Condensed consolidated statement of cash flows

Consolidated statement of cash flows

For the year ended 31 December 2009

The cash flows presented in this statement cover all the Group’s activities and include flows from both policyholder and shareholder activities. All cash and cash equivalents are available for use by the Group.

	2009 £m	Restated 2008 £m
Cash flows from operating activities
Cash-generated from operations	3,286	8,737
Tax paid	(601)	(642)
Net cash from operating activities	2,685	8,095
Cash flows from investing activities
Acquisitions of subsidiaries, joint ventures and associates, net of cash acquired	(596)	(336)
Disposals of subsidiaries, joint ventures and associates,
net of cash transferred	1,131	353
Purchase of minority interest in subsidiary	—	(65)
New loans to joint ventures and associates	(145)	(182)
Repayment of loans to joint ventures and associates	99	52
Net repayment loans to joint ventures and associates	(46)	(130)
Purchases of property and equipment	(149)	(216)
Proceeds on sale of property and equipment	188	59
Purchases of intangible assets	(30)	(60)
Net cash from investing activities	498	(395)
Cash flows from financing activities
Proceeds from issue of ordinary shares, net of transaction costs	1	20
Treasury shares purchased for employee trusts	(53)	(29)
New borrowings drawn down, net expenses	4,260	5,515
Repayment of borrowings	(3,853)	(5,217)
Net drawdown of borrowings	407	298
Interest paid on borrowings	(1,199)	(1,537)
Preference dividends paid	(17)	(17)
Ordinary dividends paid	(476)	(732)
Coupon payments on direct capital instrument	(61)	(56)
Finance lease payments	—	(14)
Capital contributions from minority shareholders	6	36
Dividends paid to minority interests of subsidiaries	(109)	(106)
Net cash from financing activities	(1,501)	(2,137)
Net increase in cash and cash equivalents	1,682	5,563
Cash and cash equivalents at 1 January	23,531	15,134
Effect of exchange rate changes on cash and cash equivalents	(962)	2,834
Cash and cash equivalents at 31 December	24,251	23,531

Of the total cash and cash equivalents, £nil was classified as held for sale (2008: £493 million).