AIG 2015 Annual Report Download - page 157

ITEM 7 / LIQUIDITY AND CAPITAL RESOURCES
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157
Uses:
Change in restricted cash - (1,447) -
Change in policyholder contract balances - - (547)
Repayments of long-term debt (9,805) (16,160) (14,197)
Purchases of AIG Common Stock (10,691) (4,902) (597)
Net cash used in other financing activities (210) (7,132) (1,652)
Total uses (20,706) (29,641) (16,993)
Effect of exchange rate changes on cash (39) (74) (92)
Increase (decrease) in cash $(129) $ (571) $ 1,114
* For 2014, cash decreased by $162 million due to reclassification of $289 million to restricted cash presented in Other assets, partially offset by a $127 million
reclassification from Short-term investments, to correct prior period presentation.
The following table presents a summary of AIG’s Consolidated Statement of Cash Flows:
Years Ended December 31,
(in millions) 2015 2014 2013
Summary:
Net cash provided by operating activities $ 2,877 $ 5,007 $5,865
Net cash provided by investing activities 8,462 14,284 7,099
Net cash used in financing activities (11,429) (19,788) (11,758)
Effect of exchange rate changes on cash (39) (74) (92)
Increase (decrease) in cash (129) (571) 1,114
Cash at beginning of year 1,758 2,241 1,151
Change in cash of businesses held for sale - 88 (24)
Cash at end of year $ 1,629 $ 1,758 $2,241
Operating Cash Flow Activities
Insurance companies generally receive most premiums in advance of the payment of claims or policy benefits. The ability of
insurance companies to generate positive cash flow is affected by the frequency and severity of losses under their insurance
policies, policy retention rates and operating expenses.
Interest payments totaled $1.4 billion in 2015, compared to $3.4 billion in 2014 and $3.9 billion in 2013. Excluding interest
payments, AIG generated positive operating cash flow of $4.2 billion, $8.3 billion and $9.7 billion in 2015, 2014 and 2013,
respectively.
Cash provided by operating activities of our Non-Life Insurance Companies was $1.0 billion in 2015, compared to $0.9 billion
in 2014 and $0.4 billion in 2013. The increase in 2014 compared to 2013 was primarily due to the timing of the payments
related to catastrophe losses for 2013.
Cash provided by operating activities of our Life Insurance Companies was $3.8 billion in 2015, compared to $4.4 billion in
2014 and $4.3 billion in 2013. The decline in 2015 compared to 2014 was primarily due to a greater increase in other assets
and liabilities, net.
Cash provided by operating activities of businesses held for sale was $2.9 billion for 2013.