COMMERCIAL MORTGAGE LOANS (Tables)

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Schedule of Commercial Mortgage Loans Receivable by Origination Year and Key Credit Quality Indicators

The amortized cost basis of the Company's commercial mortgage loan receivables by origination year, net of the allowance, for credit losses is as follows:

	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Total
	(Dollars In Millions)
As of March 31, 2021
Commercial mortgage loans:
Performing	$	314	$	1,443	$	2,391	$	1,560	$	1,344	$	3,255	$	10,307
Non-performing	—		—		—		—		—		1		1
Amortized cost	$	314	$	1,443	$	2,391	$	1,560	$	1,344	$	3,256	$	10,308
Allowance for credit losses	(2)		(18)		(35)		(34)		(31)		(51)		(171)
Total commercial mortgage loans	$	312	$	1,425	$	2,356	$	1,526	$	1,313	$	3,205	$	10,137

	Term Loans Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Total
	(Dollars In Millions)
As of December 31, 2020
Commercial mortgage loans:
Performing	$	1,463	$	2,442	$	1,577	$	1,344	$	943	$	2,458	$	10,227
Non-performing											1		1
Amortized cost	$	1,463	$	2,442	$	1,577	$	1,344	$	943	$	2,459	$	10,228
Allowance for credit losses	(21)		(46)		(55)		(37)		(25)		(38)		(222)
Total commercial mortgage loans	$	1,442	$	2,396	$	1,522	$	1,307	$	918	$	2,421	$	10,006

The following tables provide a comparative view of the key credit quality indicators of the Loan-to-Value and Debt Service Coverage Ratio (“DSCR”):

	As of March 31, 2021					As of December 31, 2020
	Amortized Cost		% of Total		DSCR (2)	Amortized Cost		% of Total		DSCR (2)
	(Dollars In Millions)
Loan-to-Value(1)
Greater than 75%	$	393	4	%	0.05	$	399	4	%	0.05
50% - 75%	6,504		63	%	1.02	6,557		64	%	1.04
Less than 50%	3,411		33	%	0.67	3,272		32	%	0.63
Total commercial mortgage loans	$	10,308	100	%	1.74	$	10,228	100	%	1.72
(1) The loan-to-value ratio compares the current unpaid principal of the loan to the estimated fair value of the underlying property collateralizing the loan. Our weighted average loan-to-value ratio was 54% at March 31, 2021 and 54% at December 31, 2020.
(2) 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 for March 31, 2021 and December 31, 2020 was 1.74x and 1.72x, respectively.

Schedule of Allowance for Credit Losses on Funded and Unfunded Mortgages

	As of and For The Three Months Ended March 31, 2021		As of and For The Year Ended December 31, 2020
	(Dollars In Millions)
Allowance for Funded Commercial Mortgage Loan Credit Losses
Beginning balance	$	222	$	5
Cumulative effect adjustment	—		80
Charge offs	—		—
Recoveries	(5)		(3)
Provision	(46)		140
Ending balance	$	171	$	222
Allowance for Unfunded Commercial Mortgage Loan Commitments Credit Losses
Beginning balance	$	22	$	—
Cumulative effect adjustment	—		10
Charge offs	—		—
Recoveries	—		—
Provision	(7)		12
Ending balance	$	15	$	22

Schedule of Commercial Mortgage Loans Modified in Troubled Debt Restructuring

	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars In Millions)
As of December 31, 2020
Troubled debt restructuring:
Commercial mortgage loans	2	$	2	$	2