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Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Cash flows from operating activities    
Net income $ 1,844 $ 1,301
Adjustments to reconcile net income to net cash flows from operating activities    
Net realized (gains) losses (310) 134
Amortization of premiums/discounts on fixed maturities 134 103
Deferred income taxes 98 1
Unpaid losses and loss expenses (304) (644)
Unearned premiums 693 780
Future policy benefits 117 54
Insurance and reinsurance balances payable 182 (60)
Accounts payable, accrued expenses, and other liabilities 230 (9)
Income taxes payable 20 0
Insurance and reinsurance balances receivable (611) (551)
Reinsurance recoverable on losses and loss expenses 538 626
Reinsurance recoverable on policy benefits 2 48
Deferred policy acquisition costs (268) (159)
Prepaid reinsurance premiums (179) (283)
Other (378) 42
Net cash flows from operating activities 1,808 1,383
Cash flows from investing activities    
Purchases of fixed maturities available for sale (10,915) (11,522)
Purchases of to be announced mortgage-backed securities (26) (165)
Purchases of fixed maturities held to maturity (299) (136)
Purchases of equity securities (194) (93)
Sales of fixed maturities available for sale 5,370 7,840
Sales of to be announced mortgage-backed securities 26 192
Sales of equity securities 62 33
Maturities and redemptions of fixed maturities available for sale 4,112 2,280
Maturities and redemptions of fixed maturities held to maturity 908 739
Net derivative instruments settlements (317) (133)
Acquisition of subsidiaries (net of cash acquired of $38 in 2013) (977) (30)
Other (126) (255)
Net cash flows used for investing activities (2,376) (1,250)
Cash flows from financing activities    
Dividends paid on Common Shares (169) (318)
Common Shares repurchased (212) (11)
Proceeds from issuance of long-term debt 947 0
Proceeds from issuance of short-term debt 1,570 1,532
Repayment of short-term debt (1,570) (1,381)
Proceeds from share-based compensation plans, including windfall tax benefits 62 55
Other 30 0
Net cash flows from financing activities 658 (123)
Effect of foreign currency rate changes on cash and cash equivalents (26) (7)
Net increase (decrease) in cash 64 3
Cash - beginning of period 615 [1] 614
Cash - end of period 679 [2] 617
Supplemental cash flow information    
Taxes paid 88 259
Interest paid $ 117 $ 119
[1] ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
[2] ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At June 30, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.