Ameriprise 2009 Annual Report Download - page 127

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2009 compared to 2008 was the tightening of credit spreads across sectors, partially offset by higher interest rates. In addition, a portion
of the decrease in unrealized losses was offset by an increase due to the adoption of a new accounting standard effective January 1, 2009.
The Company recorded a cumulative effect increase to the amortized cost of previously other-than-temporarily impaired investments that
increased the gross unrealized losses on Available-for-Sale securities by $211 million. This impact is due to the impairment of
Available-for-Sale securities recognized in other comprehensive income (loss) previously recognized through earnings for factors other
than credit.
The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Operations for
other-than-temporary impairments related to credit losses on securities for which a portion of the securities’ total other-than-temporary
impairments was recognized in other comprehensive income (loss):
(in millions)
Beginning balance of credit losses on securities held for which a portion of other-than-temporary impairment was
recognized in other comprehensive income $ 258
Additional amount related to credit losses for which an other-than-temporary impairment was not previously
recognized 8
Reductions for securities sold during the period (realized) (60)
Additional increases to the amount related to credit losses for which an other-than-temporary impairment was
previously recognized 57
Ending balance of credit losses on securities held as of December 31 for which a portion of other-than-temporary
impairment was recognized in other comprehensive income $ 263
The change in net unrealized securities gains (losses) in other comprehensive income (loss) includes three components, net of tax:
(i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses
that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities; and
(iii) other items primarily consisting of adjustments in asset and liability balances, such as DAC, DSIC, benefit reserves and reinsurance
recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective
balance sheet dates. As a result of the adoption of a new accounting standard effective January 1, 2009, net unrealized investment gains
(losses) arising during the period also includes other-than-temporary impairment losses on Available-for-Sale securities related to factors
other than credit that were recognized in other comprehensive income (loss) during the period. Additionally, reclassification of (gains)
losses included in net income contains noncredit other-than-temporary impairment losses that were previously unrealized, but have been
recognized in current period net income due to their reclassification as credit losses.
112 ANNUAL REPORT 2009