Mortgage and other loans receivable include commercial mortgages, residential mortgages, policy loans on life and annuity contracts, commercial loans, and other loans and notes receivable. Commercial mortgages, residential mortgages, commercial loans, and other loans and notes receivable are carried at unpaid principal balances less allowance for credit losses and plus or minus adjustments for the accretion or amortization of discount or premium. Interest income on such loans is accrued as earned.

Direct costs of originating commercial mortgages, commercial loans, and other loans and notes receivable, net of nonrefundable points and fees, are deferred and included in the carrying amount of the related receivables. The amount deferred is amortized to income as an adjustment to earnings using the interest method. Premiums and discounts on purchased residential mortgages are also amortized to income as an adjustment to earnings using the interest method.

Policy loans on life and annuity contracts are carried at unpaid principal balances. There is no allowance for policy loans because these loans serve to reduce the death benefit paid when the death claim is made, and the balances are effectively collateralized by the cash surrender value of the policy or annuity.


(in millions)	December 31, 2022		December 31, 2021
Commercial mortgages(a)	$	32,993	$	30,528
Residential mortgages	5,856		4,672
Life insurance policy loans	1,750		1,832
Commercial loans, other loans and notes receivable(b)	4,567		2,852
Total mortgage and other loans receivable	45,166		39,884
Allowance for credit losses(c)	(600)		(496)
Mortgage and other loans receivable, net	$	44,566	$	39,388

(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 20% and 11%, respectively, at December 31, 2022, and 22% and 10%, respectively, at December 31, 2021). The weighted average loan-to-value ratio for NY and CA was 59% and 53% at December 31, 2022, respectively, and 51% and 53% at December 31, 2021, respectively. The debt service coverage ratio for NY and CA was 2.0X and 2.1X at December 31, 2022, respectively, and 2.0X and 1.9X at December 31, 2021, respectively.

(b)Includes loans held for sale which are carried at lower cost or market, determined on an individual loan basis, and are collateralized primarily by apartments. As of December 31, 2022 and December 31, 2021, the net carrying value of these loans was $170 million and $15 million, respectively.

(c)Does not include allowance for credit losses of $60 million and $57 million at December 31, 2022 and December 31, 2021, respectively in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.

Interest income is not accrued when payment of contractual principal and interest is not expected. Any cash received on impaired loans is generally recorded as a reduction of the current carrying amount of the loan. Accrual of interest income is generally resumed when delinquent contractual principal and interest are repaid or when a portion of the delinquent contractual payments are made, and the ongoing required contractual payments have been made for an appropriate period. As of December 31, 2022, $3 million and $623 million of residential mortgage loans and commercial mortgage loans, respectively, were placed on nonaccrual status. As of December 31, 2021, $7 million and $118 million of residential mortgage loans and commercial mortgage loans, respectively, were placed on nonaccrual status.

Accrued interest is presented separately and is included in Accrued investment income on the Consolidated Balance Sheets. As of December 31, 2022, accrued interest receivable was $15 million and $130 million associated with residential mortgage loans and commercial mortgage loans, respectively. As of December 31, 2021, accrued interest receivable was $11 million and $109 million associated with residential mortgage loans and commercial mortgage loans, respectively.

A significant majority of commercial mortgages in the portfolio are non-recourse loans and, accordingly, the only guarantees are for specific items that are exceptions to the non-recourse provisions. It is therefore extremely rare for us to have cause to enforce the provisions of a guarantee on a commercial real estate or mortgage loan.


