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Consolidated Statement of Cash Flows (Unaudited) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Cash flows from operating activities    
Net income $ 1,193 $ 1,212
Adjustments to reconcile net income to net cash provided by operating activities:    
Net realized investment gains [1] (25) (85)
Depreciation and amortization 411 409
Deferred federal income tax expense (benefit) (70) 106
Amortization of deferred acquisition costs 2,142 2,035
Equity in income from other investments (169) (210)
Premiums receivable (660) (609)
Reinsurance recoverables 29 157
Deferred acquisition costs (2,284) (2,157)
Claims and claim adjustment expense reserves 435 498
Unearned premium reserves 879 689
Other operating activities (183) (291)
Net cash provided by operating activities 1,698 1,754
Cash flows from investing activities    
Proceeds from maturities of fixed maturities 3,657 4,300
Proceeds from sales of investments:    
Fixed maturities 2,607 563
Equity securities 92  
Equity securities   200
Real estate investments   20
Other investments 189 233
Purchases of investments:    
Fixed maturities (7,952) (5,673)
Equity securities (60)  
Equity securities   (166)
Real estate investments (44) (26)
Other investments (275) (259)
Net (purchases) sales of short-term securities 1,202 (424)
Securities transactions in course of settlement 279 170
Other investing activities (152) (128)
Net cash used in investing activities (457) (1,190)
Cash flows from financing activities    
Treasury stock acquired — share repurchase authorization (700) (700)
Treasury stock acquired — net employee share-based compensation (51) (61)
Dividends paid to shareholders (404) (389)
Payment of debt (600) (207)
Issuance of debt 491 689
Issuance of common stock — employee share options 98 118
Net cash used in financing activities (1,166) (550)
Effect of exchange rate changes on cash (4) 7
Net increase in cash 71 21
Cash at beginning of year 344 307
Cash at end of period 415 328
Supplemental disclosure of cash flow information    
Income taxes paid 238 323
Interest paid $ 175 $ 178
[1] Total other-than-temporary impairment (OTTI) losses were $(1) million and $(5) million for the three months ended June 30, 2018 and 2017, respectively, and $(1) million and $(6) million for the six months ended June 30, 2018 and 2017, respectively. Of total OTTI, credit losses of $(1) million and $(5) million for the three months ended June 30, 2018 and 2017, respectively, and $(1) million and $(7) million for the six months ended June 30, 2018 and 2017, respectively, were recognized in net realized investment gains. In addition, unrealized gains (losses) from other changes in total OTTI of $0 million for each of the three months ended June 30, 2018 and 2017, respectively, and $0 million and $1 million for the six months ended June 30, 2018 and 2017, respectively, were recognized in other comprehensive income (loss) as part of changes in net unrealized gains (losses) on investment securities having credit losses recognized in the consolidated statement of income.