Aetna 2014 Annual Report Download - page 105

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Annual Report- Page 99
Mortgage Loans
Our mortgage loans are collateralized by commercial real estate. During 2014 and 2013 we had the following
activity in our mortgage loan portfolio:
(Millions) 2014 2013
New mortgage loans $ 217.0 $ 195.0
Mortgage loans fully-repaid 133.7 222.0
Mortgage loans foreclosed —8.5
At December 31, 2014 and 2013, we had no material problem, restructured or potential problem mortgage loans.
We also had no material impairment reserves on these loans at December 31, 2014 or 2013.
We assess our mortgage loans on a regular basis for credit impairments, and annually assign a credit quality
indicator to each loan. Our credit quality indicator is internally developed and categorizes our portfolio on a scale
from 1 to 7. Category 1 represents loans of superior quality, and Categories 6 and 7 represent loans where
collections are potentially at risk. The vast majority of our mortgage loans fall into the Level 2 to 4 ratings. These
ratings represent loans where credit risk is minimal to acceptable; however, these loans may display some
susceptibility to economic changes. Category 5 represents loans where credit risk is not substantial but these loans
warrant management’s close attention. These indicators are based upon several factors, including current loan to
value ratios, property condition, market trends, creditworthiness of the borrower and deal structure. Based upon our
most recent assessments at December 31, 2014 and 2013, our mortgage loans were given the following credit
quality indicators:
(In Millions, except credit ratings indicator) 2014 2013
1$ 59.7 $ 69.2
2 to 4 1,443.4 1,399.6
518.6 30.6
6 and 7 40.5 50.2
Total $ 1,562.2 $ 1,549.6
At December 31, 2014 scheduled mortgage loan principal repayments were as follows:
(Millions)
2015 $ 127.6
2016 188.3
2017 220.5
2018 171.2
2019 100.3
Thereafter 763.0