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Consolidated Statement of Cash Flows (Unaudited) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Cash flows from operating activities    
Net income $ 1,212 $ 1,355
Adjustments to reconcile net income to net cash provided by operating activities:    
Net realized investment gains [1] (85) (10)
Depreciation and amortization 409 413
Deferred federal income tax expense 106 75
Amortization of deferred acquisition costs 2,035 1,960
Equity in income from other investments (210) (44)
Premiums receivable (609) (567)
Reinsurance recoverables 157 316
Deferred acquisition costs (2,157) (2,062)
Claims and claim adjustment expense reserves 498 (387)
Unearned premium reserves 689 531
Other operating activities (460) (287)
Net cash provided by operating activities 1,585 1,293
Cash flows from investing activities    
Proceeds from maturities of fixed maturities 4,300 3,773
Proceeds from sales of investments:    
Fixed maturities 563 739
Equity securities 200 38
Real estate investments 20 69
Other investments 403 343
Purchases of investments:    
Fixed maturities (5,673) (5,705)
Equity securities (166) (26)
Real estate investments (26) (20)
Other investments (259) (290)
Net (purchases) sales of short-term securities (424) 681
Securities transactions in course of settlement 170 461
Other investing activities (129) (154)
Net cash used in investing activities (1,021) (91)
Cash flows from financing activities    
Treasury stock acquired - share repurchase authorization (700) (1,100)
Treasury stock acquired - net employee share-based compensation (61) (59)
Dividends paid to shareholders (389) (375)
Payment of debt (207) (400)
Issuance of debt 689 491
Issuance of common stock - employee share options 118 129
Net cash used in financing activities (550) (1,314)
Effect of exchange rate changes on cash 7 (3)
Net increase (decrease) in cash 21 (115)
Cash at beginning of year 307 380
Cash at end of period 328 265
Supplemental disclosure of cash flow information    
Income taxes paid 323 467
Interest paid $ 178 $ 180
[1] Total other-than-temporary impairment (OTTI) losses were $(5) million and $(4) million for the three months ended June 30, 2017 and 2016, respectively, and $(6) million and $(32) million for the six months ended June 30, 2017 and 2016, respectively. Of total OTTI, credit losses of $(5) million and $(4) million for the three months ended June 30, 2017 and 2016, respectively, and $(7) million and $(22) million for the six months ended June 30, 2017 and 2016, 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, 2017 and 2016, and $1 million and $(10) million for the six months ended June 30, 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.