The Company’s commercial mortgage loan portfolio consists of loans collateralized by the related properties and diversified as to property type, location and loan size. The commercial mortgage loan portfolio is summarized by geographic region and property type as follows:


	June 30, 2026				December 31, 2025
	Amount		Percentage		Amount		Percentage
	(Dollars in millions)
Geographic distribution:
Pacific	$	2,684	30	%	$	2,230	25	%
Mountain	1,472		16	%	1,400		16	%
West North Central	204		2	%	232		3	%
West South Central	1,250		14	%	1,173		13	%
East North Central	679		7	%	800		9	%
East South Central	191		2	%	135		2	%
Middle Atlantic	647		7	%	658		7	%
South Atlantic	1,649		18	%	1,805		20	%
New England	140		2	%	140		2	%

Other (multi-region and other non-US countries)	166		2	%	227		3	%
	9,082		100	%	8,800		100	%
Allowance for credit losses	(92)				(87)
Total, net of allowance	$	8,990			$	8,713

Property type distribution:
Agricultural	$	336	4	%	$	349	4	%
Apartment	3,132		34	%	2,346		27	%
Hotel	866		10	%	967		11	%
Industrial	1,635		17	%	1,797		21	%
Office	1,430		16	%	1,435		16	%
Parking	176		2	%	207		2	%
Retail	1,238		14	%	1,352		15	%
Storage	103		1	%	114		1	%
Other	166		2	%	233		3	%
	9,082		100	%	8,800		100	%
Allowance for credit losses	(92)				(87)
Total, net of allowance	$	8,990			$	8,713

The Company establishes a valuation allowance to provide for the risk of credit losses inherent in its mortgage loan portfolios. The valuation allowance is maintained at a level believed adequate by management to absorb estimated expected credit losses. The valuation allowance is based on amortized cost, which excludes accrued interest receivable. The Company does not measure a credit loss allowance on accrued interest receivable, and any uncollectible accrued interest receivable balances are written off to net investment income in a timely manner. The amount of uncollectible accrued interest receivable on its commercial or residential mortgage loan portfolios that was written off was not significant for any of the periods presented.


	2026				2025
	Commercial Mortgage Loans		Residential Mortgage Loans		Commercial Mortgage Loans		Residential Mortgage Loans
	(Dollars in millions)
Balance, as of January 1	$	(87)	$	(13)	$	(144)	$	(9)

Provision	(4)		(6)		(1)		(1)
Writeoffs charged against the allowance	12		1		3		—

Balance, as of March 31	(79)		(18)		(142)		(10)

Recovery (provision)	(15)		(3)		15		(3)
Writeoffs charged against the allowance	2		1		—		—
Recoveries of amounts previously written off	—		—		4		—
Balance, as of June 30	$	(92)	$	(20)	$	(123)	$	(13)

Mortgage loans are segregated by property-type and quantitative and qualitative allowance factors are applied. Qualitative factors are developed quarterly based on the pooling of assets with similar risk characteristics and historical loss experience adjusted for the expected trend in the current market environment. Credit losses are pooled by property type as it represents the most similar and reliable risk characteristics in our portfolio. The amortized cost of mortgage loans by year of origination and aging category is shown below:


	Amortized Cost Basis by Origination Year
	2026		2025		2024		2023		2022		Prior		Total
As of June 30, 2026:	(Dollars in millions)
Commercial mortgage loans
Current	$	424	$	894	$	512	$	298	$	2,405	$	4,178	$	8,711
30 - 59 days past due	—		—		—		45		—		95		140
60 - 89 days past due	—		—		—		—		—		44		44
Non-accrual	—		8		—		—		25		154		187
Residential mortgage loans
Current	307		501		268		271		682		272		2,301
30 - 59 days past due	3		9		8		20		42		18		100
60 - 89 days past due	—		2		2		2		11		1		18
Non-accrual	—		2		9		65		68		21		165
Total mortgage loans on real estate	$	734	$	1,416	$	799	$	701	$	3,233	$	4,783	11,666
Allowance for credit losses													(112)
Total, net of allowance													$	11,554

	Amortized Cost Basis by Origination Year
	2025		2024		2023		2022		2021		Prior		Total
As of December 31, 2025:	(Dollars in millions)
Commercial mortgage loans
Current	$	1,093	$	354	$	442	$	1,929	$	978	$	3,647	$	8,443
30 - 59 days past due	—		83		—		94		—		—		177
60 - 89 days past due	—		—		29		10		—		2		41
Non-accrual	—		—		—		9		33		97		139
Residential mortgage loans
Current	376		300		390		764		182		114		2,126
30 - 59 days past due	3		9		18		34		11		5		80
60 - 89 days past due	1		2		11		22		2		2		40
Non-accrual	1		4		76		66		10		10		167
Total mortgage loans on real estate	$	1,474	$	752	$	966	$	2,928	$	1,216	$	3,877	11,213
Allowance for credit losses													(100)
Total, net of allowance													$	11,113

It is the Company’s policy to not accrue interest on loans that are 90 days delinquent and where amounts are determined to be uncollectible. As of June 30, 2026 and December 31, 2025, 264 mortgage loans and 275 mortgage loans, respectively, were past due over 90 days or in nonaccrual status.

The Company’s commercial and residential mortgage loans may be subject to loan modifications. Loan modifications may be granted to borrowers experiencing financial difficulty and could include principal forgiveness, interest rate reduction, an other-than-insignificant payment delay or a term extension. A loan modification typically does not result in a change in valuation allowance as it is already incorporated into the Company’s allowance methodology. However, if the Company grants a borrower experiencing financial difficulty principal forgiveness, the amount of principal forgiven would be written off, which would reduce the amortized cost of the loan and result in an adjustment to the valuation allowance. The carrying amount of mortgage loans experiencing financial difficulty, for which modifications have been granted, was $19 million and $89 million for the six months ended June 30, 2026 and 2025, respectively.

(1)Due to the private nature of private loans, external agency credit ratings may not be readily available. Where appropriate, the Company obtains non-published credit ratings from one or more third-party rating agencies, which are determined based on an independent evaluation of the transaction. For other loans without published or private credit ratings, the Company assigns internal risk ratings, based on its investment selection and monitoring process and policies. These internal risk ratings are categorized as “Unrated” above.

The Company’s private loans may be subject to loan modifications. Loan modifications may be granted to borrowers experiencing financial difficulties and could include term extensions. For the six months ended June 30, 2026 and 2025, the Company did not have a significant amount of private loans that it modified to borrowers experiencing financial difficulty. Impaired loans were not significant for any of the periods presented.