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Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Effect of Consolidating FG VIEs and Consolidated Investment Vehicles

on the Condensed Consolidated Statements of Operations

Increase (Decrease)



	First Quarter
	2020			2019
	(in millions)
Net earned premiums	$	(1	)	$	(3	)
Net investment income	(1		)	(1		)
Asset management fees	(1		)	—
Fair value gains (losses) on FG VIEs	(9		)	5
Fair value gains (losses) on consolidated investment vehicles	(12		)	—
Loss and LAE	6			(1		)
Equity in net earnings of investees	10			—
Effect on income before tax	(8		)	—
Less: Tax provision (benefit)	(1		)	—
Effect on net income (loss)	(7		)	—
Effect on redeemable noncontrolling interests	(3		)	—
Effect on net income (loss) attributable to AGL	$	(4	)	$	—

Effect of Consolidating FG VIEs and Consolidated Investment Vehicles

on Condensed Consolidated Statements of Cash Flows

Inflows (Outflows)



	First Quarter
	2020			2019
	(in millions)
Effect on cash flows from operating activities	$	(67	)	$	1
Effect on cash flows from investing activities	147			24
Effect on cash flows from financing activities	(12		)	(25		)
Total effect on cash flows	$	68		$	—



	As of March 31, 2020				As of December 31, 2019
	Assets		Liabilities		Assets		Liabilities
	(in millions)
With recourse:
U.S. RMBS first lien	$	224	$	252	$	270	$	297
U.S. RMBS second lien	62		60		70		70
Total with recourse	286		312		340		367
Without recourse	82		82		102		102
Total	$	368	$	394	$	442	$	469

Assets and Liabilities

of Consolidated Investment Vehicles



	As of March 31, 2020		As of December 31, 2019
	(in millions)
Assets:
Cash and restricted cash(1)	$	82	$	14
Corporate loans of CFE, at fair value	433		494
Corporate loans, at fair value	53		47
Other assets (2)	77		17
Total assets	$	645	$	572
Liabilities:
CLO obligations of CFE, at fair value(3)	426		481
Other liabilities	5		1
Total liabilities	$	431	$	482

____________________


(1)	Cash held by consolidated investment vehicles are not available to fund the general liquidity needs of the Company.


(2)	Includes investment in affiliates of $7 million and $9 million as of March 31, 2020 and December 31, 2019, respectively.

(3)

The weighted average maturity and weighted average interest rate of CLO obligations were 6.3 years and 3.8%, respectively, for March 31, 2020 and 12.8 years and 3.8%, respectively, for December 31, 2019. CLO obligations will mature in 2032.



	As of March 31, 2020		As of December 31, 2019
	(in millions)
Excess of unpaid principal over fair value of:
FG VIEs’ assets	$	316	$	279
FG VIEs’ liabilities with recourse	49		21
FG VIEs’ liabilities without recourse	30		19
Unpaid principal balance for FG VIEs’ assets that were 90 days or more past due	53		52
Unpaid principal for FG VIEs’ liabilities with recourse(1)	361		388

____________________

(1)

FG VIEs’ liabilities with recourse will mature at various dates ranging from 2020 to 2038.

Redeemable Noncontrolling Interest

Redeemable Noncontrolling Interests in Consolidated Investment Vehicles



	First Quarter 2020
	(in millions)
Beginning balance	$	7
Reallocation of ownership interests	(2		)
Contributions to investment vehicles	5
Net loss	(2		)
March 31,	$	8

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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