Information provided in connection with outstanding debt of subsidiaries | 12 Months Ended |
Dec. 31, 2013 |
Information Provided In Connection With Outstanding Debt Of Subsidiaries [Abstract] | ' |
Information provided in connection with outstanding debt of subsidiaries | ' |
Information provided in connection with outstanding debt of subsidiaries |
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The following tables present condensed consolidating financial information at December 31, 2013 and December 31, 2012, and for the years ended December 31, 2013, 2012, and 2011 for ACE Limited (Parent Guarantor) and ACE INA Holdings, Inc. (Subsidiary Issuer). The Subsidiary Issuer is an indirect 100 percent-owned subsidiary of the Parent Guarantor. The Parent Guarantor fully and unconditionally guarantees certain of the debt of the Subsidiary Issuer. |
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During the third quarter of 2013, we determined that the Subsidiary Issuer columns presented in the previously issued condensed consolidating financial information should be presented on the equity method of accounting rather than on a consolidated basis. Accordingly, we have revised the disclosure to correct the Condensed Consolidating Balance Sheet as of December 31, 2012, the Condensed Consolidating Statements of Operations and Comprehensive Income for the years ended December 31, 2012 and 2011, and the Condensed Consolidating Statements of Cash Flows for the years ended December 31, 2012 and 2011. As a result of this revision to the Subsidiary Issuer condensed consolidating financial information, the assets and liabilities, revenues and expenses, and cash flows of the subsidiaries of ACE INA Holdings, Inc. (Subsidiary Issuer) are now presented in the Other ACE Limited Subsidiaries column on a combined basis. In addition, we revised the Consolidating Adjustments and Eliminations column to correctly include all intercompany eliminations. Previously, this column reflected only ACE Limited parent company intercompany eliminations. We also revised the Condensed Consolidating Balance Sheet as of December 31, 2012 and Condensed Consolidating Statement of Cash Flows for the years ended December 31, 2012 and 2011 to correct the presentation of negative cash associated with our affiliated notional cash pooling programs (Pools). In addition, certain items in the Condensed Consolidating Statement of Cash Flows for the years ended December 31, 2012 and 2011 have been reclassified to conform to current period presentation. Also, the operating cash flows have been corrected to properly reflect certain intercompany transactions previously recorded in investing and financing cash flows for the years ended December 31, 2012 and 2011. |
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Total shareholders' equity and net income of the Subsidiary Issuer and Parent Guarantor were not impacted as a result of these revisions. The impact of the revisions was not material to the prior period consolidated financial statements taken as a whole. There was no impact on the consolidated amounts previously reported. The prior period condensed consolidating financial statements will be similarly revised as the information is presented in the first and second quarter Form 10-Q filings for 2014. |
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Condensed Consolidating Balance Sheet at December 31, 2013 |
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(in millions of U.S. dollars) | ACE Limited | | | ACE INA | | | Other ACE | | | Consolidating | | | ACE Limited | |
(Parent | Holdings Inc. | Limited | Adjustments and Eliminations | Consolidated |
Guarantor) | (Subsidiary | Subsidiaries | | |
| Issuer) | | | |
Assets | | | | | | | | | |
Investments | $ | 32 | | | $ | 10 | | | $ | 60,886 | | | $ | — | | | $ | 60,928 | |
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Cash(1) | — | | | 16 | | | 748 | | | (185 | ) | | 579 | |
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Insurance and reinsurance balances receivable | — | | | — | | | 5,835 | | | (809 | ) | | 5,026 | |
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Reinsurance recoverable on losses and loss expenses | — | | | — | | | 20,057 | | | (8,830 | ) | | 11,227 | |
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Reinsurance recoverable on policy benefits | — | | | — | | | 1,215 | | | (997 | ) | | 218 | |
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Value of business acquired | — | | | — | | | 536 | | | — | | | 536 | |
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Goodwill and other intangible assets | — | | | — | | | 5,404 | | | — | | | 5,404 | |
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Investments in subsidiaries | 28,351 | | | 18,105 | | | — | | | (46,456 | ) | | — | |
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Due from subsidiaries and affiliates, net | 844 | | | — | | | — | | | (844 | ) | | — | |
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Other assets | 5 | | | 258 | | | 13,788 | | | (3,459 | ) | | 10,592 | |
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Total assets | $ | 29,232 | | | $ | 18,389 | | | $ | 108,469 | | | $ | (61,580 | ) | | $ | 94,510 | |
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Liabilities | | | | | | | | | |
Unpaid losses and loss expenses | $ | — | | | $ | — | | | $ | 45,714 | | | $ | (8,271 | ) | | $ | 37,443 | |
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Unearned premiums | — | | | — | | | 9,242 | | | (1,703 | ) | | 7,539 | |
