The Hartford 2013 Annual Report Download - page 128

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For additional information on debt and the repurchase of warrants, see MD&A – Liquidity Requirements and Sources of Capital, and
Note 13 - Debt of Notes to Consolidated Financial Statements. For additional information on the business dispositions and AOCI, net of
tax, see Note 2 - Business Dispositions and Note 17 -Changes In and Reclassifications From Accumulated Other Comprehensive Income
of Notes to Consolidated Financial Statements, respectively.
Cash Flow
2013 2012 2011
Net cash provided by operating activities $ 1,237 $ 2,681 $ 2,274
Net provided by (cash used) for investing activities $ 3,745 $ (2,557) $ (1,182)
Net cash used for financing activities $ (5,820) $ (228) $ (609)
Cash — end of year $ 1,428 $ 2,421 $ 2,581
Year ended December 31, 2013 compared to the year ended December 31, 2012
Cash provided by operating activities decreased primarily due to realized capital losses of $1.5 billion in 2013, compared to an increase
in income taxes received of $486 in 2012.
Cash used for investing activities in 2013 primarily relates to net proceeds of available-for-sale securities of $4.9 billion and proceeds from
business sold of $815 offset by net payments on derivatives of $2.2 billion. Cash used for investing activities in 2012 primarily relates to
net payments on derivatives of $2.7 billion, purchases of mortgage loans of $968 and net payments for the purchases of partnerships of
$695, partially offset by net proceeds of available-for-sale securities of $1.7 billion and net receipts of fixed maturities, fair value option
of $101.
Cash used for financing activities in 2013 primarily consists of net outflows on investment and universal life-type contracts of $2.1 billion,
decrease in securities loaned or sold under agreements to repurchase of $1.9 billion, repayment of long term debt of $ 1.3 billion and treasury
stock acquired of $600. Cash used for financing activities in 2012 primarily consists of net outflows on investment and universal life-type
contracts of $1.4 billion, repurchase of warrants of $300, as well as share repurchases and dividends paid on common and preferred stock.
These were partially offset by net increases in securities loaned or sold of $1.9 billion.
Year ended December 31, 2012 compared to the year ended December 31, 2011
Cash provided by operating activities increased primarily due to income taxes received of $486 in 2012, compared to income taxes paid
of $179 in 2011.
Cash used for investing activities in 2012 primarily relates to net payments on derivatives of $2.7 billion, purchases of mortgage loans of
$968 and net payments for the purchases of partnerships of $695, partially offset by net proceeds of available-for-sale securities of $1.7
billion and net receipts of fixed maturities, fair value option of $101. Cash used for investing activities in 2011 primarily relates to net
purchases of mortgage loans of $1.3 billion and net purchases of fixed maturities, fair value option of $627, partially offset by net
receipts on derivatives of $720 and net proceeds of available-for-sale securities of $256.
Cash used for financing activities in 2012 primarily consists of net outflows on investment and universal life-type contracts of $1.4
billion, repurchase of warrants of $300, as well as share repurchases and dividends paid on common and preferred stock. These were
partially offset by net increases in securities loaned or sold of $1.9 billion. Cash used for financing activities in 2011 primarily consists
of repayment of long-term debt and dividends paid on common and preferred stock, partially offset by net inflows on investment and
universal life-type contracts.
Equity Markets
For a discussion of the potential impact of the equity markets on capital and liquidity, see the Financial Risk on Statutory Capital and
Liquidity Risk section in this MD&A.