Barclays 2009 Annual Report Download - page 232

230 Barclays PLC Annual Report 2009 www.barclays.com/annualreport09
Notes to the accounts
For the year ended 31st December 2009
continued
26 Insurance assets and liabilities continued
Options and guarantees
The Group’s insurance contracts do not contain options or guarantees that give rise to material risk.
Concentration of insurance risk
The Group considers that the concentration of insurance risk that is most relevant to the Group financial statements is according to the type of cover offered
and the location of insured risk. The following table shows the maximum amounts payable under all of the Group’s insurance products. It ignores the
probability of insured events occurring and the contribution from investments backing the insurance policies. The table shows the broad product types and
the location of the insured risk, before and after the impact of reinsurance that represents the risk that is passed to other insurers.
2009 2008
Before After Before After
Reinsurance Reinsurance Reinsurance Reinsurance Reinsurance Reinsurance
£m £m £m £m £m £m
Total benefits insured by product type
Long-term insurance contracts 13,405 (1,547) 11,858 19,193 (3,591) 15,602
Short-term insurance contracts 49,359 (4,145) 45,214 36,228 (2,735) 33,493
Total benefits insured 62,764 (5,692) 57,072 55,421 (6,326) 49,095
Total benefits insured by geographic location
United Kingdom 5,727 (363) 5,364 8,120 (525) 7,595
Other European Union 1,724 (20) 1,704 6,519 (2,305) 4,214
Africa 55,313 (5,309) 50,004 40,782 (3,496) 37,286
Total benefits insured 62,764 (5,692) 57,072 55,421 (6,326) 49,095
Reinsurer credit risk
For the long-term business, reinsurance programmes are in place to restrict the amount of cover on any single life.The reinsurance cover is spread across
highly rated companies to diversify the risk of reinsurer solvency. Net insurance reserves include a margin to reflect reinsurer credit risk.
27 Subordinated liabilities
Subordinated liabilities, which are all issued by Barclays Bank PLC (‘The Bank’) or other subsidiaries of the Group, include accrued interest and comprise
dated and undated loan capital as follows:
2009 2008
£m £m
Undated loan capital 8,148 13,673
Dated loan capital 17,668 16,169
25,816 29,842
Undated loan capital
2009 2008
Notes £m £m
Non-convertible
Barclays Bank PLC
6% Callable Perpetual Core Tier One Notes a,p 424 487
6.86% Callable Perpetual Core Tier One Notes (US$1,000m) a,p 784 1,118
5.3304% Step-up Callable Perpetual Reserve Capital Instruments b,q 560 652
5.926% Step-up Callable Perpetual Reserve Capital Instruments (US$1,350m) c,r 928 1,109
6.3688% Step-up Callable Perpetual Reserve Capital Instruments m,ac 567 600
7.434% Step-up Callable Perpetual Reserve Capital Instruments (US$1,250m) n,ad 866 1,055
14% Step-up Callable Perpetual Reserve Capital Instruments e,s 2,608 2,514
Junior Undated Floating Rate Notes (US$121m) d,t 75 83
7.7% Undated Subordinated Notes (US$99m, 2008: US$2,000m) o,af 65 1,644
Undated Floating Rate Primary Capital Notes Series 3 d,u 145 147
9.25% Perpetual Subordinated Bonds (ex-Woolwich plc) f,v 95 232
9% Permanent Interest Bearing Capital Bonds g,w 43 120
8.25% Undated Subordinated Notes o,ae 152 1,092
7.125% Undated Subordinated Notes h,x 180 620
6.875% Undated Subordinated Notes i,y 151 729
6.375% Undated Subordinated Notes j,z 147 526
6.125% Undated Subordinated Notes k,aa 220 666
6.5% Undated Subordinated Notes (FFr 1,000m) –151
5.03% Reverse Dual Currency Undated Subordinated Loan (Yen 8,000m) l,ab 55 51
5% Reverse Dual Currency Undated Subordinated Loan (Yen 12,000m) l,ab 83 77
Undated loan capital – non-convertible 8,148 13,673