v3.26.1
MORTGAGE LOANS ON REAL ESTATE
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
MORTGAGE LOANS ON REAL ESTATE MORTGAGE LOANS ON REAL ESTATE
The Company disaggregates its mortgage loan investments into two portfolio segments: commercial and residential. Commercial mortgage loans include agricultural mortgage loans. The breakdown of mortgage loans on real estate by portfolio segment is as follows:
AS OF
US$ MILLIONS		June 30, 2026December 31, 2025
Commercial mortgage loans$11,486 $8,927 
Residential mortgage loans2,667 2,417 
Total14,153 11,344 
Allowance for credit losses(132)(113)
Total, net of allowance$14,021 $11,231 
The Company’s commercial mortgage loan portfolio consists of loans collateralized by the related properties and diversified as to property type, location and loan size. The commercial mortgage loan portfolio is summarized by geographic region and property type as follows:
AS OF
US$ MILLIONS, EXCEPT FOR PERCENTAGES		June 30, 2026December 31, 2025
AmountPercentageAmountPercentage
Geographic distribution:
U.S.:
Pacific$2,737 24 %$2,291 25 %
Mountain1,603 14 %1,409 16 %
West North Central218 2 %255 3 %
West South Central1,273 11 %1,197 13 %
East North Central691 6 %825 9 %
East South Central203 2 %146 2 %
Middle Atlantic699 6 %718 8 %
South Atlantic1,671 15 %1,831 21 %
New England157 1 %158 2 %
U.K.2,188 19 %22 0 %
Other (multi-region and other international)46 0 %75 1 %
Total$11,486 100 %$8,927 100 %
Allowance for credit losses(112)(99)
Total, net of allowance$11,374 $8,828 
AS OF
US$ MILLIONS, EXCEPT FOR PERCENTAGES		June 30, 2026December 31, 2025
AmountPercentageAmountPercentage
Property type distribution:
Agricultural$336 3 %$349 4 %
Apartment3,463 30 %2,461 28 %
Hotel1,194 10 %989 11 %
Industrial1,858 16 %1,825 20 %
Office2,006 18 %1,350 15 %
Parking176 2 %207 2 %
Retail1,631 14 %1,397 16 %
Storage139 1 %114 1 %
Other683 6 %235 3 %
Total$11,486 100 %$8,927 100 %
Allowance for credit losses(112)(99)
Total, net of allowance$11,374 $8,828 
Interest income recognized on loans in non-accrual status and impaired loans was not significant for any of the periods presented.
Allowance for Credit Losses
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. The rollforward of the allowance for credit losses for mortgage loans for the three and six months ended June 30, 2026 and 2025 is shown below:

20262025
FOR THE PERIODS ENDED JUN. 30
US$ MILLIONS		Commercial mortgage loansResidential mortgage loansCommercial mortgage loansResidential mortgage loans
Balance as of January 1$(99)$(14)$(149)$(9)
Provision(6)(6)(12)(1)
Write-offs charged against the allowance16 1 3 — 
Balance as of March 31$(89)$(19)$(158)$(10)
Recovery (provision)(26)(2)18 (3)
Write-offs charged against the allowance3 1 — — 
Balance as of June 30$(112)$(20)$(140)$(13)
Credit Quality Indicators
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:
AS OF JUN. 30, 2026
US$ MILLIONS		Amortized Cost Basis by Origination Year
20262025202420232022PriorTotal
Commercial mortgage loans:
Current$595 $1,371 $1,009 $930 $2,715 $4,481 $11,101 
30-59 days past due— — — 45 — 95 140 
60-89 days past due— — — — — 44 44 
Non-accrual— 8 — — 39 154 201 
Residential mortgage loans:
Current307 501 268 296 690 322 2,384 
30-59 days past due3 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$905 $1,893 $1,296 $1,358 $3,565 $5,136 $14,153 
Allowance for credit losses(132)
Total, net of allowance$14,021 
AS OF DEC. 31, 2025
US$ MILLIONS		Amortized Cost Basis by Origination Year
20252024202320222021PriorTotal
Commercial mortgage loans:
Current$1,112 $358 $309 $2,119 $978 $3,666 $8,542 
30-59 days past due— 83 — 94 — — 177 
60-89 days past due— — 29 10 — 2 41 
Non-accrual— — — 11 59 97 167 
Residential mortgage loans:
Current376 302 390 766 182 114 2,130 
30-59 days past due3 9 18 34 11 5 80 
60-89 days past due1 2 11 22 2 2 40 
Non-accrual1 4 76 66 10 10 167 
Total mortgage loans on real estate$1,493 $758 $833 $3,122 $1,242 $3,896 $11,344 
Allowance for credit losses(113)
Total, net of allowance$11,231 
It is the Company’s policy to not accrue interest on loans that are 90 days delinquent and where amounts are determined to be uncollectible. As of June 30, 2026, 265 mortgage loans were past due over 90 days or in non-accrual status (December 31, 2025 – 279 mortgage loans).
The Company’s commercial and residential mortgage loans may be subject to loan modifications. Loan modifications may be granted to borrowers experiencing financial difficulty and could include principal forgiveness, interest rate reduction, an other-than-insignificant payment delay or a term extension. A loan modification typically does not result in a change in valuation allowance as it is already incorporated into the Company’s allowance methodology. However, if the Company grants a borrower experiencing financial difficulty principal forgiveness, the amount of principal forgiven would be written off, which would reduce the amortized cost of the loan and result in an adjustment to the valuation allowance. The carrying amounts of mortgage loans experiencing financial difficulty were not significant for any of the periods presented.
PRIVATE LOANS
The following table summarizes the credit ratings of our private loans:
AS OF
US$ MILLIONS		June 30, 2026December 31, 2025
A or higher$2,108 $2,148 
BBB1,728 1,342 
BB and below2,884 2,918 
Unrated(1)
2,687 2,007 
Total$9,407 $8,415 
__________________________
(1)Due to the nature of private loans, external agency credit ratings may not be readily available. Where appropriate, the Company obtains non-published credit ratings from one or more third-party rating agencies, which are determined based on an independent evaluation of the transaction. For other loans without published or private credit ratings, the Company assigns internal risk ratings, based on its investment selection and monitoring process and policies. These internal risk ratings are categorized as “Unrated” above.
Allowance for Credit Losses
The rollforward of the allowance for credit losses for private loans is shown below:
FOR THE PERIODS ENDED JUN. 30
US$ MILLIONS		20262025
Balance as of January 1$(181)$(97)
Recovery (provision)11 (8)
Balance as of March 31$(170)$(105)
Recovery (provision)18 (10)
Write-offs charged against the allowance22 — 
Balance as of June 30$(130)$(115)
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 for borrowers experiencing financial difficulty. Impaired loans were not significant for any of the periods presented.