Travelers 2009 Annual Report Download - page 176

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
For the year ended December 31, 2009 2008 2007
Cash flows from operating activities
Net income...................................................... $ 3,622 $ 2,924 $ 4,601
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17) 415 (154)
Depreciation and amortization....................................... 797 821 811
Deferred federal income tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213 (58) 230
Amortization of deferred acquisition costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,813 3,880 3,706
Equity in (income) loss from other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 312 (570)
Premiums receivable ............................................. 364 285 (4)
Reinsurance recoverables .......................................... 1,416 1,209 2,172
Deferred acquisition costs.......................................... (3,797) (3,845) (3,925)
Claims and claim adjustment expense reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,596) (2,033) (1,410)
Unearned premium reserves ........................................ (96) (270) 103
Other ...................................................... (614) (502) (274)
Net cash provided by operating activities ............................... 4,231 3,138 5,286
Cash flows from investing activities
Proceeds from maturities of fixed maturities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,316 4,869 5,305
Proceeds from sales of investments:
Fixed maturities ................................................. 2,805 6,932 7,323
Equity securities ................................................. 65 53 106
Real estate..................................................... —25 11
Other investments ................................................ 511 655 1,460
Purchases of investments:
Fixed maturities ................................................. (9,647) (11,127) (14,719)
Equity securities ................................................. (24) (95) (135)
Real estate..................................................... (15) (38) (74)
Other investments ................................................ (349) (667) (740)
Net sales (purchases) of short-term securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 370 (406) (562)
Securities transactions in course of settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395 (318) (123)
Other ......................................................... (326) (45) (378)
Net cash used in investing activities .................................. (899) (162) (2,526)
Cash flows from financing activities
Payment of debt................................................... (143) (552) (1,956)
Issuance of debt................................................... 494 496 2,461
Dividends paid to shareholders ......................................... (693) (715) (742)
Issuance of common stock—employee share options . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 89 218
Treasury stock acquired—share repurchase authorization . . . . . . . . . . . . . . . . . . . . . . . . . (3,259) (2,167) (2,920)
Treasury stock acquired—net employee share-based compensation . . . . . . . . . . . . . . . . . . . (29) (29) (39)
Excess tax benefits from share-based payment arrangements . . . . . . . . . . . . . . . . . . . . . . . 810 25
Net cash used in financing activities ................................. (3,442) (2,868) (2,953)
Effect of exchange rate changes on cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 (29) 5
Net increase (decrease) in cash ......................................... (95) 79 (188)
Cash at beginning of period ........................................... 350 271 459
Cash at end of period ............................................... $ 255 $ 350 $ 271
Supplemental disclosure of cash flow information
Income taxes paid.................................................. $ 876 $ 841 $ 1,346
Interest paid..................................................... $ 385 $ 375 $ 357
See notes to consolidated financial statements.
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