AIG 2011 Annual Report Download - page 298

American International Group, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AIG’s total off-balance sheet exposure associated with VIEs, primarily consisting of financial guarantees and
commitments to real estate and investment funds, was $0.4 billion and $1.0 billion at December 31, 2011 and
2010, respectively.
The following table presents AIG’s total assets, total liabilities and off-balance sheet exposure associated with its
variable interests in consolidated VIEs:
VIE Assets*VIE Liabilities Off-Balance Sheet Exposure
December 31,
(in billions) 2011 2010 2011 2010 2011 2010
AIA/ALICO SPVs $ 14.2 $ 48.6 $ 0.1 $ 0.9 $- $-
Real estate and investment funds 1.5 3.8 0.4 1.2 0.1 0.1
Commercial paper conduit 0.5 0.5 0.2 0.2 --
Affordable housing partnerships 2.5 2.9 0.1 0.4 --
Other 4.1 4.7 1.8 2.1 --
VIEs of businesses held for sale -0.4 ----
Total $ 22.8 $ 60.9 $ 2.6 $ 4.8 $ 0.1 $ 0.1
* The assets of each VIE can be used only to settle specific obligations of that VIE.
AIG calculates its 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 AIG has also provided credit protection to the VIE with
the VIE as the referenced obligation, and (iii) other commitments and guarantees to the VIE. Interest holders in
VIEs sponsored by AIG 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 total assets of unconsolidated VIEs in which AIG holds a variable interest, as well as
AIG’s maximum exposure to loss associated with these VIEs:
Maximum Exposure to Loss
Total VIE On-Balance Off-Balance
(in billions) Assets Sheet Sheet Total
December 31, 2011
Real estate and investment funds $ 18.3 $ 2.1 $ 0.3 $ 2.4
Affordable housing partnerships 0.6 0.6 - 0.6
Maiden Lane Interests 27.1 7.0 - 7.0
Other 1.5 - - -
Total $ 47.5 $ 9.7 $ 0.3 $ 10.0
December 31, 2010
Real estate and investment funds $ 18.5 $ 2.5 $ 0.3 $ 2.8
Affordable housing partnerships 0.6 0.6 - 0.6
Maiden Lane Interests 40.1 7.6 - 7.6
Other 1.6 0.1 0.5 0.6
VIEs of businesses held for sale 2.0 0.4 0.1 0.5
Total $ 62.8 $ 11.2 $ 0.9 $ 12.1
284 AIG 2011 Form 10-K
EXPOSURE TO LOSS