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Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Cash flows from operating activities    
Net income $ 973 $ 250
Adjustments to reconcile net income to net cash flows from operating activities    
Net realized (gains) losses (260) 45
Amortization of premiums/discounts on fixed maturities 45 29
Deferred income taxes (1) 18
Unpaid losses and loss expenses (492) 1,016
Unearned premiums 265 125
Future policy benefits 27 (45)
Insurance and reinsurance balances payable (126) (47)
Accounts payable, accrued expenses, and other liabilities (65) (77)
Income taxes payable 41 32
Insurance and reinsurance balances receivable (58) 230
Reinsurance recoverable on losses and loss expenses 422 (717)
Reinsurance recoverable on policy benefits 11 32
Deferred policy acquisition costs (72) (55)
Prepaid reinsurance premiums (83) 7
Other (55) 160
Net cash flows from operating activities 572 1,003
Cash flows from investing activities    
Purchases of fixed maturities available for sale (5,429) (6,890)
Purchases of to be announced mortgage-backed securities (54) (343)
Purchases of fixed maturities held to maturity (32) (177)
Purchases of equity securities (19) (143)
Sales of fixed maturities available for sale 3,736 5,070
Sales of to be announced mortgage-backed securities 59 358
Sales of equity securities 26 317
Maturities and redemptions of fixed maturities available for sale 1,076 941
Maturities and redemptions of fixed maturities held to maturity 345 396
Net derivative instruments settlements (195) (85)
Acquisition of subsidiaries (net of cash acquired of $39 in 2011) (25) (45)
Other (103) (30)
Net cash flows used for investing activities (615) (631)
Cash flows from financing activities    
Dividends paid on Common Shares (159) (112)
Common Shares repurchased (11) (68)
Proceeds from issuance of short-term debt 681 1,400
Repayment of short-term debt (400) (1,300)
Proceeds from share-based compensation plans 28 43
Net cash flows from (used for) financing activities 139 (37)
Effect of foreign currency rate changes on cash and cash equivalents 5 8
Net increase in cash 101 343
Cash - beginning of period 614 772 [1]
Cash - end of period 715 1,115 [1]
Supplemental cash flow information    
Taxes paid 72 46
Interest paid $ 37 $ 31
[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 March 31, 2011 and December 31, 2010, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.