Download - CIC Insurance Group Limited

CIC INSURANCE GROUP LIMITEDNotes to the Financial Statements continuedFor the year ended 31 December 201141 NOTES TO THE STATEMENT OF CASH FLOWS – GROUPa) Reconciliation of profit before tax to cash generated from operations:2011 2010Sh’000 Sh’000Profit before taxation 787,214 605,324Adjustments for:Depreciation (note 11) 45,838 31,892Amortisation of intangible assets (note 12) 19,631 11,978Fair value gains on revaluation on investment property (note 13) (181,102) (50,000)Investment income receivable (note 4) (537,928) (235,361)Share of loss of associate (note 14) 19,816 -Loss/(gain) on revaluation of quoted shares (note 19) 59,209 (41,369)Loss on disposal of property and equipment (note 5) 29,015 9,625Increase in deferred acquisition costs (note 23) (73,745) (81,717)Increase in provision for unearned premium (note 38) 619,301 648,235(Decrease)/increase in outstanding claims provision 381,040 43,088Working capital changes;Increase in receivables arising out of direct insurance arrangements (34,427) (398,073)Decrease in receivables arising out of reinsurance arrangements 127,517 134,292Increase in other receivables (187,036) (72,554)Increase in other payables 119,588 * 175,140 *Actuarial value of policyholders liabilities 392,519 119,716Movement in amounts due to reinsurers and other insurance bodies (net) 125,746 (6,798)Net cash generated from operations 1,712,196 893,418*- Movement excludes an amount of Sh 420 million which relates to investment property payable at 31 December2010 which represents a non-cash transaction. This amount was settled in the current year.b) Cash and cash equivalents2011 2010Sh’000 Sh’000Bank and cash balances 157,663 250,916Deposits with banks maturing within 3 months-(note 27 (a)) 1,991,316 1,090,9252,148,979 1,341,841PAGE 642011 ANNUAL REPORT & FINANCIAL STATEMENTS