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Future policy benefits | — | | | — | | | 5,612 | | | (997 | ) | | 4,615 | |
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Due to (from) subsidiaries and affiliates, net | — | | | 714 | | | 130 | | | (844 | ) | | — | |
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Affiliated notional cash pooling programs(1) | 185 | | | — | | | — | | | (185 | ) | | — | |
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Short-term debt | — | | | 500 | | | 1,401 | | | — | | | 1,901 | |
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Long-term debt | — | | | 3,795 | | | 12 | | | — | | | 3,807 | |
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Trust preferred securities | — | | | 309 | | | — | | | — | | | 309 | |
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Other liabilities | 222 | | | 1,318 | | | 11,655 | | | (3,124 | ) | | 10,071 | |
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Total liabilities | 407 | | | 6,636 | | | 73,766 | | | (15,124 | ) | | 65,685 | |
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Total shareholders’ equity | 28,825 | | | 11,753 | | | 34,703 | | | (46,456 | ) | | 28,825 | |
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Total liabilities and shareholders’ equity | $ | 29,232 | | | $ | 18,389 | | | $ | 108,469 | | | $ | (61,580 | ) | | $ | 94,510 | |
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(1) | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1f) for additional information. At December 31, 2013, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | | | | | | | | | | | | | | | | | | |
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Condensed Consolidating Balance Sheet at December 31, 2012 (Revised) |
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(in millions of U.S. dollars) | ACE Limited | | | ACE INA | | | Other ACE | | | Consolidating | | | ACE Limited | |
(Parent | Holdings Inc. | Limited | Adjustments and Eliminations | Consolidated |
Guarantor) | (Subsidiary | Subsidiaries | | |
| Issuer) | | | |
Assets | | | | | | | | | |
Investments | $ | 31 | | | $ | 14 | | | $ | 60,219 | | | $ | — | | | $ | 60,264 | |
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Cash(1) | 103 | | | 2 | | | 859 | | | (349 | ) | | 615 | |
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Insurance and reinsurance balances receivable | — | | | — | | | 4,742 | | | (595 | ) | | 4,147 | |
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Reinsurance recoverable on losses and loss expenses | — | | | — | | | 20,935 | | | (8,857 | ) | | 12,078 | |
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Reinsurance recoverable on policy benefits | — | | | — | | | 1,229 | | | (988 | ) | | 241 | |
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Value of business acquired | — | | | — | | | 614 | | | — | | | 614 | |
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Goodwill and other intangible assets | — | | | — | | | 4,975 | | | — | | | 4,975 | |
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Investments in subsidiaries | 27,251 | | | 17,016 | | | — | | | (44,267 | ) | | — | |
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Due from subsidiaries and affiliates, net | 204 | | | — | | | — | | | (204 | ) | | — | |
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Other assets | 13 | | | 210 | | | 11,304 | | | (1,916 | ) | | 9,611 | |
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Total assets | $ | 27,602 | | | $ | 17,242 | | | $ | 104,877 | | | $ | (57,176 | ) | | $ | 92,545 | |
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Liabilities | | | | | | | | | |
Unpaid losses and loss expenses | $ | — | | | $ | — | | | $ | 46,109 | | | $ | (8,163 | ) | | $ | 37,946 | |
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Unearned premiums | — | | | — | | | 8,248 | | | (1,384 | ) | | 6,864 | |
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Future policy benefits | — | | | — | | | 5,458 | | | (988 | ) | | 4,470 | |
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Due to subsidiaries and affiliates, net | — | | | 68 | | | 136 | | | (204 | ) | | — | |
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Affiliated notional cash pooling programs(1) | — | | | 349 | | | — | | | (349 | ) | | — | |
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Short-term debt | — | | | — | | | 1,401 | | | — | | | 1,401 | |
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Long-term debt | — | | | 3,347 | | | 13 | | | — | | | 3,360 | |
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Trust preferred securities | — | | | 309 | | | — | | | — | | | 309 | |
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Other liabilities | 71 | | | 1,195 | | | 11,219 | | | (1,821 | ) | | 10,664 | |
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Total liabilities | 71 | | | 5,268 | | | 72,584 | | | (12,909 | ) | | 65,014 | |
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Total shareholders’ equity | 27,531 | | | 11,974 | | | 32,293 | | | (44,267 | ) | | 27,531 | |
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Total liabilities and shareholders’ equity | $ | 27,602 | | | $ | 17,242 | | | $ | 104,877 | | | $ | (57,176 | ) | | $ | 92,545 | |
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(1) | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1f) for additional information. At December 31, 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | | | | | | | | | | | | | | | | | | |
