Short-term Borrowings

6 Months Ended

Jun. 30, 2014

Short-term Debt [Abstract]

Short-term Borrowings

Short-term Borrowings

The Company enters into repurchase agreements in exchange for cash which it accounts for as secured borrowings. The Company has pledged Available-for-Sale securities consisting of agency residential mortgage backed securities and commercial mortgage backed securities to collateralize its obligation under the repurchase agreements. The fair value of the securities pledged is recorded in investments and was $51 million and $52 million at June 30, 2014 and December 31, 2013, respectively. The amount of the Company’s liability including accrued interest as of both June 30, 2014 and December 31, 2013 was $50 million. The weighted average annualized interest rate on the repurchase agreements held as of both June 30, 2014 and December 31, 2013 was 0.3%.

RiverSource Life Insurance Company is a member of the Federal Home Loan Bank (“FHLB”) of Des Moines which provides access to collateralized borrowings. In 2013, the Company began to borrow short-term funds under these FHLB borrowings. The Company has pledged Available-for-Sale securities consisting of commercial mortgage backed securities to collateralize its obligation under these borrowings. The fair value of the securities pledged is recorded in investments and was $502 million and $574 million at June 30, 2014 and December 31, 2013, respectively. The amount of the Company’s liability including accrued interest as of June 30, 2014 and December 31, 2013 was $150 million and $450 million, respectively. The weighted average annualized interest rate on the FHLB advances held as of both June 30, 2014 and December 31, 2013 was 0.3%.