Group cash generated from operations	Notes	2005 £m	2004 £m
Profit on ordinary activities before taxation		182.7	128.9
Net movement on Premium Trust Funds for non-aligned participations		(2.9)	(3.0)
Depreciation charge		2.1	2.6
Interest paid		9.2	5.1
Interest received		(65.3)	(50.8)
Dividends received		(2.0)	(1.1)
Unrealised (gains)/losses on investments		(13.5)	0.1
Net purchases of financial investments		(757.7)	(252.0)
Increase in loans and receivables		(64.9)	(12.3)
Increase in reinsurance contract assets		(411.5)	(84.7)
Increase in insurance contract liabilities		679.2	172.5
Increase/(decrease) in trade and other payables		(2.7)	33.7
Increase/(decrease) in retirement benefits		(0.1)	0.3
		(447.4)	(60.7)
Income taxes paid		(17.6)	(0.5)
Interest paid		(9.2)	(5.1)
Cash generated from operations		(474.2)	(66.3)
Cash flows from investing activities
Interest received		65.3	50.8
Dividends received		2.0	1.1
Acquisition of subsidiary, net of cash acquired		(0.2)	(2.5)
Purchase of property, plant and equipment		(1.9)	(2.4)
Net cash used in investing activities		65.2	47.0
Cash flows from financing activities
Proceeds from issue of ordinary shares		223.5	3.2
Proceeds from borrowings		266.1	55.6
Repayment of borrowings		(32.0)	(7.3)
Dividends paid to shareholders		(30.6)	(15.3)
Net cash from financing activities		427.0	36.2
Net increase in cash and cash equivalents		18.0	16.9
Cash and cash equivalents at beginning of year		47.6	30.7
Cash and cash equivalents at end of year	14	65.6	47.6

Cash flows relating to non-aligned syndicate participations (see note 17) are included only to the extent that cash is transferred between the Premium Trust Funds and the Group. As these syndicates are outside of the Group's management insufficient data is available to analyse the cash flows in any more detail.

The Group classifies the cash flows for the purchase and disposal of financial assets in its operating cash flows, as the purchases are funded from the cash flows associated with the origination of insurance contracts or the capital required to support underwriting, net of the cashflows for payments of insurance claims. Therefore cash generated from operations is net of £757.7 million (2004: £252.0 million) being cash generated in the period that has been used to purchase financial investments.