LENDING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2014

Composition of Mortgages and other loans receivable

	December 31,			December 31,
(in millions)		2014		2013
Commercial mortgages^*	$	18,909	$	16,195
Life insurance policy loans		2,710		2,830
Commercial loans, other loans and notes receivable		3,642		2,052
Total mortgage and other loans receivable		25,261		21,077
Allowance for losses		(271)		(312)
Mortgage and other loans receivable, net	$	24,990	$	20,765

* Commercial mortgages primarily represent loans for apartments, offices, retail and industrial properties, with exposures in California and New York representing the largest geographic concentrations (14 percent and 18 percent, respectively, at December 31, 2014 and 18 percent and 17 percent, respectively, at December 31, 2013).

Schedule of credit quality indicators for the commercial mortgage loans

	Number															Percent
December 31, 2014	of	Class														of
(dollars in millions)	Loans	Apartments			Offices		Retail	Industrial			Hotel		Others		Total^(c)	Total $
Credit Quality Indicator:
In good standing	1,007	$	3,384	$	6,100	$	3,807	$	1,689	$	1,660	$	1,812	$	18,452	98	%
Restructured^(a)	7		-		343		7		-		17		-		367	2
90 days or less delinquent	6		-		-		10		-		-		5		15	-
>90 days delinquent or in
process of foreclosure	4		-		75		-		-		-		-		75	-
Total^(b)	1,024	$	3,384	$	6,518	$	3,824	$	1,689	$	1,677	$	1,817	$	18,909	100	%
Allowance for losses		$	3	$	86	$	28	$	22	$	6	$	14	$	159	1	%
December 31, 2013
(dollars in millions)
Credit Quality Indicator:
In good standing	978	$	2,786	$	4,636	$	3,364	$	1,607	$	1,431	$	1,970	$	15,794	98	%
Restructured^(a)	9		53		210		6		-		-		85		354	2
90 days or less delinquent	2		-		-		5		-		-		-		5	-
>90 days delinquent or in
process of foreclosure	6		-		42		-		-		-		-		42	-
Total^(b)	995	$	2,839	$	4,888	$	3,375	$	1,607	$	1,431	$	2,055	$	16,195	100	%
Allowance for losses		$	10	$	109	$	9	$	19	$	3	$	51	$	201	1	%

(a) Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. See discussion of troubled debt restructurings below.

(b) Does not reflect allowance for losses.

(c) Over 99 percent of the commercial mortgages held at such respective dates were current as to payments of principal and interest.

Schedule of changes in the allowance for losses on Mortgage and other loans receivable

	2014						2013						2012
Years Ended December 31,		Commercial		Other				Commercial		Other				Commercial		Other
(in millions)		Mortgages		Loans		Total		Mortgages		Loans		Total		Mortgages		Loans		Total
Allowance, beginning of year	$	201	$	111	$	312	$	159	$	246	$	405	$	305	$	435	$	740
Loans charged off		(29)		(39)		(68)		(12)		(104)		(116)		(23)		(21)		(44)
Recoveries of loans previously
charged off		18		16		34		3		6		9		13		4		17
Net charge-offs		(11)		(23)		(34)		(9)		(98)		(107)		(10)		(17)		(27)
Provision for loan losses		(31)		23		(8)		52		(32)		20		(136)		33		(103)
Other		-		1		1		(1)		(5)		(6)		-		-		-
Activity of discontinued operations		-		-		-		-		-		-		-		(205)		(205)
Allowance, end of year	$	159 ^*	$	112	$	271	$	201 ^*	$	111	$	312	$	159 ^*	$	246	$	405

* Of the total allowance at the end of the year, $55 million and $93 million relates to individually assessed credit losses on $192 million and $264 million of commercial mortgage loans as of December 31, 2014 and 2013, respectively.