HSBC 2014 Annual Report Download - page 124

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HSBC BANK PLC
Notes on the Financial Statements (continued)
122
2 Net insurance premium income
Accounting policy
Premiums for life insurance contracts are accounted for when receivable, except in unit-linked insurance contracts where premiums
are accounted for when liabilities are established.
Reinsurance premiums are accounted for in the same accounting period as the premiums for the direct insurance contracts to which
they relate.
Net earned insurance premium income
Non-linked
Insurance
1
Linked life
insurance
Investment
contracts with
DPF
2
features
Total
£m
£m
£m
£m
Gross insurance premium income
262
183
1,498
1,943
Reinsurers’ share of gross premium income
(116)
(4)
–
(120)
Year ended 31 December 2014
146
179
1,498
1,823
Gross insurance premium income
310
314
1,526
2,150
Reinsurers’ share of gross premium income
(124)
(4)
–
(128)
Year ended 31 December 2013
186
310
1,526
2,022
1 Includes non-life insurance.
2 Discretionary participation features.
3 Net insurance claims, benefits paid and movement in liabilities to policyholders
Accounting policy
Gross insurance claims for life insurance contracts reflect the total cost of claims arising during the year, including claim handling costs
and any policyholder bonuses allocated in anticipation of a bonus declaration.
Maturity claims are recognised when due for payment. Surrenders are recognised when paid or at an earlier date on which, following
notification, the policy ceases to be included within the calculation of the related insurance liabilities. Death claims are recognised
when notified.
Reinsurance recoveries are accounted for in the same period as the related claim.
Net insurance claims, benefits paid and movement in liabilities to policyholders
Non-linked
Insurance
1
Linked life
Insurance
Investment
contracts with
DPF
2
features
Total
£m
£m
£m
£m
Claims, benefits and surrenders paid
140
247
1,407
1,794
Movement in liabilities
83
37
526
646
Gross claims, benefits paid and movement in liabilities
223
284
1,933
2,440
Reinsurers’ share of claims, benefits and surrenders paid
(80)
(3)
–
(83)
Reinsurers’ share of movement in liabilities
(37)
(4)
–
(41)
Reinsurers’ share of claims, benefits paid and movement in liabilities
(117)
(7)
–
(124)
Year ended 31 December 2014
106
277
1,933
2,316
Claims, benefits and surrenders paid
141
197
1,473
1,811
Movement in liabilities
48
388
877
1,313
Gross claims, benefits paid and movement in liabilities
189
585
2,350
3,124
Reinsurers’ share of claims, benefits and surrenders paid
(76)
(3)
–
(79)
Reinsurers’ share of movement in liabilities
(7)
(10)
–
(17)
Reinsurers’ share of claims, benefits paid and movement in liabilities
(83)
(13)
–
(96)
Year ended 31 December 2013
106
572
2,350
3,028
1 Includes non-life insurance.
2 Discretionary participation features.