|
x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
13-3180631
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
1099 Ameriprise Financial Center, Minneapolis, Minnesota
|
55474
|
|
(Address of principal executive offices)
|
(Zip Code)
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Title of each class
|
|
Name on each exchange on which registered
|
Common Stock (par value $.01 per share)
|
The New York Stock Exchange, Inc.
|
Class
|
|
Outstanding at February 10, 2017
|
|
Common Stock (par value $.01 per share)
|
|
154,056,430 shares
|
|
•
|
Advice & Wealth Management;
|
•
|
Asset Management;
|
•
|
Annuities;
|
•
|
Protection; and
|
•
|
Corporate & Other.
|
|
We use the
Ameriprise Financial
®
brand as our enterprise brand, as well as the name of our advisor network and certain of our retail products and services. The retail products and services that use the Ameriprise Financial brand include those that we provide through our advisors (e.g., financial planning, investment advisory accounts and retail brokerage services) and products and services that we market directly to consumers or through affinity groups (e.g., personal auto and home insurance).
|
|
On March 30, 2015, we launched a new global brand - the
Columbia Threadneedle Investments
®
brand,
which represents the combined capabilities, resources and reach of Columbia Management and Threadneedle. This brand reinforces the strength of both firms in their established markets of the UK, Europe and the U.S. and helps us grow our presence in key markets including Asia Pacific, Latin America, Africa and the Middle East.
|
|
We use our
RiverSource
®
brand for our annuity and protection products issued by the RiverSource Life companies, including our life and disability income insurance products.
|
•
|
Employee Advisors.
Under this affiliation, an advisor is an employee of our company and receives a higher level of support, including leadership, training, office space and staff support. We pay compensation that is competitive with other employee advisor models, which is generally lower than that of our franchisee advisors given the higher level of support we provide our employee advisors. Employee advisors are also employed in the Ameriprise Advisor Center (“AAC”), our dedicated platform for remote-based sales and service to Ameriprise retail customers through a team model.
|
•
|
Franchisee Advisors.
Under this affiliation, an advisor is an independent contractor franchisee who affiliates with our company and has the right to use the Ameriprise brand. We pay our franchisee advisors a higher payout rate than our employee advisors as they are responsible for paying their own overhead, staff compensation and other business expenses. In addition, our franchisee advisors pay a franchise association fee and other fees in exchange for the support we offer and the right to use our brand name. The support we offer to our franchisee advisors includes generalist and specialist leadership support, technology platforms and tools, training and marketing programs.
|
Entity
|
|
Company Action Level RBC
|
|
Total
Adjusted Capital
|
|
% of Company Action Level RBC
|
|||||
|
|
(in millions, except percentages)
|
|||||||||
RiverSource Life
|
|
$
|
606
|
|
|
$
|
3,052
|
|
|
504
|
%
|
RiverSource Life of NY
|
|
38
|
|
|
323
|
|
|
848
|
|
||
IDS Property Casualty
|
|
141
|
|
|
800
|
|
|
568
|
|
||
Ameriprise Insurance Company
|
|
1
|
|
|
47
|
|
|
8,761
|
|
|
Years Ended December 31,
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
Revised
|
||||||||||
|
(in millions, except per share data)
|
||||||||||||||||||
Income Statement Data:
|
|||||||||||||||||||
Total net revenues
|
$
|
11,696
|
|
|
$
|
12,170
|
|
|
$
|
12,268
|
|
|
$
|
11,199
|
|
|
$
|
10,217
|
|
Total expenses
|
10,104
|
|
|
10,028
|
|
|
9,721
|
|
|
9,229
|
|
|
8,985
|
|
|||||
|
|||||||||||||||||||
Income from continuing operations
|
$
|
1,314
|
|
|
$
|
1,687
|
|
|
$
|
2,002
|
|
|
$
|
1,478
|
|
|
$
|
899
|
|
Loss from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(3
|
)
|
|
(2
|
)
|
|||||
Net income
|
1,314
|
|
|
1,687
|
|
|
2,000
|
|
|
1,475
|
|
|
897
|
|
|||||
Less: Net income (loss) attributable to noncontrolling interests
|
—
|
|
|
125
|
|
|
381
|
|
|
141
|
|
|
(128
|
)
|
|||||
Net income attributable to Ameriprise Financial
|
$
|
1,314
|
|
|
$
|
1,562
|
|
|
$
|
1,619
|
|
|
$
|
1,334
|
|
|
$
|
1,025
|
|
|
|||||||||||||||||||
Earnings Per Share Attributable to Ameriprise Financial, Inc. Common Shareholders:
|
|||||||||||||||||||
Basic
|
|||||||||||||||||||
Income from continuing operations
|
$
|
7.90
|
|
|
$
|
8.60
|
|
|
$
|
8.46
|
|
|
$
|
6.58
|
|
|
$
|
4.69
|
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|
(0.02
|
)
|
|
(0.01
|
)
|
|||||
Net income
|
$
|
7.90
|
|
|
$
|
8.60
|
|
|
$
|
8.45
|
|
|
$
|
6.56
|
|
|
$
|
4.68
|
|
Diluted
|
|||||||||||||||||||
Income from continuing operations
|
$
|
7.81
|
|
|
$
|
8.48
|
|
|
$
|
8.31
|
|
|
$
|
6.46
|
|
|
$
|
4.61
|
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|
(0.02
|
)
|
|
(0.01
|
)
|
|||||
Net income
|
$
|
7.81
|
|
|
$
|
8.48
|
|
|
$
|
8.30
|
|
|
$
|
6.44
|
|
|
$
|
4.60
|
|
Cash Dividends Declared Per Common Share
|
$
|
2.92
|
|
|
$
|
2.59
|
|
|
$
|
2.26
|
|
|
$
|
2.01
|
|
|
$
|
1.15
|
|
•
|
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%.
|
|
Years Ended December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(in millions)
|
||||||
Total net revenues
|
$
|
11,696
|
|
|
$
|
12,170
|
|
Less: Revenue attributable to CIEs
|
128
|
|
|
446
|
|
||
Less: Net realized investment gains
|
6
|
|
|
4
|
|
||
Less: Market impact on indexed universal life benefits
|
24
|
|
|
7
|
|
||
Less: Market impact of hedges on investments
|
3
|
|
|
(21
|
)
|
||
Operating total net revenues
|
$
|
11,535
|
|
|
$
|
11,734
|
|
|
Years Ended December 31,
|
|
Per Diluted Share
Years Ended December 31, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in millions, except per share amounts)
|
||||||||||||||
Net income attributable to Ameriprise Financial
|
$
|
1,314
|
|
|
$
|
1,562
|
|
|
$
|
7.81
|
|
|
$
|
8.48
|
|
Less: Net loss attributable to CIEs
|
(2
|
)
|
|
—
|
|
|
(0.01
|
)
|
|
—
|
|
||||
Add: Integration/restructuring charges
(1)
|
—
|
|
|
5
|
|
|
—
|
|
|
0.03
|
|
||||
Add: Market impact on variable annuity guaranteed benefits
(1)
|
216
|
|
|
214
|
|
|
1.28
|
|
|
1.16
|
|
||||
Add: Market impact on indexed universal life benefits
(1)
|
(36
|
)
|
|
1
|
|
|
(0.21
|
)
|
|
0.01
|
|
||||
Add: Market impact of hedges on investments
(1)
|
(3
|
)
|
|
21
|
|
|
(0.02
|
)
|
|
0.11
|
|
||||
Less: Net realized investment gains
(1)
|
6
|
|
|
4
|
|
|
0.03
|
|
|
0.02
|
|
||||
Tax effect of adjustments
(2)
|
(60
|
)
|
|
(83
|
)
|
|
(0.36
|
)
|
|
(0.45
|
)
|
||||
Operating earnings
|
$
|
1,427
|
|
|
$
|
1,716
|
|
|
$
|
8.48
|
|
|
$
|
9.32
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
166.3
|
|
|
181.7
|
|
|
|
|
|
|
|
||||
Diluted
|
168.2
|
|
|
184.2
|
|
|
|
|
|
|
|
|
Years Ended December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(in millions)
|
||||||
Net income attributable to Ameriprise Financial
|
$
|
1,314
|
|
|
$
|
1,562
|
|
Less: Adjustments
(1)
|
(113
|
)
|
|
(154
|
)
|
||
Operating earnings
|
$
|
1,427
|
|
|
$
|
1,716
|
|
|
|
|
|
||||
Total Ameriprise Financial, Inc. shareholders’ equity
|
$
|
6,877
|
|
|
$
|
7,782
|
|
Less: AOCI, net of tax
|
426
|
|
|
516
|
|
||
Total Ameriprise Financial, Inc. shareholders’ equity, excluding AOCI
|
6,451
|
|
|
7,266
|
|
||
Less: Equity impacts attributable to CIEs
|
27
|
|
|
216
|
|
||
Operating equity
|
$
|
6,424
|
|
|
$
|
7,050
|
|
|
|
|
|
||||
Return on equity, excluding AOCI
|
20.4
|
%
|
|
21.5
|
%
|
||
Operating return on equity, excluding AOCI
(2)
|
22.2
|
%
|
|
24.3
|
%
|
|
Years Ended December 31,
|
|
Change
|
|||||||||||
2016
|
|
2015
|
||||||||||||
(in millions)
|
|
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|||||||
Management and financial advice fees
|
$
|
5,778
|
|
|
$
|
5,950
|
|
|
$
|
(172
|
)
|
|
(3
|
)%
|
Distribution fees
|
1,795
|
|
|
1,847
|
|
|
(52
|
)
|
|
(3
|
)
|
|||
Net investment income
|
1,576
|
|
|
1,688
|
|
|
(112
|
)
|
|
(7
|
)
|
|||
Premiums
|
1,491
|
|
|
1,455
|
|
|
36
|
|
|
2
|
|
|||
Other revenues
|
1,095
|
|
|
1,260
|
|
|
(165
|
)
|
|
(13
|
)
|
|||
Total revenues
|
11,735
|
|
|
12,200
|
|
|
(465
|
)
|
|
(4
|
)
|
|||
Banking and deposit interest expense
|
39
|
|
|
30
|
|
|
9
|
|
|
30
|
|
|||
Total net revenues
|
11,696
|
|
|
12,170
|
|
|
(474
|
)
|
|
(4
|
)
|
|||
Expenses
|
|
|
|
|
|
|
|
|||||||
Distribution expenses
|
3,202
|
|
|
3,276
|
|
|
(74
|
)
|
|
(2
|
)
|
|||
Interest credited to fixed accounts
|
623
|
|
|
668
|
|
|
(45
|
)
|
|
(7
|
)
|
|||
Benefits, claims, losses and settlement expenses
|
2,646
|
|
|
2,261
|
|
|
385
|
|
|
17
|
|
|||
Amortization of deferred acquisition costs
|
415
|
|
|
354
|
|
|
61
|
|
|
17
|
|
|||
Interest and debt expense
|
241
|
|
|
387
|
|
|
(146
|
)
|
|
(38
|
)
|
|||
General and administrative expense
|
2,977
|
|
|
3,082
|
|
|
(105
|
)
|
|
(3
|
)
|
|||
Total expenses
|
10,104
|
|
|
10,028
|
|
|
76
|
|
|
1
|
|
|||
Pretax income
|
1,592
|
|
|
2,142
|
|
|
(550
|
)
|
|
(26
|
)
|
|||
Income tax provision
|
278
|
|
|
455
|
|
|
(177
|
)
|
|
(39
|
)
|
|||
Net income
|
1,314
|
|
|
1,687
|
|
|
(373
|
)
|
|
(22
|
)
|
|||
Less: Net income attributable to noncontrolling interests
|
—
|
|
|
125
|
|
|
(125
|
)
|
|
NM
|
||||
Net income attributable to Ameriprise Financial
|
$
|
1,314
|
|
|
$
|
1,562
|
|
|
$
|
(248
|
)
|
|
(16
|
)%
|
NM Not Meaningful.
|
Pretax Increase (Decrease)
|
2016
|
|
2015
|
|||||
|
(in millions)
|
|||||||
Premiums
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
Other revenues
|
64
|
|
|
8
|
|
|||
Total revenues
|
64
|
|
|
5
|
|
|||
|
|
|
|
|||||
Distribution expenses
|
(27
|
)
|
|
—
|
|
|||
Benefits, claims, losses and settlement expenses
|
229
|
|
|
(58
|
)
|
|||
Amortization of DAC
|
81
|
|
|
15
|
|
|||
Total expenses
|
283
|
|
|
(43
|
)
|
|||
Total
(1)
|
$
|
(219
|
)
|
|
$
|
48
|
|
•
|
The
year ended
December 31, 2016
included a $229 million expense from unlocking compared to a $58 million benefit in the prior year. The unlocking impact for the
year ended
December 31, 2016
primarily reflected continued low interest rates and an unfavorable impact from persistency on living benefit reserves, partially offset by a benefit from updates to withdrawal utilization and fee assumptions, as well as market-related inputs related to our living benefit valuation. The unlocking impact for the prior year 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 low interest rate environment.
|
•
|
A $39 million increase in LTC reserves in 2016, which included a $29 million out-of-period correction related to our claim utilization assumption, a $5 million out-of-period correction related to our waiver of premium claim reserve and a $5 million impact from assumption changes for our active life reserve valuation as a result of loss recognition.
|
•
|
A $28 million favorable impact in the prior year from updating future experience assumptions related to life rider benefits.
|
•
|
A $24 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 $40 million decrease in b
enefits
, claims, losses and settlement expenses
related to our auto and home business due to improved current year loss performance and
a $20 million decrease in reserves in 2016 due to
favorable prior year reserve development compared to a
$57 million increase in reserves in 2015 due to unfavorable prior year reserve development,
partially offset by an increase in catastrophe losses compared to the prior year and a $26 million increase in additional losses. Catastrophe losses were
$104
million for the
year ended
December 31, 2016
compared to $72
million for the prior year.
|
•
|
The impact of unlocking was an expense of $81 million for the year ended
December 31, 2016
compared to an expense of $15 million for the prior year.
The unlocking impact for the
year ended
December 31, 2016
primarily reflected
continued low interest rates that more than offset benefits from persistency on annuity contracts without living benefits. In connection with the loss recognition on LTC insurance products in the third quarter of 2016, we impaired $58 million of DAC due to continued low interest rates, higher morbidity and higher reinsurance expenses, slightly offset by premium increases.
|
•
|
The DAC offset to the market impact on
indexed universal life benefits (net of hedges, unearned revenue amortization and the reinsurance accrual)
was an expense of $18 million for
the
year ended
December 31, 2016
compared to an expense of $4 million for the prior year.
|
•
|
The impact on DAC from actual versus expected market performance based on our view of bond and equity performance was a benefit of $6 million for
the
year ended
December 31, 2016
compared to an expense of $15 million for the prior year reflecting favorable bond fund returns in 2016 compared to unfavorable equity market and bond fund returns in the prior year.
|
|
Years Ended December 31,
|
||||||
2016
|
|
2015
|
|||||
(in millions)
|
|||||||
Advice & Wealth Management
|
|
|
|
|
|
||
Net revenues
|
$
|
5,036
|
|
|
$
|
5,013
|
|
Expenses
|
4,125
|
|
|
4,154
|
|
||
Operating earnings
|
$
|
911
|
|
|
$
|
859
|
|
Asset Management
|
|
|
|
||||
Net revenues
|
$
|
2,964
|
|
|
$
|
3,254
|
|
Expenses
|
2,343
|
|
|
2,493
|
|
||
Operating earnings
|
$
|
621
|
|
|
$
|
761
|
|
Annuities
|
|
|
|
||||
Net revenues
|
$
|
2,463
|
|
|
$
|
2,541
|
|
Expenses
|
2,134
|
|
|
1,891
|
|
||
Operating earnings
|
$
|
329
|
|
|
$
|
650
|
|
Protection
|
|
|
|
||||
Net revenues
|
$
|
2,506
|
|
|
$
|
2,384
|
|
Expenses
|
2,330
|
|
|
2,201
|
|
||
Operating earnings
|
$
|
176
|
|
|
$
|
183
|
|
Corporate & Other
|
|
|
|
||||
Net revenues
|
$
|
(28
|
)
|
|
$
|
3
|
|
Expenses
|
244
|
|
|
202
|
|
||
Operating loss
|
$
|
(272
|
)
|
|
$
|
(199
|
)
|
Segment Pretax Operating Increase (Decrease)
|
|
Years Ended December 31,
|
||||||||||||||
2016
|
|
2015
|
||||||||||||||
Annuities
|
|
Protection
|
Annuities
|
|
Protection
|
|||||||||||
|
|
(in millions)
|
||||||||||||||
Premiums
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
Other revenues
|
|
—
|
|
|
64
|
|
|
—
|
|
|
(5
|
)
|
||||
Total revenues
|
|
—
|
|
|
64
|
|
|
—
|
|
|
(8
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Distribution expenses
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
—
|
|
||||
Benefits, claims, losses and settlement expenses
|
|
197
|
|
|
46
|
|
|
(61
|
)
|
|
6
|
|
||||
Amortization of DAC
|
|
18
|
|
|
65
|
|
|
(5
|
)
|
|
10
|
|
||||
Total expenses
|
|
215
|
|
|
84
|
|
|
(66
|
)
|
|
16
|
|
||||
Total
|
|
$
|
(215
|
)
|
|
$
|
(20
|
)
|
|
$
|
66
|
|
|
$
|
(24
|
)
|
|
2016
|
|
2015
|
||||
(in billions)
|
|||||||
Beginning balance
|
$
|
180.5
|
|
|
$
|
174.7
|
|
Net flows
|
10.2
|
|
|
11.1
|
|
||
Market appreciation (depreciation) and other
|
10.4
|
|
|
(5.3
|
)
|
||
Ending balance
|
$
|
201.1
|
|
|
$
|
180.5
|
|
|
|
|
|
||||
Advisory wrap account assets ending balance
(1)
|
$
|
198.9
|
|
|
$
|
178.9
|
|
Average advisory wrap account assets
(2)
|
$
|
187.3
|
|
|
$
|
178.5
|
|
|
Years Ended December 31,
|
|
Change
|
|||||||||||
2016
|
|
2015
|
||||||||||||
(in millions)
|
|
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|||||||
Management and financial advice fees
|
$
|
2,707
|
|
|
$
|
2,629
|
|
|
$
|
78
|
|
|
3
|
%
|
Distribution fees
|
2,109
|
|
|
2,195
|
|
|
(86
|
)
|
|
(4
|
)
|
|||
Net investment income
|
186
|
|
|
146
|
|
|
40
|
|
|
27
|
|
|||
Other revenues
|
73
|
|
|
73
|
|
|
—
|
|
|
—
|
|
|||
Total revenues
|
5,075
|
|
|
5,043
|
|
|
32
|
|
|
1
|
|
|||
Banking and deposit interest expense
|
39
|
|
|
30
|
|
|
9
|
|
|
30
|
|
|||
Total net revenues
|
5,036
|
|
|
5,013
|
|
|
23
|
|
|
—
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
||||
Distribution expenses
|
3,072
|
|
|
3,081
|
|
|
(9
|
)
|
|
—
|
|
|||
Interest and debt expense
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|||
General and administrative expense
|
1,045
|
|
|
1,065
|
|
|
(20
|
)
|
|
(2
|
)
|
|||
Total expenses
|
4,125
|
|
|
4,154
|
|
|
(29
|
)
|
|
(1
|
)
|
|||
Operating earnings
|
$
|
911
|
|
|
$
|
859
|
|
|
$
|
52
|
|
|
6
|
%
|
Columbia
Mutual Fund Rankings in top 2 Lipper Quartiles
|
2016
|
|
2015
|
||||
Domestic Equity
|
Equal weighted
|
1 year
|
56
|
%
|
|
68
|
%
|
|
|
3 year
|
75
|
%
|
|
68
|
%
|
|
|
5 year
|
71
|
%
|
|
57
|
%
|
|
Asset weighted
|
1 year
|
41
|
%
|
|
77
|
%
|
|
|
3 year
|
81
|
%
|
|
76
|
%
|
|
|
5 year
|
75
|
%
|
|
74
|
%
|
International Equity
|
Equal weighted
|
1 year
|
20
|
%
|
|
55
|
%
|
|
|
3 year
|
55
|
%
|
|
82
|
%
|
|
|
5 year
|
70
|
%
|
|
65
|
%
|
|
Asset weighted
|
1 year
|
12
|
%
|
|
33
|
%
|
|
|
3 year
|
44
|
%
|
|
46
|
%
|
|
|
5 year
|
47
|
%
|
|
41
|
%
|
Taxable Fixed Income
|
Equal weighted
|
1 year
|
72
|
%
|
|
68
|
%
|
|
|
3 year
|
76
|
%
|
|
47
|
%
|
|
|
5 year
|
76
|
%
|
|
65
|
%
|
|
Asset weighted
|
1 year
|
75
|
%
|
|
73
|
%
|
|
|
3 year
|
83
|
%
|
|
52
|
%
|
|
|
5 year
|
86
|
%
|
|
80
|
%
|
Tax Exempt Fixed Income
|
Equal weighted
|
1 year
|
74
|
%
|
|
83
|
%
|
|
|
3 year
|
89
|
%
|
|
100
|
%
|
|
|
5 year
|
100
|
%
|
|
100
|
%
|
|
Asset weighted
|
1 year
|
59
|
%
|
|
97
|
%
|
|
|
3 year
|
86
|
%
|
|
100
|
%
|
|
|
5 year
|
100
|
%
|
|
100
|
%
|
Asset Allocation Funds
|
Equal weighted
|
1 year
|
31
|
%
|
|
90
|
%
|
|
|
3 year
|
100
|
%
|
|
78
|
%
|
|
|
5 year
|
75
|
%
|
|
88
|
%
|
|
Asset weighted
|
1 year
|
15
|
%
|
|
100
|
%
|
|
|
3 year
|
100
|
%
|
|
79
|
%
|
|
|
5 year
|
82
|
%
|
|
98
|
%
|
Number of funds with 4 or 5 Morningstar star ratings
|
|
Overall
|
51
|
|
|
55
|
|
|
|
3 year
|
45
|
|
|
57
|
|
|
|
5 year
|
44
|
|
|
45
|
|
Percent of funds with 4 or 5 Morningstar star ratings
|
|
Overall
|
54
|
%
|
|
54
|
%
|
|
|
3 year
|
48
|
%
|
|
56
|
%
|
|
|
5 year
|
47
|
%
|
|
47
|
%
|
Percent of assets with 4 or 5 Morningstar star ratings
|
|
Overall
|
64
|
%
|
|
66
|
%
|
|
|
3 year
|
64
|
%
|
|
66
|
%
|
|
|
5 year
|
53
|
%
|
|
57
|
%
|
Threadneedle
Retail Fund Rankings in Top 2 Morningstar Quartiles or Above Index Benchmark
|
2016
|
|
2015
|
||||
Equity
|
Equal weighted
|
1 year
|
26
|
%
|
|
65
|
%
|
|
|
3 year
|
58
|
%
|
|
74
|
%
|
|
|
5 year
|
72
|
%
|
|
76
|
%
|
|
Asset weighted
|
1 year
|
40
|
%
|
|
68
|
%
|
|
|
3 year
|
67
|
%
|
|
71
|
%
|
|
|
5 year
|
67
|
%
|
|
84
|
%
|
Fixed Income
|
Equal weighted
|
1 year
|
70
|
%
|
|
56
|
%
|
|
|
3 year
|
59
|
%
|
|
45
|
%
|
|
|
5 year
|
65
|
%
|
|
67
|
%
|
|
Asset weighted
|
1 year
|
68
|
%
|
|
81
|
%
|
|
|
3 year
|
74
|
%
|
|
72
|
%
|
|
|
5 year
|
69
|
%
|
|
61
|
%
|
Allocation (Managed) Funds
|
Equal weighted
|
1 year
|
67
|
%
|
|
75
|
%
|
|
|
3 year
|
100
|
%
|
|
86
|
%
|
|
|
5 year
|
83
|
%
|
|
100
|
%
|
|
Asset weighted
|
1 year
|
70
|
%
|
|
86
|
%
|
|
|
3 year
|
100
|
%
|
|
92
|
%
|
|
|
5 year
|
92
|
%
|
|
100
|
%
|
|
Years Ended December 31,
|
||||||
2016
|
|
2015
|
|||||
(in billions)
|
|||||||
Global Retail Funds
|
|
|
|
|
|
||
Beginning assets
|
$
|
263.9
|
|
|
$
|
281.5
|
|
Inflows
|
52.2
|
|
|
54.2
|
|
||
Acquisition related inflows
(1)
|
1.0
|
|
|
—
|
|
||
Outflows
|
(63.5
|
)
|
|
(67.4
|
)
|
||
Net VP/VIT fund flows
|
(2.0
|
)
|
|
(0.7
|
)
|
||
Net new flows
|
(12.3
|
)
|
|
(13.9
|
)
|
||
Reinvested dividends
|
8.1
|
|
|
13.4
|
|
||
Net flows
|
(4.2
|
)
|
|
(0.5
|
)
|
||
Distributions
|
(9.9
|
)
|
|
(16.4
|
)
|
||
Market appreciation and other
(2)(4)
|
15.2
|
|
|
1.3
|
|
||
Foreign currency translation
(3)(4)
|
(5.1
|
)
|
|
(2.0
|
)
|
||
Total ending assets
|
259.9
|
|
|
263.9
|
|
||
Global Institutional
|
|
|
|
|
|
||
Beginning assets
|
208.0
|
|
|
224.1
|
|
||
Inflows
|
24.1
|
|
|
27.3
|
|
||
Outflows
|
(38.5
|
)
|
|
(42.6
|
)
|
||
Net flows
|
(14.4
|
)
|
|
(15.3
|
)
|
||
Market appreciation and other
(4)(5)(6)
|
13.5
|
|
|
3.7
|
|
||
Foreign currency translation
(3)(4)
|
(12.6
|
)
|
|
(4.5
|
)
|
||
Total ending assets
|
194.5
|
|
|
208.0
|
|
||
Total managed assets
|
$
|
454.4
|
|
|
$
|
471.9
|
|
Total net flows
|
$
|
(18.6
|
)
|
|
$
|
(15.8
|
)
|
Former Parent Company Related
(7)
|
|
|
|
||||
Retail net new flows
|
$
|
(1.3
|
)
|
|
$
|
(2.3
|
)
|
Institutional net new flows
|
(8.6
|
)
|
|
(12.5
|
)
|
||
Total net new flows
|
$
|
(9.9
|
)
|
|
$
|
(14.8
|
)
|
|
Years Ended December 31,
|
|
Change
|
|||||||||||
2016
|
|
2015
|
||||||||||||
(in millions)
|
|
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Management and financial advice fees
|
$
|
2,452
|
|
|
$
|
2,723
|
|
|
$
|
(271
|
)
|
|
(10
|
)%
|
Distribution fees
|
487
|
|
|
499
|
|
|
(12
|
)
|
|
(2
|
)
|
|||
Net investment income
|
14
|
|
|
23
|
|
|
(9
|
)
|
|
(39
|
)
|
|||
Other revenues
|
11
|
|
|
9
|
|
|
2
|
|
|
22
|
|
|||
Total revenues
|
2,964
|
|
|
3,254
|
|
|
(290
|
)
|
|
(9
|
)
|
|||
Banking and deposit interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
2,964
|
|
|
3,254
|
|
|
(290
|
)
|
|
(9
|
)
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
||||
Distribution expenses
|
1,019
|
|
|
1,091
|
|
|
(72
|
)
|
|
(7
|
)
|
|||
Amortization of deferred acquisition costs
|
18
|
|
|
17
|
|
|
1
|
|
|
6
|
|
|||
Interest and debt expense
|
21
|
|
|
25
|
|
|
(4
|
)
|
|
(16
|
)
|
|||
General and administrative expense
|
1,285
|
|
|
1,360
|
|
|
(75
|
)
|
|
(6
|
)
|
|||
Total expenses
|
2,343
|
|
|
2,493
|
|
|
(150
|
)
|
|
(6
|
)
|
|||
Operating earnings
|
$
|
621
|
|
|
$
|
761
|
|
|
$
|
(140
|
)
|
|
(18
|
)%
|
|
Years Ended December 31,
|
|
Change
|
|||||||||||
2016
|
|
2015
|
||||||||||||
(in millions)
|
|
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Management and financial advice fees
|
$
|
732
|
|
|
$
|
755
|
|
|
$
|
(23
|
)
|
|
(3
|
)%
|
Distribution fees
|
349
|
|
|
364
|
|
|
(15
|
)
|
|
(4
|
)
|
|||
Net investment income
|
760
|
|
|
848
|
|
|
(88
|
)
|
|
(10
|
)
|
|||
Premiums
|
116
|
|
|
107
|
|
|
9
|
|
|
8
|
|
|||
Other revenues
|
506
|
|
|
467
|
|
|
39
|
|
|
8
|
|
|||
Total revenues
|
2,463
|
|
|
2,541
|
|
|
(78
|
)
|
|
(3
|
)
|
|||
Banking and deposit interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
2,463
|
|
|
2,541
|
|
|
(78
|
)
|
|
(3
|
)
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
||||
Distribution expenses
|
423
|
|
|
446
|
|
|
(23
|
)
|
|
(5
|
)
|
|||
Interest credited to fixed accounts
|
478
|
|
|
500
|
|
|
(22
|
)
|
|
(4
|
)
|
|||
Benefits, claims, losses and settlement expenses
|
780
|
|
|
482
|
|
|
298
|
|
|
62
|
|
|||
Amortization of deferred acquisition costs
|
209
|
|
|
205
|
|
|
4
|
|
|
2
|
|
|||
Interest and debt expense
|
33
|
|
|
38
|
|
|
(5
|
)
|
|
(13
|
)
|
|||
General and administrative expense
|
211
|
|
|
220
|
|
|
(9
|
)
|
|
(4
|
)
|
|||
Total expenses
|
2,134
|
|
|
1,891
|
|
|
243
|
|
|
13
|
|
|||
Operating earnings
|
$
|
329
|
|
|
$
|
650
|
|
|
$
|
(321
|
)
|
|
(49
|
)%
|
•
|
Benefits, claims, losses and settlement expenses for the
year ended
December 31, 2016
included a $197 million expense from unlocking primarily reflecting continued low interest rates and an unfavorable impact from persistency on living benefit reserves, partially offset by a benefit from updates to withdrawal utilization and fee assumptions, as well as market-related inputs related to our living benefit valuation. Benefits, claims, losses and settlement expenses for the prior year 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 low interest rate environment.
