The Account’s loan receivable portfolio is primarily comprised of mezzanine loans secured by the borrower’s indirect interests in commercial real estate. Mezzanine loans are subordinate to first mortgages on the underlying real estate collateral. The following property types represent the underlying real estate collateral for the Account's mezzanine loans (in millions):


	June 30, 2025						December 31, 2024

	Principal Outstanding		Fair Value		% of Fair Value		Principal Outstanding		Fair Value		% of Fair Value
Office(1)	$	823.7	$	515.8	60.8	%	$	911.5	$	518.7	59.1	%
Apartment(1)	157.7		153.8		18.1	%	185.0		179.7		20.5	%
Industrial	134.3		134.3		15.8	%	134.3		134.3		15.3	%

Retail	44.0		40.5		4.8	%	44.0		40.5		4.6	%
Land	4.7		4.7		0.5	%	4.6		4.6		0.5	%
	$	1,164.4	$	849.1	100.0	%	$	1,279.4	$	877.8	100.0	%

The Account monitors the risk profile of the loan receivable portfolio with the assistance of a third-party rating service that models the loans and assigns risk ratings based on inputs such as loan-to-value ratios, yields, credit quality of the borrowers, property types of the collateral, geographic and local market dynamics, physical condition of the collateral, and the underlying structure of the loans. Ratings for loans are updated monthly. Assigned ratings can range from AAA to C, with an AAA designation representing debt with the lowest level of credit risk and C representing a greater risk of default or principal loss. Loans that are delinquent or in default are generally assigned a D rating unless the value of the collateral asset is estimated to be greater than, or equal to, the outstanding loan balance. Debt in good health is typically reflective of a risk rating in the B range (e.g., BBB, BB, or B), as these ratings reflect borrowers' having adequate financial resources to service their financial commitments, or the value of the collateral asset is estimated to be greater than, or equal to, the outstanding loan balance, but also acknowledging that adverse economic conditions, should they occur, would likely impede on a borrowers' ability to pay.


	June 30, 2025					December 31, 2024
	Number of Loans	Fair Value		% of Fair Value		Number of Loans	Fair Value		% of Fair Value





BBB+	—	—		—	%	2	199.0		22.7	%
BBB	3	280.8		33.1	%	1	131.5		15.0	%
BBB-	—	—		—	%	1	45.3		5.2	%
BB+	1	99.1		11.7	%	—	—		—	%
BB	—	—		—	%	1	54.7		6.2	%
BB-	2	160.8		18.9	%	1	33.1		3.8	%
B+	2	71.6		8.4	%	—	—		—	%
B	1	88.2		10.4	%	3	231.6		26.4	%

CCC+	1	40.5		4.8	%	1	17.5		2.0	%
CCC	—	—		—	%	1	40.5		4.6	%
CCC-	1	28.5		3.3	%	—	—		—	%
CC	1	9.4		1.1	%	—	—		—	%
C	—	—		—	%	1	26.7		3.0	%
D	5	—		—	%	6	—		—	%
NR(1)	4	70.2		8.3	%	5	97.9		11.1	%
	21	$	849.1	100.0	%	23	$	877.8	100.0	%

The Account recognizes interest income from real estate loans when it is earned and deemed collectible, or until the loan becomes past due in accordance with the terms of the loan agreement. Loans are placed in nonaccrual status if they are more than 90 days in arrears or if management determines the full collection of either interest or principal is unlikely. If a loan is not yet matured, any payments received while in nonaccrual status are first applied to reduce any account receivables. Once all accrued interest is collected, subsequent payments are recognized as income. No amounts are applied to the principal balance unless the loan is amortizing. For amortizing loans, payments are allocated between principal and interest based on the terms of the loan agreement. A loan may be returned to accrual status once all past due amounts have been fully repaid and the borrower has demonstrated the ability to meet ongoing payment obligations in accordance with the agreement.