Aviva 2013 Annual Report Download - page 217

Strategic report Governance IFRS Financial statements Other information
Aviva plc
Annual report and accounts 2013
215
Notes to the consolidated financial statements continued
56 – Statement of cash flows
This note gives further detail behind the figures in the statement of cash flows.
(a) The reconciliation of profit before tax to the net cash inflow from operating activities is:
2013
£m
Restated1
2012
£m
Profit before tax from continuing operations 1,472 396
Adjustments for:
Share of (profits)/loss of
j
oint ventures and associates (120) 255
Dividends received from
j
oint ventures and associates 47 48
(Profit)/loss on sale of:
Investment property 2 (7)
Property and equipment — —
Subsidiaries,
j
oint ventures and associates (115) 164
Investments (3,047) (1,167)
(3,160) (1,010)
Fair value (gains)/losses on:
Investment property (184) 475
Investments (1,525) (12,418)
Borrowings (4) 43
(1,713) (11,900)
Depreciation of property and equipment 31 42
Equity compensation plans, equity settled expense 37 42
Impairment and expensing of:
Goodwill on subsidiaries 48 109
Financial investments, loans and other assets 32 46
Acquired value of in-force business and intangibles 14 122
Non-financial assets — —
94 277
Amortisation of:
Premium or discount on debt securities 144 105
Premium or discount on borrowings (16) (12)
Premium or discount on non participating investment contracts 8 20
Financial instruments 194 64
Acquired value of in-force business and intangibles 110 121
440 298
Change in unallocated divisible surplus (280) 6,316
Interest expense on borrowings 589 634
Net finance charge on pension schemes (37) (68)
Foreign currency exchange gains (187) (128)
Changes in working capital
(Increase) in reinsurance assets (571) (416)
Decrease in deferred acquisition costs 90 216
Increase in insurance liabilities and investment contracts 3,983 4,325
Increase in other assets and liabilities 5,114 2,021
8,616 6,146
Net purchases of operating assets
Purchases of investment property (370) (839)
Proceeds on sale of investment property 1,115 1,141
Net (purchases)/sales of financial investments (4,033) 1,231
(3,288) 1,533
Cash generated from operating activities
–
continuing operations 2,541 2,881
Cash generated from operating activities
–
discontinued operations2 1,950 46
Total cash generated from operating activities 4,491 2,927
1 Restated for the adoption of IFRS10. See note 1 for further details.
2 Discontinued operations represent the results of the US life and related internal asset management businesses (US Life) until the date of disposal (2 October 2013). For further details see note 4.
Operating cash flows reflect the movement in both policyholder and shareholder controlled cash and cash equivalent balances.
Around two thirds of the Group’s balances relate to unit-linked or participating policyholder funds. As such, the asset mix and the
level of cash held by these funds are determined from a policyholder perspective and can move significantly from one year to
another. Shareholder cash at 31 December 2013 is at £8.3 billion (2012: £9.0 billion).
Purchases and sales of operating assets, including financial investments, are included within operating cash flows as the
purchases are funded from cash flows associated with the origination of insurance and investment contracts, net of payments of
related benefits and claims. During the year, the net operating cash inflow reflects a number of factors, including the level of
premium income and the timing of receipts of premiums and the payment of creditors, claims and surrenders. It also includes
changes in the size and value of consolidated cash investment funds and changes in the Group participation in these funds.