Annual Report Introduction
IAG's Four Principles Paying Claims Understanding & Pricing Risk Managing Costs Reducing Risk
Group Operating Performance
Chairman's Review
CEO's Review
Business Overview
Executive Team
Review of Operations
Board of Directors
Corporate Governance
Financial Report
Five Year Financial Summary
Directors Report
Directors Report
Statements of Financial Performance
Statements of Financial Position
Statements of Cash Flows
Notes to Financial Statements
Directors' Declaration
Independent Auditors Report
Shareholder Information
Corporate Directory
Cash Flows
For the year ended 30 June 2005
Print
  CONSOLIDATED
2005
$m		 CONSOLIDATED
2004
$m
Cash flows from operating activities
Premium received 6,610 6,578
Reinsurance and other recoveries received 452 458
Claims costs paid (4,179) (4,168)
Reinsurance expense paid (394) (474)
Dividends received 88 72
Interest and similar items received 470 454
Borrowing costs paid (62) (46)
Income tax refund 4 16
Income taxes paid (315) (139)
Other operating receipts 1,036 1,094
Other operating payments (2,813) (2,676)
Net cash provided by operating activities 897 1,169
Cash flows from investing activities
Net cash flows on acquisition of controlled entities (7) -
Net cash flows on disposal of controlled entities - (45)
Proceeds from disposal of investments and property, plant and equipment 19,987 23,034
Outlays for investments and property, plant and equipment acquired (20,126) (23,758)
Repayment of premium funding loans 375 285
Advances of premium funding loans (414) (300)
Net cash used in investing activities (185) (784)
Cash flows from financing activities
Outlays for share buy-back inclusive of costs - (417)
Outlays for return of capital to outside equity interests - (56)
Proceeds from issues of trust units 2,035 948
Outlays for redemption of trust units (2,163) (567)
Proceeds from issue of reset exchangeable securities, net of transaction costs 537 -
Outlays to acquire Portfolio (550) -
Proceeds from other borrowings inclusive of costs 9 671
Repayment of borrowings (9) (815)
Dividends paid to IAG shareholders (442) (282)
Dividends paid to outside equity interests (96) (72)
Net cash used in financing activities (679) (590)
Net increase / (decrease) in cash held 33 (205)
Effects of exchange rate changes on balances of cash held in foreign currencies (1) 3
Cash at the beginning of the financial year 424 626
Cash at the end of the financial year 456 424

The above consolidated statement of cash flows is to be read in conjunction with the notes to the financial statements and the discussion and analysis.