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Variable Interest Entities
 9 Months Ended
Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entities
8. Variable Interest Entities
We enter into various arrangements with variable interest entities (VIEs) in the normal course of business and consolidate the VIEs when we determine we are the primary beneficiary. This analysis includes a review of the VIE’s capital structure, related contractual relationships and terms, nature of the VIE’s operations and purpose, nature of the VIE’s interests issued and our involvement with the entity. When assessing the need to consolidate a VIE, we evaluate the design of the VIE as well as the related risks to which the entity was designed to expose the variable interest holders.
The primary beneficiary is the entity that has both (i) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and (ii) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. While also considering these factors, the consolidation conclusion depends on the breadth of our decision-making ability and our ability to influence activities that significantly affect the economic performance of the VIE.
BALANCE SHEET CLASSIFICATION AND EXPOSURE TO LOSS    
Creditors or beneficial interest holders of VIEs for which AIG is the primary beneficiary generally have recourse only to the assets and cash flows of the VIEs and do not have recourse to AIG, except in limited circumstances when AIG has provided a guarantee to the VIE’s interest holders. The following table presents the total assets and total liabilities associated with our variable interests in consolidated VIEs, as classified in the Condensed Consolidated Balance Sheets:
(in millions)
Real Estate and
Investment
Entities(d)
Securitization VehiclesTotal
September 30, 2022
Assets:
Bonds available for sale$— $3,613 $3,613 
Other bond securities— 1,345 1,345 
Equity securities60 — 60 
Mortgage and other loans receivable
— 2,341 2,341 
Other invested assets
Alternative investments(a)
2,572 — 2,572 
Investment real estate1,785 — 1,785 
Short-term investments172 170 342 
Cash82 — 82 
Accrued investment income— 8 8 
Other assets
95 75 170 
Total(b)
$4,766 $7,552 $12,318 
Liabilities:
Debt of consolidated investment entities$1,359 $4,378 $5,737 
Other(c)
85 37 122 
Total$1,444 $4,415 $5,859 
December 31, 2021
Assets:
Bonds available for sale$— $5,543 $5,543 
Other bond securities— 1,852 1,852 
Equity securities223 — 223 
Mortgage and other loans receivable— 2,523 2,523 
Other invested assets
Alternative investments(a)
3,017 — 3,017 
Investment real estate2,257 — 2,257 
Short-term investments487 151 638 
Cash96 — 96 
Accrued investment income— 17 17 
Other assets190 558 748 
Total(b)
$6,270 $10,644 $16,914 
Liabilities:
Debt of consolidated investment entities$1,743 $4,504 $6,247 
Other(c)
122 722 844 
Total$1,865 $5,226 $7,091 
(a)Comprised primarily of investments in real estate joint ventures at September 30, 2022 and December 31, 2021.
(b)The assets of each VIE can be used only to settle specific obligations of that VIE.
(c)Comprised primarily of Other liabilities at September 30, 2022 and December 31, 2021.
(d)At September 30, 2022 and December 31, 2021, off-balance sheet exposure primarily consisting of our insurance companies’ commitments to real estate and investment entities were $2.3 billion and $2.2 billion, respectively, of which commitments to external parties were $0.5 billion and $0.6 billion, respectively.
We calculate our maximum exposure to loss to be (i) the amount invested in the debt or equity of the VIE, (ii) the notional amount of VIE assets or liabilities where we have also provided credit protection to the VIE with the VIE as the referenced obligation, and (iii) other commitments and guarantees to the VIE.
The following table presents total assets of unconsolidated VIEs in which we hold a variable interest, as well as our maximum exposure to loss associated with these VIEs:
Maximum Exposure to Loss
(in millions)Total VIE
Assets
On-Balance
Sheet(b)
Off-Balance
Sheet		Total
September 30, 2022
Real estate and investment entities(a)
$493,750 $8,468 $4,107 
(c)
$12,575 
Other1,732 265 747 
(d)
1,012 
Total$495,482 $8,733 $4,854 $13,587 
December 31, 2021
Real estate and investment entities(a)
$457,335 $7,650 $3,448 
(c)
$11,098 
Other1,738 237 528 
(d)
765 
Total$459,073 $7,887 $3,976 $11,863 
(a)Comprised primarily of hedge funds and private equity funds.
(b)At September 30, 2022 and December 31, 2021, $8.7 billion and $7.8 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets.
(c)These amounts represent our unfunded commitments to invest in private equity funds and hedge funds.
(d)These amounts represent our estimate of the maximum exposure to loss under certain insurance policies issued to VIEs if a hypothetical loss occurred to the extent of the full amount of the insured value. Our insurance policies cover defined risks and our estimate of liability is included in our insurance reserves on the balance sheet.
For additional information on VIEs see Note 9 to the Consolidated Financial Statements in the 2021 Annual Report.