
|
(16
|
)
|
|
135
|
|
|||||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,345
|
|
|
337
|
|
|
1,682
|
|
||||||||||||||||
Net income reclassified to appropriated retained earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29
|
)
|
|
—
|
|
|
—
|
|
|
(29
|
)
|
|
29
|
|
|
—
|
|
|||||||||
Dividends to shareholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(326
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(326
|
)
|
|
—
|
|
|
(326
|
)
|
|||||||||
Noncontrolling interests investments in subsidiaries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
113
|
|
|
113
|
|
|||||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(448
|
)
|
|
(448
|
)
|
|||||||||
Repurchase of common shares
|
(11,505,559
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,309
|
)
|
|
—
|
|
|
(1,309
|
)
|
|
—
|
|
|
(1,309
|
)
|
|||||||||
Share-based compensation plans
|
4,780,391
|
|
|
—
|
|
|
303
|
|
|
(5
|
)
|
|
—
|
|
|
89
|
|
|
—
|
|
|
387
|
|
|
9
|
|
|
396
|
|
|||||||||
Balances at
September 30, 2014 |
185,393,139
|
|
|
$
|
3
|
|
|
$
|
7,232
|
|
|
$
|
8,152
|
|
|
$
|
308
|
|
|
$
|
(8,181
|
)
|
|
$
|
746
|
|
|
$
|
8,260
|
|
|
$
|
1,080
|
|
|
$
|
9,340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Balances at
January 1, 2015 |
183,109,509
|
|
|
$
|
3
|
|
|
$
|
7,345
|
|
|
$
|
8,469
|
|
|
$
|
234
|
|
|
$
|
(8,589
|
)
|
|
$
|
662
|
|
|
$
|
8,124
|
|
|
$
|
1,181
|
|
|
$
|
9,305
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
1,205
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,205
|
|
|
102
|
|
|
1,307
|
|
|||||||||
Other comprehensive loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(201
|
)
|
|
(201
|
)
|
|
(34
|
)
|
|
(235
|
)
|
|||||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,004
|
|
|
68
|
|
|
1,072
|
|
||||||||||||||||
Net income reclassified to appropriated retained earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(60
|
)
|
|
—
|
|
|
—
|
|
|
(60
|
)
|
|
60
|
|
|
—
|
|
|||||||||
Dividends to shareholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(355
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(355
|
)
|
|
—
|
|
|
(355
|
)
|
|||||||||
Noncontrolling interests investments in subsidiaries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
225
|
|
|
225
|
|
|||||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(342
|
)
|
|
(342
|
)
|
|||||||||
Repurchase of common shares
|
(10,882,885
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,362
|
)
|
|
—
|
|
|
(1,362
|
)
|
|
—
|
|
|
(1,362
|
)
|
|||||||||
Share-based compensation plans
|
2,794,851
|
|
|
—
|
|
|
212
|
|
|
—
|
|
|
—
|
|
|
66
|
|
|
—
|
|
|
278
|
|
|
—
|
|
|
278
|
|
|||||||||
Balances at
September 30, 2015 |
175,021,475
|
|
|
$
|
3
|
|
|
$
|
7,557
|
|
|
$
|
9,319
|
|
|
$
|
174
|
|
|
$
|
(9,885
|
)
|
|
$
|
461
|
|
|
$
|
7,629
|
|
|
$
|
1,192
|
|
|
$
|
8,821
|
|
See Notes to Consolidated Financial Statements.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in millions)
|
|||||||
|
Nine Months Ended September 30,
|
||||||
|
2015
|
|
2014
|
||||
|
|
|
|
||||
Cash Flows from Operating Activities
|
|
|
|
||||
Net income
|
$
|
1,307
|
|
|
$
|
1,547
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation, amortization and accretion, net
|
185
|
|
|
193
|
|
||
Deferred income tax benefit
|
(23
|
)
|
|
(75
|
)
|
||
Share-based compensation
|
108
|
|
|
97
|
|
||
Net realized investment gains
|
(14
|
)
|
|
(18
|
)
|
||
Net trading gains
|
(5
|
)
|
|
(6
|
)
|
||
Loss from equity method investments
|
22
|
|
|
10
|
|
||
Other-than-temporary impairments and provision for loan losses
|
9
|
|
|
8
|
|
||
Net gains of consolidated investment entities
|
(85
|
)
|
|
(337
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Restricted and segregated cash and investments
|
(88
|
)
|
|
(23
|
)
|
||
Deferred acquisition costs
|
38
|
|
|
28
|
|
||
Other investments, net
|
61
|
|
|
(152
|
)
|
||
Policyholder account balances, future policy benefits and claims, net
|
681
|
|
|
516
|
|
||
Derivatives, net of collateral
|
(180
|
)
|
|
(485
|
)
|
||
Receivables
|
(294
|
)
|
|
(346
|
)
|
||
Brokerage deposits
|
51
|
|
|
202
|
|
||
Accounts payable and accrued expenses
|
(41
|
)
|
|
52
|
|
||
Cash held by consolidated investment entities
|
(394
|
)
|
|
149
|
|
||
Investment properties of consolidated investment entities
|
(126
|
)
|
|
177
|
|
||
Other operating assets and liabilities of consolidated investment entities, net
|
54
|
|
|
39
|
|
||
Other, net
|
637
|
|
|
405
|
|
||
Net cash provided by operating activities
|
1,903
|
|
|
1,981
|
|
||
|
|
|
|
||||
Cash Flows from Investing Activities
|
|
|
|
||||
Available-for-Sale securities:
|
|
|
|
||||
Proceeds from sales
|
151
|
|
|
435
|
|
||
Maturities, sinking fund payments and calls
|
3,453
|
|
|
2,856
|
|
||
Purchases
|
(3,340
|
)
|
|
(2,513
|
)
|
||
Proceeds from maturities and repayments of mortgage loans
|
481
|
|
|
419
|
|
||
Funding of mortgage loans
|
(427
|
)
|
|
(375
|
)
|
||
Proceeds from sales and collections of other investments
|
198
|
|
|
153
|
|
||
Purchase of other investments
|
(249
|
)
|
|
(334
|
)
|
||
Purchase of investments by consolidated investment entities
|
(2,063
|
)
|
|
(2,368
|
)
|
||
Proceeds from sales, maturities and repayments of investments by consolidated investment entities
|
1,429
|
|
|
1,643
|
|
||
Purchase of land, buildings, equipment and software
|
(109
|
)
|
|
(89
|
)
|
||
Other, net
|
29
|
|
|
1
|
|
||
Net cash used in investing activities
|
(447
|
)
|
|
(172
|
)
|
||
See Notes to Consolidated Financial Statements.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Continued)
(in millions)
|
|||||||
|
Nine Months Ended September 30,
|
||||||
|
2015
|
|
2014
|
||||
|
|
|
|
||||
Cash Flows from Financing Activities
|
|
|
|
||||
Investment certificates:
|
|
|
|
||||
Proceeds from additions
|
$
|
2,182
|
|
|
$
|
1,894
|
|
Maturities, withdrawals and cash surrenders
|
(1,853
|
)
|
|
(1,646
|
)
|
||
Policyholder account balances:
|
|
|
|
||||
Deposits and other additions
|
1,514
|
|
|
1,526
|
|
||
Net transfers to separate accounts
|
(141
|
)
|
|
(167
|
)
|
||
Surrenders and other benefits
|
(2,169
|
)
|
|
(1,896
|
)
|
||
Cash paid for purchased options with deferred premiums
|
(305
|
)
|
|
(318
|
)
|
||
Cash received from purchased options with deferred premiums
|
8
|
|
|
54
|
|
||
Issuance of debt, net of issuance costs
|
—
|
|
|
543
|
|
||
Repayments of debt
|
(41
|
)
|
|
(200
|
)
|
||
Change in short-term borrowings, net
|
—
|
|
|
(301
|
)
|
||
Dividends paid to shareholders
|
(348
|
)
|
|
(319
|
)
|
||
Repurchase of common shares
|
(1,293
|
)
|
|
(1,191
|
)
|
||
Exercise of stock options
|
14
|
|
|
25
|
|
||
Excess tax benefits from share-based compensation
|
70
|
|
|
133
|
|
||
Borrowings by consolidated investment entities
|
1,583
|
|
|
1,559
|
|
||
Repayments of debt by consolidated investment entities
|
(405
|
)
|
|
(918
|
)
|
||
Noncontrolling interests investments in subsidiaries
|
225
|
|
|
113
|
|
||
Distributions to noncontrolling interests
|
(342
|
)
|
|
(448
|
)
|
||
Other, net
|
(1
|
)
|
|
(1
|
)
|
||
Net cash used in financing activities
|
(1,302
|
)
|
|
(1,558
|
)
|
||
Effect of exchange rate changes on cash
|
(12
|
)
|
|
(7
|
)
|
||
Net increase in cash and cash equivalents
|
142
|
|
|
244
|
|
||
Cash and cash equivalents at beginning of period
|
2,638
|
|
|
2,632
|
|
||
Cash and cash equivalents at end of period
|
$
|
2,780
|
|
|
$
|
2,876
|
|
|
|
|
|
||||
Supplemental Disclosures:
|
|
|
|
||||
Interest paid excluding consolidated investment entities
|
$
|
122
|
|
|
$
|
123
|
|
Interest paid by consolidated investment entities
|
175
|
|
|
140
|
|
||
Income taxes paid, net
|
245
|
|
|
345
|
|
||
Non-cash investing activity:
|
|
|
|
||||
Affordable housing partnership commitments not yet remitted
|
9
|
|
|
—
|
|
||
See Notes to Consolidated Financial Statements.
|
|
September 30, 2015
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate debt securities
|
$
|
—
|
|
|
$
|
199
|
|
|
$
|
—
|
|
|
$
|
199
|
|
Common stocks
|
123
|
|
|
43
|
|
|
6
|
|
|
172
|
|
||||
Other investments
|
4
|
|
|
25
|
|
|
—
|
|
|
29
|
|
||||
Syndicated loans
|
—
|
|
|
6,123
|
|
|
454
|
|
|
6,577
|
|
||||
Total investments
|
127
|
|
|
6,390
|
|
|
460
|
|
|
6,977
|
|
||||
Receivables
|
—
|
|
|
65
|
|
|
—
|
|
|
65
|
|
||||
Other assets
|
—
|
|
|
—
|
|
|
2,129
|
|
|
2,129
|
|
||||
Total assets at fair value
|
$
|
127
|
|
|
$
|
6,455
|
|
|
$
|
2,589
|
|
|
$
|
9,171
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,976
|
|
|
$
|
6,976
|
|
Other liabilities
|
—
|
|
|
529
|
|
|
—
|
|
|
529
|
|
||||
Total liabilities at fair value
|
$
|
—
|
|
|
$
|
529
|
|
|
$
|
6,976
|
|
|
$
|
7,505
|
|
|
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
|
|
|
Common Stocks
|
|
Syndicated Loans
|
|
Other Assets
|
|
Debt
|
|
||||||||
|
(in millions)
|
|
||||||||||||||
Balance, July 1, 2015
|
$
|
11
|
|
|
$
|
457
|
|
|
$
|
1,979
|
|
|
$
|
(6,487
|
)
|
|
Total gains (losses) included in:
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
—
|
|
|
(8
|
)
|
(1)
|
24
|
|
(2)
|
67
|
|
(1)
|
||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
(61
|
)
|
|
—
|
|
|
||||
Purchases
|
—
|
|
|
101
|
|
|
193
|
|
|
—
|
|
|
||||
Sales
|
—
|
|
|
(5
|
)
|
|
(6
|
)
|
|
—
|
|
|
||||
Issues
|
—
|
|
|
—
|
|
|
—
|
|
|
(699
|
)
|
|
||||
Settlements
|
—
|
|
|
(32
|
)
|
|
—
|
|
|
143
|
|
|
||||
Transfers into Level 3
|
—
|
|
|
136
|
|
|
—
|
|
|
—
|
|
|
||||
Transfers out of Level 3
|
(5
|
)
|
|
(195
|
)
|
|
—
|
|
|
—
|
|
|
||||
Balance, September 30, 2015
|
$
|
6
|
|
|
$
|
454
|
|
|
$
|
2,129
|
|
|
$
|
(6,976
|
)
|
|
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at September 30, 2015
|
$
|
—
|
|
(1)
|
$
|
(9
|
)
|
(1)
|
$
|
26
|
|
(2)
|
$
|
67
|
|
(1)
|
|
Corporate Debt Securities
|
|
Common Stocks
|
|
Syndicated Loans
|
|
Other Assets
|
|
Debt
|
|
||||||||||
|
(in millions)
|
|
||||||||||||||||||
Balance, July 1, 2014
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
427
|
|
|
$
|
2,389
|
|
|
$
|
(5,511
|
)
|
|
Total gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
(1
|
)
|
(1)
|
144
|
|
(2)
|
(7
|
)
|
(1)
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(151
|
)
|
|
—
|
|
|
|||||
Purchases
|
—
|
|
|
—
|
|
|
41
|
|
|
23
|
|
|
—
|
|
|
|||||
Sales
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
(388
|
)
|
|
—
|
|
|
|||||
Settlements
|
—
|
|
|
—
|
|
|
(38
|
)
|
|
—
|
|
|
52
|
|
|
|||||
Transfers into Level 3
|
—
|
|
|
1
|
|
|
84
|
|
|
—
|
|
|
—
|
|
|
|||||
Transfers out of Level 3
|
—
|
|
|
(1
|
)
|
|
(185
|
)
|
|
—
|
|
|
—
|
|
|
|||||
Balance, September 30, 2014
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
314
|
|
|
$
|
2,017
|
|
|
$
|
(5,466
|
)
|
|
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at September 30, 2014
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
(1)
|
$
|
95
|
|
(2)
|
$
|
(7
|
)
|
(1)
|
|
Common Stocks
|
|
Syndicated Loans
|
|
Other Assets
|
|
Debt
|
|
||||||||
|
(in millions)
|
|
||||||||||||||
Balance, January 1, 2015
|
$
|
7
|
|
|
$
|
484
|
|
|
$
|
1,935
|
|
|
$
|
(6,030
|
)
|
|
Total gains (losses) included in:
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
(1
|
)
|
(1)
|
(8
|
)
|
(1)
|
122
|
|
(2)
|
96
|
|
(1)
|
||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
(54
|
)
|
|
—
|
|
|
||||
Purchases
|
—
|
|
|
257
|
|
|
539
|
|
|
—
|
|
|
||||
Sales
|
—
|
|
|
(23
|
)
|
|
(413
|
)
|
|
—
|
|
|
||||
Issues
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,268
|
)
|
|
||||
Settlements
|
—
|
|
|
(105
|
)
|
|
—
|
|
|
226
|
|
|
||||
Transfers into Level 3
|
5
|
|
|
523
|
|
|
—
|
|
|
—
|
|
|
||||
Transfers out of Level 3
|
(5
|
)
|
|
(674
|
)
|
|
—
|
|
|
—
|
|
|
||||
Balance, September 30, 2015
|
$
|
6
|
|
|
$
|
454
|
|
|
$
|
2,129
|
|
|
$
|
(6,976
|
)
|
|
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at September 30, 2015
|
$
|
—
|
|
|
$
|
(11
|
)
|
(1)
|
$
|
26
|
|
(2)
|
$
|
96
|
|
(1)
|
|
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)
|
2
|
|
(1)
|
5
|
|
(1)
|
330
|
|
(2)
|
(32
|
)
|
(1)
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(84
|
)
|
|
—
|
|
|
|||||
Purchases
|
2
|
|
|
—
|
|
|
280
|
|
|
282
|
|
|
—
|
|
|
|||||
Sales
|
(9
|
)
|
|
(2
|
)
|
|
(42
|
)
|
|
(458
|
)
|
|
—
|
|
|
|||||
Issues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,064
|
)
|
|
|||||
Settlements
|
—
|
|
|
—
|
|
|
(76
|
)
|
|
—
|
|
|
434
|
|
|
|||||
Transfers into Level 3
|
10
|
|
|
12
|
|
|
328
|
|
|
11
|
|
|
—
|
|
|
|||||
Transfers out of Level 3
|
(6
|
)
|
|
(19
|
)
|
|
(549
|
)
|
|
—
|
|
|
—
|
|
|
|||||
Balance, September 30, 2014
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
314
|
|
|
$
|
2,017
|
|
|
$
|
(5,466
|
)
|
|
Changes in unrealized gains included in income relating to assets and liabilities held at September 30, 2014
|
$
|
—
|
|
|
$
|
1
|
|
(1)
|
$
|
1
|
|
(1)
|
$
|
280
|
|
(2)
|
$
|
3
|
|
(1)
|
|
September 30, 2015
|
||||||||||||||
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range
|
|
Weighted Average
|
||||||
|
(in millions)
|
|
|
|
|
|
|
|
|
||||||
Other assets (property funds)
|
$
|
2,124
|
|
|
Discounted cash flow/ market comparables
|
|
Equivalent yield
|
|
2.8
|
%
|
–
|
11.6%
|
|
5.9
|
%
|
|
|
|
|
|
|
Expected rental value (per square foot)
|
|
$5
|
–
|
$173
|
|
$50
|
|||
CLO debt
|
$
|
6,976
|
|
|
Discounted cash flow
|
|
Annual default rate
|
|
2.5%
|
|
|
|
|||
|
|
|
|
|
|
Discount rate
|
|
1.7
|
%
|
–
|
9.0%
|
|
2.9
|
%
|
|
|
|
|
|
|
|
Constant prepayment rate
|
|
5.0
|
%
|
–
|
10.0%
|
|
9.8
|
%
|
|
|
|
|
|
|
|
Loss recovery
|
|
36.4
|
%
|
–
|
63.6%
|
|
62.7
|
%
|
|
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
|
%
|
|
September 30, 2015
|
|
December 31, 2014
|
||||
|
(in millions)
|
||||||
Syndicated loans
|
|
|
|
|
|
||
Unpaid principal balance
|
$
|
6,816
|
|
|
$
|
5,871
|
|
Excess unpaid principal over fair value
|
(239
|
)
|
|
(100
|
)
|
||
Fair value
|
$
|
6,577
|
|
|
$
|
5,771
|
|
Fair value of loans more than 90 days past due
|
$
|
30
|
|
|
$
|
32
|
|
Fair value of loans in nonaccrual status
|
30
|
|
|
32
|
|
||
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both
|
62
|
|
|
25
|
|
||
Debt
|
|
|
|
|
|
||
Unpaid principal balance
|
$
|
7,302
|
|
|
$
|
6,248
|
|
Excess unpaid principal over fair value
|
(326
|
)
|
|
(218
|
)
|
||
Fair value
|
$
|
6,976
|
|
|
$
|
6,030
|
|
|
Carrying Value
|
|
Weighted Average
Interest Rate |
||||||||||
|
September 30, 2015
|
|
December 31, 2014
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||
|
(in millions)
|
|
|
|
|
||||||||
Debt of consolidated CLOs due 2016-2026
|
$
|
6,976
|
|
|
$
|
6,030
|
|
|
1.5
|
%
|
|
1.3
|
%
|
Floating rate revolving credit borrowings due 2016-2020
|
950
|
|
|
837
|
|
|
2.8
|
|
|
2.7
|
|
||
Total
|
$
|
7,926
|
|
|
$
|
6,867
|
|
|
|
|
|
|
|
|
September 30, 2015
|
|
December 31, 2014
|
||||
|
(in millions)
|
||||||
Available-for-Sale securities, at fair value
|
$
|
29,286
|
|
|
$
|
30,027
|
|
Mortgage loans, net
|
3,382
|
|
|
3,440
|
|
||
Policy and certificate loans
|
824
|
|
|
806
|
|
||
Other investments
|
1,254
|
|
|
1,309
|
|
||
Total
|
$
|
34,746
|
|
|
$
|
35,582
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
(in millions)
|
||||||||||||||
Investment income on fixed maturities
|
$
|
346
|
|
|
$
|
365
|
|
|
$
|
1,055
|
|
|
$
|
1,114
|
|
Net realized gains (losses)
|
(10
|
)
|
|
4
|
|
|
5
|
|
|
10
|
|
||||
Affordable housing partnerships
|
(7
|
)
|
|
(8
|
)
|
|
(25
|
)
|
|
(20
|
)
|
||||
Other
|
(10
|
)
|
|
26
|
|
|
32
|
|
|
70
|
|
||||
Consolidated investment entities
|
2
|
|
|
41
|
|
|
161
|
|
|
158
|
|
||||
Total net investment income
|
$
|
321
|
|
|
$
|
428
|
|
|
$
|
1,228
|
|
|
$
|
1,332
|
|
|
|
September 30, 2015
|
||||||||||||||||||
Description of Securities
|
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair Value
|
|
Noncredit
OTTI
(1)
|
||||||||||
|
|
(in millions)
|
||||||||||||||||||
Corporate debt securities
|
|
$
|
15,931
|
|
|
$
|
1,135
|
|
|
$
|
(168
|
)
|
|
$
|
16,898
|
|
|
$
|
3
|
|
Residential mortgage backed securities
|
|
5,925
|
|
|
136
|
|
|
(53
|
)
|
|
6,008
|
|
|
(13
|
)
|
|||||
Commercial mortgage backed securities
|
|
2,395
|
|
|
107
|
|
|
(3
|
)
|
|
2,499
|
|
|
—
|
|
|||||
Asset backed securities
|
|
1,259
|
|
|
48
|
|
|
(5
|
)
|
|
1,302
|
|
|
—
|
|
|||||
State and municipal obligations
|
|
2,083
|
|
|
204
|
|
|
(28
|
)
|
|
2,259
|
|
|
—
|
|
|||||
U.S. government and agencies obligations
|
|
69
|
|
|
3
|
|
|
—
|
|
|
72
|
|
|
—
|
|
|||||
Foreign government bonds and obligations
|
|
223
|
|
|
18
|
|
|
(11
|
)
|
|
230
|
|
|
—
|
|
|||||
Common stocks
|
|
8
|
|
|
11
|
|
|
(1
|
)
|
|
18
|
|
|
5
|
|
|||||
Total
|
|
$
|
27,893
|
|
|
$
|
1,662
|
|
|
$
|
(269
|
)
|
|
$
|
29,286
|
|
|
$
|
(5
|
)
|
|
|
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
|
)
|
(1)
|
Represents the amount of other-than-temporary impairment (“OTTI”) losses in accumulated other comprehensive income (“AOCI”). Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period.