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Condensed Consolidating Balance Sheet at December 31, 2012 (As previously reported) |
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(in millions of U.S. dollars) | ACE Limited | | | ACE INA | | | Other ACE | | | Consolidating | | | ACE Limited | |
(Parent | Holdings Inc. | Limited | Adjustments(2) | Consolidated |
Guarantor) | (Subsidiary | Subsidiaries and | | |
| Issuer) | Eliminations(1) | | |
Assets | | | | | | | | | |
Investments | $ | 31 | | | $ | 31,074 | | | $ | 29,159 | | | $ | — | | | $ | 60,264 | |
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Cash(3) | 103 | | | 515 | | | (3 | ) | | — | | | 615 | |
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Insurance and reinsurance balances receivable | — | | | 3,654 | | | 493 | | | — | | | 4,147 | |
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Reinsurance recoverable on losses and loss expenses | — | | | 17,232 | | | (5,154 | ) | | — | | | 12,078 | |
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Reinsurance recoverable on policy benefits | — | | | 1,187 | | | (946 | ) | | — | | | 241 | |
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Value of business acquired | — | | | 610 | | | 4 | | | — | | | 614 | |
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Goodwill and other intangible assets | — | | | 4,419 | | | 556 | | | — | | | 4,975 | |
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Investments in subsidiaries | 27,251 | | | — | | | — | | | (27,251 | ) | | — | |
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Due from subsidiaries and affiliates, net | 204 | | | — | | | — | | | (204 | ) | | — | |
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Other assets | 13 | | | 7,563 | | | 2,035 | | | — | | | 9,611 | |
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Total assets | $ | 27,602 | | | $ | 66,254 | | | $ | 26,144 | | | $ | (27,455 | ) | | $ | 92,545 | |
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Liabilities | | | | | | | | | |
Unpaid losses and loss expenses | $ | — | | | $ | 31,356 | | | $ | 6,590 | | | $ | — | | | $ | 37,946 | |
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Unearned premiums | — | | | 5,872 | | | 992 | | | — | | | 6,864 | |
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Future policy benefits | — | | | 3,876 | | | 594 | | | — | | | 4,470 | |
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Due to (from) subsidiaries and affiliates, net | — | | | 384 | | | (180 | ) | | (204 | ) | | — | |
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Short-term debt | — | | | 851 | | | 550 | | | — | | | 1,401 | |
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Long-term debt | — | | | 3,360 | | | — | | | — | | | 3,360 | |
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Trust preferred securities | — | | | 309 | | | — | | | — | | | 309 | |
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Other liabilities | 71 | | | 8,272 | | | 2,321 | | | — | | | 10,664 | |
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Total liabilities | 71 | | | 54,280 | | | 10,867 | | | (204 | ) | | 65,014 | |
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Total shareholders’ equity | 27,531 | | | 11,974 | | | 15,277 | | | (27,251 | ) | | 27,531 | |
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Total liabilities and shareholders’ equity | $ | 27,602 | | | $ | 66,254 | | | $ | 26,144 | | | $ | (27,455 | ) | | $ | 92,545 | |
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-1 | Includes all other subsidiaries of ACE Limited and intercompany eliminations. | | | | | | | | | | | | | | | | | | |
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-2 | Includes ACE Limited parent company eliminations. | | | | | | | | | | | | | | | | | | |
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-3 | ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Refer to Note 1f) for additional information. At December 31, 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | | | | | | | | | | | | | | | | | | |
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Condensed Consolidating Statements of Operations and Comprehensive Income |
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For the Year Ended December 31, 2013 | ACE Limited | | | ACE INA | | | Other ACE | | | Consolidating | | | ACE Limited | |
(Parent | Holdings Inc. | Limited | Adjustments and Eliminations | Consolidated |
Guarantor) | (Subsidiary | Subsidiaries | | |
(in millions of U.S. dollars) | | | Issuer) | | | | | | |
Net premiums written | $ | — | | | $ | — | | | $ | 17,025 | | | $ | — | | | $ | 17,025 | |
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Net premiums earned | — | | | — | | | 16,613 | | | — | | | 16,613 | |
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Net investment income | 2 | | | 3 | | | 2,139 | | | — | | | 2,144 | |
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Equity in earnings of subsidiaries | 3,580 | | | 942 | | | — | | | (4,522 | ) | | — | |
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Net realized gains (losses) including OTTI | — | | | (2 | ) | | 506 | | | — | | | 504 | |
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Losses and loss expenses | — | | | — | | | 9,348 | | | — | | | 9,348 | |
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Policy benefits | — | | | — | | | 515 | | | — | | | 515 | |
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Policy acquisition costs and administrative expenses | 60 | | | 19 | | | 4,791 | | | — | | | 4,870 | |
