Company: L
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0000060086-25-000036
Chunk: 415

Company: LOEWS CORP
Filing Date: 2025-02-11
Form: 10-K
Item: Item 7
Chunk 415
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Net Unrealized Gains (Losses)Estimated Fair ValueNet Unrealized Gains(Losses)(In millions)     Corporate and other bonds - REITs:AA$6 $10 A310 $(6)285 $(3)BBB942 (40)994 (64)Non-investment grade37 (2)27 (1)Total corporate and other bonds - REITs$1,295 $(48)$1,316 $(68)

67

Mortgage loans are commercial in nature and are carried at unpaid principal balance, net of unamortized fees and an allowance for expected credit losses. The allowance for expected credit losses is developed by assessing the credit quality of pools of mortgage loans in good standing using debt service coverage ratios (“DSCR”) and loan-to-value ratios (“LTV”). This assessment utilizes historical credit loss experience adjusted to reflect current conditions and reasonable and supportable forecasts. As of December 31, 2024 and 2023, the allowance for expected credit losses on CNA’s mortgage portfolio was $35 million, or 3.3% of its amortized cost basis. 

The following table presents the amortized cost basis of mortgage loans by property type:

December 31, 2024December 31, 2023Amortized CostPercentage of TotalAmortized CostPercentage of Total(In millions, except %)     Mortgage loans:Retail$527 50 %$520 48 %Office239 22 245 23 Industrial123 12 124 12 Other165 16 181 17 Total mortgage loans1,054 100 %1,070 100 %Less: Allowance for expected credit losses(35)(35)Total mortgage loans - net of allowance$1,019 $1,035 

In addition to the mortgage loan portfolio, CNA invests in securitized credit tenant loans and ground lease financings that are classified as fixed maturity securities and are largely investment grade quality. As of December 31, 2024 and 2023, these holdings had an estimated fair value of $471 million and $479 million, and net unrealized losses of $118 million and $87 million.

CNA owns other fixed maturity securities which have exposure to cell towers, data centers and other collateral types that could be viewed as having real estate characteristics. CNA views these securities to have risks more similar to operating enterprises that do not