XML 20 R8.htm IDEA: XBRL DOCUMENT v3.10.0.1
Consolidated Statement of Cash Flows (Unaudited) - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Cash flows from operating activities    
Net income $ 1,902 $ 1,505
Adjustments to reconcile net income to net cash provided by operating activities:    
Net realized investment gains [1] (54) (146)
Depreciation and amortization 609 611
Deferred federal income tax expense (benefit) (43) 88
Amortization of deferred acquisition costs 3,259 3,094
Equity in income from other investments (284) (300)
Premiums receivable (508) (517)
Reinsurance recoverables (21) (19)
Deferred acquisition costs (3,425) (3,237)
Claims and claim adjustment expense reserves 880 1,561
Unearned premium reserves 1,095 852
Other operating activities 22 (7)
Net cash provided by operating activities 3,432 3,485
Cash flows from investing activities    
Proceeds from maturities of fixed maturities 5,655 6,581
Proceeds from sales of investments:    
Fixed maturities 3,185 860
Equity securities 127  
Equity securities   340
Real estate investments 8 23
Other investments 270 341
Purchases of investments:    
Fixed maturities (10,862) (8,403)
Equity securities (86)  
Equity securities   (193)
Real estate investments (57) (40)
Other investments (392) (392)
Net (purchases) sales of short-term securities 456 (990)
Securities transactions in course of settlement 173 122
Acquisition, net of cash acquired (4) (439)
Other investing activities (232) (186)
Net cash used in investing activities (1,759) (2,376)
Cash flows from financing activities    
Treasury stock acquired — share repurchase authorization (1,100) (1,028)
Treasury stock acquired — net employee share-based compensation (51) (61)
Dividends paid to shareholders (611) (589)
Payment of debt (600) (207)
Issuance of debt 591 689
Issuance of common stock — employee share options 117 148
Net cash used in financing activities (1,654) (1,048)
Effect of exchange rate changes on cash (4) 11
Net increase in cash 15 72
Cash at beginning of year 344 307
Cash at end of period 359 379
Supplemental disclosure of cash flow information    
Income taxes paid 244 467
Interest paid $ 225 $ 217
[1] Total other-than-temporary impairment (OTTI) losses were $0 million and $(5) million for the three months ended September 30, 2018 and 2017, respectively, and $(1) million and $(11) million for the nine months ended September 30, 2018 and 2017, respectively. Of total OTTI, credit losses of $0 million and $(5) million for the three months ended September 30, 2018 and 2017, respectively, and $(1) million and $(12) million for the nine months ended September 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 September 30, 2018 and 2017, respectively, and $0 million and $1 million for the nine months ended September 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.