MetLife 2011 Annual Report Download - page 58

Commercial Mortgage Loans by Geographic Region and Property Type. Commercial mortgage loans are the largest component of the mortgage
loan invested asset class as it represents over 70% of total mortgage loans held-for-investment (excluding the effects of consolidating certain VIEs that
are treated as CSEs) at both December 31, 2011 and 2010. The tables below present the diversification across geographic regions and property types
of commercial mortgage loans held-for-investment at:
December 31,
2011 2010
Amount %of Total Amount %of Total
(In millions)
Region(1):
South Atlantic ......................................................... $ 9,022 22.3% $ 7,910 20.9%
Pacific ............................................................... 8,209 20.3 8,616 22.8
Middle Atlantic ......................................................... 6,370 15.8 5,486 14.5
International ........................................................... 4,713 11.7 4,095 10.8
West South Central ..................................................... 3,220 8.0 2,922 7.7
East North Central ...................................................... 2,984 7.3 2,900 7.7
New England .......................................................... 1,563 3.9 1,310 3.5
Mountain ............................................................. 746 1.8 811 2.2
East South Central ..................................................... 487 1.2 461 1.2
West North Central ..................................................... 365 0.9 643 1.7
Multi-Region and Other .................................................. 2,761 6.8 2,664 7.0
Total recorded investment .............................................. 40,440 100.0% 37,818 100.0%
Less: valuation allowances ........................................... 398 562
Carrying value, net of valuation allowances ............................... $40,042 $37,256
Property Type:
Office ............................................................... $18,582 45.9% $16,857 44.6%
Retail ................................................................ 9,524 23.6 9,215 24.3
Apartments ........................................................... 4,011 9.9 3,630 9.6
Hotels ............................................................... 3,114 7.7 3,089 8.2
Industrial ............................................................. 3,102 7.7 2,910 7.7
Other ................................................................ 2,107 5.2 2,117 5.6
Total recorded investment .............................................. 40,440 100.0% 37,818 100.0%
Less: valuation allowances ........................................... 398 562
Carrying value, net of valuation allowances ............................... $40,042 $37,256
(1) Reclassifications have been made to the prior year amounts from various regions to the Multi-Region and Other region to conform to the current year
presentation.
Mortgage Loan Credit Quality — Restructured, Potentially Delinquent, Delinquent or Under Foreclosure. The Company monitors its mortgage loan
investments on an ongoing basis, including reviewing loans that are restructured, potentially delinquent, and delinquent or under foreclosure. These loan
classifications are consistent with those used in industry practice.
The Company defines restructured mortgage loans as loans in which the Company, for economic or legal reasons related to the debtor’s financial
difficulties, grants a concession to the debtor that it would not otherwise consider. The Company defines potentially delinquent loans as loans that,in
management’s opinion, have a high probability of becoming delinquent in the near term. The Company defines delinquent mortgage loans consistent
with industry practice, when interest and principal payments are past due as follows: commercial mortgage loans — 60 days or more; agricultural
mortgage loans — 90 days or more; and residential mortgage loans — 60 days or more. The Company defines mortgage loans under foreclosure as
loans in which foreclosure proceedings have formally commenced.
54 MetLife, Inc.