Ameriprise 2007 Annual Report Download - page 79

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At December 31, 2007 and 2006, fixed maturity securities comprised approximately 85% and 87%, respectively, of the Company’s total invest-
ments. These securities were rated by Moody’s and Standard & Poor’s (“S&P”), except for approximately $1.4 billion of securities at both
December 31, 2007 and 2006, which were rated by the Company’s internal analysts using criteria similar to Moody’s and S&P. Ratings on
investment grade securities are presented using S&P’s convention and, if the two agencies’ ratings differ, the lower rating was used. A summary
of fixed maturity securities by rating was as follows:
December 31, 2007 December 31, 2006
Percent of Percent of
Amortized Fair Total Fair Amortized Fair Total Fair
Rating Cost Value Value Cost Value Value
AAA $11,381 $11,277 44% $13,428 $13,261 43%
AA 2,637 2,613 10 2,827 2,794 9
A4,292 4,253 16 5,414 5,344 17
BBB 6,150 6,069 24 7,474 7,415 24
Below investment grade 1,734 1,661 6 2,012 2,006 7
Total fixed maturities $26,194 $25,873 100% $31,155 $30,820 100%
At December 31, 2007 and 2006, approximately 39% and 42%, respectively, of the securities rated AAA were GNMA, FNMA and FHLMC
mortgage-backed securities. No holdings of any other issuer were greater than 10% of shareholders’ equity.
The following table provides information about Available-for-Sale securities with gross unrealized losses and the length of time that individual
securities have been in a continuous unrealized loss position:
December 31, 2007
Less than 12 months 12 months or more Total
Fair Unrealized Fair Unrealized Fair Unrealized
Description of Securities Value Losses Value Losses Value Losses
(in millions)
Corporate debt securities $1,514 $ (45) $ 8,159 $(283) $ 9,673 $(328)
Mortgage and other asset-backed securities 1,754 (73) 5,715 (89) 7,469 (162)
State and municipal obligations 414 (15) 73 (2) 487 (17)
U.S. government and agencies obligations — — 169 (1) 169 (1)
Foreign government bonds and obligations — — 2 — 2 —
Common and preferred stocks 49 (1) — — 49 (1)
Total $3,731 $(134) $14,118 $(375) $17,849 $(509)
December 31, 2006
Less than 12 months 12 months or more Total
Fair Unrealized Fair Unrealized Fair Unrealized
Description of Securities Value Losses Value Losses Value Losses
(in millions)
Corporate debt securities $1,416 $(19) $10,881 $(345) $12,297 $(364)
Mortgage and other asset-backed securities 1,134 (7) 8,617 (217) 9,751 (224)
State and municipal obligations 12 — 90 (4) 102 (4)
U.S. government and agencies obligations 11 — 246 (6) 257 (6)
Foreign government bonds and obligations — — 3 — 3 —
Common and preferred stocks — — 4 — 4 —
Total $2,573 $(26) $19,841 $(572) $22,414 $(598)
Ameriprise Financial 2007 Annual Report 77