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Interest (income) expense | (32 | ) | | 270 | | | 37 | | | — | | | 275 | |
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Other (income) expense | (221 | ) | | 27 | | | 209 | | | — | | | 15 | |
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Income tax expense (benefit) | 17 | | | (108 | ) | | 571 | | | — | | | 480 | |
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Net income | $ | 3,758 | | | $ | 735 | | | $ | 3,787 | | | $ | (4,522 | ) | | $ | 3,758 | |
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Comprehensive income | $ | 2,023 | | | $ | (230 | ) | | $ | 2,051 | | | $ | (1,821 | ) | | $ | 2,023 | |
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Condensed Consolidating Statements of Operations and Comprehensive Income (Revised) |
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For the Year Ended December 31, 2012 | ACE Limited | | | ACE INA | | | Other ACE | | | Consolidating | | | ACE Limited | |
(Parent | Holdings Inc. | Limited | Adjustments and Eliminations | Consolidated |
Guarantor) | (Subsidiary | Subsidiaries | | |
(in millions of U.S. dollars) | | | Issuer) | | | | | | |
Net premiums written | $ | — | | | $ | — | | | $ | 16,075 | | | $ | — | | | $ | 16,075 | |
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Net premiums earned | — | | | — | | | 15,677 | | | — | | | 15,677 | |
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Net investment income | 1 | | | 3 | | | 2,177 | | | — | | | 2,181 | |
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Equity in earnings of subsidiaries | 2,590 | | | 911 | | | — | | | (3,501 | ) | | — | |
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Net realized gains (losses) including OTTI | 17 | | | — | | | 61 | | | — | | | 78 | |
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Losses and loss expenses | — | | | — | | | 9,653 | | | — | | | 9,653 | |
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Policy benefits | — | | | — | | | 521 | | | — | | | 521 | |
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Policy acquisition costs and administrative expenses | 62 | | | 28 | | | 4,452 | | | — | | | 4,542 | |
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Interest (income) expense | (33 | ) | | 235 | | | 48 | | | — | | | 250 | |
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Other (income) expense | (137 | ) | | 9 | | | 122 | | | — | | | (6 | ) |
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Income tax expense (benefit) | 10 | | | (110 | ) | | 370 | | | — | | | 270 | |
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Net income | $ | 2,706 | | | $ | 752 | | | $ | 2,749 | | | $ | (3,501 | ) | | $ | 2,706 | |
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Comprehensive income | $ | 3,682 | | | $ | 1,209 | | | $ | 3,724 | | | $ | (4,933 | ) | | $ | 3,682 | |
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Condensed Consolidating Statements of Operations and Comprehensive Income (As previously reported) |
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For the Year Ended December 31, 2012 | ACE Limited | | | ACE INA | | | Other ACE | | | Consolidating | | | ACE Limited | |
(Parent | Holdings Inc. | Limited | Adjustments (2) | Consolidated |
Guarantor) | (Subsidiary | Subsidiaries and | | |
(in millions of U.S. dollars) | | | Issuer) | | Eliminations(1) | | | | |
Net premiums written | $ | — | | | $ | 9,466 | | | $ | 6,609 | | | $ | — | | | $ | 16,075 | |
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Net premiums earned | — | | | 9,194 | | | 6,483 | | | — | | | 15,677 | |
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Net investment income | 1 | | | 1,048 | | | 1,132 | | | — | | | 2,181 | |
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Equity in earnings of subsidiaries | 2,590 | | | — | | | — | | | (2,590 | ) | | — | |
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Net realized gains (losses) including OTTI | 17 | | | 121 | | | (60 | ) | | — | | | 78 | |
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Losses and loss expenses | — | | | 6,211 | | | 3,442 | | | — | | | 9,653 | |
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Policy benefits | — | | | 309 | | | 212 | | | — | | | 521 | |
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Policy acquisition costs and administrative expenses | 62 | | | 2,564 | | | 1,916 | | | — | | | 4,542 | |
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Interest (income) expense | (33 | ) | | 257 | | | 26 | | | — | | | 250 | |
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Other (income) expense | (137 | ) | | 77 | | | 54 | | | — | | | (6 | ) |
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Income tax expense | 10 | | | 193 | | | 67 | | | — | | | 270 | |
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Net income | $ | 2,706 | | | $ | 752 | | | $ | 1,838 | | | $ | (2,590 | ) | | $ | 2,706 | |
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Comprehensive income | $ | 3,682 | | | $ | 1,209 | | | $ | 1,381 | | | $ | (2,590 | ) | | $ | 3,682 | |
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-1 | Includes all other subsidiaries of ACE Limited and intercompany eliminations. | | | | | | | | | | | | | | | | | | |
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-2 | Includes ACE Limited parent company eliminations. | | | | | | | | | | | | | | | | | | |
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Condensed Consolidating Statements of Operations and Comprehensive Income (Revised) |
