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Lending Activities (Tables)
 9 Months Ended
Sep. 30, 2023
Receivables [Abstract]  
Composition of Mortgages and Other Loans Receivable
The following table presents the composition of Mortgage and other loans receivable, net:
(in millions)September 30, 2023December 31, 2022
Commercial mortgages(a)
$37,996 $37,128 
Residential mortgages8,098 6,130 
Life insurance policy loans1,768 1,758 
Commercial loans, other loans and notes receivable(b)
3,946 5,305 
Total mortgage and other loans receivable(c)
51,808 50,321 
Allowance for credit losses(c)(d)
(886)(716)
Mortgage and other loans receivable, net(c)
$50,922 $49,605 
(a)Commercial mortgages primarily represent loans for apartments, offices and retail properties, with exposures in New York and California representing the largest geographic concentrations (aggregating approximately 18 percent and 11 percent, respectively, at September 30, 2023 and 19 percent and 11 percent, respectively, at December 31, 2022).
(b)There were no loans that were held for sale carried at lower of cost or market as of September 30, 2023. The net carrying value of loans carried at lower of cost or market was $170 million as of December 31, 2022.
(c)Excludes $37.6 billion at both September 30, 2023 and December 31, 2022 of loan receivable from AIGFP, which has a full allowance for credit losses, recognized upon the deconsolidation of AIGFP. For additional information, see Note 1.
(d)Does not include allowance for credit losses of $70 million and $69 million, respectively, at September 30, 2023 and December 31, 2022, in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.
Credit Quality
The following table presents debt service coverage ratios(a) for commercial mortgages by year of vintage:
September 30, 202320232022202120202019PriorTotal
(in millions)
>1.2X$1,612 $5,790 $2,354 $1,362 $5,091 $14,822 $31,031 
1.00 - 1.20X110 1,065 1,477 350 243 2,667 5,912 
<1.00X— 48 — — — 1,005 1,053 
Total commercial mortgages$1,722 $6,903 $3,831 $1,712 $5,334 $18,494 $37,996 
December 31, 202220222021202020192018PriorTotal
(in millions)
>1.2X$5,518 $2,457 $1,710 $4,985 $4,120 $11,663 $30,453 
1.00 - 1.20X910 898 473 416 567 1,353 4,617 
<1.00X45 — 23 52 744 1,194 2,058 
Total commercial mortgages$6,473 $3,355 $2,206 $5,453 $5,431 $14,210 $37,128 
The following table presents loan-to-value ratios(b) for commercial mortgages by year of vintage:
September 30, 202320232022202120202019PriorTotal
(in millions)
Less than 65%$1,546 $4,588 $2,871 $1,254 $3,789 $12,601 $26,649 
65% to 75%176 1,701 619 239 1,495 3,821 8,051 
76% to 80%— 564 52 — — 171 787 
Greater than 80%— 50 289 219 50 1,901 2,509 
Total commercial mortgages$1,722 $6,903 $3,831 $1,712 $5,334 $18,494 $37,996 
December 31, 202220222021202020192018PriorTotal
(in millions)
Less than 65%$5,425 $2,548 $1,775 $3,958 $3,016 $10,739 $27,461 
65% to 75%998 517 405 1,445 1,487 1,393 6,245 
76% to 80%50 52 — — 168 229 499 
Greater than 80%— 238 26 50 760 1,849 2,923 
Total commercial mortgages$6,473 $3,355 $2,206 $5,453 $5,431 $14,210 $37,128 
(a)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 was 1.9x at both September 30, 2023 and December 31, 2022. The debt service coverage ratios are updated when additional relevant information becomes available.
(b)The loan-to-value ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing the loan. Our weighted average loan-to-value ratio was 59 percent at September 30, 2023 and 59 percent at December 31, 2022. The loan-to-value ratios have been updated within the last three months to reflect the current carrying values of the loans. We update the valuations of collateral properties by obtaining independent appraisals, generally at least once per year.
The following table presents supplementary credit quality information related to commercial mortgages:
Number
of
Loans		ClassPercent
of
Total
(dollars in millions)ApartmentsOfficesRetailIndustrialHotelOthersTotal
September 30, 2023
Past Due Status:
In good standing635$15,175 $9,761 $3,936 $6,414 $2,047 $432 $37,765 99 %
90 days or less delinquent1— 34 — — — — 34 — 
>90 days delinquent or in process of foreclosure(a)
2— 157 40 — — — 197 1 
Total(b)
638$15,175 $9,952 $3,976 $6,414 $2,047 $432 $37,996 100 %
Allowance for credit losses$93 $507 $83 $86 $37 $6 $812 2 %
December 31, 2022
Past Due Status:
In good standing625$14,597 $10,102 $3,774 $6,006 $2,027 $407 $36,913 99 %
90 days or less delinquent—— — — — — — — — 
>90 days delinquent or in process of foreclosure(a)
4— 173 42 — — — 215 1 
Total(b)
629$14,597 $10,275 $3,816 $6,006 $2,027 $407 $37,128 100 %
Allowance for credit losses$100 $351 $81 $71 $29 $8 $640 2 %
(a)Includes $157 million and $156 million of Office loans supporting the Fortitude Re funds withheld arrangements, greater than 90 days delinquent or in process of foreclosure, at September 30, 2023 and December 31, 2022, respectively.
(b)Does not reflect allowance for credit losses.
The following table presents credit quality performance indicators for residential mortgages by year of vintage:
September 30, 202320232022202120202019PriorTotal
(in millions)
FICO*:
780 and greater$354 $568 $2,296 $630 $242 $618 $4,708 
720 - 779822 598 550 169 100 248 2,487 
660 - 719215 249 103 40 38 130 775 
600 - 6592 21 10 9 9 53 104 
Less than 600— — 2 2 4 16 24 
Total residential mortgages$1,393 $1,436 $2,961 $850 $393 $1,065 $8,098 
December 31, 202220222021202020192018PriorTotal
(in millions)
FICO*:
780 and greater$296 $2,204 $654 $232 $77 $567 $4,030 
720 - 779536 728 168 76 32 169 1,709 
660 - 719163 80 28 16 9 62 358 
600 - 6592 4 2 2 2 14 26 
Less than 600— — — 1 — 6 7 
Total residential mortgages$997 $3,016 $852 $327 $120 $818 $6,130 
*Fair Isaac Corporation (FICO) is the credit quality indicator used to evaluate consumer credit risk for residential mortgage loan borrowers and have been updated within the last twelve months.
Allowance for Credit Loss
The following table presents a rollforward of the changes in the allowance for credit losses on Mortgage and other loans receivable(a):
Three Months Ended September 30,
2023(b)
2022
(in millions)Commercial
Mortgages		Other
Loans		TotalCommercial
Mortgages		Other
Loans		Total
Allowance, beginning of period$737 $69 $806 $525 $78 $603 
Addition to (release of) allowance for loan losses75 5 80 39 13 52 
Allowance, end of period$812 $74 $886 $564 $91 $655 
Nine Months Ended September 30,
2023(b)
2022
(in millions)Commercial
Mortgages		Other
Loans		TotalCommercial
Mortgages		Other
Loans		Total
Allowance, beginning of year$640 $76 $716 $545 $84 $629 
Loans charged off(6)— (6)(4)— (4)
Net charge-offs(6)— (6)(4)— (4)
Addition to (release of) allowance for loan losses178 (2)176 23 7 30 
Allowance, end of period
$812 $74 $886 $564 $91 $655 
(a)Does not include allowance for credit losses of $70 million and $87 million, respectively, at September 30, 2023 and 2022 in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.
(b)Excludes $37.6 billion at both September 30, 2023 and December 31, 2022, of loan receivable from AIGFP, which has a full allowance for credit losses, recognized upon the deconsolidation of AIGFP. For additional information, see Note 1.