Ameriprise 2012 Annual Report Download - page 139

December 31, 2011
Gross Gross
Amortized Unrealized Unrealized Fair Noncredit
Description of Securities Cost Gains Losses Value OTTI(1)
(in millions)
Corporate debt securities $ 16,380 $ 1,741 $ (81) $ 18,040 $ —
Residential mortgage backed securities 7,756 287 (367) 7,676 (154)
Commercial mortgage backed securities 4,430 291 (2) 4,719 —
Asset backed securities 1,652 61 (8) 1,705 —
State and municipal obligations 2,026 162 (58) 2,130 —
U.S. government and agencies obligations 61 10 — 71 —
Foreign government bonds and obligations 126 19 (1) 144 —
Common stocks 5 4 — 9 —
Other debt obligations 11 — — 11 —
Total $ 32,447 $ 2,575 $ (517) $ 34,505 $ (154)
(1) Represents the amount of other-than-temporary impairment (‘‘OTTI’’) losses in accumulated other comprehensive income. Amount
includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts
are included in gross unrealized gains and losses as of the end of the period.
At December 31, 2012 and 2011, fixed maturity securities comprised approximately 85% and 86%, respectively, of
Ameriprise Financial investments. Rating agency designations are based on the availability of ratings from Nationally
Recognized Statistical Rating Organizations (‘‘NRSROs’’), including Moody’s Investors Service (‘‘Moody’s’’), Standard &
Poor’s Ratings Services (‘‘S&P’’) and Fitch Ratings Ltd. (‘‘Fitch’’). The Company uses the median of available ratings from
Moody’s, S&P and Fitch, or, if fewer than three ratings are available, the lower rating is used. When ratings from Moody’s,
S&P and Fitch are unavailable, the Company may utilize ratings from other NRSROs or rate the securities internally. At
December 31, 2012 and 2011, the Company’s internal analysts rated $1.7 billion and $1.2 billion, respectively, of
securities, using criteria similar to those used by NRSROs. A summary of fixed maturity securities by rating was as follows:
December 31, 2012 December 31, 2011
Percent of Percent of
Amortized Total Fair Amortized Total Fair
Ratings Cost Fair Value Value Cost Fair Value Value
(in millions, except percentages)
AAA $ 7,462 $ 8,021 26% $ 11,510 $ 12,105 35%
AA 1,620 1,827 6 1,942 2,087 6
A 5,456 6,069 19 5,012 5,442 16
BBB 11,939 13,575 43 11,818 13,050 38
Below investment grade 2,026 1,967 6 2,160 1,812 5
Total fixed maturities $ 28,503 $ 31,459 100% $ 32,442 $ 34,496 100%
At December 31, 2012 and 2011, approximately 35% and 36%, 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 total equity. The
decrease in the fair value of AAA rated securities compared to the prior year was primarily due to sales and maturities, of
which approximately $2.5 billion related to the sale of Ameriprise Bank’s investment portfolio.
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, 2012
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 76 $ 801 $ (6) 6 $ 70 $ (3) 82 $ 871 $ (9)
Residential mortgage backed
securities 22 408 (5) 134 658 (107) 156 1,066 (112)
Asset backed securities 9 108 (1) 5 86 (3) 14 194 (4)
State and municipal
obligations 13 34 (1) 8 113 (35) 21 147 (36)
Total 120 $ 1,351 $ (13) 153 $ 927 $ (148) 273 $ 2,278 $ (161)
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