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For the Year Ended December 31, 2011 | ACE Limited | | | ACE INA | | | Other ACE | | | Consolidating | | | ACE Limited | |
(Parent | Holdings Inc. | Limited | Adjustments and Eliminations | Consolidated |
Guarantor) | (Subsidiary | Subsidiaries | | |
(in millions of U.S. dollars) | | | Issuer) | | | | | | |
Net premiums written | $ | — | | | $ | — | | | $ | 15,372 | | | $ | — | | | $ | 15,372 | |
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Net premiums earned | — | | | — | | | 15,387 | | | — | | | 15,387 | |
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Net investment income | 2 | | | 2 | | | 2,238 | | | — | | | 2,242 | |
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Equity in earnings of subsidiaries | 1,459 | | | 989 | | | — | | | (2,448 | ) | | — | |
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Net realized gains (losses) including OTTI | (4 | ) | | — | | | (791 | ) | | — | | | (795 | ) |
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Losses and loss expenses | — | | | — | | | 9,520 | | | — | | | 9,520 | |
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Policy benefits | — | | | — | | | 401 | | | — | | | 401 | |
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Policy acquisition costs and administrative expenses | 69 | | | 37 | | | 4,434 | | | — | | | 4,540 | |
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Interest (income) expense | (37 | ) | | 266 | | | 21 | | | — | | | 250 | |
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Other (income) expense | (125 | ) | | 21 | | | 185 | | | — | | | 81 | |
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Income tax expense (benefit) | 10 | | | (103 | ) | | 595 | | | — | | | 502 | |
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Net income | $ | 1,540 | | | $ | 770 | | | $ | 1,678 | | | $ | (2,448 | ) | | $ | 1,540 | |
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Comprehensive income | $ | 1,857 | | | $ | 1,077 | | | $ | 1,994 | | | $ | (3,071 | ) | | $ | 1,857 | |
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Condensed Consolidating Statements of Operations and Comprehensive Income (As previously reported) |
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For the Year Ended December 31, 2011 | ACE Limited | | | ACE INA | | | Other ACE | | | Consolidating | | | ACE Limited | |
(Parent | Holdings Inc. | Limited | Adjustments (2) | Consolidated |
Guarantor) | (Subsidiary | Subsidiaries and | | |
(in millions of U.S. dollars) | | | Issuer) | | Eliminations(1) | | | | |
Net premiums written | $ | — | | | $ | 9,081 | | | $ | 6,291 | | | $ | — | | | $ | 15,372 | |
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Net premiums earned | — | | | 9,082 | | | 6,305 | | | — | | | 15,387 | |
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Net investment income | 2 | | | 1,096 | | | 1,144 | | | — | | | 2,242 | |
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Equity in earnings of subsidiaries | 1,459 | | | — | | | — | | | (1,459 | ) | | — | |
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Net realized gains (losses) including OTTI | (4 | ) | | 62 | | | (853 | ) | | — | | | (795 | ) |
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Losses and loss expenses | — | | | 5,889 | | | 3,631 | | | — | | | 9,520 | |
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Policy benefits | — | | | 192 | | | 209 | | | — | | | 401 | |
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Policy acquisition costs and administrative expenses | 69 | | | 2,561 | | | 1,910 | | | — | | | 4,540 | |
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Interest (income) expense | (37 | ) | | 267 | | | 20 | | | — | | | 250 | |
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Other (income) expense | (125 | ) | | 143 | | | 63 | | | — | | | 81 | |
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Income tax expense | 10 | | | 418 | | | 74 | | | — | | | 502 | |
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Net income | $ | 1,540 | | | $ | 770 | | | $ | 689 | | | $ | (1,459 | ) | | $ | 1,540 | |
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Comprehensive income | $ | 1,857 | | | $ | 1,077 | | | $ | 382 | | | $ | (1,459 | ) | | $ | 1,857 | |
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(1) | Includes all other subsidiaries of ACE Limited and intercompany eliminations. | | | | | | | | | | | | | | | | | | |
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(2) | Includes ACE Limited parent company eliminations. | | | | | | | | | | | | | | | | | | |
Condensed Consolidating Statement of Cash Flows |
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For the Year Ended December 31, 2013 | ACE Limited | | | ACE INA | | | Other ACE | | | Consolidating | | | ACE Limited | |
(Parent | Holdings Inc. | Limited | Adjustments and Eliminations | Consolidated |
Guarantor) | (Subsidiary | Subsidiaries | | |
(in millions of U.S. dollars) | | | Issuer) | | | | | | |
Net cash flows from (used for) operating activities | $ | 970 | | | $ | (107 | ) | | $ | 3,984 | | | $ | (825 | ) | | $ | 4,022 | |
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Cash flows from investing activities | | | | | | | | | |
Purchases of fixed maturities available for sale | — | | | — | | | (21,504 | ) | | 106 | | | (21,398 | ) |
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Purchases of fixed maturities held to maturity | — | | | — | | | (447 | ) | | — | | | (447 | ) |
