| Year Ended December 31 | 2012 | 2011 | 2010 |
|---|
| (In millions) | | | |
| | | | |
| Operating Activities: | | | |
| Net income | $1,110 | $1,694 | $1,988 |
Adjustments to reconcile net income to net cash provided (used) by
operating activities: | | | |
| Income from discontinued operations | | | 20 |
| Investment (gains) losses | (57) | 52 | (56) |
| Undistributed (earnings) losses | (103) | 74 | (184) |
| Amortization of investments | (50) | (64) | (118) |
| Depreciation, depletion and amortization | 905 | 833 | 816 |
| Impairment of natural gas and oil properties | 680 | | |
| Provision for deferred income taxes | (22) | 268 | 470 |
| Other non-cash items | 55 | 52 | (53) |
| Changes in operating assets and liabilities, net: | | | |
| Receivables | 327 | 1,085 | (335) |
| Deferred acquisition costs | (16) | (1) | 29 |
| Insurance reserves | 430 | (237) | (805) |
| Other assets | 74 | 181 | (83) |
| Other liabilities | (73) | (326) | 132 |
| Trading securities | (406) | 354 | (1,778) |
| Net cash flow operating activities - continuing operations | 2,854 | 3,965 | 43 |
| Net cash flow operating activities - discontinued operations | | | (90) |
| Net cash flow operating activities - total | 2,854 | 3,965 | (47) |
| | | | |
| Investing Activities: | | | |
| Purchases of fixed maturities | (10,299) | (12,168) | (16,715) |
| Proceeds from sales of fixed maturities | 6,123 | 7,591 | 12,514 |
| Proceeds from maturities of fixed maturities | 3,699 | 3,055 | 3,340 |
| Purchases of equity securities | (54) | (72) | (99) |
| Proceeds from sales of equity securities | 86 | 178 | 341 |
| Purchases of limited partnership investments | (372) | (303) | (663) |
| Proceeds from sales of limited partnership investments | 227 | 143 | 166 |
| Purchases of property, plant and equipment | (1,236) | (857) | (917) |
| Deposits for construction of offshore drilling equipment | (169) | (478) | |
| Acquisitions | (987) | (548) | |
| Dispositions | 221 | 222 | 805 |
| Change in short term investments | (192) | 1,461 | 1,892 |
| Other, net | (142) | (127) | (76) |
| Net cash flow investing activities - continuing operations | (3,095) | (1,903) | 588 |
| Net cash flow investing activities - discontinued operations |
|
|
76 |
| Net cash flow investing activities - total | (3,095) | (1,903) | 664 |
| | | | |
| Financing Activities: | | | |
| Dividends paid | (99) | (101) | (105) |
| Dividends paid to noncontrolling interests | (450) | (399) | (492) |
| Acquisition of CNA Surety noncontrolling interests | | (475) | |
| Purchases of treasury shares | (212) | (732) | (405) |
| Issuance of common stock | 13 | 4 | 8 |
| Proceeds from sale of subsidiary stock | 849 | 172 | 344 |
| Principal payments on debt | (2,910) | (2,832) | (659) |
| Issuance of debt | 3,152 | 2,321 | 645 |
| Other, net | (7) | (11) | (24) |
| Net cash flow financing activities - continuing operations | 336 | (2,053) | (688) |
| Net cash flow financing activities - discontinued operations | | | |
| Net cash flow financing activities - total | 336 | (2,053) | (688) |
| Effect of foreign exchange rate on cash - continuing operations | 4 | | 1 |
| Net change in cash | 99 | 9 | (70) |
| Net cash transactions: | | | |
| From continuing operations to discontinued operations | | | (14) |
| To discontinued operations to continuing operations | | | 14 |
| Cash, beginning of year | 129 | 120 | 190 |
| Cash, end of year | $228 | $129 | $120 |
