Schedule II

12 Months Ended

Dec. 31, 2014

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)	2014			2013
Assets
Investments in subsidiaries and affiliates on equity basis	$	29,497		$	28,351
Short-term investments	1			2
Other investments, at cost	29			30
Total investments	29,527			28,383
Due from subsidiaries and affiliates, net	583			844
Other assets	4			5
Total assets	$	30,114		$	29,232
Liabilities
Affiliated notional cash pooling programs(1)	$	246		$	185
Accounts payable, accrued expenses, and other liabilities	281			222
Total liabilities	527			407
Shareholders' equity
Common Shares	8,055			8,899
Common Shares in treasury	(1,448		)	(255		)
Additional paid-in capital	5,145			5,238
Retained earnings	16,644			13,791
Accumulated other comprehensive income	1,191			1,152
Total shareholders' equity	29,587			28,825
Total liabilities and shareholders' equity	$	30,114		$	29,232
(1) ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2014 and 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)	2014			2013			2012
Revenues
Investment income, including interest income	$	37		$	34		$	34
Equity in net income of subsidiaries and affiliates	2,707			3,580			2,590
Net realized gains (losses)	—			—			17
	2,744			3,614			2,641
Expenses
Administrative and other (income) expense	(123		)	(161		)	(75		)
Income tax expense	14			17			10
	(109		)	(144		)	(65		)
Net income	$	2,853		$	3,758		$	2,706
Comprehensive income	$	2,892		$	2,023		$	3,682
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)	2014			2013			2012
Net cash flows from operating activities(1)	$	541		$	970		$	573
Cash flows from investing activities
Net change in short-term investments	—			(1		)	—
Net derivative instruments settlements	—			—			(1)
Capital contribution	—			(133		)	—
Net cash flows used for investing activities	—			(134		)	(1		)
Cash flows from financing activities
Dividends paid on Common Shares	(862		)	(517		)	(815		)
Proceeds from issuance of short-term debt	—			—			130
Repayment of short-term debt	—			—			(130		)
Proceeds from share-based compensation plans	—			14			34
Advances (to) from affiliates	260			(621		)	206
Net proceeds from affiliated notional cash pooling programs(2)	61			185			—
Net cash flows used for financing activities	(541		)	(939		)	(575		)
Net decrease in cash	—			(103		)	(3		)
Cash – beginning of year	—			103			106
Cash – end of year	$	—		$	—		$	103
(1) Includes cash dividends received from subsidiaries of $300 million, $825 million, and $450 million in 2014, 2013, and 2012, respectively.
(2) ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2014 and 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.