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Investments
 3 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Investments [Text Block] Investments
Available-for-Sale securities distributed by type were as follows:
Description of Securities
 
March 31, 2020
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Allowance for Credit Losses
 
Fair Value
 
 
(in millions)
Fixed maturities:
 
 

 
 

 
 

 
 

 
 

Corporate debt securities
 
$
9,934

 
$
850

 
$
(328
)
 
$
(13
)
 
$
10,443

Residential mortgage backed securities
 
3,107

 
96

 
(25
)
 
—

 
3,178

Commercial mortgage backed securities
 
3,613

 
59

 
(34
)
 
—

 
3,638

State and municipal obligations
 
1,044

 
233

 
(5
)
 
—

 
1,272

Asset backed securities
 
1,029

 
25

 
(91
)
 
—

 
963

Foreign government bonds and obligations
 
246

 
9

 
(8
)
 
—

 
247

U.S. government and agency obligations
 
1

 
—

 
—

 
—

 
1

Total
 
$
18,974

 
$
1,272

 
$
(491
)
 
$
(13
)
 
$
19,742

Description of Securities
 
December 31, 2019
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Fair Value
 
 
(in millions)
Fixed maturities:
 
 

 
 

 
 

 
 

Corporate debt securities
 
$
10,188

 
$
1,336

 
$
(2
)
 
$
11,522

Residential mortgage backed securities
 
3,039

 
73

 
(4
)
 
3,108

Commercial mortgage backed securities
 
3,526

 
95

 
(3
)
 
3,618

State and municipal obligations
 
1,071

 
237

 
(2
)
 
1,306

Asset backed securities
 
1,036

 
45

 
(1
)
 
1,080

Foreign government bonds and obligations
 
250

 
19

 
(2
)
 
267

U.S. government and agency obligations
 
1

 
—

 
—

 
1

Total
 
$
19,111

 
$
1,805

 
$
(14
)
 
$
20,902


In March 2020, the Company purchased $368 million of investments at fair value, primarily agency residential mortgage back securities, from Ameriprise Financial.
As of March 31, 2020 and December 31, 2019, accrued interest of $164 million and $158 million, respectively, is excluded from the amortized cost basis of Available-for-Sale securities in the tables above and is recorded in accrued investment income on the Consolidated Balance Sheets.
As of March 31, 2020 and December 31, 2019, investment securities with a fair value of $2.1 billion and $1.9 billion, respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $411 million and $576 million, respectively, may be sold, pledged or rehypothecated by the counterparty.
As of March 31, 2020 and December 31, 2019, fixed maturity securities comprised approximately 82% and 83%, respectively, of the Company’s total 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. As of March 31, 2020 and December 31, 2019, approximately $549 million and $615 million, respectively, of securities were internally rated by Columbia Management Investment Advisers, LLC, an affiliate of the Company, using criteria similar to those used by NRSROs.
A summary of fixed maturity securities by rating was as follows:
Ratings
 
March 31, 2020
 
December 31, 2019
Amortized Cost
 
Fair Value
 
Percent of Total Fair Value
Amortized Cost
 
Fair Value
 
Percent of Total Fair Value
 
 
(in millions, except percentages)
 
 
AAA
 
$
7,027

 
$
7,138

 
36
%
 
$
6,771

 
$
6,950

 
33
%
AA
 
1,072

 
1,181

 
6

 
1,176

 
1,374

 
7

A
 
2,657

 
3,085

 
16

 
2,695

 
3,157

 
15

BBB
 
7,099

 
7,365

 
37

 
7,709

 
8,626

 
41

Below investment grade
 
1,119

 
973

 
5

 
760

 
795

 
4

Total fixed maturities
 
$
18,974

 
$
19,742

 
100
%
 
$
19,111

 
$
20,902

 
100
%

As of March 31, 2020 and December 31, 2019, approximately 42% and 39%, respectively, of securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. The Company had no holdings which were greater than 10% of total equity as of March 31, 2020. The Company had holdings of $380 million in Ameriprise Advisor Financing, LLC (“AAF”), an affiliate of the Company, which was greater than 10% of total equity as of December 31, 2019. There were no other holdings of any other issuer greater than 10% of total equity as of December 31, 2019.
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:
Description of Securities 
March 31, 2020
Less than 12 months
 
12 months or more
 
Total
Number of Securities
 
Fair Value
 
Unrealized Losses (1)
Number of Securities
 
Fair Value
 
Unrealized Losses (1)
Number of Securities
 
Fair Value
 
Unrealized Losses (1)
 
(in millions, except number of securities)
Corporate debt securities
183

 
$
2,425

 
$
(332
)
 