|
•
|
A $24 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 negative impact in the fourth quarter of 2016 from changes in assumptions in the third quarter unlocking process that result in ongoing increases to living benefit reserves.
|
|
Years Ended December 31,
|
|
Change
|
|||||||||||
2016
|
|
2015
|
||||||||||||
(in millions)
|
|
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Management and financial advice fees
|
$
|
51
|
|
|
$
|
55
|
|
|
$
|
(4
|
)
|
|
(7
|
)%
|
Distribution fees
|
98
|
|
|
97
|
|
|
1
|
|
|
1
|
|
|||
Net investment income
|
485
|
|
|
468
|
|
|
17
|
|
|
4
|
|
|||
Premiums
|
1,396
|
|
|
1,363
|
|
|
33
|
|
|
2
|
|
|||
Other revenues
|
476
|
|
|
401
|
|
|
75
|
|
|
19
|
|
|||
Total revenues
|
2,506
|
|
|
2,384
|
|
|
122
|
|
|
5
|
|
|||
Banking and deposit interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
2,506
|
|
|
2,384
|
|
|
122
|
|
|
5
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
||||
Distribution expenses
|
28
|
|
|
59
|
|
|
(31
|
)
|
|
(53
|
)
|
|||
Interest credited to fixed accounts
|
175
|
|
|
164
|
|
|
11
|
|
|
7
|
|
|||
Benefits, claims, losses and settlement expenses
|
1,619
|
|
|
1,538
|
|
|
81
|
|
|
5
|
|
|||
Amortization of deferred acquisition costs
|
201
|
|
|
155
|
|
|
46
|
|
|
30
|
|
|||
Interest and debt expense
|
34
|
|
|
32
|
|
|
2
|
|
|
6
|
|
|||
General and administrative expense
|
273
|
|
|
253
|
|
|
20
|
|
|
8
|
|
|||
Total expenses
|
2,330
|
|
|
2,201
|
|
|
129
|
|
|
6
|
|
|||
Operating earnings
|
$
|
176
|
|
|
$
|
183
|
|
|
$
|
(7
|
)
|
|
(4
|
)%
|
•
|
Benefits, claims, losses and settlement expenses
for the
year ended
December 31, 2016
included a $46 million expense from unlocking primarily reflecting continued low interest rates and
unfavorable mortality experience
.
Benefits, claims, losses and settlement expenses
for the prior year included a $6 million expense from unlocking.
|
•
|
A $39 million increase in LTC reserves in 2016, which included a $29 million out-of-period correction related to our claim utilization assumption, a $5 million out-of-period correction related to our waiver of premium claim reserve and a $5 million impact from assumption changes for our active life reserve valuation as a result of loss recognition.
|
•
|
A $28 million favorable impact in the prior year from updating future experience assumptions related to life rider benefits.
|
•
|
A $7 million increase in life and health insurance claims.
|
•
|
A $40 million decrease in b
enefits
, claims, losses and settlement expenses
related to our auto and home business due to improved current year loss performance and
a $20 million decrease in reserves in 2016 due to
favorable prior year reserve development compared to a
$57 million increase in reserves in 2015 due to unfavorable prior year reserve development,
partially offset by an increase in catastrophe losses compared to the prior year and a $26 million increase in additional losses. Catastrophe losses were
$104
million for the
year ended
December 31, 2016
compared to $72
million for the prior year.
|
|
Years Ended December 31,
|
|
Change
|
|||||||||||
|
2016
|
|
2015
|
|||||||||||
|
(in millions)
|
|
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Net investment loss
|
$
|
(32
|
)
|
|
$
|
(10
|
)
|
|
$
|
(22
|
)
|
|
NM
|
|
Other revenues
|
5
|
|
|
13
|
|
|
(8
|
)
|
|
(62
|
)%
|
|||
Total revenues
|
(27
|
)
|
|
3
|
|
|
(30
|
)
|
|
NM
|
|
|||
Banking and deposit interest expense
|
1
|
|
|
—
|
|
|
1
|
|
|
NM
|
|
|||
Total net revenues
|
(28
|
)
|
|
3
|
|
|
(31
|
)
|
|
NM
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|||||
Interest and debt expense
|
18
|
|
|
22
|
|
|
(4
|
)
|
|
(18
|
)
|
|||
General and administrative expense
|
226
|
|
|
180
|
|
|
46
|
|
|
26
|
|
|||
Total expenses
|
244
|
|
|
202
|
|
|
42
|
|
|
21
|
|
|||
Operating loss
|
$
|
(272
|
)
|
|
$
|
(199
|
)
|
|
$
|
(73
|
)
|
|
(37
|
)%
|
NM Not Meaningful.
|
|
Years Ended December 31,
|
|
Change
|
|||||||||||
2015
|
|
2014
|
||||||||||||
(in millions)
|
|
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|||||||
Management and financial advice fees
|
$
|
5,950
|
|
|
$
|
5,810
|
|
|
$
|
140
|
|
|
2
|
%
|
Distribution fees
|
1,847
|
|
|
1,894
|
|
|
(47
|
)
|
|
(2
|
)
|
|||
Net investment income
|
1,688
|
|
|
1,741
|
|
|
(53
|
)
|
|
(3
|
)
|
|||
Premiums
|
1,455
|
|
|
1,385
|
|
|
70
|
|
|
5
|
|
|||
Other revenues
|
1,260
|
|
|
1,466
|
|
|
(206
|
)
|
|
(14
|
)
|
|||
Total revenues
|
12,200
|
|
|
12,296
|
|
|
(96
|
)
|
|
(1
|
)
|
|||
Banking and deposit interest expense
|
30
|
|
|
28
|
|
|
2
|
|
|
7
|
|
|||
Total net revenues
|
12,170
|
|
|
12,268
|
|
|
(98
|
)
|
|
(1
|
)
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
||||
Distribution expenses
|
3,276
|
|
|
3,236
|
|
|
40
|
|
|
1
|
|
|||
Interest credited to fixed accounts
|
668
|
|
|
713
|
|
|
(45
|
)
|
|
(6
|
)
|
|||
Benefits, claims, losses and settlement expenses
|
2,261
|
|
|
1,982
|
|
|
279
|
|
|
14
|
|
|||
Amortization of deferred acquisition costs
|
354
|
|
|
367
|
|
|
(13
|
)
|
|
(4
|
)
|
|||
Interest and debt expense
|
387
|
|
|
328
|
|
|
59
|
|
|
18
|
|
|||
General and administrative expense
|
3,082
|
|
|
3,095
|
|
|
(13
|
)
|
|
—
|
|
|||
Total expenses
|
10,028
|
|
|
9,721
|
|
|
307
|
|
|
3
|
|
|||
Income from continuing operations before income tax provision
|
2,142
|
|
|
2,547
|
|
|
(405
|
)
|
|
(16
|
)
|
|||
Income tax provision
|
455
|
|
|
545
|
|
|
(90
|
)
|
|
(17
|
)
|
|||
Income from continuing operations
|
1,687
|
|
|
2,002
|
|
|
(315
|
)
|
|
(16
|
)
|
|||
Loss from discontinued operations, net of tax
|
—
|
|
|
(2
|
)
|
|
2
|
|
|
NM
|
|
|||
Net income
|
1,687
|
|
|
2,000
|
|
|
(313
|
)
|
|
(16
|
)
|
|||
Less: Net income attributable to noncontrolling interests
|
125
|
|
|
381
|
|
|
(256
|
)
|
|
(67
|
)
|
|||
Net income attributable to Ameriprise Financial
|
$
|
1,562
|
|
|
$
|
1,619
|
|
|
$
|
(57
|
)
|
|
(4
|
)%
|
NM Not Meaningful.
|
•
|
The year ended December 31, 2015 included a $58 million benefit from unlocking compared to a $6 million expense in the prior year. The unlocking impact for the year ended December 31, 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 low interest rate environment. The unlocking impact for the prior year reflected lower than previously assumed interest rates, partially offset by a benefit from updating our variable annuity living benefit withdrawal utilization assumption.
|
•
|
A $106 million increase related to our auto and home business due to an increase in the provision for estimated losses reflecting the impact of growth in exposures due to a 3% increase in policies in force, higher 2015 accident year loss ratio assumptions and prior year development. In 2015, we increased our claims reserves $57 million primarily related to the 2014 and prior accident years auto liability coverages. This increase was driven by elevated frequency and severity experience for auto injury claims, as well as a lower than expected level of impact in improving the outcome of 2014 and prior accident year existing claims. Auto and home losses for the prior year included a $30 million increase to prior accident year loss reserves resulting from adverse development in the 2013 and prior accident years auto liability coverage and a $60 million increase to loss reserves for estimated losses including incurred but not reported (“IBNR”) claims resulting from further adverse loss development observed primarily in the 2014 auto book of business. Catastrophe losses were $72 million for the year ended December 31, 2015 compared to $66 million for the prior year.
|
•
|
A $17 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 due to a $50 million benefit for the year ended December 31, 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 year ended December 31, 2015.
|
•
|
A $20 million increase in life insurance claims compared to the prior year primarily due to larger claims.
|
•
|
A $19 million increase in LTC claims compared to the prior year primarily due to an increase in the number of open claims and an update in claim reserve assumptions partially offset by a higher interest rate used for LTC claims and the release of additional LTC reserves.
|
•
|
A $28 million favorable impact in 2015 from updating future experience assumptions relating to life rider benefits.
|
•
|
A $78 million increase in expense compared to the prior year from the unhedged nonperformance credit spread risk adjustment on variable annuity guaranteed benefits. As the embedded derivative liability on which the nonperformance credit spread is applied increases (decreases), the impact of the nonperformance credit spread is favorable (unfavorable) to expense. The favorable impact of the nonperformance credit spread was $68 million for the year ended December 31, 2015 compared to a favorable impact of $146 million for the prior year.
|
•
|
A $60 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 a favorable $785 million change in the market impact on variable annuity guaranteed living benefits reserves, an unfavorable $843 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits and an unfavorable $2 million DSIC offset. The main market drivers contributing to these changes are summarized below:
|
•
|
Interest rate impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in lower expense in 2015 compared to 2014.
|
•
|
Equity market and volatility impacts on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in an expense in 2015 compared to a benefit in 2014.
|
•
|
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.
|
|
Years Ended December 31,
|
||||||
2015
|
|
2014
|
|||||
(in millions)
|
|||||||
Advice & Wealth Management
|
|
|
|
|
|
||
Net revenues
|
$
|
5,013
|
|
|
$
|
4,806
|
|
Expenses
|
4,154
|
|
|
4,014
|
|
||
Operating earnings
|
$
|
859
|
|
|
$
|
792
|
|
Asset Management
|
|
|
|
||||
Net revenues
|
$
|
3,254
|
|
|
$
|
3,320
|
|
Expenses
|
2,493
|
|
|
2,532
|
|
||
Operating earnings
|
$
|
761
|
|
|
$
|
788
|
|
Annuities
|
|
|
|
||||
Net revenues
|
$
|
2,541
|
|
|
$
|
2,591
|
|
Expenses
|
1,891
|
|
|
1,958
|
|
||
Operating earnings
|
$
|
650
|
|
|
$
|
633
|
|
Protection
|
|
|
|
||||
Net revenues
|
$
|
2,384
|
|
|
$
|
2,287
|
|
Expenses
|
2,201
|
|
|
2,041
|
|
||
Operating earnings
|
$
|
183
|
|
|
$
|
246
|
|
Corporate & Other
|
|
|
|
||||
Net revenues
|
$
|
3
|
|
|
$
|
4
|
|
Expenses
|
202
|
|
|
234
|
|
||
Operating loss
|
$
|
(199
|
)
|
|
$
|
(230
|
)
|
Segment Pretax Operating Increase (Decrease)
|
|
Years Ended December 31,
|
||||||||||||||
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
|
$
|
174.7
|
|
|
$
|
153.5
|
|
Net flows
(1)
|
11.1
|
|
|
14.2
|
|
||
Market appreciation and other
(1)
|
(5.3
|
)
|
|
7.0
|
|
||
Ending balance
|
$
|
180.5
|
|
|
$
|
174.7
|
|
|
|
|
|
||||
Advisory wrap account assets ending balance
(2)
|
$
|
178.9
|
|
|
$
|
173.5
|
|
Average advisory wrap account assets
(3)
|
$
|
178.5
|
|
|
$
|
163.9
|
|
|
Years Ended December 31,
|
|
Change
|
|||||||||||
2015
|
|
2014
|
||||||||||||
(in millions)
|
|
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|||||||
Management and financial advice fees
|
$
|
2,629
|
|
|
$
|
2,413
|
|
|
$
|
216
|
|
|
9
|
%
|
Distribution fees
|
2,195
|
|
|
2,213
|
|
|
(18
|
)
|
|
(1
|
)
|
|||
Net investment income
|
146
|
|
|
136
|
|
|
10
|
|
|
7
|
|
|||
Other revenues
|
73
|
|
|
72
|
|
|
1
|
|
|
1
|
|
|||
Total revenues
|
5,043
|
|
|
4,834
|
|
|
209
|
|
|
4
|
|
|||
Banking and deposit interest expense
|
30
|
|
|
28
|
|
|
2
|
|
|
7
|
|
|||
Total net revenues
|
5,013
|
|
|
4,806
|
|
|
207
|
|
|
4
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|||
Distribution expenses
|
3,081
|
|
|
2,943
|
|
|
138
|
|
|
5
|
|
|||
Interest and debt expense
|
8
|
|
|
6
|
|
|
2
|
|
|
33
|
|
|||
General and administrative expense
|
1,065
|
|
|
1,065
|
|
|
—
|
|
|
—
|
|
|||
Total expenses
|
4,154
|
|
|
4,014
|
|
|
140
|
|
|
3
|
|
|||
Operating earnings
|
$
|
859
|
|
|
$
|
792
|
|
|
$
|
67
|
|
|
8
|
%
|
|
December 31,
|
|
Change
|
|
Average
(1)
|
|
Change
|
||||||||||||||||||||||
December 31,
|
|||||||||||||||||||||||||||||
2015
|
|
2014
|
2015
|
|
2014
|
||||||||||||||||||||||||
|
(in billions)
|
||||||||||||||||||||||||||||
Equity
|
$
|
255.5
|
|
|
$
|
278.1
|
|
|
$
|
(22.6
|
)
|
|
(8
|
)%
|
|
$
|
271.5
|
|
|
$
|
279.4
|
|
|
$
|
(7.9
|
)
|
|
(3
|
)%
|
Fixed income
|
176.6
|
|
|
193.4
|
|
|
(16.8
|
)
|
|
(9
|
)
|
|
188.1
|
|
|
195.9
|
|
|
(7.8
|
)
|
|
(4
|
)
|
||||||
Money market
|
7.5
|
|
|
6.7
|
|
|
0.8
|
|
|
12
|
|
|
6.8
|
|
|
6.6
|
|
|
0.2
|
|
|
3
|
|
||||||
Alternative
|
8.2
|
|
|
7.4
|
|
|
0.8
|
|
|
11
|
|
|
7.9
|
|
|
7.0
|
|
|
0.9
|
|
|
13
|
|
||||||
Hybrid and other
|
24.1
|
|
|
20.0
|
|
|
4.1
|
|
|
21
|
|
|
22.2
|
|
|
18.4
|
|
|
3.8
|
|
|
21
|
|
||||||
Total managed assets
|
$
|
471.9
|
|
|
$
|
505.6
|
|
|
$
|
(33.7
|
)
|
|
(7
|
)%
|
|
$
|
496.5
|
|
|
$
|
507.3
|
|
|
$
|
(10.8
|
)
|
|
(2
|
)%
|
(1)
Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period.
|
|
Years Ended December 31,
|
||||||
2015
|
|
2014
|
|||||
(in billions)
|
|||||||
Global Retail Funds
|
|
|
|
|
|
||
Beginning assets
|
$
|
281.5
|
|
|
$
|
287.2
|
|
Inflows
|
54.2
|
|
|
58.8
|
|
||
Outflows
|
(67.4
|
)
|
|
(72.7
|
)
|
||
Net VP/VIT fund flows
|
(0.7
|
)
|
|
(1.0
|
)
|
||
Net new flows
|
(13.9
|
)
|
|
(14.9
|
)
|
||
Reinvested dividends
|
13.4
|
|
|
13.6
|
|
||
Net flows
|
(0.5
|
)
|
|
(1.3
|
)
|
||
Distributions
|
(16.4
|
)
|
|
(16.6
|
)
|
||
Market appreciation and other
(1)(3)
|
1.3
|
|
|
15.1
|
|
||
Foreign currency translation
(2)(3)
|
(2.0
|
)
|
|
(2.9
|
)
|
||
Total ending assets
|
263.9
|
|
|
281.5
|
|
||
Global Institutional
|
|
|
|
|
|
||
Beginning assets
|
224.1
|
|
|
213.6
|
|
||
Inflows
|
27.3
|
|
|
34.8
|
|
||
Outflows
|
(42.6
|
)
|
|
(31.4
|
)
|
||
Net flows
|
(15.3
|
)
|
|
3.4
|
|
||
Market appreciation and other
(3)(4)
|
3.7
|
|
|
13.7
|
|
||
Foreign currency translation
(2)(3)
|
(4.5
|
)
|
|
(6.6
|
)
|
||
Total ending assets
|
208.0
|
|
|
224.1
|
|
||
Total managed assets
|
$
|
471.9
|
|
|
$
|
505.6
|
|
Total net flows
|
$
|
(15.8
|
)
|
|
$
|
2.1
|
|
Former Parent Company Related
(5)
|
|
|
|
||||
Retail net new flows
|
$
|
(2.3
|
)
|
|
$
|
(1.5
|
)
|
Institutional net new flows
|
(12.5
|
)
|
|
(5.9
|
)
|
||
Total net new flows
|
$
|
(14.8
|
)
|
|
$
|
(7.4
|
)
|
|
Years Ended December 31,
|
|
Change
|
|||||||||||
2015
|
|
2014
|
||||||||||||
(in millions)
|
|
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Management and financial advice fees
|
$
|
2,723
|
|
|
$
|
2,791
|
|
|
$
|
(68
|
)
|
|
(2
|
)%
|
Distribution fees
|
499
|
|
|
493
|
|
|
6
|
|
|
1
|
|
|||
Net investment income
|
23
|
|
|
30
|
|
|
(7
|
)
|
|
(23
|
)
|
|||
Other revenues
|
9
|
|
|
6
|
|
|
3
|
|
|
50
|
|
|||
Total revenues
|
3,254
|
|
|
3,320
|
|
|
(66
|
)
|
|
(2
|
)
|
|||
Banking and deposit interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
3,254
|
|
|
3,320
|
|
|
(66
|
)
|
|
(2
|
)
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|||
Distribution expenses
|
1,091
|
|
|
1,148
|
|
|
(57
|
)
|
|
(5
|
)
|
|||
Amortization of deferred acquisition costs
|
17
|
|
|
15
|
|
|
2
|
|
|
13
|
|
|||
Interest and debt expense
|
25
|
|
|
26
|
|
|
(1
|
)
|
|
(4
|
)
|
|||
General and administrative expense
|
1,360
|
|
|
1,343
|
|
|
17
|
|
|
1
|
|
|||
Total expenses
|
2,493
|
|
|
2,532
|
|
|
(39
|
)
|
|
(2
|
)
|
|||
Operating earnings
|
$
|
761
|
|
|
$
|
788
|
|
|
$
|
(27
|
)
|
|
(3
|
)%
|
NM Not Meaningful.
|
|
Years Ended December 31,
|
|
Change
|
|||||||||||
2015
|
|
2014
|
||||||||||||
(in millions)
|
|
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Management and financial advice fees
|
$
|
755
|
|
|
$
|
756
|
|
|
$
|
(1
|
)
|
|
—
|
%
|
Distribution fees
|
364
|
|
|
360
|
|
|
4
|
|
|
1
|
|
|||
Net investment income
|
848
|
|
|
941
|
|
|
(93
|
)
|
|
(10
|
)
|
|||
Premiums
|
107
|
|
|
109
|
|
|
(2
|
)
|
|
(2
|
)
|
|||
Other revenues
|
467
|
|
|
425
|
|
|
42
|
|
|
10
|
|
|||
Total revenues
|
2,541
|
|
|
2,591
|
|
|
(50
|
)
|
|
(2
|
)
|
|||
Banking and deposit interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
2,541
|
|
|
2,591
|
|
|
(50
|
)
|
|
(2
|
)
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|||
Distribution expenses
|
446
|
|
|
439
|
|
|
7
|
|
|
2
|
|
|||
Interest credited to fixed accounts
|
500
|
|
|
556
|
|
|
(56
|
)
|
|
(10
|
)
|
|||
Benefits, claims, losses and settlement expenses
|
482
|
|
|
463
|
|
|
19
|
|
|
4
|
|
|||
Amortization of deferred acquisition costs
|
205
|
|
|
235
|
|
|
(30
|
)
|
|
(13
|
)
|
|||
Interest and debt expense
|
38
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|||
General and administrative expense
|
220
|
|
|
227
|
|
|
(7
|
)
|
|
(3
|
)
|
|||
Total expenses
|
1,891
|
|
|
1,958
|
|
|
(67
|
)
|
|
(3
|
)
|
|||
Operating earnings
|
$
|
650
|
|
|
$
|
633
|
|
|
$
|
17
|
|
|
3
|
%
|
NM Not Meaningful.
|
•
|
The year ended
December 31, 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. The prior year included a $5 million expense from unlocking primarily reflecting lower than previously 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 due to a $52 million benefit for the year ended December 31, 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 year ended
December 31, 2015
.
|
•
|
A $17 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 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 $4 million for the year ended
December 31, 2015
reflecting unfavorable equity market returns compared to a benefit of $5 million for the prior year reflecting favorable equity market returns and bond fund returns.
