Notes on the cash flow statement
for the year ended 31 December 2003
A. Reconciliation of operating profit/(loss) to net cash
inflow from operating activities |
2003
£m |
2002
£m |
| Profit/(loss) before taxation |
134.6 |
(257.5) |
| Depreciation charge |
9.6 |
11.6 |
| Profit on sale of fixed assets |
(0.9) |
(1.0) |
| Increase in gross technical provisions |
14.1 |
112.2 |
| Increase in reinsurers' share of technical provisions |
(0.7) |
(3.2) |
| Decrease/(increase) in debtors |
4.2 |
(11.6) |
| Decrease/(increase) in prepayments and accrued income |
7.4 |
(10.3) |
| Decrease in deposits received from reinsurers |
- |
(0.2) |
| Decrease in creditors |
- |
(2.0) |
| Increase in accruals and deferred income |
0.5 |
0.9 |
| Non-cash movement in investment income |
0.4 |
0.5 |
| Realised gains on investments |
(48.3) |
(32.1) |
| Unrealised (gains)/losses on investments |
(34.5) |
283.8 |
| |
86.4 |
91.1 |
| B. Analysis of net movements in portfolio investments |
2003
£m |
2002
£m |
| Portfolio investments |
|
|
|
Movement in short term deposits |
(45.2) |
22.9 |
Purchase of British government securities |
154.6 |
396.7 |
Purchase of ordinary shares |
0.5 |
358.9 |
Purchase of other investments |
127.0 |
90.6 |
Sale of British government securities |
(189.6) |
(331.3) |
Sale of ordinary shares |
(49.9) |
(462.6) |
Sale of other investments |
(109.4) |
(70.5) |
| |
(112.0) |
4.7 |
| C. Movement in cash and portfolio investments |
| |
1 Jan
2003
£m |
Cash
flows
£m |
Changes
in market
value
£m |
Other
non-cash
changes
£m |
31 Dec
2003
£m |
| Cash |
143.7 |
172.3 |
- |
- |
316.0 |
| Deposits |
45.4 |
(45.2) |
- |
- |
0.2 |
| British government securities |
507.1 |
(35.0) |
(15.9) |
0.2 |
456.4 |
| Ordinary shares |
730.4 |
(49.4) |
67.6 |
33.1 |
781.7 |
| Other investments |
563.3 |
17.6 |
(17.2) |
14.6 |
578.3 |
| |
1,989.9 |
60.3 |
34.5 |
47.9 |
2,132.6 |
| |
1 Jan
2002
£m |
Cash
flows
£m |
Changes
in market
value
£m |
Other
non-cash
changes
£m |
31 Dec
2002
£m |
| Cash |
61.7 |
82.0 |
- |
- |
143.7 |
| Deposits |
22.5 |
22.9 |
- |
- |
45.4 |
| British government securities |
430.3 |
65.4 |
10.1 |
1.3 |
507.1 |
| Ordinary shares |
1,106.3 |
(103.7) |
(301.6) |
29.4 |
730.4 |
| Other investments |
534.6 |
20.1 |
7.7 |
0.9 |
563.3 |
| |
2,155.4 |
86.7 |
(283.8) |
31.6 |
1,989.9 |
Notes to the Financial Statements