3

 
$
13

 
$
(9
)
 
186

 
$
2,438

 
$
(341
)
Residential mortgage backed securities
88

 
1,174

 
(24
)
 
7

 
8

 
(1
)
 
95

 
1,182

 
(25
)
Commercial mortgage backed securities
62

 
1,305

 
(34
)
 
1

 
—

 
—

 
63

 
1,305

 
(34
)
State and municipal obligations
5

 
79

 
(4
)
 
1

 
4

 
(1
)
 
6

 
83

 
(5
)
Asset backed securities
28

 
550

 
(90
)
 
2

 
23

 
(1
)
 
30

 
573

 
(91
)
Foreign government bonds and obligations
18

 
89

 
(6
)
 
8

 
10

 
(2
)
 
26

 
99

 
(8
)
Total
384

 
$
5,622

 
$
(490
)
 
22

 
$
58

 
$
(14
)
 
406

 
$
5,680

 
$
(504
)
(1) Unrealized losses of $13 million due to credit-related factors is recorded in the allowance for credit losses as of March 31, 2020.
Description of Securities 
December 31, 2019
Less than 12 months
 
12 months or more
 
Total
Number of Securities
 
Fair Value
 
Unrealized Losses
Number of Securities
 
Fair Value
 
Unrealized Losses
Number of Securities
 
Fair Value
 
Unrealized Losses
 
(in millions, except number of securities)
Corporate debt securities
15

 
$
64

 
$
—

 
7

 
$
90

 
$
(2
)
 
22

 
$
154

 
$
(2
)
Residential mortgage backed securities
29

 
571

 
(1
)
 
20

 
298

 
(3
)
 
49

 
869

 
(4
)
Commercial mortgage backed securities
18

 
310

 
(1
)
 
7

 
82

 
(2
)
 
25

 
392

 
(3
)
State and municipal obligations
5

 
23

 
—

 
3

 
54

 
(2
)
 
8

 
77

 
(2
)
Asset backed securities
10

 
111

 
(1
)
 
6

 
54

 
—

 
16

 
165

 
(1
)
Foreign government bonds and obligations
1

 
—

 
—

 
10

 
15

 
(2
)
 
11

 
15

 
(2
)
Total
78

 
$
1,079

 
$
(3
)
 
53

 
$
593

 
$
(11
)
 
131

 
$
1,672

 
$
(14
)

As part of the Company’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities during the first quarter of 2020 is attributable to wider credit spreads, partially offset by lower interest rates.
The following table presents a rollforward of the allowance for credit losses on Available-for-Sale securities by type:
 
Corporate Debt Securities
(in millions)
Balance, January 1, 2020 (1)
$
—

Additions for which credit losses were not previously recognized
13

Balance, March 31, 2020
$
13

(1) Prior to January 1, 2020, credit losses on Available-for-Sale securities were not recorded in an allowance but were recorded as a reduction of the book value of the security if the security was other-than-temporarily impaired. There is no adoption impact due to the prospective transition for Available-for-Sale securities.
Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in net realized investment gains (losses) were as follows:
 
Three Months Ended
March 31,
2020
 
2019
(in millions)
Gross realized investment gains
$
6

 
$
19

Gross realized investment losses
(1
)
 
(9
)
Credit losses
(13
)
 
—

Total
$
(8
)
 
$
10


Credit losses for the three months ended March 31, 2020 primarily related to recording an allowance for credit losses on certain corporate debt securities, primarily in the oil and gas industry.
See Note 15 for a rollforward of net unrealized investment gains (losses) included in AOCI.
Available-for-Sale securities by contractual maturity as of March 31, 2020 were as follows:
 
Amortized Cost
 
Fair Value
(in millions)
Due within one year
$
620

 
$
622

Due after one year through five years
4,170

 
4,163

Due after five years through 10 years
2,471

 
2,553

Due after 10 years
3,964

 
4,625

 
11,225

 
11,963

Residential mortgage backed securities
3,107

 
3,178

Commercial mortgage backed securities
3,613

 
3,638

Asset backed securities
1,029

 
963

Total
$
18,974

 
$
19,742


Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities, commercial mortgage backed securities and asset backed securities are not due at a single maturity date. As such, these securities were not included in the maturities distribution.
The following is a summary of net investment income:
 
Three Months Ended
March 31,
2020
 
2019
(in millions)
Fixed maturities
$
201

 
$
229

Mortgage loans
29

 
29

Other investments
(1
)
 
4

 
229

 
262

Less: investment expenses
6

 
6

Total
$
223

 
$
256