Travelers 2006 Annual Report Download - page 252

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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21. CONSOLIDATING FINANCIAL STATEMENTS OF THE TRAVELERS COMPANIES, INC. AND
SUBSIDIARIES (Continued)
CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)
For the year ended December 31, 2006
(in millions) TPC
Other
Subsidiaries Travelers(1) Eliminations Consolidated
Cash flows from operating activities
Net income .................................... $3,012 $ 1,267 $ 4,208 $ (4,279 ) $ 4,208
Net adjustments to reconcile net income to net cash
provideby operating activities. .................. (153) 525 (4,085) 4,279 566
Net cash provided by operating activities........... 2,859 1,792 123 — 4,774
Cash flows from investing activities
Proceedsfrom maturities of fixed maturities. ........ 3,410 2,388 12 — 5,810
Proceeds from sales of investments:
Fixed maturities .............................. 2,192 2,166 43 — 4,401
Equity securities .............................. 195 90 — — 285
Purchases of investments:
Fixed maturities .............................. (7,852) (5,960) (33) — (13,845)
Equity securities .............................. (11)(72) ——(83)
Real estate. .................................. (2) (73)— —(75)
Short-term securities, (purchases) sales, net ......... (481) 264 132 — (85)
Other investments, net. .......................... 198 208 — — 406
Securities transactions in courseof settlement....... 539 (92) — — 447
Other......................................... (327) 2 — — (325)
Net cash provided by (used in) investing activities.... (2,139) (1,079) 154 — (3,064)
Cash flows from financing activities
Issuance of debt ................................ —— 786 — 786
Payment of debt ................................ (154) — (652) — (806)
Dividends paid to shareholders. ................... ——(702) — (702)
Issuance of common stock—employee share options. .— — 216 — 216
Treasury stock acquired—share repurchase program .— — (1,103) — (1,103)
Treasury stock acquired—net employee share-based
compensation ................................ — —(17) —(17)
Excess tax benefits from share-based payment
arrangements................................ — —16— 16
Dividends receivedby (paid to) parentcompany ..... (375) (780) 1,155 — —
Capital contributions and loans between subsidiaries .— (8) 8 — —
Other......................................... (2) —19— 17
Net cash used in financing activities ............... (531) (788) (274) — (1,593)
Effect of exchangerate changesoncash ............ —5 —— 5
Netincrease (decrease) incash.................... 189 (70) 3 — 122
Cash at beginning of period....................... 136 200 1 — 337
Cash at end of period ............................ $ 325 $ 130 $ 4 $ — $ 459
Supplemental disclosure ofcash flow information
Income taxes paid (received)...................... $869 $ 156 $ (164) $ — $ 861
Interest paid ................................... $138 $ — $ 220 $ — $ 358
(1)The Travelers Companies, Inc., excluding its subsidiaries.