Supplemental Disclosures of Cash Flow Information and Non-Cash Financing and Investing Activities

12 Months Ended

Dec. 31, 2024

Supplemental Cash Flow Elements [Abstract]

Supplemental Disclosures of Cash Flow Information and Non-Cash Financing and Investing Activities

NOTE 12 Supplemental Disclosures of Cash Flow Information and Non-Cash Financing and Investing Activities

During 2024, the Company had an impact of $13 million of foreign exchange rate changes on cash and cash equivalents inclusive of fiduciary cash reported on its Consolidated Statements of Cash Flows which is primarily due to the change currency exchange rates primarily for British pounds.

Pursuant to the sale of certain third-party claims administration and adjusting services businesses in the fourth quarter of 2023, the Company is entitled to future consideration payments upon achievement of certain conditions in accordance with the terms of the sale agreement. During the second quarter of 2024, the Company received cash of $57 million from the settlement of two of the contingent payments.

During 2024, the Company accrued for and deferred approximately $90 million related to certain federal income tax payments due to Hurricane Debby and Milton tax relief, which were announced by the Internal Revenue Service in August and October 2024, respectively. The deadline to pay these deferred tax payments is May 1, 2025.

During 2023, the Company accrued for and deferred $121 million related to certain federal income tax payments due to Hurricane Idalia tax relief, which was announced by the Internal Revenue Service on August 30, 2023. Included in the 2023 deferred payments was $30 million associated with the gain on disposal associated with certain third-party claims administration and adjusting services businesses sold in the fourth quarter of 2023. These deferred income tax payments were paid by the deadline of February 15, 2024. On March 15, 2023, the Company paid $31 million of accrued federal income tax payments deferred from the fourth quarter of 2022 related to similar tax relief announced by the Internal Revenue Service on September 29, 2022 and associated with Hurricane Ian.

The Company’s cash paid during the period for interest and income taxes are summarized as follows:

	Year Ended December 31,
(in millions)	2024		2023		2022
Cash paid during the period for:
Interest	$	195	$	186	$	120
Income taxes, net of refunds		302		218		122

The Company’s significant non-cash investing and financing activities are summarized as follows:

	Year Ended December 31,
(in millions)	2024		2023		2022
Other payables issued for agency acquisitions and purchased customer accounts	$	27	$	12	$	6
Estimated acquisition earn-out payables and related charges		73		67		73
Assumed acquisition earn-out payables		3		21		35
Common stock issued for agency acquisition		—		18		15

Our fiduciary cash balance is composed of funds held in separate premium trust accounts as required by state law or, in some cases, per agreement with our carrier partners. The following is a reconciliation of fiduciary cash as of December 31, 2024, 2023 and 2022.

	Balance as of December 31,
(in millions)	2024		2023		2022
Table to reconcile restricted and non-restricted fiduciary cash
Restricted fiduciary cash	$	1,570	$	1,412	$	1,232
Non-restricted fiduciary cash		257		191		151
Total restricted and non-restricted fiduciary cash at the end of the period	$	1,827	$	1,603	$	1,383

The following is a reconciliation of cash and cash equivalents inclusive of restricted cash as of December 31, 2024, 2023 and 2022.

	Balance as of December 31,
(in millions)	2024		2023		2022
Table to reconcile cash and cash equivalents inclusive of fiduciary cash
Cash and cash equivalents	$	675	$	700	$	650
Fiduciary cash		1,827		1,603		1,383
Total cash and cash equivalents inclusive of fiduciary cash at the end of the period	$	2,502	$	2,303	$	2,033