|
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||||||||||||||
Ratings
|
|
Amortized Cost
|
|
Fair Value
|
|
Percent of Total
Fair Value |
|
Amortized Cost
|
|
Fair Value
|
|
Percent of Total
Fair Value |
||||||||||
|
|
(in millions, except percentages)
|
||||||||||||||||||||
AAA
|
|
$
|
7,052
|
|
|
$
|
7,282
|
|
|
25
|
%
|
|
$
|
7,500
|
|
|
$
|
7,776
|
|
|
26
|
%
|
AA
|
|
1,696
|
|
|
1,902
|
|
|
6
|
|
|
1,581
|
|
|
1,799
|
|
|
6
|
|
||||
A
|
|
5,468
|
|
|
5,935
|
|
|
20
|
|
|
6,028
|
|
|
6,668
|
|
|
22
|
|
||||
BBB
|
|
12,175
|
|
|
12,735
|
|
|
44
|
|
|
11,187
|
|
|
12,025
|
|
|
40
|
|
||||
Below investment grade
|
|
1,494
|
|
|
1,414
|
|
|
5
|
|
|
1,762
|
|
|
1,741
|
|
|
6
|
|
||||
Total fixed maturities
|
|
$
|
27,885
|
|
|
$
|
29,268
|
|
|
100
|
%
|
|
$
|
28,058
|
|
|
$
|
30,009
|
|
|
100
|
%
|
|
|
September 30, 2015
|
|||||||||||||||||||||||||||||||
|
|
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
|
262
|
|
|
$
|
3,645
|
|
|
$
|
(133
|
)
|
|
32
|
|
|
$
|
301
|
|
|
$
|
(35
|
)
|
|
294
|
|
|
$
|
3,946
|
|
|
$
|
(168
|
)
|
|
Residential mortgage backed securities
|
85
|
|
|
1,190
|
|
|
(7
|
)
|
|
152
|
|
|
1,330
|
|
|
(46
|
)
|
|
237
|
|
|
2,520
|
|
|
(53
|
)
|
|||||||
Commercial mortgage backed securities
|
23
|
|
|
234
|
|
|
(2
|
)
|
|
4
|
|
|
50
|
|
|
(1
|
)
|
|
27
|
|
|
284
|
|
|
(3
|
)
|
|||||||
Asset backed securities
|
27
|
|
|
221
|
|
|
(2
|
)
|
|
14
|
|
|
253
|
|
|
(3
|
)
|
|
41
|
|
|
474
|
|
|
(5
|
)
|
|||||||
State and municipal obligations
|
61
|
|
|
180
|
|
|
(3
|
)
|
|
3
|
|
|
102
|
|
|
(25
|
)
|
|
64
|
|
|
282
|
|
|
(28
|
)
|
|||||||
Foreign government bonds and obligations
|
8
|
|
|
46
|
|
|
(2
|
)
|
|
14
|
|
|
23
|
|
|
(9
|
)
|
|
22
|
|
|
69
|
|
|
(11
|
)
|
|||||||
Common stocks
|
3
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
1
|
|
|
(1
|
)
|
|||||||
Total
|
469
|
|
|
$
|
5,517
|
|
|
$
|
(150
|
)
|
|
219
|
|
|
$
|
2,059
|
|
|
$
|
(119
|
)
|
|
688
|
|
|
$
|
7,576
|
|
|
$
|
(269
|
)
|
|
|
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
|
)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
(in millions)
|
||||||||||||||
Beginning balance
|
$
|
85
|
|
|
$
|
148
|
|
|
$
|
98
|
|
|
$
|
147
|
|
Credit losses for which an other-than-temporary impairment was previously recognized
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Reductions for securities sold during the period (realized)
|
—
|
|
|
(50
|
)
|
|
(14
|
)
|
|
(50
|
)
|
||||
Ending balance
|
$
|
85
|
|
|
$
|
98
|
|
|
$
|
85
|
|
|
$
|
98
|
|
|
Net Unrealized
Securities Gains |
|
Deferred
Income Tax |
|
AOCI Related to
Net Unrealized Securities Gains |
|
||||||
|
(in millions)
|
|
||||||||||
Balance at January 1, 2014
|
$
|
1,016
|
|
|
$
|
(361
|
)
|
|
$
|
655
|
|
|
Net unrealized securities gains arising during the period
(1)
|
526
|
|
|
(185
|
)
|
|
341
|
|
|
|||
Reclassification of net securities gains included in net income
|
(12
|
)
|
|
4
|
|
|
(8
|
)
|
|
|||
Impact of other adjustments
|
(258
|
)
|
|
90
|
|
|
(168
|
)
|
|
|||
Balance at September 30, 2014
|
$
|
1,272
|
|
|
$
|
(452
|
)
|
|
$
|
820
|
|
(2)
|
|
|
|
|
|
|
|
||||||
Balance at January 1, 2015
|
$
|
1,216
|
|
|
$
|
(430
|
)
|
|
$
|
786
|
|
|
Net unrealized securities losses arising during the period
(1)
|
(562
|
)
|
|
197
|
|
|
(365
|
)
|
|
|||
Reclassification of net securities gains included in net income
|
(6
|
)
|
|
2
|
|
|
(4
|
)
|
|
|||
Impact of other adjustments
|
281
|
|
|
(98
|
)
|
|
183
|
|
|
|||
Balance at September 30, 2015
|
$
|
929
|
|
|
$
|
(329
|
)
|
|
$
|
600
|
|
(2)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
(in millions)
|
||||||||||||||
Gross realized gains
|
$
|
1
|
|
|
$
|
12
|
|
|
$
|
24
|
|
|
$
|
23
|
|
Gross realized losses
|
(4
|
)
|
|
(1
|
)
|
|
(10
|
)
|
|
(5
|
)
|
||||
Other-than-temporary impairments
|
(7
|
)
|
|
(5
|
)
|
|
(8
|
)
|
|
(6
|
)
|
||||
Total
|
$
|
(10
|
)
|
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
12
|
|
|
Amortized Cost
|
|
Fair Value
|
||||
|
(in millions)
|
||||||
Due within one year
|
$
|
1,834
|
|
|
$
|
1,853
|
|
Due after one year through five years
|
6,570
|
|
|
6,985
|
|
||
Due after five years through 10 years
|
5,313
|
|
|
5,397
|
|
||
Due after 10 years
|
4,589
|
|
|
5,224
|
|
||
|
18,306
|
|
|
19,459
|
|
||
Residential mortgage backed securities
|
5,925
|
|
|
6,008
|
|
||
Commercial mortgage backed securities
|
2,395
|
|
|
2,499
|
|
||
Asset backed securities
|
1,259
|
|
|
1,302
|
|
||
Common stocks
|
8
|
|
|
18
|
|
||
Total
|
$
|
27,893
|
|
|
$
|
29,286
|
|
|
September 30,
|
||||||
|
2015
|
|
2014
|
||||
|
(in millions)
|
||||||
Beginning balance
|
$
|
35
|
|
|
$
|
37
|
|
Charge-offs
|
(3
|
)
|
|
(4
|
)
|
||
Provisions
|
1
|
|
|
2
|
|
||
Ending balance
|
$
|
33
|
|
|
$
|
35
|
|
|
|
|
|
||||
Individually evaluated for impairment
|
$
|
6
|
|
|
$
|
9
|
|
Collectively evaluated for impairment
|
27
|
|
|
26
|
|
|
September 30, 2015
|
|
December 31, 2014
|
||||
|
(in millions)
|
||||||
Individually evaluated for impairment
|
$
|
39
|
|
|
$
|
42
|
|
Collectively evaluated for impairment
|
3,923
|
|
|
3,951
|
|
||
Total
|
$
|
3,962
|
|
|
$
|
3,993
|
|
|
Loans
|
|
Percentage
|
||||||||||
|
September 30, 2015
|
|
December 31, 2014
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||
|
(in millions)
|
|
|
|
|
||||||||
East North Central
|
$
|
202
|
|
|
$
|
238
|
|
|
7
|
%
|
|
9
|
%
|
East South Central
|
76
|
|
|
62
|
|
|
3
|
|
|
2
|
|
||
Middle Atlantic
|
210
|
|
|
217
|
|
|
8
|
|
|
8
|
|
||
Mountain
|
247
|
|
|
245
|
|
|
9
|
|
|
9
|
|
||
New England
|
130
|
|
|
140
|
|
|
5
|
|
|
5
|
|
||
Pacific
|
755
|
|
|
694
|
|
|
27
|
|
|
25
|
|
||
South Atlantic
|
773
|
|
|
740
|
|
|
28
|
|
|
27
|
|
||
West North Central
|
231
|
|
|
233
|
|
|
8
|
|
|
9
|
|
||
West South Central
|
133
|
|
|
160
|
|
|
5
|
|
|
6
|
|
||
|
2,757
|
|
|
2,729
|
|
|
100
|
%
|
|
100
|
%
|
||
Less: allowance for loan losses
|
22
|
|
|
25
|
|
|
|
|
|
|
|
||
Total
|
$
|
2,735
|
|
|
$
|
2,704
|
|
|
|
|
|
|
|
|
Loans
|
|
Percentage
|
||||||||||
|
September 30, 2015
|
|
December 31, 2014
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||
|
(in millions)
|
|
|
|
|
||||||||
Apartments
|
$
|
509
|
|
|
$
|
500
|
|
|
18
|
%
|
|
18
|
%
|
Hotel
|
35
|
|
|
34
|
|
|
1
|
|
|
1
|
|
||
Industrial
|
482
|
|
|
461
|
|
|
18
|
|
|
17
|
|
||
Mixed use
|
36
|
|
|
45
|
|
|
1
|
|
|
2
|
|
||
Office
|
542
|
|
|
545
|
|
|
20
|
|
|
20
|
|
||
Retail
|
953
|
|
|
988
|
|
|
35
|
|
|
36
|
|
||
Other
|
200
|
|
|
156
|
|
|
7
|
|
|
6
|
|
||
|
2,757
|
|
|
2,729
|
|
|
100
|
%
|
|
100
|
%
|
||
Less: allowance for loan losses
|
22
|
|
|
25
|
|
|
|
|
|
|
|
||
Total
|
$
|
2,735
|
|
|
$
|
2,704
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
||||
|
(in millions)
|
||||||
Balance at January 1
|
$
|
2,608
|
|
|
$
|
2,663
|
|
Capitalization of acquisition costs
|
264
|
|
|
253
|
|
||
Amortization, excluding the impact of valuation assumptions review
|
(296
|
)
|
|
(274
|
)
|
||
Amortization, impact of valuation assumptions review
|
(6
|
)
|
|
(7
|
)
|
||
Impact of change in net unrealized securities losses (gains)
|
64
|
|
|
(30
|
)
|
||
Balance at September 30
|
$
|
2,634
|
|
|
$
|
2,605
|
|
|
2015
|
|
2014
|
||||
|
(in millions)
|
||||||
Balance at January 1
|
$
|
362
|
|
|
$
|
409
|
|
Capitalization of sales inducement costs
|
3
|
|
|
4
|
|
||
Amortization, excluding the impact of valuation assumptions review
|
(44
|
)
|
|
(39
|
)
|
||
Amortization, impact of valuation assumptions review
|
1
|
|
|
(2
|
)
|
||
Impact of change in net unrealized securities losses (gains)
|
10
|
|
|
(3
|
)
|
||
Balance at September 30
|
$
|
332
|
|
|
$
|
369
|
|
|
September 30, 2015
|
|
December 31, 2014
|
|
||||
|
(in millions)
|
|
||||||
Policyholder account balances
|
|
|
|
|
||||
Fixed annuities
|
$
|
11,446
|
|
|
$
|
12,700
|
|
|
Variable annuity fixed sub-accounts
|
4,914
|
|
|
4,860
|
|
|
||
Variable universal life (“VUL”)/universal life (“UL”) insurance
|
2,884
|
|
|
2,856
|
|
|
||
Indexed universal life (“IUL”) insurance
|
727
|
|
|
534
|
|
|
||
Other life insurance
|
804
|
|
|
840
|
|
|
||
Total policyholder account balances
|
20,775
|
|
|
21,790
|
|
|
||
|
|
|
|
|
||||
Future policy benefits
|
|
|
|
|
||||
Variable annuity guaranteed minimum withdrawal benefits (“GMWB”)
|
1,273
|
|
|
693
|
|
|
||
Variable annuity guaranteed minimum accumulation benefits (“GMAB”)
|
31
|
|
|
(41
|
)
|
(1)
|
||
Other annuity liabilities
|
73
|
|
|
115
|
|
|
||
Fixed annuities life contingent liabilities
|
1,502
|
|
|
1,511
|
|
|
||
Equity indexed annuities (“EIA”)
|
27
|
|
|
29
|
|
|
||
Life, disability income and long term care insurance
|
5,150
|
|
|
5,106
|
|
|
||
VUL/UL and other life insurance additional liabilities
|
444
|
|
|
437
|
|
|
||
Total future policy benefits
|
8,500
|
|
|
7,850
|
|
|
||
Policy claims and other policyholders’ funds
|
771
|
|
|
710
|
|
|
||
Total policyholder account balances, future policy benefits and claims
|
$
|
30,046
|
|
|
$
|
30,350
|
|
|
(1)
|
Includes the value of GMAB embedded derivatives that was a net asset at
December 31, 2014
reported as a contra liability.
