AIG 2013 Annual Report Download - page 291

We do not consolidate an operating partnership if the general partner is an unaffiliated entity. Through approximately
1,000 partnerships, SAAHP has investments in developments with approximately 130,000 apartment units
nationwide, and as of December 31, 2013, has syndicated approximately $7.7 billion in partnership equity to other
investors who will receive, among other benefits, tax credits under certain sections of the Internal Revenue Code.
The pre-tax income of SAAHP is reported, along with other AIG Life and Retirement partnership income, as a
component of the AIG Life and Retirement segment.
We created two VIEs for the purpose of acquiring, owning, leasing, maintaining, operating and selling aircraft. Our
subsidiaries hold beneficial interests, including all the equity interests in these entities. These beneficial interests
include passive investments by our insurance operations in non-voting preferred equity interests and in the majority
of the debt issued by these entities. We maintain the power to direct the activities of the VIEs that most significantly
impact the entities’ economic performance, and bear the obligation to absorb economic losses or receive economic
benefits that could potentially be significant to the VIEs. As a result, we have determined that we are the primary
beneficiary and we consolidate the assets and liabilities of these entities, which totaled $0.9 billion and $0.2 billion,
respectively at December 31, 2013 and $1.2 billion and $0.3 billion at December 31, 2012, respectively. The debt of
these entities is not an obligation of, or guaranteed by, us or any of our subsidiaries. Under a servicing agreement,
ILFC acts as servicer for the aircraft owned by these entities.
We sponsor one VIE that has issued a variable funding note backed by a commercial loan collateralized by individual
life insurance assets. As of December 31, 2013, total consolidated assets and liabilities for this entity were
$360 million and $117 million, respectively; our maximum exposure, representing the carrying value of the consumer
loan, was $330 million. As of December 31, 2012, total consolidated assets and liabilities for this entity were
$412 million and $188 million, respectively; our maximum exposure, representing the carrying value of the consumer
loan, was $389 million.
Through our insurance operations, we are a passive investor in RMBS, CMBS, other ABS and CDOs primarily 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.
Through the DIB, we also invest in CDOs and similar structures, which can be cash-based or synthetic and are
managed by third parties. The role of DIB is generally limited to that of a passive investor in structures we do not
manage.
Our maximum exposure in these types of structures is limited to our investment in securities issued by these entities.
Based on the nature of our investments and our passive involvement in these types of structures, we have
determined that we are not the primary beneficiary of these entities. We have not included these entities in the above
tables; however, the fair values of our investments in these structures are reported in Notes 5 and 6 herein.
ILFC created wholly-owned subsidiaries for the purpose of purchasing aircraft and obtaining financing secured by
such aircraft. A portion of the secured debt has been guaranteed by the European Export Credit Agencies and the
Export-Import Bank of the United States. These entities are VIEs because they do not have sufficient equity to
operate without ILFC’s subordinated financial support in the form of intercompany notes which serve as equity. ILFC
fully consolidates the entities, controls all the activities of the entities and guarantees the activities of the entities. AIG
has not included these entities in the above table as they are wholly-owned and there are no other variable interests
other than those of ILFC and the lenders.
Other
Aircraft Trusts
Commercial Loans Vehicles
RMBS, CMBS, Other ABS and CDOS
Variable Interest Entities of Business Held for Sale
Financing Vehicles
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AIG 2013 Form 10-K 273
ITEM 8 / NOTE 10. VARIABLE INTEREST ENTITIES
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