|
|
Years Ended December 31,
|
|
Change
|
|||||||||||
2015
|
|
2014
|
||||||||||||
(in millions)
|
|
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Management and financial advice fees
|
$
|
55
|
|
|
$
|
59
|
|
|
$
|
(4
|
)
|
|
(7
|
)%
|
Distribution fees
|
97
|
|
|
92
|
|
|
5
|
|
|
5
|
|
|||
Net investment income
|
468
|
|
|
447
|
|
|
21
|
|
|
5
|
|
|||
Premiums
|
1,363
|
|
|
1,292
|
|
|
71
|
|
|
5
|
|
|||
Other revenues
|
401
|
|
|
397
|
|
|
4
|
|
|
1
|
|
|||
Total revenues
|
2,384
|
|
|
2,287
|
|
|
97
|
|
|
4
|
|
|||
Banking and deposit interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
2,384
|
|
|
2,287
|
|
|
97
|
|
|
4
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|||
Distribution expenses
|
59
|
|
|
61
|
|
|
(2
|
)
|
|
(3
|
)
|
|||
Interest credited to fixed accounts
|
164
|
|
|
153
|
|
|
11
|
|
|
7
|
|
|||
Benefits, claims, losses and settlement expenses
|
1,538
|
|
|
1,416
|
|
|
122
|
|
|
9
|
|
|||
Amortization of deferred acquisition costs
|
155
|
|
|
135
|
|
|
20
|
|
|
15
|
|
|||
Interest and debt expense
|
32
|
|
|
28
|
|
|
4
|
|
|
14
|
|
|||
General and administrative expense
|
253
|
|
|
248
|
|
|
5
|
|
|
2
|
|
|||
Total expenses
|
2,201
|
|
|
2,041
|
|
|
160
|
|
|
8
|
|
|||
Operating earnings
|
$
|
183
|
|
|
$
|
246
|
|
|
$
|
(63
|
)
|
|
(26
|
)%
|
•
|
A $106 million increase related to our auto and home business due to an increase in the provision for estimated losses reflecting the impact of growth in exposures due to a 3% increase in policies in force, higher 2015 accident year loss ratio assumptions and prior year development. In 2015, we increased our claims reserves $57 million primarily related to the 2014 and prior accident years auto liability coverages. This increase was driven by elevated frequency and severity experience for auto injury claims, as well as a lower than expected level of impact in improving the outcome of 2014 and prior accident year existing claims. Auto and home losses for the prior year included a $30 million increase to prior accident year loss reserves resulting from adverse development in the 2013 and prior accident years auto liability coverage and a $60 million increase to loss reserves for estimated losses including IBNR claims resulting from further adverse loss development observed primarily in the 2014 auto book of business. Catastrophe losses were $72 million for the year ended December 31, 2015 compared to $66 million for the prior year.
|
•
|
A $20 million increase in life insurance claims compared to the prior year primarily due to larger claims.
|
•
|
A $19 million increase in LTC claims compared to the prior year primarily due to an increase in the number of open claims and an update in claim reserve assumptions partially offset by a higher interest rate used for LTC claims and the release of additional LTC reserves.
|
|
Years Ended December 31,
|
|
Change
|
|||||||||||
2015
|
|
2014
|
||||||||||||
(in millions)
|
|
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|||
Distribution fees
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
(1
|
)
|
|
NM
|
|
Net investment income (loss)
|
(10
|
)
|
|
(6
|
)
|
|
(4
|
)
|
|
(67
|
)%
|
|||
Other revenues
|
13
|
|
|
9
|
|
|
4
|
|
|
44
|
|
|||
Total revenues
|
3
|
|
|
4
|
|
|
(1
|
)
|
|
(25
|
)
|
|||
Banking and deposit interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
3
|
|
|
4
|
|
|
(1
|
)
|
|
(25
|
)
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|
||||
Distribution expenses
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
NM
|
|
|||
Interest and debt expense
|
22
|
|
|
21
|
|
|
1
|
|
|
5
|
|
|||
General and administrative expense
|
180
|
|
|
212
|
|
|
(32
|
)
|
|
(15
|
)
|
|||
Total expenses
|
202
|
|
|
234
|
|
|
(32
|
)
|
|
(14
|
)
|
|||
Operating loss
|
$
|
(199
|
)
|
|
$
|
(230
|
)
|
|
$
|
31
|
|
|
13
|
%
|
NM Not Meaningful.
|
|
Actual Capital
|
|
Regulatory
Capital Requirements
|
||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||
|
2016
|
|
2015
|
2016
|
|
2015
|
|||||||||
|
(in millions)
|
||||||||||||||
RiverSource Life
(1)(2)
|
$
|
3,052
|
|
|
$
|
3,800
|
|
|
$
|
606
|
|
|
$
|
589
|
|
RiverSource Life of NY
(1)(2)
|
323
|
|
|
333
|
|
|
38
|
|
|
44
|
|
||||
IDS Property Casualty
(1)(3)
|
800
|
|
|
684
|
|
|
213
|
|
|
214
|
|
||||
Ameriprise Insurance Company
(1)(3)
|
47
|
|
|
46
|
|
|
2
|
|
|
2
|
|
||||
ACC
(4)(5)
|
335
|
|
|
274
|
|
|
317
|
|
|
258
|
|
||||
Threadneedle Asset Management Holdings Sàrl
(6)
|
360
|
|
|
285
|
|
|
149
|
|
|
165
|
|
||||
Ameriprise National Trust Bank
(7)
|
22
|
|
|
36
|
|
|
10
|
|
|
10
|
|
||||
AFSI
(3)(4)
|
77
|
|
|
93
|
|
|
#
|
|
|
#
|
|
||||
Ameriprise Captive Insurance Company
(3)
|
51
|
|
|
54
|
|
|
9
|
|
|
11
|
|
||||
Ameriprise Trust Company
(3)
|
29
|
|
|
27
|
|
|
24
|
|
|
22
|
|
||||
AEIS
(3)(4)
|
107
|
|
|
110
|
|
|
19
|
|
|
52
|
|
||||
RiverSource Distributors, Inc.
(3)(4)
|
11
|
|
|
15
|
|
|
#
|
|
|
#
|
|
||||
Columbia Management Investment Distributors, Inc.
(3)(4)
|
14
|
|
|
17
|
|
|
#
|
|
|
#
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
(in millions)
|
||||||||||
RiverSource Life
(1)
|
$
|
1,033
|
|
|
$
|
1,412
|
|
|
$
|
811
|
|
ACC
(2)
|
17
|
|
|
26
|
|
|
26
|
|
|||
Columbia Management Investment Advisers, LLC
|
296
|
|
|
503
|
|
|
553
|
|
|||
Columbia Management Investment Services Corporation
|
18
|
|
|
14
|
|
|
7
|
|
|||
Threadneedle Asset Management Holdings Sàrl
|
233
|
|
|
172
|
|
|
175
|
|
|||
Ameriprise Trust Company
|
5
|
|
|
6
|
|
|
36
|
|
|||
IDS Property Casualty
(3)
|
—
|
|
|
11
|
|
|
53
|
|
|||
Ameriprise Captive Insurance Company
|
64
|
|
|
64
|
|
|
65
|
|
|||
RiverSource Distributors, Inc.
|
14
|
|
|
14
|
|
|
23
|
|
|||
AMPF Holding Corporation
|
587
|
|
|
572
|
|
|
680
|
|
|||
Total dividend capacity
|
$
|
2,267
|
|
|
$
|
2,794
|
|
|
$
|
2,429
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
(in millions)
|
||||||||||
RiverSource Life
|
$
|
1,000
|
|
|
$
|
800
|
|
|
$
|
900
|
|
Ameriprise National Trust Bank
|
9
|
|
|
—
|
|
|
8
|
|
|||
ACC
|
(33
|
)
|
|
(3
|
)
|
|
5
|
|
|||
Columbia Management Investment Advisers, LLC
|
190
|
|
|
375
|
|
|
362
|
|
|||
Threadneedle Asset Management Holdings Sàrl
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|||
Ameriprise Trust Company
|
—
|
|
|
—
|
|
|
34
|
|
|||
IDS Property Casualty
(2)
|
(118
|
)
|
|
(175
|
)
|
|
—
|
|
|||
Ameriprise Advisor Capital, LLC
|
(46
|
)
|
|
(72
|
)
|
|
(31
|
)
|
|||
RiverSource Distributors, Inc.
|
3
|
|
|
—
|
|
|
10
|
|
|||
Ameriprise Captive Insurance Company
|
—
|
|
|
15
|
|
|
15
|
|
|||
AMPF Holding Corporation
|
450
|
|
|
421
|
|
|
519
|
|
|||
Total
|
$
|
1,455
|
|
|
$
|
1,361
|
|
|
$
|
1,822
|
|
(1)
|
During the year ended December 31, 2014, Threadneedle Asset Management Holdings Sàrl paid a $152 million dividend to the parent holding company consisting of a note receivable.
|
(2)
|
During the year ended December 31, 2014, the parent holding company made a non-cash contribution of $51 million to IDS Property Casualty consisting of securities.
|
|
Total
|
|
2017
|
|
2018-2019
|
|
2020-2021
|
|
2022 and Thereafter
|
||||||||||
(in millions)
|
|||||||||||||||||||
Balance Sheet
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt
(1)
|
$
|
2,899
|
|
|
$
|
12
|
|
|
$
|
326
|
|
|
$
|
761
|
|
|
$
|
1,800
|
|
Insurance and annuities
(2)
|
49,819
|
|
|
2,651
|
|
|
4,743
|
|
|
4,203
|
|
|
38,222
|
|
|||||
Investment certificates
(3)
|
5,935
|
|
|
5,677
|
|
|
258
|
|
|
—
|
|
|
—
|
|
|||||
Deferred premium options
(4)
|
1,790
|
|
|
270
|
|
|
500
|
|
|
381
|
|
|
639
|
|
|||||
Affordable housing and other real estate partnerships
(5)
|
177
|
|
|
88
|
|
|
78
|
|
|
5
|
|
|
6
|
|
|||||
Off-Balance Sheet
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating lease obligations
|
295
|
|
|
64
|
|
|
101
|
|
|
58
|
|
|
72
|
|
|||||
Purchase obligations
(6)
|
913
|
|
|
277
|
|
|
401
|
|
|
214
|
|
|
21
|
|
|||||
Interest on long-term debt
(7)
|
637
|
|
|
108
|
|
|
213
|
|
|
138
|
|
|
178
|
|
|||||
Total
|
$
|
62,465
|
|
|
$
|
9,147
|
|
|
$
|
6,620
|
|
|
$
|
5,760
|
|
|
$
|
40,938
|
|
•
|
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 that may be implemented or modified in connection with the Dodd-Frank Wall Street Reform and Consumer Protection Act or in light of the U.S. Department of Labor rule and exemptions pertaining to the fiduciary status of investment advice providers to 401(k) plans, 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
(such as the June 2016 UK referendum on membership in the European Union
and the uncertain regulatory environment in the U.S. after the recent U.S. election
)
, including tax laws, tax treaties, fiscal and central government treasury policy, and policies regarding the financial services industry and publicly-held firms, and regulatory rulings and pronouncements.
|
Equity Price Decline 10%
|
|
Equity Price Exposure to Pretax Income
|
||||||||||
Before Hedge Impact
|
|
Hedge Impact
|
|
Net Impact
|
||||||||
|
|
(in millions)
|
||||||||||
Asset-based management and distribution fees
(1)
|
|
$
|
(234
|
)
|
|
$
|
5
|
|
|
$
|
(229
|
)
|
DAC and DSIC amortization
(2)(3)
|
|
(130
|
)
|
|
—
|
|
|
(130
|
)
|
|||
Variable annuity riders:
|
|
|
|
|
|
|
|
|
|
|||
GMDB and GMIB
(3)
|
|
(35
|
)
|
|
—
|
|
|
(35
|
)
|
|||
GMWB
|
|
(587
|
)
|
|
436
|
|
|
(151
|
)
|
|||
GMAB
|
|
(43
|
)
|
|
44
|
|
|
1
|
|
|||
DAC and DSIC amortization
(4)
|
|
N/A
|
|
|
N/A
|
|
|
1
|
|
|||
Total variable annuity riders
|
|
(665
|
)
|
|
480
|
|
|
(184
|
)
|
|||
Macro hedge program
(5)
|
|
—
|
|
|
42
|
|
|
42
|
|
|||
Equity indexed annuities
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|||
Certificates
|
|
3
|
|
|
(3
|
)
|
|
—
|
|
|||
Indexed universal life insurance
|
|
45
|
|
|
(34
|
)
|
|
11
|
|
|||
Total
|
|
$
|
(980
|
)
|
|
$
|
489
|
|
|
$
|
(490
|
)
|
Interest Rate Increase 100 Basis Points
|
|
Interest Rate Exposure to Pretax Income
|
||||||||||
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
|
|
988
|
|
|
(1,000
|
)
|
|
(12
|
)
|
|||
GMAB
|
|
31
|
|
|
(30
|
)
|
|
1
|
|
|||
DAC and DSIC amortization
(4)
|
|
N/A
|
|
|
N/A
|
|
|
5
|
|
|||
Total variable annuity riders
|
|
1,019
|
|
|
(1,030
|
)
|
|
(6
|
)
|
|||
Macro hedge program
(5)
|
|
—
|
|
|
2
|
|
|
2
|
|
|||
Fixed annuities, fixed insurance and fixed portion of variable annuities and variable insurance products
|
|
95
|
|
|
—
|
|
|
95
|
|
|||
Brokerage client cash balances
|
|
184
|
|
|
—
|
|
|
184
|
|
|||
Certificates
|
|
(11
|
)
|
|
—
|
|
|
(11
|
)
|
|||
Indexed universal life insurance
|
|
79
|
|
|
2
|
|
|
81
|
|
|||
Total
|
|
$
|
1,318
|
|
|
$
|
(1,026
|
)
|
|
$
|
297
|
|
|
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
|
|
Total
|
|||||||||||
(in billions, except percentages)
|
|||||||||||||||||||
Range of Guaranteed Minimum Crediting Rates
|
|
|
|
|
|
|
|
|
|
||||||||||
1% - 1.99%
|
$
|
2.2
|
|
|
$
|
0.2
|
|
|
$
|
0.4
|
|
|
$
|
0.1
|
|
|
$
|
2.9
|
|
2% - 2.99%
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|||||
3% - 3.99%
|
9.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.0
|
|
|||||
4% - 5.00%
|
5.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.5
|
|
|||||
Total
|
$
|
17.2
|
|
|
$
|
0.2
|
|
|
$
|
0.4
|
|
|
$
|
0.1
|
|
|
$
|
17.9
|
|
Percentage of Account Values That Reset In:
|
|
|
|
|
|
|
|
|
|
||||||||||
Next 12 months
(1)
|
97
|
%
|
|
70
|
%
|
|
21
|
%
|
|
17
|
%
|
|
95
|
%
|
|||||
> 12 months to 24 months
(2)
|
3
|
|
|
9
|
|
|
9
|
|
|
52
|
|
|
3
|
|
|||||
> 24 months
(2)
|
—
|
|
|
21
|
|
|
70
|
|
|
31
|
|
|
2
|
|
|||||
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Report of Independent Registered Public Accounting Firm
|
|||
Consolidated Statements of Operations — Years Ended December 31, 2016, 2015 and 2014
|
|||
Consolidated Statements of Comprehensive Income — Years Ended December 31, 2016, 2015 and 2014
|
|||
Consolidated Balance Sheets — December 31, 2016 and 2015
|
|||
Consolidated Statements of Equity — Years Ended December 31, 2016, 2015 and 2014
|
|||
Consolidated Statements of Cash Flows — Years Ended December 31, 2016, 2015 and 2014
|
|||
Notes to Consolidated Financial Statements
|
|||
1.
|
Basis of Presentation
|
||
2.
|
Summary of Significant Accounting Policies
|
||
3.
|
Recent Accounting Pronouncements
|
||
4.
|
Variable Interest Entities
|
||
5.
|
Investments
|
||
6.
|
Financing Receivables
|
||
7.
|
Reinsurance
|
||
8.
|
Goodwill and Other Intangible Assets
|
||
9.
|
Deferred Acquisition Costs and Deferred Sales Inducement Costs
|
||
10.
|
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities
|
||
11.
|
Variable Annuity and Insurance Guarantees
|
||
12.
|
Customer Deposits
|
||
13.
|
Debt
|
||
14.
|
Fair Values of Assets and Liabilities
|
||
15.
|
Offsetting Assets and Liabilities
|
||
16.
|
Derivatives and Hedging Activities
|
||
17.
|
Share-Based Compensation
|
||
18.
|
Shareholders’ Equity
|
||
19.
|
Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders
|
||
20.
|
Regulatory Requirements
|
||
21.
|
Income Taxes
|
||
22.
|
Retirement Plans and Profit Sharing Arrangements
|
||
23.
|
Commitments, Guarantees and Contingencies
|
||
24.
|
Related Party Transactions
|
||
25.
|
Segment Information
|
||
26.
|
Quarterly Financial Data (Unaudited)
|
|
Years Ended December 31,
|
||||||||||
2016
|
|
2015
|
|
2014
|
|||||||
(in millions, except per share amounts)
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|||
Management and financial advice fees
|
$
|
5,778
|
|
|
$
|
5,950
|
|
|
$
|
5,810
|
|
Distribution fees
|
1,795
|
|
|
1,847
|
|
|
1,894
|
|
|||
Net investment income
|
1,576
|
|
|
1,688
|
|
|
1,741
|
|
|||
Premiums
|
1,491
|
|
|
1,455
|
|
|
1,385
|
|
|||
Other revenues
|
1,095
|
|
|
1,260
|
|
|
1,466
|
|
|||
Total revenues
|
11,735
|
|
|
12,200
|
|
|
12,296
|
|
|||
Banking and deposit interest expense
|
39
|
|
|
30
|
|
|
28
|
|
|||
Total net revenues
|
11,696
|
|
|
12,170
|
|
|
12,268
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|||
Distribution expenses
|
3,202
|
|
|
3,276
|
|
|
3,236
|
|
|||
Interest credited to fixed accounts
|
623
|
|
|
668
|
|
|
713
|
|
|||
Benefits, claims, losses and settlement expenses
|
2,646
|
|
|
2,261
|
|
|
1,982
|
|
|||
Amortization of deferred acquisition costs
|
415
|
|
|
354
|
|
|
367
|
|
|||
Interest and debt expense
|
241
|
|
|
387
|
|
|
328
|
|
|||
General and administrative expense
|
2,977
|
|
|
3,082
|
|
|
3,095
|
|
|||
Total expenses
|
10,104
|
|
|
10,028
|
|
|
9,721
|
|
|||
Income from continuing operations before income tax provision
|
1,592
|
|
|
2,142
|
|
|
2,547
|
|
|||
Income tax provision
|
278
|
|
|
455
|
|
|
545
|
|
|||
Income from continuing operations
|
1,314
|
|
|
1,687
|
|
|
2,002
|
|
|||
Loss from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||
Net income
|
1,314
|
|
|
1,687
|
|
|
2,000
|
|
|||
Less: Net income attributable to noncontrolling interests
|
—
|
|
|
125
|
|
|
381
|
|
|||
Net income attributable to Ameriprise Financial
|
$
|
1,314
|
|
|
$
|
1,562
|
|
|
$
|
1,619
|
|
|
|
|
|
|
|
||||||
Earnings per share attributable to Ameriprise Financial, Inc. common shareholders
|
|
|
|
|
|
||||||
Basic
|
|
|
|
|
|
|
|
|
|||
Income from continuing operations
|
$
|
7.90
|
|
|
$
|
8.60
|
|
|
$
|
8.46
|
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|||
Net income
|
$
|
7.90
|
|
|
$
|
8.60
|
|
|
$
|
8.45
|
|
Diluted
|
|
|
|
|
|
|
|
|
|||
Income from continuing operations
|
$
|
7.81
|
|
|
$
|
8.48
|
|
|
$
|
8.31
|
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|||
Net income
|
$
|
7.81
|
|
|
$
|
8.48
|
|
|
$
|
8.30
|
|
|
|
|
|
|
|
||||||
Cash dividends declared per common share
|
$
|
2.92
|
|
|
$
|
2.59
|
|
|
$
|
2.26
|
|
|
|
|
|
|
|
||||||
Supplemental Disclosures:
|
|
|
|
|
|
|
|
|
|||
Total other-than-temporary impairment losses on securities
|
$
|
(2
|
)
|
|
$
|
(8
|
)
|
|
$
|
(6
|
)
|
Portion of loss recognized in other comprehensive income (loss) (before taxes)
|
1
|
|
|
—
|
|
|
—
|
|
|||
Net impairment losses recognized in net investment income
|
$
|
(1
|
)
|
|
$
|
(8
|
)
|
|
$
|
(6
|
)
|
See Notes to Consolidated Financial Statements.
|
|
Years Ended December 31,
|
||||||||||
2016
|
|
2015
|
|
2014
|
|||||||
(in millions)
|
|||||||||||
Net income
|
$
|
1,314
|
|
|
$
|
1,687
|
|
|
$
|
2,000
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|||
Foreign currency translation adjustment
|
(76
|
)
|
|
(90
|
)
|
|
(103
|
)
|
|||
Net unrealized gains (losses) on securities
|
47
|
|
|
(360
|
)
|
|
131
|
|
|||
Net unrealized gains on derivatives
|
4
|
|
|
1
|
|
|
1
|
|
|||
Defined benefit plans
|
(34
|
)
|
|
(20
|
)
|
|
(25
|
)
|
|||
Total other comprehensive income (loss), net of tax
|
(59
|
)
|
|
(469
|
)
|
|
4
|
|
|||
Total comprehensive income
|
1,255
|
|
|
1,218
|
|
|
2,004
|
|
|||
Less: Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
65
|
|
|
318
|
|
|||
Comprehensive income attributable to Ameriprise Financial
|
$
|
1,255
|
|
|
$
|
1,153
|
|
|
$
|
1,686
|
|
See Notes to Consolidated Financial Statements.
|
|
December 31,
|
||||||
2016
|
|
2015
(1)
|
|||||
(in millions, except
share amounts)
|
|||||||
Assets
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
2,318
|
|
|
$
|
2,357
|
|
Cash of consolidated investment entities
|
168
|
|
|
502
|
|
||
Investments
|
35,834
|
|
|
34,144
|
|
||
Investments of consolidated investment entities, at fair value
|
2,254
|
|
|
6,570
|
|
||
Separate account assets
|
80,210
|
|
|
80,349
|
|
||
Receivables
|
5,299
|
|
|
5,167
|
|
||
Receivables of consolidated investment entities (includes $11 and $70, respectively, at fair value)
|
11
|
|
|
107
|
|
||
Deferred acquisition costs
|
2,648
|
|
|
2,730
|
|
||
Restricted and segregated cash and investments
|
3,331
|
|
|
2,949
|
|
||
Other assets
|
7,748
|
|
|
8,399
|
|
||
Other assets of consolidated investment entities (includes nil and $2,065, respectively, at fair value)
|
—
|
|
|
2,065
|
|
||
Total assets
|
$
|
139,821
|
|
|
$
|
145,339
|
|
|
|
|
|
||||
Liabilities and Equity
|
|
|
|
|
|
||
Liabilities:
|
|
|
|
|
|
||
Policyholder account balances, future policy benefits and claims
|
$
|
30,202
|
|
|
$
|
29,699
|
|
Separate account liabilities
|
80,210
|
|
|
80,349
|
|
||
Customer deposits
|
10,036
|
|
|
8,634
|
|
||
Short-term borrowings
|
200
|
|
|
200
|
|
||
Long-term debt
|
2,917
|
|
|
2,692
|
|
||
Debt of consolidated investment entities (includes $2,319 and $6,630, respectively, at fair value)
|
2,319
|
|
|
7,531
|
|
||
Accounts payable and accrued expenses
|
1,727
|
|
|
1,598
|
|
||
Accounts payable and accrued expenses of consolidated investment entities
|
—
|
|
|
54
|
|
||
Other liabilities
|
5,823
|
|
|
5,965
|
|
||
Other liabilities of consolidated investment entities (includes $95 and $221, respectively, at fair value)
|
95
|
|
|
238
|
|
||
Total liabilities
|
133,529
|
|
|
136,960
|
|
||
|
|
|
|
||||
Equity:
|
|
|
|
|
|
||
Ameriprise Financial, Inc.:
|
|
|
|
|
|
||
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 324,006,315 and 322,822,746, respectively)
|
3
|
|
|
3
|
|
||
Additional paid-in capital
|
7,765
|
|
|
7,611
|
|
||
Retained earnings
|
10,351
|
|
|
9,525
|
|
||
Appropriated retained earnings of consolidated investment entities
|
—
|
|
|
137
|
|
||
Treasury shares, at cost (169,246,411 and 151,789,486 shares, respectively)
|
(12,027
|
)
|
|
(10,338
|
)
|
||
Accumulated other comprehensive income, net of tax
|
200
|
|
|
253
|
|
||
Total Ameriprise Financial, Inc. shareholders’ equity
|
6,292
|
|
|
7,191
|
|
||
Noncontrolling interests
|
—
|
|
|
1,188
|
|
||
Total equity
|
6,292
|
|
|
8,379
|
|
||
Total liabilities and equity
|
$
|
139,821
|
|
|
$
|
145,339
|
|
(1)
Certain prior period amounts have been restated. See Note 1 for more information.
