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MORTGAGE LOANS ON REAL ESTATE (Tables) | 6 Months Ended
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Jun. 30, 2024
Receivables [Abstract] |
Schedule of Age Analysis of Loans by Property Type | The Company disaggregates its mortgage loan investments into two portfolio segments: commercial and residential. Commercial mortgage loans include agricultural mortgage loans. The breakdown of mortgage loans on real estate by portfolio segment is as follows:
AS OF US$ MILLIONS |  | June 30, 2024 |  | December 31, 2023
Commercial mortgage loans |  | $ | 9,588 |  |  | $ | 6,022 |
Residential mortgage loans |  | 2,922 |  |  | — |
Total |  | $ | 12,510 |  |  | $ | 6,022 |
Allowance for credit losses |  | (66) |  |  | (60) |
Total, net of allowance |  | $ | 12,444 |  |  | $ | 5,962 |
The Company’s commercial mortgage loan portfolio consists of loans collateralized by the related properties and diversified as to property type, location and loan size. The geographic categories come from the U.S. Census Bureau’s “Census Regions and Divisions of the United States”. The commercial mortgage loan portfolio is summarized by geographic region and property type as follows:
AS OF US$ MILLIONS, EXCEPT FOR PERCENTAGES |  | June 30, 2024 |  | December 31, 2023
| Amount |  | Percentage |  | Amount |  | Percentage
Geographic distribution: |  |  |  |  |  |  |  |
Pacific |  | $ | 1,893 |  |  | 20 | % |  | $ | 983 |  |  | 16 | %
Mountain |  | 1,811 |  |  | 19 | % |  | 1,336 |  |  | 22 | %
West North Central |  | 280 |  |  | 3 | % |  | 178 |  |  | 3 | %
West South Central |  | 1,486 |  |  | 15 | % |  | 1,122 |  |  | 19 | %
East North Central |  | 1,064 |  |  | 11 | % |  | 861 |  |  | 14 | %
East South Central |  | 152 |  |  | 2 | % |  | 49 |  |  | 1 | %
Middle Atlantic |  | 528 |  |  | 6 | % |  | 203 |  |  | 3 | %
South Atlantic |  | 2,050 |  |  | 21 | % |  | 1,097 |  |  | 18 | %
New England |  | 127 |  |  | 1 | % |  | 36 |  |  | 1 | %
Other (multi-region, non-US) |  | 197 |  |  | 2 | % |  | 157 |  |  | 3 | %
Total |  | $ | 9,588 |  |  | 100 | % |  | $ | 6,022 |  |  | 100 | %
Allowance for credit loss |  | (66) |  |  |  |  | (60) |  |  |
Total, net of allowance |  | $ | 9,522 |  |  |  |  | $ | 5,962 |  |  |
AS OF US$ MILLIONS, EXCEPT FOR PERCENTAGES |  | June 30, 2024 |  | December 31, 2023
| Amount |  | Percentage |  | Amount |  | Percentage
Property type distribution: |  |  |  |  |  |  |  |
Apartment |  | $ | 2,250 |  |  | 23 | % |  | $ | 1,266 |  |  | 21 | %
Hotel |  | 1,248 |  |  | 13 | % |  | 1,012 |  |  | 17 | %
Industrial |  | 2,031 |  |  | 21 | % |  | 1,083 |  |  | 18 | %
Office |  | 1,240 |  |  | 13 | % |  | 990 |  |  | 16 | %
Parking |  | 319 |  |  | 3 | % |  | 413 |  |  | 7 | %
Retail |  | 1,527 |  |  | 16 | % |  | 832 |  |  | 14 | %
Storage |  | 196 |  |  | 2 | % |  | 132 |  |  | 2 | %
Other 1 |  | 777 |  |  | 8 | % |  | 294 |  |  | 5 | %
Total |  | $ | 9,588 |  |  | 100 | % |  | $ | 6,022 |  |  | 100 | %
Allowance for credit loss |  | (66) |  |  |  |  | (60) |  |  |
Total, net of allowance |  | $ | 9,522 |  |  |  |  | $ | 5,962 |  |  |
1.Balance includes $473 million of agricultural mortgage loans as of June 30, 2024. The Company held no agricultural mortgage loans as of December 31, 2023.
