HSBC 2012 Annual Report Download - page 234

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Risk > Risk management of insurance operations > Bancassurance / In 2012
232
Risk management of insurance operations
(Audited)
Page App1Tables Page
HSBC’s bancassurance model ............................ 233
Overview of insurance products ............................ 273
Nature and extent of risks ...................................... 273
Insurance risk ......................................................... 274
Risk management of insurance operations
in 2012 ............................................................... 233
Insurance risk ......................................................... 233 Analysis of life insurance risk – liabilities to policyholders 234
Analysis of non-life insurance risk – net written insurance
premiums .......................................................................... 234
Balance sheet of insurance manufacturing
subsidiaries ....................................................... 235 Balance sheet of insurance manufacturing subsidiaries:
– by type of contract ............................................................ 236
– by geographical region .................................................... 237
Financial risks ...................................................... 238 275 Financial assets held by insurance manufacturing
subsidiaries ...................................................................... 238
Market risk ............................................................. 239 275 Liabilities to policyholders .................................................. 239
Sensitivity of HSBC’s insurance manufacturing
subsidiaries to market risk factors .................................. 240
Credit risk .............................................................. 240 277 Treasury bills, other eligible bills and debt securities in
HSBC’s insurance manufacturing subsidiaries .............. 240
Reinsurers’ share of liabilities under insurance contracts . 242
Liquidity risk ......................................................... 242 277 Expected maturity of insurance contract liabilities ............ 242
Remaining contractual maturity of investment contract
liabilities .......................................................................... 243
Present value of in-force long-term insurance
business ............................................................. 243 Movements in PVIF and total equity of insurance operations 244
Key assumptions used in the computation of PVIF for main
life insurance operations ................................................. 244
Economic assumptions ........................................ 244 Sensitivity of PVIF to changes in economic assumptions ... 244
Non-economic assumptions ................................. 245 Sensitivity analysis ............................................................... 245
1 Appendix to Risk - policies and practices.