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Purchases of equity securities | — | | | — | | | (264 | ) | | — | | | (264 | ) |
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Sales of fixed maturities available for sale | — | | | — | | | 10,519 | | | (106 | ) | | 10,413 | |
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Sales of equity securities | — | | | — | | | 142 | | | — | | | 142 | |
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Maturities and redemptions of fixed maturities available for sale | — | | | — | | | 6,941 | | | — | | | 6,941 | |
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Maturities and redemptions of fixed maturities held to maturity | — | | | — | | | 1,488 | | | — | | | 1,488 | |
|
Net change in short-term investments | (1 | ) | | 4 | | | 521 | | | — | | | 524 | |
|
Net derivative instruments settlements | — | | | (1 | ) | | (470 | ) | | — | | | (471 | ) |
|
Acquisition of subsidiaries (net of cash acquired of $38) | — | | | — | | | (977 | ) | | — | | | (977 | ) |
|
Capital contribution | (133 | ) | | (1,097 | ) | | — | | | 1,230 | | | — | |
|
Other | — | | | (4 | ) | | (389 | ) | | — | | | (393 | ) |
|
Net cash flows used for investing activities | (134 | ) | | (1,098 | ) | | (4,440 | ) | | 1,230 | | | (4,442 | ) |
|
Cash flows from financing activities | | | | | | | | | |
Dividends paid on Common Shares | (517 | ) | | — | | | — | | | — | | | (517 | ) |
|
Common Shares repurchased | — | | | — | | | (287 | ) | | — | | | (287 | ) |
|
Net proceeds from issuance of long-term debt | — | | | 947 | | | — | | | — | | | 947 | |
|
Proceeds from share-based compensation plans, including windfall tax benefits | 14 | | | — | | | 121 | | | — | | | 135 | |
|
Advances (to) from affiliates | (621 | ) | | 621 | | | — | | | — | | | — | |
|
Dividends to parent company | — | | | — | | | (825 | ) | | 825 | | | — | |
|
Capital contribution | — | | | — | | | 1,230 | | | (1,230 | ) | | — | |
|
Net proceeds from (payments to) affiliated notional cash pooling programs(1) | 185 | | | (349 | ) | | — | | | 164 | | | — | |
|
Other | — | | | — | | | 113 | | | — | | | 113 | |
|
Net cash flows (used for) from financing activities | (939 | ) | | 1,219 | | | 352 | | | (241 | ) | | 391 | |
|
Effect of foreign currency rate changes on cash and cash equivalents | — | | | — | | | (7 | ) | | — | | | (7 | ) |
|
Net (decrease) increase in cash | (103 | ) | | 14 | | | (111 | ) | | 164 | | | (36 | ) |
|
Cash – beginning of year(1) | 103 | | | 2 | | | 859 | | | (349 | ) | | 615 | |
|
Cash – end of year(1) | $ | — | | | $ | 16 | | | $ | 748 | | | $ | (185 | ) | | $ | 579 | |
|
| | | | | | | | | | | | | | | | | | | |
(1) | ACE maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2013 and December 31, 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | | | | | | | | | | | | | | | | | | |
Condensed Consolidating Statement of Cash Flows (Revised) |
|
|
| | | | | | | | | | | | | | | | | | | |
For the Year Ended December 31, 2012 | ACE Limited | | | ACE INA | | | Other ACE | | | Consolidating | | | ACE Limited | |
(Parent | Holdings Inc. | Limited | Adjustments and Eliminations | Consolidated |
Guarantor) | (Subsidiary | Subsidiaries | | |
(in millions of U.S. dollars) | | | Issuer) | | | | | | |
Net cash flows from operating activities | $ | 573 | | | $ | 296 | | | $ | 3,876 | | | $ | (750 | ) | | $ | 3,995 | |
|
Cash flows from investing activities | | | | | | | | | |
Purchases of fixed maturities available for sale | — | | | — | | | (24,076 | ) | | 115 | | | (23,961 | ) |
|
Purchases of fixed maturities held to maturity | — | | | — | | | (388 | ) | | — | | | (388 | ) |
|
Purchases of equity securities | — | | | — | | | (135 | ) | | — | | | (135 | ) |
|
Sales of fixed maturities available for sale | — | | | — | | | 14,884 | | | (115 | ) | | 14,769 | |
|
Sales of equity securities | — | | | — | | | 119 | | | — | | | 119 | |
|
Maturities and redemptions of fixed maturities available for sale | — | | | — | | | 5,523 | | | — | | | 5,523 | |
|
Maturities and redemptions of fixed maturities held to maturity | — | | | — | | | 1,451 | | | — | | | 1,451 | |
|
Net change in short-term investments | — | | | (4 | ) | | 121 | | | — | | | 117 | |
|
Net derivative instruments settlements | (1 | ) | | — | | | (280 | ) | | — | | | (281 | ) |
|
Capital contribution | — | | | (352 | ) | | (90 | ) | | 442 | | | — | |
|
Acquisition of subsidiaries (net of cash acquired of $8) | — | | | — | | | (98 | ) | | — | | | (98 | ) |
|
Other | — | | | (33 | ) | | (522 | ) | | — | | | (555 | ) |
|
Net cash flows used for investing activities | (1 | ) | | (389 | ) | | (3,491 | ) | | 442 | | | (3,439 | ) |
|
Cash flows from financing activities | | | | | | | | | |
Dividends paid on Common Shares | (815 | ) | | — | | | — | | | — | | | (815 | ) |
|
Common Shares repurchased | — | | | — | | | (11 | ) | | — | | | (11 | ) |
|
Net proceeds from issuance of short-term debt | — | | | — | | | 150 | | | — | | | 150 | |
|
Proceeds from share-based compensation plans, including windfall tax benefits | 34 | | | — | | | 92 | | | — | | | 126 | |
|
Advances from (to) affiliates | 206 | | | (201 | ) | | (5 | ) | | — | | | — | |
|
Dividends to parent company | — | | | — | | | (750 | ) | | 750 | | | — | |
|
Capital contribution | — | | | 90 | | | 352 | | | (442 | ) | | — | |
|
Net proceeds from affiliated notional cash pooling programs(1) | — | | | 201 | | | — | | | (201 | ) | | — | |
|
Net cash flows (used for) from financing activities | (575 | ) | | 90 | | | (172 | ) | | 107 | | | (550 | ) |
