HSBC 2009 Annual Report Download - page 451

449
Life insurance liabilities to policyholders
Gross
Reinsurers’
share Net
US$m US$m US$m
2009
Life (non-linked)
At 1 January ............................................................................................................. 17,370 (637) 16,733
Benefits paid ............................................................................................................ (2,098) 159 (1,939)
Increase in liabilities to policyholders ..................................................................... 4,669 (98) 4,571
Exchange differences and other movements ........................................................... 1,038 (195) 843
At 31 December ....................................................................................................... 20,979 (771) 20,208
Investment contracts with discretionary participation features
At 1 January ............................................................................................................. 17,766 – 17,766
Benefits paid ............................................................................................................ (1,818) – (1,818)
Increase in liabilities to policyholders ..................................................................... 3,934 – 3,934
Exchange differences and other movements1 .......................................................... 1,132 – 1,132
At 31 December ....................................................................................................... 21,014 – 21,014
Life (linked)
At 1 January ............................................................................................................. 6,067 (956) 5,111
Benefits paid ............................................................................................................ (325) 21 (304)
Increase in liabilities to policyholders ..................................................................... 2,676 146 2,822
Exchange differences and other movements2 .......................................................... 568 (42) 526
At 31 December ....................................................................................................... 8,986 (831) 8,155
Total liabilities to policyholders .............................................................................. 50,979 (1,602) 49,377
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 movements1........................................................... (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 movements2 .......................................................... (790) 499 (291)
At 31 December ....................................................................................................... 6,067 (956) 5,111
Total liabilities to policyholders .............................................................................. 41,203 (1,593) 39,610
1 Includes movement in liabilities relating to discretionary profit participation benefits due to policyholders arising from net unrealised
investment gains recognised in other comprehensive income.
2 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. The key factors contributing to the movement in liabilities to policyholders include death
claims, surrenders, lapses, liabilities to policyholders created at the initial inception of the policies, the declaration of
bonuses and other amounts attributable to policyholders.