HSBC 2007 Annual Report Download - page 279

277
(Audited) Treasury
bills
Other eligible
bills
Debt
securities Total
US$m US$m US$m US$m
At 31 December 2006
Supporting liabilities under non-linked insurance
and investment contracts
AAA ......................................................................... 217 145 3,876 4,238
AA– to AA+ ............................................................. – 210 3,994 4,204
A– to A+ ................................................................... – – 1,880 1,880
Lower than A– .......................................................... – – 667 667
Unrated ..................................................................... 22 – 110 132
239 355 10,527 11,121
Supporting shareholders’ funds1
AAA ......................................................................... 119 137 918 1,174
AA– to AA+ ............................................................. – 8 903 911
A– to A+ ................................................................... – – 692 692
Lower than A– .......................................................... 21 – 180 201
Unrated ..................................................................... 1 – 28 29
141 145 2,721 3,007
Total3
AAA ......................................................................... 336 282 4,794 5,412
AA– to AA+ ............................................................. – 218 4,897 5,115
A– to A+ ................................................................... – – 2,572 2,572
Lower than A– .......................................................... 21 – 847 868
Unrated ..................................................................... 23 – 138 161
380 500 13,248 14,128
Of which issued by:
– governments .......................................................... 380 – 2,825 3,205
– local authorities ..................................................... – – 69 69
– asset-backed securities .......................................... – – 223 223
– corporates and other .............................................. – 500 10,131 10,631
380 500 13,248 14,128
Of which classified as:
– trading assets ......................................................... – – 156 156
– financial instruments designated at fair value ....... 79 – 3,458 3,537
– available-for-sale securities ................................... 257 500 3,437 4,194
– held-to-maturity investments ................................ 44 – 6,197 6,241
380 500 13,248 14,128
1 Shareholders’ funds comprise solvency and unencumbered assets.
2 Does not include treasury bills, other eligible bills and debt securities held by insurance manufacturing associate, Ping An Insurance.
3 Does not include treasury bills, other eligible bills and debt securities held by insurance manufacturing associates, HSBC Assurances
and Ping An Insurance.
(Audited)
Credit risk also arises when part of the insurance
risk incurred by HSBC is assumed by reinsurers. The
credit risk exposure for reinsurers is monitored by
Group Insurance Head Office and is reported
quarterly to the Group Insurance Risk Committee
and the Group Insurance Credit Risk Committee.
The split of liabilities ceded to reinsurers and
outstanding reinsurance recoveries, analysed by
Standard & Poor’s reinsurance credit rating data or
their equivalent, was as follows: