LENDING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2011

LENDING ACTIVITIES

Composition of Mortgages and other loans receivable

(in millions)	December 31, 2011			December 31, 2010
Commercial mortgages	$	13,554		$	13,571
Life insurance policy loans		3,049			3,133
Commercial loans, other loans and notes receivable*		3,626			4,411
Total mortgage and other loans receivable		20,229			21,115
Allowance for losses		(740	)		(878	)
Mortgage and other loans receivable, net	$	19,489		$	20,237

*

Commercial mortgages primarily represent loans for office, retail and industrial properties, with exposures in California and New York representing the largest geographic concentrations (24 percent and 13 percent, respectively, at December 31, 2011). Over 98 percent and 97 percent of the commercial mortgages were current as to payments of principal and interest at December 31, 2011 and 2010, respectively.

Schedule of credit quality indicators for the commercial mortgage loans

December 31, 2011				Class
		Number of Loans																Percent of Total
(dollars in millions)				Apartments		Offices		Retail		Industrial		Hotel		Others		Total
Credit Quality Indicator:
	In good standing		1,032	$	1,751	$	4,885	$	2,287	$	1,928	$	939	$	1,268	$	13,058		96%
	Restructured(a)		12		49		204		-		4		-		30		287		2
	90 days or less delinquent		7		-		20		-		-		-		-		20		-
	>90 days delinquent or in process of foreclosure		12		25		85		-		2		-		77		189		2
Total(b)			1,063	$	1,825	$	5,194	$	2,287	$	1,934	$	939	$	1,375	$	13,554		100%
Valuation allowance				$	24	$	132	$	23	$	71	$	12	$	43	$	305		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

			2011									2010									2009
Years Ended December 31, (in millions)			Commercial Mortgages			Other Loans			Total			Commercial Mortgages			Other Loans(b)			Total			Commercial Mortgages			Other Loans(b)			Total
Allowance, beginning of year			$	470		$	408		$	878		$	432		$	2,012		$	2,444		$	3		$	1,677		$	1,680
	Loans charged off			(78	)		(47	)		(125	)		(217	)		(137	)		(354	)		(82	)		(482	)		(564	)
	Recoveries of loans previously charged off			37			1			38			-			8			8			-			54			54
		Net charge-offs		(41	)		(46	)		(87	)		(217	)		(129	)		(346	)		(82	)		(428	)		(510	)
	Provision for loan losses			(69	)		73			4			342			27			369			422			588			1,010
	Other			(55	)		-			(55	)		(34	)		(1,497	)		(1,531	)		89			379			468
	Reclassified to Assets of businesses held for sale			-			-			-			(53	)		(5	)		(58	)		-			(204	)		(204	)
Allowance, end of year			$	305	(a)	$	435		$	740		$	470	(a)	$	408		$	878		$	432		$	2,012		$	2,444

(a)

Of the total, $65 million and $476 million relates to individually assessed credit losses on $110 million and $739 million of commercial mortgage loans as of December 31, 2011 and 2010, respectively.

(b)

Included in Other loans were finance receivables, which were reported net of unearned finance charges, for both investment purposes and held for sale.