Aviva 2002 Annual Report Download - page 68

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Consolidated cash flow statement
For the year ended 31 December 2002
,
2002 2001
£m £m
Operating activities
Net cash inflow from operating activities, excluding exceptional items
and merger transaction costs (47a)* 1,001 697
Exceptional items and merger transaction costs paid* (523) (491)
478 206
Dividends from joint ventures and associates
Dividends from associates (21b) 44
Returns on investments and servicing of finance
Interest paid on borrowings (136) (197)
Interest paid on subordinated debt (73) (10)
Preference dividends paid (21) (17)
Dividends paid to minorities (35) (22)
Net cash outflow from servicing of finance (265) (246)
Tax
Corporation tax received/(paid) 175 (39)
Capital expenditure
Purchases of tangible fixed assets (138) (131)
Sales of tangible fixed assets 36 17
Net purchases of tangible fixed assets (102) (114)
Acquisitions and disposals
Net disposals of subsidiary and associated undertakings (47b) 241 853
Equity dividends
Equity dividends paid (732) (856)
Financing activities
Issue of share capital (47c) 11 29
Net (repayment)/drawdown of loans** (68) 313
Proceeds from issue of subordinated debt (36) –1,157
Net cash (outflow)/inflow from financing activities (57) 1,499
Net cash flows (258) 1,307
Cash flows were invested as follows:
Increase/(decrease) in cash holdings (47d) 719 (69)
Net portfolio investment
Purchases of investments** 9,815 16,474
Sales of investments (10,562) (15,032)
Net (sales)/purchases of investments (47f) (747) 1,442
Non-trading cash outflow to long-term business operations (230) (66)
Net investment of cash flows (258) 1,307
The cash flows presented in this statement relate to non-long-term business transactions only. Long-term business profits are included as
net cash inflow from operating activities only to the extent that they have been remitted to shareholders by way of dividends from life
operations. The proceeds from the sale of our Australian and New Zealand general insurance businesses are excluded from the above
cash flow statement as they are accounted for within debtors at 31 December 2002 and were received on 2 January 2003.
*Payments to the Berkshire Hathaway Group for reinsurance purchased in December 2000, to secure protection against any adverse impact on the run-off of London Market
claims reserves, are now shown within exceptional items.
**The cash flows relating to mortgages securitised have been reclassified from net purchases of investments to drawdown of loans in 2001.
The accounting policies (identified alphabetically) on pages 44 to 46 and notes (identified numerically) on pages 56 to 90 are an integral part of these accounts.
The auditor’s report is on page 43.
54 Aviva plc
Annual report + accounts 2002