|
|
September 30, 2015
|
|
December 31, 2014
|
||||
|
(in millions)
|
||||||
Variable annuity
|
$
|
67,930
|
|
|
$
|
72,125
|
|
VUL insurance
|
6,483
|
|
|
7,016
|
|
||
Other insurance
|
34
|
|
|
37
|
|
||
Threadneedle investment liabilities
|
4,189
|
|
|
4,078
|
|
||
Total
|
$
|
78,636
|
|
|
$
|
83,256
|
|
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||||||||||||||||||||
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
|
|
$
|
53,360
|
|
|
$
|
51,507
|
|
|
$
|
417
|
|
|
65
|
|
$
|
55,378
|
|
|
$
|
53,565
|
|
|
$
|
24
|
|
|
64
|
Five/six-year reset
|
|
9,293
|
|
|
6,730
|
|
|
131
|
|
|
65
|
|
10,360
|
|
|
7,821
|
|
|
28
|
|
|
64
|
||||||
One-year ratchet
|
|
6,724
|
|
|
6,351
|
|
|
396
|
|
|
67
|
|
7,392
|
|
|
7,006
|
|
|
39
|
|
|
66
|
||||||
Five-year ratchet
|
|
1,611
|
|
|
1,553
|
|
|
31
|
|
|
63
|
|
1,773
|
|
|
1,717
|
|
|
2
|
|
|
63
|
||||||
Other
|
|
859
|
|
|
841
|
|
|
92
|
|
|
71
|
|
959
|
|
|
941
|
|
|
38
|
|
|
70
|
||||||
Total — GMDB
|
|
$
|
71,847
|
|
|
$
|
66,982
|
|
|
$
|
1,067
|
|
|
65
|
|
$
|
75,862
|
|
|
$
|
71,050
|
|
|
$
|
131
|
|
|
64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
GGU death benefit
|
|
$
|
1,040
|
|
|
$
|
987
|
|
|
$
|
114
|
|
|
67
|
|
$
|
1,072
|
|
|
$
|
1,019
|
|
|
$
|
123
|
|
|
67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
GMIB
|
|
$
|
274
|
|
|
$
|
253
|
|
|
$
|
14
|
|
|
68
|
|
$
|
343
|
|
|
$
|
321
|
|
|
$
|
9
|
|
|
67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
GMWB:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
GMWB
|
|
$
|
3,163
|
|
|
$
|
3,152
|
|
|
$
|
2
|
|
|
69
|
|
$
|
3,671
|
|
|
$
|
3,659
|
|
|
$
|
1
|
|
|
68
|
GMWB for life
|
|
36,130
|
|
|
35,997
|
|
|
361
|
|
|
66
|
|
36,843
|
|
|
36,735
|
|
|
95
|
|
|
65
|
||||||
Total — GMWB
|
|
$
|
39,293
|
|
|
$
|
39,149
|
|
|
$
|
363
|
|
|
66
|
|
$
|
40,514
|
|
|
$
|
40,394
|
|
|
$
|
96
|
|
|
65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
GMAB
|
|
$
|
3,988
|
|
|
$
|
3,972
|
|
|
$
|
42
|
|
|
58
|
|
$
|
4,247
|
|
|
$
|
4,234
|
|
|
$
|
2
|
|
|
58
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||||
|
Net Amount at Risk
|
|
Weighted Average Attained Age
|
|
Net Amount at Risk
|
|
Weighted Average Attained Age
|
||||
|
(in millions, except age)
|
||||||||||
UL secondary guarantees
|
$
|
6,413
|
|
|
63
|
|
$
|
6,076
|
|
|
62
|
|
GMDB & GGU
|
|
GMIB
|
|
GMWB
(1)
|
|
GMAB
(1)
|
|
UL
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Balance at January 1, 2014
|
$
|
4
|
|
|
$
|
6
|
|
|
$
|
(383
|
)
|
|
$
|
(62
|
)
|
|
$
|
206
|
|
Incurred claims
|
8
|
|
|
1
|
|
|
528
|
|
|
7
|
|
|
54
|
|
|||||
Paid claims
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|||||
Balance at September 30, 2014
|
$
|
9
|
|
|
$
|
7
|
|
|
$
|
145
|
|
|
$
|
(55
|
)
|
|
$
|
247
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at January 1, 2015
|
$
|
9
|
|
|
$
|
7
|
|
|
$
|
693
|
|
|
$
|
(41
|
)
|
|
$
|
263
|
|
Incurred claims
|
9
|
|
|
—
|
|
|
580
|
|
|
72
|
|
|
70
|
|
|||||
Paid claims
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|||||
Balance at September 30, 2015
|
$
|
15
|
|
|
$
|
7
|
|
|
$
|
1,273
|
|
|
$
|
31
|
|
|
$
|
314
|
|
|
September 30, 2015
|
|
December 31, 2014
|
||||
|
(in millions)
|
||||||
Mutual funds:
|
|
|
|
|
|
||
Equity
|
$
|
38,571
|
|
|
$
|
41,403
|
|
Bond
|
23,760
|
|
|
25,060
|
|
||
Other
|
4,997
|
|
|
4,490
|
|
||
Total mutual funds
|
$
|
67,328
|
|
|
$
|
70,953
|
|
|
Outstanding Balance
|
|
Stated Interest Rate
|
||||||||||
|
September 30, 2015
|
|
December 31, 2014
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||
|
(in millions)
|
|
|
|
|
|
|
||||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|
|
|
||
Senior notes due 2015
|
$
|
351
|
|
(1)
|
$
|
358
|
|
(1)
|
5.6
|
%
|
|
5.7
|
%
|
Senior notes due 2019
|
328
|
|
(1)
|
326
|
|
(1)
|
7.3
|
|
|
7.3
|
|
||
Senior notes due 2020
|
789
|
|
(1)
|
786
|
|
(1)
|
5.3
|
|
|
5.3
|
|
||
Senior notes due 2023
|
750
|
|
|
750
|
|
|
4.0
|
|
|
4.0
|
|
||
Senior notes due 2024
|
548
|
|
|
548
|
|
|
3.7
|
|
|
3.7
|
|
||
Junior subordinated notes due 2066
|
253
|
|
|
294
|
|
|
7.5
|
|
|
7.5
|
|
||
Total long-term debt
|
3,019
|
|
|
3,062
|
|
|
|
|
|
|
|
||
Short-term borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
||
Federal Home Loan Bank (“FHLB”) advances
|
150
|
|
|
150
|
|
|
0.3
|
|
|
0.3
|
|
||
Repurchase agreements
|
50
|
|
|
50
|
|
|
0.5
|
|
|
0.4
|
|
||
Total short-term borrowings
|
200
|
|
|
200
|
|
|
|
|
|
|
|
||
Total
|
$
|
3,219
|
|
|
$
|
3,262
|
|
|
|
|
|
|
|
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.
|
|
September 30, 2015
|
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
||||||||
|
(in millions)
|
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash equivalents
|
$
|
82
|
|
|
$
|
2,306
|
|
|
$
|
—
|
|
|
$
|
2,388
|
|
|
Available-for-Sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate debt securities
|
—
|
|
|
15,359
|
|
|
1,539
|
|
|
16,898
|
|
|
||||
Residential mortgage backed securities
|
—
|
|
|
5,722
|
|
|
286
|
|
|
6,008
|
|
|
||||
Commercial mortgage backed securities
|
—
|
|
|
2,494
|
|
|
5
|
|
|
2,499
|
|
|
||||
Asset backed securities
|
—
|
|
|
1,180
|
|
|
122
|
|
|
1,302
|
|
|
||||
State and municipal obligations
|
—
|
|
|
2,259
|
|
|
—
|
|
|
2,259
|
|
|
||||
U.S. government and agencies obligations
|
37
|
|
|
35
|
|
|
—
|
|
|
72
|
|
|
||||
Foreign government bonds and obligations
|
—
|
|
|
230
|
|
|
—
|
|
|
230
|
|
|
||||
Common stocks
|
4
|
|
|
9
|
|
|
5
|
|
|
18
|
|
|
||||
Total Available-for-Sale securities
|
41
|
|
|
27,288
|
|
|
1,957
|
|
|
29,286
|
|
|
||||
Trading securities
|
5
|
|
|
27
|
|
|
—
|
|
|
32
|
|
|
||||
Separate account assets
|
—
|
|
|
78,636
|
|
|
—
|
|
|
78,636
|
|
|
||||
Investments segregated for regulatory purposes
|
325
|
|
|
—
|
|
|
—
|
|
|
325
|
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate derivative contracts
|
—
|
|
|
2,314
|
|
|
—
|
|
|
2,314
|
|
|
||||
Equity derivative contracts
|
285
|
|
|
1,447
|
|
|
—
|
|
|
1,732
|
|
|
||||
Foreign exchange derivative contracts
|
5
|
|
|
36
|
|
|
—
|
|
|
41
|
|
|
||||
Other derivative contracts
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
||||
Total other assets
|
290
|
|
|
3,803
|
|
|
—
|
|
|
4,093
|
|
|
||||
Total assets at fair value
|
$
|
743
|
|
|
$
|
112,060
|
|
|
$
|
1,957
|
|
|
$
|
114,760
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Policyholder account balances, future policy benefits and claims:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
EIA embedded derivatives
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
IUL embedded derivatives
|
—
|
|
|
—
|
|
|
317
|
|
|
317
|
|
|
||||
GMWB and GMAB embedded derivatives
|
—
|
|
|
—
|
|
|
1,107
|
|
|
1,107
|
|
(1)
|
||||
Total policyholder account balances, future policy benefits and claims
|
—
|
|
|
5
|
|
|
1,424
|
|
|
1,429
|
|
(2)
|
||||
Customer deposits
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
||||
Other liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate derivative contracts
|
—
|
|
|
1,200
|
|
|
—
|
|
|
1,200
|
|
|
||||
Equity derivative contracts
|
265
|
|
|
1,742
|
|
|
—
|
|
|
2,007
|
|
|
||||
Credit derivative contracts
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|
||||
Foreign exchange derivative contracts
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
||||
Other derivative contracts
|
—
|
|
|
92
|
|
|
—
|
|
|
92
|
|
|
||||
Other
|
4
|
|
|
11
|
|
|
—
|
|
|
15
|
|
|
||||
Total other liabilities
|
269
|
|
|
3,056
|
|
|
—
|
|
|
3,325
|
|
|
||||
Total liabilities at fair value
|
$
|
269
|
|
|
$
|
3,063
|
|
|
$
|
1,424
|
|
|
$
|
4,756
|
|
|
(2)
|
The Company’s adjustment for nonperformance risk resulted in a
$497 million
cumulative decrease to the embedded derivatives.
|
|
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
|
|
(1)
|
||||
Total policyholder account balances, future policy benefits and claims
|
—
|
|
|
6
|
|
|
721
|
|
|
727
|
|
(2)
|
||||
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
|
|
|
(1)
|
The fair value of the GMWB and GMAB embedded derivatives included
$700 million
of individual contracts in a liability position and
$221 million
of individual contracts in an asset position.
|
(2)
|
The Company’s adjustment for nonperformance risk resulted in a
$311 million
cumulative decrease to the embedded derivatives.
|
|
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, July 1, 2015
|
$
|
1,509
|
|
|
$
|
279
|
|
|
$
|
44
|
|
|
$
|
135
|
|
|
$
|
6
|
|
|
$
|
1,973
|
|
|
$
|
1
|
|
|
Total gains (losses) included in:
|
|
|||||||||||||||||||||||||||
Net income
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
(1)
|
(1
|
)
|
(1)
|
|||||||
Other comprehensive income
|
(3
|
)
|
|
(1
|
)
|
|
—
|
|
|
2
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
|||||||
Purchases
|
124
|
|
|
93
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
222
|
|
|
—
|
|
|
|||||||
Settlements
|
(90
|
)
|
|
(14
|
)
|
|
(2
|
)
|
|
(8
|
)
|
|
—
|
|
|
(114
|
)
|
|
—
|
|
|
|||||||
Transfers out of Level 3
|
—
|
|
|
(71
|
)
|
|
(37
|
)
|
|
(13
|
)
|
|
(1
|
)
|
|
(122
|
)
|
|
—
|
|
|
|||||||
Balance, September 30, 2015
|
$
|
1,539
|
|
|
$
|
286
|
|
|
$
|
5
|
|
|
$
|
122
|
|
|
$
|
5
|
|
|
$
|
1,957
|
|
|
$
|
—
|
|
|
|
|
|||||||||||||||||||||||||||
Changes in unrealized gains (losses) relating to assets held at September 30, 2015 included in:
|
|
|||||||||||||||||||||||||||
Net investment income
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Available-for-Sale Securities
|
|
|
|
|
|
||||||||||||||||||||||||||
|
Corporate Debt Securities
|
|
Residential Mortgage
Backed Securities |
|
Commercial Mortgage
Backed Securities |
|
Asset Backed Securities
|
|
Common Stocks
|
|
Total
|
|
Trading Securities
|
|
Other Derivative Contracts
|
|
||||||||||||||||
|
(in millions)
|
|
|
|
|
|||||||||||||||||||||||||||
Balance, July 1, 2014
|
$
|
1,565
|
|
|
$
|
214
|
|
|
$
|
15
|
|
|
$
|
185
|
|
|
$
|
6
|
|
|
$
|
1,985
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
Total losses included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
(1)
|
||||||||
Other comprehensive income
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
||||||||
Purchases
|
37
|
|
|
170
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
218
|
|
|
—
|
|
|
1
|
|
|
||||||||
Settlements
|
(24
|
)
|
|
(6
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(32
|
)
|
|
—
|
|
|
—
|
|
|
||||||||
Transfers into Level 3
|
—
|
|
|
—
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|
||||||||
Transfers out of Level 3
|
—
|
|
|
(105
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(106
|
)
|
|
—
|
|
|
—
|
|
|
||||||||
Balance, September 30, 2014
|
$
|
1,566
|
|
|
$
|
273
|
|
|
$
|
93
|
|
|
$
|
193
|
|
|
$
|
5
|
|
|
$
|
2,130
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Changes in unrealized losses relating to assets held at September 30, 2014 included in:
|
|
|
|
|||||||||||||||||||||||||||||
Net investment income
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Benefits, claims, losses and settlement expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
|
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, 2015
|
$
|
1,518
|
|
|
$
|
206
|
|
|
$
|
91
|
|
|
$
|
169
|
|
|
$
|
6
|
|
|
$
|
1,990
|
|
|
$
|
1
|
|
|
Total gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(1
|
)
|
(1)
|
(1
|
)
|
(1)
|
|||||||
Other comprehensive income
|
(9
|
)
|
|
(1
|
)
|
|
—
|
|
|
2
|
|
|
1
|
|
|
(7
|
)
|
|
—
|
|
|
|||||||
Purchases
|
179
|
|
|
312
|
|
|
41
|
|
|
37
|
|
|
—
|
|
|
569
|
|
|
—
|
|
|
|||||||
Settlements
|
(147
|
)
|
|
(36
|
)
|
|
(5
|
)
|
|
(22
|
)
|
|
—
|
|
|
(210
|
)
|
|
—
|
|
|
|||||||
Transfers into Level 3
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
|||||||
Transfers out of Level 3
|
—
|
|
|
(195
|
)
|
|
(128
|
)
|
|
(65
|
)
|
|
(2
|
)
|
|
(390
|
)
|
|
—
|
|
|
|||||||
Balance, September 30, 2015
|
$
|
1,539
|
|
|
$
|
286
|
|
|
$
|
5
|
|
|
$
|
122
|
|
|
$
|
5
|
|
|
$
|
1,957
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Changes in unrealized gains (losses) relating to assets held at September 30, 2015 included in:
|
|
|||||||||||||||||||||||||||
Net investment income
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
|
Available-for-Sale Securities
|
|
|
|
|
|
||||||||||||||||||||||||||
|
Corporate Debt Securities
|
|
Residential Mortgage
Backed Securities |
|
Commercial Mortgage
Backed Securities |
|
Asset Backed Securities
|
|
Common Stocks
|
|
Total
|
|
Trading Securities
|
|
Other Derivative Contracts
|
|
||||||||||||||||
|
(in millions)
|
|
|
|
|
|||||||||||||||||||||||||||
Balance, January 1, 2014
|
$
|
1,640
|
|
|
$
|
187
|
|
|
$
|
30
|
|
|
$
|
260
|
|
|
$
|
6
|
|
|
$
|
2,123
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
Total gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
(1)
|
—
|
|
|
(1
|
)
|
(2)
|
||||||||
Other comprehensive income
|
4
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
||||||||
Purchases
|
159
|
|
|
388
|
|
|
60
|
|
|
32
|
|
|
—
|
|
|
639
|
|
|
1
|
|
|
2
|
|
|
||||||||
Sales
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
(2
|
)
|
|
—
|
|
|
||||||||
Settlements
|
(225
|
)
|
|
(18
|
)
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(253
|
)
|
|
—
|
|
|
—
|
|
|
||||||||
Transfers into Level 3
|
—
|
|
|
—
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|
||||||||
Transfers out of Level 3
|
—
|
|
|
(284
|
)
|
|
(75
|
)
|
|
(89
|
)
|
|
(1
|
)
|
|
(449
|
)
|
|
—
|
|
|
—
|
|
|
||||||||
Balance, September 30, 2014
|
$
|
1,566
|
|
|
$
|
273
|
|
|
$
|
93
|
|
|
$
|
193
|
|
|
$
|
5
|
|
|
$
|
2,130
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Changes in unrealized gains (losses) relating to assets held at September 30, 2014 included in:
|
|
|||||||||||||||||||||||||||||||
Net investment income
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Benefits, claims, losses and settlement expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
|
September 30, 2015
|
|||||||||||||
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range
|
|
Weighted Average
|
|||||
|
(in millions)
|
|
|
|
|
|
|
|
|
|
||||
Corporate debt securities (private placements)
|
$
|
1,525
|
|
|
Discounted cash flow
|
|
Yield/spread to U.S. Treasuries
|
|
1.2
|
%
|
–
|
4.0%
|
|
1.7%
|
IUL embedded derivatives
|
$
|
317
|
|
|
Discounted cash flow
|
|
Nonperformance risk
(1)
|
|
80
|
|
|
bps
|
|
|
GMWB and GMAB embedded derivatives
|
$
|
1,107
|
|
|
Discounted cash flow
|
|
Utilization of guaranteed withdrawals
(2)
|
|
0.0
|
%
|
–
|
75.6%
|
|
|
|
|
|
|
|
Surrender rate
|
|
0.0
|
%
|
–
|
59.1%
|
|
|
||
|
|
|
|
|
|
Market volatility
(3)
|
|
5.3
|
%
|
–
|
21.2%
|
|
|
|
|
|
|
|
|
Nonperformance risk
(1)
|
|
80
|
|
|
bps
|
|
|
|
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%
|
|
|
(1)
|
The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives.
