Ameriprise 2009 Annual Report Download - page 126

At December 31, 2009 and 2008, fixed maturity securities comprised approximately 88% and 83%, respectively, of the Company’s total
investments. These securities were rated by Moody’s Investors Service (‘‘Moody’s’’), Standard & Poor’s Ratings Services (‘‘S&P’’) and
Fitch Ratings Ltd. (‘‘Fitch’’), except for approximately $1.2 billion of securities at December 31, 2009 and 2008, which were rated by the
Company’s internal analysts using criteria similar to Moody’s, S&P and Fitch. Ratings on fixed maturity securities are presented using the
median of ratings from Moody’s, S&P and Fitch. If only two of the ratings are available, the lower rating is used. A summary of fixed
maturity securities by rating was as follows:
December 31, 2009 December 31, 2008
Percent of Percent of
Amortized Total Fair Amortized Total Fair
Ratings Cost Fair Value Value Cost Fair Value Value
(in millions, except percentages)
AAA $ 13,003 $ 13,396 41% $ 9,475 $ 8,988 40%
AA 1,616 1,601 5 1,698 1,571 7
A 4,778 4,910 15 4,689 4,396 19
BBB 10,261 10,802 33 7,299 6,707 29
Below investment grade 2,150 1,794 6 1,494 1,174 5
Total fixed maturities $ 31,808 $ 32,503 100% $ 24,655 $ 22,836 100%
At December 31, 2009 and 2008, approximately 24% and 45%, 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 tables provide 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, 2009
Less than 12 months 12 months or more Total
Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized
Description of Securities Securities Value Losses Securities Value Losses Securities Value Losses
(in millions, except number of securities)
Corporate debt securities 139 $ 1,095 $ (18) 193 $ 1,368 $ (89) 332 $ 2,463 $ (107)
Residential mortgage backed securities 80 1,566 (51) 172 904 (447) 252 2,470 (498)
Commercial mortgage backed securities 37 373 (4) 36 348 (16) 73 721 (20)
Asset backed securities 16 126 (3) 38 207 (59) 54 333 (62)
State and municipal obligations 64 318 (10) 135 389 (66) 199 707 (76)
U.S. government and agencies obligations 5 133 (1) — — — 5 133 (1)
Foreign government bonds and obligations — — — 2 4 (1) 2 4 (1)
Common and preferred stocks 2 — — 3 39 (10) 5 39 (10)
Other structured investments — — — 6 — — 6 — —
Total 343 $ 3,611 $ (87) 585 $ 3,259 $ (688) 928 $ 6,870 $ (775)
December 31, 2008
Less than 12 months 12 months or more Total
Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized
Description of Securities Securities Value Losses Securities Value Losses Securities Value Losses
(in millions, except number of securities)
Corporate debt securities 355 $ 6,250 $ (396) 230 $ 3,544 $ (778) 585 $ 9,794 $ (1,174)
Residential mortgage backed securities 110 765 (164) 114 786 (288) 224 1,551 (452)
Commercial mortgage backed securities 34 473 (27) 75 997 (156) 109 1,470 (183)
Asset backed securities 38 373 (52) 28 231 (49) 66 604 (101)
State and municipal obligations 222 438 (64) 119 295 (91) 341 733 (155)
U.S. government and agencies obligations — — — 1 11 — 1 11 —
Foreign government bonds and obligations 7 20 (5) — — — 7 20 (5)
Common and preferred stocks — — — 2 27 (22) 2 27 (22)
Other structured investments 1 — — 5 — — 6 — —
Total 767 $ 8,319 $ (708) 574 $ 5,891 $ (1,384) 1,341 $ 14,210 $ (2,092)
As part of the Company’s ongoing monitoring process, management determined that a majority of the gross unrealized losses on its
Available-for-Sale securities are attributable to changes in credit spreads across sectors. The primary driver of lower unrealized losses in
ANNUAL REPORT 2009 111