XML 50 R8.htm IDEA: XBRL DOCUMENT v3.19.3
Consolidated Statement of Cash Flows (Unaudited) - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Cash flows from operating activities    
Net income $ 1,749 $ 1,902
Adjustments to reconcile net income to net cash provided by operating activities:    
Net realized investment gains [1] (101) (54)
Depreciation and amortization 581 609
Deferred federal income tax benefit (10) (43)
Amortization of deferred acquisition costs 3,420 3,259
Equity in income from other investments (196) (284)
Premiums receivable (611) (508)
Reinsurance recoverables 212 (21)
Deferred acquisition costs (3,619) (3,425)
Claims and claim adjustment expense reserves 927 880
Unearned premium reserves 1,350 1,095
Other operating activities 91 22
Net cash provided by operating activities 3,793 3,432
Cash flows from investing activities    
Proceeds from maturities of fixed maturities 4,895 5,655
Proceeds from sales of investments:    
Fixed maturities 1,801 3,185
Equity securities 99 127
Real estate investments 0 8
Other investments 346 270
Purchases of investments:    
Fixed maturities (8,234) (10,862)
Equity securities (62) (86)
Real estate investments (95) (57)
Other investments (369) (392)
Net sales (purchases) of short-term securities (617) 456
Securities transactions in course of settlement 432 173
Acquisition, net of cash acquired 0 (4)
Other investing activities (243) (232)
Net cash used in investing activities (2,047) (1,759)
Cash flows from financing activities    
Treasury stock acquired — share repurchase authorization (1,125) (1,100)
Treasury stock acquired — net employee share-based compensation (47) (51)
Dividends paid to shareholders (633) (611)
Payment of debt (500) (600)
Issuance of debt 492 591
Issuance of common stock — employee share options 206 117
Net cash used in financing activities (1,607) (1,654)
Effect of exchange rate changes on cash (4) (4)
Net increase in cash 135 15
Cash at beginning of year 373 344
Cash at end of period 508 359
Supplemental disclosure of cash flow information    
Income taxes paid 367 244
Interest paid $ 231 $ 225
[1]
Total other-than-temporary impairment (OTTI) losses were $0 million for each of the three months ended September 30, 2019 and 2018, and $(2) million and $(1) million for the nine months ended September 30, 2019 and September 30, 2018, respectively.  Of total OTTI, credit losses of $0 million for each of the three months ended September 30, 2019 and 2018, and $(2) million and $(1) million for the nine months ended September 30, 2019 and September 30, 2018, 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 and nine months ended September 30, 2019 and 2018 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.