|
(2)
|
The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year.
|
(3)
|
Market volatility is implied volatility of fund of funds and managed volatility funds.
|
(4)
|
The elective allocation represents the percentage of contractholders that are assumed to electively switch their investment allocation to a different allocation model. As of
September 30, 2015
, the Company is no longer including this input in the fair value measurement.
|
|
September 30, 2015
|
||||||||||||||||||
|
Carrying Value
|
|
Fair Value
|
||||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||
|
(in millions)
|
||||||||||||||||||
Financial Assets
|
|||||||||||||||||||
Mortgage loans, net
|
$
|
3,382
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,437
|
|
|
$
|
3,437
|
|
Policy and certificate loans
|
824
|
|
|
—
|
|
|
1
|
|
|
805
|
|
|
806
|
|
|||||
Receivables
|
1,612
|
|
|
274
|
|
|
1,335
|
|
|
4
|
|
|
1,613
|
|
|||||
Restricted and segregated cash
|
2,377
|
|
|
2,377
|
|
|
—
|
|
|
—
|
|
|
2,377
|
|
|||||
Other investments and assets
|
576
|
|
|
—
|
|
|
506
|
|
|
61
|
|
|
567
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Liabilities
|
|||||||||||||||||||
Policyholder account balances, future policy benefits and claims
|
$
|
11,730
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,705
|
|
|
$
|
12,705
|
|
Investment certificate reserves
|
4,530
|
|
|
—
|
|
|
—
|
|
|
4,521
|
|
|
4,521
|
|
|||||
Brokerage customer deposits
|
3,516
|
|
|
3,516
|
|
|
—
|
|
|
—
|
|
|
3,516
|
|
|||||
Separate account liabilities
|
4,544
|
|
|
—
|
|
|
4,544
|
|
|
—
|
|
|
4,544
|
|
|||||
Debt and other liabilities
|
3,592
|
|
|
353
|
|
|
3,346
|
|
|
86
|
|
|
3,785
|
|
|
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
|
|
|
September 30, 2015
|
||||||||||||||||||||||||||
|
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
|
$
|
3,473
|
|
|
$
|
—
|
|
|
$
|
3,473
|
|
|
$
|
(2,460
|
)
|
|
$
|
(519
|
)
|
|
$
|
(445
|
)
|
|
$
|
49
|
|
OTC cleared
|
507
|
|
|
—
|
|
|
507
|
|
|
(417
|
)
|
|
(89
|
)
|
|
—
|
|
|
1
|
|
|||||||
Exchange-traded
|
113
|
|
|
—
|
|
|
113
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
108
|
|
|||||||
Total derivatives
|
4,093
|
|
|
—
|
|
|
4,093
|
|
|
(2,882
|
)
|
|
(608
|
)
|
|
(445
|
)
|
|
158
|
|
|||||||
Securities borrowed
|
274
|
|
|
—
|
|
|
274
|
|
|
(38
|
)
|
|
—
|
|
|
(227
|
)
|
|
9
|
|
|||||||
Total
|
$
|
4,367
|
|
|
$
|
—
|
|
|
$
|
4,367
|
|
|
$
|
(2,920
|
)
|
|
$
|
(608
|
)
|
|
$
|
(672
|
)
|
|
$
|
167
|
|
|
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, 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
|
|
Derivatives designated as
hedging instruments |
|
|
|
Assets
|
|
|
|
Liabilities
|
|||||||||||||
|
Balance Sheet Location
|
|
September 30, 2015
|
|
December 31, 2014
|
|
Balance Sheet Location
|
|
September 30, 2015
|
|
December 31, 2014
|
|
|||||||||
|
|
|
|
(in millions)
|
|
|
|
(in millions)
|
|
||||||||||||
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
Other assets
|
$
|
76
|
|
|
$
|
76
|
|
|
Other liabilities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
||
Total qualifying hedges
|
|
|
76
|
|
|
76
|
|
|
|
|
—
|
|
|
—
|
|
|
|||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
GMWB and GMAB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
Other assets
|
2,238
|
|
|
1,955
|
|
|
Other liabilities
|
|
1,168
|
|
|
1,136
|
|
|
||||||
Equity contracts
|
Other assets
|
1,706
|
|
|
1,954
|
|
|
Other liabilities
|
|
1,998
|
|
|
2,650
|
|
|
||||||
Credit contracts
|
Other assets
|
—
|
|
|
—
|
|
|
Other liabilities
|
|
5
|
|
|
—
|
|
|
||||||
Foreign exchange contracts
|
Other assets
|
40
|
|
|
29
|
|
|
Other liabilities
|
|
6
|
|
|
2
|
|
|
||||||
Embedded derivatives
(1)
|
N/A
|
|
—
|
|
|
—
|
|
|
Policyholder account balances, future policy benefits and claims
(2)
|
1,107
|
|
|
479
|
|
|
||||||
Total GMWB and GMAB
|
|
3,984
|
|
|
3,938
|
|
|
|
|
4,284
|
|
|
4,267
|
|
|
||||||
Other derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Investments
|
Other assets
|
—
|
|
|
—
|
|
|
Other liabilities
|
32
|
|
|
—
|
|
|
|||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
EIA embedded derivatives
|
N/A
|
—
|
|
|
—
|
|
|
Policyholder account balances, future policy benefits and claims
|
5
|
|
|
6
|
|
|
|||||||
IUL
|
Other assets
|
12
|
|
|
39
|
|
|
Other liabilities
|
|
2
|
|
|
12
|
|
|
||||||
IUL embedded derivatives
|
N/A
|
—
|
|
|
—
|
|
|
Policyholder account balances, future policy benefits and claims
|
317
|
|
|
242
|
|
|
|||||||
SMC
|
Other assets
|
10
|
|
|
46
|
|
|
Other liabilities
|
7
|
|
|
40
|
|
|
|||||||
Stock market certificates embedded derivatives
|
N/A
|
—
|
|
|
—
|
|
|
Customer deposits
|
2
|
|
|
6
|
|
|
|||||||
Deferred compensation
|
Other assets
|
4
|
|
|
—
|
|
|
Other liabilities
|
—
|
|
|
—
|
|
|
|||||||
Foreign exchange
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency
|
Other assets
|
1
|
|
|
1
|
|
|
Other liabilities
|
—
|
|
|
—
|
|
|
|||||||
Seed money
|
Other assets
|
—
|
|
|
—
|
|
|
Other liabilities
|
—
|
|
|
1
|
|
|
|||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Macro hedge program
|
Other assets
|
6
|
|
|
1
|
|
|
Other liabilities
|
92
|
|
|
114
|
|
|
|||||||
Total other derivatives
|
|
33
|
|
|
87
|
|
|
|
|
457
|
|
|
421
|
|
|
||||||
Total non-designated hedges
|
|
4,017
|
|
|
4,025
|
|
|
|
|
4,741
|
|
|
4,688
|
|
|
||||||
Total derivatives
|
|
$
|
4,093
|
|
|
$
|
4,101
|
|
|
|
|
$
|
4,741
|
|
(3)
|
$
|
4,688
|
|
(3)
|
Derivatives not designated as hedging instruments
|
|
Location of Gain (Loss) on Derivatives Recognized in Income
|
|
Amount of Gain (Loss) on
Derivatives Recognized in Income |
||||||||||||||
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||
|
|
|
|
(in millions)
|
||||||||||||||
GMWB and GMAB
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
|
Benefits, claims, losses and settlement expenses
|
$
|
536
|
|
|
$
|
100
|
|
|
$
|
360
|
|
|
$
|
609
|
|
|
Equity contracts
|
|
Benefits, claims, losses and settlement expenses
|
328
|
|
|
143
|
|
|
69
|
|
|
(244
|
)
|
|||||
Credit contracts
|
|
Benefits, claims, losses and settlement expenses
|
(10
|
)
|
|
(1
|
)
|
|
(5
|
)
|
|
(23
|
)
|
|||||
Foreign exchange contracts
|
|
Benefits, claims, losses and settlement expenses
|
6
|
|
|
(13
|
)
|
|
(2
|
)
|
|
(14
|
)
|
|||||
Embedded derivatives
(1)
|
|
Benefits, claims, losses and settlement expenses
|
(872
|
)
|
|
(270
|
)
|
|
(628
|
)
|
|
(498
|
)
|
|||||
Total GMWB and GMAB
|
|
|
|
(12
|
)
|
|
(41
|
)
|
|
(206
|
)
|
|
(170
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other derivatives:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
|
|
|
|
|
|
|
|
|
||||||||
Investments
|
|
Net investment income
|
|
(31
|
)
|
|
—
|
|
|
(32
|
)
|
|
—
|
|
||||
Tax hedge
|
|
Net investment income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||
Seed money
|
|
Net investment income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Equity
|
|
|
|
|
|
|
|
|
|
|
||||||||
IUL
|
|
Interest credited to fixed accounts
|
|
(15
|
)
|
|
2
|
|
|
(16
|
)
|
|
13
|
|
||||
IUL embedded derivatives
|
|
Interest credited to fixed accounts
|
|
6
|
|
|
2
|
|
|
1
|
|
|
(9
|
)
|
||||
EIA
|
|
Interest credited to fixed accounts
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
||||
EIA embedded derivatives
|
|
Interest credited to fixed accounts
|
|
1
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
||||
Stock market certificates
|
|
Banking and deposit interest expense
|
|
(3
|
)
|
|
—
|
|
|
(2
|
)
|
|
2
|
|
||||
Stock market certificates embedded derivatives
|
|
Banking and deposit interest expense
|
|
2
|
|
|
—
|
|
|
2
|
|
|
(2
|
)
|
||||
Seed money
|
|
Net investment income
|
|
—
|
|
|
1
|
|
|
(2
|
)
|
|
(2
|
)
|
||||
Deferred compensation
|
|
Distribution expenses
|
|
(15
|
)
|
|
1
|
|
|
(9
|
)
|
|
6
|
|
||||
Deferred compensation
|
|
General and administrative expense
|
|
(4
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
1
|
|
||||
Foreign exchange
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency
|
|
Net investment income
|
|
—
|
|
|
4
|
|
|
—
|
|
|
2
|
|
||||
Deferred compensation
|
|
Distribution expenses
|
|
—
|
|
|
(3
|
)
|
|
(2
|
)
|
|
(2
|
)
|
||||
Deferred compensation
|
|
General and administrative expense
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
Commodity
|
|
|
|
|
|
|
|
|
|
|
||||||||
Seed money
|
|
Net investment income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Other
|
|
|
|
|
|
|
|
|
|
|
||||||||
Macro hedge program
|
|
Benefits, claims, losses and settlement expenses
|
3
|
|
|
17
|
|
|
(4
|
)
|
|
(8
|
)
|
|||||
Total other derivatives
|
|
|
|
(58
|
)
|
|
23
|
|
|
(68
|
)
|
|
2
|
|
||||
Total derivatives
|
|
|
|
$
|
(70
|
)
|
|
$
|
(18
|
)
|
|
$
|
(274
|
)
|
|
$
|
(168
|
)
|
|
Premiums Payable
|
|
Premiums Receivable
|
||||
|
(in millions)
|
||||||
2015
(1)
|
$
|
110
|
|
|
$
|
28
|
|
2016
|
346
|
|
|
77
|
|
||
2017
|
286
|
|
|
77
|
|
||
2018
|
227
|
|
|
126
|
|
||
2019
|
274
|
|
|
103
|
|
||
2020 - 2027
|
761
|
|
|
227
|
|
||
Total
|
$
|
2,004
|
|
|
$
|
638
|
|
Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
|
|
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
|
||||||||||||||
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||
|
|
(in millions)
|
||||||||||||||
Interest and debt expense
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
3
|
|
Net investment income
|
|
(2
|
)
|
|
(2
|
)
|
|
(4
|
)
|
|
(4
|
)
|
||||
Total
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
Derivatives designated as hedging instruments
|
|
Location of Gain Recorded into Income
|
|
Amount of Gain Recognized in Income on Derivatives
|
||||||||||||||
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||
|
|
|
|
(in millions)
|
||||||||||||||
Interest rate contracts
|
|
Interest and debt expense
|
|
$
|
8
|
|
|
$
|
9
|
|
|
$
|
24
|
|
|
$
|
25
|
|
AOCI Reclassification
|
|
Location of Loss (Gain) Recognized in Income
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||
|
|
|
|
(in millions)
|
||||||||||||||
Net unrealized (gains) losses on Available-for-Sale securities
|
Net investment income
|
|
$
|
10
|
|
|
$
|
(6
|
)
|
|
$
|
(6
|
)
|
|
$
|
(12
|
)
|
|
Tax expense
|
|
Income tax provision
|
(4
|
)
|
|
2
|
|
|
2
|
|
|
4
|
|
|||||
Net of tax
|
|
|
|
$
|
6
|
|
|
$
|
(4
|
)
|
|
$
|
(4
|
)
|
|
$
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Losses (gains) on cash flow hedges:
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate contracts
|
|
Interest and debt expense
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
$
|
(3
|
)
|
|
$
|
(3
|
)
|
|
Swaptions
|
|
Net investment income
|
|
2
|
|
|
2
|
|
|
4
|
|
|
4
|
|
||||
Total before tax
|
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
||||
Tax benefit
|
|
Income tax provision
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net of tax
|
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
September 30, 2015
|
|
December 31, 2014
|
||||
|
(in millions)
|
||||||
Assets:
|
|
|
|
||||
Advice & Wealth Management
|
$
|
10,848
|
|
|
$
|
10,220
|
|
Asset Management
|
7,890
|
|
|
7,509
|
|
||
Annuities
|
93,747
|
|
|
98,535
|
|
||
Protection
|
20,358
|
|
|
20,779
|
|
||
Corporate & Other
|
12,477
|
|
|
11,767
|
|
||
Total assets
|
$
|
145,320
|
|
|
$
|
148,810
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
(in millions)
|
||||||||||||||
Operating net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Advice & Wealth Management
|
$
|
1,245
|
|
|
$
|
1,210
|
|
|
$
|
3,747
|
|
|
$
|
3,557
|
|
Asset Management
|
782
|
|
|
839
|
|
|
2,421
|
|
|
2,490
|
|
||||
Annuities
|
632
|
|
|
655
|
|
|
1,914
|
|
|
1,942
|
|
||||
Protection
|
586
|
|
|
553
|
|
|
1,776
|
|
|
1,687
|
|
||||
Corporate & Other
|
(4
|
)
|
|
(1
|
)
|
|
(12
|
)
|
|
3
|
|
||||
Eliminations
(1) (2)
|
(366
|
)
|
|
(357
|
)
|
|
(1,090
|
)
|
|
(1,053
|
)
|
||||
Total segment operating revenues
|
2,875
|
|
|
2,899
|
|
|
8,756
|
|
|
8,626
|
|
||||
Net realized gains (losses)
|
(10
|
)
|
|
4
|
|
|
5
|
|
|
10
|
|
||||
Revenues attributable to CIEs
|
43
|
|
|
206
|
|
|
333
|
|
|
543
|
|
||||
Market impact on IUL benefits, net
|
9
|
|
|
2
|
|
|
5
|
|
|
—
|
|
||||
Market impact of hedges on investments
|
(31
|
)
|
|
—
|
|
|
(32
|
)
|
|
—
|
|
||||
Total net revenues per consolidated statements of operations
|
$
|
2,886
|
|
|
$
|
3,111
|
|
|
$
|
9,067
|
|
|
$
|
9,179
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
(in millions)
|
||||||||||||||
Operating earnings:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Advice & Wealth Management
|
$
|
219
|
|
|
$
|
205
|
|
|
$
|
649
|
|
|
$
|
580
|
|
Asset Management
|
180
|
|
|
208
|
|
|
568
|
|
|
590
|
|
||||
Annuities
|
176
|
|
|
128
|
|
|
498
|
|
|
474
|
|
||||
Protection
|
25
|
|
|
66
|
|
|
148
|
|
|
216
|
|
||||
Corporate & Other
|
(42
|
)
|
|
(53
|
)
|
|
(161
|
)
|
|
(183
|
)
|
||||
Total segment operating earnings
|
558
|
|
|
554
|
|
|
1,702
|
|
|
1,677
|
|
||||
Net realized gains (losses)
|
(10
|
)
|
|
4
|
|
|
5
|
|
|
10
|
|
||||
Net income (loss) attributable to noncontrolling interests
|
(45
|
)
|
|
145
|
|
|
102
|
|
|
353
|
|
||||
Market impact on variable annuity guaranteed benefits, net
|
(5
|
)
|
|
9
|
|
|
(75
|
)
|
|
(60
|
)
|
||||
Market impact on IUL benefits, net
|
(1
|
)
|
|
8
|
|
|
(2
|
)
|
|
9
|
|
||||
Market impact of hedges on investments
|
(31
|
)
|
|
—
|
|
|
(32
|
)
|
|
—
|
|
||||
Integration and restructuring charges
|
(3
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
||||
Income from continuing operations before income tax provision per consolidated statements of operations
|
$
|
463
|
|
|
$
|
720
|
|
|
$
|
1,696
|
|
|
$
|
1,989
|
|
•
|
Advice & Wealth Management;
|
•
|
Asset Management;
|
•
|
Annuities;
|
•
|
Protection; and
|
•
|
Corporate & Other.
