HSBC 2008 Annual Report Download - page 262

HSBC HOLDINGS PLC
Report of the Directors: Risk (continued)
Insurance operations > Insurance risk
260
Balance sheet of insurance manufacturing subsidiaries by type of contract (continued)
(Audited)
Insurance contracts Investment contracts
Contracts
with
DPF
Unit-
linked
Annu-
ities
Term
assur-
ance1
Non-life
Contracts
with
DPF2
Unit-
linked
Other
Other
assets3 Total
US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m
At 31 December 2007
Financial assets:
– trading assets .............. – – 37 – 22 – – – 35 94
– financial assets
designated at
fair value .................... 3,424 5,799 610 559 130 6,210 12,379 1,610 2,992 33,713
– derivatives .................. 2 52 – – 1 78 250 3 30 416
– financial investments . 4,518 – 1,265 328 1,071 12,305 – 1,526 2,939 23,952
– other financial assets .. 1,896 520 1,047 716 1,175 3 762 714 1,483 8,316
Total financial assets .......... 9,840 6,371 2,959 1,603 2,399 18,596 13,391 3,853 7,479 66,491
Reinsurance assets ............. 4 57 337 264 653 – – – 54 1,369
PVIF4 .................................. – – – – – – – – 1,965 1,965
Other assets and
investment properties .... 65 2 30 104 193 399 46 52 1,196 2,087
Total assets ......................... 9,909 6,430 3,326 1,971 3,245 18,995 13,437 3,905 10,694 71,912
Liabilities under investment
contracts designated at
fair value ........................ – – – – – – 12,725 3,328 – 16,053
Liabilities under investment
contracts carried at
amortised cost ................ – – – – – – – 312 – 312
Liabilities under
insurance contracts ........ 9,660 6,399 3,127 1,583 2,854 18,983 – – – 42,606
Deferred tax ....................... – 7 3 22 3 – 6 – 582 623
Other liabilities .................. – – – – – – – – 3,888 3,888
Total liabilities ................... 9,660 6,406 3,130 1,605 2,857 18,983 12,731 3,640 4,470 63,482
Total equity ........................ – – – – – – – – 8,430 8,430
Total equity and liabilities6 9,660 6,406 3,130 1,605 2,857 18,983 12,731 3,640 12,900 71,912
1 Term assurance includes credit life insurance.
2 Although investment contracts with DPF are financial investments, HSBC continues to account for them as insurance contracts as
permitted by IFRS 4.
3 Other assets comprise shareholder assets.
4 Present value of in-force long-term insurance contracts and investment contracts with DPF.
5 Does not include assets, liabilities and shareholders’ funds of associated insurance company, Ping An Insurance, or joint venture
insurance companies, Hana Life and Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited.
6 Does not include assets, liabilities and shareholders’ funds of associated insurance company, Ping An Insurance.