XML 35 R8.htm IDEA: XBRL DOCUMENT v2.4.0.8
Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Cash flows from operating activities    
Net income $ 734 $ 953
Adjustments to reconcile net income to net cash flows from operating activities    
Net realized (gains) losses 104 (206)
Amortization of premiums/discounts on fixed maturities 53 66
Deferred income taxes 0 35
Unpaid losses and loss expenses (598) (505)
Unearned premiums 270 267
Future policy benefits 56 44
Insurance and reinsurance balances payable 112 (41)
Accounts payable, accrued expenses, and other liabilities (64) 144
Income taxes payable 15 29
Insurance and reinsurance balances receivable 264 (45)
Reinsurance recoverable on losses and loss expenses 478 435
Reinsurance recoverable on policy benefits (2) 10
Deferred policy acquisition costs (99) (121)
Prepaid reinsurance premiums (52) (58)
Other (21) (94)
Net cash flows from operating activities 1,250 913
Cash flows from investing activities    
Purchases of fixed maturities available for sale (3,522) (5,446)
Purchases of to be announced mortgage-backed securities 0 (19)
Purchases of fixed maturities held to maturity (30) (142)
Purchases of equity securities (37) (107)
Sales of fixed maturities available for sale 2,208 2,745
Sales of to be announced mortgage-backed securities 0 19
Sales of equity securities 27 31
Maturities and redemptions of fixed maturities available for sale 1,550 2,016
Maturities and redemptions of fixed maturities held to maturity 212 491
Net change in short-term investments (765) (687)
Net derivative instruments settlements (96) (279)
Acquisition of subsidiaries 0 (33)
Other (50) (55)
Net cash flows used for investing activities (503) (1,466)
Cash flows from financing activities    
Dividends paid on Common Shares (214) (2)
Common Shares repurchased (335) (154)
Proceeds from issuance of long-term debt 0 947
Proceeds from issuance of short-term debt 426 659
Repayment of short-term debt (426) (658)
Proceeds from share-based compensation plans, including windfall tax benefits 40 21
Other 37 0
Net cash flows (used for) from financing activities (472) 813
Effect of foreign currency rate changes on cash and cash equivalents (7) (20)
Net increase in cash 268 240
Cash – beginning of period 579 [1],[2] 615 [3]
Cash – end of period 847 [2],[4] 855 [3]
Supplemental cash flow information    
Taxes paid 60 43
Interest paid $ 51 $ 31
[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, 2013, 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 March 31, 2014 and December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
[3] 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 March 31, 2013 and December 31, 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
[4] 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 March 31, 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.