|
•
|
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%.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
(in millions)
|
||||||||||||||
Total net revenues
|
$
|
2,886
|
|
|
$
|
3,111
|
|
|
$
|
9,067
|
|
|
$
|
9,179
|
|
Less: Revenue attributable to CIEs
|
43
|
|
|
206
|
|
|
333
|
|
|
543
|
|
||||
Less: Net realized gains (losses)
|
(10
|
)
|
|
4
|
|
|
5
|
|
|
10
|
|
||||
Less: Market impact on indexed universal life benefits
|
9
|
|
|
2
|
|
|
5
|
|
|
—
|
|
||||
Less: Market impact of hedges on investments
|
(31
|
)
|
|
—
|
|
|
(32
|
)
|
|
—
|
|
||||
Operating total net revenues
|
$
|
2,875
|
|
|
$
|
2,899
|
|
|
$
|
8,756
|
|
|
$
|
8,626
|
|
|
|
|
|
|
Per Diluted Share
|
||||||||||
|
Three Months Ended September 30,
|
|
Three Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
(in millions, except per share amounts)
|
||||||||||||||
Net income
|
$
|
352
|
|
|
$
|
565
|
|
|
|
|
|
|
|
||
Less: Net income (loss) attributable to noncontrolling interests
|
(45
|
)
|
|
145
|
|
|
|
|
|
|
|
||||
Net income attributable to Ameriprise Financial
|
397
|
|
|
420
|
|
|
$
|
2.17
|
|
|
$
|
2.17
|
|
||
Less: Loss from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income from continuing operations attributable to Ameriprise Financial
|
397
|
|
|
420
|
|
|
2.17
|
|
|
2.17
|
|
||||
Add: Integration/restructuring charges, net of tax
(1)
|
2
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
||||
Add: Market impact on variable annuity guaranteed benefits, net of tax
(1)
|
3
|
|
|
(5
|
)
|
|
0.02
|
|
|
(0.03
|
)
|
||||
Add: Market impact on indexed universal life benefits, net of tax
(1)
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(0.03
|
)
|
||||
Add: Market impact of hedges on investments, net of tax
(1)
|
20
|
|
|
—
|
|
|
0.11
|
|
|
—
|
|
||||
Less: Net realized gains (losses), net of tax
(1)
|
(7
|
)
|
|
3
|
|
|
(0.04
|
)
|
|
0.01
|
|
||||
Operating earnings
|
$
|
429
|
|
|
$
|
407
|
|
|
$
|
2.35
|
|
|
$
|
2.10
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
180.4
|
|
|
190.3
|
|
|
|
|
|
|
|
||||
Diluted
|
182.7
|
|
|
193.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Diluted Share
|
||||||||||
|
Nine Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
(in millions, except per share amounts)
|
||||||||||||||
Net income
|
$
|
1,307
|
|
|
$
|
1,547
|
|
|
|
|
|
|
|
||
Less: Net income attributable to noncontrolling interests
|
102
|
|
|
353
|
|
|
|
|
|
|
|
||||
Net income attributable to Ameriprise Financial
|
1,205
|
|
|
1,194
|
|
|
$
|
6.48
|
|
|
$
|
6.08
|
|
||
Less: Loss from discontinued operations, net of tax
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(0.01
|
)
|
||||
Net income from continuing operations attributable to Ameriprise Financial
|
1,205
|
|
|
1,195
|
|
|
6.48
|
|
|
6.09
|
|
||||
Add: Integration/restructuring charges, net of tax
(1)
|
3
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
||||
Add: Market impact on variable annuity guaranteed benefits, net of tax
(1)
|
48
|
|
|
40
|
|
|
0.26
|
|
|
0.20
|
|
||||
Add: Market impact on indexed universal life benefits, net of tax
(1)
|
1
|
|
|
(6
|
)
|
|
—
|
|
|
(0.03
|
)
|
||||
Add: Market impact of hedges on investments, net of tax
(1)
|
21
|
|
|
—
|
|
|
0.11
|
|
|
—
|
|
||||
Less: Net realized gains, net of tax
(1)
|
3
|
|
|
7
|
|
|
0.02
|
|
|
0.03
|
|
||||
Operating earnings
|
$
|
1,275
|
|
|
$
|
1,222
|
|
|
$
|
6.85
|
|
|
$
|
6.23
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
183.5
|
|
|
192.8
|
|
|
|
|
|
|
|
||||
Diluted
|
186.0
|
|
|
196.3
|
|
|
|
|
|
|
|
|
Twelve Months Ended September 30,
|
||||||
|
2015
|
|
2014
|
||||
|
(in millions)
|
||||||
Net income attributable to Ameriprise Financial
|
$
|
1,630
|
|
|
$
|
1,490
|
|
Less: Loss from discontinued operations, net of tax
|
(1
|
)
|
|
(3
|
)
|
||
Net income from continuing operations attributable to Ameriprise Financial
|
1,631
|
|
|
1,493
|
|
||
Less: Adjustments
(1)
|
(84
|
)
|
|
(107
|
)
|
||
Operating earnings
|
$
|
1,715
|
|
|
$
|
1,600
|
|
|
|
|
|
||||
Total Ameriprise Financial, Inc. shareholders’ equity
|
$
|
8,017
|
|
|
$
|
8,310
|
|
Less: Accumulated other comprehensive income, net of tax
|
615
|
|
|
723
|
|
||
Total Ameriprise Financial, Inc. shareholders’ equity from continuing operations, excluding AOCI
|
7,402
|
|
|
7,587
|
|
||
Less: Equity impacts attributable to CIEs
|
250
|
|
|
331
|
|
||
Operating equity
|
$
|
7,152
|
|
|
$
|
7,256
|
|
|
|
|
|
||||
Return on equity from continuing operations, excluding AOCI
|
22.0
|
%
|
|
19.7
|
%
|
||
Operating return on equity, excluding AOCI
(2)
|
24.0
|
%
|
|
22.1
|
%
|
(1)
|
Adjustments reflect the trailing twelve months’ sum of after-tax net realized investment gains/losses, net of the related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact on variable annuity guaranteed benefits, net of hedges and related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; and integration and restructuring charges. After-tax is calculated using the statutory tax rate of 35%.
|
(2)
|
Operating return on equity, excluding AOCI, is calculated using the trailing twelve months of earnings excluding the after-tax net realized investment gains/losses, net of the related DSIC and DAC amortization,
unearned revenue amortization and the reinsurance accrual
; market impact on variable annuity guaranteed benefits, net of hedges and related DSIC and DAC amortization; the market impact on indexed universal benefits, net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration/restructuring charges; and discontinued operations in the numerator, and Ameriprise Financial shareholders’ equity, excluding AOCI and the impact of consolidating investment entities using a five-point average of quarter-end equity in the denominator. After-tax is calculated using the statutory rate of 35%.
|
|
Three Months Ended September 30,
|
|
|
|||||||||||
|
2015
|
|
2014
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|||||||
Management and financial advice fees
|
$
|
1,465
|
|
|
$
|
1,483
|
|
|
$
|
(18
|
)
|
|
(1
|
)%
|
Distribution fees
|
451
|
|
|
464
|
|
|
(13
|
)
|
|
(3
|
)
|
|||
Net investment income
|
321
|
|
|
428
|
|
|
(107
|
)
|
|
(25
|
)
|
|||
Premiums
|
360
|
|
|
351
|
|
|
9
|
|
|
3
|
|
|||
Other revenues
|
296
|
|
|
392
|
|
|
(96
|
)
|
|
(24
|
)
|
|||
Total revenues
|
2,893
|
|
|
3,118
|
|
|
(225
|
)
|
|
(7
|
)
|
|||
Banking and deposit interest expense
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
2,886
|
|
|
3,111
|
|
|
(225
|
)
|
|
(7
|
)
|
|||
Expenses
|
|
|
|
|
|
|
|
|||||||
Distribution expenses
|
806
|
|
|
813
|
|
|
(7
|
)
|
|
(1
|
)
|
|||
Interest credited to fixed accounts
|
171
|
|
|
168
|
|
|
3
|
|
|
2
|
|
|||
Benefits, claims, losses and settlement expenses
|
471
|
|
|
458
|
|
|
13
|
|
|
3
|
|
|||
Amortization of deferred acquisition costs
|
133
|
|
|
116
|
|
|
17
|
|
|
15
|
|
|||
Interest and debt expense
|
98
|
|
|
79
|
|
|
19
|
|
|
24
|
|
|||
General and administrative expense
|
744
|
|
|
757
|
|
|
(13
|
)
|
|
(2
|
)
|
|||
Total expenses
|
2,423
|
|
|
2,391
|
|
|
32
|
|
|
1
|
|
|||
Income from continuing operations before income tax provision
|
463
|
|
|
720
|
|
|
(257
|
)
|
|
(36
|
)
|
|||
Income tax provision
|
111
|
|
|
155
|
|
|
(44
|
)
|
|
(28
|
)
|
|||
Income from continuing operations
|
352
|
|
|
565
|
|
|
(213
|
)
|
|
(38
|
)
|
|||
Loss from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net income
|
352
|
|
|
565
|
|
|
(213
|
)
|
|
(38
|
)
|
|||
Less: Net income (loss) attributable to noncontrolling interests
|
(45
|
)
|
|
145
|
|
|
(190
|
)
|
|
NM
|
|
|||
Net income attributable to Ameriprise Financial
|
$
|
397
|
|
|
$
|
420
|
|
|
$
|
(23
|
)
|
|
(5
|
)%
|
NM Not Meaningful.
|
Pretax Increase (Decrease)
|
|
2015
|
|
2014
|
||||
|
|
(in millions)
|
||||||
Premiums
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
Other revenues
|
|
8
|
|
|
(29
|
)
|
||
Total revenues
|
|
5
|
|
|
(29
|
)
|
||
|
|
|
|
|
||||
Benefits, claims, losses and settlement expenses
|
|
(58
|
)
|
|
6
|
|
||
Amortization of DAC
|
|
15
|
|
|
8
|
|
||
Total expenses
|
|
(43
|
)
|
|
14
|
|
||
Total
(1)
|
|
$
|
48
|
|
|
$
|
(43
|
)
|
(1)
Includes a $6 million net benefit related to the market impact on variable annuity guaranteed benefits and indexed universal life benefits for the three months ended September 30, 2015.
|
•
|
The three months ended
September 30, 2015
included a $58 million benefit from unlocking compared to a $6 million expense in the prior year period. The unlocking impact for the third quarter of 2015 primarily reflected
an update to market-related inputs related to our living benefit valuation
and a benefit from model changes that more than offset the difference between our previously assumed interest rates versus the continued low interest rate environment. The unlocking impact for the prior year
|
•
|
A $37 million increase in benefits, claims, losses and settlement expenses related to our auto and home business due to an increase in the provision for estimated losses reflecting the impact of growth in exposures from a 5% increase in policies in force, higher 2015 accident year loss ratio assumptions, and approximately $10 million in expense primarily related to deterioration in auto collision experience resulting from an increase in miles driven and lower salvage values, as well as losses associated with our travel insurance business and $5 million related to prior year catastrophe reserve development associated with hail storms from last year. Our travel accident program is a small program we piloted but did not meet our profitability targets. Therefore, we are in the process of exiting this product line. Catastrophe losses were $8 million for the three months ended
September 30, 2015
compared to $14 million for the prior year period.
|
•
|
A $13 million decrease related to a long-term care (“LTC”) future loss reserve adjustment in the third quarter of 2015.
|
•
|
A $14 million increase in life insurance claims compared to the prior year period. Life insurance claims were higher in the third quarter of 2015 as a result of claims from several large, later duration policies that had limited reinsurance coverage. In addition, life insurance claims experience was favorable in the prior year period.
|
•
|
A $117 million decrease in expense compared to the prior year period 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. The favorable impact of the nonperformance credit spread was $185 million for the
third
quarter of
2015
compared to a favorable impact of $68 million for the prior year period.
|
•
|
A $131 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 $748 million change in the market impact on variable annuity guaranteed living benefits reserves, a favorable $618 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits and an unfavorable $1 million DSIC offset. The main market drivers contributing to these changes are summarized below:
|
•
|
Interest rates were down more in the
third
quarter of
2015
than in the
third
quarter of
2014
resulting in a larger unfavorable change in the variable annuity guaranteed living benefits liability net of the corresponding change in hedge assets relative to the prior year period.
|
•
|
Equity market impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in an increase in expense in the
third
quarter of
2015
compared to a modest benefit for the prior year period.
|
•
|
Equity volatility impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a higher benefit in the
third
quarter of
2015
compared to the prior year period.
|
•
|
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 period.
|
|
Three Months Ended September 30,
|
||||||
|
2015
|
|
2014
|
||||
|
(in millions)
|
||||||
Advice & Wealth Management
|
|
|
|
|
|
||
Net revenues
|
$
|
1,245
|
|
|
$
|
1,210
|
|
Expenses
|
1,026
|
|
|
1,005
|
|
||
Operating earnings
|
$
|
219
|
|
|
$
|
205
|
|
Asset Management
|
|
|
|
|
|
||
Net revenues
|
$
|
782
|
|
|
$
|
839
|
|
Expenses
|
602
|
|
|
631
|
|
||
Operating earnings
|
$
|
180
|
|
|
$
|
208
|
|
Annuities
|
|
|
|
|
|
||
Net revenues
|
$
|
632
|
|
|
$
|
655
|
|
Expenses
|
456
|
|
|
527
|
|
||
Operating earnings
|
$
|
176
|
|
|
$
|
128
|
|
Protection
|
|
|
|
|
|
||
Net revenues
|
$
|
586
|
|
|
$
|
553
|
|
Expenses
|
561
|
|
|
487
|
|
||
Operating earnings
|
$
|
25
|
|
|
$
|
66
|
|
Corporate & Other
|
|
|
|
|
|
||
Net revenues
|
$
|
(4
|
)
|
|
$
|
(1
|
)
|
Expenses
|
38
|
|
|
52
|
|
||
Operating loss
|
$
|
(42
|
)
|
|
$
|
(53
|
)
|
|
|
Three Months Ended September 30,
|
||||||||||||||
Segment Pretax Operating Increase (Decrease)
|
|
2015
|
|
2014
|
||||||||||||
|
Annuities
|
|
Protection
|
|
Annuities
|
|
Protection
|
|||||||||
|
|
(in millions)
|
||||||||||||||
Premiums
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Other revenues
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(29
|
)
|
||||
Total revenues
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(29
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Benefits, claims, losses and settlement expenses
|
|
(61
|
)
|
|
6
|
|
|
5
|
|
|
1
|
|
||||
Amortization of DAC
|
|
(5
|
)
|
|
10
|
|
|
17
|
|
|
(9
|
)
|
||||
Total expenses
|
|
(66
|
)
|
|
16
|
|
|
22
|
|
|
(8
|
)
|
||||
Total
|
|
$
|
66
|
|
|
$
|
(24
|
)
|
|
$
|
(22
|
)
|
|
$
|
(21
|
)
|
|
2015
|
|
2014
|
||||
|
(in billions)
|
||||||
Beginning balance
|
$
|
181.9
|
|
|
$
|
167.8
|
|
Net flows
|
3.0
|
|
|
3.8
|
|
||
Market depreciation and other
|
(11.1
|
)
|
|
(2.4
|
)
|
||
Ending balance
|
$
|
173.8
|
|
|
$
|
169.2
|
|
|
|
|
|
||||
Advisory wrap account assets ending balance
(1)
|
$
|
172.3
|
|
|
$
|
168.2
|
|
Average advisory wrap account assets
(2)
|
$
|
177.7
|
|
|
$
|
167.7
|
|
(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.
|
|
2015
|
|
2014
|
||||
|
(in billions)
|
||||||
Beginning balance
|
$
|
169.2
|
|
|
$
|
144.1
|
|
Net flows
(1)
|
12.2
|
|
|
13.9
|
|
||
Market appreciation (depreciation) and other
(1)
|
(7.6
|
)
|
|
11.2
|
|
||
Ending balance
|
$
|
173.8
|
|
|
$
|
169.2
|
|
(1)
|
Beginning April 1, 2014, net flows reflect all additions and withdrawals to and from the SPS wrap account program. For all periods presented prior to April 1, 2014, additions and withdrawals to and from certain non-billable investments of this program were reflected in the Market appreciation and other line and purchases and sales of billable investments were reported in the Net flows line. Nets flows for the SPS program are now reported on a consistent basis with our other wrap account programs.
