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Financing Receivables
 12 Months Ended
Dec. 31, 2018
Receivables [Abstract]  
Financing Receivables [Text Block] Financing Receivables
The Company’s financing receivables primarily include commercial mortgage loans, syndicated loans, policy loans, certificate loans, advisor loans and margin loans. See Note 2 for information regarding the Company’s accounting policies related to loans and the allowance for loan losses.
Allowance for Loan Losses
Commercial Mortgage Loans and Syndicated Loans
The following table presents a rollforward of the allowance for loan losses for the years ended and the ending balance of the allowance for loan losses by impairment method:
 
December 31,
2018
 
2017
 
2016
(in millions)
Beginning balance
$
26

 
$
29

 
$
32

Charge-offs
(2
)
 
(2
)
 
(5
)
Provisions
—

 
(1
)
 
2

Ending balance
$
24

 
$
26

 
$
29

 
 
 
 
 
 
Individually evaluated for impairment
$
—

 
$
—

 
$
2

Collectively evaluated for impairment
24

 
26

 
27

The recorded investment in financing receivables by impairment method was as follows:
 
December 31,
2018
 
2017
(in millions)
Individually evaluated for impairment
$
24

 
$
17

Collectively evaluated for impairment
3,239

 
3,258

Total
$
3,263

 
$
3,275

As of December 31, 2018 and 2017, the Company’s recorded investment in financing receivables individually evaluated for impairment for which there was no related allowance for loan losses was $24 million and $17 million, respectively. Unearned income, unamortized premiums and discounts, and net unamortized deferred fees and costs are not material to the Company’s total loan balance.
During the years ended December 31, 2018, 2017 and 2016, the Company purchased $221 million, $200 million and $92 million, respectively, and sold $51 million, $267 million and $271 million, respectively, of loans. The loans purchased consisted of syndicated loans. The loans sold during 2018 consisted of syndicated loans. The loans sold during 2017 and 2016 primarily consisted of consumer mortgage loans. The Company recorded a loss of $7 million and $11 million on the sale of consumer mortgage loans during the years ended December 31, 2017 and 2016, respectively.
The Company has not acquired any loans with deteriorated credit quality as of the acquisition date.
Loans to Financial Advisors
As of December 31, 2018 and 2017, principal amounts outstanding for advisor loans were $558 million and $509 million, respectively, and allowance for loan losses were $25 million and $23 million, respectively. The allowance for loan losses related to loans to financial advisors is not included in the table disclosures above. Of the gross balance outstanding, the portion associated with financial advisors who are no longer affiliated with the Company was $18 million and $19 million as of December 31, 2018 and 2017, respectively. The allowance for loan losses on these loans was $13 million and $12 million as of December 31, 2018 and 2017, respectively.
Credit Quality Information
Nonperforming loans, which are generally loans 90 days or more past due, were $16 million and $19 million as of December 31, 2018 and 2017, respectively. All other loans were considered to be performing.
Commercial Mortgage Loans
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. 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 nil of total commercial mortgage loans as of both December 31, 2018 and 2017. 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. 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
December 31,
December 31,
2018
 
2017
2018
 
2017
(in millions)
 
 
 
East North Central
$
216

 
$
215

 
8
%
 
8
%
East South Central
107

 
90

 
4

 
3

Middle Atlantic
187

 
192

 
7

 
7

Mountain
237

 
256

 
9

 
9

New England
62

 
74

 
2

 
3

Pacific
814

 
812

 
30

 
29

South Atlantic
731

 
768

 
27

 
28

West North Central
213

 
235

 
8

 
8

West South Central
148

 
133

 
5

 
5

 
2,715

 
2,775

 
100
%
 
100
%
Less: allowance for loan losses
19

 
19

 
 
 
Total
$
2,696

 
$
2,756


Concentrations of credit risk of commercial mortgage loans by property type were as follows:
 
Loans
 
Percentage
December 31,
 
December 31,
2018
 
2017
 
2018
 
2017
(in millions)
 
 
 
 
Apartments
$
621

 
$
566

 
23
%
 
20
%
Hotel
43

 
40

 
1

 
1

Industrial
453

 
476

 
17

 
17

Mixed use
54

 
44

 
2

 
2

Office
435

 
492

 
16

 
18

Retail
897

 
937

 
33

 
34

Other
212

 
220

 
8

 
8

 
2,715

 
2,775

 
100
%
 
100
%
Less: allowance for loan losses
19

 
19

 
 
 
Total
$
2,696

 
$
2,756


Syndicated Loans
The recorded investment in syndicated loans as of December 31, 2018 and 2017 was $548 million and $498 million, respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. The primary credit indicator for syndicated loans is whether the loans are performing in accordance with the contractual terms of the syndication. Total nonperforming syndicated loans as of December 31, 2018 and 2017 were nil and $5 million, respectively.
Troubled Debt Restructurings
The recorded investment in restructured loans was not material as of both December 31, 2018 and 2017. Troubled debt restructurings did not have a material impact to the Company’s allowance for loan losses or income recognized for the years ended December 31, 2018, 2017 and 2016. There are no commitments to lend additional funds to borrowers whose loans have been restructured.