Financial Statements
Consolidated cash flow statement
For the year ended 31 December 2007
| 2007 £m |
2006 £m |
|
|---|---|---|
| Operating activities | ||
| (Loss)/profit for the year | (70) | 421 |
| Compensation from terminated merger (less related costs) | (34) | - |
| Unrealised losses/(gains) on investments | 1,245 | (311) |
| Realised gains on investments | (2,025) | (1,618) |
| Finance costs | 141 | 88 |
| Amortisation and impairment of intangible assets | 115 | 150 |
| Depreciation of property and equipment | 10 | 10 |
| Movement in deferred acquisition costs | 74 | (119) |
| Total tax (credit)/expense | (43) | 70 |
| Purchase of shares and other variable yield securities | (15,229) | (13,185) |
| Sale of shares and other variable yield securities | 14,122 | 12,014 |
| Purchase of loans, debt securities and other fixed income securities | (16,985) | (13,486) |
| Sale of loans, debt securities and other fixed income securities | 17,238 | 13,311 |
| Purchase of investment properties | (167) | (285) |
| Sale of investment properties | 107 | 47 |
| Decrease in insurance contract liabilities | (155) | (875) |
| Increase in investment contract liabilities | 3,642 | 5,074 |
| Increase in fund for future appropriations | 42 | 19 |
| Decrease in provisions | (66) | (78) |
| Net (decrease)/increase in receivables and payables | (192) | 165 |
| Pre-tax cash inflow from operating activities | 1,770 | 1,412 |
| Tax received/(paid) | 27 | (86) |
| Net cash inflow from operating activities | 1,797 | 1,326 |
| Investing activities | ||
| Acquisition of subsidiaries, net of cash acquired | (41) | (21) |
| Reduction in participation in subsidiaries, net of cash disposed | - | 49 |
| Compensation from investment mandate loss | - | 27 |
| Compensation from terminated merger (less related costs) | 34 | - |
| Additions to internally generated intangible assets | (26) | (18) |
| Purchase of property and equipment (net) | (11) | (11) |
| Net cash (outflow)/inflow from investing activities | (44) | 26 |
| Financing activities | ||
| Finance costs | (134) | (81) |
| STICS interest | (52) | (52) |
| Proceeds from issue of long-term debt, net of expenses | - | 258 |
| Repayment of long-term debt | (164) | (312) |
| Net movement in other borrowings, net of expenses | 8 | 12 |
| Dividends paid to equity holders of the parent | (168) | (164) |
| Dividends paid to minority interest | (42) | (46) |
| Net cash outflow from financing activities | (552) | (385) |
| Increase in cash and cash equivalents | 1,201 | 967 |
| Balance at beginning of year | 3,581 | 2,614 |
| Balance at end of year | 4,782 | 3,581 |