LENDING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2015

Composition of Mortgages and other loans receivable

	December 31,			December 31,
(in millions)		2015		2014
Commercial mortgages^*	$	22,067	$	18,909
Residential mortgages		2,758		1,007
Life insurance policy loans		2,597		2,710
Commercial loans, other loans and notes receivable		2,451		2,635
Total mortgage and other loans receivable		29,873		25,261
Allowance for credit losses		(308)		(271)
Mortgage and other loans receivable, net	$	29,565	$	24,990

* Commercial mortgages primarily represent loans for offices, retail and apartments, with exposures in New York and California representing the largest geographic concentrations (aggregating approximately 22 percent and 12 percent, respectively, at December 31, 2015, and 18 percent and 14 percent, respectively, at December 31, 2014).

Nonperforming loans are generally those loans where payment of contractual principal or interest is more than 90 days past due. Nonperforming mortgages were not significant for all periods presented.

Schedule of credit quality indicators for the commercial mortgage loans

	Number															Percent
December 31, 2015	of	Class														of
(dollars in millions)	Loans	Apartments			Offices		Retail	Industrial			Hotel		Others		Total^(c)	Total $
Credit Quality Indicator:
In good standing	830	$	3,916	$	7,484	$	4,809	$	1,902	$	2,082	$	1,435	$	21,628	98	%
Restructured^(a)	9		-		156		25		6		16		6		209	1
90 days or less delinquent	1		-		-		4		-		-		-		4	-
>90 days delinquent or in
process of foreclosure	9		3		205		-		6		-		12		226	1
Total^(b)	849	$	3,919	$	7,845	$	4,838	$	1,914	$	2,098	$	1,453	$	22,067	100	%
Allowance for credit losses:
Specific			-		16		1		6		1		-		24	-	%
General			35		47		29		8		15		13		147	1
Total allowance for credit losses		$	35	$	63	$	30	$	14	$	16	$	13	$	171	1	%
December 31, 2014
(dollars in millions)
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 credit losses:
Specific		$	-	$	27	$	3	$	13	$	3	$	9	$	55	-	%
General			3		59		25		9		3		5		104	1
Total allowance for credit losses		$	3	$	86	$	28	$	22	$	6	$	14	$	159	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 credit losses.

(c) Approximately 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

	2015						2014						2013
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	$	159	$	112	$	271	$	201	$	111	$	312	$	159	$	246	$	405
Loans charged off		(23)		(6)		(29)		(29)		(39)		(68)		(12)		(104)		(116)
Recoveries of loans previously
charged off		4		1		5		18		16		34		3		6		9
Net charge-offs		(19)		(5)		(24)		(11)		(23)		(34)		(9)		(98)		(107)
Provision for loan losses		31		27		58		(31)		23		(8)		52		(32)		20
Other		-		3		3		-		1		1		(1)		(5)		(6)
Allowance, end of year	$	171 ^*	$	137	$	308	$	159 ^*	$	112	$	271	$	201 ^*	$	111	$	312

* Of the total allowance at the end of the year, $24 million and $55 million relates to individually assessed credit losses on $507 million and $192 million of commercial mortgages as of December 31, 2015 and 2014, respectively.