
(in millions)		June 30, 2023		December 31, 2022
Commercial mortgages(a)	$	37,926	$	37,128
Residential mortgages		7,708		6,130
Life insurance policy loans		1,762		1,758
Commercial loans, other loans and notes receivable(b)		5,015		5,305
Total mortgage and other loans receivable(c)		52,411		50,321
Allowance for credit losses(c)(d)		(806)		(716)
Mortgage and other loans receivable, net(c)	$	51,605	$	49,605

(a)Commercial mortgages primarily represent loans for apartments, offices and retail properties, with exposures in New York and California representing the largest geographic concentrations (aggregating approximately 18 percent and 11 percent, respectively, at June 30, 2023 and 19 percent and 11 percent, respectively, at December 31, 2022).

(b)Includes loans held for sale which are carried at lower of cost or market and are collateralized primarily by apartments. As of June 30, 2023 and December 31, 2022, the net carrying value of these loans were $186 million and $170 million, respectively.

(c)Excludes $37.6 billion at both June 30, 2023 and December 31, 2022 of loan receivable from AIGFP, which has a full allowance for credit losses, recognized upon the deconsolidation of AIGFP. For additional information, see Note 1.

(d)Does not include allowance for credit losses of $87 million and $69 million, respectively, at June 30, 2023 and December 31, 2022, in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.

Interest income is not accrued when payment of contractual principal and interest is not expected. Any cash received on impaired loans is generally recorded as a reduction of the current carrying amount of the loan. Accrual of interest income is generally resumed when delinquent contractual principal and interest is repaid or when a portion of the delinquent contractual payments are made and the ongoing required contractual payments have been made for an appropriate period. As of June 30, 2023, $6 million and $708 million of residential mortgage loans and commercial mortgage loans, respectively, are placed on nonaccrual status. As of December 31, 2022, $5 million and $703 million of residential mortgage loans and commercial mortgage loans, respectively, are placed on nonaccrual status.

Accrued interest is presented separately and is included in Accrued investment income on the Condensed Consolidated Balance Sheets. As of June 30, 2023, accrued interest receivable was $20 million and $171 million associated with residential mortgage loans and commercial mortgage loans, respectively. As of December 31, 2022, accrued interest receivable was $15 million and $147 million associated with residential mortgage loans and commercial mortgage loans, respectively.

A significant majority of commercial mortgages in the portfolio are non-recourse loans and, accordingly, the only guarantees are for specific items that are exceptions to the non-recourse provisions. It is therefore extremely rare for us to have cause to enforce the provisions of a guarantee on a commercial real estate or mortgage loan.

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


June 30, 2023		2023		2022		2021		2020		2019		Prior		Total
(in millions)
>1.2X	$	1,363	$	5,558	$	2,531	$	1,263	$	5,190	$	14,809	$	30,714
1.00 - 1.20X		54		1,138		1,152		912		230		1,771		5,257
<1.00X		67		50		—		23		—		1,815		1,955
Total commercial mortgages	$	1,484	$	6,746	$	3,683	$	2,198	$	5,420	$	18,395	$	37,926

December 31, 2022		2022		2021		2020		2019		2018		Prior		Total
(in millions)
>1.2X	$	5,518	$	2,457	$	1,710	$	4,985	$	4,120	$	11,663	$	30,453
1.00 - 1.20X		910		898		473		416		567		1,353		4,617
<1.00X		45		—		23		52		744		1,194		2,058
Total commercial mortgages	$	6,473	$	3,355	$	2,206	$	5,453	$	5,431	$	14,210	$	37,128


June 30, 2023		2023		2022		2021		2020		2019		Prior		Total
(in millions)
Less than 65%	$	1,048	$	5,172	$	2,744	$	1,956	$	3,948	$	13,155	$	28,023
65% to 75%		348		1,210		650		76		1,422		2,852		6,558
76% to 80%		—		364		52		—		—		469		885
Greater than 80%		88		—		237		166		50		1,919		2,460
Total commercial mortgages	$	1,484	$	6,746	$	3,683	$	2,198	$	5,420	$	18,395	$	37,926

December 31, 2022		2022		2021		2020		2019		2018		Prior		Total
(in millions)
Less than 65%	$	5,425	$	2,548	$	1,775	$	3,958	$	3,016	$	10,739	$	27,461
65% to 75%		998		517		405		1,445		1,487		1,393		6,245
76% to 80%		50		52		—		—		168		229		499
Greater than 80%		—		238		26		50		760		1,849		2,923
Total commercial mortgages	$	6,473	$	3,355	$	2,206	$	5,453	$	5,431	$	14,210	$	37,128

(a)The debt service coverage ratio compares a property’s net operating income to its debt service payments, including principal and interest. Our weighted average debt service coverage ratio was 1.9x at both periods ended on June 30, 2023 and December 31, 2022. The debt service coverage ratios are updated when additional relevant information becomes available.

(b)The loan-to-value ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing the loan. Our weighted average loan-to-value ratio was 58 percent at June 30, 2023 and 59 percent at December 31, 2022. The loan-to-value ratios have been updated within the last three months to reflect the current carrying values of the loans. We update the valuations of collateral properties by obtaining independent appraisals, generally at least once per year.


