Lending Activities (Tables)

6 Months Ended

Jun. 30, 2011

Lending Activities

Composition of mortgage and other loans receivable

(in millions)	June 30, 2011			December 31, 2010
Commercial mortgages	$	13,303		$	13,571
Residential mortgages*		9			9
Life insurance policy loans		3,071			3,133
Commercial loans, other loans and notes receivable		3,705			4,402
Total mortgage and other loans receivable		20,088			21,115
Allowance for losses		(835	)		(878	)
Mortgage and other loans receivable, net	$	19,253		$	20,237

*

Primarily consists of foreign mortgage loans.

Schedule of credit quality indicators for the U.S. commercial mortgage loans

June 30, 2011 (dollars in millions)		Number of Loans		Class														Percent of Total
				Apartments		Offices		Retail		Industrial		Hotel		Others		Total
Credit Quality Indicator:
	In good standing		1,007	$	1,680	$	4,669	$	2,218	$	1,957	$	924	$	1,293	$	12,741		96	%
	Restructured(a)		12		49		184		-		4		-		68		305		2
	90 days or less delinquent		1		-		31		-		-		-		-		31		-
	>90 days delinquent or in process of foreclosure		16		-		134		10		5		-		77		226		2
Total(b)			1,036	$	1,729	$	5,018	$	2,228	$	1,966	$	924	$	1,438	$	13,303		100	%
Valuation allowance				$	71	$	160	$	57	$	52	$	31	$	61	$	432		3	%

(a)

Performing under restructured terms, which may have included extended maturity dates and revised interest rates.

(b)

Does not reflect valuation allowances.

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

			2011									2010
Six Months Ended June 30, (in millions)
			Commercial Mortgages			Other Loans			Total			Commercial Mortgages			Other Loans			Total
Allowance, beginning of year			$	470		$	408		$	878		$	432		$	2,012		$	2,444
	Loans charged off			(36	)		(31	)		(67	)		(196	)		(77	)		(273	)
	Recoveries of loans previously charged off			35			—			35			-			11			11
		Net charge-offs		(1	)		(31	)		(32	)		(196	)		(66	)		(262	)
	Provision for loan losses			(6	)		26			20			218			(2	)		216
	Other			(31	)		-			(31	)		9			(23	)		(14	)
	Reclassified to Assets of businesses held for sale			-			-			-			(46	)		(10	)		(56	)
Allowance, end of period			$	432	*	$	403		$	835		$	417		$	1,911		$	2,328

*

Of the total, $112 million relates to individually assessed credit losses on $610 million of commercial mortgage loans.