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Consolidated Statements Of Cash Flows (USD $)
In Millions
9 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Cash flows from operating activities  
Net income (loss)$ 835$ 2,107
Adjustments to reconcile net income to net cash flows from operating activities  
Net realized losses (gains)878(127)
Amortization of premiums/discounts on fixed maturities105103
Deferred income taxes5(16)
Unpaid losses and loss expenses82658
Unearned premiums232517
Future policy benefits5194
Insurance and reinsurance balances payable158(290)
Accounts payable, accrued expenses, and other liabilities508116
Income taxes payable74146
Insurance and reinsurance balances receivable(1,103)12
Reinsurance recoverable on losses and loss expenses13365
Reinsurance recoverable on policy benefits2612
Deferred policy acquisition costs(154)(172)
Prepaid reinsurance premiums(52)(167)
Other476317
Net cash flows from operating activities2,9982,775
Cash flows from investing activities  
Purchases of fixed maturities available for sale(18,783)(22,762)
Purchases of to be announced mortgage-backed securities(785)(1,128)
Purchases of fixed maturities held to maturity(285)(514)
Purchases of equity securities(289)(336)
Sales of fixed maturities available for sale13,56717,233
Sales of to be announced mortgage-backed securities7561,063
Sales of equity securities364432
Maturities and redemptions of fixed maturities available for sale2,6032,666
Maturities and redemptions of fixed maturities held to maturity966931
Net derivative instruments settlements6711
Acquisition of subsidiaries (net of cash acquired of $81 in 2011)(394)(67)
Other(317)(197)
Net cash flows from (used for) investing activities(2,530)(2,668)
Cash flows from financing activities  
Dividends paid on Common Shares(342)(323)
Common Shares repurchased(168) 
Proceeds from issuance of short term debt3,985175
Repayment of short-term debt(4,035)(175)
Proceeds from share-based compensation plans8241
Net cash flows used for financing activities(478)(282)
Effect of foreign currency rate changes on cash and cash equivalents4(7)
Net increase (decrease) in cash(6)(182)
Cash - beginning of period772[1]669[1]
Cash - end of period766[1]487[1]
Supplemental cash flow information  
Taxes paid306296
Interest paid$ 151$ 130
[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 September 30, 2011, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.