Supplemental Cash Flow Information

9 Months Ended

Sep. 30, 2011

Supplemental Cash Flow Information

Supplemental Cash Flow Information

3.  Supplemental Cash Flow Information

Non-cash investment exchanges, including modifications of certain mortgage loans (primarily refinances at maturity with no concessions granted to the borrower), fixed income securities, limited partnerships and other investments, as well as mergers completed with equity securities, totaled $564 million and $544 million for the nine months ended September 30, 2011 and 2010, respectively.

Liabilities for collateral received in conjunction with the Company’s securities lending program and over-the-counter (“OTC”) derivatives are reported in other liabilities and accrued expenses or other investments.  The accompanying cash flows are included in cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds, which are as follows:

($ in millions)		Nine months ended  September 30,
		2011		2010
Net change in proceeds managed
Net change in short-term investments	$	(301)	$	187
Operating cash flow (used) provided		(301)		187
Net change in cash		1		2
Net change in proceeds managed	$	(300)	$	189
Net change in liabilities
Liabilities for collateral, beginning of year	$	(484)	$	(658)
Liabilities for collateral, end of period		(784)		(469)
Operating cash flow provided (used)	$	300	$	(189)