Liquidity and financing
We generate liquidity primarily from our operating reinsurance business, investments and financing measures. Regular liquidity planning and a liquid investment structure ensure that Hannover Re is able to make the necessary payments at all times. Hannover Re's cash flow is shown in the consolidated cash flow statement in the notes.
The cash flow from operating activities, which also includes inflows from interest and dividend receipts, increased by a substantial EUR 546.8 million year-on-year to EUR 1,458.9 million. The net inflow results from the positive experience of our reinsurance business and is notable, in particular, for appreciably lower claim payments than in the previous year.
This inflow from operating activities enabled us to further enlarge our portfolio of high-quality fixed-income securities. Overall, the allocation of funds in connection with investing activities grew by EUR 463.5 million to EUR 1,034.1 million. The funds were for the most part invested with durations that matched the technical liabilities. Against the backdrop of the illiquidity prevailing in some parts of the capital markets, liquidity management assumed greater importance, also prompting restructuring measures in the existing asset portfolio. In this context please see our remarks in Section 6.6 "Liquidity risks" in the notes.
A crucial factor in the outflow of funds from financing activities in the year under review was our dividend payment of EUR 318.9 million. Hannover Re's debt financing was composed of subordinated loans and bonds that we issued in past years to ensure lasting protection of our capital base. The total volume of loans and subordinated capital amounted to EUR 1,420.0 million (EUR 1,414.9 million) as at the balance sheet date. In addition, unsecured syndicated guarantee facilities exist with a number of financial institutions. For further explanatory information please see our remarks in Section 7.8 "Debt and subordinated capital" and 7.9 "Shareholders' equity and minority interests".
Overall, the cash and cash equivalents increased by EUR 94.8 million year-on-year to EUR 430.2 million.
For further information on our liquidity management please see risk report as well as the explanatory remarks contained in Section 6 "Management of technical and financial risks" in the notes.