Ameriprise 2015 Annual Report Download - page 153

The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts
providing guaranteed benefits:
December 31,
2015 2014
(in millions)
Mutual funds:
Equity $ 39,806 $ 41,403
Bond 23,700 25,060
Other 5,241 4,490
Total mutual funds $ 68,747 $ 70,953
No gains or losses were recognized on assets transferred to separate accounts for the years ended December 31, 2015,
2014 and 2013.
12. Customer Deposits
Customer deposits consisted of the following:
December 31,
2015 2014
(in millions)
Fixed rate certificates $ 4,260 $ 3,597
Stock market certificates 553 581
Stock market embedded derivative 46
Other 18 23
Less: accrued interest classified in other liabilities (3) (8)
Total investment certificate reserves 4,832 4,199
Brokerage deposits 3,802 3,465
Total $ 8,634 $ 7,664
Investment Certificates
The Company offers fixed rate investment certificates primarily in amounts ranging from $1,000 to $2 million with interest
crediting rate terms ranging from 3 to 36 months. Investment certificates may be purchased either with a lump sum
payment or installment payments. Certificate owners are entitled to receive, at maturity, a definite sum of money.
Payments from certificate owners are credited to investment certificate reserves. Investment certificate reserves generally
accumulate interest at specified percentage rates. Reserves are maintained for advance payments made by certificate
owners, accrued interest thereon and for additional credits in excess of minimum guaranteed rates and accrued interest
thereon. On certificates allowing for the deduction of a surrender charge, the cash surrender values may be less than
accumulated investment certificate reserves prior to maturity dates. Cash surrender values on certificates allowing for no
surrender charge are equal to certificate reserves. The Company generally invests the proceeds from investment certificates
in fixed and variable rate securities.
Certain investment certificate products have returns tied to the performance of equity markets. The Company guarantees
the principal for purchasers who hold the certificate for the full term and purchasers may participate in increases in the
stock market based on the S&P 500 Index, up to a maximum return. Purchasers can choose 100% participation in the
market index up to the cap or 25% participation plus fixed interest with a combined total up to the cap. Current first term
certificates have maximum returns of 1.0% to 2.0%. The equity component of these certificates is considered an
embedded derivative and is accounted for separately. See Note 16 for additional information about derivative instruments
used to economically hedge the equity price risk related to the Company’s stock market certificates.
Brokerage Deposits
Brokerage deposits are amounts payable to brokerage customers related to free credit balances, funds deposited by
customers and funds accruing to customers as a result of trades or contracts. The Company pays interest on certain
customer credit balances and the interest is included in banking and deposit interest expense.
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