Financing receivables are comprised of commercial loans, policy loans, and the deposit receivable. See Note 2 for information regarding the Company’s accounting policies related to financing receivables and the allowance for credit losses.

The following tables present a rollforward of the allowance for credit losses for the three months ended March 31:



	Commercial Loans
	(in millions)
Balance, December 31, 2019 ⁽¹⁾	$	20
Cumulative effect of adoption of current expected credit losses guidance	3
Balance, January 1, 2020	23
Provisions	9
Balance, March 31, 2020	$	32

⁽¹⁾Prior to January 1, 2020, the allowance for credit losses was based on an incurred loss model that did not require estimating expected credit losses over the expected life of the asset.

As of both March 31, 2020 and December 31, 2019, accrued interest on commercial loans was $11 million and is recorded in accrued investment income on the Consolidated Balance Sheets and excluded from the amortized cost basis of commercial loans.

During the three months ended March 31, 2020 and 2019, the Company purchased $41 million and $25 million, respectively, of syndicated loans and sold $7 million and $9 million, respectively, of syndicated loans.

Nonperforming loans were $12 million and $9 million as of March 31, 2020 and December 31, 2019, respectively. All other loans were considered to be performing.

The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Loan-to-value ratio is the primary credit quality indicator included in this review. Total commercial mortgage loans past due were nil as of both March 31, 2020 and December 31, 2019.

Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates as necessary. Commercial mortgage loans which management has assigned its highest risk rating were less than 1% of total commercial mortgage

loans as of both March 31, 2020 and December 31, 2019. Loans with the highest risk rating represent distressed loans which the Company has identified as impaired or expects to become delinquent or enter into foreclosure within the next six months.

The table below presents the amortized cost basis of commercial mortgage loans as of March 31, 2020 by year of origination and loan-to-value ratio:



Loan-to-Value Ratio	2020		2019		2018		2017		2016		Prior		Total
Loan-to-Value Ratio	(in millions)
> 100%	$	—	$	—	$	—	$	—	$	1	$	11	$	12
80% - 100%	12		16		6		4		14		13		65
60% - 80%	29		168		85		41		61		122		506
40% - 60%	8		39		46		148		85		683		1,009
< 40%	5		22		48		82		69		860		1,086
Total	$	54	$	245	$	185	$	275	$	230	$	1,689	$	2,678

In addition, the Company reviews the concentrations of credit risk by region and property type. Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows:



	Loans				Percentage
	March 31, 2020		December 31, 2019		March 31, 2020		December 31, 2019
	(in millions)
South Atlantic	$	712	$	705	27	%	26	%
Pacific	800		792		30		30
Mountain	234		237		9		9
West North Central	204		207		8		8
East North Central	228		232		8		9
Middle Atlantic	169		167		6		6
West South Central	167		169		6		6
New England	49		47		2		2
East South Central	115		116		4		4
	2,678		2,672		100	%	100	%
Less: allowance for credit losses	25		17
Total	$	2,653	$	2,655



	Loans				Percentage
	March 31, 2020		December 31, 2019		March 31, 2020		December 31, 2019
	(in millions)
Retail	$	879	$	891	33	%	33	%
Office	392		404		14		15
Apartments	673		660		25		25
Industrial	402		404		15		15
Mixed use	78		66		3		3
Hotel	50		51		2		2
Other	204		196		8		7
	2,678		2,672		100	%	100	%
Less: allowance for credit losses	25		17
Total	$	2,653	$	2,655

The recorded investment in syndicated loans as of March 31, 2020 and December 31, 2019 was $406 million and $395 million, respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers, with limited exposure to the oil and gas industry. Total syndicated loans past due were nil and $1 million as of March 31, 2020 and December 31, 2019, respectively. The Company assigns an internal risk rating to each syndicated loan in its portfolio ranging from 1 through 5, with 5 reflecting the lowest quality.

The table below presents the amortized cost basis of syndicated loans as of March 31, 2020 by origination year and internal risk rating:



Internal Risk Rating	2020		2019		2018		2017		2016		Prior		Total
Internal Risk Rating	(in millions)
Risk 5	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk 4	—		10		4		5		1		5		25
Risk 3	—		3		10		23		8		14		58
Risk 2	8		29		42		42		17		42		180
Risk 1	7		19		36		42		13		26		143
Total	$	15	$	61	$	92	$	112	$	39	$	87	$	406

Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, the Company does not record an allowance for credit losses.

The deposit receivable was $1.5 billion as of both March 31, 2020 and December 31, 2019. The deposit receivable is fully collateralized by the fair value of the assets held in a trust. Based on management’s evaluation of the nature of the underlying assets and the potential for changes in the collateral value, the Company did not have an allowance for credit losses for the deposit receivable as of both March 31, 2020 and December 31, 2019.