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PRIVATE LOANS
 6 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
PRIVATE LOANS MORTGAGE LOANS ON REAL ESTATE
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, 2024December 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, 2024December 31, 2023
Amount
Percentage
AmountPercentage
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, 2024December 31, 2023
Amount
Percentage
AmountPercentage
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 %
Other1
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.
There was $1 million and no interest income recognized on loans in non-accrual status for the six months ended June 30, 2024 and 2023. Impaired loans were not significant for any of the periods presented.
Allowance for Credit Losses
The Company establishes a valuation allowance to provide for the risk of credit losses inherent in its mortgage loan portfolios. The valuation allowance is maintained at a level believed adequate by management to absorb estimated expected credit losses. The valuation allowance is based on amortized cost, which excludes accrued interest receivable. The Company does not measure a credit loss allowance on accrued interest receivable any uncollectible accrued interest receivable balances are written off to net investment income in a timely manner. The Company did not write off any uncollectible accrued interest receivable on its commercial or residential mortgage loan portfolios for the six months ended June 30, 2024 and 2023, respectively. The rollforward of the allowance for credit losses for mortgage loans is shown below:
FOR THE PERIODS ENDED JUN. 30
US$ MILLIONS
20242023
Commercial mortgage loans
Residential mortgage loans
Commercial mortgage loansResidential 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$(66)$— $(47)$— 

Credit Quality Indicators
Mortgage loans are segregated by property-type and quantitative and qualitative allowance factors are applied. Qualitative factors are developed quarterly based on the pooling of assets with similar risk characteristics and historical loss experience adjusted for the expected trend in the current market environment. Credit losses are pooled by property type as it represents the most similar and reliable risk characteristics in our portfolio. 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
20242023202220212020PriorTotal
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:
Current65 1,030 1,193 251 127 17 2,683 
30-59 days past due3 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
20232022202120202019PriorTotal
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 
Generally, mortgage loans are secured by first liens on income-producing real estate with a loan-to-value ratio of up to 75%. It is the Company’s policy to not accrue interest on loans that are 90 days delinquent and where amounts are determined to be uncollectible. As of June 30, 2024, 195 mortgage loans were past due over 90 days or in non-accrual status (December 31, 2023 – three mortgage loans).
The Company’s commercial and residential mortgage loans may be subject to loan modifications. Loan modifications may be granted to borrowers experiencing financial difficulty and could include principal forgiveness, interest rate reduction, an other-than-significant delay or a term extension. A loan modification typically does not result in a change in valuation allowance as it is already incorporated into the Company’s allowance methodology. However, if the Company grants a borrower experiencing financial difficulty principal forgiveness, the amount of principal forgiven would be written off, which would reduce the amortized cost of the loan and result in an adjustment to the valuation allowance. The carrying amount of mortgage loans experiencing financial difficulty, for which modifications have been granted during the quarter ended June 30, 2024 and 2023 is $85 million and $86 million, respectively.
PRIVATE LOANS
The following table summarizes the credit ratings for private loans:
AS OF
US$ MILLIONS
June 30, 2024December 31, 2023
A or higher $1,170 $20 
BBB72 29 
BB and below788 272 
Unrated1
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.

Allowance for Credit Losses
The rollforward of the allowance for credit losses for private loans is shown below:
FOR THE PERIODS ENDED JUN. 30
US$ MILLIONS		20242023
Balance as of January 1$(44)$(28)
Recoveries2 1 
Write-offs charged against the allowance1 — 
Balance as of March 31$(41)$(27)
Provision(15)(3)
Balance as of June 30$(56)$(30)