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
|
|||||||||||||||||||||||||||||
|
(in millions, except share data)
|
||||||||||||||||||||||||||||||||||||||
Balances at January 1, 2014
(1)
|
192,118,307
|
|
$
|
3
|
|
$
|
6,929
|
|
$
|
7,263
|
|
$
|
337
|
|
$
|
(6,961
|
)
|
$
|
595
|
|
$
|
8,166
|
|
$
|
1,040
|
|
$
|
9,206
|
|
||||||||||
Comprehensive income:
|
|||||||||||||||||||||||||||||||||||||||
Net income
|
—
|
|
—
|
|
—
|
|
1,619
|
|
—
|
|
—
|
|
—
|
|
1,619
|
|
381
|
|
2,000
|
|
|||||||||||||||||||
Other comprehensive income (loss), net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
67
|
|
67
|
|
(63
|
)
|
4
|
|
|||||||||||||||||||
Total comprehensive income
|
1,686
|
|
318
|
|
2,004
|
|
|||||||||||||||||||||||||||||||||
Net loss reclassified to appropriated retained earnings
|
—
|
|
—
|
|
—
|
|
—
|
|
(103
|
)
|
—
|
|
—
|
|
(103
|
)
|
103
|
|
—
|
|
|||||||||||||||||||
Dividends to shareholders
|
—
|
|
—
|
|
—
|
|
(435
|
)
|
—
|
|
—
|
|
—
|
|
(435
|
)
|
—
|
|
(435
|
)
|
|||||||||||||||||||
Noncontrolling interests investments in subsidiaries
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
176
|
|
176
|
|
|||||||||||||||||||
Distributions to noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(465
|
)
|
(465
|
)
|
|||||||||||||||||||
Repurchase of common shares
|
(14,739,666
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,717
|
)
|
—
|
|
(1,717
|
)
|
—
|
|
(1,717
|
)
|
|||||||||||||||||||
Share-based compensation plans
|
5,730,868
|
|
—
|
|
416
|
|
(4
|
)
|
—
|
|
89
|
|
—
|
|
501
|
|
9
|
|
510
|
|
|||||||||||||||||||
Balances at December 31, 2014
(1)
|
183,109,509
|
|
3
|
|
7,345
|
|
8,443
|
|
234
|
|
(8,589
|
)
|
662
|
|
8,098
|
|
1,181
|
|
9,279
|
|
|||||||||||||||||||
Comprehensive income:
|
|||||||||||||||||||||||||||||||||||||||
Net income
|
—
|
|
—
|
|
—
|
|
1,562
|
|
—
|
|
—
|
|
—
|
|
1,562
|
|
125
|
|
1,687
|
|
|||||||||||||||||||
Other comprehensive loss, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(409
|
)
|
(409
|
)
|
(60
|
)
|
(469
|
)
|
|||||||||||||||||||
Total comprehensive income
|
1,153
|
|
65
|
|
1,218
|
|
|||||||||||||||||||||||||||||||||
Net loss reclassified to appropriated retained earnings
|
—
|
|
—
|
|
—
|
|
—
|
|
(97
|
)
|
—
|
|
—
|
|
(97
|
)
|
97
|
|
—
|
|
|||||||||||||||||||
Dividends to shareholders
|
—
|
|
—
|
|
—
|
|
(474
|
)
|
—
|
|
—
|
|
—
|
|
(474
|
)
|
—
|
|
(474
|
)
|
|||||||||||||||||||
Noncontrolling interests investments in subsidiaries
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
255
|
|
255
|
|
|||||||||||||||||||
Distributions to noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(415
|
)
|
(415
|
)
|
|||||||||||||||||||
Repurchase of common shares
|
(14,951,703
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,815
|
)
|
—
|
|
(1,815
|
)
|
—
|
|
(1,815
|
)
|
|||||||||||||||||||
Share-based compensation plans
|
2,875,454
|
|
—
|
|
266
|
|
(6
|
)
|
—
|
|
66
|
|
—
|
|
326
|
|
5
|
|
331
|
|
|||||||||||||||||||
Balances at December 31, 2015
(1)
|
171,033,260
|
|
3
|
|
7,611
|
|
9,525
|
|
137
|
|
(10,338
|
)
|
253
|
|
7,191
|
|
1,188
|
|
8,379
|
|
|||||||||||||||||||
Cumulative effect of change in accounting policies
|
—
|
|
—
|
|
—
|
|
1
|
|
(137
|
)
|
—
|
|
6
|
|
(130
|
)
|
(1,188
|
)
|
(1,318
|
)
|
|||||||||||||||||||
Comprehensive income:
|
|||||||||||||||||||||||||||||||||||||||
Net income
|
—
|
|
—
|
|
—
|
|
1,314
|
|
—
|
|
—
|
|
—
|
|
1,314
|
|
—
|
|
1,314
|
|
|||||||||||||||||||
Other comprehensive loss, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(59
|
)
|
(59
|
)
|
—
|
|
(59
|
)
|
|||||||||||||||||||
Total comprehensive income
|
1,255
|
|
—
|
|
1,255
|
|
|||||||||||||||||||||||||||||||||
Dividends to shareholders
|
—
|
|
—
|
|
—
|
|
(489
|
)
|
—
|
|
—
|
|
—
|
|
(489
|
)
|
—
|
|
(489
|
)
|
|||||||||||||||||||
Repurchase of common shares
|
(18,367,742
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,751
|
)
|
—
|
|
(1,751
|
)
|
—
|
|
(1,751
|
)
|
|||||||||||||||||||
Share-based compensation plans
|
2,094,386
|
|
—
|
|
154
|
|
—
|
|
—
|
|
62
|
|
—
|
|
216
|
|
—
|
|
216
|
|
|||||||||||||||||||
Balances at December 31, 2016
|
154,759,904
|
|
$
|
3
|
|
$
|
7,765
|
|
$
|
10,351
|
|
$
|
—
|
|
$
|
(12,027
|
)
|
$
|
200
|
|
$
|
6,292
|
|
$
|
—
|
|
$
|
6,292
|
|
||||||||||
(1)
Prior period retained earnings have been restated. See Note 1 for more information.
See Notes to Consolidated Financial Statements.
|
|
Years Ended December 31,
|
||||||||||
2016
|
|
2015
|
|
2014
|
|||||||
(in millions)
|
|||||||||||
Cash Flows from Operating Activities
|
|
|
|
|
|
||||||
Net income
|
$
|
1,314
|
|
|
$
|
1,687
|
|
|
$
|
2,000
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation, amortization and accretion, net
|
248
|
|
|
248
|
|
|
254
|
|
|||
Deferred income tax expense (benefit)
|
(34
|
)
|
|
(131
|
)
|
|
228
|
|
|||
Share-based compensation
|
134
|
|
|
145
|
|
|
130
|
|
|||
Net realized investment gains
|
(16
|
)
|
|
(14
|
)
|
|
(45
|
)
|
|||
Net trading gains
|
(6
|
)
|
|
(7
|
)
|
|
(7
|
)
|
|||
Loss from equity method investments
|
54
|
|
|
14
|
|
|
11
|
|
|||
Other-than-temporary impairments and provision for loan losses
|
4
|
|
|
9
|
|
|
7
|
|
|||
Net gains of consolidated investment entities
|
(38
|
)
|
|
(132
|
)
|
|
(378
|
)
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Restricted and segregated cash and investments
|
(382
|
)
|
|
(335
|
)
|
|
(256
|
)
|
|||
Deferred acquisition costs
|
55
|
|
|
(7
|
)
|
|
31
|
|
|||
Other investments, net
|
14
|
|
|
81
|
|
|
(37
|
)
|
|||
Policyholder account balances, future policy benefits and claims, net
|
8
|
|
|
494
|
|
|
1,120
|
|
|||
Derivatives, net of collateral
|
59
|
|
|
93
|
|
|
(883
|
)
|
|||
Receivables
|
(150
|
)
|
|
(277
|
)
|
|
(423
|
)
|
|||
Brokerage deposits
|
310
|
|
|
337
|
|
|
378
|
|
|||
Accounts payable and accrued expenses
|
173
|
|
|
82
|
|
|
137
|
|
|||
Cash held by consolidated investment entities
|
(14
|
)
|
|
(107
|
)
|
|
37
|
|
|||
Investment properties of consolidated investment entities
|
—
|
|
|
(114
|
)
|
|
258
|
|
|||
Other operating assets and liabilities of consolidated investment entities, net
|
(9
|
)
|
|
95
|
|
|
—
|
|
|||
Other, net
|
247
|
|
|
411
|
|
|
(163
|
)
|
|||
Net cash provided by operating activities
|
1,971
|
|
|
2,572
|
|
|
2,399
|
|
|||
|
|
|
|
|
|
||||||
Cash Flows from Investing Activities
|
|
|
|
|
|
||||||
Available-for-Sale securities:
|
|
|
|
|
|
||||||
Proceeds from sales
|
366
|
|
|
294
|
|
|
516
|
|
|||
Maturities, sinking fund payments and calls
|
4,421
|
|
|
4,542
|
|
|
4,352
|
|
|||
Purchases
|
(6,498
|
)
|
|
(4,562
|
)
|
|
(4,127
|
)
|
|||
Proceeds from sales, maturities and repayments of mortgage loans
|
810
|
|
|
631
|
|
|
585
|
|
|||
Funding of mortgage loans
|
(451
|
)
|
|
(558
|
)
|
|
(525
|
)
|
|||
Proceeds from sales and collections of other investments
|
253
|
|
|
236
|
|
|
207
|
|
|||
Purchase of other investments
|
(291
|
)
|
|
(306
|
)
|
|
(408
|
)
|
|||
Purchase of investments by consolidated investment entities
|
(845
|
)
|
|
(2,678
|
)
|
|
(3,198
|
)
|
|||
Proceeds from sales, maturities and repayments of investments by consolidated investment entities
|
1,421
|
|
|
2,009
|
|
|
2,017
|
|
|||
Purchase of land, buildings, equipment and software
|
(92
|
)
|
|
(133
|
)
|
|
(113
|
)
|
|||
Other, net
|
102
|
|
|
11
|
|
|
(21
|
)
|
|||
Net cash used in investing activities
|
$
|
(804
|
)
|
|
$
|
(514
|
)
|
|
$
|
(715
|
)
|
See Notes to Consolidated Financial Statements.
|
|||||||||||
|
|
Years Ended December 31,
|
||||||||||
2016
|
|
2015
|
|
2014
|
|||||||
(in millions)
|
|||||||||||
Cash Flows from Financing Activities
|
|
|
|
|
|
||||||
Investment certificates:
|
|
|
|
|
|
||||||
Proceeds from additions
|
$
|
4,250
|
|
|
$
|
3,139
|
|
|
$
|
2,482
|
|
Maturities, withdrawals and cash surrenders
|
(3,155
|
)
|
|
(2,509
|
)
|
|
(2,259
|
)
|
|||
Policyholder account balances:
|
|
|
|
|
|
||||||
Deposits and other additions
|
2,086
|
|
|
2,061
|
|
|
2,042
|
|
|||
Net transfers to (from) separate accounts
|
127
|
|
|
(171
|
)
|
|
(216
|
)
|
|||
Surrenders and other benefits
|
(1,932
|
)
|
|
(2,714
|
)
|
|
(2,440
|
)
|
|||
Cash paid for purchased options with deferred premiums
|
(341
|
)
|
|
(392
|
)
|
|
(417
|
)
|
|||
Cash received from purchased options with deferred premiums
|
276
|
|
|
16
|
|
|
59
|
|
|||
Issuance of long-term debt, net of issuance costs
|
496
|
|
|
—
|
|
|
543
|
|
|||
Repayments of long-term debt
|
(257
|
)
|
|
(409
|
)
|
|
(200
|
)
|
|||
Change in short-term borrowings, net
|
(1
|
)
|
|
(1
|
)
|
|
(301
|
)
|
|||
Dividends paid to shareholders
|
(479
|
)
|
|
(465
|
)
|
|
(426
|
)
|
|||
Repurchase of common shares
|
(1,707
|
)
|
|
(1,741
|
)
|
|
(1,577
|
)
|
|||
Exercise of stock options
|
9
|
|
|
16
|
|
|
33
|
|
|||
Excess tax benefits from share-based compensation
|
14
|
|
|
81
|
|
|
162
|
|
|||
Borrowings by consolidated investment entities
|
—
|
|
|
1,650
|
|
|
2,159
|
|
|||
Repayments of debt by consolidated investment entities
|
(517
|
)
|
|
(719
|
)
|
|
(1,011
|
)
|
|||
Noncontrolling interests investments in subsidiaries
|
—
|
|
|
255
|
|
|
176
|
|
|||
Distributions to noncontrolling interests
|
—
|
|
|
(415
|
)
|
|
(465
|
)
|
|||
Other, net
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||
Net cash used in financing activities
|
(1,131
|
)
|
|
(2,318
|
)
|
|
(1,657
|
)
|
|||
Effect of exchange rate changes on cash
|
(75
|
)
|
|
(21
|
)
|
|
(21
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
(39
|
)
|
|
(281
|
)
|
|
6
|
|
|||
Cash and cash equivalents at beginning of period
|
2,357
|
|
|
2,638
|
|
|
2,632
|
|
|||
Cash and cash equivalents at end of period
|
$
|
2,318
|
|
|
$
|
2,357
|
|
|
$
|
2,638
|
|
|
|
|
|
|
|
||||||
Supplemental Disclosures:
|
|
|
|
|
|
||||||
Interest paid excluding consolidated investment entities
|
$
|
163
|
|
|
$
|
186
|
|
|
$
|
178
|
|
Interest paid by consolidated investment entities
|
127
|
|
|
257
|
|
|
190
|
|
|||
Income taxes paid, net
|
155
|
|
|
439
|
|
|
578
|
|
|||
Non-cash investing activity:
|
|
|
|
|
|
||||||
Partnership commitments not yet remitted
|
108
|
|
|
45
|
|
|
38
|
|
|||
See Notes to Consolidated Financial Statements.
|
•
|
If the VIE is a registered money market fund, or is an investment company, or has the financial characteristics of an investment company, and the following are true:
|
(i)
|
the reporting entity does not have an explicit or implicit obligation to fund the investment company’s losses; and
|
(ii)
|
the investment company is not a securitization entity, asset backed financing entity, or an entity previously considered a qualifying special purpose entity,
|
•
|
If
the
VIE
does
not
meet
the
criteria
above,
then
the
VIE
will
be
consolidated
by
the
reporting
entity
that
determines
it
has
both:
|
(i)
|
the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and
|
(ii)
|
the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.
|
•
|
the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and
|
•
|
the obligation to absorb potentially significant losses or the right to receive potentially significant benefits to the VIE.
|
|
December 31, 2016
|
||||||||||||||
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||
(in millions)
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate debt securities
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
19
|
|
Common stocks
|
22
|
|
|
6
|
|
|
5
|
|
|
33
|
|
||||
Other investments
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||
Syndicated loans
|
—
|
|
|
1,944
|
|
|
254
|
|
|
2,198
|
|
||||
Total investments
|
26
|
|
|
1,969
|
|
|
259
|
|
|
2,254
|
|
||||
Receivables
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
||||
Total assets at fair value
|
$
|
26
|
|
|
$
|
1,980
|
|
|
$
|
259
|
|
|
$
|
2,265
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt
(1)
|
$
|
—
|
|
|
$
|
2,319
|
|
|
$
|
—
|
|
|
$
|
2,319
|
|
Other liabilities
|
—
|
|
|
95
|
|
|
—
|
|
|
95
|
|
||||
Total liabilities at fair value
|
$
|
—
|
|
|
$
|
2,414
|
|
|
$
|
—
|
|
|
$
|
2,414
|
|
|
December 31, 2015
|
||||||||||||||
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||
(in millions)
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate debt securities
|
$
|
—
|
|
|
$
|
154
|
|
|
$
|
—
|
|
|
$
|
154
|
|
Common stocks
|
74
|
|
|
46
|
|
|
3
|
|
|
123
|
|
||||
Other investments
|
4
|
|
|
22
|
|
|
—
|
|
|
26
|
|
||||
Syndicated loans
|
—
|
|
|
5,738
|
|
|
529
|
|
|
6,267
|
|
||||
Total investments
|
78
|
|
|
5,960
|
|
|
532
|
|
|
6,570
|
|
||||
Receivables
|
—
|
|
|
70
|
|
|
—
|
|
|
70
|
|
||||
Other assets
|
—
|
|
|
—
|
|
|
2,065
|
|
|
2,065
|
|
||||
Total assets at fair value
|
$
|
78
|
|
|
$
|
6,030
|
|
|
$
|
2,597
|
|
|
$
|
8,705
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,630
|
|
|
$
|
6,630
|
|
Other liabilities
|
—
|
|
|
221
|
|
|
—
|
|
|
221
|
|
||||
Total liabilities at fair value
|
$
|
—
|
|
|
$
|
221
|
|
|
$
|
6,630
|
|
|
$
|
6,851
|
|
|
Common Stocks
|
|
Syndicated Loans
|
|
Other Assets
|
|
Debt
|
|
||||||||
(in millions)
|
||||||||||||||||
Balance, January 1, 2016
|
$
|
3
|
|
|
$
|
529
|
|
|
$
|
2,065
|
|
|
$
|
(6,630
|
)
|
|
Cumulative effect of change in accounting policies
(3)
|
(2
|
)
|
|
(304
|
)
|
|
(2,065
|
)
|
|
6,630
|
|
|
||||
Balance, January 1, 2016, as adjusted
|
1
|
|
|
225
|
|
|
—
|
|
|
—
|
|
|
||||
Total gains included in:
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
2
|
|
(1)
|
7
|
|
(1)
|
1
|
|
(2)
|
—
|
|
|
||||
Purchases
|
1
|
|
|
145
|
|
|
—
|
|
|
—
|
|
|
||||
Sales
|
—
|
|
|
(24
|
)
|
|
(1
|
)
|
|
—
|
|
|
||||
Settlements
|
—
|
|
|
(69
|
)
|
|
—
|
|
|
—
|
|
|
||||
Transfers into Level 3
|
3
|
|
|
405
|
|
|
—
|
|
|
—
|
|
|
||||
Transfers out of Level 3
|
(2
|
)
|
|
(435
|
)
|
|
—
|
|
|
—
|
|
|
||||
Balance, December 31, 2016
|
$
|
5
|
|
|
$
|
254
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Changes in unrealized gains included in income relating to assets and liabilities held at December 31, 2016
|
$
|
1
|
|
(1)
|
$
|
3
|
|
(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)
|
(24
|
)
|
(1)
|
170
|
|
(2)
|
215
|
|
(1)
|
||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
(154
|
)
|
|
—
|
|
|
||||
Purchases
|
—
|
|
|
303
|
|
|
638
|
|
|
—
|
|
|
||||
Sales
|
—
|
|
|
(36
|
)
|
|
(524
|
)
|
|
—
|
|
|
||||
Issues
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,267
|
)
|
|
||||
Settlements
|
—
|
|
|
(161
|
)
|
|
—
|
|
|
452
|
|
|
||||
Transfers into Level 3
|
7
|
|
|
776
|
|
|
—
|
|
|
—
|
|
|
||||
Transfers out of Level 3
|
(10
|
)
|
|
(813
|
)
|
|
—
|
|
|
—
|
|
|
||||
Balance, December 31, 2015
|
$
|
3
|
|
|
$
|
529
|
|
|
$
|
2,065
|
|
|
$
|
(6,630
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at December 31, 2015
|
$
|
—
|
|
|
$
|
(19
|
)
|
(1)
|
$
|
20
|
|
(2)
|
$
|
219
|
|
(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)
|
1
|
|
(1)
|
2
|
|
(1)
|
421
|
|
(2)
|
(34
|
)
|
(1)
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
(175
|
)
|
|
—
|
|
|
|||||
Purchases
|
2
|
|
|
—
|
|
|
417
|
|
|
289
|
|
|
—
|
|
|
|||||
Sales
|
(9
|
)
|
|
(2
|
)
|
|
(42
|
)
|
|
(547
|
)
|
|
—
|
|
|
|||||
Issues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,670
|
)
|
|
|||||
Settlements
|
—
|
|
|
—
|
|
|
(100
|
)
|
|
—
|
|
|
478
|
|
|
|||||
Transfers into Level 3
|
10
|
|
|
13
|
|
|
551
|
|
|
11
|
|
|
—
|
|
|
|||||
Transfers out of Level 3
|
(6
|
)
|
|
(19
|
)
|
|
(712
|
)
|
|
—
|
|
|
—
|
|
|
|||||
Balance, December 31, 2014
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
484
|
|
|
$
|
1,935
|
|
|
$
|
(6,030
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at December 31, 2014
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
(1)
|
$
|
362
|
|
(2)
|
$
|
1
|
|
(1)
|
|
December 31, 2015
|
||||||||||||||
Fair Value
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range
|
|
Weighted Average
|
|||||||
(in millions)
|
|
||||||||||||||
Other assets (property funds)
|
$
|
2,060
|
|
Discounted cash flow/ market comparables
|
Equivalent yield
|
2.6
|
%
|
–
|
11.5%
|
5.8
|
%
|
||||
|
|
|
Expected rental value (per square foot)
|
$3
|
–
|
$159
|
$51
|
||||||||
CLO debt
|
$
|
6,630
|
|
Discounted cash flow
|
Annual default rate
|
2.5%
|
|
||||||||
|
|
|
Discount rate
|
2.0
|
%
|
–
|
11.8%
|
3.4
|
%
|
||||||
|
|
|
Constant prepayment rate
|
5.0
|
%
|
–
|
10.0%
|
9.9
|
%
|
||||||
|
|
|
Loss recovery
|
36.4
|
%
|
–
|
63.6%
|
62.9
|
%
|
|
December 31,
|
||||||
2016
|
|
2015
|
|||||
(in millions)
|
|||||||
Syndicated loans
|
|
|
|
|
|
||
Unpaid principal balance
|
$
|
2,281
|
|
|
$
|
6,635
|
|
Excess unpaid principal over fair value
|
(83
|
)
|
|
(368
|
)
|
||
Fair value
|
$
|
2,198
|
|
|
$
|
6,267
|
|
Fair value of loans more than 90 days past due
|
$
|
8
|
|
|
$
|
24
|
|
Fair value of loans in nonaccrual status
|
8
|
|
|
24
|
|
||
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both
|
34
|
|
|
72
|
|
||
Debt
|
|
|
|
|
|
||
Unpaid principal balance
|
$
|
2,459
|
|
|
$
|
7,063
|
|
Excess unpaid principal over fair value
|
(140
|
)
|
|
(433
|
)
|
||
Fair value
|
$
|
2,319
|
|
(1)
|
$
|
6,630
|
|
|
Carrying Value
|
|
Weighted Average Interest Rate
|
||||||||||
December 31,
|
December 31,
|
||||||||||||
2016
|
|
2015
|
2016
|
|
2015
|
||||||||
(in millions)
|
|
||||||||||||
Debt of consolidated CLOs due 2019-2026
|
$
|
2,319
|
|
|
$
|
6,630
|
|
|
2.5
|
%
|
|
1.6
|
%
|
Floating rate revolving credit borrowings due 2017-2020
|
—
|
|
(1)
|
901
|
|
|
—
|
|
|
2.8
|
|
||
Total
|
$
|
2,319
|
|
|
$
|
7,531
|
|
|
|
|
|
|
|
|
December 31,
|
||||||
2016
|
|
2015
|
|||||
(in millions)
|
|||||||
Available-for-Sale securities, at fair value
|
$
|
30,719
|
|
|
$
|
28,673
|
|
Mortgage loans, net
|
2,986
|
|
|
3,359
|
|
||
Policy and certificate loans
|
831
|
|
|
824
|
|
||
Other investments
|
1,298
|
|
|
1,288
|
|
||
Total
|
$
|
35,834
|
|
|
$
|
34,144
|
|
|
Years Ended December 31,
|
||||||||||
2016
|
|
2015
|
|
2014
|
|||||||
(in millions)
|
|||||||||||
Investment income on fixed maturities
|
$
|
1,368
|
|
|
$
|
1,403
|
|
|
$
|
1,479
|
|
Net realized gains
|
6
|
|
|
4
|
|
|
37
|
|
|||
Affordable housing partnerships
|
(44
|
)
|
|
(18
|
)
|
|
(25
|
)
|
|||
Other
|
91
|
|
|
68
|
|
|
93
|
|
|||
Consolidated investment entities
|
155
|
|
|
231
|
|
|
157
|
|
|||
Total
|
$
|
1,576
|
|
|
$
|
1,688
|
|
|
$
|
1,741
|
|
Description of Securities
|
December 31, 2016
|
|||||||||||||||||||
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair Value
|
|
Noncredit
OTTI
(1)
|
||||||||||||
|
(in millions)
|
|||||||||||||||||||
Corporate debt securities
|
$
|
15,231
|
|
|
$
|
1,065
|
|
|
$
|
(60
|
)
|
|
$
|
16,236
|
|
|
$
|
—
|
|
|
Residential mortgage backed securities
|
6,899
|
|
|
86
|
|
|
(67
|
)
|
|
6,918
|
|
|
(3
|
)
|
||||||
Commercial mortgage backed securities
|
3,347
|
|
|
59
|
|
|
(39
|
)
|
|
3,367
|
|
|
—
|
|
||||||
Asset backed securities
|
1,532
|
|
|
33
|
|
|
(16
|
)
|
|
1,549
|
|
|
5
|
|
||||||
State and municipal obligations
|
2,195
|
|
|
198
|
|
|
(35
|
)
|
|
2,358
|
|
|
—
|
|
||||||
U.S. government and agencies obligations
|
7
|
|
|
1
|
|
|
—
|
|
|
8
|
|
|
—
|
|
||||||
Foreign government bonds and obligations
|
251
|
|
|
17
|
|
|
(7
|
)
|
|
261
|
|
|
—
|
|
||||||
Common stocks
|
10
|
|
|
13
|
|
|
(1
|
)
|
|
22
|
|
|
6
|
|
||||||
Total
|
$
|
29,472
|
|
|
$
|
1,472
|
|
|
$
|
(225
|
)
|
|
$
|
30,719
|
|
|
$
|
8
|
|
Description of Securities
|
December 31, 2015
|
|||||||||||||||||||
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair Value
|
|
Noncredit
OTTI (1) |
||||||||||||
|
(in millions)
|
|||||||||||||||||||
Corporate debt securities
|
$
|
15,750
|
|
|
$
|
894
|
|
|
$
|
(296
|
)
|
|
$
|
16,348
|
|
|
$
|
3
