Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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 Vehicles		Total
September 30, 2022
Assets:
Bonds available for sale	$	—	$	3,613	$	3,613
Other bond securities		—		1,345		1,345
Equity securities		60		—		60
Mortgage and other loans receivable		—		2,341		2,341
Other invested assets
Alternative investments(a)		2,572		—		2,572
Investment real estate		1,785		—		1,785
Short-term investments		172		170		342
Cash		82		—		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 securities		223		—		223
Mortgage and other loans receivable		—		2,523		2,523
Other invested assets
Alternative investments(a)		3,017		—		3,017
Investment real estate		2,257		—		2,257
Short-term investments		487		151		638
Cash		96		—		96
Accrued investment income		—		17		17
Other assets		190		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.

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
Other		1,732		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
Other		1,738		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.

- 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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