December 31, 2022
(in millions)	2022		2021		2020		2019		2018		Prior		Total
>1.2X	$	5,382	$	2,043	$	1,521	$	4,832	$	3,505	$	9,948	$	27,231
1.00 - 1.20X	859		734		388		343		470		1,088		3,882
<1.00X	37		—		23		52		707		1,061		1,880
Total commercial mortgages	$	6,278	$	2,777	$	1,932	$	5,227	$	4,682	$	12,097	$	32,993
December 31, 2021
(in millions)	2021		2020		2019		2018		2017		Prior		Total
>1.2X	$	1,861	$	1,520	$	4,915	$	3,300	$	2,997	$	9,005	$	23,598
1.00 - 1.20X	463		810		598		1,030		88		1,684		4,673
<1.00X	—		27		71		826		—		1,333		2,257
Total commercial mortgages	$	2,324	$	2,357	$	5,584	$	5,156	$	3,085	$	12,022	$	30,528


December 31, 2022
(in millions)	2022		2021		2020		2019		2018		Prior		Total
Less than 65%	$	5,270	$	2,061	$	1,515	$	3,752	$	2,666	$	9,205	$	24,469
65% to 75%	973		435		391		1,425		1,356		1,184		5,764
76% to 80%	35		43		—		—		70		218		366
Greater than 80%	—		238		26		50		590		1,490		2,394
Total commercial mortgages	$	6,278	$	2,777	$	1,932	$	5,227	$	4,682	$	12,097	$	32,993

December 31, 2021
(in millions)	2021		2020		2019		2018		2017		Prior		Total
Less than 65%	$	1,859	$	1,935	$	3,912	$	4,072	$	2,384	$	8,264	$	22,426
65% to 75%	304		396		1,672		1,084		340		2,814		6,610
76% to 80%	—		—		—		—		188		259		447
Greater than 80%	161		26		—		—		173		685		1,045
Total commercial mortgages	$	2,324	$	2,357	$	5,584	$	5,156	$	3,085	$	12,022	$	30,528

(a)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 December 31, 2022 and 1.9X at December 31, 2021. The debt service coverage ratios have been updated within the last three months. The debt service coverage ratios are updated when additional information becomes available.

(b)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 December 31, 2022, and 57% at December 31, 2021. The loan-to-value ratios have been updated within the last three to nine months.


(dollars in millions)	Number of Loans	Class														Percent of Total
		Apartments		Offices		Retail		Industrial		Hotel		Others		Total(c)
December 31, 2022
Credit Quality Performance Indicator:
In good standing	599	$	13,226	$	8,470	$	3,192	$	5,417	$	1,749	$	290	$	32,344	98%
Restructured(a)	9	—		329		94		—		59		—		482		1%
90 days or less delinquent	—	—		—		—		—		—		—		—		—%
>90 days delinquent or in process of foreclosure	3	—		167		—		—		—		—		167		1%
Total(b)	611	$	13,226	$	8,966	$	3,286	$	5,417	$	1,808	$	290	$	32,993	100%
Allowance for credit losses		$	89	$	294	$	54	$	65	$	23	$	6	$	531	2	%

December 31, 2021
Credit Quality Performance Indicator:
In good standing	613	$	12,394	$	8,370	$	4,026	$	3,262	$	1,726	$	301	$	30,079	99%
Restructured(a)	7	—		269		17		—		104		—		390		1%
90 days or less delinquent	—	—		—		—		—		—		—		—		—%
>90 days delinquent or in process of foreclosure	4	—		59		—		—		—		—		59		—%
Total(b)	624	$	12,394	$	8,698	$	4,043	$	3,262	$	1,830	$	301	$	30,528	100%
Allowance for credit losses		$	93	$	193	$	69	$	39	$	23	$	6	$	423	1	%

(c) Our commercial mortgage loan portfolio is current as to payments of principal and interest, for both periods presented. There were no significant amounts of nonperforming commercial mortgages (defined as those loans where payment of contractual principal or interest is more than 90 days past due) during any of the periods presented.


