This excerpt taken from the ALL 10-Q filed May 7, 2009.
Mortgage loans Our mortgage loan portfolio, which is primarily held in the Allstate Financial portfolio, was $9.71 billion at March 31, 2009 and comprised primarily loans secured by first mortgages on developed commercial real estate. Geographical and property type diversification are key considerations used to manage our exposure. The portfolio is diversified across several property types. Our exposure to any metropolitan area is also highly diversified, with the largest exposure not exceeding 9% of the portfolio. The average debt service coverage ratio represents the amount of cash flows from the property available by the borrower to meet its principal and interest payment obligations. The average debt service coverage ratio of the portfolio as of March 31, 2009 was 1.8, and only 4.0% of the mortgage loan portfolio had a debt service coverage ratio under 1.0.
In the first quarter of 2009, $156 million of commercial mortgage loans were contractually due. Of these, 32% were paid as due, 29% were extended generally for less than one year and 39% are in the process of refinancing or restructuring negotiations. In addition, $277 million that were not contractually due in the first quarter of 2009 were paid in full. We currently have $25 million of loans in the process of foreclosure and we are aggressively pursing workout solutions for these loans, which includes refinancing, extensions and sales.
The net carrying value of impaired loans at March 31, 2009 and December 31, 2008 was $318 million and $163 million, respectively. We recognized $28 million of realized capital losses related to valuation allowances on mortgage loans for the quarter ended March 31, 2009. Total valuation allowances of $32 million were held at March 31, 2009. Realized capital losses due to changes in intent to hold mortgage loans to maturity totaled $6 million for the quarter ended March 31, 2009.