Schedule of Allowance for Credit Losses | The rollforward of the allowance for credit losses for mortgage loans is shown below:
FOR THE PERIODS ENDED JUN. 30 US$ MILLIONS |  | 2024 |  | 2023
| Commercial mortgage loans |  | Residential mortgage loans |  | Commercial mortgage loans |  | Residential mortgage loans
Balance as of January 1 |  | $ | (60) |  |  | $ | — |  |  | $ | (41) |  |  | $ | — |
Recovery (provision) |  | (1) |  |  | — |  |  | (11) |  |  | — |
Balance as of March 31 |  | $ | (61) |  |  | $ | — |  |  | $ | (52) |  |  | $ | — |
Recovery (provision) |  | (5) |  |  | — |  |  | 5 |  |  | — |
Balance at June 30 |  | $ | (66) |  |  | $ | — |  |  | $ | (47) |  |  | $ | — |
The rollforward of the allowance for credit losses for private loans is shown below:
FOR THE PERIODS ENDED JUN. 30 US$ MILLIONS |  | 2024 |  | 2023
Balance as of January 1 |  | $ | (44) |  |  | $ | (28) |
Recoveries |  | 2 |  |  | 1 |
Write-offs charged against the allowance |  | 1 |  |  | — |
Balance as of March 31 |  | $ | (41) |  |  | $ | (27) |
Provision |  | (15) |  |  | (3) |
Balance as of June 30 |  | $ | (56) |  |  | $ | (30) |
Schedule of Amortized Cost of Mortgage Loans by Year of Origination | The amortized cost of mortgage loans by year of origination by property-type are shown below:
AS OF JUN. 30, 2024 US$ MILLIONS |  | Amortized Cost Basis by Origination Year |  |
| 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Total
Commercial mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 353 |  |  | $ | 393 |  |  | $ | 2,463 |  |  | $ | 1,293 |  |  | $ | 983 |  |  | $ | 3,866 |  |  | $ | 9,351 |
30-59 days past due |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 24 |  |  | 24 |
60-89 days past due |  | — |  |  | 2 |  |  | 50 |  |  | — |  |  | — |  |  | 42 |  |  | 94 |
Non-accrual |  | — |  |  | 3 |  |  | — |  |  | 11 |  |  | — |  |  | 105 |  |  | 119 |
Residential mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | 65 |  |  | 1,030 |  |  | 1,193 |  |  | 251 |  |  | 127 |  |  | 17 |  |  | 2,683 |
30-59 days past due |  | 3 |  |  | 16 |  |  | 41 |  |  | 10 |  |  | 5 |  |  | — |  |  | 75 |
60-89 days past due |  | — |  |  | 14 |  |  | 21 |  |  | 7 |  |  | 4 |  |  | 1 |  |  | 47 |
Non-accrual |  | — |  |  | 36 |  |  | 50 |  |  | 20 |  |  | 9 |  |  | 2 |  |  | 117 |
Total mortgage loans on real estate |  | $ | 421 |  |  | $ | 1,494 |  |  | $ | 3,818 |  |  | $ | 1,592 |  |  | $ | 1,128 |  |  | $ | 4,057 |  |  | $ | 12,510 |
Allowance for credit losses |  | (66) |
Total, net of allowance |  | $ | 12,444 |
AS OF DEC. 31, 2023 US$ MILLIONS |  | Amortized Cost Basis by Origination Year |  |
| 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Total
Commercial mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 305 |  |  | $ | 1,750 |  |  | $ | 731 |  |  | 490 |  |  | $ | 493 |  |  | $ | 2,115 |  |  | $ | 5,884 |
30-59 days past due |  | — |  |  | 26 |  |  | — |  |  | — |  |  | — |  |  | 26 |  |  | 52 |
60-89 days past due |  | — |  |  | 50 |  |  | 9 |  |  | — |  |  | — |  |  | 13 |  |  | 72 |
Non-accrual |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 14 |  |  | 14 |
Total mortgage loans on real estate |  | $ | 305 |  |  | $ | 1,826 |  |  | $ | 740 |  |  | $ | 490 |  |  | $ | 493 |  |  | $ | 2,168 |  |  | $ | 6,022 |
Allowance for credit losses |  | (60) |
Total, net of allowance |  | $ | 5,962 |
The following table summarizes the credit ratings for private loans:
AS OF US$ MILLIONS |  | June 30, 2024 |  | December 31, 2023
A or higher |  | $ | 1,170 |  |  | $ | 20 |
BBB |  | 72 |  |  | 29 |
BB and below |  | 788 |  |  | 272 |
Unrated 1 |  | 841 |  |  | 877 |
Total |  | $ | 2,871 |  |  | $ | 1,198 |
1.Due to the nature of private loans, external agency credit ratings may not be readily available. Where appropriate, the Company obtains non-published credit ratings from one or more third-party rating agencies, which are determined based on an independent evaluation of the transaction. For other loans without published or private credit ratings, the Company assigns internal risk ratings, based on our investment selection and monitoring process and policies. These internal risk ratings are categorized as “Unrated” above.

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