9
CONSOLIDATED STATEMENTS
OF CASH FLOWS
December 31,
(Dollars in millions)
2022
2021
(unaudited)
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income (loss)
$597
$1,379
Adjustments to reconcile net income to net cash provided by
operating activities:
Decrease (increase) in premiums receivable
(435)
(649)
Decrease (increase) in funds held by reinsureds, net
(197)
(151)
Decrease (increase) in reinsurance recoverables
(413)
(125)
Decrease (increase) in income taxes
(181)
68
Decrease (increase) in prepaid reinsurance premiums
(166)
(128)
Increase (decrease) in reserve for losses and loss adjustment
expenses
3,477
2,805
Increase (decrease) in future policy benefit reserve
(7)
(2)
Increase (decrease) in unearned premiums
655
1,146
Increase (decrease) in other net payable to reinsurers
201
186
Increase (decrease) in losses in course of payment
(186)
134
Change in equity adjustments in limited partnerships
(94)
(613)
Distribution of limited partnership income
180
211
Change in other assets and liabilities, net
(291)
(290)
Non-cash compensation expense
45
43
Amortization of bond premium (accrual of bond discount)
55
76
Net (gains) losses on investments
455
(258)
Net cash provided by (used in) operating activities
3,695
3,833
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities matured/called/repaid - available
for sale
2,626
3,893
Proceeds from fixed maturities sold - available for sale
1,403
1,916
Proceeds from fixed maturities matured/called/repaid - held to maturity
39
-
Proceeds from equity securities sold
2,217
990
Distributions from other invested assets
266
257
Cost of fixed maturities acquired - available for sale
(7,344)
(8,825)
Cost of fixed maturities acquired - held to maturity
(153)
-
Cost of equity securities acquired
(1,003)
(1,098)
Cost of other invested assets acquired
(1,547)
(757)
Net change in short-term investments
149
(43)
Net change in unsettled securities transactions
(71)
(203)
Net cash provided by (used in) investing activities
(3,418)
(3,869)
CASH FLOWS FROM FINANCING ACTIVITIES:
Common shares issued (redeemed) during the period for share-based
compensation, net of expense
(17)
(14)
Purchase of treasury shares
(61)
(225)
Dividends paid to shareholders
(255)
(247)
Proceeds from issuance of senior notes
-
968
Cost of debt repurchase
(6)
-
Net FHLB borrowings (repayments)
-
209
Cost of shares withheld on settlements of share-based compensation
awards
(20)
(17)
Net cash provided by (used in) financing activities
(359)
674
EFFECT OF EXCHANGE RATE
CHANGES ON CASH
39
1
Net increase (decrease) in cash
(42)
639
Cash, beginning of period
1,441
802
Cash, end of period
$1,398
$1,441
SUPPLEMENTAL CASH FLOW
INFORMATION:
Income taxes paid (recovered)
$171
$98
98
62
NON-CASH TRANSACTIONS:
Reclassification of specific investments from fixed maturity securities,
available for sale
at fair value to fixed maturity securities, held to maturity at amortized
cost net of credit allowances
$722
$-