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LENDING ACTIVITIES (Tables)
 3 Months Ended
Mar. 31, 2013
LENDING ACTIVITIES  
Composition of Mortgages and other loans receivable

 

 
  


   
  
   
(in millions)
  

March 31, 2013

   December 31, 2012
  
   

Commercial mortgages*

  
$
14,170
$ 13,788  

Life insurance policy loans

  
2,900
  2,952  

Commercial loans, other loans and notes receivable

  
2,803
  3,147
   

Total mortgage and other loans receivable

  
19,873
  19,887  

Allowance for losses

  
(385
)
   (405 )
   

Mortgage and other loans receivable, net

  
$
19,488
$ 19,482
   

*     Commercial mortgages primarily represent loans for office, retail and industrial properties, with exposures in California and New York representing the largest geographic concentrations (aggregating approximately 21 percent and 18 percent at March 31, 2013, respectively, and approximately 22 percent and 15 percent at December 31, 2012, respectively). Over 99 percent of the commercial mortgages held at such respective dates were current as to payments of principal and interest.
Schedule of credit quality indicators for the commercial mortgage loans

 

   
 
   Number
of
Loans
   Class    
   Percent
of
Total $
  
March 31, 2013
(dollars in millions)
    
  
  Apartments
   Offices
   Retail
   Industrial
   Hotel
   Others
   Total
  
   

Credit Quality Indicator:

                                                                          

In good standing

     989   $ 1,948   $ 4,563   $ 2,646   $ 1,769   $ 1,141   $ 1,684   $ 13,751     97 %

Restructured(a)

     8     50     207     7     1     –     21     286     2  

90 days or less delinquent                              

     2     –     –     –     –     –     –     –     –  

>90 days delinquent or in process of foreclosure

     8     –     30     27     –     –     76     133     1
   

Total(b)

     1,007   $ 1,998   $ 4,800   $ 2,680   $ 1,770   $ 1,141   $ 1,781   $ 14,170     100 %
   

Valuation allowance

         $ 4   $ 73   $ 26   $ 19   $ 1   $ 42   $ 165     1 %
   

(a)  Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. For additional discussion of troubled debt restructurings see Note 8 to the Consolidated Financial Statements in the 2012 Annual Report.

(b)  Does not reflect valuation allowances.
Schedule of changes in the allowance for losses on Mortgage and other loans receivable

 

 
  


   
    
    
  
   
 
   2013   2012  
Three Months Ended March 31,
(in millions)
  

Commercial
Mortgages

  

Other
Loans

  

Total

   Commercial
Mortgages
   Other
Loans
   Total
  
   

Allowance, beginning of year

  
$
159
$
246
$
405
$ 305   $ 435   $ 740  

Loans charged off

  
(1
)
(22
)
(23
)
   (6 )   (5 )   (11 )

Recoveries of loans previously charged off

  
     
1
1
  2     –     2
   

Net charge-offs

  
(1
)
(21
)
(22
)
   (4 )   (5 )   (9 )

Provision for loan losses

  
7
(4
)
3
  (5 )   7     2  

Other

  
–
(1
)
(1
)
   –     (1 )   (1 )

Activity of discontinued operations

  
–
–
–
  –     (24 )   (24 )
   

Allowance, end of period

  
$
165
*
$
220
$
385
$ 296 * $ 412   $ 708
   

*     Of the total, $53 million and $60 million relates to individually assessed credit losses on $208 million and $442 million of commercial mortgage loans at March 31, 2013 and 2012, respectively.