Travelers 2008 Annual Report Download - page 257

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
17. CONSOLIDATING FINANCIAL STATEMENTS OF THE TRAVELERS COMPANIES, INC. AND
SUBSIDIARIES (Continued)
CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)
For the twelve months ended December 31, 2008
Other
(in millions) TPC Subsidiaries Travelers(1) Eliminations Consolidated
Cash flows from operating activities
Net income ........................... $2,098 $ 1,084 $ 2,924 $(3,182) $ 2,924
Net adjustments to reconcile net income to net cash
provided by operating activities ............ 949 (501) 149 (383) 214
Net cash provided by operating activities ....... 3,047 583 3,073 (3,565) 3,138
Cash flows from investing activities
Proceeds from maturities of fixed maturities ..... 2,511 2,304 54 — 4,869
Proceeds from sales of investments:
Fixed maturities ...................... 3,529 3,389 14 — 6,932
Equity securities ...................... 23 30 — — 53
Real estate .......................... — 25 — — 25
Other investments ..................... 433 222 — — 655
Purchases of investments:
Fixed maturities ...................... (6,316) (4,811) — — (11,127)
Equity securities ...................... (3) (91) (1) — (95)
Real estate .......................... — (38) — — (38)
Other investments ..................... (392) (275) — — (667)
Net sales (purchases) of short-term securities ..... 507 (247) (666) — (406)
Securities transactions in course of settlement .... (325) 4 3 — (318)
Other ............................... (373) 328 — — (45)
Net cash provided by (used in) investing activities . (406) 840 (596) — (162)
Cash flows from financing activities
Issuance of debt ........................ — — 496 — 496
Payment of debt ........................ (403) — (149) — (552)
Dividends paid to shareholders .............. — — (715) — (715)
Issuance of common stock—employee share
options ............................ — — 89 — 89
Treasury shares acquired—share repurchase
authorization ........................ — — (2,167) — (2,167)
Treasury shares acquired—net employee
share-based compensation ................ — — (29) — (29)
Excess tax benefits from share-based payment
arrangements ........................ — — 10 — 10
Dividends paid to parent company ............ (2,257) (1,104) — 3,361 —
Capital contributions and loans between
subsidiaries ......................... — (178) (26) 204 —
Net cash used in financing activities .......... (2,660) (1,282) (2,491) 3,565 (2,868)
Effect of exchange rate changes on cash ........ — (29) — — (29)
Net increase (decrease) in cash .............. (19) 112 (14) — 79
Cash at beginning of period ................ 202 55 14 — 271
Cash at end of period .................... $ 183 $ 167 $ — $ — $ 350
Supplemental disclosure of cash flow information
Income taxes paid (received) ............... $ 737 $ 333 $ (229) $ — $ 841
Interest paid .......................... $ 80 $ — $ 295 $ — $ 375
(1) The Travelers Companies, Inc., excluding its subsidiaries.
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