Annual Report & Accounts 2008
Consolidated cash flow statement
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Consolidated cash flow statement for the year ended 31 December 2008
| Notes | 2008
$m | 2007
$m |
| Cash flows from operating activities |
|
|
|
|---|
| Profit before tax |
|
97.6 |
391.9 |
|---|
| Tax paid |
|
(0.9) |
(2.4) |
|---|
| Depreciation |
7, 18 |
1.1 |
1.4 |
|---|
| Interest expense |
19 |
9.8 |
11.6 |
|---|
| Interest and dividend income |
|
(59.6) |
(79.3) |
|---|
| Amortisation of fixed income securities |
|
– |
(0.7) |
|---|
| Equity based compensation |
5, 6 |
10.6 |
14.4 |
|---|
| Foreign exchange |
|
9.4 |
(3.1) |
|---|
| Share of loss (profit) of associate |
12 |
0.2 |
(6.2) |
|---|
| Net other investment (income) losses |
3, 20 |
(0.1) |
3.3 |
|---|
| Net realised losses (gains) and impairments |
3 |
11.0 |
(9.1) |
|---|
| Net fair value losses (gains) on investments at fair value through profit and loss |
3 |
0.6 |
(0.4) |
|---|
| Unrealised loss on interest rate swaps |
20 |
2.7 |
1.3 |
|---|
| Reinsurance assets |
|
|
|
|---|
| – Unearned premium on premium ceded |
13 |
9.6 |
(0.5) |
|---|
| – Reinsurance recoveries |
13 |
(38.5) |
(3.5) |
|---|
| – Other receivables |
13 |
5.0 |
(8.2) |
|---|
| Deferred acquisition costs |
15 |
(3.1) |
(6.3) |
|---|
| Other receivables |
14 |
(150.2) |
2.4 |
|---|
| Inwards premium receivable from insureds and cedants |
|
8.2 |
(23.8) |
|---|
| Insurance contracts |
|
|
|
|---|
| – Losses and loss adjustment expenses |
13 |
349.8 |
140.0 |
|---|
| – Unearned premiums |
13 |
(42.2) |
56.2 |
|---|
| – Other payables |
|
2.0 |
11.3 |
|---|
| Amounts payable to reinsurers |
16 |
(3.7) |
4.9 |
|---|
| Deferred acquisition costs ceded |
17 |
(1.2) |
0.5 |
|---|
| Other payables |
|
142.6 |
25.8 |
|---|
| Net cash flows from operating activities |
|
360.7 |
521.5 |
|---|
| Cash flows used in investing activities |
|
|
|
|---|
| Interest and dividends received |
|
59.4 |
77.0 |
|---|
| Purchase of property, plant and equipment |
18 |
(0.2) |
(1.3) |
|---|
| Dividends received from associate |
12 |
22.7 |
6.5 |
|---|
| Purchase of fixed income securities |
26 |
(3,882.4) |
(2,143.3) |
|---|
| Purchase of equity securities |
|
(31.9) |
(30.9) |
|---|
| Proceeds on maturity and disposal of fixed income securities |
26 |
3,402.6 |
1,960.4 |
|---|
| Proceeds on disposal of equity securities |
|
66.7 |
36.9 |
|---|
| Net proceeds on other investments |
|
4.5 |
5.1 |
|---|
| Net cash flows used in investing activities |
|
(358.6) |
(89.6) |
|---|
| Cash flows used in financing activities |
|
|
|
|---|
| Interest paid |
|
(10.0) |
(11.6) |
|---|
| Dividends paid |
26 |
(238.2) |
– |
|---|
| Shares repurchased |
21, 26 |
(68.3) |
(89.3) |
|---|
| Net cash flows used in financing activities |
|
(316.5) |
(100.9) |
|---|
| Net (decrease) increase in cash and cash equivalents |
|
(314.4) |
331.0 |
|---|
| Cash and cash equivalents at beginning of year |
|
737.3 |
400.1 |
|---|
| Effect of exchange rate fluctuations on cash and cash equivalents |
|
(9.3) |
6.2 |
|---|
| Cash and cash equivalents at end of year |
10 |
413.6 |
737.3 |
|---|
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