Consolidated Cash Flow Statement
For the year ended 31 December 2007
| 2007 | 2006 | ||
| Notes | £m | £m | |
Cash generated from operations |
33 | 70.5 | (20.2) |
Income taxes paid |
(53.8) | (50.4) | |
Net cash flows from operations |
16.7 | (70.6) | |
Cash flows from investing activities |
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Interest received |
99.0 | 97.5 | |
Dividends received |
12.5 | 4.5 | |
Acquisition of subsidiary, net of cash acquired |
35 | (3.3) | – |
Purchase of property and equipment |
(2.7) | (3.6) | |
Net cash from investing activities |
105.5 | 98.4 | |
Cash flows used in financing activities |
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Proceeds from issue of ordinary shares |
4.5 | 4.6 | |
Proceeds from borrowings |
– | 227.7 | |
Repayment of borrowings |
– | (238.0) | |
Dividends paid to shareholders |
29 | (111.1) | (47.4) |
Interest paid |
(19.1) | (24.1) | |
Purchase of treasury shares |
(1.5) | – | |
Net cash flows used in financing activities |
(127.2) | (77.2) | |
Net decrease in cash and cash equivalents |
(5.0) | (49.4) | |
Cash and cash equivalents at beginning of year |
16.5 | 65.6 | |
Effect of rate changes on cash and cash equivalents |
0.1 | 0.3 | |
Cash and cash equivalents at end of year |
16 | 11.6 | 16.5 |
The Group classifies cash flows from purchase and disposal of financial assets in its operating cash flows as these transactions are generated by the cash flows associated with the origination and settlement of insurance contract liabilities or capital requirements to support underwriting. Net cash of £232.1 million(2006: £271.8 million) was generated in the period and has been used to purchase financial investments.
Cash flows relating to participations on syndicates not managed by the Group are included only to the extent that cash is transferred between the Premium Trust Funds and the Group.
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