|
|
|
Residential mortgage backed securities
|
5,933
|
|
|
106
|
|
|
(66
|
)
|
|
5,973
|
|
|
(12
|
)
|
||||||
Commercial mortgage backed securities
|
2,400
|
|
|
70
|
|
|
(14
|
)
|
|
2,456
|
|
|
—
|
|
||||||
Asset backed securities
|
1,273
|
|
|
34
|
|
|
(11
|
)
|
|
1,296
|
|
|
—
|
|
||||||
State and municipal obligations
|
2,105
|
|
|
213
|
|
|
(28
|
)
|
|
2,290
|
|
|
—
|
|
||||||
U.S. government and agencies obligations
|
66
|
|
|
2
|
|
|
—
|
|
|
68
|
|
|
—
|
|
||||||
Foreign government bonds and obligations
|
218
|
|
|
17
|
|
|
(11
|
)
|
|
224
|
|
|
—
|
|
||||||
Common stocks
|
7
|
|
|
11
|
|
|
—
|
|
|
18
|
|
|
5
|
|
||||||
Total
|
$
|
27,752
|
|
|
$
|
1,347
|
|
|
$
|
(426
|
)
|
|
$
|
28,673
|
|
|
$
|
(4
|
)
|
Ratings
|
December 31, 2016
|
|
December 31, 2015
|
|||||||||||||||||||
Amortized
Cost |
|
Fair Value
|
|
Percent of
Total Fair Value |
Amortized
Cost |
|
Fair Value
|
|
Percent of
Total Fair Value |
|||||||||||||
|
(in millions, except percentages)
|
|||||||||||||||||||||
AAA
|
$
|
9,252
|
|
|
$
|
9,305
|
|
|
31
|
%
|
|
$
|
7,147
|
|
|
$
|
7,289
|
|
|
25
|
%
|
|
AA
|
1,729
|
|
|
1,906
|
|
|
6
|
|
|
1,732
|
|
|
1,930
|
|
|
7
|
|
|||||
A
|
5,157
|
|
|
5,567
|
|
|
18
|
|
|
5,131
|
|
|
5,507
|
|
|
19
|
|
|||||
BBB
|
11,739
|
|
|
12,340
|
|
|
40
|
|
|
12,052
|
|
|
12,353
|
|
|
43
|
|
|||||
Below investment grade
|
1,585
|
|
|
1,579
|
|
|
5
|
|
|
1,683
|
|
|
1,576
|
|
|
6
|
|
|||||
Total fixed maturities
|
$
|
29,462
|
|
|
$
|
30,697
|
|
|
100
|
%
|
|
$
|
27,745
|
|
|
$
|
28,655
|
|
|
100
|
%
|
Description of Securities
|
December 31, 2016
|
||||||||||||||||||||||||||||||||
Less than 12 months
|
|
12 months or more
|
|
Total
|
|||||||||||||||||||||||||||||
Number of Securities
|
|
Fair
Value |
|
Unrealized
Losses |
Number of Securities
|
|
Fair
Value |
|
Unrealized
Losses |
Number of Securities
|
|
Fair
Value |
|
Unrealized
Losses |
|||||||||||||||||||
|
(in millions, except number of securities)
|
||||||||||||||||||||||||||||||||
Corporate debt securities
|
187
|
|
|
$
|
2,452
|
|
|
$
|
(33
|
)
|
|
38
|
|
|
$
|
377
|
|
|
$
|
(27
|
)
|
|
225
|
|
|
$
|
2,829
|
|
|
$
|
(60
|
)
|
|
Residential mortgage backed securities
|
127
|
|
|
2,533
|
|
|
(33
|
)
|
|
177
|
|
|
1,290
|
|
|
(34
|
)
|
|
304
|
|
|
3,823
|
|
|
(67
|
)
|
|||||||
Commercial mortgage backed securities
|
100
|
|
|
1,583
|
|
|
(39
|
)
|
|
5
|
|
|
43
|
|
|
—
|
|
|
105
|
|
|
1,626
|
|
|
(39
|
)
|
|||||||
Asset backed securities
|
48
|
|
|
524
|
|
|
(9
|
)
|
|
27
|
|
|
298
|
|
|
(7
|
)
|
|
75
|
|
|
822
|
|
|
(16
|
)
|
|||||||
State and municipal obligations
|
181
|
|
|
374
|
|
|
(14
|
)
|
|
3
|
|
|
110
|
|
|
(21
|
)
|
|
184
|
|
|
484
|
|
|
(35
|
)
|
|||||||
Foreign government bonds and obligations
|
7
|
|
|
30
|
|
|
(1
|
)
|
|
15
|
|
|
23
|
|
|
(6
|
)
|
|
22
|
|
|
53
|
|
|
(7
|
)
|
|||||||
Common and preferred stocks
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
1
|
|
|
(1
|
)
|
|
3
|
|
|
1
|
|
|
(1
|
)
|
|||||||
Total
|
650
|
|
|
$
|
7,496
|
|
|
$
|
(129
|
)
|
|
268
|
|
|
$
|
2,142
|
|
|
$
|
(96
|
)
|
|
918
|
|
|
$
|
9,638
|
|
|
$
|
(225
|
)
|
Description of Securities
|
December 31, 2015
|
||||||||||||||||||||||||||||||||
Less than 12 months
|
|
12 months or more
|
|
Total
|
|||||||||||||||||||||||||||||
Number of Securities
|
|
Fair
Value |
|
Unrealized
Losses |
Number of Securities
|
|
Fair
Value |
|
Unrealized
Losses |
Number of Securities
|
|
Fair
Value |
|
Unrealized
Losses |
|||||||||||||||||||
|
(in millions, except number of securities)
|
||||||||||||||||||||||||||||||||
Corporate debt securities
|
347
|
|
|
$
|
5,150
|
|
|
$
|
(220
|
)
|
|
48
|
|
|
$
|
454
|
|
|
$
|
(76
|
)
|
|
395
|
|
|
$
|
5,604
|
|
|
$
|
(296
|
)
|
|
Residential mortgage backed securities
|
123
|
|
|
1,869
|
|
|
(16
|
)
|
|
164
|
|
|
1,350
|
|
|
(50
|
)
|
|
287
|
|
|
3,219
|
|
|
(66
|
)
|
|||||||
Commercial mortgage backed securities
|
58
|
|
|
695
|
|
|
(13
|
)
|
|
4
|
|
|
49
|
|
|
(1
|
)
|
|
62
|
|
|
744
|
|
|
(14
|
)
|
|||||||
Asset backed securities
|
50
|
|
|
455
|
|
|
(7
|
)
|
|
14
|
|
|
254
|
|
|
(4
|
)
|
|
64
|
|
|
709
|
|
|
(11
|
)
|
|||||||
State and municipal obligations
|
31
|
|
|
100
|
|
|
(1
|
)
|
|
5
|
|
|
110
|
|
|
(27
|
)
|
|
36
|
|
|
210
|
|
|
(28
|
)
|
|||||||
Foreign government bonds and obligations
|
9
|
|
|
39
|
|
|
(2
|
)
|
|
15
|
|
|
27
|
|
|
(9
|
)
|
|
24
|
|
|
66
|
|
|
(11
|
)
|
|||||||
Total
|
618
|
|
|
$
|
8,308
|
|
|
$
|
(259
|
)
|
|
250
|
|
|
$
|
2,244
|
|
|
$
|
(167
|
)
|
|
868
|
|
|
$
|
10,552
|
|
|
$
|
(426
|
)
|
|
December 31,
|
||||||||||
2016
|
|
2015
|
|
2014
|
|||||||
(in millions)
|
|||||||||||
Beginning balance
|
$
|
85
|
|
|
$
|
98
|
|
|
$
|
147
|
|
Credit losses for which an other-than-temporary impairment was not previously recognized
|
1
|
|
|
—
|
|
|
—
|
|
|||
Credit losses for which an other-than-temporary impairment was previously recognized
|
1
|
|
|
2
|
|
|
1
|
|
|||
Reductions for securities sold during the period (realized)
|
(18
|
)
|
|
(15
|
)
|
|
(50
|
)
|
|||
Ending balance
|
$
|
69
|
|
|
$
|
85
|
|
|
$
|
98
|
|
|
Years Ended December 31,
|
||||||||||
2016
|
|
2015
|
|
2014
|
|||||||
(in millions)
|
|||||||||||
Gross realized gains
|
$
|
37
|
|
|
$
|
33
|
|
|
$
|
53
|
|
Gross realized losses
|
(13
|
)
|
|
(19
|
)
|
|
(8
|
)
|
|||
Other-than-temporary impairments
|
(2
|
)
|
|
(8
|
)
|
|
(6
|
)
|
|||
Total
|
$
|
22
|
|
|
$
|
6
|
|
|
$
|
39
|
|
|
Amortized Cost
|
|
Fair
Value
|
||||
(in millions)
|
|||||||
Due within one year
|
$
|
1,200
|
|
|
$
|
1,210
|
|
Due after one year through five years
|
7,264
|
|
|
7,587
|
|
||
Due after five years through 10 years
|
4,817
|
|
|
4,917
|
|
||
Due after 10 years
|
4,403
|
|
|
5,149
|
|
||
|
17,684
|
|
|
18,863
|
|
||
Residential mortgage backed securities
|
6,899
|
|
|
6,918
|
|
||
Commercial mortgage backed securities
|
3,347
|
|
|
3,367
|
|
||
Asset backed securities
|
1,532
|
|
|
1,549
|
|
||
Common stocks
|
10
|
|
|
22
|
|
||
Total
|
$
|
29,472
|
|
|
$
|
30,719
|
|
|
December 31,
|
||||||||||
2016
|
|
2015
|
|
2014
|
|||||||
(in millions)
|
|||||||||||
Beginning balance
|
$
|
32
|
|
|
$
|
35
|
|
|
$
|
37
|
|
Charge-offs
|
(5
|
)
|
|
(4
|
)
|
|
(4
|
)
|
|||
Recoveries
|
—
|
|
|
—
|
|
|
1
|
|
|||
Provisions
|
2
|
|
|
1
|
|
|
1
|
|
|||
Ending balance
|
$
|
29
|
|
|
$
|
32
|
|
|
$
|
35
|
|
|
|||||||||||
Individually evaluated for impairment
|
$
|
2
|
|
|
$
|
4
|
|
|
$
|
9
|
|
Collectively evaluated for impairment
|
27
|
|
|
28
|
|
|
26
|
|
|
December 31,
|
||||||
2016
|
|
2015
|
|||||
(in millions)
|
|||||||
Individually evaluated for impairment
|
$
|
12
|
|
|
$
|
34
|
|
Collectively evaluated for impairment
|
3,480
|
|
|
3,910
|
|
||
Total
|
$
|
3,492
|
|
|
$
|
3,944
|
|
|
Loans
|
|
Percentage
|
||||||||||
December 31,
|
December 31,
|
||||||||||||
2016
|
|
2015
|
2016
|
|
2015
|
||||||||
(in millions)
|
|
|
|
||||||||||
East North Central
|
$
|
198
|
|
|
$
|
211
|
|
|
7
|
%
|
|
8
|
%
|
East South Central
|
88
|
|
|
74
|
|
|
3
|
|
|
3
|
|
||
Middle Atlantic
|
203
|
|
|
210
|
|
|
8
|
|
|
8
|
|
||
Mountain
|
240
|
|
|
248
|
|
|
9
|
|
|
9
|
|
||
New England
|
91
|
|
|
123
|
|
|
3
|
|
|
4
|
|
||
Pacific
|
746
|
|
|
741
|
|
|
28
|
|
|
27
|
|
||
South Atlantic
|
783
|
|
|
782
|
|
|
29
|
|
|
28
|
|
||
West North Central
|
222
|
|
|
229
|
|
|
8
|
|
|
8
|
|
||
West South Central
|
131
|
|
|
137
|
|
|
5
|
|
|
5
|
|
||
|
2,702
|
|
|
2,755
|
|
|
100
|
%
|
|
100
|
%
|
||
Less: allowance for loan losses
|
21
|
|
|
21
|
|
|
|
|
|||||
Total
|
$
|
2,681
|
|
|
$
|
2,734
|
|
|
Loans
|
|
Percentage
|
||||||||||
December 31,
|
|
December 31,
|
|||||||||||
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||
(in millions)
|
|
|
|
|
|||||||||
Apartments
|
$
|
504
|
|
|
$
|
504
|
|
|
19
|
%
|
|
18
|
%
|
Hotel
|
42
|
|
|
35
|
|
|
1
|
|
|
1
|
|
||
Industrial
|
446
|
|
|
459
|
|
|
17
|
|
|
17
|
|
||
Mixed use
|
49
|
|
|
35
|
|
|
2
|
|
|
1
|
|
||
Office
|
489
|
|
|
541
|
|
|
18
|
|
|
20
|
|
||
Retail
|
950
|
|
|
984
|
|
|
35
|
|
|
36
|
|
||
Other
|
222
|
|
|
197
|
|
|
8
|
|
|
7
|
|
||
|
2,702
|
|
|
2,755
|
|
|
100
|
%
|
|
100
|
%
|
||
Less: allowance for loan losses
|
21
|
|
|
21
|
|
|
|
|
|||||
Total
|
$
|
2,681
|
|
|
$
|
2,734
|
|
|
Years Ended December 31,
|
||||||||||
2016
|
|
2015
|
|
2014
|
|||||||
(in millions)
|
|||||||||||
Written premiums
|
|
|
|
|
|
||||||
Direct
|
$
|
1,085
|
|
|
$
|
1,093
|
|
|
$
|
1,025
|
|
Ceded
|
(20
|
)
|
|
(19
|
)
|
|
(17
|
)
|
|||
Total net written premiums
|
$
|
1,065
|
|
|
$
|
1,074
|
|
|
$
|
1,008
|
|
Earned premiums
|
|
|
|
|
|
||||||
Direct
|
$
|
1,094
|
|
|
$
|
1,068
|
|
|
$
|
979
|
|
Ceded
|
(20
|
)
|
|
(19
|
)
|
|
(17
|
)
|
|||
Total net earned premiums
|
$
|
1,074
|
|
|
$
|
1,049
|
|
|
$
|
962
|
|
|
Advice & Wealth
Management |
|
Asset
Management |
|
Annuities
|
|
Protection
|
|
Consolidated
|
||||||||||
(in millions)
|
|||||||||||||||||||
Balance at January 1, 2015
|
$
|
252
|
|
|
$
|
811
|
|
|
$
|
46
|
|
|
$
|
45
|
|
|
$
|
1,154
|
|
Foreign currency translation
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|||||
Purchase price adjustments
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Balance at December 31, 2015
|
252
|
|
|
794
|
|
|
46
|
|
|
45
|
|
|
1,137
|
|
|||||
Acquisitions
|
—
|
|
|
19
|
|
(1)
|
—
|
|
|
—
|
|
|
19
|
|
|||||
Foreign currency translation
|
—
|
|
|
(51
|
)
|
|
—
|
|
|
—
|
|
|
(51
|
)
|
|||||
Purchase price adjustments
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Balance at December 31, 2016
|
$
|
252
|
|
|
$
|
761
|
|
|
$
|
46
|
|
|
$
|
45
|
|
|
$
|
1,104
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net
Carrying Amount
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net
Carrying Amount
|
||||||||||||||
(in millions)
|
|||||||||||||||||||||||
Customer relationships
|
$
|
144
|
|
|
$
|
(112
|
)
|
|
$
|
32
|
|
|
$
|
149
|
|
|
$
|
(106
|
)
|
|
$
|
43
|
|
Contracts
|
213
|
|
|
(177
|
)
|
|
36
|
|
|
233
|
|
|
(189
|
)
|
|
44
|
|
||||||
Other
|
141
|
|
|
(101
|
)
|
|
40
|
|
|
149
|
|
|
(103
|
)
|
|
46
|
|
||||||
Total
|
$
|
498
|
|
|
$
|
(390
|
)
|
|
$
|
108
|
|
|
$
|
531
|
|
|
$
|
(398
|
)
|
|
$
|
133
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
(in millions)
|
|||||||||||
Balance at January 1
(1)
|
$
|
2,730
|
|
|
$
|
2,613
|
|
|
$
|
2,668
|
|
Capitalization of acquisition costs
|
360
|
|
(2)
|
361
|
|
|
336
|
|
|||
Amortization, excluding the impact of valuation assumptions review
|
(334
|
)
|
|
(348
|
)
|
|
(360
|
)
|
|||
Amortization, impact of valuation assumptions review
|
(81
|
)
|
(3)
|
(6
|
)
|
|
(7
|
)
|
|||
Impact of change in net unrealized securities (gains) losses
|
(27
|
)
|
|
110
|
|
|
(24
|
)
|
|||
Balance at December 31
(1)
|
$
|
2,648
|
|
|
$
|
2,730
|
|
|
$
|
2,613
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
(in millions)
|
|||||||||||
Balance at January 1
|
$
|
335
|
|
|
$
|
362
|
|
|
$
|
409
|
|
Capitalization of sales inducement costs
|
5
|
|
|
4
|
|
|
5
|
|
|||
Amortization, excluding the impact of valuation assumptions review
|
(42
|
)
|
|
(52
|
)
|
|
(51
|
)
|
|||
Amortization, impact of valuation assumptions review
|
4
|
|
|
1
|
|
|
(2
|
)
|
|||
Impact of change in net unrealized securities losses
|
—
|
|
|
20
|
|
|
1
|
|
|||
Balance at December 31
|
$
|
302
|
|
|
$
|
335
|
|
|
$
|
362
|
|
|
December 31,
|
||||||
2016
|
|
2015
|
|||||
(in millions)
|
|||||||
Policyholder account balances
|
|
|
|
||||
Fixed annuities
|
$
|
10,565
|
|
|
$
|
11,239
|
|
Variable annuity fixed sub-accounts
|
5,211
|
|
|
4,912
|
|
||
VUL/UL insurance
|
3,007
|
|
|
2,897
|
|
||
IUL insurance
|
1,054
|
|
|
808
|
|
||
Other life insurance
|
758
|
|
|
794
|
|
||
Total policyholder account balances
|
20,595
|
|
|
20,650
|
|
||
|
|
|
|
||||
Future policy benefits
|
|
|
|
||||
Variable annuity GMWB
|
1,017
|
|
|
1,057
|
|
||
Variable annuity GMAB
|
(24
|
)
|
(1)
|
—
|
|
||
Other annuity liabilities
|
64
|
|
|
31
|
|
||
Fixed annuities life contingent liabilities
|
1,497
|
|
|
1,501
|
|
||
EIA
(2)
|
25
|
|
|
27
|
|
||
Life, DI and LTC insurance
|
5,556
|
|
|
5,112
|
|
||
VUL/UL and other life insurance additional liabilities
|
588
|
|
|
452
|
|
||
Total future policy benefits
|
8,723
|
|
|
8,180
|
|
||
Policy claims and other policyholders’ funds
|
884
|
|
|
869
|
|
||
Total policyholder account balances, future policy benefits and claims
|
$
|
30,202
|
|
|
$
|
29,699
|
|
•
|
In 2016, there was a
$6 million
decrease primarily reflecting favorable closed claim trends of DI and LTC policies and a decrease of
$18 million
related to favorable prior year reserve development for auto and home business of
$20 million
partially offset by unfavorable prior year catastrophe reserve development of
$2 million
.
|
•
|
In 2015, there was a
$60 million
decrease primarily reflecting favorable closed claim trends of DI and LTC policies and from an update to assumptions related to life rider benefits partially offset by an increase of
$58 million
related to elevated frequency and severity experience for auto injury claims for 2014 and prior accident years as well as a more gradual than anticipated improvement of 2014 and prior years existing claims and unfavorable prior year catastrophe reserve development associated with 2014 hail storms.
|
•
|
In 2014, there was a
$42 million
decrease related to favorable closed claim trends primarily related to DI and LTC policies more than offset by a
$54 million
increase primarily reflecting adverse development in the 2013 and prior accident years auto liability coverage.
|
|
December 31,
|
||||||
2016
|
|
2015
|
|||||
(in millions)
|
|||||||
Variable annuity
|
$
|
69,606
|
|
|
$
|
69,333
|
|
VUL insurance
|
6,659
|
|
|
6,637
|
|
||
Other insurance
|
33
|
|
|
34
|
|
||
Threadneedle investment liabilities
|
3,912
|
|
|
4,345
|
|
||
Total
|
$
|
80,210
|
|
|
$
|
80,349
|
|
•
|
Return of premium — provides purchase payments minus adjusted partial surrenders.
|
•
|
Reset — provides that the value resets to the account value every sixth contract anniversary minus adjusted partial surrenders. This provision was often provided in combination with the return of premium provision and is no longer offered.
|
•
|
Ratchet — provides that the value ratchets up to the maximum account value at specified anniversary intervals, plus subsequent purchase payments less adjusted partial surrenders.
|
•
|
Withdrawals at a specified rate per year until the amount withdrawn is equal to the guaranteed amount.
|
•
|
Withdrawals at a specified rate per year for the life of the contractholder (“GMWB for life”).
|
•
|
Withdrawals at a specified rate per year for joint contractholders while either is alive.
|
•
|
Withdrawals based on performance of the contract.
|
•
|
Withdrawals based on the age withdrawals begin.
|
•
|
Once withdrawals begin, the contractholder’s funds are moved to one of the three least aggressive asset allocation models.
|
•
|
Credits are applied annually for a specified number of years to increase the guaranteed amount as long as withdrawals have not been taken.
|
Variable Annuity Guarantees
by Benefit Type
(1)
|
December 31, 2016
|
|
December 31, 2015
|
|||||||||||||||||||||||||
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
|
$
|
56,143
|
|
|
$
|
54,145
|
|
|
$
|
208
|
|
|
65
|
|
$
|
54,716
|
|
|
$
|
52,871
|
|
|
$
|
297
|
|
|
65
|
|
Five/six-year reset
|
8,878
|
|
|
6,170
|
|
|
22
|
|
|
66
|
|
9,307
|
|
|
6,731
|
|
|
78
|
|
|
65
|
|||||||
One-year ratchet
|
6,426
|
|
|
6,050
|
|
|
110
|
|
|
68
|
|
6,747
|
|
|
6,379
|
|
|
266
|
|
|
67
|
|||||||
Five-year ratchet
|
1,542
|
|
|
1,483
|
|
|
7
|
|
|
64
|
|
1,613
|
|
|
1,556
|
|
|
20
|
|
|
63
|
|||||||
Other
|
965
|
|
|
942
|
|
|
86
|
|
|
71
|
|
887
|
|
|
869
|
|
|
82
|
|
|
71
|
|||||||
Total — GMDB
|
$
|
73,954
|
|
|
$
|
68,790
|
|
|
$
|
433
|
|
|
65
|
|
$
|
73,270
|
|
|
$
|
68,406
|
|
|
$
|
743
|
|
|
65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
GGU death benefit
|
$
|
1,047
|
|
|
$
|
996
|
|
|
$
|
108
|
|
|
68
|
|
$
|
1,056
|
|
|
$
|
1,004
|
|
|
$
|
113
|
|
|
67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
GMIB
|
$
|
245
|
|
|
$
|
227
|
|
|
$
|
13
|
|
|
68
|
|
$
|
270
|
|
|
$
|
251
|
|
|
$
|
17
|
|
|
68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
GMWB:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
GMWB
|
$
|
2,650
|
|
|
$
|
2,642
|
|
|
$
|
2
|
|
|
70
|
|
$
|
3,118
|
|
|
$
|
3,109
|
|
|
$
|
2
|
|
|
69
|
|
GMWB for life
|
39,436
|
|
|
39,282
|
|
|
495
|
|
|
66
|
|
37,301
|
|
|
37,179
|
|
|
330
|
|
|
66
|
|||||||
Total — GMWB
|
$
|
42,086
|
|
|
$
|
41,924
|
|
|
$
|
497
|
|
|
66
|
|
$
|
40,419
|
|
|
$
|
40,288
|
|
|
$
|
332
|
|
|
66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
GMAB
|
$
|
3,484
|
|
|
$
|
3,476
|
|
|
$
|
21
|
|
|
59
|
|
$
|
4,018
|
|
|
$
|
4,006
|
|
|
$
|
31
|
|
|
58
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||
Net Amount at Risk
|
|
Weighted Average Attained Age
|
Net Amount at Risk
|
|
Weighted Average Attained Age
|
||||||
(in millions, except age)
|
|||||||||||
UL secondary guarantees
|
$
|
6,376
|
|
|
64
|
|
$
|
6,601
|
|
|
63
|
|
GMDB & GGU
|
|
GMIB
|
|
GMWB
(1)
|
|
GMAB
(1)
|
|
UL
|
||||||||||
(in millions)
|
|||||||||||||||||||
Balance at January 1, 2014
|
$
|
4
|
|
|
$
|
6
|
|
|
$
|
(383
|
)
|
|
$
|
(62
|
)
|
|
$
|
206
|
|
Incurred claims
|
9
|
|
|
1
|
|
|
1,076
|
|
|
21
|
|
|
75
|
|
|||||
Paid claims
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
|||||
Balance at December 31, 2014
|
9
|
|
|
7
|
|
|
693
|
|
|
(41
|
)
|
|
263
|
|
|||||
Incurred claims
|
10
|
|
|
1
|
|
|
364
|
|
|
41
|
|
|
92
|
|
|||||
Paid claims
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
|||||
Balance at December 31, 2015
|
14
|
|
|
8
|
|
|
1,057
|
|
|
—
|
|
|
332
|
|
|||||
Incurred claims
|
11
|
|
|
1
|
|
|
(40
|
)
|
|
(23
|
)
|
|
127
|
|
|||||
Paid claims
|
(9
|
)
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(25
|
)
|
|||||
Balance at December 31, 2016
|
$
|
16
|
|
|
$
|
8
|
|
|
$
|
1,017
|
|
|
$
|
(24
|
)
|
|
$
|
434
|
|
|
December 31,
|
||||||
2016
|
|
2015
|
|||||
(in millions)
|
|||||||
Fixed rate certificates
|
$
|
5,353
|
|
|
$
|
4,260
|
|
Stock market certificates
|
547
|
|
|
553
|
|
||
Stock market embedded derivative
|
8
|
|
|
4
|
|
||
Other
|
27
|
|
|
18
|
|
||
Less: accrued interest classified in other liabilities
|
(11
|
)
|
|
(3
|
)
|
||
Total investment certificate reserves
|
5,924
|
|
|
4,832
|
|
||
Brokerage deposits
|
4,112
|
|
|
3,802
|
|
||
Total
|
$
|
10,036
|
|
|
$
|
8,634
|
|
|
Outstanding Balance
|
|
Stated Interest Rate
|
||||||||||
December 31,
|
December 31,
|
||||||||||||
2016
|
|
2015
|
2016
|
|
2015
|
||||||||
(in millions)
|
|
|
|||||||||||
Long-term debt:
|
|
|
|
|
|
|
|
||||||
Senior notes due 2019
|
$
|
300
|
|
|
$
|
300
|
|
|
7.3
|
%
|
|
7.3
|
%
|
Senior notes due 2020
|
750
|
|
|
750
|
|
|
5.3
|
|
|
5.3
|
|
||
Senior notes due 2023
|
750
|
|
|
750
|
|
|
4.0
|
|
|
4.0
|
|
||
Senior notes due 2024
|
550
|
|
|
550
|
|
|
3.7
|
|
|
3.7
|
|
||
Senior notes due 2026
|
500
|
|
|
—
|
|
|
2.9
|
|
|
—
|
|
||
Junior subordinated notes due 2066
|
—
|
|
|
245
|
|
|
—
|
|
|
7.5
|
|
||
Capitalized lease obligations
|
49
|
|
|
60
|
|
|
|
|
|
||||
Other
(1)
|
18
|
|
|
37
|
|
|
|
|
|
||||
Total long-term debt
|
2,917
|
|
|
2,692
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||
Short-term borrowings:
|
|
|
|
|
|
|
|
||||||
Federal Home Loan Bank (“FHLB”) advances
|
150
|
|
|
150
|
|
|
0.8
|
|
|
0.5
|
|
||
Repurchase agreements
|
50
|
|
|
50
|
|
|
0.9
|
|
|
0.5
|
|
||
Total short-term borrowings
|
200
|
|
|
200
|
|
|
|
|
|
|
|
||
Total
|
$
|
3,117
|
|
|
$
|
2,892
|
|
|
|
|
|
|
|
Level 1
|
Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date.
|
Level 2
|
Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities.
|
Level 3
|
Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.
|
|
December 31, 2016
|
|
||||||||||||||
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
(in millions)
|
||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash equivalents
|
$
|
30
|
|
|
$
|
1,796
|
|
|
$
|
—
|
|
|
$
|
1,826
|
|
|
Available-for-Sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate debt securities
|
—
|
|
|
14,925
|
|
|
1,311
|
|
|
16,236
|
|
|
||||
Residential mortgage backed securities
|
—
|
|
|
6,650
|
|
|
268
|
|
|
6,918
|
|
|
||||
Commercial mortgage backed securities
|
—
|
|
|
3,367
|
|
|
—
|
|
|
3,367
|
|
|
||||
Asset backed securities
|
—
|
|
|
1,481
|
|
|
68
|
|
|
1,549
|
|
|
||||
State and municipal obligations
|
—
|
|
|
2,358
|
|
|
—
|
|
|
2,358
|
|
|
||||
U.S. government and agencies obligations
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
||||
Foreign government bonds and obligations
|
—
|
|
|
261
|
|
|
—
|
|
|
261
|
|
|
||||
Common stocks
|
8
|
|
|
8
|
|
|
1
|
|
|
17
|
|
|
||||
Common stocks at NAV
|
|
|
|
|
|
|
5
|
|
(1)
|
|||||||
Total Available-for-Sale securities
|
16
|
|
|
29,050
|
|
|
1,648
|
|
|
30,719
|
|
|
||||
Trading securities
|
9
|
|
|
16
|
|
|
—
|
|
|
25
|
|
|
||||
Separate account assets at NAV
|
|
|
|
|
|
|
80,210
|
|
(1)
|
|||||||
Investments segregated for regulatory purposes
|
425
|
|
|
—
|
|
|
—
|
|
|
425
|
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest rate derivative contracts
|
—
|
|
|
1,775
|
|
|
—
|
|
|
1,775
|
|
|
||||
Equity derivative contracts
|
42
|
|
|
1,526
|
|
|
—
|
|
|
1,568
|
|
|
||||
Credit derivative contracts
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
||||
Foreign exchange derivative contracts
|
13
|
|
|
80
|
|
|
—
|
|
|
93
|
|
|
||||
Other derivative contracts
|
1
|
|
|
8
|
|
|
—
|
|
|
9
|
|
|
||||
Total other assets
|
56
|
|
|
3,390
|
|
|
—
|
|
|
3,446
|
|
|
||||
Total assets at fair value
|
$
|
536
|
|
|
$
|
34,252
|
|
|
$
|
1,648
|
|
|
$
|
116,651
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Policyholder account balances, future policy benefits and claims:
|
|
|
|
|
|
|
|
|
|
|
|
|||||
EIA embedded derivatives
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
IUL embedded derivatives
|
—
|
|
|
—
|
|
|
464
|
|
|
464
|
|
|
||||
GMWB and GMAB embedded derivatives
|
—
|
|
|
—
|
|
|
614
|
|
|
614
|
|
(2)
|
||||
Total policyholder account balances, future policy benefits and claims
|
—
|
|
|
5
|
|
|
1,078
|
|
|
1,083
|
|
(3)
|
||||
Customer deposits
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
|
||||
Other liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest rate derivative contracts
|
2
|
|
|
977
|
|
|
—
|
|
|
979
|
|
|
||||
Equity derivative contracts
|
3
|
|
|
2,024
|
|
|
—
|
|
|
2,027
|
|
|
||||
Foreign exchange derivative contracts
|
2
|
|
|
45
|
|
|
—
|
|
|
47
|
|
|
||||
Other derivative contracts
|
—
|
|
|
118
|
|
|
—
|
|
|
118
|
|
|
||||
Other
|
3
|
|
|
8
|
|
|
13
|
|
|
24
|
|
|
||||
Total other liabilities
|
10
|
|
|
3,172
|
|
|
13
|
|
|
3,195
|
|
|
||||
Total liabilities at fair value
|
$
|
10
|
|
|
$
|
3,185
|
|
|
$
|
1,091
|
|
|
$
|
4,286
|
|
|
|
December 31, 2015
|
|
||||||||||||||
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
(in millions)
|
||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash equivalents
|
$
|
80
|
|
|
$
|
1,918
|
|
|
$
|
—
|
|
|
$
|
1,998
|
|
|
Available-for-Sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate debt securities
|
—
|
|
|
14,923
|
|
|
1,425
|
|
|
16,348
|
|
|
||||
Residential mortgage backed securities
|
—
|
|
|
5,755
|
|
|
218
|
|
|
5,973
|
|
|
||||
Commercial mortgage backed securities
|
—
|
|
|
2,453
|
|
|
3
|
|
|
2,456
|
|
|
||||
Asset backed securities
|
—
|
|
|
1,134
|
|
|
162
|
|
|
1,296
|
|
|
||||
State and municipal obligations
|
—
|
|
|
2,290
|
|
|
—
|
|
|
2,290
|
|
|
||||
U.S. government and agencies obligations
|
33
|
|
|
35
|
|
|
—
|
|
|
68
|
|
|
||||
Foreign government bonds and obligations
|
—
|
|
|
224
|
|
|
—
|
|
|
224
|
|
|
||||
Common stocks
|
5
|
|
|
8
|
|
|
—
|
|
|
13
|
|
|
||||
Common stocks at NAV
|
|
|
|
|
|
|
5
|
|
(1)
|
|||||||
Total Available-for-Sale securities
|
38
|
|
|
26,822
|
|
|
1,808
|
|
|
28,673
|
|
|
||||
Trading securities
|
6
|
|
|
18
|
|
|
—
|
|
|
24
|
|
|
||||
Separate account assets at NAV
|
|
|
|
|
|
|
80,349
|
|
(1)
|
|||||||
Investments segregated for regulatory purposes
|
401
|
|
|
—
|
|
|
—
|
|
|
401
|
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest rate derivative contracts
|
—
|
|
|
1,940
|
|
|
—
|
|
|
1,940
|
|
|
||||
Equity derivative contracts
|
92
|
|
|
1,495
|
|
|
—
|
|
|
1,587
|
|
|
||||
Credit derivative contracts
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
||||
Foreign exchange derivative contracts
|
2
|
|
|
54
|
|
|
—
|
|
|
56
|
|
|
||||
Other derivative contracts
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
||||
Total other assets
|
94
|
|
|
3,493
|
|
|
—
|
|
|
3,587
|
|
|
||||
Total assets at fair value
|
$
|
619
|
|
|
$
|
32,251
|
|
|
$
|
1,808
|
|
|
$
|
115,032
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Policyholder account balances, future policy benefits and claims:
|
|
|
|
|
|
|
|
|
||||||||
EIA embedded derivatives
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
IUL embedded derivatives
|
—
|
|
|
—
|
|
|
364
|
|
|
364
|
|
|
||||
GMWB and GMAB embedded derivatives
|
—
|
|
|
—
|
|
|
851
|
|
|
851
|
|
(4)
|
||||
Total policyholder account balances, future policy benefits and claims
|
—
|
|
|
5
|
|
|
1,215
|
|
|
1,220
|
|
(5)
|
||||
Customer deposits
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
||||
Other liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate derivative contracts
|
—
|
|
|
969
|
|
|
—
|
|
|
969
|
|
|
||||
Equity derivative contracts
|
47
|
|
|
1,946
|
|
|
—
|
|
|
1,993
|
|
|
||||
Foreign exchange derivative contracts
|
2
|
|
|
16
|
|
|
—
|
|
|
18
|
|
|
||||
Other derivative contracts
|
—
|
|
|
96
|
|
|
—
|
|
|
96
|
|
|
||||
Other
|
1
|
|
|
12
|
|
|
—
|
|
|
13
|
|
|
||||
Total other liabilities
|
50
|
|
|
3,039
|
|
|
—
|
|
|
3,089
|
|
|
||||
Total liabilities at fair value
|
$
|
50
|
|
|
$
|
3,048
|
|
|
$
|
1,215
|
|
|
$
|
4,313
|
|
|
|
Available-for-Sale Securities
|
|
Other Derivative Contracts
|
|
||||||||||||||||||||||||
Corporate Debt Securities
|
|
Residential Mortgage Backed Securities
|
|
Commercial Mortgage Backed Securities
|
|
Asset Backed Securities
|
|
Common Stocks
|
|
Total
|
||||||||||||||||||
(in millions)
|
||||||||||||||||||||||||||||
Balance, January 1, 2016
|
$
|
1,425
|
|
|
$
|
218
|
|
|
$
|
3
|
|
|
$
|
162
|
|
|
$
|
—
|
|
|
$
|
1,808
|
|
|
$
|
—
|
|
|
Cumulative effect of change in accounting policies
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
|||||||
Total gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income
|
(1
|
)
|
|
1
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
(1)
|
(2
|
)
|
(3)
|
|||||||
Other comprehensive income
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
|||||||
Purchases
|
54
|
|
|
209
|
|
|
42
|
|
|
58
|
|
|
—
|
|
|
363
|
|
|
2
|
|
|
|||||||
Settlements
|
(168
|
)
|
|
(67
|
)
|
|
(3
|
)
|
|
(2
|
)
|
|
—
|
|
|
(240
|
)
|
|
—
|
|
|
|||||||
Transfers into Level 3
|
1
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
1
|
|
|
14
|
|
|
—
|
|
|
|||||||
Transfers out of Level 3
|
—
|
|
|
(92
|
)
|
|
(42
|
)
|
|
(178
|
)
|
|
—
|
|
|
(312
|
)
|
|
—
|
|
|
|||||||
Balance, December 31, 2016
|
$
|
1,311
|
|
|
$
|
268
|
|
|
$
|
—
|
|
|
$
|
68
|
|
|
$
|
1
|
|
|
$
|
1,648
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Changes in unrealized gains (losses) relating to assets held at December 31, 2016
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
1
|
|
(1)
|
$
|
(2
|
)
|
(3)
|
|
Available-for-Sale Securities
|
|
Trading Securities
|
|
||||||||||||||||||||||||
Corporate Debt Securities
|
|
Residential Mortgage Backed Securities
|
|
Commercial Mortgage Backed Securities
|
|
Asset Backed Securities
|
|
Common Stocks
|
|
Total
|
||||||||||||||||||
(in millions)
|
|
|||||||||||||||||||||||||||
Balance, January 1, 2015
|
$
|
1,518
|
|
|
$
|
206
|
|
|
$
|
91
|
|
|
$
|
169
|
|
|
$
|
2
|
|
|
$
|
1,986
|
|
|
$
|
1
|
|
|
Total gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(1
|
)
|
(1)
|
(1
|
)
|
(1)
|
|||||||
Other comprehensive loss
|
(21
|
)
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
|||||||
Purchases
|
189
|
|
|
334
|
|
|
41
|
|
|
72
|
|
|
—
|
|
|
636
|
|
|
—
|
|
|
|||||||
Settlements
|
(248
|
)
|
|
(55
|
)
|
|
(7
|
)
|
|
(22
|
)
|
|
—
|
|
|
(332
|
)
|
|
—
|
|
|
|||||||
Transfers into Level 3
|
—
|
|
|
—
|
|
|
6
|
|
|
14
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
|||||||
Transfers out of Level 3
|
(11
|
)
|
|
(265
|
)
|
|
(128
|
)
|
|
(70
|
)
|
|
(2
|
)
|
|
(476
|
)
|
|
—
|
|
|
|||||||
Balance, December 31, 2015
|
$
|
1,425
|
|
|
$
|
218
|
|
|
$
|
3
|
|
|
$
|
162
|
|
|
$
|
—
|
|
|
$
|
1,808
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Changes in unrealized gains (losses) relating to assets held at December 31, 2015
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
(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
|
|||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||
Balance, January 1, 2014
|
$
|
1,640
|
|
|
$
|
187
|
|
|
$
|
30
|
|
|
$
|
260
|
|
|
$
|
—
|
|
|
$
|
2,117
|
|
|
$
|
2
|
|
Total gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income
|
(1
|
)
|
|
(1
|
)
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
(1)
|
—
|
|
|||||||
Other comprehensive income
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
2
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|||||||
Purchases
|
213
|
|
|
399
|
|
|
59
|
|
|
32
|
|
|
1
|
|
|
704
|
|
|
1
|
|
|||||||
Sales
|
(18
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
|
(2
|
)
|
|||||||
Settlements
|
(306
|
)
|
|
(24
|
)
|
|
(1
|
)
|
|
(11
|
)
|
|
—
|
|
|
(342
|
)
|
|
—
|
|
|||||||
Transfers into Level 3
|
—
|
|
|
—
|
|
|
78
|
|
|
—
|
|
|
2
|
|
|
80
|
|
|
—
|
|
|||||||
Transfers out of Level 3
|
(8
|
)
|
|
(355
|
)
|
|
(74
|
)
|
|
(115
|
)
|
|
(1
|
)
|
|
(553
|
)
|
|
—
|
|
|||||||
Balance, December 31, 2014
|
$
|
1,518
|
|
|
$
|
206
|
|
|
$
|
91
|
|
|
$
|
169
|
|
|
$
|
2
|
|
|
$
|
1,986
|
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Changes in unrealized gains (losses) relating to assets held at December 31, 2014
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
1
|
|
(1)
|
$
|
—
|
|
|
December 31, 2016
|
||||||||||||||
Fair Value
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range
|
|
Weighted
Average
|
|||||||
(in millions)
|
|
||||||||||||||
Corporate debt securities (private placements)
|
$
|
1,308
|
|
Discounted cash flow
|
Yield/spread to U.S. Treasuries
|
0.9
|
%
|
–
|
2.5%
|
1.3
|
%
|
||||
Asset backed securities
|
$
|
14
|
|
Discounted cash flow
|
Annual short-term default rate
|
4.8%
|
|
||||||||
|
|
|
Annual long-term default rate
|
2.5%
|
|
||||||||||
|
|
|
Discount rate
|
13.5%
|
|
||||||||||
|
|
|
Constant prepayment rate
|
5.0
|
%
|
–
|
10.0%
|
9.9
|
%
|
||||||
|
|
|
Loss recovery
|
36.4
|
%
|
–
|
63.6%
|
62.8
|
%
|
||||||
IUL embedded derivatives
|
$
|
464
|
|
Discounted cash flow
|
Nonperformance risk
(1)
|
82 bps
|
|
||||||||
GMWB and GMAB embedded derivatives
|
$
|
614
|
|
Discounted cash flow
|
Utilization of guaranteed withdrawals
(2)
|
0.0
|
%
|
–
|
75.6%
|
|
|||||
|
|
|
|
Surrender rate
|
0.1
|
%
|
–
|
66.4%
|
|
||||||
|
|
|
|
Market volatility
(3)
|
5.3
|
%
|
–
|
21.2%
|
|
||||||
|
|
|
|
Nonperformance risk
(1)
|
82 bps
|
|
|||||||||
Contingent consideration liability
|
$
|
13
|
|
Discounted cash flow
|
Discount rate
|
9.0%
|
|
|
December 31, 2015
|
|||||||||||||
Fair Value
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range
|
|
Weighted
Average
|
||||||
(in millions)
|
|
|||||||||||||
Corporate debt securities (private placements)
|
$
|
1,411
|
|
Discounted cash flow
|
Yield/spread to U.S. Treasuries
|
1.1
|
%
|
–
|
3.8%
|
1.6%
|
||||
IUL embedded derivatives
|
$
|
364
|
|
Discounted cash flow
|
Nonperformance risk
(1)
|
68 bps
|
|
|||||||
GMWB and GMAB embedded derivatives
|
$
|
851
|
|
Discounted cash flow
|
Utilization of guaranteed withdrawals
(2)
|
0.0
|
%
|
–
|
75.6%
|
|
||||
|
|
|
|
Surrender rate
|
0.0
|
%
|
–
|
59.1%
|
|
|||||
|
|
|
|
Market volatility
(3)
|
5.4
|
%
|
–
|
21.5%
|
|
|||||
|
|
|
|
Nonperformance risk
(1)
|
68 bps
|
|
|
December 31, 2016
|
|
||||||||||||||||||
Carrying Value
|
|
Fair Value
|
||||||||||||||||||
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||
(in millions)
|
||||||||||||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage loans, net
|
$
|
2,986
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,972
|
|
|
$
|
2,972
|
|
|
Policy and certificate loans
|
831
|
|
|
—
|
|
|
1
|
|
|
807
|
|
|
808
|
|
|
|||||
Receivables
|
1,396
|
|
|
127
|
|
|
1,270
|
|
|
3
|
|
|
1,400
|
|
|
|||||
Restricted and segregated cash
|
2,905
|
|
|
2,905
|
|
|
—
|
|
|
—
|
|
|
2,905
|
|
|
|||||
Other investments and assets
|
508
|
|
|
—
|
|
|
449
|
|
|
61
|
|
|
510
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholder account balances, future policy benefits and claims
|
$
|
10,906
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,417
|
|
|
$
|
11,417
|
|
|
Investment certificate reserves
|
5,927
|
|
|
—
|
|
|
—
|
|
|
5,914
|
|
|
5,914
|
|
|
|||||
Brokerage customer deposits
|
4,112
|
|
|
4,112
|
|
|
—
|
|
|
—
|
|
|
4,112
|
|
|
|||||
Separate account liabilities at NAV
|
4,253
|
|
|
|
|
|
|
|
|
4,253
|
|
(1)
|
||||||||
Debt and other liabilities
|
3,371
|
|
|
146
|
|
|
3,176
|
|
|
169
|
|
|
3,491
|
|
|
|
December 31, 2015
|
|
||||||||||||||||||
Carrying Value
|
|
Fair Value
|
||||||||||||||||||
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||
(in millions)
|
||||||||||||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage loans, net
|
$
|
3,359
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,372
|
|
|
$
|
3,372
|
|
|
Policy and certificate loans
|
824
|
|
|
—
|
|
|
1
|
|
|
803
|
|
|
804
|
|
|
|||||
Receivables
|
1,471
|
|
|
148
|
|
|
1,322
|
|
|
3
|
|
|
1,473
|
|
|
|||||
Restricted and segregated cash
|
2,548
|
|
|
2,548
|
|
|
—
|
|
|
—
|
|
|
2,548
|
|
|
|||||
Other investments and assets
|
583
|
|
|
1
|
|
|
510
|
|
|
54
|
|
|
565
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholder account balances, future policy benefits and claims
|
$
|
11,523
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,424
|
|
|
$
|
12,424
|
|
|
Investment certificate reserves
|
4,831
|
|
|
—
|
|
|
—
|
|
|
4,823
|
|
|
4,823
|
|
|
|||||
Brokerage customer deposits
|
3,802
|
|
|
3,802
|
|
|
—
|
|
|
—
|
|
|
3,802
|
|
|
|||||
Separate account liabilities at NAV
|
4,704
|
|
|
|
|
|
|
|
|
4,704
|
|
(1)
|
||||||||
Debt and other liabilities
|
3,173
|
|
|
202
|
|
|
2,958
|
|
|
113
|
|
|
3,273
|
|
|
|
December 31, 2016
|
||||||||||||||||||||||||||
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
|
|
Net Amount
|
|||||||||||||||||||
Financial Instruments
(1)
|
|
Cash Collateral
|
|
Securities Collateral
|
|||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
OTC
|
$
|
2,920
|
|
|
$
|
—
|
|
|
$
|
2,920
|
|
|
$
|
(2,214
|
)
|
|
$
|
(406
|
)
|
|
$
|
(235
|
)
|
|
$
|
65
|
|
OTC cleared
|
512
|
|
|
—
|
|
|
512
|
|
|
(509
|
)
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|||||||
Exchange-traded
|
14
|
|
|
—
|
|
|
14
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
12
|
|
|||||||
Total derivatives
|
3,446
|
|
|
—
|
|
|
3,446
|
|
|
(2,725
|
)
|
|
(409
|
)
|
|
(235
|
)
|
|
77
|
|
|||||||
Securities borrowed
|
127
|
|
|
—
|
|
|
127
|
|
|
(16
|
)
|
|
—
|
|
|
(108
|
)
|
|
3
|
|
|||||||
Total
|
$
|
3,573
|
|
|
$
|
—
|
|
|
$
|
3,573
|
|
|
$
|
(2,741
|
)
|
|
$
|
(409
|
)
|
|
$
|
(343
|
)
|
|
$
|
80
|
|
|
December 31, 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
|
|
Net Amount
|
|||||||||||||||||||
Financial Instruments
(1)
|
|
Cash Collateral
|
|
Securities Collateral
|
|||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
OTC
|
$
|
3,129
|
|
|
$
|
—
|
|
|
$
|
3,129
|
|
|
$
|
(2,331
|
)
|
|
$
|
(391
|
)
|
|
$
|
(320
|
)
|
|
$
|
87
|
|
OTC cleared
|
418
|
|
|
—
|
|
|
418
|
|
|
(314
|
)
|
|
(102
|
)
|
|
—
|
|
|
2
|
|
|||||||
Exchange-traded
|
40
|
|
|
—
|
|
|
40
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
37
|
|
|||||||
Total derivatives
|
3,587
|
|
|
—
|
|
|
3,587
|
|
|
(2,648
|
)
|
|
(493
|
)
|
|
(320
|
)
|
|
126
|
|
|||||||
Securities borrowed
|
148
|
|
|
—
|
|
|
148
|
|
|
(30
|
)
|
|
—
|
|
|
(115
|
)
|
|
3
|
|
|||||||
Total
|
$
|
3,735
|
|
|
$
|
—
|
|
|
$
|
3,735
|
|
|
$
|
(2,678
|
)
|
|
$
|
(493
|
)
|
|
$
|
(435
|
)
|
|
$
|
129
|
|
|
December 31, 2015
|
||||||||||||||||||||||||||
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
|
|
Net Amount
|
|||||||||||||||||||
Financial Instruments
(1)
|
|
Cash Collateral
|
|
Securities Collateral
|
|||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
OTC
|
$
|
2,725
|
|
|
$
|
—
|
|
|
$
|
2,725
|
|
|
$
|
(2,331
|
)
|
|
$
|
—
|
|
|
$
|
(393
|
)
|
|
$
|
1
|
|
OTC cleared
|
345
|
|
|
—
|
|
|
345
|
|
|
(314
|
)
|
|
(25
|
)
|
|
—
|
|
|
6
|
|
|||||||
Exchange-traded
|
6
|
|
|
—
|
|
|
6
|
|
|
(3
|
)
|
|
(1
|
)
|
|
—
|
|
|
2
|
|
|||||||
Total derivatives
|
3,076
|
|
|
—
|
|
|
3,076
|
|
|
(2,648
|
)
|
|
(26
|
)
|
|
(393
|
)
|
|
9
|
|
|||||||
Securities loaned
|
203
|
|
|
—
|
|
|
203
|
|
|
(30
|
)
|
|
—
|
|
|
(164
|
)
|
|
9
|
|
|||||||
Repurchase agreements
|
50
|
|
|
—
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
—
|
|
|||||||
Total
|
$
|
3,329
|
|
|
$
|
—
|
|
|
$
|
3,329
|
|
|
$
|
(2,678
|
)
|
|
$
|
(26
|
)
|
|
$
|
(607
|
)
|
|
$
|
18
|
|
(4)
|
The fair value of the GMWB and GMAB embedded derivatives at
December 31, 2016
included
$880 million
of individual contracts in a liability position and
$266 million
of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives at
December 31, 2015
included
$994 million
of individual contracts in a liability position and
$143 million
of individual contracts in an asset position.
