Lending Activities (Tables)

6 Months Ended

Jun. 30, 2024

Composition of Mortgages and Other Loans Receivable

The following table presents the composition of Mortgage and other loans receivable, net:


(in millions)	June 30, 2024		December 31, 2023
Commercial mortgages(a)	$	34,686	$	34,172
Residential mortgages	9,670		8,445
Life insurance policy loans	1,747		1,746
Commercial loans, other loans and notes receivable(b)	3,318		3,202
Total mortgage and other loans receivable	49,421		47,565
Allowance for credit losses(c)	(758)		(698)
Mortgage and other loans receivable, net	$	48,663	$	46,867

(a)Commercial mortgages primarily represent loans for apartments, offices and retail properties, with exposures in New York and New Jersey representing the largest geographic concentrations (aggregating approximately 19% and 11%, respectively, at June 30, 2024, and 19% and 10%, respectively, at December 31, 2023). The weighted average loan-to-value ratio for NY and NJ was 63% and 60% at June 30, 2024, respectively, and 61% and 58% at December 31, 2023, respectively. The debt service coverage ratio for NY and NJ was 1.8X and 1.8X at June 30, 2024, respectively, and 1.9X and 1.9X 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 June 30, 2024 and December 31, 2023.

(c)Does not include allowance for credit losses of $43 million and $58 million at June 30, 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*:


June 30, 2024
(in millions)	2024		2023		2022		2021		2020		Prior		Total
>1.2X	$	916	$	2,160	$	6,236	$	2,127	$	1,270	$	15,711	$	28,420
1.00 - 1.20X	230		325		1,099		1,019		312		2,411		5,396
<1.00X	—		—		39		—		—		831		870
Total commercial mortgages	$	1,146	$	2,485	$	7,374	$	3,146	$	1,582	$	18,953	$	34,686
December 31, 2023
(in millions)	2023		2022		2021		2020		2019		Prior		Total
>1.2X	$	2,156	$	6,042	$	1,955	$	1,252	$	4,813	$	11,675	$	27,893
1.00 - 1.20X	291		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 June 30, 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*:


June 30, 2024
(in millions)	2024		2023		2022		2021		2020		Prior		Total
Less than 65%	$	1,075	$	2,099	$	4,878	$	2,285	$	1,140	$	12,132	$	23,609
65% to 75%	71		386		1,915		642		285		4,357		7,656
76% to 80%	—		—		—		47		—		724		771
Greater than 80%	—		—		581		172		157		1,740		2,650
Total commercial mortgages	$	1,146	$	2,485	$	7,374	$	3,146	$	1,582	$	18,953	$	34,686

December 31, 2023
(in millions)	2023		2022		2021		2020		2019		Prior		Total
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 60% at June 30, 2024 and 59% at 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	Class														Percent of Total
		Apartments		Offices		Retail		Industrial		Hotel		Others		Total
June 30, 2024
Credit Quality Performance Indicator:
In good standing	588	$	14,114	$	8,299	$	3,723	$	5,963	$	1,785	$	431	$	34,315	99%

90 days or less delinquent	1	—		112		—		—		—		—		112		—%
>90 days delinquent or in process of foreclosure(a)	3	—		79		180		—		—		—		259		1%
Total(b)	592	$	14,114	$	8,490	$	3,903	$	5,963	$	1,785	$	431	$	34,686	100%
Allowance for credit losses		$	68	$	383	$	96	$	71	$	31	$	5	$	654	2	%

December 31, 2023
Credit Quality Performance Indicator:
In good standing	600	$	13,861	$	8,468	$	3,787	$	5,908	$	1,805	$	325	$	34,154	100%

90 days or less delinquent	1	—		18		—		—		—		—		18		—%
>90 days delinquent or in process of foreclosure	—	—		—		—		—		—		—		—		—%
Total(b)	601	$	13,861	$	8,486	$	3,787	$	5,908	$	1,805	$	325	$	34,172	100%
Allowance for credit losses		$	85	$	340	$	74	$	83	$	27	$	5	$	614	2	%

(a)Includes $61 million of Offices loans and $20 million of Retail loans supporting the Fortitude Re Funds Withheld arrangements, greater than 90 days delinquent or in process of foreclosure, at June 30, 2024

(b)Does not reflect allowance for credit losses.

The following table presents credit quality performance indicators for residential mortgages by year of vintage:


June 30, 2024
(in millions)	2024		2023		2022		2021		2020		Prior		Total
FICO*:
780 and greater	$	120	$	624	$	663	$	2,276	$	633	$	819	$	5,135
720 - 779	399		1,092		579		563		151		370		3,154
660 - 719	147		354		240		144		41		217		1,143
600 - 659	—		12		37		23		11		83		166
Less than 600	—		2		21		11		4		34		72
Total residential mortgages	$	666	$	2,084	$	1,540	$	3,017	$	840	$	1,523	$	9,670

December 31, 2023
(in millions)	2023		2022		2021		2020		2019		Prior		Total
FICO*:
780 and greater	$	514	$	528	$	2,280	$	619	$	239	$	497	$	4,677
720 - 779	1,121		608		558		168		99		209		2,763
660 - 719	313		256		113		40		37		120		879
600 - 659	2		20		11		8		9		51		101
Less than 600	—		—		2		2		4		17		25
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 June 30, 2024 and December 31, 2023 residential loans direct to consumers totaled $7.1 billion and $6.7 billion, respectively.

Allowance for Credit Losses

The following table presents a rollforward of the changes in the allowance for credit losses on Mortgage and other loans receivable*:


	2024						2023
(in millions)	Commercial Mortgages		Other Loans		Total		Commercial Mortgages		Other Loans		Total
Three Months Ended June 30,
Allowance, beginning of period	$	634	$	80	$	714	$	586	$	73	$	659
Loans charged off	—		—		—		(4)		—		(4)
Net charge-offs	—		—		—		(4)		—		(4)
Addition to (release of) allowance for loan losses	20		24		44		39		(5)		34
Allowance, end of period	$	654	$	104	$	758	$	621	$	68	$	689

Six Months Ended June 30,
Allowance, beginning of period	$	614	$	84	$	698	$	531	$	69	$	600
Loans charged off	—		(6)		(6)		(4)		—		(4)

Net charge-offs	—		(6)		(6)		(4)		—		(4)
Addition to (release of) allowance for loan losses	40		26		66		94		(1)		93



Allowance, end of period	$	654	$	104	$	758	$	621	$	68	$	689

*Does not include allowance for credit losses of $43 million and $74 million, respectively, at June 30, 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.