HSBC 2008 Annual Report Download - page 425

423
Life insurance liabilities to policyholders
Gross
Reinsurers’
share Net
US$m US$m US$m
2008
Life (non-linked)
At 1 January ..................................................................................................... 14,370 (605) 13,765
Benefits paid .................................................................................................... (1,491) 172 (1,319)
Increase in liabilities to policyholders ............................................................. 5,480 (792) 4,688
Exchange differences and other movements ................................................... (989) 588 (401)
At 31 December ............................................................................................... 17,370 (637) 16,733
Investment contracts with discretionary participation features
At 1 January ..................................................................................................... 18,983 – 18,983
Benefits paid .................................................................................................... (1,911) – (1,911)
Increase in liabilities to policyholders ............................................................. 1,743 – 1,743
Exchange differences and other movements ................................................... (1,049) – (1,049)
At 31 December ............................................................................................... 17,766 – 17,766
Life (linked)
At 1 January ..................................................................................................... 6,399 (57) 6,342
Benefits paid .................................................................................................... (481) 44 (437)
Increase in liabilities to policyholders ............................................................. 939 (1,442) (503)
Exchange differences and other movements1 .................................................. (790) 499 (291)
At 31 December ............................................................................................... 6,067 (956) 5,111
Total liabilities to policyholders ...................................................................... 41,203 (1,593) 39,610
2007
Life (non-linked)
At 1 January ..................................................................................................... 11,026 (1,046) 9,980
Benefits paid .................................................................................................... (940) 169 (771)
Increase in liabilities to policyholders ............................................................. 3,377 349 3,726
Acquisitions of subsidiaries ............................................................................. 702 – 702
Exchange differences and other movements ................................................... 205 (77) 128
At 31 December ............................................................................................... 14,370 (605) 13,765
Investment contracts with discretionary participation features
At 1 January ..................................................................................................... 20 – 20
Benefits paid .................................................................................................... (1,080) – (1,080)
Increase in liabilities to policyholders ............................................................. 2,188 – 2,188
Acquisitions of subsidiaries ............................................................................. 16,406 – 16,406
Exchange differences and other movements ................................................... 1,449 – 1,449
At 31 December ............................................................................................... 18,983 – 18,983
Life (linked)
At 1 January ..................................................................................................... 3,685 (58) 3,627
Benefits paid .................................................................................................... (790) (45) (835)
Increase in liabilities to policyholders ............................................................. 2,886 (1,120) 1,766
Acquisitions of subsidiaries ............................................................................. 339 – 339
Exchange differences and other movements1 .................................................. 279 1,166 1,445
At 31 December ............................................................................................... 6,399 (57) 6,342
Total liabilities to policyholders ...................................................................... 39,752 (662) 39,090
1 Includes amounts arising under reinsurance agreements.
The increase in liabilities to policyholders represents the aggregate of all events giving rise to additional liabilities to
policyholders 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.