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Consolidated Statement of Cash Flows (Unaudited) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Cash flows from operating activities    
Net income $ 669 $ 617
Adjustments to reconcile net income to net cash provided by operating activities:    
Net realized investment (gains) losses [1] 11 (5)
Depreciation and amortization 212 211
Deferred federal income tax expense (benefit) (56) 151
Amortization of deferred acquisition costs 1,061 1,003
Equity in income from other investments (95) (109)
Premiums receivable (397) (286)
Reinsurance recoverables 5 94
Deferred acquisition costs (1,124) (1,065)
Claims and claim adjustment expense reserves 180 334
Unearned premium reserves 518 475
Other operating activities (430) (572)
Net cash provided by operating activities 554 848
Cash flows from investing activities    
Proceeds from maturities of fixed maturities 1,950 2,218
Proceeds from sales of investments:    
Fixed maturities 1,085 188
Equity securities 26  
Equity securities   21
Real estate investments   11
Other investments 114 122
Purchases of investments:    
Fixed maturities (3,920) (3,056)
Equity securities (20)  
Equity securities   (22)
Real estate investments (33) (16)
Other investments (142) (124)
Net sales of short-term securities 410 49
Securities transactions in course of settlement 202 157
Other investing activities (53) (63)
Net cash used in investing activities (381) (515)
Cash flows from financing activities    
Treasury stock acquired — share repurchase authorization (350) (225)
Treasury stock acquired — net employee share-based compensation (51) (61)
Dividends paid to shareholders (197) (190)
Payment of debt (100)  
Issuance of debt 491  
Issuance of common stock — employee share options 85 83
Net cash used in financing activities (122) (393)
Effect of exchange rate changes on cash 2 2
Net increase (decrease) in cash 53 (58)
Cash at beginning of year 344 307
Cash at end of period 397 249
Supplemental disclosure of cash flow information    
Income taxes paid 56 2
Interest paid $ 39 $ 43
[1] Total other-than-temporary impairment (OTTI) gains (losses) were $0 and $(1) million for the three months ended March 31, 2018 and 2017, respectively. Of total OTTI, credit losses of $0 and $(2) million for the three months ended March 31, 2018 and 2017, respectively, were recognized in net realized investment gains (losses). In addition, unrealized gains from other changes in total OTTI of $0 and $1 million for the three months ended March 31, 2018 and 2017, respectively, were recognized in other comprehensive income (loss) as part of changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income.