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Consolidated Statement of Cash Flows (Unaudited) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Cash flows from operating activities    
Net income $ 617 $ 691
Adjustments to reconcile net income to net cash provided by operating activities:    
Net realized investment (gains) losses [1] (5) 9
Depreciation and amortization 211 213
Deferred federal income tax expense 151 105
Amortization of deferred acquisition costs 1,003 971
Equity in income from other investments (109) (17)
Premiums receivable (286) (393)
Reinsurance recoverables 94 126
Deferred acquisition costs (1,065) (1,014)
Claims and claim adjustment expense reserves 334 226
Unearned premium reserves 475 328
Other operating activities (645) (395)
Net cash provided by operating activities 775 850
Cash flows from investing activities    
Proceeds from maturities of fixed maturities 2,218 1,748
Proceeds from sales of investments:    
Fixed maturities 188 421
Equity securities 21 14
Real estate investments 11 69
Other investments 195 186
Purchases of investments:    
Fixed maturities (3,056) (2,700)
Equity securities (22) (12)
Real estate investments (16) (7)
Other investments (124) (162)
Net sales of short-term securities 49 85
Securities transactions in course of settlement 157 291
Other investing activities (63) (79)
Net cash used in investing activities (442) (146)
Cash flows from financing activities    
Treasury stock acquired - share repurchase authorization (225) (550)
Treasury stock acquired - net employee share-based compensation (61) (59)
Dividends paid to shareholders (190) (180)
Issuance of common stock - employee share options 83 64
Net cash used in financing activities (393) (725)
Effect of exchange rate changes on cash 2 2
Net decrease in cash (58) (19)
Cash at beginning of year 307 380
Cash at end of period 249 361
Supplemental disclosure of cash flow information    
Income taxes paid 2 63
Interest paid $ 43 $ 42
[1] Total other-than-temporary impairment (OTTI) losses were $(1) million and $(28) million for the three months ended March 31, 2017 and 2016, respectively. Of total OTTI, credit losses of $(2) million and $(18) million for the three months ended March 31, 2017 and 2016, respectively, were recognized in net realized investment gains (losses). In addition, unrealized gains (losses) from other changes in total OTTI of $1 million and $(10) million for the three months ended March 31, 2017 and 2016, respectively, were recognized in other comprehensive income as part of changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income.