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Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Cash flows from operating activities    
Net income (loss) $ 1,941 $ 805
Adjustments to reconcile net income to net cash flows from operating activities    
Net realized (gains) losses 194 878
Amortization of premiums/discounts on fixed maturities 161 105
Deferred income taxes 46 3
Unpaid losses and loss expenses 430 826
Unearned premiums 708 232
Future policy benefits 109 51
Insurance and reinsurance balances payable (174) 158
Accounts payable, accrued expenses, and other liabilities 252 508
Income taxes payable 44 74
Insurance and reinsurance balances receivable (828) (1,103)
Reinsurance recoverable on losses and loss expenses 606 133
Reinsurance recoverable on policy benefits 47 26
Deferred policy acquisition costs (260) (139)
Prepaid reinsurance premiums (115) (52)
Other (136) 493
Net cash flows from operating activities 3,025 2,998
Cash flows from investing activities    
Purchases of fixed maturities available for sale (17,348) (18,783)
Purchases of to be announced mortgage-backed securities (308) (785)
Purchases of fixed maturities held to maturity (217) (285)
Purchases of equity securities (114) (289)
Sales of fixed maturities available for sale 11,058 13,567
Sales of to be announced mortgage-backed securities 297 756
Sales of equity securities 57 364
Maturities and redemptions of fixed maturities available for sale 3,596 2,603
Maturities and redemptions of fixed maturities held to maturity 1,092 966
Net derivative instruments settlements (358) 67
Acquisition of subsidiaries (net of cash acquired of $8 and $81) (98) (394)
Other (339) (317)
Net cash flows from (used for) investing activities (2,682) (2,530)
Cash flows from financing activities    
Dividends paid on Common Shares (484) (342)
Common Shares repurchased (11) (168)
Proceeds from issuance of short-term debt 2,083 3,985
Repayment of short-term debt (1,932) (4,035)
Proceeds from share-based compensation plans 73 82
Net cash flows (used for) from financing activities (271) (478)
Effect of foreign currency rate changes on cash and cash equivalents 4 4
Net (decrease) increase in cash 76 (6)
Cash - beginning of period 614 772 [1]
Cash - end of period 690 [2] 766 [1]
Supplemental cash flow information    
Taxes paid 323 306
Interest paid $ 156 $ 151
[1] ACE maintains two notional multi-currency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At September 30, 2011 and December 31, 2010, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
[2] ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At September 30, 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.