HSBC 2006 Annual Report Download - page 320

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
Notes 4, 5 and 6
318
1 Gains and losses from changes in the fair value of HSBC’s issued debt securities may arise from changes in HSBC’s own credit risk. In
2006, HSBC recognised a US$388 million loss on changes in the fair value of these instruments arising from changes in HSBC’s own
credit risk (2005: loss US$70 million).
4 Net earned insurance premiums
Non-life
insurance
Life
insurance
(non-linked)
Life
insurance
(linked)
Investment
contracts with
discretionary
participation
features Total
US$m US$m US$m US$m US$m
2006
Gross written premiums ............................ 1,824 3,640 848 8 6,320
Movement in unearned premiums ............ 122 14 (1) – 135
Gross earned premiums ............................ 1,946 3,654 847 8 6,455
Gross written premiums ceded to
reinsurers .............................................. (451) (274) (14) – (739)
Reinsurers’ share of movement in
unearned premiums .............................. (48) – – – (48)
Reinsurers’ share of gross earned
premiums .............................................. (499) (274) (14) – (787)
Net earned insurance premiums ............... 1,447 3,380 833 8 5,668
2005
Gross written premiums ............................ 2,364 3,441 768 12 6,585
Movement in unearned premiums ............ (225) 2 (210) – (433)
Gross earned premiums ............................ 2,139 3,443 558 12 6,152
Gross written premiums ceded to
reinsurers .............................................. (479) (277) (20) – (776)
Reinsurers’ share of movement in
unearned premiums .............................. 60 – – – 60
Reinsurers’ share of gross earned
premiums .............................................. (419) (277) (20) – (716)
Net earned insurance premiums ............... 1,720 3,166 538 12 5,436
5 Net insurance claims incurred and movement in policyholders’ liabilities
Non-life
insurance
Life
insurance
(non-linked)
Life
insurance
(linked)
Investment
contracts with
discretionary
participation
features Total
US$m US$m US$m US$m US$m
2006
Claims, benefits and surrenders paid ........ 889 814 495 – 2,198
Movement in liabilities ............................. 10 2,207 651 6 2,874
Gross claims incurred and movement in
liabilities ............................................... 899 3,021 1,146 6 5,072
Reinsurers’ share of claims, benefits and
surrenders paid ..................................... (228) (154) (9) – (391)
Reinsurers’ share of movement in
liabilities ............................................... 57 (54) 20 – 23
Reinsurers’ share of claims incurred and
movement in liabilities .......................... (171) (208) 11 – (368)
Net insurance claims incurred and
movement in policyholders’
liabilities ............................................... 728 2,813 1,157 6 4,704