CONDENSED FINANCIAL INFORMATION OF REGISTRANT

BALANCE SHEETS (Parent Company Only)



	December 31			December 31
(in millions of U.S. dollars)	2013			2012
Assets
Investments in subsidiaries and affiliates on equity basis	$	28,351		$	27,251
Short-term investments	2			1
Other investments, at cost	30			30
Total investments	28,383			27,282
Cash	—			103
Due from subsidiaries and affiliates, net	844			204
Other assets	5			13
Total assets	$	29,232		$	27,602
Liabilities
Affiliated notional cash pooling programs⁽¹⁾	$	185		$	—
Accounts payable, accrued expenses, and other liabilities	222			71
Total liabilities	407			71
Shareholders' equity
Common Shares	8,899			9,591
Common Shares in treasury	(255		)	(159		)
Additional paid-in capital	5,238			5,179
Retained earnings	13,791			10,033
Accumulated other comprehensive income	1,152			2,887
Total shareholders' equity	28,825			27,531
Total liabilities and shareholders' equity	$	29,232		$	27,602

⁽¹⁾ ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1f) for additional information. At December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
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)	2013			2012			2011
Revenues
Investment income, including interest income	$	34		$	34		$	39
Equity in net income of subsidiaries and affiliates	3,580			2,590			1,459
Net realized gains (losses)	—			17			(4		)
	3,614			2,641			1,494
Expenses
Administrative and other (income) expense	(161		)	(75		)	(56		)
Income tax expense	17			10			10
	(144		)	(65		)	(46		)
Net income	$	3,758		$	2,706		$	1,540
Comprehensive income	$	2,023		$	3,682		$	1,857

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)	2013			2012⁽¹⁾			2011⁽¹⁾
Net cash flows from operating activities⁽²⁾	$	970		$	573		$	831
Cash flows from investing activities
Net change in short-term investments	(1		)	—			9
Net derivative instruments settlements	—			(1		)	(3)
Capital contribution	(133		)	—			(385		)
Net cash flows used for investing activities	(134		)	(1		)	(379		)
Cash flows from financing activities
Dividends paid on Common Shares	(517		)	(815		)	(459		)
Net repayments of short-term debt	—			—			(300		)
Proceeds from share-based compensation plans	14			34			133
Advances (to) from affiliates	(621		)	206			(28		)
Net proceeds from affiliated notional cash pooling programs⁽³⁾	185			—			—
Net cash flows used for financing activities	(939		)	(575		)	(654		)
Net decrease in cash	(103		)	(3		)	(202		)
Cash – beginning of year	103			106			308
Cash – end of year	$	—		$	103		$	106

⁽¹⁾ Certain items in the Condensed Statements of Cash Flows for the years ended December 31, 2012 and 2011 have been revised. Refer to Note 19 to the Consolidated Financial Statements for additional information.
⁽²⁾ Includes cash dividends received from subsidiaries of $825 million, $450 million, and $740 million in 2013, 2012, and 2011, respectively.
⁽³⁾ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1f) for additional information. At December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

The condensed financial information should be read in conjunction with the consolidated financial statements and notes thereto.