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Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Cash flows from operating activities    
Net income $ 1,513 $ 1,844
Adjustments to reconcile net income to net cash flows from operating activities    
Net realized (gains) losses 177 (310)
Amortization of premiums/discounts on fixed maturities 115 134
Deferred income taxes 117 98
Unpaid losses and loss expenses (493) (304)
Unearned premiums 594 693
Future policy benefits 139 117
Insurance and reinsurance balances payable 142 182
Accounts payable, accrued expenses, and other liabilities 37 230
Income taxes payable (56) 20
Insurance and reinsurance balances receivable (244) (611)
Reinsurance recoverable on losses and loss expenses 546 538
Reinsurance recoverable on policy benefits (14) 2
Deferred policy acquisition costs (228) (268)
Prepaid reinsurance premiums (171) (179)
Other (78) (378)
Net cash flows from operating activities 2,096 1,808
Cash flows from investing activities    
Purchases of fixed maturities available for sale (7,960) (10,778)
Purchases of to be announced mortgage-backed securities 0 (26)
Purchases of fixed maturities held to maturity (129) (299)
Purchases of equity securities (64) (194)
Sales of fixed maturities available for sale 3,842 5,370
Sales of to be announced mortgage-backed securities 0 26
Sales of equity securities 45 62
Maturities and redemptions of fixed maturities available for sale 3,163 4,112
Maturities and redemptions of fixed maturities held to maturity 414 908
Net change in short-term investments (295) (137)
Net derivative instruments settlements (185) (317)
Acquisition of subsidiaries (net of cash acquired of $4 and $38) (172) (977)
Other (118) (126)
Net cash flows used for investing activities (1,459) (2,376)
Cash flows from financing activities    
Dividends paid on Common Shares (428) (169)
Common Shares repurchased (557) (212)
Proceeds from issuance of long-term debt 699 947
Proceeds from issuance of short-term debt 977 1,570
Repayment of long-term debt (500) 0
Repayment of short-term debt (977) (1,570)
Proceeds from share-based compensation plans, including windfall tax benefits 75 62
Other 86 30
Net cash flows (used for) from financing activities (625) 658
Effect of foreign currency rate changes on cash and cash equivalents 3 (26)
Net increase in cash 15 64
Cash – beginning of period 579 [1],[2] 615 [3]
Cash – end of period 594 [2],[4] 679 [3]
Supplemental cash flow information    
Taxes paid 148 88
Interest paid $ 134 $ 117
[1] 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 December 31, 2013, 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 June 30, 2014 and December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
[3] 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 June 30, 2013 and December 31, 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
[4] 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 June 30, 2014, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.