Our Accounts 125
Notes to the financial statements continued
31 December 2012
50. Cash generated from operating activities
Group Society
2012 2011 2012 2011
Restated Restated
£m £m £m £m
Profit/(loss) before tax and mutual bonus 103.2 (16.9) 3.3 (47.7)
Investment income (320.2) (261.4) (337.0) (284.9)
Net gains on investments (374.7) (425.4) (304.1) (407.3)
Finance costs 0.5 0.5 - -
Net decrease/(increase) in derivatives 92.3 (12.7) 100.1 (14.1)
Non-cash items
Expenses deferred during the year (5.4) 44.1 - -
Amortisation of intangible assets 12.0 13.0 4.6 4.6
Depreciation on property and equipment 3.4 2.6 0.8 0.8
Loss on disposal of property and equipment 0.4 - 0.4 0.1
Increase in capitalised goodwill (2.4) (5.3) (2.4) (5.3)
Decrease in provisions and pension obligation (17.9) (25.5) (17.3) (16.6)
Impairment write-offs in subsidiaries - - 90.0 34.4
Mutual bonus (20.9) (18.6) (20.9) (18.6)
Changes in working capital
Decrease/(increase) in loans and receivables 13.0 (36.8) 26.3 (77.6)
Increase in reinsurance assets (110.3) (123.3) (74.4) (7.0)
(Increase)/decrease in insurance receivables (10.8) (23.3) (2.4) 4.7
Increase in other prepayments and accrued income (7.7) (1.2) (1.7) (1.8)
Increase in insurance contract liabilities 909.4 1,131.9 657.1 821.3
Increase in investment contract liabilities 158.4 59.7 158.4 59.7
Statements and Reviews
Increase in borrowings - - - 5.6
(Decrease)/increase in other financial liabilities (1.7) 55.3 8.7 55.9
Increase/(decrease) in insurance payables 3.1 9.0 (5.4) 7.9
(Decrease)/increase in trade and other payables (11.9) 48.7 (11.6) 26.4
Cash generated from operating activities 411.8 414.4 272.5 140.5
51. Valuation
The latest published report on the valuation of Assets and Liabilities of the Society (the Annual FSA Insurance Return) was made at
Our Businesses
31 December 2012 and is available on request from the Group Company Secretary, County Gates, Bournemouth, BH1 2NF and LV.com.
52. Society information
Liverpool Victoria Friendly Society is a UK-incorporated and domiciled Friendly Society registered under the Friendly Societies Act 1992.
LV= and Liverpool Victoria are trademarks of Liverpool Victoria Friendly Society Limited. LV= and LV= Liverpool Victoria are trading styles
of the Liverpool Victoria group of companies. Liverpool Victoria is authorised and regulated by the Financial Services Authority and is a
member of the ABI, AFS and ILAG.
Risk Management
Registered office:
County Gates
Bournemouth
BH1 2NF.
Telephone: 01202 292333
Corporate Governance
Our Accounts