HSBC 2006 Annual Report Download - page 234

HSBC HOLDINGS PLC
Report of the Directors: The Management of Risk (continued)
Insurance operations > Insurance risk / Financial risks
232
Insurance contracts Investment contracts
Contracts
with
DPF1
Unit-
linked Annuities
Term
assurance2
Non-life
Unit-
linked Other
Other
assets3
Total
US$m US$m US$m US$m US$m US$m US$m US$m US$m
At 31 December 2005
Financial assets:
– trading assets ............ – – – 49 58 – – 170 277
– financial assets
designated at fair value 1,005 2,132 52 947 14 6,995 1,415 1,488 14,048
– derivatives ................ 57 426 – – – 1 4 – 488
– financial investments 2,581 – 1,272 339 1,230 – 1,527 1,896 8,845
– other assets ............... 635 268 828 182 619 174 376 1,098 4,180
Total financial assets ......... 4,278 2,826 2,152 1,517 1,921 7,170 3,322 4,652 27,838
Reinsurance assets ............. 2 69 193 612 669 – – 40 1,585
PVIF .................................. – – – – – – – 1,400 1,400
Other assets and
investment properties ... 18 9 45 33 329 1 – 760 1,195
Total assets ........................ 4,298 2,904 2,390 2,162 2,919 7,171 3,322 6,852 32,018
Financial liabilities
designated at fair value . – – – – – 7,156 3,289 – 10,445
Liabilities under insurance
contracts ........................ 4,193 2,895 2,390 1,786 2,871 – 9 – 14,144
Deferred tax ...................... – – – – – – – 322 322
Other liabilities ................. – – – – – – – 2,125 2,125
Total liabilities .................. 4,193 2,895 2,390 1,786 2,871 7,156 3,298 2,447 27,036
Shareholders’ equity ......... – – – – – – – 4,982 4,982
Total liabilities and
shareholders’ equity4 .... 4,193 2,895 2,390 1,786 2,871 7,156 3,298 7,429 32,018
1 Discretionary participation features.
2 Term assurance includes credit life insurance.
3 Other assets comprise solvency and unencumbered assets.
4 Excludes assets, liabilities and shareholders’ funds of associate insurance companies Erisa S.A. and Ping An Insurance.
Balance sheet of insurance underwriting operations by geographical region
(Audited)
Europe
Hong
Kong
Rest of
Asia-
Pacific
North
America
Latin
America
Total
US$m US$m US$m US$m US$m US$m
At 31 December 2006
Financial assets:
– trading assets ............................................... – – – – 156 156
– financial assets designated at fair value ...... 11,750 4,120 733 – 1,835 18,438
– derivatives ................................................... 720 159 – – – 879
– financial investments ................................... 1,190 5,621 67 2,433 1,312 10,623
– other assets .................................................. 689 1,312 108 940 648 3,697
Total financial assets .......................................... 14,349 11,212 908 3,373 3,951 33,793
Reinsurance assets 1,560 47 25 93 92 1,817
PVIF .................................................................... 798 697 54 – – 1,549
Other assets and investment properties .............. 619 1,297 34 273 456 2,679
Total assets ......................................................... 17,326 13,253 1,021 3,739 4,499 39,838
Financial liabilities designated at fair value ....... 9,069 4,164 45 – – 13,278
Liabilities under investment contracts
carried at amortised cost ................................. – – – – 216 216
Liabilities under insurance contracts .................. 4,624 7,084 790 2,010 3,162 17,670
Deferred tax ........................................................ 251 123 10 – 19 403
Other liabilities ................................................... 1,475 337 20 195 295 2,322
Total liabilities .................................................... 15,419 11,708 865 2,205 3,692 33,889
Shareholders’ equity ........................................... 1,907 1,545 156 1,534 807 5,949
Total liabilities and shareholders’ equity1 .......... 17,326 13,253 1,021 3,739 4,499 39,838