|
Effect of foreign currency rate changes on cash and cash equivalents | — | | | — | | | (5 | ) | | — | | | (5 | ) |
|
Net increase (decrease) in cash | (3 | ) | | (3 | ) | | 208 | | | (201 | ) | | 1 | |
|
Cash – beginning of year(1) | 106 | | | 5 | | | 651 | | | (148 | ) | | 614 | |
|
Cash – end of year(1) | $ | 103 | | | $ | 2 | | | $ | 859 | | | $ | (349 | ) | | $ | 615 | |
|
| | | | | | | | | | | | | | | | | | | |
-1 | ACE maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2012 and December 31, 2011, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | | | | | | | | | | | | | | | | | | |
Condensed Consolidating Statement of Cash Flows (As previously reported) |
|
|
| | | | | | | | | | | | | | | | | | | |
For the Year Ended December 31, 2012 | ACE Limited | | | ACE INA | | | Other ACE | | | Consolidating | | | ACE Limited | |
(Parent | Holdings Inc. | Limited | Adjustments (2) | Consolidated |
Guarantor) | (Subsidiary | Subsidiaries and | | |
(in millions of U.S. dollars) | | | Issuer) | | Eliminations(1) | | | | |
Net cash flows from operating activities | $ | 781 | | | $ | 1,744 | | | $ | 1,920 | | | $ | (450 | ) | | $ | 3,995 | |
|
Cash flows from investing activities | | | | | | | | | |
Purchases of fixed maturities available for sale | — | | | (11,843 | ) | | (12,001 | ) | | — | | | (23,844 | ) |
|
Purchases of fixed maturities held to maturity | — | | | (384 | ) | | (4 | ) | | — | | | (388 | ) |
|
Purchases of equity securities | — | | | (70 | ) | | (65 | ) | | — | | | (135 | ) |
|
Sales of fixed maturities available for sale | — | | | 7,347 | | | 7,422 | | | — | | | 14,769 | |
|
Sales of equity securities | — | | | 59 | | | 60 | | | — | | | 119 | |
|
Maturities and redemptions of fixed maturities available for sale | — | | | 2,759 | | | 2,764 | | | — | | | 5,523 | |
|
Maturities and redemptions of fixed maturities held to maturity | — | | | 1,045 | | | 406 | | | — | | | 1,451 | |
|
Net derivative instruments settlements | (1 | ) | | (6 | ) | | (274 | ) | | — | | | (281 | ) |
|
Capital contribution | — | | | — | | | (90 | ) | | 90 | | | — | |
|
Advances from (to) affiliates | (2 | ) | | — | | | — | | | 2 | | | — | |
|
Acquisition of subsidiaries (net of cash acquired of $8) | — | | | (111 | ) | | 13 | | | — | | | (98 | ) |
|
Other | — | | | (395 | ) | | (160 | ) | | — | | | (555 | ) |
|
Net cash flows used for investing activities | (3 | ) | | (1,599 | ) | | (1,929 | ) | | 92 | | | (3,439 | ) |
|
Cash flows from financing activities | | | | | | | | | |
Dividends paid on Common Shares | (815 | ) | | — | | | — | | | — | | | (815 | ) |
|
Common Shares repurchased | — | | | — | | | (11 | ) | | — | | | (11 | ) |
|
Net proceeds from issuance of short-term debt | — | | | 1 | | | 149 | | | — | | | 150 | |
|
Proceeds from share-based compensation plans, including windfall tax benefits | 34 | | | 13 | | | 79 | | | — | | | 126 | |
|
Advances (to) from affiliates | — | | | (105 | ) | | 107 | | | (2 | ) | | — | |
|
Dividends to parent company | — | | | — | | | (450 | ) | | 450 | | | — | |
|
Capital contribution | — | | | 90 | | | — | | | (90 | ) | | — | |
|
Net cash flows used for financing activities | (781 | ) | | (1 | ) | | (126 | ) | | 358 | | | (550 | ) |
|
Effect of foreign currency rate changes on cash and cash equivalents | — | | | (11 | ) | | 6 | | | — | | | (5 | ) |
|
Net increase (decrease) in cash | (3 | ) | | 133 | | | (129 | ) | | — | | | 1 | |
|
Cash – beginning of year | 106 | | | 382 | | | 126 | | | — | | | 614 | |
|
Cash – end of year(3) | $ | 103 | | | $ | 515 | | | $ | (3 | ) | | $ | — | | | $ | 615 | |
|
| | | | | | | | | | | | | | | | | | | |
(1) | Includes all other subsidiaries of ACE Limited and intercompany eliminations. | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
(2) | Includes ACE Limited parent company eliminations and certain consolidating adjustments. | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
(3) | ACE maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2012, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | | | | | | | | | | | | | | | | | | |
Condensed Consolidating Statement of Cash Flows (Revised) |
|
|
| | | | | | | | | | | | | | | | | | | |
For the Year Ended December 31, 2011 | ACE Limited | | | ACE INA | | | Other ACE | | | Consolidating | | | ACE Limited | |
(Parent | Holdings Inc. | Limited | Adjustments and Eliminations | Consolidated |
Guarantor) | (Subsidiary | Subsidiaries | | |
(in millions of U.S. dollars) | | | Issuer) | | | | | | |
Net cash flows from operating activities | $ | 831 | | | $ | 1,221 | | | $ | 3,455 | | | $ | (2,037 | ) | | $ | 3,470 | |
|
Cash flows from investing activities | | | | | | | | | |
Purchases of fixed maturities available for sale | — | | | — | | | (24,601 | ) | | 323 | | | (24,278 | ) |
|
Purchases of fixed maturities held to maturity | — | | | — | | | (340 | ) | | — | | | (340 | ) |
|
Purchases of equity securities | — | | | — | | | (309 | ) | | — | | | (309 | ) |
|
Sales of fixed maturities available for sale | — | | | — | | | 18,294 | | | (323 | ) | | 17,971 | |
|
Sales of equity securities | — | | | — | | | 376 | | | — | | | 376 | |
|
Maturities and redemptions of fixed maturities available for sale | — | | | — | | | 3,720 | | | — | | | 3,720 | |
|
Maturities and redemptions of fixed maturities held to maturity | — | | | — | | | 1,279 | | | — | | | 1,279 | |
|
Net change in short-term investments | 9 | | | — | | | (309 | ) | | — | | | (300 | ) |
|
Net derivative instruments settlements | (3 | ) | | — | | | (64 | ) | | — | | | (67 | ) |
