Statement of cash flow

For the years ended 31 December

USD millions

2012

2013

Swiss Re closed the sale of the Admin Re^® US business to Jackson National Life Insurance Co in the third quarter 2012. The purchase price included a cash payment of USD 589 million. In addition, New California Holdings, Inc. was acquired for USD 548 million in cash. Also in 2012, Swiss Re Private Equity Partners AG, Swiss Re’s private equity fund-of-fund business, was sold to BlackRock, Inc. for USD 65 million in cash. Swiss Re continues to be invested as a limited partner in the funds.

Cash flows from operating activities

Net income attributable to common shareholders

4 201

4 444

Add net income attributable to non-controlling interests

141

Adjustments to reconcile net income to net cash provided/used by operating activities:

Depreciation, amortisation and other non-cash items

3 888

4 013

Net realised investment gains/losses

–2 688

–3 324

Change in:

Technical provisions, net

–3 397

–4 062

Funds held by ceding companies and other reinsurance balances

–1 103

Reinsurance recoverable on unpaid claims and policy benefits

1 179

Other assets and liabilities, net

235

1 739

Income taxes payable/recoverable

1 138

–162

Income from equity-accounted investees, net of dividends received

–380

–152

Trading positions, net

–543

–263

Securities purchased/sold under agreement to resell/repurchase, net

1 845

–28

Net cash provided/used by operating activities

4 503

2 283

Cash flows from investing activities

Fixed income securities:

Sales and maturities

108 231

84 173

Purchases

–106 064

–79 382

Net purchase/sale/maturities of short-term investments

–5 073

–2 017

Equity securities:

Sales

1 501

2 603

Purchases

–2 242

–5 625

Cash paid/received for acquisitions/disposal and reinsurance transactions, net¹

106

Net purchases/sales/maturities of other investments

–96

Net cash provided/used by investing activities

–3 531

–344

Cash flows from financing activities

Issuance/repayment of long-term debt

740

Issuance/repayment of short-term debt

–2 200

–1 593

Proceeds from the issuance of contingent capital instruments, net of issuance cost

1 084

Purchase/sale of treasury shares

–133

–227

Dividends paid to shareholders

–1 134

–2 760

Net cash provided/used by financing activities

–1 643

–4 540

Total net cash provided/used

–671

–2 601

Effect of foreign currency translation

101

–164

Change in cash and cash equivalents

–570

–2 765

Cash and cash equivalents as of 1 January

11 407

10 837

Cash and cash equivalents as of 31 December

10 837

8 072

Interest paid was USD 887 million and USD 929 million for the years ended 31 December 2012 and 2013, respectively.

Tax paid was USD 123 million and USD 447 million for the years ended 31 December 2012 and 2013, respectively.

The accompanying notes are an integral part of the Group financial statements.