Recoveries of amounts previously written off

  
Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities, commercial mortgage backed securities and asset backed securities are not due at a single maturity date. As such, these securities were not included in the maturities distribution. 7.  Financing Receivables Financing receivables are comprised of commercial loans, consumer loans, and deposit receivables. See Note 2 for information regarding the Company’s accounting policies related to financing receivables and the allowance for credit losses.Allowance for Credit Losses The following tables present a rollforward of the allowance for credit losses:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | Commercial Loans |  | Consumer Loans |  | Total |
| (in millions) |
|  |  |  |  |  |  |
|  |  |  |  |  |  |
| Balance, January 1, 2021 | $ | 66  |  |  | $ | 2  |  |  | $ | 68  |  |
| Provisions | (13) |  |  | 2  |  |  | (11) |  |
| Charge-offs | (8) |  |  | (2) |  |  | (10) |  |
| Recoveries | —  |  |  | 1  |  |  | 1  |  |
| Other | 2  |  |  | —  |  |  | 2  |  |
| Balance, December 31, 2021 | $ | 47  |  |  | $ | 3  |  |  | $ | 50  |  |

  


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | Commercial Loans |  | Consumer Loans |  | Total |
| (in millions) |
| Balance, December 31, 2019 (1) | $ | 51  |  |  | $ | —  |  |  | $ | 51  |  |
| Cumulative effect of adoption of current expected credit losses guidance | 2  |  |  | 3  |  |  | 5  |  |
| Balance, January 1, 2020 | 53  |  |  | 3  |  |  | 56  |  |
| Provisions | 19  |  |  | 2  |  |  | 21  |  |
| Charge-offs | (6) |  |  | (3) |  |  | (9) |  |
|  |  |  |  |  |  |
| Balance, December 31, 2020 | $ | 66  |  |  | $ | 2  |  |  | $ | 68  |  |

(1) Prior to January 1, 2020, the allowance for credit losses was based on an incurred loss model that did not require estimating expected credit losses over the expected life of the asset.

|  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |
|   | Commercial Loans |  |  |  |  |
| (in millions) |  |  |  |  |
| Balance at January 1, 2019 | $ | 49  |  |  |  |  |  |
| Provisions | 5  |  |  |  |  |  |
| Charge-offs | (4) |  |  |  |  |  |
| Recoveries of amounts previously written off | 1  |  |  |  |  |  |
| Balance at December 31, 2019 | $ | 51  |  |  |  |  |  |

The decrease in the allowance for credit losses provision for commercial loans reflects the sale of certain commercial mortgage loans and syndicated loans in conjunction with the fixed deferred and immediate annuity reinsurance transaction discussed in Note 1.Accrued interest on commercial loans was $13 million and $16 million as of December 31, 2021 and 2020, respectively, and is recorded in Receivables and excluded from the amortized cost basis of commercial loans.Purchases and SalesDuring the year ended December 31, 2021, the Company sold $746 million of commercial mortgage loans.During the years ended December 31, 2021, 2020 and 2019, the Company purchased $37 million, $173 million and $162 million, respectively, of syndicated loans, and sold $354 million, $17 million and $54 million, respectively, of syndicated loans. During the years ended December 31, 2021 and 2020, the Company purchased $33 million and $22 million, respectively, of residential mortgage loans, and sold $1 million and nil, respectively, of residential mortgage loans. The allowance for credit losses for residential mortgage loans was not material as of both December 31, 2021 and 2020.The Company has not acquired any loans with deteriorated credit quality as of the acquisition date.        101