December 31, 2022
(in millions)	2022		2021		2020		2019		2018		Prior		Total
FICO*:
780 and greater	$	294	$	2,141	$	652	$	229	$	76	$	437	$	3,829
720 - 779	536		711		167		75		32		134		1,655
660 - 719	163		79		28		16		9		47		342
600 - 659	2		4		2		1		2		13		24
Less than 600	—		—		—		1		—		5		6
Total residential mortgages	$	995	$	2,935	$	849	$	322	$	119	$	636	$	5,856

December 31, 2021
(in millions)	2021		2020		2019		2018		2017		Prior		Total
FICO*:
780 and greater	$	1,398	$	678	$	284	$	100	$	107	$	325	$	2,892
720 - 779	1,118		225		83		41		36		94		1,597
660 - 719	44		39		20		11		13		33		160
600 - 659	1		1		2		3		2		6		15
Less than 600	—		—		—		1		1		6		8
Total residential mortgages	$	2,561	$	943	$	389	$	156	$	159	$	464	$	4,672

At the time of origination or purchase, an allowance for credit losses is established for mortgage and other loan receivables and is updated each reporting period. Changes in the allowance for credit losses are recorded in net realized gains (losses). This allowance reflects the risk of loss, even when that risk is remote, and reflects losses expected over the remaining contractual life of the loan. The allowance for credit losses considers available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts of future economic conditions. We revert to historical information when we determine that we can no longer reliably forecast future economic assumptions.

The allowances for the commercial mortgage loans and residential mortgage loans are estimated utilizing a probability of default and loss given default model. Loss rate factors are determined based on historical data and adjusted for current and forecasted information. The loss rates are applied based on individual loan attributes and considering such data points as loan-to-value ratios, FICO scores, and debt service coverage.

The estimate of credit losses also reflects management’s assumptions on certain macroeconomic factors that include, but are not limited to, gross domestic product growth, employment, inflation, housing price index, interest rates and credit spreads.

We also have off-balance sheet commitments related to our commercial mortgage loans. The liability for expected credit losses related to these commercial mortgage loan commitments is reported in Other liabilities in the Consolidated Balance Sheets. When a commitment is funded, we record a loan receivable and reclassify the liability for expected credit losses related to the commitment into loan allowance for expected credit losses. Other changes in the liability for expected credit losses on loan commitments are recorded in Net realized gains (losses) in the Consolidated Statements of Income (Loss).


Years Ended December 31,	2022				2021				2020
(in millions)	Commercial Mortgages		Other Loans		Total		Commercial Mortgages		Other Loans		Total		Commercial Mortgages		Other Loans		Total
Allowance, beginning of year	$	423	$	73	$	496	$	546	$	111	$	657	$	266	$	91	$	357
Initial allowance upon CECL adoption	—		—		—		—		—		—		272		2		274
Loans charged off	(13)		—		(13)		(1)		—		(1)		(12)		(5)		(17)

Net charge-offs	(13)		—		(13)		(1)		—		(1)		(12)		(5)		(17)
Addition to (release of) allowance for loan losses	121		(4)		117		(122)		(19)		(141)		20		23		43

Divestitures	—		—		—		—		(19)		(19)		—		—		—

Allowance, end of year	$	531	$	69	$	600	$	423	$	73	$	496	$	546	$	111	$	657

* Does not include allowance for credit losses of $60 million, $57 million and $57 million, respectively, at December 31, 2022, 2021 and 2020 in relation to the off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities in the Consolidated Balance Sheets.

As a result of the COVID-19 pandemic, including the significant global economic slowdown and general market decline, our expectations and models used to estimate the allowance for losses on commercial and residential mortgage loans have been updated to reflect the economic environment. The full impact of COVID-19 on real estate valuations remains uncertain and we will continue to review our valuations as further information becomes available.

We modify loans to optimize their returns and improve their collectability, among other things. When we undertake such a modification with a borrower that is experiencing financial difficulty and the modification involves us granting a concession to the troubled debtor, the modification is a troubled debt restructuring (“TDR”). We assess whether a borrower is experiencing financial difficulty based on a variety of factors, including the borrower’s current default on any of its outstanding debt, the probability of a default on any of its debt in the foreseeable future without the modification, the insufficiency of the borrower’s forecasted cash flows to service any of its outstanding debt (including both principal and interest) and the borrower’s inability to access alternative third-party financing at an interest rate that would be reflective of current market conditions for a non-troubled debtor. Concessions granted may include extended maturity dates, interest rate changes, principal or interest forgiveness, payment deferrals and easing of loan covenants.