HSBC 2010 Annual Report Download - page 347

345
Overview Operating & Financial Review Governance Financial Statements Shareholder Information
Life insurance liabilities to policyholders
Gross
Reinsurers’
share Net
US$m US$m US$m
2010
Life (non-linked)
At 1 January ................................................................................................................ 20,979 (771) 20,208
Benefits paid ............................................................................................................... (1,355) 143 (1,212)
Increase in liabilities to policyholders ........................................................................ 5,108 (201) 4,907
Exchange differences and other movements .............................................................. (1,149) 156 (993)
At 31 December .......................................................................................................... 23,583 (673) 22,910
Investment contracts with discretionary participation features
At 1 January ................................................................................................................ 21,014 – 21,014
Benefits paid ............................................................................................................... (2,023) – (2,023)
Increase in liabilities to policyholders ........................................................................ 3,716 – 3,716
Exchange differences and other movements1 ............................................................. (633) – (633)
At 31 December .......................................................................................................... 22,074 – 22,074
Life (linked)
At 1 January ................................................................................................................ 8,986 (831) 8,155
Benefits paid ............................................................................................................... (507) 45 (462)
Increase in liabilities to policyholders ........................................................................ 2,520 99 2,619
Exchange differences and other movements2 ............................................................. (503) (73) (576)
At 31 December .......................................................................................................... 10,496 (760) 9,736
Total liabilities to policyholders ................................................................................. 56,153 (1,433) 54,720
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
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.