HSBC 2006 Annual Report Download - page 378

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
Notes 30 and 31
376
Life insurance policyholders’ liabilities
2006
Gross
Reinsurers’
share Net
US$m US$m US$m
Life (non-linked)
At 1 January ..................................................................................................... 8,369 (807) 7,562
Benefits paid .................................................................................................... (814) 154 (660)
Claims incurred ................................................................................................ 3,021 (208) 2,813
Exchange differences and other movements ................................................... 450 (185) 265
At 31 December ............................................................................................... 11,026 (1,046) 9,980
Investment contracts with discretionary participation features
At 1 January ..................................................................................................... 9 – 9
Claims incurred ................................................................................................ 6 – 6
Foreign exchange and other movements ......................................................... 5 – 5
At 31 December ............................................................................................... 20 – 20
Life (linked)
At 1 January ..................................................................................................... 2,895 (69) 2,826
Benefits paid .................................................................................................... (495) 9 (486)
Claims incurred ................................................................................................ 1,146 11 1,157
Exchange differences and other movements ................................................... 139 (9) 130
At 31 December ............................................................................................... 3,685 (58) 3,627
Total policyholders’ liabilities ......................................................................... 14,731 (1,104) 13,627
2005
Gross
Reinsurers’
share Net
US$m US$m US$m
Life (non-linked)
At 1 January ..................................................................................................... 6,860 (1,049) 5,811
Benefits paid .................................................................................................... (621) 111 (510)
Claims incurred ................................................................................................ 2,304 80 2,384
Exchange differences and other movements ................................................... (174) 51 (123)
At 31 December ............................................................................................... 8,369 (807) 7,562
Investment contracts with discretionary participation features
At 1 January ..................................................................................................... – – –
Claims incurred ................................................................................................ 9 – 9
At 31 December ............................................................................................... 9 – 9
Life (linked)
At 1 January ..................................................................................................... 2,523 (73) 2,450
Benefits paid .................................................................................................... (357) 11 (346)
Claims incurred ................................................................................................ 802 (22) 780
Exchange differences and other movements ................................................... (73) 15 (58)
At 31 December ............................................................................................... 2,895 (69) 2,826
Total policyholders’ liabilities ......................................................................... 11,273 (876) 10,397
The claims incurred represent the aggregate of all events giving rise to additional policyholders’ liabilities in the year.
These include death claims, surrenders, lapses, the setting up of liability to policyholders at the initial inception of the
policy, the declaration of bonuses and other amounts attributable to policyholders.