v3.24.1.u1
Lending Activities (Tables)
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
Composition of Mortgages and Other Loans Receivable
The following table presents the composition of Mortgage and other loans receivable, net:
(in millions)March 31, 2024December 31, 2023
Commercial mortgages(a)
$34,651$34,172 
Residential mortgages9,0008,445
Life insurance policy loans1,7471,746
Commercial loans, other loans and notes receivable(b)
3,1463,202
Total mortgage and other loans receivable48,54447,565
Allowance for credit losses(c)
(714)(698)
Mortgage and other loans receivable, net$47,830$46,867
(a)Commercial mortgages primarily represent loans for apartments, offices and retail properties, with exposures in New York and California representing the largest geographic concentrations (aggregating approximately 19% and 10%, respectively, at March 31, 2024, and 19% and 10%, respectively, at December 31, 2023). The weighted average loan-to-value ratio for NY and CA was 61% and 56% at March 31, 2024, respectively, and 61% and 55% at December 31, 2023, respectively. The debt service coverage ratio for NY and CA was 1.9X and 2.1X at March 31, 2024, respectively, and 1.9X and 2.1X at December 31, 2023, respectively.
(b)There were no loans that were held for sale which are carried at lower of cost or market as of March 31, 2024 and December 31, 2023.
(c)Does not include allowance for credit losses of $48 million and $58 million at March 31, 2024 and December 31, 2023, respectively, in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.
Credit Quality
The following table presents debt service coverage ratios for commercial mortgages by year of vintage*:
March 31, 2024
(in millions)20242023202220212020PriorTotal
>1.2X$631$2,037$6,197$2,135$1,274$16,026$28,300
1.00 - 1.20X713891,0701,2723112,4615,574
<1.00X——40——737777
Total commercial mortgages$702$2,426$7,307$3,407$1,585$19,224$34,651
December 31, 2023
(in millions)20232022202120202019PriorTotal
>1.2X$2,156 $6,042 $1,955 $1,252 $4,813 $11,675 $27,893 
1.00 - 1.20X291 1,077 1,320 312 156 2,334 5,490 
<1.00X— 40 — — — 749 789 
Total commercial mortgages$2,447$7,159$3,275$1,564$4,969$14,758$34,172
*    The debt service coverage ratio compares a property’s net operating income to its debt service payments, including principal and interest. Our weighted average debt service coverage ratio was 1.9X at both periods ended March 31, 2024 and December 31, 2023. The debt service coverage ratios are updated when additional relevant information becomes available.
The following table presents loan-to-value ratios for commercial mortgages by year of vintage*:
March 31, 2024
(in millions)20242023202220212020PriorTotal
Less than 65%$702$2,148$4,559$2,341$1,148$12,289$23,187
65% to 75%—2782,1626602864,8118,197
76% to 80%———89—773862
Greater than 80%——5863171511,3512,405
Total commercial mortgages$702$2,426$7,307$3,407$1,585$19,224$34,651
December 31, 2023
(in millions)20232022202120202019PriorTotal
Less than 65%$2,088 $4,470 $2,249 $1,126 $2,676 $10,186 $22,795 
65% to 75%280 1,748 658 287 1,916 2,853 7,742 
76% to 80%— 343 89 — 377 340 1,149 
Greater than 80%79 598 279 151 — 1,379 2,486 
Total commercial mortgages$2,447 $7,159 $3,275 $1,564 $4,969 $14,758 $34,172 
*    The loan-to-value ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing the loan. Our weighted average loan-to-value ratio was 59% at both periods ended March 31, 2024, and December 31, 2023. The loan-to-value ratios have been updated within the last three months to reflect the current carrying values of the loans. We update the valuations of collateral properties by obtaining independent appraisals, generally at least once per year.
The following table presents the credit quality performance indicators for commercial mortgages:
(dollars in millions)Number
of
Loans		ClassPercent
 of
Total
 ApartmentsOfficesRetailIndustrialHotelOthers
Total
March 31, 2024
Credit Quality Performance Indicator:
In good standing600$13,970$8,391$3,743$6,092$1,793$403$34,39299%
90 days or less delinquent(a)
2—61180———2411%
>90 days delinquent or in
process of foreclosure
1—18————18—%
Total(b)
603$13,970$8,470$3,923$6,092$1,793$403$34,651100%
Allowance for credit losses$75$355$79$89$31$5$6342 %
December 31, 2023
Credit Quality Performance Indicator:
In good standing600$13,861$8,468$3,787$5,908$1,805$325$34,154100%
90 days or less delinquent1—18————18—%
>90 days delinquent or in
process of foreclosure
—————————%
Total(b)
601$13,861$8,486$3,787$5,908$1,805$325$34,172100%
Allowance for credit losses$85$340$74$83$27$5$6142 %
(a)Includes $61 million of Offices loans and $20 million of Retail loans supporting the Fortitude Re Funds Withheld arrangements, 90 days or less delinquent, at March 31, 2024.
(b)Does not reflect allowance for credit losses.
The following table presents credit quality performance indicators for residential mortgages by year of vintage:
March 31, 2024
(in millions)20242023202220212020PriorTotal
FICO*:
780 and greater$55$639$592$2,292$642$737$4,957
720 - 7791981,1175375421503132,857
660 - 7196936323213140158993
600 - 659—1135181057131
Less than 600—218952862
Total residential mortgages$322$2,132$1,414$2,992$847$1,293$9,000
December 31, 2023
(in millions)20232022202120202019PriorTotal
FICO*:
780 and greater$514$528$2,280$619$239$497$4,677
720 - 7791,121608558168992092,763
660 - 7193132561134037120879
600 - 659220118951101
Less than 600——2241725
Total residential mortgages$1,950$1,412$2,964$837$388$894$8,445
*    Fair Isaac Corporation (“FICO”) is the credit quality indicator used to evaluate consumer credit risk for residential mortgage loan borrowers and have been updated within the last twelve months. FICO scores for residential mortgage investor loans to corporate entities are those of the guarantor at time of purchase. On March 31, 2024 and December 31, 2023 residential loans direct to consumers totaled $2.3 billion and $1.7 billion, respectively.
Allowance for Credit Loss
The following table presents a rollforward of the changes in the allowance for credit losses on Mortgage and other loans receivable*:
Three Months Ended March 31,20242023
(in millions)Commercial MortgagesOther LoansTotalCommercial MortgagesOther LoansTotal
Allowance, beginning of period$614$84$698$531$69$600
Loans charged off—(6)(6)———
Net charge-offs—(6)(6)— —— 
Addition to (release of) allowance for loan losses20222554 59 
Divestitures
——————
Allowance, end of period$634$80$714$586$73$659
*    Does not include allowance for credit losses of $48 million and $54 million, respectively, at March 31, 2024 and 2023 in relation to the off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities in the Condensed Consolidated Balance Sheets