|
Capital contribution | (385 | ) | | (581 | ) | | — | | | 966 | | | — | |
|
Acquisition of subsidiaries (net of cash acquired of $91) | — | | | (76 | ) | | (530 | ) | | — | | | (606 | ) |
|
Other | — | | | (19 | ) | | (463 | ) | | — | | | (482 | ) |
|
Net cash flows used for investing activities | (379 | ) | | (676 | ) | | (2,947 | ) | | 966 | | | (3,036 | ) |
|
Cash flows from financing activities | | | | | | | | | |
Dividends paid on Common Shares | (459 | ) | | — | | | — | | | — | | | (459 | ) |
|
Common Shares repurchased | — | | | — | | | (195 | ) | | — | | | (195 | ) |
|
Net proceeds from issuance (repayments) of short-term debt | (300 | ) | | — | | | 250 | | | — | | | (50 | ) |
|
Proceeds from share-based compensation plans, including windfall tax benefits | 133 | | | — | | | 6 | | | — | | | 139 | |
|
Advances from (to) affiliates | (28 | ) | | (721 | ) | | 749 | | | — | | | — | |
|
Dividends to parent company | — | | | — | | | (2,037 | ) | | 2,037 | | | — | |
|
Capital contribution | — | | | — | | | 966 | | | (966 | ) | | — | |
|
Net proceeds from affiliated notional cash pooling programs(1) | — | | | 148 | | | — | | | (148 | ) | | — | |
|
Net cash flows used for financing activities | (654 | ) | | (573 | ) | | (261 | ) | | 923 | | | (565 | ) |
|
Effect of foreign currency rate changes on cash and cash equivalents | — | | | — | | | (27 | ) | | — | | | (27 | ) |
|
Net increase (decrease) in cash | (202 | ) | | (28 | ) | | 220 | | | (148 | ) | | (158 | ) |
|
Cash – beginning of year(1) | 308 | | | 33 | | | 431 | | | — | | | 772 | |
|
Cash – end of year(1) | $ | 106 | | | $ | 5 | | | $ | 651 | | | $ | (148 | ) | | $ | 614 | |
|
| | | | | | | | | | | | | | | | | | | |
-1 | ACE maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2011 and December 31, 2010, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | | | | | | | | | | | | | | | | | | |
|
Condensed Consolidating Statement of Cash Flows (As previously reported) |
|
|
| | | | | | | | | | | | | | | | | | | |
For the Year Ended December 31, 2011 | ACE Limited | | | ACE INA | | | Other ACE | | | Consolidating | | | ACE Limited | |
(Parent | Holdings Inc. | Limited | Adjustments (2) | Consolidated |
Guarantor) | (Subsidiary | Subsidiaries and | | |
(in millions of U.S. dollars) | | | Issuer) | | Eliminations(1) | | | | |
Net cash flows from operating activities | $ | 762 | | | $ | 1,053 | | | $ | 2,395 | | | $ | (740 | ) | | $ | 3,470 | |
|
Cash flows from investing activities | | | | | | | | | |
Purchases of fixed maturities available for sale | — | | | (12,203 | ) | | (12,375 | ) | | — | | | (24,578 | ) |
|
Purchases of fixed maturities held to maturity | — | | | (338 | ) | | (2 | ) | | — | | | (340 | ) |
|
Purchases of equity securities | — | | | (157 | ) | | (152 | ) | | — | | | (309 | ) |
|
Sales of fixed maturities available for sale | 9 | | | 9,718 | | | 8,244 | | | — | | | 17,971 | |
|
Sales of equity securities | — | | | 354 | | | 22 | | | — | | | 376 | |
|
Maturities and redemptions of fixed maturities available for sale | — | | | 1,784 | | | 1,936 | | | — | | | 3,720 | |
|
Maturities and redemptions of fixed maturities held to maturity | — | | | 933 | | | 346 | | | — | | | 1,279 | |
|
Net derivative instruments settlements | (3 | ) | | (24 | ) | | (40 | ) | | — | | | (67 | ) |
|
Capital contribution | (385 | ) | | — | | | — | | | 385 | | | — | |
|
Advances from (to) affiliates | 41 | | | — | | | — | | | (41 | ) | | — | |
|
Acquisition of subsidiaries (net of cash acquired of $91) | — | | | (569 | ) | | (37 | ) | | — | | | (606 | ) |
|
Other | — | | | (420 | ) | | (62 | ) | | — | | | (482 | ) |
|
Net cash flows used for investing activities | (338 | ) | | (922 | ) | | (2,120 | ) | | 344 | | | (3,036 | ) |
|
Cash flows from financing activities | | | | | | | | | |
Dividends paid on Common Shares | (459 | ) | | — | | | — | | | — | | | (459 | ) |
|
Common Shares repurchased | — | | | — | | | (195 | ) | | — | | | (195 | ) |
|
Net proceeds from (repayments) issuance of short-term debt | (300 | ) | | (150 | ) | | 400 | | | — | | | (50 | ) |
|
Net proceeds from share-based compensation plans, including windfall tax benefits | 133 | | | 3 | | | 3 | | | — | | | 139 | |
|
Advances from (to) affiliates | — | | | (149 | ) | | 108 | | | 41 | | | — | |
|
Dividends to parent company | — | | | — | | | (740 | ) | | 740 | | | — | |
|
Capital contribution | — | | | — | | | 385 | | | (385 | ) | | — | |
|
Net cash flows used for financing activities | (626 | ) | | (296 | ) | | (39 | ) | | 396 | | | (565 | ) |
|
Effect of foreign currency rate changes on cash and cash equivalents | — | | | (26 | ) | | (1 | ) | | — | | | (27 | ) |
|
Net increase (decrease) in cash | (202 | ) | | (191 | ) | | 235 | | | — | | | (158 | ) |
|
Cash – beginning of year(3) | 308 | | | 573 | | | (109 | ) | | — | | | 772 | |
|
Cash – end of year | $ | 106 | | | $ | 382 | | | $ | 126 | | | $ | — | | | $ | 614 | |
|
| | | | | | | | | | | | | | | | | | | |
-1 | Includes all other subsidiaries of ACE Limited and intercompany eliminations. | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
-2 | Includes ACE Limited parent company eliminations and certain consolidating adjustments. | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
-3 | ACE maintains two notional multi-currency cash pools (Pools) with a third-party bank. Refer to Note 1 f) for additional information. At December 31, 2010, the cash balance of one or more entities was negative; however, the overall Pool balances were positive. | | | | | | | | | | | | | | | | | | |