Mortgage Loans on Real Estate

Included in Other invested assets on the unaudited Condensed Consolidated Balance Sheets were Commercial mortgage loans ("CMLs") of $304.4 and $136.2, or approximately 1.5% and 0.7% of the Company's total investments as of March 31, 2015 and September 30, 2014, respectively. FGL primarily makes mortgage loans on income producing properties including hotels, industrial properties, retail buildings, multifamily properties and office buildings. FGL diversifies its CML portfolio by geographic region and property type to reduce concentration risk. Subsequent to origination, FGL continuously evaluates CMLs based on relevant current information to ensure properties are performing at a consistent and acceptable level to secure the related debt.

The distribution of CMLs, gross of valuation allowances, by property type and geographic region is reflected in the following tables:



	March 31, 2015				September 30, 2014
	Gross Carrying Value		% of Total		Gross Carrying Value		% of Total
Property Type:
Industrial- General	$	19.9	6.5	%	$	—	—	%
Industrial- Warehouse	47.5		15.6	%	48.0		35.2	%
Multifamily	29.8		9.8	%	37.8		27.8	%
Office	75.7		24.9	%	44.6		32.7	%
Retail	123.1		40.4	%	5.8		4.3	%
Apartment	7.6		2.5	%	—		—	%
Funeral Home	0.8		0.3	%	—		—	%
Total	$	304.4	100.0	%	$	136.2	100.0	%

US Region:
East North Central	$	83.8	27.5	%	$	27.8	20.4	%
Middle Atlantic	17.9		5.9	%	10.9		8.0	%
Pacific	65.7		21.6	%	61.5		45.1	%
South Atlantic	63.8		21.0	%	—		—	%
West North Central	5.7		1.9	%	5.8		4.3	%
West South Central	19.9		6.5	%	30.2		22.2	%
Mountain	42.1		13.8	%	—		—	%
New England	5.5		1.8	%	—		—	%
Total	$	304.4	100.0	%	$	136.2	100.0	%

FGL has a CML portfolio with 100% of all CMLs having a loan-to-value ("LTV") ratio of less than 75% at March 31, 2015 and September 30, 2014. As of March 31, 2015 all CMLs are current and have not experienced credit or other events which would require the recording of an impairment loss. FGL has not established a collective or specific CML valuation allowance as of March 31, 2015.

LTV and debt service coverage (“DSC”) ratios are measures commonly used to assess the risk and quality of mortgage loans. The LTV ratio, calculated at time of origination, is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The DSC ratio, based upon the most recently received financial statements, is expressed as a percentage of the amount of a property’s net income to its debt service payments. A DSC ratio of less than 1.0 indicates that a property’s operations do not generate sufficient income to cover debt payments.

The following table presents the recorded investment in CMLs by LTV and DSC ratio categories and estimated fair value by the indicated loan-to-value ratios at March 31, 2015 and September 30, 2014:



	Debt-Service Coverage Ratios						Total Amount		% of Total		Estimated Fair Value		% of Total
	>1.25		1.00 - 1.25		N/A (a)		Total Amount		% of Total		Estimated Fair Value		% of Total
March 31, 2015
LTV Ratios:
Less than 50%	$	74.2	$	—	$	0.8	$	75.0	24.6	%	$	75.0	24.6	%
50% to 60%	63.8		19.9		—		83.7		27.5	%	83.7		27.5	%
60% to 75%	145.7		—		—		145.7		47.9	%	145.7		47.9	%
Total mortgage loans on real estate	$	283.7	$	19.9	$	0.8	$	304.4	100.0	%	$	304.4	100.0	%
September 30, 2014
LTV Ratios:
Less than 50%	$	44.6	$	—	$	0.8	$	45.4	33.3	%	$	45.4	33.3	%
50% to 60%	19.9		—		—		19.9		14.6	%	19.9		14.6	%
60% to 75%	70.9		—		—		70.9		52.1	%	70.9		52.1	%
Total mortgage loans on real estate	$	135.4	$	—	$	0.8	$	136.2	100.0	%	$	136.2	100.0	%

(a) N/A - Current financial information not available.

FGL recognizes a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. At March 31, 2015, FGL had no CMLs that were delinquent in principal or interest payments. The following provides the current and past due composition of FGL's CMLs on real estate:



	March 31, 2015		September 30, 2014
Current to 30 days	$	304.4	$	136.2
Total carrying value	$	304.4	$	136.2

As of March 31, 2015, FGL's CML portfolio had no impairments, modifications or troubled debt restructuring.