|
|
Three Months Ended September 30,
|
|
|
|
|
|||||||||
|
2015
|
|
2014
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|||||||
Management and financial advice fees
|
$
|
658
|
|
|
$
|
621
|
|
|
$
|
37
|
|
|
6
|
%
|
Distribution fees
|
540
|
|
|
544
|
|
|
(4
|
)
|
|
(1
|
)
|
|||
Net investment income
|
38
|
|
|
33
|
|
|
5
|
|
|
15
|
|
|||
Other revenues
|
16
|
|
|
19
|
|
|
(3
|
)
|
|
(16
|
)
|
|||
Total revenues
|
1,252
|
|
|
1,217
|
|
|
35
|
|
|
3
|
|
|||
Banking and deposit interest expense
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
1,245
|
|
|
1,210
|
|
|
35
|
|
|
3
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
||||
Distribution expenses
|
764
|
|
|
742
|
|
|
22
|
|
|
3
|
|
|||
Interest and debt expense
|
2
|
|
|
1
|
|
|
1
|
|
|
NM
|
|
|||
General and administrative expense
|
260
|
|
|
262
|
|
|
(2
|
)
|
|
(1
|
)
|
|||
Total expenses
|
1,026
|
|
|
1,005
|
|
|
21
|
|
|
2
|
|
|||
Operating earnings
|
$
|
219
|
|
|
$
|
205
|
|
|
$
|
14
|
|
|
7
|
%
|
NM Not Meaningful.
|
Columbia
Mutual Fund Rankings in top 2 Lipper Quartiles |
|
|
|
|
2015
|
|
2014
|
||
Domestic Equity
|
Equal weighted
|
|
1 year
|
|
57
|
%
|
|
66
|
%
|
|
|
|
3 year
|
|
65
|
%
|
|
73
|
%
|
|
|
|
5 year
|
|
57
|
%
|
|
54
|
%
|
|
Asset weighted
|
|
1 year
|
|
59
|
%
|
|
62
|
%
|
|
|
|
3 year
|
|
72
|
%
|
|
68
|
%
|
|
|
|
5 year
|
|
70
|
%
|
|
60
|
%
|
|
|
|
|
|
|
|
|
||
International Equity
|
Equal weighted
|
|
1 year
|
|
68
|
%
|
|
73
|
%
|
|
|
|
3 year
|
|
73
|
%
|
|
59
|
%
|
|
|
|
5 year
|
|
70
|
%
|
|
60
|
%
|
|
Asset weighted
|
|
1 year
|
|
35
|
%
|
|
87
|
%
|
|
|
|
3 year
|
|
42
|
%
|
|
40
|
%
|
|
|
|
5 year
|
|
40
|
%
|
|
38
|
%
|
|
|
|
|
|
|
|
|
||
Taxable Fixed Income
|
Equal weighted
|
|
1 year
|
|
58
|
%
|
|
44
|
%
|
|
|
|
3 year
|
|
59
|
%
|
|
56
|
%
|
|
|
|
5 year
|
|
71
|
%
|
|
59
|
%
|
|
Asset weighted
|
|
1 year
|
|
72
|
%
|
|
66
|
%
|
|
|
|
3 year
|
|
82
|
%
|
|
69
|
%
|
|
|
|
5 year
|
|
85
|
%
|
|
70
|
%
|
|
|
|
|
|
|
|
|
||
Tax Exempt Fixed Income
|
Equal weighted
|
|
1 year
|
|
94
|
%
|
|
94
|
%
|
|
|
|
3 year
|
|
100
|
%
|
|
94
|
%
|
|
|
|
5 year
|
|
100
|
%
|
|
100
|
%
|
|
Asset weighted
|
|
1 year
|
|
99
|
%
|
|
84
|
%
|
|
|
|
3 year
|
|
100
|
%
|
|
84
|
%
|
|
|
|
5 year
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
||
Asset Allocation Funds
|
Equal weighted
|
|
1 year
|
|
90
|
%
|
|
58
|
%
|
|
|
|
3 year
|
|
67
|
%
|
|
64
|
%
|
|
|
|
5 year
|
|
88
|
%
|
|
89
|
%
|
|
Asset weighted
|
|
1 year
|
|
100
|
%
|
|
65
|
%
|
|
|
|
3 year
|
|
73
|
%
|
|
75
|
%
|
|
|
|
5 year
|
|
97
|
%
|
|
97
|
%
|
|
|
|
|
|
|
|
|
Number of funds with 4 or 5 Morningstar star ratings
|
|
|
Overall
|
|
51
|
|
|
54
|
|
|
|
|
3 year
|
|
52
|
|
|
48
|
|
|
|
|
5 year
|
|
44
|
|
|
46
|
|
|
|
|
|
|
|
|
|
||
Percent of funds with 4 or 5 Morningstar star ratings
|
|
|
Overall
|
|
50
|
%
|
|
51
|
%
|
|
|
|
3 year
|
|
51
|
%
|
|
46
|
%
|
|
|
|
5 year
|
|
46
|
%
|
|
47
|
%
|
|
|
|
|
|
|
|
|
||
Percent of assets with 4 or 5 Morningstar star ratings
|
|
|
Overall
|
|
58
|
%
|
|
56
|
%
|
|
|
|
3 year
|
|
57
|
%
|
|
38
|
%
|
|
|
|
5 year
|
|
54
|
%
|
|
52
|
%
|
Threadneedle
Retail Fund Rankings in Top 2 Morningstar Quartiles or Above Index Benchmark |
|
2015
|
|
2014
|
|||||
Equity
|
Equal weighted
|
|
1 year
|
|
71
|
%
|
|
62
|
%
|
|
|
|
3 year
|
|
74
|
%
|
|
73
|
%
|
|
|
|
5 year
|
|
84
|
%
|
|
84
|
%
|
|
Asset weighted
|
|
1 year
|
|
67
|
%
|
|
57
|
%
|
|
|
|
3 year
|
|
68
|
%
|
|
61
|
%
|
|
|
|
5 year
|
|
93
|
%
|
|
84
|
%
|
|
|
|
|
|
|
|
|
||
Fixed Income
|
Equal weighted
|
|
1 year
|
|
56
|
%
|
|
70
|
%
|
|
|
|
3 year
|
|
68
|
%
|
|
74
|
%
|
|
|
|
5 year
|
|
71
|
%
|
|
62
|
%
|
|
Asset weighted
|
|
1 year
|
|
66
|
%
|
|
65
|
%
|
|
|
|
3 year
|
|
69
|
%
|
|
62
|
%
|
|
|
|
5 year
|
|
59
|
%
|
|
49
|
%
|
|
|
|
|
|
|
|
|
||
Allocation (Managed) Funds
|
Equal weighted
|
|
1 year
|
|
63
|
%
|
|
63
|
%
|
|
|
|
3 year
|
|
86
|
%
|
|
83
|
%
|
|
|
|
5 year
|
|
83
|
%
|
|
67
|
%
|
|
Asset weighted
|
|
1 year
|
|
73
|
%
|
|
51
|
%
|
|
|
|
3 year
|
|
93
|
%
|
|
93
|
%
|
|
|
|
5 year
|
|
93
|
%
|
|
55
|
%
|
|
Three Months Ended September 30,
|
|
|
|
|
|||||||||
|
2015
|
|
2014
|
|
Change
|
|||||||||
|
(in billions)
|
|
|
|||||||||||
Columbia managed asset net flows
|
$
|
(5.0
|
)
|
|
$
|
(2.3
|
)
|
|
$
|
(2.7
|
)
|
|
NM
|
|
Threadneedle managed asset net flows
|
(3.6
|
)
|
|
(1.9
|
)
|
|
(1.7
|
)
|
|
(89
|
)%
|
|||
Less: Sub-advised eliminations
|
1.2
|
|
|
0.1
|
|
|
1.1
|
|
|
NM
|
|
|||
Total managed asset net flows
|
$
|
(7.4
|
)
|
|
$
|
(4.1
|
)
|
|
$
|
(3.3
|
)
|
|
(80
|
)%
|
NM Not Meaningful.
|
|
Three Months Ended September 30,
|
||||||
|
2015
|
|
2014
|
||||
|
(in billions)
|
||||||
Columbia Managed Assets Rollforward
|
|
|
|
|
|
||
Retail Funds
|
|
|
|
|
|
||
Beginning assets
|
$
|
234.8
|
|
|
$
|
243.8
|
|
Mutual fund inflows
|
7.9
|
|
|
9.1
|
|
||
Mutual fund outflows
|
(12.4
|
)
|
|
(12.0
|
)
|
||
Net VP/VIT fund flows
|
(0.2
|
)
|
|
(0.2
|
)
|
||
Net new flows
|
(4.7
|
)
|
|
(3.1
|
)
|
||
Reinvested dividends
|
0.6
|
|
|
0.6
|
|
||
Net flows
|
(4.1
|
)
|
|
(2.5
|
)
|
||
Distributions
|
(0.7
|
)
|
|
(0.7
|
)
|
||
Market depreciation and other
|
(14.1
|
)
|
|
(3.5
|
)
|
||
Total ending assets
|
215.9
|
|
|
237.1
|
|
||
|
|
|
|
||||
Institutional
|
|
|
|
|
|
||
Beginning assets
|
81.3
|
|
|
77.6
|
|
||
Inflows
|
4.4
|
|
|
5.5
|
|
||
Outflows
|
(5.7
|
)
|
|
(5.2
|
)
|
||
Net flows
|
(1.3
|
)
|
|
0.3
|
|
||
Market appreciation (depreciation) and other
|
(2.7
|
)
|
|
0.1
|
|
||
Total ending assets
|
77.3
|
|
|
78.0
|
|
||
|
|
|
|
||||
Alternative
|
|
|
|
|
|
||
Beginning assets
|
7.3
|
|
|
6.4
|
|
||
Inflows
|
0.7
|
|
|
—
|
|
||
Outflows
|
(0.3
|
)
|
|
(0.1
|
)
|
||
Net flows
|
0.4
|
|
|
(0.1
|
)
|
||
Market depreciation and other
|
(0.1
|
)
|
|
(0.1
|
)
|
||
Total ending assets
|
7.6
|
|
|
6.2
|
|
||
Affiliated General Account Assets
|
35.4
|
|
|
36.3
|
|
||
Total Columbia managed assets
|
$
|
336.2
|
|
|
$
|
357.6
|
|
Total Columbia net flows
|
$
|
(5.0
|
)
|
|
$
|
(2.3
|
)
|
|
Three Months Ended September 30,
|
||||||
|
2015
|
|
2014
|
||||
|
(in billions)
|
||||||
Threadneedle Managed Assets Rollforward
|
|
|
|
|
|
||
Retail Funds
|
|
|
|
|
|
||
Beginning assets
|
$
|
48.9
|
|
|
$
|
52.1
|
|
Mutual fund inflows
|
4.0
|
|
|
4.9
|
|
||
Mutual fund outflows
|
(5.2
|
)
|
|
(5.9
|
)
|
||
Net new flows
|
(1.2
|
)
|
|
(1.0
|
)
|
||
Reinvested dividends
|
—
|
|
|
—
|
|
||
Net flows
|
(1.2
|
)
|
|
(1.0
|
)
|
||
Distributions
|
(0.1
|
)
|
|
(0.1
|
)
|
||
Market depreciation
|
(1.4
|
)
|
|
(0.4
|
)
|
||
Foreign currency translation
(1)
|
(1.8
|
)
|
|
(2.4
|
)
|
||
Other
|
0.1
|
|
|
0.1
|
|
||
Total ending assets
|
44.5
|
|
|
48.3
|
|
||
|
|
|
|
||||
Institutional
|
|
|
|
|
|
||
Beginning assets
|
101.2
|
|
|
105.3
|
|
||
Inflows
|
1.9
|
|
|
1.8
|
|
||
Outflows
|
(4.3
|
)
|
|
(2.7
|
)
|
||
Net flows
|
(2.4
|
)
|
|
(0.9
|
)
|
||
Market appreciation (depreciation)
|
(1.7
|
)
|
|
1.2
|
|
||
Foreign currency translation
(1)
|
(3.7
|
)
|
|
(4.9
|
)
|
||
Other
|
0.6
|
|
|
0.7
|
|
||
Total ending assets
|
94.0
|
|
|
101.4
|
|
||
|
|
|
|
||||
Alternative
|
|
|
|
|
|
||
Beginning assets
|
0.6
|
|
|
0.7
|
|
||
Other
|
0.1
|
|
|
—
|
|
||
Total ending assets
|
0.7
|
|
|
0.7
|
|
||
Total Threadneedle managed assets
|
$
|
139.2
|
|
|
$
|
150.4
|
|
Total Threadneedle net flows
|
$
|
(3.6
|
)
|
|
$
|
(1.9
|
)
|
(1)
Amounts represent British Pound to US dollar conversion.
|
|
Three Months Ended September 30,
|
|
|
|
|
|||||||||
|
2015
|
|
2014
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Management and financial advice fees
|
$
|
656
|
|
|
$
|
706
|
|
|
$
|
(50
|
)
|
|
(7
|
)%
|
Distribution fees
|
123
|
|
|
124
|
|
|
(1
|
)
|
|
(1
|
)
|
|||
Net investment income
|
1
|
|
|
7
|
|
|
(6
|
)
|
|
(86
|
)
|
|||
Other revenues
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|||
Total revenues
|
782
|
|
|
839
|
|
|
(57
|
)
|
|
(7
|
)
|
|||
Banking and deposit interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
782
|
|
|
839
|
|
|
(57
|
)
|
|
(7
|
)
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|||
Distribution expenses
|
270
|
|
|
288
|
|
|
(18
|
)
|
|
(6
|
)
|
|||
Amortization of deferred acquisition costs
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|||
Interest and debt expense
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|||
General and administrative expense
|
322
|
|
|
333
|
|
|
(11
|
)
|
|
(3
|
)
|
|||
Total expenses
|
602
|
|
|
631
|
|
|
(29
|
)
|
|
(5
|
)
|
|||
Operating earnings
|
$
|
180
|
|
|
$
|
208
|
|
|
$
|
(28
|
)
|
|
(13
|
)%
|
|
Three Months Ended September 30,
|
|
|
|
|
|||||||||
|
2015
|
|
2014
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Management and financial advice fees
|
$
|
187
|
|
|
$
|
191
|
|
|
$
|
(4
|
)
|
|
(2
|
)%
|
Distribution fees
|
91
|
|
|
91
|
|
|
—
|
|
|
—
|
|
|||
Net investment income
|
208
|
|
|
235
|
|
|
(27
|
)
|
|
(11
|
)
|
|||
Premiums
|
25
|
|
|
26
|
|
|
(1
|
)
|
|
(4
|
)
|
|||
Other revenues
|
121
|
|
|
112
|
|
|
9
|
|
|
8
|
|
|||
Total revenues
|
632
|
|
|
655
|
|
|
(23
|
)
|
|
(4
|
)
|
|||
Banking and deposit interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
632
|
|
|
655
|
|
|
(23
|
)
|
|
(4
|
)
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|||
Distribution expenses
|
111
|
|
|
110
|
|
|
1
|
|
|
1
|
|
|||
Interest credited to fixed accounts
|
125
|
|
|
136
|
|
|
(11
|
)
|
|
(8
|
)
|
|||
Benefits, claims, losses and settlement expenses
|
89
|
|
|
136
|
|
|
(47
|
)
|
|
(35
|
)
|
|||
Amortization of deferred acquisition costs
|
66
|
|
|
78
|
|
|
(12
|
)
|
|
(15
|
)
|
|||
Interest and debt expense
|
10
|
|
|
9
|
|
|
1
|
|
|
11
|
|
|||
General and administrative expense
|
55
|
|
|
58
|
|
|
(3
|
)
|
|
(5
|
)
|
|||
Total expenses
|
456
|
|
|
527
|
|
|
(71
|
)
|
|
(13
|
)
|
|||
Operating earnings
|
$
|
176
|
|
|
$
|
128
|
|
|
$
|
48
|
|
|
38
|
%
|
•
|
Benefits, claims, losses and settlement expenses for the
third
quarter of 2015 included a $61 million benefit from unlocking primarily reflecting
an update to market-related inputs related to our living benefit valuation
and a benefit from model changes that more than offset the difference between our previously assumed interest rates versus the continued low interest rate environment. Benefits, claims, losses and settlement expenses for the
third
quarter of 2014 included a $5 million expense from unlocking primarily reflecting assumed interest rates, partially offset by a benefit from updating our variable annuity living benefit withdrawal utilization assumption.
|
•
|
A $4 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 $5 million increase in expense compared to the prior year period due to the impact on DSIC from actual versus expected market performance based on our view of bond and equity performance. This impact was an expense of $6 million for the
third
quarter of
2015
compared to an expense of $1 million for the prior year period primarily due to more unfavorable equity market returns compared to the prior year period.
|
|
Three Months Ended September 30,
|
|
|
|
|
|||||||||
|
2015
|
|
2014
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Management and financial advice fees
|
$
|
14
|
|
|
$
|
14
|
|
|
$
|
—
|
|
|
—
|
%
|
Distribution fees
|
24
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|||
Net investment income
|
118
|
|
|
111
|
|
|
7
|
|
|
6
|
|
|||
Premiums
|
339
|
|
|
329
|
|
|
10
|
|
|
3
|
|
|||
Other revenues
|
91
|
|
|
75
|
|
|
16
|
|
|
21
|
|
|||
Total revenues
|
586
|
|
|
553
|
|
|
33
|
|
|
6
|
|
|||
Banking and deposit interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
586
|
|
|
553
|
|
|
33
|
|
|
6
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|||
Distribution expenses
|
12
|
|
|
14
|
|
|
(2
|
)
|
|
(14
|
)
|
|||
Interest credited to fixed accounts
|
42
|
|
|
39
|
|
|
3
|
|
|
8
|
|
|||
Benefits, claims, losses and settlement expenses
|
384
|
|
|
338
|
|
|
46
|
|
|
14
|
|
|||
Amortization of deferred acquisition costs
|
50
|
|
|
26
|
|
|
24
|
|
|
92
|
|
|||
Interest and debt expense
|
9
|
|
|
6
|
|
|
3
|
|
|
50
|
|
|||
General and administrative expense
|
64
|
|
|
64
|
|
|
—
|
|
|
—
|
|
|||
Total expenses
|
561
|
|
|
487
|
|
|
74
|
|
|
15
|
|
|||
Operating earnings
|
$
|
25
|
|
|
$
|
66
|
|
|
$
|
(41
|
)
|
|
(62
|
)%
|
|
Three Months Ended September 30,
|
|
|
|
|
|||||||||
|
2015
|
|
2014
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Net investment loss
|
$
|
(5
|
)
|
|
$
|
(3
|
)
|
|
$
|
(2
|
)
|
|
(67
|
)%
|
Other revenues
|
1
|
|
|
2
|
|
|
(1
|
)
|
|
(50
|
)
|
|||
Total revenues
|
(4
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
NM
|
|
|||
Banking and deposit interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
(4
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
NM
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
||||
Distribution expense
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
NM
|
|
|||
Interest and debt expense
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|||
General and administrative expense
|
35
|
|
|
48
|
|
|
(13
|
)
|
|
(27
|
)
|
|||
Total expenses
|
38
|
|
|
52
|
|
|
(14
|
)
|
|
(27
|
)
|
|||
Operating loss
|
$
|
(42
|
)
|
|
$
|
(53
|
)
|
|
$
|
11
|
|
|
21
|
%
|
NM Not Meaningful.
