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.

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 Vehicles(e)		Total
September 30, 2023
Assets:
Bonds available for sale	$	—	$	141	$	141
Other bond securities		2		—		2
Equity securities		7		—		7
Mortgage and other loans receivable		—		2,081		2,081
Other invested assets
Alternative investments(a)		2,849		—		2,849
Investment real estate		1,414		—		1,414
Short-term investments		134		30		164
Cash		54		—		54
Accrued investment income		—		6		6
Other assets		80		4		84

Total(b)	$	4,540	$	2,262	$	6,802
Liabilities:
Debt of consolidated investment entities	$	1,163	$	1,120	$	2,283
Other(c)		70		4		74
Total	$	1,233	$	1,124	$	2,357


(in millions)	Real Estate and Investment Entities(d)			Securitization Vehicles(e)		Total
December 31, 2022
Assets:
Bonds available for sale	$	—	$	3,672	$	3,672

Equity securities		51		—		51
Mortgage and other loans receivable		—		2,221		2,221
Other invested assets
Alternative investments(a)		2,842		—		2,842
Investment real estate		1,731		—		1,731
Short-term investments		191		281		472
Cash		71		—		71
Accrued investment income		—		9		9
Other assets		102		70		172
Total(b)	$	4,988	$	6,253	$	11,241
Liabilities:
Debt of consolidated investment entities	$	1,358	$	4,336	$	5,694
Other(c)		85		47		132
Total	$	1,443	$	4,383	$	5,826

(d)At September 30, 2023 and December 31, 2022, off-balance sheet exposure primarily consisting of our insurance companies’ commitments to real estate and investment entities were $1.9 billion and $2.1 billion, respectively, of which commitments to external parties were $0.4 billion and $0.6 billion, respectively.

(e)During the nine months ended September 30, 2023, as part of the sale of AIG Credit Management, LLC, certain consolidated investment entities were deconsolidated. The impact of the deconsolidation was a decrease of $3.6 billion in assets and $3.1 billion in liabilities, resulting in a pre-tax loss of $14 million.

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
September 30, 2023
Real estate and investment entities(a)	$	512,969	$	9,158	$	3,724	(d)	$	12,882
Other(b)		1,027		58		748	(e)		806
Total	$	513,996	$	9,216	$	4,472		$	13,688
December 31, 2022
Real estate and investment entities(a)	$	504,219	$	9,145	$	3,938	(d)	$	13,083
Other(b)		1,302		247		747	(e)		994
Total	$	505,521	$	9,392	$	4,685		$	14,077

(b)At September 30, 2023 and December 31, 2022, excludes approximately $1,935 million and $2,057 million, respectively, of VIE assets related to AIGFP and its consolidated subsidiaries, with maximum off-balance sheet exposure to loss of $1,907 million and $2,033 million, respectively. For additional information, see Note 1.

(c)At September 30, 2023 and December 31, 2022, $9.1 billion and $9.3 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets.

(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.