HSBC 2009 Annual Report Download - page 274

HSBC HOLDINGS PLC
Report of the Directors: Risk (continued)
Insurance operations > Financial risks
272
Balance sheet of insurance manufacturing subsidiaries by geographical region49
(Audited)
Europe
Hong
Kong
Rest of
Asia-
Pacific
North
America
Latin
America
Tota l
US$m US$m US$m US$m US$m US$m
At 31 December 2009
Financial assets ................................................... 35,704 22,337 1,330 2,582 7,610 69,563
– trading assets ............................................... – – – – 10 10
– financial assets designated at fair value ...... 14,756 4,758 877 – 4,773 25,164
– derivatives .................................................... 446 18 3 – 1 468
– financial investments ................................... 16,940 14,771 133 2,037 1,968 35,849
– other financial assets ................................... 3,562 2,790 317 545 858 8,072
Reinsurance assets .............................................. 1,100 849 25 19 136 2,129
PVIF55 ................................................................. 1,022 1,248 113 138 259 2,780
Other assets and investment properties .............. 1,380 498 23 40 316 2,257
Total assets .......................................................... 39,206 24,932 1,491 2,779 8,321 76,729
Liabilities under investment contracts:
– designated at fair value ................................ 6,500 4,299 66 – – 10,865
– carried at amortised cost .............................. – – – – 417 417
Liabilities under insurance contracts .................. 27,845 17,618 1,072 1,268 5,904 53,707
Deferred tax ........................................................ 334 220 27 82 126 789
Other liabilities ................................................... 1,744 284 54 3 286 2,371
Total liabilities .................................................... 36,423 22,421 1,219 1,353 6,733 68,149
Total equity ......................................................... 2,783 2,511 272 1,426 1,588 8,580
Total equity and liabilities56 ................................ 39,206 24,932 1,491 2,779 8,321 76,729
At 31 December 2008
Financial assets ................................................... 31,246 17,865 961 2,625 5,293 57,990
– trading assets ............................................... – – – – 39 39
– financial assets designated at fair value ...... 12,605 4,153 581 – 2,936 20,275
– derivatives .................................................... 258 117 – – 26 401
– financial investments ................................... 14,240 10,689 91 2,040 1,404 28,464
– other financial assets ................................... 4,143 2,906 289 585 888 8,811
Reinsurance assets .............................................. 920 1,004 20 13 126 2,083
PVIF55 ................................................................. 845 905 81 – 202 2,033
Other assets and investment properties .............. 933 400 9 354 291 1,987
Total assets .......................................................... 33,944 20,174 1,071 2,992 5,912 64,093
Liabilities under investment contracts:
– designated at fair value ................................ 5,310 3,895 78 – – 9,283
– carried at amortised cost .............................. – – – – 284 284
Liabilities under insurance contracts .................. 23,752 13,873 745 1,237 4,076 43,683
Deferred tax ........................................................ 304 161 19 – 103 587
Other liabilities ................................................... 2,184 190 42 11 252 2,679
Total liabilities .................................................... 31,550 18,119 884 1,248 4,715 56,516
Total equity ......................................................... 2,394 2,055 187 1,744 1,197 7,577
Total equity and liabilities56 ................................ 33,944 20,174 1,071 2,992 5,912 64,093
For footnotes, see page 291.
Financial risks
(Audited)
HSBC’s insurance businesses are exposed to a range
of financial risks, including market risk, credit risk
and liquidity risk. Market risk includes interest rate
risk, equity risk and foreign exchange risk. The
nature and management of these risks is described
below.
Manufacturing subsidiaries are exposed to
financial risks, for example, when the proceeds
from financial assets are not sufficient to fund the
obligations arising from non-linked insurance and
investment contracts. Certain insurance-related
activities undertaken by HSBC subsidiaries such as
insurance broking, insurance management (including
captive management) and the administration and