|
|
Nine Months Ended September 30,
|
|
|
|||||||||||
|
2015
|
|
2014
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|||||||
Management and financial advice fees
|
$
|
4,451
|
|
|
$
|
4,321
|
|
|
$
|
130
|
|
|
3
|
%
|
Distribution fees
|
1,389
|
|
|
1,410
|
|
|
(21
|
)
|
|
(1
|
)
|
|||
Net investment income
|
1,228
|
|
|
1,332
|
|
|
(104
|
)
|
|
(8
|
)
|
|||
Premiums
|
1,081
|
|
|
1,026
|
|
|
55
|
|
|
5
|
|
|||
Other revenues
|
939
|
|
|
1,111
|
|
|
(172
|
)
|
|
(15
|
)
|
|||
Total revenues
|
9,088
|
|
|
9,200
|
|
|
(112
|
)
|
|
(1
|
)
|
|||
Banking and deposit interest expense
|
21
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
9,067
|
|
|
9,179
|
|
|
(112
|
)
|
|
(1
|
)
|
|||
Expenses
|
|
|
|
|
|
|
|
|||||||
Distribution expenses
|
2,460
|
|
|
2,409
|
|
|
51
|
|
|
2
|
|
|||
Interest credited to fixed accounts
|
503
|
|
|
529
|
|
|
(26
|
)
|
|
(5
|
)
|
|||
Benefits, claims, losses and settlement expenses
|
1,547
|
|
|
1,414
|
|
|
133
|
|
|
9
|
|
|||
Amortization of deferred acquisition costs
|
302
|
|
|
281
|
|
|
21
|
|
|
7
|
|
|||
Interest and debt expense
|
271
|
|
|
237
|
|
|
34
|
|
|
14
|
|
|||
General and administrative expense
|
2,288
|
|
|
2,320
|
|
|
(32
|
)
|
|
(1
|
)
|
|||
Total expenses
|
7,371
|
|
|
7,190
|
|
|
181
|
|
|
3
|
|
|||
Income from continuing operations before income tax provision
|
1,696
|
|
|
1,989
|
|
|
(293
|
)
|
|
(15
|
)
|
|||
Income tax provision
|
389
|
|
|
441
|
|
|
(52
|
)
|
|
(12
|
)
|
|||
Income from continuing operations
|
1,307
|
|
|
1,548
|
|
|
(241
|
)
|
|
(16
|
)
|
|||
Loss from discontinued operations, net of tax
|
—
|
|
|
(1
|
)
|
|
1
|
|
|
NM
|
|
|||
Net income
|
1,307
|
|
|
1,547
|
|
|
(240
|
)
|
|
(16
|
)
|
|||
Less: Net income attributable to noncontrolling interests
|
102
|
|
|
353
|
|
|
(251
|
)
|
|
(71
|
)
|
|||
Net income attributable to Ameriprise Financial
|
$
|
1,205
|
|
|
$
|
1,194
|
|
|
$
|
11
|
|
|
1
|
%
|
NM Not Meaningful.
|
•
|
The nine months ended
September 30, 2015
included a $58 million benefit from unlocking compared to a $6 million expense in the prior year period. The unlocking impact for the nine months ended
September 30, 2015
primarily reflected
an update to market-related inputs related to our living benefit valuation
and a benefit from model changes that more than offset the difference between our previously assumed interest rates versus the continued low interest rate environment. The unlocking impact for the prior year period reflected assumed interest rates, partially offset by a benefit from updating our variable annuity living benefit withdrawal utilization assumption.
|
•
|
An $83 million increase in benefits, claims, losses and settlement expenses related to our auto and home business due to an increase in the provision for estimated losses reflecting the impact of growth in exposures from a 5% increase in policies in force, higher 2015 accident year loss ratio assumptions, and approximately $10 million in expense primarily related to deterioration in auto collision experience resulting from an increase in miles driven and lower salvage values, as well as losses of $6 million associated with our travel insurance business and $8 million related to prior year catastrophe reserve development associated with hail storms from last year. Auto and home losses for the prior year period included a $30 million impact related to an increase to prior accident year loss reserves and $11 million from non-catastrophe weather-related losses in the first quarter
|
•
|
A $13 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.
|
•
|
An increase in expenses compared to the prior year period due to a $48 million benefit for the nine months ended September 30, 2014 from policyholder movement of investments in Portfolio Navigator funds under certain in force variable annuities with living benefit guarantees to the Portfolio Stabilizer funds compared to a $7 million benefit for the nine months ended
September 30, 2015
.
|
•
|
A $20 million increase in life insurance claims compared to the prior year period.
|
•
|
A $9 million increase in expense compared to the prior year period due to the impact on DSIC from actual versus expected market performance based on our view of bond and equity performance. This impact was an expense of $5 million for the nine months ended
September 30, 2015
reflecting unfavorable equity market returns compared to a benefit of $4 million for the prior year period reflecting favorable equity market returns and bond fund returns.
|
•
|
An $88 million decrease in expense compared to the prior year period 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. The favorable impact of the nonperformance credit spread was $166 million for the nine months ended
September 30, 2015
compared to a favorable impact of $78 million for the prior year period.
|
•
|
A $101 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 $197 million change in the market impact on variable annuity guaranteed living benefits reserves, a favorable $99 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits and an unfavorable $3 million DSIC offset. The main market drivers contributing to these changes are summarized below:
|
•
|
Interest rate impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in higher expense in the 2015 period compared to the 2014 period.
|
•
|
Equity markets generally decreased in the 2015 period resulting in an unfavorable change in the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets whereas equity markets generally increased in the 2014 period resulting in a favorable change.
|
•
|
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 period.
|
|
Nine Months Ended September 30,
|
||||||
|
2015
|
|
2014
|
||||
|
(in millions)
|
||||||
Advice & Wealth Management
|
|
|
|
|
|
||
Net revenues
|
$
|
3,747
|
|
|
$
|
3,557
|
|
Expenses
|
3,098
|
|
|
2,977
|
|
||
Operating earnings
|
$
|
649
|
|
|
$
|
580
|
|
Asset Management
|
|
|
|
|
|
||
Net revenues
|
$
|
2,421
|
|
|
$
|
2,490
|
|
Expenses
|
1,853
|
|
|
1,900
|
|
||
Operating earnings
|
$
|
568
|
|
|
$
|
590
|
|
Annuities
|
|
|
|
|
|
||
Net revenues
|
$
|
1,914
|
|
|
$
|
1,942
|
|
Expenses
|
1,416
|
|
|
1,468
|
|
||
Operating earnings
|
$
|
498
|
|
|
$
|
474
|
|
Protection
|
|
|
|
|
|
||
Net revenues
|
$
|
1,776
|
|
|
$
|
1,687
|
|
Expenses
|
1,628
|
|
|
1,471
|
|
||
Operating earnings
|
$
|
148
|
|
|
$
|
216
|
|
Corporate & Other
|
|
|
|
|
|
||
Net revenues
|
$
|
(12
|
)
|
|
$
|
3
|
|
Expenses
|
149
|
|
|
186
|
|
||
Operating loss
|
$
|
(161
|
)
|
|
$
|
(183
|
)
|
|
2015
|
|
2014
|
||||
|
(in billions)
|
||||||
Beginning balance
|
$
|
174.7
|
|
|
$
|
153.5
|
|
Net flows
(1)
|
9.1
|
|
|
11.1
|
|
||
Market appreciation (depreciation) and other
(1)
|
(10.0
|
)
|
|
4.6
|
|
||
Ending balance
|
$
|
173.8
|
|
|
$
|
169.2
|
|
|
|
|
|
||||
Advisory wrap account assets ending balance
(2)
|
$
|
172.3
|
|
|
$
|
168.2
|
|
Average advisory wrap account assets
(3)
|
$
|
177.9
|
|
|
$
|
161.2
|
|
(1)
|
Beginning April 1, 2014, net flows reflect all additions and withdrawals to and from the SPS wrap account program. For all periods presented prior to April 1, 2014, additions and withdrawals to and from certain non-billable investments of this program were reflected in the Market appreciation and other line and purchases and sales of billable investments were reported in the Net flows line. Nets flows for the SPS program are now reported on a consistent basis with our other wrap account programs.
|
(2)
|
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.
|
(3)
|
Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period.
|
|
Nine Months Ended September 30,
|
|
|
|
|
|||||||||
|
2015
|
|
2014
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|||||||
Management and financial advice fees
|
$
|
1,961
|
|
|
$
|
1,780
|
|
|
$
|
181
|
|
|
10
|
%
|
Distribution fees
|
1,644
|
|
|
1,642
|
|
|
2
|
|
|
—
|
|
|||
Net investment income
|
108
|
|
|
101
|
|
|
7
|
|
|
7
|
|
|||
Other revenues
|
55
|
|
|
55
|
|
|
—
|
|
|
—
|
|
|||
Total revenues
|
3,768
|
|
|
3,578
|
|
|
190
|
|
|
5
|
|
|||
Banking and deposit interest expense
|
21
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
3,747
|
|
|
3,557
|
|
|
190
|
|
|
5
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
||||
Distribution expenses
|
2,304
|
|
|
2,183
|
|
|
121
|
|
|
6
|
|
|||
Interest and debt expense
|
6
|
|
|
5
|
|
|
1
|
|
|
20
|
|
|||
General and administrative expense
|
788
|
|
|
789
|
|
|
(1
|
)
|
|
—
|
|
|||
Total expenses
|
3,098
|
|
|
2,977
|
|
|
121
|
|
|
4
|
|
|||
Operating earnings
|
$
|
649
|
|
|
$
|
580
|
|
|
$
|
69
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
Average
(1)
|
|
|
|
|
||||||||||||||||
|
September 30,
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
||||||||||||||||||
|
2015
|
|
2014
|
|
Change
|
|
2015
|
|
2014
|
|
Change
|
||||||||||||||||||
|
(in billions)
|
||||||||||||||||||||||||||||
Columbia managed assets
|
$
|
336.2
|
|
|
$
|
357.6
|
|
|
$
|
(21.4
|
)
|
|
(6
|
)%
|
|
$
|
357.8
|
|
|
$
|
358.6
|
|
|
$
|
(0.8
|
)
|
|
—
|
%
|
Threadneedle managed assets
|
139.2
|
|
|
150.4
|
|
|
(11.2
|
)
|
|
(7
|
)
|
|
148.7
|
|
|
151.5
|
|
|
(2.8
|
)
|
|
(2
|
)
|
||||||
Less: Sub-advised eliminations
|
(4.3
|
)
|
|
(3.2
|
)
|
|
(1.1
|
)
|
|
(34
|
)
|
|
(5.1
|
)
|
|
(3.4
|
)
|
|
(1.7
|
)
|
|
(50
|
)
|
||||||
Total managed assets
|
$
|
471.1
|
|
|
$
|
504.8
|
|
|
$
|
(33.7
|
)
|
|
(7
|
)%
|
|
$
|
501.4
|
|
|
$
|
506.7
|
|
|
$
|
(5.3
|
)
|
|
(1
|
)%
|
(1)
Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period.
|
|
Nine Months Ended September 30,
|
|
|
|
|
|||||||||
|
2015
|
|
2014
|
|
Change
|
|||||||||
|
(in billions)
|
|
|
|||||||||||
Columbia managed asset net flows
|
$
|
(8.5
|
)
|
|
$
|
(4.8
|
)
|
|
$
|
(3.7
|
)
|
|
(77
|
)%
|
Threadneedle managed asset net flows
|
(5.5
|
)
|
|
1.1
|
|
|
(6.6
|
)
|
|
NM
|
|
|||
Less: Sub-advised eliminations
|
(1.2
|
)
|
|
0.1
|
|
|
(1.3
|
)
|
|
NM
|
|
|||
Total managed asset net flows
|
$
|
(15.2
|
)
|
|
$
|
(3.6
|
)
|
|
$
|
(11.6
|
)
|
|
NM
|
|
NM Not Meaningful.
|
|
Nine Months Ended September 30,
|
||||||
|
2015
|
|
2014
|
||||
|
(in billions)
|
||||||
Columbia Managed Assets Rollforward
|
|
|
|
|
|
||
Retail Funds
|
|
|
|
|
|
||
Beginning assets
|
$
|
237.7
|
|
|
$
|
239.4
|
|
Mutual fund inflows
|
25.9
|
|
|
26.4
|
|
||
Mutual fund outflows
|
(37.6
|
)
|
|
(34.6
|
)
|
||
Net VP/VIT fund flows
|
(0.6
|
)
|
|
(0.6
|
)
|
||
Net new flows
|
(12.3
|
)
|
|
(8.8
|
)
|
||
Reinvested dividends
|
4.6
|
|
|
4.4
|
|
||
Net flows
|
(7.7
|
)
|
|
(4.4
|
)
|
||
Distributions
|
(5.5
|
)
|
|
(5.3
|
)
|
||
Market appreciation (depreciation) and other
|
(8.6
|
)
|
|
7.4
|
|
||
Total ending assets
|
215.9
|
|
|
237.1
|
|
||
|
|
|
|
||||
Institutional
|
|
|
|
|
|
||
Beginning assets
|
80.7
|
|
|
75.6
|
|
||
Inflows
|
14.4
|
|
|
14.6
|
|
||
Outflows
|
(16.2
|
)
|
|
(15.5
|
)
|
||
Net flows
|
(1.8
|
)
|
|
(0.9
|
)
|
||
Market appreciation (depreciation) and other
|
(1.6
|
)
|
|
3.3
|
|
||
Total ending assets
|
77.3
|
|
|
78.0
|
|
||
|
|
|
|
||||
Alternative
|
|
|
|
|
|
||
Beginning assets
|
6.7
|
|
|
5.6
|
|
||
Inflows
|
1.5
|
|
|
1.1
|
|
||
Outflows
|
(0.5
|
)
|
|
(0.6
|
)
|
||
Net flows
|
1.0
|
|
|
0.5
|
|
||
Market appreciation (depreciation) and other
|
(0.1
|
)
|
|
0.1
|
|
||
Total ending assets
|
7.6
|
|
|
6.2
|
|
||
Affiliated General Account Assets
|
35.4
|
|
|
36.3
|
|
||
Total Columbia managed assets
|
$
|
336.2
|
|
|
$
|
357.6
|
|
Total Columbia net flows
|
$
|
(8.5
|
)
|
|
$
|
(4.8
|
)
|
|
Nine Months Ended September 30,
|
||||||
|
2015
|
|
2014
|
||||
|
(in billions)
|
||||||
Threadneedle Managed Assets Rollforward
|
|
|
|
|
|
||
Retail Funds
|
|
|
|
|
|
||
Beginning assets
|
$
|
46.5
|
|
|
$
|
50.6
|
|
Mutual fund inflows
|
15.1
|
|
|
17.7
|
|
||
Mutual fund outflows
|
(15.1
|
)
|
|
(19.7
|
)
|
||
Net new flows
|
—
|
|
|
(2.0
|
)
|
||
Reinvested dividends
|
0.1
|
|
|
0.1
|
|
||
Net flows
|
0.1
|
|
|
(1.9
|
)
|
||
Distributions
|
(0.4
|
)
|
|
(0.4
|
)
|
||
Market depreciation
|
(0.8
|
)
|
|
—
|
|
||
Foreign currency translation
(1)
|
(1.1
|
)
|
|
(0.8
|
)
|
||
Other
(2)
|
0.2
|
|
|
0.8
|
|
||
Total ending assets
|
44.5
|
|
|
48.3
|
|
||
|
|
|
|
||||
Institutional
|
|
|
|
|
|
||
Beginning assets
|
100.7
|
|
|
96.1
|
|
||
Inflows
|
6.9
|
|
|
11.5
|
|
||
Outflows
|
(12.5
|
)
|
|
(8.4
|
)
|
||
Net flows
|
(5.6
|
)
|
|
3.1
|
|
||
Market appreciation (depreciation)
|
(0.9
|
)
|
|
1.8
|
|
||
Foreign currency translation
(1)
|
(2.5
|
)
|
|
(1.8
|
)
|
||
Other
|
2.3
|
|
|
2.2
|
|
||
Total ending assets
|
94.0
|
|
|
101.4
|
|
||
|
|
|
|
||||
Alternative
|
|
|
|
|
|
||
Beginning assets
|
0.7
|
|
|
0.8
|
|
||
Inflows
|
—
|
|
|
—
|
|
||
Outflows
|
—
|
|
|
(0.1
|
)
|
||
Net flows
|
—
|
|
|
(0.1
|
)
|
||
Total ending assets
|
0.7
|
|
|
0.7
|
|
||
Total Threadneedle managed assets
|
$
|
139.2
|
|
|
$
|
150.4
|
|
Total Threadneedle net flows
|
$
|
(5.5
|
)
|
|
$
|
1.1
|
|
(1)
Amounts represent British Pound to US dollar conversion.
