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Variable Interest Entities | 12 Months Ended
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Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Variable Interest Entities | 10. Variable Interest Entities A variable interest entity (VIE) is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity. Consolidation of a VIE by its primary beneficiary is not based on majority voting interest, but is based on other criteria discussed below. We enter into various arrangements with 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 Consolidated Balance Sheets: At December 31, 2024, there were no assets and liabilities associated with our variable interests in consolidated VIEs.
(in millions) |  |  |  |  | December 31, 2023
Assets: |  |  |  |  |
Bonds available for sale |  |  |  | $ | 72 |
Mortgage and other loans receivable |  |  |  |  | 122 |
Short-term investments |  |  |  |  | 5 |
Accrued investment income |  |  |  |  | 2 |
Other assets |  |  |  |  | 1 |
Total* |  |  |  | $ | 202 |
Liabilities: |  |  |  |  |
Debt of consolidated investment entities |  |  |  | $ | 38 |
Total |  |  |  | $ | 38 |
*The assets of each VIE can be used only to settle specific obligations of that VIE. 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(c) |  |  | Off-Balance Sheet |  |  | Total
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |
Real estate and investment entities(a) | $ | 367,661 |  |  | $ | 2,723 |  |  | $ | 839 |  | (d) | $ | 3,562 |
Other(b) |  | 4,639 |  |  |  | 255 |  |  |  | 754 |  | (e) |  | 1,009 |
Total | $ | 372,300 |  |  | $ | 2,978 |  |  | $ | 1,593 |  |  | $ | 4,571 |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |
Real estate and investment entities(a) | $ | 355,003 |  |  | $ | 4,107 |  |  | $ | 1,492 |  | (d) | $ | 5,599 |
Other(b) |  | 1,027 |  |  |  | — |  |  |  | 748 |  | (e) |  | 748 |
Total | $ | 356,030 |  |  | $ | 4,107 |  |  | $ | 2,240 |  |  | $ | 6,347 |
(a)Comprised primarily of hedge funds and private equity funds. (b)At December 31, 2024 and 2023, excludes approximately $1,925 million and $1,971 million, respectively, of VIE assets related to AIGFP and its consolidated subsidiaries, with maximum off-balance sheet exposure to loss of $1,894 million and $1,941 million, respectively. For additional information, see Note 1. (c)At December 31, 2024 and 2023, $2.9 billion and $4.1 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets. (d)These amounts represent our unfunded commitments to invest in private equity funds. (e)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. REAL ESTATE AND INVESTMENT ENTITIES Through our insurance operations and AIG Global Real Estate Investment Corp., we are an investor in various real estate investment entities, some of which are VIEs. These investments are typically with unaffiliated third-party developers via a partnership or limited liability company structure. The VIEs’ activities consist of the development or redevelopment of commercial, industrial and residential real estate. Our involvement varies from being a passive equity investor or finance provider to actively managing the activities of the VIEs. Our insurance operations participate as passive investors in the equity issued by certain third-party-managed hedge and private equity funds that are VIEs. Our insurance operations typically are not involved in the design or establishment of these VIEs, nor do they actively participate in the management of the VIEs. RMBS, CMBS, OTHER ABS AND CLOS Primarily through our insurance operations, we are a passive investor in RMBS, CMBS, other ABS and CLOs, the majority of which are issued by domestic special purpose entities. We generally do not sponsor or transfer assets to, or act as the servicer to these asset-backed structures, and were not involved in the design of these entities. Our maximum exposure in these types of structures is limited to our investment in securities issued by these entities and, where applicable, any unfunded commitments to these entities.

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- Definition The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 810 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/810/tableOfContent + Details
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