|
|
Net Investment Income
|
|
Banking and Deposit Interest Expense
|
|
Distribution Expenses
|
|
Interest Credited to Fixed Accounts
|
|
Benefits, Claims, Losses and Settlement Expenses
|
|
General and Administrative Expense
|
||||||||||||
(in millions)
|
|||||||||||||||||||||||
Year Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
38
|
|
|
$
|
—
|
|
Equity contracts
|
(1
|
)
|
|
2
|
|
|
23
|
|
|
20
|
|
|
(836
|
)
|
|
6
|
|
||||||
Credit contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||||
Foreign exchange contracts
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
14
|
|
||||||
Other contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(65
|
)
|
|
—
|
|
||||||
GMWB and GMAB embedded derivatives
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
237
|
|
|
—
|
|
||||||
IUL embedded derivatives
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
||||||
SMC embedded derivatives
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total gain (loss)
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
$
|
35
|
|
|
$
|
(624
|
)
|
|
$
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Year Ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
$
|
(21
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
241
|
|
|
$
|
—
|
|
Equity contracts
|
—
|
|
|
—
|
|
|
1
|
|
|
(10
|
)
|
|
(304
|
)
|
|
2
|
|
||||||
Credit contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||||
Foreign exchange contracts
|
4
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
13
|
|
|
(2
|
)
|
||||||
Other contracts
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
||||||
GMWB and GMAB embedded derivatives
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(372
|
)
|
|
—
|
|
||||||
IUL embedded derivatives
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
||||||
EIA embedded derivatives
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||
Total loss
|
$
|
(16
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(17
|
)
|
|
$
|
(450
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Year Ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,122
|
|
|
$
|
—
|
|
Equity contracts
|
(4
|
)
|
|
3
|
|
|
13
|
|
|
21
|
|
|
(304
|
)
|
|
4
|
|
||||||
Credit contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|
—
|
|
||||||
Foreign exchange contracts
|
2
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(9
|
)
|
|
(1
|
)
|
||||||
Other contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
||||||
GMWB and GMAB embedded derivatives
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,054
|
)
|
|
—
|
|
||||||
IUL embedded derivatives
|
—
|
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
—
|
|
||||||
EIA embedded derivatives
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
||||||
SMC embedded derivatives
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total gain (loss)
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
(8
|
)
|
|
$
|
(290
|
)
|
|
$
|
3
|
|
|
Premiums Payable
|
|
Premiums Receivable
|
||||
|
(in millions)
|
||||||
2017
|
$
|
270
|
|
|
$
|
77
|
|
2018
|
227
|
|
|
130
|
|
||
2019
|
273
|
|
|
171
|
|
||
2020
|
195
|
|
|
99
|
|
||
2021
|
186
|
|
|
107
|
|
||
2022-2027
|
639
|
|
|
133
|
|
||
Total
|
$
|
1,790
|
|
|
$
|
717
|
|
Derivatives designated as hedging instruments
|
Location of Gain Recorded into Income
|
Amount of Gain Recognized in Income on Derivatives
|
||||||||||||
Years Ended December 31,
|
||||||||||||||
2016
|
|
2015
|
|
2014
|
||||||||||
|
(in millions)
|
|||||||||||||
Interest rate contracts
|
Interest and debt expense
|
$
|
19
|
|
|
$
|
31
|
|
|
$
|
33
|
|
|
December 31,
|
||||||||||
2016
|
|
2015
|
|
2014
|
|||||||
(in millions)
|
|||||||||||
Stock option
|
$
|
34
|
|
|
$
|
39
|
|
|
$
|
37
|
|
Restricted stock
|
24
|
|
|
22
|
|
|
26
|
|
|||
Restricted stock units
|
76
|
|
|
83
|
|
|
67
|
|
|||
Liability awards
|
4
|
|
|
14
|
|
|
30
|
|
|||
Total
|
$
|
138
|
|
|
$
|
158
|
|
|
$
|
160
|
|
|
Shares
|
|
Weighted Average Exercise Price
|
|
Weighted Average Remaining Contractual
Term (Years)
|
|
Aggregate Intrinsic Value
|
|||||
Outstanding at January 1
|
7.3
|
|
|
$
|
81.11
|
|
|
6.7
|
|
$
|
222
|
|
Granted
|
2.0
|
|
|
87.90
|
|
|
|
|
|
|||
Exercised
|
(0.8
|
)
|
|
55.24
|
|
|
|
|
|
|||
Forfeited
|
(0.3
|
)
|
|
98.63
|
|
|
|
|
|
|||
Outstanding at December 31
|
8.2
|
|
|
84.85
|
|
|
6.7
|
|
241
|
|
||
Exercisable at December 31
|
4.8
|
|
|
72.40
|
|
|
5.4
|
|
196
|
|
|
Shares
|
|
Weighted Average Grant-date Fair Value
|
|||
Non-vested shares at January 1
|
1.3
|
|
|
$
|
103.01
|
|
Granted
|
0.9
|
|
|
89.07
|
|
|
Deferred
|
0.3
|
|
|
96.22
|
|
|
Vested
|
(1.1
|
)
|
|
94.15
|
|
|
Forfeited
|
(0.1
|
)
|
|
101.96
|
|
|
Non-vested shares at December 31
|
1.3
|
|
|
99.37
|
|
|
Year Ended December 31, 2016
|
||||||||||
Pretax
|
|
Income Tax Benefit (Expense)
|
|
Net of Tax
|
|||||||
(in millions)
|
|||||||||||
Net unrealized securities gains:
|
|
|
|
|
|
||||||
Net unrealized securities gains arising during the period
(1)
|
$
|
339
|
|
|
$
|
(121
|
)
|
|
$
|
218
|
|
Reclassification of net securities gains included in net income
(2)
|
(22
|
)
|
|
8
|
|
|
(14
|
)
|
|||
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables
|
(242
|
)
|
|
85
|
|
|
(157
|
)
|
|||
Net unrealized securities gains
|
75
|
|
|
(28
|
)
|
|
47
|
|
|||
Net unrealized derivatives gains:
|
|
|
|
|
|
||||||
Reclassification of net derivative losses included in net income
(3)
|
6
|
|
|
(2
|
)
|
|
4
|
|
|||
Net unrealized derivatives gains
|
6
|
|
|
(2
|
)
|
|
4
|
|
|||
Defined benefit plans:
|
|
|
|
|
|
||||||
Net loss arising during the period
|
(45
|
)
|
|
11
|
|
|
(34
|
)
|
|||
Defined benefit plans
|
(45
|
)
|
|
11
|
|
|
(34
|
)
|
|||
Foreign currency translation
|
(117
|
)
|
|
41
|
|
|
(76
|
)
|
|||
Other comprehensive income attributable to Ameriprise Financial
|
(81
|
)
|
|
22
|
|
|
(59
|
)
|
|||
Other comprehensive loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total other comprehensive income
|
$
|
(81
|
)
|
|
$
|
22
|
|
|
$
|
(59
|
)
|
|
Year Ended December 31, 2015
|
||||||||||
Pretax
|
|
Income Tax Benefit (Expense)
|
|
Net of Tax
|
|||||||
(in millions)
|
|||||||||||
Net unrealized securities losses:
|
|
|
|
|
|
||||||
Net unrealized securities losses arising during the period
(1)
|
$
|
(1,027
|
)
|
|
$
|
359
|
|
|
$
|
(668
|
)
|
Reclassification of net securities gains included in net income
(2)
|
(6
|
)
|
|
2
|
|
|
(4
|
)
|
|||
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables
|
480
|
|
|
(168
|
)
|
|
312
|
|
|||
Net unrealized securities losses
|
(553
|
)
|
|
193
|
|
|
(360
|
)
|
|||
Net unrealized derivatives gains:
|
|
|
|
|
|
||||||
Reclassification of net derivative losses included in net income
(3)
|
1
|
|
|
—
|
|
|
1
|
|
|||
Net unrealized derivatives gains
|
1
|
|
|
—
|
|
|
1
|
|
|||
Defined benefit plans:
|
|
|
|
|
|
||||||
Prior service credit
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||
Net loss arising during the period
|
(24
|
)
|
|
6
|
|
|
(18
|
)
|
|||
Defined benefit plans
|
(26
|
)
|
|
6
|
|
|
(20
|
)
|
|||
Foreign currency translation
|
(46
|
)
|
|
16
|
|
|
(30
|
)
|
|||
Other comprehensive loss attributable to Ameriprise Financial
|
(624
|
)
|
|
215
|
|
|
(409
|
)
|
|||
Other comprehensive loss attributable to noncontrolling interests
|
(60
|
)
|
|
—
|
|
|
(60
|
)
|
|||
Total other comprehensive loss
|
$
|
(684
|
)
|
|
$
|
215
|
|
|
$
|
(469
|
)
|
|
Year Ended December 31, 2014
|
||||||||||
Pretax
|
|
Income Tax Benefit (Expense)
|
|
Net of Tax
|
|||||||
(in millions)
|
|||||||||||
Net unrealized securities gains:
|
|
|
|
|
|
||||||
Net unrealized securities gains arising during the period
(1)
|
$
|
529
|
|
|
$
|
(184
|
)
|
|
$
|
345
|
|
Reclassification of net securities gains included in net income
(2)
|
(39
|
)
|
|
14
|
|
|
(25
|
)
|
|||
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables
|
(290
|
)
|
|
101
|
|
|
(189
|
)
|
|||
Net unrealized securities gains
|
200
|
|
|
(69
|
)
|
|
131
|
|
|||
Net unrealized derivatives gains:
|
|
|
|
|
|
||||||
Reclassification of net derivative losses included in net income
(3)
|
1
|
|
|
—
|
|
|
1
|
|
|||
Net unrealized derivatives gains
|
1
|
|
|
—
|
|
|
1
|
|
|||
Defined benefit plans:
|
|
|
|
|
|
||||||
Prior service credit
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Net loss arising during the period
|
(37
|
)
|
|
13
|
|
|
(24
|
)
|
|||
Defined benefit plans
|
(38
|
)
|
|
13
|
|
|
(25
|
)
|
|||
Foreign currency translation
|
(62
|
)
|
|
22
|
|
|
(40
|
)
|
|||
Other comprehensive income attributable to Ameriprise Financial
|
101
|
|
|
(34
|
)
|
|
67
|
|
|||
Other comprehensive loss attributable to noncontrolling interests
|
(63
|
)
|
|
—
|
|
|
(63
|
)
|
|||
Total other comprehensive income
|
$
|
38
|
|
|
$
|
(34
|
)
|
|
$
|
4
|
|
|
Net Unrealized Securities Gains
|
|
Net Unrealized Derivatives Losses
|
|
Defined Benefit Plans
|
|
Foreign Currency Translation
|
|
Total
|
||||||||||
(in millions)
|
|||||||||||||||||||
Balance, January 1, 2014
|
$
|
655
|
|
|
$
|
(1
|
)
|
|
$
|
(46
|
)
|
|
$
|
(13
|
)
|
|
$
|
595
|
|
OCI before reclassifications
|
156
|
|
|
—
|
|
|
(30
|
)
|
|
(40
|
)
|
|
86
|
|
|||||
Amounts reclassified from AOCI
|
(25
|
)
|
|
1
|
|
|
5
|
|
|
—
|
|
|
(19
|
)
|
|||||
OCI attributable to Ameriprise Financial
|
131
|
|
|
1
|
|
|
(25
|
)
|
|
(40
|
)
|
|
67
|
|
|||||
Balance, December 31, 2014
|
786
|
|
(1)
|
—
|
|
|
(71
|
)
|
|
(53
|
)
|
|
662
|
|
|||||
OCI before reclassifications
|
(356
|
)
|
|
—
|
|
|
(25
|
)
|
|
(30
|
)
|
|
(411
|
)
|
|||||
Amounts reclassified from AOCI
|
(4
|
)
|
|
1
|
|
|
5
|
|
|
—
|
|
|
2
|
|
|||||
OCI attributable to Ameriprise Financial
|
(360
|
)
|
|
1
|
|
|
(20
|
)
|
|
(30
|
)
|
|
(409
|
)
|
|||||
Balance, December 31, 2015
|
426
|
|
(1)
|
1
|
|
|
(91
|
)
|
|
(83
|
)
|
|
253
|
|
|||||
Cumulative effect of change in accounting policies
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
OCI before reclassifications
|
61
|
|
|
—
|
|
|
(39
|
)
|
|
(76
|
)
|
|
(54
|
)
|
|||||
Amounts reclassified from AOCI
|
(14
|
)
|
|
4
|
|
|
5
|
|
|
—
|
|
|
(5
|
)
|
|||||
OCI attributable to Ameriprise Financial
|
47
|
|
|
4
|
|
|
(34
|
)
|
|
(76
|
)
|
|
(59
|
)
|
|||||
Balance, December 31, 2016
|
$
|
479
|
|
(1)
|
$
|
5
|
|
|
$
|
(125
|
)
|
|
$
|
(159
|
)
|
|
$
|
200
|
|
|
Years Ended December 31,
|
||||||||||
2016
|
|
2015
|
|
2014
|
|||||||
(in millions, except per share amounts)
|
|||||||||||
Numerator:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
1,314
|
|
|
$
|
1,687
|
|
|
$
|
2,002
|
|
Less: Net income attributable to noncontrolling interests
|
—
|
|
|
125
|
|
|
381
|
|
|||
Income from continuing operations attributable to Ameriprise Financial
|
1,314
|
|
|
1,562
|
|
|
1,621
|
|
|||
Loss from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||
Net income attributable to Ameriprise Financial
|
$
|
1,314
|
|
|
$
|
1,562
|
|
|
$
|
1,619
|
|
|
|
|
|
|
|
||||||
Denominator:
|
|
|
|
|
|
||||||
Basic: Weighted-average common shares outstanding
|
166.3
|
|
|
181.7
|
|
|
191.6
|
|
|||
Effect of potentially dilutive nonqualified stock options and other share-based awards
|
1.9
|
|
|
2.5
|
|
|
3.4
|
|
|||
Diluted: Weighted-average common shares outstanding
|
168.2
|
|
|
184.2
|
|
|
195.0
|
|
|||
|
|
|
|
|
|
||||||
Earnings per share attributable to Ameriprise Financial, Inc. common shareholders:
|
|
|
|
|
|
||||||
Basic:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
7.90
|
|
|
$
|
8.60
|
|
|
$
|
8.46
|
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|||
Net income
|
$
|
7.90
|
|
|
$
|
8.60
|
|
|
$
|
8.45
|
|
Diluted:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
7.81
|
|
|
$
|
8.48
|
|
|
$
|
8.31
|
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|||
Net income
|
$
|
7.81
|
|
|
$
|
8.48
|
|
|
$
|
8.30
|
|
|
Years Ended December 31,
|
||||||||||
2016
|
|
2015
|
|
2014
|
|||||||
(in millions)
|
|||||||||||
RiverSource Life
|
|
|
|
|
|
||||||
Statutory net gain from operations
(1)
|
$
|
834
|
|
|
$
|
1,033
|
|
|
$
|
1,412
|
|
Statutory net income
(1)
|
322
|
|
|
633
|
|
|
1,154
|
|
|||
IDS Property Casualty
|
|
|
|
|
|
||||||
Statutory net income (loss)
|
(8
|
)
|
|
(44
|
)
|
|
(25
|
)
|
|
Years Ended December 31,
|
||||||||||
2016
|
|
2015
|
|
2014
|
|||||||
(in millions)
|
|||||||||||
Current income tax
|
|
|
|
|
|
||||||
Federal
|
$
|
245
|
|
|
$
|
509
|
|
|
$
|
248
|
|
State and local
|
44
|
|
|
36
|
|
|
33
|
|
|||
Foreign
|
23
|
|
|
41
|
|
|
36
|
|
|||
Total current income tax
|
312
|
|
|
586
|
|
|
317
|
|
|||
|
|
|
|
|
|
||||||
Deferred income tax
|
|
|
|
|
|
||||||
Federal
|
(36
|
)
|
|
(124
|
)
|
|
202
|
|
|||
State and local
|
3
|
|
|
(4
|
)
|
|
30
|
|
|||
Foreign
|
(1
|
)
|
|
(3
|
)
|
|
(4
|
)
|
|||
Total deferred income tax
|
(34
|
)
|
|
(131
|
)
|
|
228
|
|
|||
Total income tax provision
|
$
|
278
|
|
|
$
|
455
|
|
|
$
|
545
|
|
|
Years Ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
Tax at U.S. statutory rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
Changes in taxes resulting from:
|
|
|
|
|
|
|||
Net income attributable to noncontrolling interests
|
—
|
|
|
(2.0
|
)
|
|
(5.2
|
)
|
Dividends received deduction
|
(7.6
|
)
|
|
(6.7
|
)
|
|
(4.7
|
)
|
Low income housing tax credits
|
(4.2
|
)
|
|
(3.0
|
)
|
|
(2.1
|
)
|
Taxes applicable to prior years
|
(3.1
|
)
|
|
—
|
|
|
(0.2
|
)
|
Foreign taxes
|
(2.5
|
)
|
|
—
|
|
|
—
|
|
State taxes, net of federal benefit
|
1.9
|
|
|
—
|
|
|
1.6
|
|
Foreign tax credits, net of addback
|
(1.6
|
)
|
|
(2.1
|
)
|
|
(2.0
|
)
|
Tax-exempt interest income
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
Other, net
|
(0.5
|
)
|
|
0.1
|
|
|
(0.3
|
)
|
Income tax provision
|
17.4
|
%
|
|
21.3
|
%
|
|
21.4
|
%
|
|
December 31,
|
||||||
2016
|
|
2015
|
|||||
(in millions)
|
|||||||
Deferred income tax assets
|
|||||||
Liabilities for policyholder account balances, future policy benefits and claims
|
$
|
1,177
|
|
|
$
|
1,391
|
|
Deferred compensation
|
439
|
|
|
384
|
|
||
Investment related
|
253
|
|
|
118
|
|
||
Postretirement benefits
|
62
|
|
|
56
|
|
||
Currency translation adjustments
|
73
|
|
|
—
|
|
||
Other
|
68
|
|
|
87
|
|
||
Gross deferred income tax assets
|
2,072
|
|
|
2,036
|
|
||
Less: valuation allowance
|
11
|
|
|
11
|
|
||
Total deferred income tax assets
|
2,061
|
|
|
2,025
|
|
||
|
|||||||
Deferred income tax liabilities
|
|||||||
Deferred acquisition costs
|
717
|
|
|
730
|
|
||
Net unrealized gains on Available-for-Sale securities
|
264
|
|
|
233
|
|
||
Depreciation expense
|
146
|
|
|
169
|
|
||
Deferred sales inducement costs
|
113
|
|
|
125
|
|
||
Intangible assets
|
126
|
|
|
113
|
|
||
Goodwill
|
74
|
|
|
66
|
|
||
Other
|
2
|
|
|
18
|
|
||
Gross deferred income tax liabilities
|
1,442
|
|
|
1,454
|
|
||
Net deferred income tax assets
|
$
|
619
|
|
|
$
|
571
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
(in millions)
|
|||||||||||
Balance at January 1
|
$
|
161
|
|
|
$
|
242
|
|
|
$
|
209
|
|
Additions based on tax positions related to the current year
|
15
|
|
|
18
|
|
|
17
|
|
|||
Additions for tax positions of prior years
|
33
|
|
|
48
|
|
|
35
|
|
|||
Reductions for tax positions of prior years
|
(87
|
)
|
|
(147
|
)
|
|
(19
|
)
|
|||
Audit settlements
|
(7
|
)
|
|
—
|
|
|
—
|
|
|||
Balance at December 31
|
$
|
115
|
|
|
$
|
161
|
|
|
$
|
242
|
|
|
Years Ended December 31,
|
||||||||||
2016
|
|
2015
|
|
2014
|
|||||||
(in millions)
|
|||||||||||
Service cost
|
$
|
44
|
|
|
$
|
46
|
|
|
$
|
43
|
|
Interest cost
|
29
|
|
|
27
|
|
|
28
|
|
|||
Expected return on plan assets
|
(41
|
)
|
|
(40
|
)
|
|
(38
|
)
|
|||
Amortization of prior service costs
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|||
Amortization of net loss
|
6
|
|
|
9
|
|
|
7
|
|
|||
Other
|
4
|
|
|
4
|
|
|
3
|
|
|||
Net periodic benefit cost
|
$
|
41
|
|
|
$
|
45
|
|
|
$
|
42
|
|
|
Pension Plans
|
|
Other Postretirement Plans
|
||||||||||||
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||
(in millions)
|
|||||||||||||||
Benefit obligation, January 1
|
$
|
812
|
|
|
$
|
776
|
|
|
$
|
18
|
|
|
$
|
18
|
|
Service cost
|
44
|
|
|
46
|
|
|
—
|
|
|
—
|
|
||||
Interest cost
|
29
|
|
|
27
|
|
|
1
|
|
|
1
|
|
||||
Benefits paid
|
(8
|
)
|
|
(6
|
)
|
|
(4
|
)
|
|
(3
|
)
|
||||
Actuarial (gain) loss
|
65
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
||||
Plan change
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||
Participant contributions
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||
Settlements
|
(18
|
)
|
|
(20
|
)
|
|
—
|
|
|
—
|
|
||||
Foreign currency rate changes
|
(25
|
)
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
||||
Benefit obligation, December 31
|
$
|
899
|
|
|
$
|
812
|
|
|
$
|
15
|
|
|
$
|
18
|
|
|
Pension Plans
|
||||||
2016
|
|
2015
|
|||||
(in millions)
|
|||||||
Fair value of plan assets, January 1
|
$
|
608
|
|
|
$
|
612
|
|
Actual return on plan assets
|
62
|
|
|
(9
|
)
|
||
Employer contributions
|
13
|
|
|
40
|
|
||
Benefits paid
|
(8
|
)
|
|
(6
|
)
|
||
Settlements
|
(18
|
)
|
|
(20
|
)
|
||
Foreign currency rate changes
|
(29
|
)
|
|
(9
|
)
|
||
Fair value of plan assets, December 31
|
$
|
628
|
|
|
$
|
608
|
|
|
Pension Plans
|
|
Other Postretirement Plans
|
||||||||||||
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||
(in millions)
|
|||||||||||||||
Benefit liability
|
$
|
(271
|
)
|
|
$
|
(223
|
)
|
|
$
|
(15
|
)
|
|
$
|
(18
|
)
|
Benefit asset
|
—
|
|
|
19
|
|
|
—
|
|
|
—
|
|
||||
Net amount recognized
|
$
|
(271
|
)
|
|
$
|
(204
|
)
|
|
$
|
(15
|
)
|
|
$
|
(18
|
)
|
|
December 31,
|
||||||
2016
|
|
2015
|
|||||
(in millions)
|
|||||||
Pension plans with accumulated benefit obligations in excess of plan assets
|
|
|
|
||||
Accumulated benefit obligation
|
$
|
684
|
|
|
$
|
620
|
|
Fair value of plan assets
|
469
|
|
|
446
|
|
||
Pension plans with projected benefit obligations in excess of plan assets
|
|
|
|
||||
Projected benefit obligation
|
$
|
899
|
|
|
$
|
668
|
|
Fair value of plan assets
|
628
|
|
|
446
|
|
|
Pension Plans
|
|
Other Postretirement Plans
|
||||||||
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||
Discount rates
|
3.66
|
%
|
|
3.66
|
%
|
|
3.77
|
%
|
|
3.90
|
%
|
Rates of increase in compensation levels
|
4.39
|
|
|
4.36
|
|
|
N/A
|
|
|
N/A
|
|
Healthcare cost increase rates:
|
|
|
|
|
|
|
|
||||
Next year trend rate
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
5.75
|
|
Ultimate trend rate
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
5.00
|
|
Years to ultimate trend rate
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
3
|
|
Asset Category
|
December 31, 2016
|
|
|||||||||||||||
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
||||||||||
|
(in millions)
|
|
|||||||||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|||||||||
U.S. large cap stocks
|
$
|
73
|
|
|
$
|
76
|
|
|
$
|
—
|
|
|
$
|
149
|
|
|
|
U.S. small cap stocks
|
69
|
|
|
4
|
|
|
—
|
|
|
73
|
|
|
|||||
Non-U.S. large cap stocks
|
22
|
|
|
34
|
|
|
—
|
|
|
56
|
|
|
|||||
Non-U.S. small cap stocks
|
21
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
|||||
Emerging markets
|
14
|
|
|
23
|
|
|
—
|
|
|
37
|
|
|
|||||
Debt securities:
|
|
|
|
|
|
|
|
|
|||||||||
U.S. investment grade bonds
|
26
|
|
|
10
|
|
|
—
|
|
|
36
|
|
|
|||||
U.S. high yield bonds
|
—
|
|
|
24
|
|
|
—
|
|
|
24
|
|
|
|||||
Non-U.S. investment grade bonds
|
—
|
|
|
14
|
|
|
—
|
|
|
14
|
|
|
|||||
Real estate investment trusts at NAV
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
(1)
|
|||||
Hedge funds at NAV
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
(1)
|
|||||
Pooled pension funds
|
—
|
|
|
142
|
|
|
—
|
|
|
142
|
|
|
|||||
AVC assets (pooled pension funds)
|
—
|
|
|
17
|
|
|
—
|
|
|
17
|
|
|
|||||
Cash equivalents
|
16
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
|||||
Total
|
$
|
241
|
|
|
$
|
344
|
|
|
$
|
—
|
|
|
$
|
628
|
|
|
Asset Category
|
December 31, 2015
|
|
|||||||||||||||
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
||||||||||
|
(in millions)
|
|
|||||||||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|||||||||
U.S. large cap stocks
|
$
|
74
|
|
|
$
|
83
|
|
|
$
|
—
|
|
|
$
|
157
|
|
|
|
U.S. small cap stocks
|
55
|
|
|
3
|
|
|
—
|
|
|
58
|
|
|
|||||
Non-U.S. large cap stocks
|
21
|
|
|
34
|
|
|
—
|
|
|
55
|
|
|
|||||
Non-U.S. small cap stocks
|
21
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
|||||
Emerging markets
|
14
|
|
|
21
|
|
|
—
|
|
|
35
|
|
|
|||||
Debt securities:
|
|
|
|
|
|
|
|
|
|||||||||
U.S. investment grade bonds
|
19
|
|
|
14
|
|
|
—
|
|
|
33
|
|
|
|||||
U.S. high yield bonds
|
—
|
|
|
26
|
|
|
—
|
|
|
26
|
|
|
|||||
Non-U.S. investment grade bonds
|
—
|
|
|
14
|
|
|
—
|
|
|
14
|
|
|
|||||
Real estate investment trusts at NAV
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
(1)
|
|||||
Hedge funds at NAV
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
(1)
|
|||||
Pooled pension funds
|
—
|
|
|
143
|
|
|
—
|
|
|
143
|
|
|
|||||
AVC assets (pooled pension funds)
|
—
|
|
|
19
|
|
|
—
|
|
|
19
|
|
|
|||||
Cash equivalents
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
|||||
Total
|
$
|
214
|
|
|
$
|
357
|
|
|
$
|
—
|
|
|
$
|
608
|
|
|
|
Pension
Plans
|
|
Other Postretirement Plans
|
||||
2017
|
$
|
71
|
|
|
$
|
1
|
|
2018
|
54
|
|
|
1
|
|
||
2019
|
51
|
|
|
1
|
|
||
2020
|
64
|
|
|
1
|
|
||
2021
|
64
|
|
|
1
|
|
||
2022-2026
|
351
|
|
|
5
|
|
|
2016
|
|
2015
|
||||
(in millions)
|
|||||||
Commercial mortgage loans
|
$
|
78
|
|
|
$
|
73
|
|
Consumer mortgage loans
|
185
|
|
|
447
|
|
||
Consumer lines of credit
|
2
|
|
|
3
|
|
||
Affordable housing and other real estate partnerships
|
177
|
|
|
117
|
|
||
Total funding commitments
|
$
|
442
|
|
|
$
|
640
|
|
|
December 31,
|
||||||
2016
|
|
2015
|
|||||
(in millions)
|
|||||||
Advice & Wealth Management
|
$
|
12,654
|
|
|
$
|
11,338
|
|
Asset Management
|
7,254
|
|
|
7,931
|
|
||
Annuities
|
93,481
|
|
|
94,022
|
|
||
Protection
|
22,090
|
|
|
20,755
|
|
||
Corporate & Other
|
4,342
|
|
|
11,293
|
|
||
Total assets