(2)
Other for Q2 2015 includes $(0.5) billion related to the sale of the Multi-Manager business.
|
|
Nine Months Ended September 30,
|
|
|
|
|
|||||||||
|
2015
|
|
2014
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Management and financial advice fees
|
$
|
2,026
|
|
|
$
|
2,093
|
|
|
$
|
(67
|
)
|
|
(3
|
)%
|
Distribution fees
|
376
|
|
|
368
|
|
|
8
|
|
|
2
|
|
|||
Net investment income
|
11
|
|
|
24
|
|
|
(13
|
)
|
|
(54
|
)
|
|||
Other revenues
|
8
|
|
|
5
|
|
|
3
|
|
|
60
|
|
|||
Total revenues
|
2,421
|
|
|
2,490
|
|
|
(69
|
)
|
|
(3
|
)
|
|||
Banking and deposit interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
2,421
|
|
|
2,490
|
|
|
(69
|
)
|
|
(3
|
)
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|||
Distribution expenses
|
826
|
|
|
863
|
|
|
(37
|
)
|
|
(4
|
)
|
|||
Amortization of deferred acquisition costs
|
12
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|||
Interest and debt expense
|
19
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|||
General and administrative expense
|
996
|
|
|
1,006
|
|
|
(10
|
)
|
|
(1
|
)
|
|||
Total expenses
|
1,853
|
|
|
1,900
|
|
|
(47
|
)
|
|
(2
|
)
|
|||
Operating earnings
|
$
|
568
|
|
|
$
|
590
|
|
|
$
|
(22
|
)
|
|
(4
|
)%
|
|
Nine Months Ended September 30,
|
|
|
|
|
|||||||||
|
2015
|
|
2014
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Management and financial advice fees
|
$
|
569
|
|
|
$
|
563
|
|
|
$
|
6
|
|
|
1
|
%
|
Distribution fees
|
274
|
|
|
270
|
|
|
4
|
|
|
1
|
|
|||
Net investment income
|
647
|
|
|
711
|
|
|
(64
|
)
|
|
(9
|
)
|
|||
Premiums
|
77
|
|
|
84
|
|
|
(7
|
)
|
|
(8
|
)
|
|||
Other revenues
|
347
|
|
|
314
|
|
|
33
|
|
|
11
|
|
|||
Total revenues
|
1,914
|
|
|
1,942
|
|
|
(28
|
)
|
|
(1
|
)
|
|||
Banking and deposit interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
1,914
|
|
|
1,942
|
|
|
(28
|
)
|
|
(1
|
)
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|||
Distribution expenses
|
335
|
|
|
326
|
|
|
9
|
|
|
3
|
|
|||
Interest credited to fixed accounts
|
377
|
|
|
423
|
|
|
(46
|
)
|
|
(11
|
)
|
|||
Benefits, claims, losses and settlement expenses
|
339
|
|
|
335
|
|
|
4
|
|
|
1
|
|
|||
Amortization of deferred acquisition costs
|
168
|
|
|
183
|
|
|
(15
|
)
|
|
(8
|
)
|
|||
Interest and debt expense
|
29
|
|
|
28
|
|
|
1
|
|
|
4
|
|
|||
General and administrative expense
|
168
|
|
|
173
|
|
|
(5
|
)
|
|
(3
|
)
|
|||
Total expenses
|
1,416
|
|
|
1,468
|
|
|
(52
|
)
|
|
(4
|
)
|
|||
Operating earnings
|
$
|
498
|
|
|
$
|
474
|
|
|
$
|
24
|
|
|
5
|
%
|
•
|
Benefits, claims, losses and settlement expenses for the nine months ended
September 30, 2015
included a $61 million benefit from unlocking primarily reflecting
an update to market-related inputs related to our living benefit valuation
and a benefit from model changes that more than offset the difference between our previously assumed interest rates versus the continued low interest rate environment. Benefits, claims, losses and settlement expenses for the prior year period included a $5 million expense from unlocking primarily reflecting assumed interest rates, partially offset by a benefit from updating our variable annuity living benefit withdrawal utilization assumption.
|
•
|
An increase in expenses compared to the prior year period due to a $50 million benefit for the nine months ended September 30, 2014 from policyholder movement of investments in Portfolio Navigator funds under certain in force variable annuities with living benefit guarantees to the Portfolio Stabilizer funds compared to a $7 million benefit for the nine months ended
September 30, 2015
.
|
•
|
A $13 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 $9 million increase in expense compared to the prior year period due to the impact on DSIC from actual versus expected market performance based on our view of bond and equity performance. This impact was an expense of $5 million for the nine months ended
September 30, 2015
reflecting unfavorable equity market returns compared to a benefit of $4 million for the prior year period reflecting favorable equity market returns and bond fund returns.
|
|
Nine Months Ended September 30,
|
|
|
|
|
|||||||||
|
2015
|
|
2014
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Management and financial advice fees
|
$
|
42
|
|
|
$
|
44
|
|
|
$
|
(2
|
)
|
|
(5
|
)%
|
Distribution fees
|
71
|
|
|
69
|
|
|
2
|
|
|
3
|
|
|||
Net investment income
|
350
|
|
|
332
|
|
|
18
|
|
|
5
|
|
|||
Premiums
|
1,015
|
|
|
954
|
|
|
61
|
|
|
6
|
|
|||
Other revenues
|
298
|
|
|
288
|
|
|
10
|
|
|
3
|
|
|||
Total revenues
|
1,776
|
|
|
1,687
|
|
|
89
|
|
|
5
|
|
|||
Banking and deposit interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
1,776
|
|
|
1,687
|
|
|
89
|
|
|
5
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|||
Distribution expenses
|
41
|
|
|
44
|
|
|
(3
|
)
|
|
(7
|
)
|
|||
Interest credited to fixed accounts
|
121
|
|
|
114
|
|
|
7
|
|
|
6
|
|
|||
Benefits, claims, losses and settlement expenses
|
1,132
|
|
|
1,016
|
|
|
116
|
|
|
11
|
|
|||
Amortization of deferred acquisition costs
|
121
|
|
|
90
|
|
|
31
|
|
|
34
|
|
|||
Interest and debt expense
|
25
|
|
|
20
|
|
|
5
|
|
|
25
|
|
|||
General and administrative expense
|
188
|
|
|
187
|
|
|
1
|
|
|
1
|
|
|||
Total expenses
|
1,628
|
|
|
1,471
|
|
|
157
|
|
|
11
|
|
|||
Operating earnings
|
$
|
148
|
|
|
$
|
216
|
|
|
$
|
(68
|
)
|
|
(31
|
)%
|
|
Nine Months Ended September 30,
|
|
|
|
|
|||||||||
|
2015
|
|
2014
|
|
Change
|
|||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Distribution fees
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
(1
|
)
|
|
NM
|
|
Net investment income (loss)
|
(22
|
)
|
|
(4
|
)
|
|
(18
|
)
|
|
NM
|
|
|||
Other revenues
|
10
|
|
|
6
|
|
|
4
|
|
|
67
|
%
|
|||
Total revenues
|
(12
|
)
|
|
3
|
|
|
(15
|
)
|
|
NM
|
|
|||
Banking and deposit interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
(12
|
)
|
|
3
|
|
|
(15
|
)
|
|
NM
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
||||
Distribution expenses
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
NM
|
|
|||
Interest and debt expense
|
12
|
|
|
16
|
|
|
(4
|
)
|
|
(25
|
)
|
|||
General and administrative expense
|
137
|
|
|
169
|
|
|
(32
|
)
|
|
(19
|
)
|
|||
Total expenses
|
149
|
|
|
186
|
|
|
(37
|
)
|
|
(20
|
)
|
|||
Operating loss
|
$
|
(161
|
)
|
|
$
|
(183
|
)
|
|
$
|
22
|
|
|
12
|
%
|
NM Not Meaningful.
|
|
Account Values with 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
|
||||||||||||
Range of Guaranteed Minimum Crediting Rates
|
(in billions, except percentages)
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1% - 1.99%
|
$
|
2.5
|
|
|
$
|
0.2
|
|
|
$
|
0.4
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
|
$
|
3.3
|
|
2% - 2.99%
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
||||||
3% - 3.99%
|
9.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.1
|
|
||||||
4% - 5.00%
|
5.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.5
|
|
||||||
Total
|
$
|
17.6
|
|
|
$
|
0.2
|
|
|
$
|
0.4
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
|
$
|
18.4
|
|
Percentage of Account Values
That Reset In: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Next 12 months
(1)
|
100
|
%
|
|
53
|
%
|
|
38
|
%
|
|
43
|
%
|
|
100
|
%
|
|
96
|
%
|
||||||
> 12 months to 24 months
(2)
|
—
|
|
|
29
|
|
|
19
|
|
|
9
|
|
|
—
|
|
|
1
|
|
||||||
> 24 months
(2)
|
—
|
|
|
18
|
|
|
43
|
|
|
48
|
|
|
—
|
|
|
3
|
|
||||||
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
||||||
(1)
Includes contracts with annual discretionary crediting rate resets and contracts with twelve or less months until the crediting rate becomes discretionary on an annual basis.
(2)
Includes contracts with more than twelve months remaining until the crediting rate becomes an annual discretionary rate.
|
|
|
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)
|
|
$
|
(226
|
)
|
|
$
|
4
|
|
|
$
|
(222
|
)
|
DAC and DSIC amortization
(2) (3)
|
|
(106
|
)
|
|
—
|
|
|
(106
|
)
|
|||
Variable annuity riders:
|
|
|
|
|
|
|
|
|
|
|||
GMDB and GMIB
(3)
|
|
(142
|
)
|
|
—
|
|
|
(142
|
)
|
|||
GMWB
|
|
(425
|
)
|
|
435
|
|
|
10
|
|
|||
GMAB
|
|
(50
|
)
|
|
49
|
|
|
(1
|
)
|
|||
DAC and DSIC amortization
(4)
|
|
N/A
|
|
|
N/A
|
|
|
(1
|
)
|
|||
Total variable annuity riders
|
|
(617
|
)
|
|
484
|
|
|
(134
|
)
|
|||
Macro hedge program
(5)
|
|
—
|
|
|
17
|
|
|
17
|
|
|||
Equity indexed annuities
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|||
Certificates
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|||
Indexed universal life insurance
|
|
9
|
|
|
(8
|
)
|
|
1
|
|
|||
Total
|
|
$
|
(938
|
)
|
|
$
|
495
|
|
|
$
|
(444
|
)
|
|
|
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)
|
|
$
|
(48
|
)
|
|
$
|
—
|
|
|
$
|
(48
|
)
|
Variable annuity riders:
|
|
|
|
|
|
|
|
|
|
|||
GMDB and GMIB
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
GMWB
|
|
971
|
|
|
(1,096
|
)
|
|
(125
|
)
|
|||
GMAB
|
|
38
|
|
|
(41
|
)
|
|
(3
|
)
|
|||
DAC and DSIC amortization
(4)
|
|
N/A
|
|
|
N/A
|
|
|
22
|
|
|||
Total variable annuity riders
|
|
1,009
|
|
|
(1,137
|
)
|
|
(106
|
)
|
|||
Macro hedge program
(5)
|
|
—
|
|
|
23
|
|
|
23
|
|
|||
Fixed annuities, fixed insurance and fixed portion of variable annuities and variable insurance products
|
|
66
|
|
|
—
|
|
|
66
|
|
|||
Brokerage client cash balances
|
|
142
|
|
|
—
|
|
|
142
|
|
|||
Certificates
|
|
4
|
|
|
—
|
|
|
4
|
|
|||
Indexed universal life insurance
|
|
44
|
|
|
1
|
|
|
45
|
|
|||
Total
|
|
$
|
1,217
|
|
|
$
|
(1,113
|
)
|
|
$
|
126
|
|
N/A Not Applicable.
|
|
Actual Capital
|
|
Regulatory
Capital Requirements |
||||||||||||
|
September 30, 2015
|
|
December 31, 2014
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||||
|
(in millions)
|
||||||||||||||
RiverSource Life
(1)(2)
|
$
|
3,839
|
|
|
$
|
3,614
|
|
|
N/A
|
|
|
$
|
595
|
|
|
RiverSource Life of NY
(1)(2)
|
338
|
|
|
312
|
|
|
N/A
|
|
|
59
|
|
||||
IDS Property Casualty
(1)(3)
|
725
|
|
|
560
|
|
|
$
|
211
|
|
|
200
|
|
|||
Ameriprise Insurance Company
(1)(3)
|
46
|
|
|
45
|
|
|
2
|
|
|
2
|
|
||||
ACC
(4)(5)
|
258
|
|
|
248
|
|
|
241
|
|
|
226
|
|
||||
Threadneedle
(6)
|
306
|
|
|
221
|
|
|
168
|
|
|
199
|
|
||||
Ameriprise National Trust Bank
(7)
|
34
|
|
|
21
|
|
|
10
|
|
|
10
|
|
||||
AFSI
(3)(4)
|
137
|
|
|
93
|
|
|
#
|
|
|
#
|
|
||||
Ameriprise Captive Insurance Company
(3)
|
67
|
|
|
61
|
|
|
11
|
|
|
10
|
|
||||
Ameriprise Trust Company
(3)
|
27
|
|
|
26
|
|
|
21
|
|
|
24
|
|
||||
AEIS
(3)(4)
|
110
|
|
|
117
|
|
|
54
|
|
|
49
|
|
||||
RiverSource Distributors, Inc.
(3)(4)
|
14
|
|
|
13
|
|
|
#
|
|
|
#
|
|
||||
Columbia Management Investment Distributors, Inc.
(3)(4)
|
19
|
|
|
18
|
|
|
#
|
|
|
#
|
|
||||
N/A Not applicable.
# Amounts are less than $1 million.
|
(1)
|
Actual capital is determined on a statutory basis.
|
(2)
|
Regulatory capital requirement is based on the statutory risk-based capital filing.
|
(3)
|
Regulatory capital requirement is based on the applicable regulatory requirement, calculated as of
September 30, 2015
and
December 31, 2014
.
|
(4)
|
Actual capital is determined on an adjusted GAAP basis.
|
(5)
|
ACC is required to hold capital in compliance with the Minnesota Department of Commerce and SEC capital requirements.
|
(6)
|
Actual capital and regulatory capital requirements are determined in accordance with U.K. regulatory legislation. The regulatory capital requirements at
September 30, 2015
represent calculations at
December 31, 2014
of the rule based requirements, as specified by FCA regulations.
|
(7)
|
Ameriprise National Trust Bank is required to maintain capital in compliance with the Office of the Comptroller of the Currency regulations and policies.
|
•
|
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 or in light of the U.S. Department of Labor pending rule and exemptions pertaining to the fiduciary status of investment advice providers to 401(k) plan, plan sponsors, plan participants and the holders of individual retirement or health savings accounts;
|
•
|
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 evaluations of any such third parties published by rating agencies or other analysts, and the reactions of other market participants or the Company’s regulators, advisors, distribution partners or customers in response to any such evaluation or prospect of changes in evaluation;
|
•
|
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
|
•
|
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.
|
|
|
|
AMERIPRISE FINANCIAL, INC.
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
|
|
|
|
Date:
|
November 2, 2015
|
By
|
/s/ Walter S. Berman
|
|
|
|
|
Walter S. Berman
|
|
|
|
|
Executive Vice President and
|
|
|
|
|
Chief Financial Officer
|
|
|
|
|
|
|
Date:
|
November 2, 2015
|
By
|
/s/ David K. Stewart
|
|
|
|
|
David K. Stewart
|
|
|
|
|
Senior Vice President and Controller
|
|
|
|
|
(Principal Accounting Officer)
|
|
3.1
|
Amended and 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).
|
10.1*
|
First Amendment to the Ameriprise Financial 2008 Employment Incentive Equity Award Plan dated September 29, 2015.
|
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 Quarterly Report on Form 10-Q for the period ended
September 30, 2015
, formatted in XBRL: (i) Consolidated Statements of Operations for the
three months and nine months
ended
September 30, 2015
and
2014
; (ii) Consolidated Statements of Comprehensive Income for the
three months and nine months
ended
September 30, 2015
and
2014
; (iii) Consolidated Balance Sheets at
September 30, 2015
and
December 31, 2014
; (iv) Consolidated Statements of Equity for the
nine
months ended
September 30, 2015
and
2014
; (v) Consolidated Statements of Cash Flows for the
nine
months ended
September 30, 2015
and
2014
; and (vi) Notes to the Consolidated Financial Statements.
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Ameriprise Financial, Inc.;
|
2.
|
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;
|
3.
|
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;
|
4.
|
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:
|
(a)
|
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;
|
(b)
|
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;
|
(c)
|
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
|
(d)
|
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
|
5.
|
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):
|
(a)
|
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
|
(b)
|
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.
|
Date: November 2, 2015
|
By
|
/s/ James M. Cracchiolo
|
|
|
James M. Cracchiolo
|
|
|
Chief Executive Officer
|
|
E-5
|
|
|
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Ameriprise Financial, Inc.;
|
2.
|
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;
|
3.
|
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;
|
4.
|
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:
|
(a)
|
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;
|
(b)
|
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;
|
(c)
|
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
|
(d)
|
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
|
5.
|
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):
|
(a)
|
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
|
(b)
|
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.
|
Date: November 2, 2015
|
By
|
/s/ Walter S. Berman
|
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Walter S. Berman
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Chief Financial Officer
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E-6
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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: November 2, 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: November 2, 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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E-7
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