
(in millions)	September 30, 2024		December 31, 2023
Commercial mortgages(a)	$	3,696	$	3,836

Life insurance policy loans	6		7
Commercial loans, other loans and notes receivable(b)	751		738
Total mortgage and other loans receivable(c)	4,453		4,581
Allowance for credit losses(c)(d)	(167)		(140)
Mortgage and other loans receivable, net(c)	$	4,286	$	4,441

(a)Commercial mortgages primarily represent loans for apartments, offices and retail properties, with exposures in California and New York representing the largest geographic concentrations (aggregating approximately 12 percent and 10 percent, respectively, at September 30, 2024 and 13 percent and 10 percent, respectively, at December 31, 2023).

(b)There were no loans that were held-for-sale carried at lower of cost or market as of September 30, 2024 and December 31, 2023.

(c)Excludes $37.6 billion at both September 30, 2024 and December 31, 2023 of loans receivable from AIG Financial Products Corp. (AIGFP), which has a full allowance for credit losses, recognized upon the deconsolidation of AIGFP. For additional information, see Note 1 to the Consolidated Financial Statements in the 2023 Annual Report.

(d)Does not include allowance for credit losses of $5 million and $9 million, respectively, at September 30, 2024 and December 31, 2023, 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 September 30, 2024 and December 31, 2023, $296 million and $73 million, respectively, of commercial mortgage loans were placed on nonaccrual status.

Accrued interest is presented separately and is included in Accrued investment income on the Condensed Consolidated Balance Sheets. As of September 30, 2024 and December 31, 2023, accrued interest receivable was $21 million and $21 million, respectively, associated with commercial mortgage loans.

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.


September 30, 2024		2024		2023		2022		2021		2020		Prior		Total
(in millions)
>1.2X	$	34	$	500	$	246	$	559	$	164	$	1,766	$	3,269
1.00 - 1.20X		20		10		15		14		—		80		139
<1.00X		—		—		—		32		—		256		288
Total commercial mortgages	$	54	$	510	$	261	$	605	$	164	$	2,102	$	3,696


December 31, 2023		2023		2022		2021		2020		2019		Prior		Total
(in millions)
>1.2X	$	398	$	167	$	394	$	135	$	156	$	1,784	$	3,034
1.00 - 1.20X		5		71		254		56		21		298		705
<1.00X		—		11		—		—		—		86		97
Total commercial mortgages	$	403	$	249	$	648	$	191	$	177	$	2,168	$	3,836


September 30, 2024		2024		2023		2022		2021		2020		Prior		Total
(in millions)
Less than 65%	$	34	$	411	$	169	$	493	$	156	$	1,368	$	2,631
65% to 75%		13		42		48		77		—		302		482
76% to 80%		—		—		—		35		—		113		148
Greater than 80%		7		57		44		—		8		319		435
Total commercial mortgages	$	54	$	510	$	261	$	605	$	164	$	2,102	$	3,696

December 31, 2023		2023		2022		2021		2020		2019		Prior		Total
(in millions)
Less than 65%	$	359	$	159	$	492	$	177	$	156	$	1,385	$	2,728
65% to 75%		10		15		137		—		21		367		550
76% to 80%		—		32		10		—		—		—		42
Greater than 80%		34		43		9		14		—		416		516
Total commercial mortgages	$	403	$	249	$	648	$	191	$	177	$	2,168	$	3,836

(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 and 1.8x at September 30, 2024 and December 31, 2023, respectively. 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 64 percent and 62 percent at September 30, 2024 and December 31, 2023, respectively. 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
September 30, 2024
Past Due Status:
In good standing	197	$	1,198	$	1,057	$	361	$	444	$	272	$	127	$	3,459	94	%

90 days or less delinquent	3		—		—		36		—		—		—		36	1
>90 days delinquent or in process of foreclosure	4		—		137		64		—		—		—		201	5
Total*	204	$	1,198	$	1,194	$	461	$	444	$	272	$	127	$	3,696	100	%
Allowance for credit losses		$	5	$	102	$	35	$	9	$	13	$	1	$	165	4	%


	Number of Loans		Class													Percent of Total
(dollars in millions)			Apartments		Offices		Retail		Industrial		Hotel		Others		Total
December 31, 2023
Past Due Status:
In good standing	211	$	1,267	$	1,212	$	476	$	460	$	247	$	121	$	3,783	99	%

90 days or less delinquent	1		—		11		—		—		—		—		11	—
>90 days delinquent or in process of foreclosure	1		—		—		42		—		—		—		42	1
Total*	213	$	1,267	$	1,223	$	518	$	460	$	247	$	121	$	3,836	100	%
Allowance for credit losses		$	9	$	75	$	36	$	7	$	9	$	2	$	138	4	%

The following table presents a rollforward of the changes in the allowance for credit losses on Mortgage and other loans receivable(a)(b):


Three Months Ended September 30,	2024						2023
(in millions)	Commercial Mortgages		Other Loans		Total			Commercial Mortgages		Other Loans		Total
Allowance, beginning of period	$	162	$	1	$	163		$	116	$	3	$	119



Addition to (release of) allowance for loan losses	3		1		4			17		—		17


Allowance, end of period	$	165	$	2	$	167		$	133	$	3	$	136


Nine Months Ended September 30,	2024						2023
(in millions)	Commercial Mortgages		Other Loans		Total			Commercial Mortgages		Other Loans		Total
Allowance, beginning of year	$	138	$	2	$	140		$	109	$	8	$	117
Loans charged off	—		—		—			(2)		—		(2)

Net charge-offs	—		—		—			(2)		—		(2)
Addition to (release of) allowance for loan losses	27		—		27			26		(5)		21


Allowance, end of period	$	165	$	2	$	167		$	133	$	3	$	136

(a)Does not include allowance for credit losses of $5 million and $9 million at September 30, 2024 and 2023, respectively, in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.

(b)Excludes $37.6 billion 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 to the Consolidated Financial Statements in the 2023 Annual Report.

Our expectations and models used to estimate the allowance for losses on commercial 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 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.

During the nine months ended September 30, 2024, commercial mortgage loans with an amortized cost of $5 million supporting the funds withheld arrangements with Fortitude Re were granted term extensions.

There were no loans that had defaulted during the nine months ended September 30, 2024 and 2023, that had been previously modified with borrowers experiencing financial difficulties.