LENDING ACTIVITIES (Tables)

3 Months Ended

Mar. 31, 2012

LENDING ACTIVITIES

Composition of Mortgages and other loans receivable

(in millions)	March 31, 2012			December 31, 2011
Commercial mortgages*	$	13,764		$	13,554
Life insurance policy loans		3,022			3,049
Commercial loans, other loans and notes receivable		3,441			3,626
Total mortgage and other loans receivable		20,227			20,229
Allowance for losses		(708	)		(740	)
Mortgage and other loans receivable, net	$	19,519		$	19,489

*

Commercial mortgages primarily represent loans for office, retail and industrial properties, with exposures in California and New York representing the largest geographic concentrations (approximately 24 percent and 14 percent, respectively, at March 31, 2012 and December 31, 2011). Over 98 percent of the commercial mortgages were current as to payments of principal and interest at March 31, 2012 and December 31, 2011.

Schedule of credit quality indicators for the commercial mortgage loans

March 31, 2012 (dollars in millions)	Number of Loans		Class														Percent of Total $
			Apartments		Offices		Retail		Industrial		Hotel		Others		Total
Credit Quality Indicator:
In good standing		1,030	$	1,722	$	5,058	$	2,308	$	1,849	$	953	$	1,363	$	13,253		96	%
Restructured(a)		7		49		205		7		-		-		21		282		2
90 days or less delinquent		10		-		-		-		-		-		9		9		-
>90 days delinquent or in process of foreclosure		11		-		99		-		44		-		77		220		2
Total(b)		1,058	$	1,771	$	5,362	$	2,315	$	1,893	$	953	$	1,470	$	13,764		100	%
Valuation allowance			$	20	$	131	$	21	$	71	$	12	$	41	$	296		2	%

(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 valuation allowances.

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

	2012									2011
Three Months Ended March 31, (in millions)	Commercial Mortgages			Other Loans			Total			Commercial Mortgages			Other Loans			Total
Allowance, beginning of year	$	305		$	435		$	740		$	470		$	408		$	878
Loans charged off		(6	)		(28	)		(34	)		(29	)		(5	)		(34	)
Recoveries of loans previously charged off		2			-			2			33			-			33
Net charge-offs		(4	)		(28	)		(32	)		4			(5	)		(1	)
Provision for loan losses		(5	)		6			1			(21	)		18			(3	)
Other		-			(1	)		(1	)		(31	)		-			(31	)
Allowance, end of period	$	296	*	$	412		$	708		$	422	*	$	421		$	843

*

Of the total, $60 million and $100 million relates to individually assessed credit losses on $442 million and $635 million of commercial mortgage loans as of March 31, 2012 and 2011, respectively.