Consolidated cash flow statement
For the year ended 31 December 2004
The cash flows presented in this statement relate to non-long-term business transactions only. Long-term business profits are included as net cash inflows/(outflows) from operating activities only to the extent that they have been remitted to shareholders by way of dividends from life operations.
| 2004 £m |
2003 £m |
|
|---|---|---|
| Net cash inflow from operating activities, excluding exceptional items* | 2,364 | 1,202 |
| Exceptional items* | (56) | (522) |
| Net cash outflow from servicing of finance | (309) | (256) |
| Corporation tax received/(paid) | 63 | (179) |
| Net purchases of tangible fixed assets | (111) | (101) |
| Acquisitions and disposals of subsidiary and associated undertakings** | 59 | 600 |
| Equity dividends paid | (450) | (523) |
| Proceeds from issue of subordinated debt | - | 1,567 |
| Direct capital instrument (net of issue costs) | 981 | - |
| Net cash inflow/(outflow) from other financing activities: | ||
| Issue of share capital | 3 | 2 |
| Net (repayment)/drawdown of loans | (312) | (366) |
| Net cash flows | 2,232 | 1,424 |
| Cash flows were invested as follows: | ||
| Increase/(decrease) in cash holdings | (161) | (173) |
| Net (sales)/purchases of investments | 2,468 | 1,672 |
| Non-trading cash outflow to long-term business operations | (75) | (75) |
| Net investment of cash flows | 2,232 | 1,424 |
| The 2003 comparatives reflect the reclassification of our equity release business in the UK. | ||
| * Included within exceptional items is £23 million in respect of the disposal of Hill House Hammond and £33 million of other levies. 2003 includes payments to the Berkshire Hathaway Group for reinsurance purchased in December 2000, to secure protection against any adverse impact of the run-off of London Market claims reserves. The final instalment was paid on 2 January 2003. | ||
| ** The 2003 figure includes £651 million of consideration received on 2 January 2003 in relation to the disposal of the Australia and New Zealand general insurance businesses. | ||