|
$
|
139,821
|
|
|
$
|
145,339
|
|
|
Years Ended December 31,
|
||||||||||
2016
|
|
2015
|
|
2014
|
|||||||
(in millions)
|
|||||||||||
Operating net revenues:
|
|
|
|
|
|
||||||
Advice & Wealth Management
|
$
|
5,036
|
|
|
$
|
5,013
|
|
|
$
|
4,806
|
|
Asset Management
|
2,964
|
|
|
3,254
|
|
|
3,320
|
|
|||
Annuities
|
2,463
|
|
|
2,541
|
|
|
2,591
|
|
|||
Protection
|
2,506
|
|
|
2,384
|
|
|
2,287
|
|
|||
Corporate & Other
|
(28
|
)
|
|
3
|
|
|
4
|
|
|||
Eliminations
(1)
|
(1,406
|
)
|
|
(1,461
|
)
|
|
(1,417
|
)
|
|||
Total segment operating revenues
|
11,535
|
|
|
11,734
|
|
|
11,591
|
|
|||
Net realized gains
|
6
|
|
|
4
|
|
|
37
|
|
|||
Revenue attributable to CIEs
|
128
|
|
|
446
|
|
|
651
|
|
|||
Market impact on IUL benefits, net
|
24
|
|
|
7
|
|
|
(11
|
)
|
|||
Market impact of hedges on investments
|
3
|
|
|
(21
|
)
|
|
—
|
|
|||
Total net revenues per consolidated statements of operations
(2)
|
$
|
11,696
|
|
|
$
|
12,170
|
|
|
$
|
12,268
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(in millions)
|
||||||||||
Operating earnings:
|
|
|
|
|
|
||||||
Advice & Wealth Management
|
$
|
911
|
|
|
$
|
859
|
|
|
$
|
792
|
|
Asset Management
|
621
|
|
|
761
|
|
|
788
|
|
|||
Annuities
|
329
|
|
|
650
|
|
|
633
|
|
|||
Protection
|
176
|
|
|
183
|
|
|
246
|
|
|||
Corporate & Other
|
(272
|
)
|
|
(199
|
)
|
|
(230
|
)
|
|||
Total segment operating earnings
|
1,765
|
|
|
2,254
|
|
|
2,229
|
|
|||
Net realized gains
|
6
|
|
|
4
|
|
|
37
|
|
|||
Net income (loss) attributable to CIEs
|
(2
|
)
|
|
125
|
|
|
381
|
|
|||
Market impact on variable annuity guaranteed benefits, net
|
(216
|
)
|
|
(214
|
)
|
|
(94
|
)
|
|||
Market impact on IUL benefits, net
|
36
|
|
|
(1
|
)
|
|
(6
|
)
|
|||
Market impact of hedges on investments
|
3
|
|
|
(21
|
)
|
|
—
|
|
|||
Integration and restructuring charges
|
—
|
|
|
(5
|
)
|
|
—
|
|
|||
Income
from
continuing
operations
before
income
tax
provision
per
consolidated
statements
of operations
|
$
|
1,592
|
|
|
$
|
2,142
|
|
|
$
|
2,547
|
|
|
2016
|
|
2015
|
||||||||||||||||||||||||||||
12/31
|
|
9/30
|
|
6/30
|
|
3/31
|
12/31
|
|
9/30
|
|
6/30
|
|
3/31
|
||||||||||||||||||
(in millions, except per share data)
|
|||||||||||||||||||||||||||||||
Net revenues
|
$
|
3,062
|
|
|
$
|
2,998
|
|
|
$
|
2,871
|
|
|
$
|
2,765
|
|
|
$
|
3,103
|
|
|
$
|
2,886
|
|
|
$
|
3,128
|
|
|
$
|
3,053
|
|
Pretax income
|
469
|
|
|
238
|
|
|
410
|
|
|
475
|
|
|
446
|
|
|
463
|
|
|
615
|
|
|
618
|
|
||||||||
Net income
|
400
|
|
|
215
|
|
|
335
|
|
|
364
|
|
|
380
|
|
|
352
|
|
|
476
|
|
|
479
|
|
||||||||
Less: Net income (loss) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
(45
|
)
|
|
61
|
|
|
86
|
|
||||||||
Net income attributable to
Ameriprise Financial
|
$
|
400
|
|
|
$
|
215
|
|
|
$
|
335
|
|
|
$
|
364
|
|
|
$
|
357
|
|
|
$
|
397
|
|
|
$
|
415
|
|
|
$
|
393
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Earnings per share attributable to Ameriprise Financial, Inc. common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
$
|
2.49
|
|
|
$
|
1.31
|
|
|
$
|
1.99
|
|
|
$
|
2.11
|
|
|
$
|
2.02
|
|
|
$
|
2.20
|
|
|
$
|
2.26
|
|
|
$
|
2.11
|
|
Diluted
|
$
|
2.46
|
|
|
$
|
1.30
|
|
|
$
|
1.97
|
|
|
$
|
2.09
|
|
|
$
|
2.00
|
|
|
$
|
2.17
|
|
|
$
|
2.23
|
|
|
$
|
2.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
160.4
|
|
|
164.0
|
|
|
168.3
|
|
|
172.6
|
|
|
176.6
|
|
|
180.4
|
|
|
183.8
|
|
|
186.3
|
|
||||||||
Diluted
|
162.4
|
|
|
165.8
|
|
|
170.1
|
|
|
174.4
|
|
|
178.9
|
|
|
182.7
|
|
|
186.4
|
|
|
189.1
|
|
||||||||
Cash dividends declared per common share
|
$
|
0.75
|
|
|
$
|
0.75
|
|
|
$
|
0.75
|
|
|
$
|
0.67
|
|
|
$
|
0.67
|
|
|
$
|
0.67
|
|
|
$
|
0.67
|
|
|
$
|
0.58
|
|
Common share price:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
High
|
119.32
|
|
|
101.81
|
|
|
102.74
|
|
|
105.47
|
|
|
120.29
|
|
|
129.22
|
|
|
131.76
|
|
|
138.26
|
|
||||||||
Low
|
86.25
|
|
|
84.93
|
|
|
84.92
|
|
|
76.00
|
|
|
100.08
|
|
|
95.52
|
|
|
120.83
|
|
|
121.49
|
|
•
|
Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
|
•
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
|
•
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
|
•
|
information included under the caption “Items to be Voted on by Shareholders-Item 1-Election of Nine Directors”;
|
•
|
information included under the caption “Requirements, Including Deadlines, for Submission of Proxy Proposals, Nomination of Directors and Other Business by Shareholders”;
|
•
|
information under the caption “Corporate Governance-Codes of Conduct”;
|
•
|
information included under the caption “Corporate Governance-Membership on Board Committees”;
|
•
|
information under the caption “Corporate Governance-Nominating and Governance Committee-Director Nomination Process”;
|
•
|
information included under the caption “Corporate Governance-Audit Committee”;
|
•
|
information included under the caption “Corporate Governance-Audit Committee Financial Experts”; and
|
•
|
information under the caption “Section 16(a) Beneficial Ownership Reporting Compliance.”
|
•
|
information under the caption “Corporate Governance-Compensation and Benefits Committee-Compensation Committee Interlocks and Insider Participation”;
|
•
|
information included under the caption “Compensation of Executive Officers”; and
|
•
|
information included under the caption “Compensation of Directors.”
|
Plan category
|
(a)
|
|
(b)
|
|
(c)
|
|
||||
Number of securities to be issued upon exercise of outstanding options, warrants and rights
|
|
Weighted-average exercise price of outstanding options, warrants and rights
|
|
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) – shares
|
|
|||||
Equity compensation plans approved by security holders
|
10,068,515
|
|
(1)
|
$
|
85.05
|
|
|
14,549,995
|
|
|
Equity compensation plans not approved by security holders
|
2,828,265
|
|
(2)
|
$
|
47.50
|
|
|
7,771,501
|
|
(3)
|
Total
|
12,896,780
|
|
|
$
|
84.85
|
|
|
22,321,496
|
|
|
(Parent Company Only)
|
|||||||||||
|
Years Ended December 31,
|
||||||||||
2016
|
|
2015
|
|
2014
|
|||||||
(in millions)
|
|||||||||||
Revenues
|
|
|
|
|
|
||||||
Management and financial advice fees
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
Net investment income
|
14
|
|
|
2
|
|
|
30
|
|
|||
Other revenues
|
9
|
|
|
14
|
|
|
11
|
|
|||
Total revenues
|
22
|
|
|
15
|
|
|
41
|
|
|||
Banking and deposit interest expense
|
1
|
|
|
—
|
|
|
—
|
|
|||
Total net revenues
|
21
|
|
|
15
|
|
|
41
|
|
|||
Expenses
|
|
|
|
|
|
||||||
Benefits, claims, losses and settlement expenses
|
41
|
|
|
13
|
|
|
11
|
|
|||
Interest and debt expense
|
113
|
|
|
124
|
|
|
118
|
|
|||
General and administrative expense
|
192
|
|
|
193
|
|
|
195
|
|
|||
Total expenses
|
346
|
|
|
330
|
|
|
324
|
|
|||
Pretax loss before equity in earnings of subsidiaries
|
(325
|
)
|
|
(315
|
)
|
|
(283
|
)
|
|||
Income tax benefit
|
(146
|
)
|
|
(123
|
)
|
|
(88
|
)
|
|||
Loss before equity in earnings of subsidiaries
|
(179
|
)
|
|
(192
|
)
|
|
(195
|
)
|
|||
Equity in earnings of subsidiaries excluding discontinued operations
|
1,493
|
|
|
1,754
|
|
|
1,816
|
|
|||
Net income from continuing operations
|
1,314
|
|
|
1,562
|
|
|
1,621
|
|
|||
Loss from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||
Net income
|
1,314
|
|
|
1,562
|
|
|
1,619
|
|
|||
Other comprehensive income (loss), net of tax
|
(59
|
)
|
|
(409
|
)
|
|
67
|
|
|||
Total comprehensive income
|
$
|
1,255
|
|
|
$
|
1,153
|
|
|
$
|
1,686
|
|
See Notes to Condensed Financial Information of Registrant.
|
(Parent Company Only)
|
|||||||||||
|
Years Ended December 31,
|
||||||||||
2016
|
|
2015
|
|
2014
|
|||||||
(in millions)
|
|||||||||||
Cash Flows from Operating Activities
|
|
|
|
|
|
||||||
Net income
|
$
|
1,314
|
|
|
$
|
1,562
|
|
|
$
|
1,619
|
|
Equity in earnings of subsidiaries excluding discontinued operations
|
(1,493
|
)
|
|
(1,754
|
)
|
|
(1,816
|
)
|
|||
Loss from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
2
|
|
|||
Dividends received from subsidiaries
|
1,465
|
|
|
1,485
|
|
|
1,569
|
|
|||
Other operating activities, primarily with subsidiaries
|
517
|
|
|
183
|
|
|
614
|
|
|||
Net cash provided by operating activities
|
1,803
|
|
|
1,476
|
|
|
1,988
|
|
|||
Cash Flows from Investing Activities
|
|
|
|
|
|
||||||
Available-for-Sale securities:
|
|
|
|
|
|
||||||
Proceeds from sales
|
55
|
|
|
112
|
|
|
62
|
|
|||
Maturities, sinking fund payments and calls
|
277
|
|
|
506
|
|
|
284
|
|
|||
Purchases
|
(129
|
)
|
|
(28
|
)
|
|
(756
|
)
|
|||
Proceeds from sale of other investments
|
—
|
|
|
62
|
|
|
—
|
|
|||
Purchase of other investments
|
—
|
|
|
(5
|
)
|
|
(50
|
)
|
|||
Purchase of land, buildings, equipment and software
|
(49
|
)
|
|
(47
|
)
|
|
(40
|
)
|
|||
Contributions to subsidiaries
|
(197
|
)
|
|
(271
|
)
|
|
(31
|
)
|
|||
Return of capital from subsidiaries
|
187
|
|
|
146
|
|
|
284
|
|
|||
Repayment of loans to subsidiaries
|
1,910
|
|
|
2,897
|
|
|
3,402
|
|
|||
Issuance of loans to subsidiaries
|
(1,910
|
)
|
|
(2,897
|
)
|
|
(3,112
|
)
|
|||
Other, net
|
59
|
|
|
7
|
|
|
99
|
|
|||
Net cash provided by investing activities
|
203
|
|
|
482
|
|
|
142
|
|
|||
Cash Flows from Financing Activities
|
|
|
|
|
|
||||||
Dividends paid to shareholders
|
(479
|
)
|
|
(465
|
)
|
|
(426
|
)
|
|||
Repurchase of common shares
|
(1,707
|
)
|
|
(1,741
|
)
|
|
(1,577
|
)
|
|||
Cash paid for purchased options with deferred premiums
|
(22
|
)
|
|
(19
|
)
|
|
(388
|
)
|
|||
Cash received for purchased options with deferred premiums
|
—
|
|
|
—
|
|
|
59
|
|
|||
Issuance of long-term debt, net of issuance costs
|
496
|
|
|
—
|
|
|
543
|
|
|||
Repayments of long-term debt
|
(257
|
)
|
|
(409
|
)
|
|
(200
|
)
|
|||
Borrowings from subsidiaries
|
—
|
|
|
—
|
|
|
15
|
|
|||
Repayments of borrowings from subsidiaries
|
—
|
|
|
—
|
|
|
(15
|
)
|
|||
Exercise of stock options
|
9
|
|
|
16
|
|
|
33
|
|
|||
Excess tax benefits from share-based compensation
|
14
|
|
|
81
|
|
|
162
|
|
|||
Other, net
|
33
|
|
|
(17
|
)
|
|
(4
|
)
|
|||
Net cash used in financing activities
|
(1,913
|
)
|
|
(2,554
|
)
|
|
(1,798
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
93
|
|
|
(596
|
)
|
|
332
|
|
|||
Cash and cash equivalents at beginning of year
|
661
|
|
|
1,257
|
|
|
925
|
|
|||
Cash and cash equivalents at end of year
|
$
|
754
|
|
|
$
|
661
|
|
|
$
|
1,257
|
|
Supplemental Disclosures:
|
|
|
|
|
|
||||||
Interest paid on debt
|
$
|
121
|
|
|
$
|
154
|
|
|
$
|
145
|
|
Income taxes paid (received), net
|
(112
|
)
|
|
378
|
|
|
482
|
|
|||
Non-cash dividends from subsidiaries
|
11
|
|
|
52
|
|
|
152
|
|
|||
Non-cash contributions to subsidiaries
|
—
|
|
|
—
|
|
|
51
|
|
|||
See Notes to Condensed Financial Information of Registrant.
|
•
|
At both
December 31, 2016
and
2015
, the debt of Ameriprise Financial included
$50 million
of repurchase agreements, which are accounted for as secured borrowings.
|
•
|
At both
December 31, 2016
and
2015
, Ameriprise Financial had
$150 million
of borrowings from the Federal Home Loan Bank of Des Moines, which is collateralized with commercial mortgage backed securities.
|
Exhibit
|
Description
|
3.1
|
Amended Restated Certificate of Incorporation of Ameriprise Financial, Inc. (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K, File No. 1-32525, filed on May 1, 2014).
|
3.2
|
Amended and Restated Bylaws of Ameriprise Financial, Inc. (incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K, File No. 1-32525, filed on May 1, 2014).
|
4.1
|
Form of Specimen Common Stock Certificate (incorporated by reference to Exhibit 4.1 to Amendment No. 3 to Form 10 Registration Statement, File No. 1-32525, filed on August 19, 2005).
|
4.2
|
Indenture dated as of October 5, 2005, between Ameriprise Financial, Inc. and U.S. Bank National Association, trustee (incorporated by reference to Exhibit 4(a) to the Registration Statement on Form S-3, File No. 333-128834, filed on October 5, 2005).
|
4.3
|
Indenture dated as of May 5, 2006, between Ameriprise Financial, Inc. and U.S. Bank National Association, trustee (incorporated by reference to Exhibit 4.A to the Registration Statement on Form S-3ASR, File No. 333-133860, filed on May 5, 2006).
|
4.4
|
Junior Subordinated Debt Indenture, dated as of May 5, 2006, between Ameriprise Financial, Inc. and U.S. Bank National Association, trustee (incorporated by reference to Exhibit 4.C to the Registration Statement on Form S-3ASR, File No. 333-133860, filed on May 5, 2006).
|
10.1
|
Tax Allocation Agreement by and between American Express and Ameriprise Financial, Inc., dated as of September 30, 2005 (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, File No. 1-32525, filed on October 4, 2005).
|
10.2
|
Ameriprise Financial 2005 Incentive Compensation Plan, as amended and restated effective April 30, 2014 (incorporated by reference to Exhibit B to the Proxy Statement for the Annual Meeting of Shareholders held on April 30, 2014, File No. 001-32525, filed on March 17, 2014).
|
10.3
|
Ameriprise Financial Deferred Compensation Plan, as amended and restated effective January 1, 2012 (incorporated by reference to Exhibit 10.3 of the Annual Report on Form 10-K, File No. 1-32525, filed on February 24, 2012).
|
10.4
|
Ameriprise Financial Supplemental Retirement Plan, as amended and restated effective April 1, 2010 (incorporated by reference to Exhibit 10.3 of the Quarterly Report on Form 10-Q, File No. 1-32525, filed on May 4, 2010).
|
10.5
|
Form of Ameriprise Financial 2005 Incentive Compensation Plan Master Agreement for Substitution Awards (incorporated by reference to Exhibit 10.8 to Amendment No. 2 to Form 10 Registration Statement, File No. 1-32525, filed on August 15, 2005).
|
10.6
|
Ameriprise Financial Form of Award Certificate — Non-Qualified Stock Option Award (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K, File No. 1-32525, filed on October 4, 2005).
|
10.7
|
Ameriprise Financial Form of Award Certificate — Restricted Stock Award (incorporated by reference to Exhibit 10.5 to the Current Report on Form 8-K, File No. 1-32525, filed on October 4, 2005).
|
10.8
|
Ameriprise Financial Form of Award Certificate — Restricted Stock Unit Award (incorporated by reference to Exhibit 10.6 to the Current Report on Form 8-K, File No. 1-32525, filed on October 4, 2005).
|
10.9
|
Ameriprise Financial Form of Agreement — Cash Incentive Award (incorporated by reference to Exhibit 10.7 to the Current Report on Form 8-K, File No. 1-32525, filed on October 4, 2005).
|
10.10*
|
Ameriprise Financial Long-Term Incentive Award Program Guide.
|
10.11
|
Ameriprise Financial Performance Cash Unit Plan Supplement to the Long Term Incentive Award Program Guide (incorporated by reference to Exhibit 10.1 of the Quarterly Report on Form 10-Q, File No. 1-32525, filed on May 2, 2011).
|
10.12
|
Ameriprise Financial Form of Award Certificate — Performance Cash Unit Plan Award
(incorporated by reference to Exhibit 10.12 of the Annual Report on Form 10-K File No. 1-32525, filed on February 25, 2016).
|
10.13
|
Ameriprise Financial Performance Share Unit Plan Supplement to the Long-Term Incentive Award Program Guide (incorporated by reference to Exhibit 10.3 of the Quarterly Report on Form 10-Q, File No. 1-32525, filed on May 2, 2011).
|
10.14
|
Ameriprise Financial Form of Award Certificate — Performance Share Unit Plan Award
(incorporated by reference to Exhibit 10.14 of the Annual Report on Form 10-K File No. 1-32525, filed on February 25, 2016).
|
10.15
|
Ameriprise Financial Deferred Share Plan for Outside Directors, as amended and restated effective December 3, 2014.
|
10.16
|
CEO Security and Compensation Arrangements (incorporated by reference to Item 1.01 of the Current Report on Form 8-K, File No. 1-32525, filed on October 31, 2005).
|
10.17
|
Ameriprise Financial Senior Executive Severance Plan, as amended and restated effective January 1, 2012 (incorporated by reference to Exhibit 10.17 of the Annual Report on Form 10-K, File No. 1-32525, filed on February 24, 2012).
|
10.18
|
Restricted Stock Awards in lieu of Key Executive Life Insurance Program (incorporated by reference to Item 1.01 of the Current Report on Form 8-K, File No. 1-32525, filed on November 18, 2005).
|
10.19
|
Ameriprise Financial Annual Incentive Award Plan, adopted effective as of September 30, 2005 (incorporated by reference to Exhibit 10.28 of the Annual Report on Form 10-K, File No. 1-32525, filed on March 8, 2006).
|
10.20
|
Form of Indemnification Agreement for directors, Chief Executive Officer, Chief Financial Officer, General Counsel and Principal Accounting Officer and any other officers designated by the Chief Executive Officer (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, File No. 1-32525, filed on April 26, 2012).
|
10.21
|
Ameriprise Financial 2008 Employment Incentive Equity Award Plan (incorporated by reference to Exhibit 4.1 to the Registration Statement on Form S-8, File No. 333-156075, filed on December 11, 2008).
|
10.22
|
First Amendment to the Ameriprise Financial 2008 Employment Incentive Equity Award Plan dated September 29, 2015 (incorporated by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q, File No. 1-32525, filed on November 2, 2015).
|
10.23
|
Ameriprise Advisor Group Deferred Compensation Plan, as amended and restated effective January 1, 2016 (incorporated by reference to Exhibit 10.23 of the Annual Report on Form 10-K File No. 1-32525, filed on February 25, 2016).
|
10.24
|
Amended and Restated Credit Agreement, dated as of
May 1, 2015
, among Ameriprise Financial, Inc., the lenders party thereto, Wells Fargo Bank, National Association, as Administrative Agent, Bank of America, N.A., as Syndication Agent, and Credit Suisse AG, Cayman Islands Branch, HSBC Bank USA, National Association, Citibank, N.A., and JPMorgan Chase Bank, N.A., as Co-Documentation Agents (incorporated by reference to Exhibit
10.1 to the Quarterly Report on Form 10-Q, File No. 1-32525, filed on May 4, 2015).
|
12*
|
Ratio of Earnings to Fixed Charges.
|
13*
|
Portions of the Ameriprise Financial, Inc. 2016 Annual Report to Shareholders, which, except for those sections incorporated herein by reference, are furnished solely for the information of the SEC and are not to be deemed “filed.”
|
21*
|
Subsidiaries of Ameriprise Financial, Inc.
|
23*
|
Consent of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm.
|
24
|
Powers of attorney (included on Signature Page).
|
31.1*
|
Certification of James M. Cracchiolo pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
|
31.2*
|
Certification of Walter S. Berman pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
|
32*
|
Certification of James M. Cracchiolo and Walter S. Berman pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101*
|
The following materials from Ameriprise Financial, Inc.’s Annual Report on Form 10-K for the year ended
December 31, 2016
, formatted in XBRL: (i) Consolidated Statements of Operations for the years ended
December 31, 2016
,
2015
and
2014
; (ii) Consolidated Statements of Comprehensive Income for the years ended
December 31, 2016
,
2015
and
2014
; (iii) Consolidated Balance Sheets at
December 31, 2016
and
2015
; (iv) Consolidated Statements of Equity for the years ended
December 31, 2016
,
2015
and
2014
; (v) Consolidated Statements of Cash Flows for the years ended
December 31, 2016
,
2015
and
2014
; (vi) Notes to the Consolidated Financial Statements; and (vii) Schedule I - Condensed Financial Information of Registrant (Parent Only).
|
•
|
Registration Statement (Form S-3ASR No. 333-203606) of Ameriprise Financial, Inc. and Ameriprise Capital Trusts I through IV,
|
•
|
Registration Statement (Form S-8 No. 333-128789 and No. 333-195690) pertaining to the Ameriprise Financial 2005 Incentive Compensation Plan,
|
•
|
Registration Statements (Form S-8 No. 333-128790 and No. 333-156074) pertaining to the Ameriprise Financial 401(k) Plan,
|
•
|
Registration Statements (Form S-8 No. 333-128791, No. 333-150677 and No. 333-181008) pertaining to the Ameriprise Financial Franchise Advisor Deferred Compensation Plan (formerly the Ameriprise Financial Deferred Equity Program for Independent Financial Advisors),
|
•
|
Registration Statement (Form S-8 No. 333-156075) pertaining to the Ameriprise Financial 2008 Employment Incentive Equity Award Plan,
|
•
|
Registration Statement (Form S-8 No. 333-159025) pertaining to the Ameriprise Advisor Group Deferred Compensation Plan;
|
1.
|
I have reviewed this Annual Report on Form 10-K 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: February 23, 2017
|
By
|
/s/ James M. Cracchiolo
|
|
|
James M. Cracchiolo
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K 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
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: February 23, 2017
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By
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/s/ Walter S. Berman
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Walter S. Berman
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Chief Financial Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date: February 23, 2017
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By
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/s/ James M. Cracchiolo
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James M. Cracchiolo
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Chief Executive Officer
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Date: February 23, 2017
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By
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/s/ Walter S. Berman
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|
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Walter S. Berman
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Chief Financial Officer
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