Schedule II

12 Months Ended

Dec. 31, 2012

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

BALANCE SHEETS (Parent Company Only)

	December 31			December 31
(in millions of U.S. dollars)	2012			2011
Assets
Investments in subsidiaries and affiliates on equity basis	$	27,251		$	23,871
Short-term investments	1			1
Other investments, at cost	30			32
Total investments	27,282			23,904
Cash	103			106
Due from subsidiaries and affiliates, net	204			498
Other assets	13			8
Total assets	$	27,602		$	24,516
Liabilities
Accounts payable, accrued expenses, and other liabilities	$	71		$	65
Dividends payable	—			119
Total liabilities	71			184
Shareholders' equity
Common Shares	9,591			10,095
Common Shares in treasury	(159		)	(327		)
Additional paid-in capital	5,179			5,326
Retained earnings	10,033			7,327
Accumulated other comprehensive income	2,887			1,911
Total shareholders' equity	27,531			24,332
Total liabilities and shareholders' equity	$	27,602		$	24,516
The condensed financial information should be read in conjunction with the consolidated financial statements and notes thereto.

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

STATEMENTS OF OPERATIONS (Parent Company Only)

	Years Ended December 31
(in millions of U.S. dollars)	2012			2011			2010
Revenues
Investment income, including intercompany interest income	$	34		$	39		$	38
Equity in net income of subsidiaries and affiliates	2,590			1,459			3,043
Net realized gains (losses)	17			(4		)	(42		)
	2,641			1,494			3,039
Expenses
Administrative and other (income) expense	(75		)	(56		)	(53		)
Income tax expense	10			10			7
	(65		)	(46		)	(46		)
Net income	$	2,706		$	1,540		$	3,085
Comprehensive income	$	3,682		$	1,857		$	3,856
The condensed financial information should be read in conjunction with the consolidated financial statements and notes thereto.

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

STATEMENTS OF CASH FLOWS (Parent Company Only)

	Years Ended December 31
(in millions of U.S. dollars)	2012				2011				2010
Net cash flows from (used for) operating activities		$	781			$	762			$	(176	)
Cash flows from investing activities
Purchases of fixed maturities available for sale		—				—				(1)
Sales of fixed maturities available for sale		—				9				—
Net derivative instruments settlements		(1		)		(3		)		(3)
Capital contribution to subsidiary		—				(385		)		(290		)
Advances (to) from affiliates		(2		)		41				851
Net cash flows from (used for) investing activities		(3		)		(338		)		557
Cash flows from financing activities
Dividends paid on Common Shares		(815		)		(459		)		(435		)
Net proceeds from issuance (repayment) of short-term debt		—				(300		)		300
Proceeds from share-based compensation plans		34				133				63
Net cash flows used for financing activities		(781		)		(626		)		(72		)
Net increase (decrease) in cash		(3		)		(202		)		309
Cash - beginning of year		106				308				(1		)
Cash - end of year		$	103			$	106			$	308
The condensed financial information should be read in conjunction with the consolidated financial statements and notes thereto.