Statement of cash flows

For the years ended 31 December

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USD millions

2017

2018

Cash flows from operating activities

 

 

Net income attributable to common shareholders

331

421

Add net income/loss attributable to non-controlling interests

–5

19

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

 

 

Depreciation, amortisation and other non-cash items

542

331

Net realised investment gains/losses

–4 048

2 530

Income from equity-accounted investees, net of dividends received

70

4

Change in:

 

 

Technical provisions and other reinsurance assets and liabilities, net

5 739

–1 796

Funds held by ceding companies and under reinsurance treaties

–276

212

Reinsurance recoverable on unpaid claims and policy benefits

61

656

Other assets and liabilities, net

–386

–421

Income taxes payable/recoverable

–606

–682

Trading positions, net

–119

298

Net cash provided/used by operating activities

1 303

1 572

 

 

 

Cash flows from investing activities

 

 

Fixed income securities:

 

 

Sales

43 904

44 679

Maturities

5 537

5 159

Purchases

–52 696

–49 816

Net purchases/sales/maturities of short-term investments

6 459

–761

Equity securities:

 

 

Sales

7 421

1 908

Purchases

–7 113

–1 578

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

–1 042

3 464

Cash paid/received for acquisitions/disposals and reinsurance transactions, net

36

–11

Net purchases/sales/maturities of other investments

–2 103

–869

Net purchases/sales/maturities of investments held for unit-linked and with-profit business

2 356

1 288

Net cash provided/used by investing activities

2 759

3 463

 

 

 

Cash flows from financing activities

 

 

Policyholder account balances, unit-linked and with-profit business:

 

 

Deposits

565

557

Withdrawals

–2 821

–2 939

Issuance/repayment of long-term debt

–270

346

Issuance/repayment of short-term debt

–1 221

–428

Issuance/repayment of contingent capital instrument

–352

–750

Purchase/sale of treasury shares

–1 142

–1 446

Dividends paid to shareholders

–1 559

–1 592

Dividends paid to non-controlling interests

 

–152

Transactions with non-controlling interests

 

811

Net cash provided/used by financing activities

–6 800

–5 593

 

 

 

Total net cash provided/used

–2 738

–558

Effect of foreign currency translation

533

–263

Change in cash and cash equivalents

–2 205

–821

Cash and cash equivalents as of 1 January

9 011

6 806

Cash and cash equivalents as of 31 December

6 806

5 985

Interest paid was USD 655 million and USD 631 million (thereof USD 49 million and USD 43 million for letter of credit fees) for 2017 and 2018, respectively. Tax paid was USD 720 million and USD 740 million for 2017 and 2018, respectively.

Cash and cash equivalents include restricted cash and restricted cash equivalents, for instance pledged cash and cash equivalents (please refer to Note 7, “Investments“).

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