Consolidated Cash Flow Statement

For the year ended 31 December 2014

Note

2014
£m

20131
£m

1.

The Consolidated Cash Flow Statement has been restated to reflect the adoption by the group of IFRS 10, ‘Consolidated Financial Statements’. Further details are contained Note 1.

2.

Tax comprises UK corporation tax paid of £29m (2013: £133m), overseas corporate taxes of £24m (2013: £6m) and withholding tax of £23m (2013: £148m).

3.

Net cash flows from acquisitions includes cash paid of £38m (2013: £287m) less cash and cash equivalents acquired of £nil (2013: £190m).

Cash flows from operating activities

 

 

 

Profit for the year

 

992

906

Adjustments for non cash movements in net profit for the year

 

 

 

Realised and unrealised gains on financial investments and investment properties

 

(30,851)

(21,456)

Investment income

 

(9,205)

(9,504)

Interest expense

 

183

166

Tax expense

 

421

419

Other adjustments

 

87

98

Net (increase)/decrease in operational assets

 

 

 

Investments held for trading or designated as fair value through profit or loss

 

5,931

1,952

Investments designated as available-for-sale

 

225

60

Other assets

 

(151)

547

Net increase/(decrease) in operational liabilities

 

 

 

Insurance contracts

 

9,228

1,384

Transfer (from)/to unallocated divisible surplus

 

(222)

63

Investment contracts

 

10,156

13,835

Value of in-force non-participating contracts

 

40

(6)

Other liabilities

 

9,811

3,883

Cash generated used in operations

 

(3,355)

(7,653)

Interest paid

 

(203)

(169)

Interest received

 

4,857

4,981

Tax paid2

 

(76)

(287)

Dividends received

 

4,264

4,497

Net cash flows generated from operating activities

 

5,487

1,369

 

 

 

 

Cash flows from investing activities

 

 

 

Net acquisition of plant, equipment and intangibles

 

(80)

(48)

Acquisitions (net of cash acquired)3

 

(38)

(97)

Disposal of subsidiaries

 

56

Investment in joint ventures

 

(77)

(68)

Net cash flows from investing activities

 

(139)

(213)

 

 

 

 

Cash flows from financing activities

 

 

 

Dividend distributions to ordinary equity holders of the Company during the year

 

(580)

(479)

Proceeds from issue of ordinary share capital

 

11

3

Purchase of employee scheme shares

 

(2)

(4)

Proceeds from borrowings

 

674

1,231

Repayment of borrowings

 

(181)

(1,115)

Net cash flows used in financing activities

 

(78)

(364)

 

 

 

 

Net increase in cash and cash equivalents

 

5,270

792

Exchange losses on cash and cash equivalents

 

(15)

Cash and cash equivalents at 1 January

 

17,454

16,662

Cash and cash equivalents at 31 December

15

22,709

17,454

The group’s Consolidated Cash Flow Statement includes all cash and cash equivalent flows, including those relating to the UK long-term fund policyholders.