Travelers 2003 Annual Report Download - page 90

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88
TRAVELERS PROPERTY CASUALTY CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
For the year ended December 31, 2003 2002 2001
Cash flows from operating activities
Net income (loss) $ 1,696.0 $ (27.0) $ 1,065.4
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Net realized investment gains (38.0) (146.7) (322.5)
Cumulative effect of changes in accounting principles, net of tax - 242.6 (3.2)
Depreciation and amortization 84.7 41.8 121.9
Deferred federal income taxes (benefits) 539.1 (588.8) 11.1
Amortization of deferred policy acquisition costs 1,983.7 1,810.2 1,538.7
Premium balances receivable (228.1) (204.4) (174.1)
Reinsurance recoverables (196.4) 69.8 (1,386.2)
Deferred acquisition costs (2,075.6) (1,915.1) (1,619.8)
Claims and claim adjustment expense reserves 836.6 2,999.4 1,479.0
Unearned premium reserves 650.9 793.0 407.6
Trading account activities (16.5) 115.6 (73.8)
Recoveries from former affiliate 360.7 159.3 -
Other 236.3 (424.1) 175.1
Net cash provided by operating activities 3,833.4 2,925.6 1,219.2
Cash flows from investing activities
Proceeds from maturities of investments
Fixed maturities 4,461.7 3,013.3 2,081.4
Mortgage loans 58.8 21.6 15.8
Proceeds from sales of investments
Fixed maturities 8,342.5 12,518.5 14,469.2
Equity securities 254.1 127.2 469.7
Real estate held for sale 11.0 23.3 -
Purchases of investments
Fixed maturities (15,555.2) (19,005.3) (16,008.7)
Equity securities (60.6) (99.6) (67.4)
Mortgage loans (11.7) (5.2) (4.1)
Real estate - (1.2) (6.2)
Short-term securities, (purchases) sales, net 2,910.2 (1,730.9) (106.1)
Other investments, net 59.8 244.7 (667.9)
Securities transactions in course of settlement (2,945.6) 2,623.4 58.3
Business acquisitions - - (329.5)
Net cash used in investing activities (2,475.0) (2,270.2) (95.5)
Cash flows from financing activities
Issuance of convertible notes, net - 917.3 -
Issuance of short-term debt 549.5 - 211.8
Payment of short-term debt (550.0) - (211.8)
Issuance of long-term debt 1,381.9 549.4 -
Payment of long-term debt (553.0) (3.0) (500.0)
Issuance of note payable to former affiliate - 250.0 775.0
Payment of note payable to former affiliate (700.0) (6,349.0) (1,315.0)
Redemption of mandatorily redeemable preferred stock (900.0) - -
Treasury stock acquired:
Purchased (40.0) - -
Net shares issued under employee stock-based compensation plans (17.6) (3.7) -
Initial public offering - 4,089.5 -
Issuance of common stock-employee stock options 40.4 10.1 -
Receipts from former affiliates - 157.5 474.9
Dividends to shareholders (281.8) - -
Dividends to former affiliate - (157.5) (526.0)
Payment of dividend on subsidiary’s preferred stock (5.2) (2.2) -
Purchase of real estate from former affiliate - (68.2) -
Transfer of employee benefit obligations to former affiliates (22.7) (172.4) -
Transfer of lease obligations to former affiliate - (87.8) -
Return of capital from former subsidiaries - - 8.0
Minority investment in subsidiary - 89.5 -
Other - (19.6) -
Net cash used in financing activities (1,098.5) (800.1) (1,083.1)
Net increase (decrease) in cash 259.9 (144.7) 40.6
Cash at beginning of period 92.2 236.9 196.3
Cash at end of period $ 352.1 $ 92.2 $ 236.9
Supplemental disclosure of cash flow information
Income taxes (refunded) paid $ (64.2) $ 83.4 $ 325.6
Interest paid $ 139.7 $ 140.6 $ 129.7
See notes to consolidated financial statements.