Travelers 2004 Annual Report Download - page 129

THE ST. PAUL TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
For the year ended December 31, 2004 2003 2002
Cash flows from operating activities
Net income (loss) ........................................................................ $ 955 $ 1,696 $ (27)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Net realized investment (gains) losses ................................................ 39 (38) (147)
Cumulative effect of changes in accounting principles, net of tax .......................... —— 243
Depreciation and amortization ...................................................... 541 85 42
Deferred federal income taxes (benefits) .............................................. (273) 539 (589)
Amortization of deferred policy acquisition costs ....................................... 2,979 1,984 1,810
Premiums receivable ............................................................. 320 (228) (204)
Reinsurance recoverables .......................................................... 584 (197) 70
Deferred acquisition costs ......................................................... (2,948) (2,076) (1,915)
Claims and claim adjustment expense reserves ......................................... 3,473 837 2,999
Unearned premium reserves ........................................................ (42) 651 793
Trading account activities ......................................................... 20 (16) 116
Recoveries from former affiliate .................................................... —361 159
Other ......................................................................... (407) 236 (424)
Net cash provided by operating activities ....................................... 5,241 3,834 2,926
Cash flows from investing activities
Proceeds from maturities of investments
Fixed maturities ..................................................................... 5,621 4,462 3,013
Mortgage loans ...................................................................... 76 59 22
Proceeds from sales of investments
Fixed maturities ..................................................................... 7,945 8,343 12,519
Equity securities ..................................................................... 265 254 127
Mortgage loans ...................................................................... 61 ——
Real estate ......................................................................... —11 23
Purchases of investments
Fixed maturities ..................................................................... (16,522) (15,555) (19,006)
Equity securities ..................................................................... (94) (61) (100)
Mortgage loans ...................................................................... (55) (12) (5)
Real estate ......................................................................... (22) — (1)
Short-term securities, (purchases) sales, net ................................................... (1,974) 2,910 (1,731)
Other investments, net .................................................................... 826 60 245
Securities transactions in course of settlement .................................................. (1,108) (2,946) 2,623
Net cash acquired in merger ................................................................ 166 ——
Other ................................................................................. 29 ——
Net cash used in investing activities ............................................ (4,786) (2,475) (2,271)
Cash flows from financing activities
Issuance of debt ......................................................................... 302 1,932 1,466
Payment of debt ......................................................................... (227) (1,103) (3)
Issuance of note payable to former affiliate .................................................... —— 250
Payment of note payable to former affiliate .................................................... —(700) (6,349)
Redemption of mandatorily redeemable securities of subsidiary trusts ............................... —(900) —
Treasury stock purchased .................................................................. —(40) —
Subsidiary’s treasury stock acquired ......................................................... (34) ——
Treasury stock acquired—net employee stock-based compensation ................................. (23) (18) (4)
Initial public offering ..................................................................... —— 4,090
Issuance of common stock-employee stock options ............................................. 129 40 10
Receipts from former affiliates ............................................................. —— 157
Dividends to shareholders ................................................................. (642) (282) —
Dividends to former affiliate ............................................................... —— (157)
Investment in (repurchase of) minority interest of subsidiary ...................................... (76) —90
Payment of dividend on subsidiary’s stock .................................................... (10) (5) (2)
Purchase of real estate from former affiliate ................................................... —— (68)
Transfer of employee benefit obligations to former affiliates ...................................... —(23) (172)
Transfer of lease obligations to former affiliate ................................................. —— (88)
Other ................................................................................. 41 — (20)
Net cash used in financing activities ............................................ (540) (1,099) (800)
Effect of exchange rate changes on cash ...................................................... 7——
Net increase (decrease) in cash ............................................................. (78) 260 (145)
Cash at beginning of period ................................................................ 352 92 237
Cash at end of period .................................................................... $ 274 $ 352 $ 92
Supplemental disclosure of cash flow information
Income taxes (refunded) paid ............................................................... $ 606 $ (64) $ 83
Interest paid ............................................................................ $ 286 $ 140 $ 141
See notes to consolidated financial statements.
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