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Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Cash flows from operating activities    
Net income $ 1,301 $ 844
Adjustments to reconcile net income to net cash flows from operating activities    
Net realized (gains) losses 134 118
Amortization of premiums/discounts on fixed maturities 103 63
Deferred income taxes 1 45
Unpaid losses and loss expenses (644) 1,001
Unearned premiums 780 478
Future policy benefits 54 37
Insurance and reinsurance balances payable (60) 449
Accounts payable, accrued expenses, and other liabilities (9) 3
Income taxes payable   (91)
Insurance and reinsurance balances receivable (551) (578)
Reinsurance recoverable on losses and loss expenses 626 (296)
Reinsurance recoverable on policy benefits 48 29
Deferred policy acquisition costs (159) (137)
Prepaid reinsurance premiums (283) (156)
Other 42 254
Net cash flows from operating activities 1,383 2,063
Cash flows from investing activities    
Purchases of fixed maturities available for sale (11,522) (13,041)
Purchases of to be announced mortgage-backed securities (165) (642)
Purchases of fixed maturities held to maturity (136) (234)
Purchases of equity securities (93) (170)
Sales of fixed maturities available for sale 7,840 9,346
Sales of to be announced mortgage-backed securities 192 639
Sales of equity securities 33 347
Maturities and redemptions of fixed maturities available for sale 2,280 1,758
Maturities and redemptions of fixed maturities held to maturity 739 656
Net derivative instruments settlements (133) (46)
Acquisition of subsidiaries (net of cash acquired of $95 in 2011) (30) (380)
Other (255) (132)
Net cash flows from (used for) investing activities (1,250) (1,899)
Cash flows from financing activities    
Dividends paid on Common Shares (318) (223)
Common Shares repurchased (11) (68)
Proceeds from issuance of short-term debt 1,532 3,311
Repayment of short-term debt (1,381) (3,211)
Proceeds from share-based compensation plans 55 76
Net cash flows (used for) from financing activities (123) (115)
Effect of foreign currency rate changes on cash and cash equivalents (7) 12
Net increase in cash 3 61
Cash - beginning of period 614 772 [1]
Cash - end of period 617 [2],[3] 833 [1]
Supplemental cash flow information    
Taxes paid 259 265
Interest paid $ 119 $ 112
[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 June 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 June 30, 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.
[3] 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 June 30, 2012 one or more entities was negative; however, the overall Pool balances were positive.