	Number of Loans		Class													Percent of Total
(dollars in millions)			Apartments		Offices		Retail		Industrial		Hotel		Others		Total
June 30, 2023
Past Due Status:
In good standing	618	$	15,282	$	9,766	$	4,000	$	6,180	$	2,062	$	437	$	37,727	99	%

90 days or less delinquent	—		—		—		—		—		—		—		—	—
>90 days delinquent or in process of foreclosure(a)	4		—		157		42		—		—		—		199	1
Total(b)	622	$	15,282	$	9,923	$	4,042	$	6,180	$	2,062	$	437	$	37,926	100	%
Allowance for credit losses		$	98	$	431	$	94	$	76	$	29	$	9	$	737	2	%


December 31, 2022
Past Due Status:
In good standing	625	$	14,597	$	10,102	$	3,774	$	6,006	$	2,027	$	407	$	36,913	99	%

90 days or less delinquent	—		—		—		—		—		—		—		—	—
>90 days delinquent or in process of foreclosure(a)	4		—		173		42		—		—		—		215	1
Total(b)	629	$	14,597	$	10,275	$	3,816	$	6,006	$	2,027	$	407	$	37,128	100	%
Allowance for credit losses		$	100	$	351	$	81	$	71	$	29	$	8	$	640	2	%

(a)Includes $157 million and $156 million of Office loans supporting the Fortitude Re funds withheld arrangements, greater than 90 days delinquent or in process of foreclosure, at June 30, 2023 and December 31, 2022, respectively.


June 30, 2023		2023		2022		2021		2020		2019		Prior		Total
(in millions)
FICO*:
780 and greater	$	285	$	553	$	2,317	$	640	$	241	$	628	$	4,664
720 - 779		664		582		540		169		80		235		2,270
660 - 719		170		250		88		38		26		106		678
600 - 659		2		21		7		7		6		40		83
Less than 600		—		—		1		1		2		9		13
Total residential mortgages	$	1,121	$	1,406	$	2,953	$	855	$	355	$	1,018	$	7,708

December 31, 2022		2022		2021		2020		2019		2018		Prior		Total
(in millions)
FICO*:
780 and greater	$	296	$	2,204	$	654	$	232	$	77	$	567	$	4,030
720 - 779		536		728		168		76		32		169		1,709
660 - 719		163		80		28		16		9		62		358
600 - 659		2		4		2		2		2		14		26
Less than 600		—		—		—		1		—		6		7
Total residential mortgages	$	997	$	3,016	$	852	$	327	$	120	$	818	$	6,130

*Fair Isaac Corporation (FICO) is the credit quality indicator used to evaluate consumer credit risk for residential mortgage loan borrowers and have been updated within the last twelve months.

For a discussion of our accounting policy for evaluating Mortgage and other loans receivable for impairment, see Note 6 to the Consolidated Financial Statements in the 2022 Annual Report.


Three Months Ended June 30,		2023(b)						2022
(in millions)		Commercial Mortgages		Other Loans		Total		Commercial Mortgages		Other Loans		Total
Allowance, beginning of period	$	706	$	80	$	786	$	533	$	84	$	617

Loans charged off		(6)		—		(6)		—		—		—

Net charge-offs		(6)		—		(6)		—		—		—
Addition to (release of) allowance for loan losses		37		(11)		26		(8)		(6)		(14)

Reclassified to held for sale		—		—		—		—		—		—
Allowance, end of period	$	737	$	69	$	806	$	525	$	78	$	603


Six Months Ended June 30,		2023(b)						2022
(in millions)		Commercial Mortgages		Other Loans		Total		Commercial Mortgages		Other Loans		Total
Allowance, beginning of year	$	640	$	76	$	716	$	545	$	84	$	629


Loans charged off		(6)		—		(6)		(4)		—		(4)

Net charge-offs		(6)		—		(6)		(4)		—		(4)
Addition to (release of) allowance for loan losses		103		(7)		96		(16)		(6)		(22)

Reclassified to held for sale		—		—		—		—		—		—
Allowance, end of period	$	737	$	69	$	806	$	525	$	78	$	603

(a)Does not include allowance for credit losses of $87 million and $89 million, respectively, at June 30, 2023 and 2022 in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.

(b)Excludes $37.6 billion at both June 30, 2023 and December 31, 2022, of loan receivable from AIGFP, which has a full allowance for credit losses, recognized upon the deconsolidation of AIGFP. For additional information, see Note 1.

Our expectations and models used to estimate the allowance for losses on commercial and residential mortgage loans are regularly updated to reflect the current economic environment.

The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. We use a probability of default/loss given default model to determine the allowance for credit losses for our commercial and residential mortgage loans. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification.

Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses utilizing the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification.

When modifications are executed, they often will be in the form of principal forgiveness, term extensions, interest rate reductions, or some combination of any of these concessions. When principal is forgiven, the amortized cost basis of the asset is written off against the allowance for credit losses. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses.

We assess whether a borrower is experiencing financial difficulty based on a variety of factors, including the borrower’s current default on any of its outstanding debt, the probability of a default on any of its debt in the foreseeable future without the modification, the insufficiency of the borrower’s forecasted cash flows to service any of its outstanding debt (including both principal and interest), and the borrower’s inability to access alternative third party financing at an interest rate that would be reflective of current market conditions for a non-troubled debtor.

There were no loans that had defaulted during the six months ended June 30, 2023, that had been previously modified with borrowers experiencing financial difficulties.

Prior to January 1, 2023, we were required to assess loan modifications to determine if they were a troubled debt restructuring. A troubled debt restructuring was a modification of a loan with a borrower that was experiencing financial difficulty and the modification involved us granting a concession to the troubled borrower. Concessions previously granted included extended maturity dates, interest rate changes, principal or interest forgiveness, payment deferrals and easing of loan covenants.