HSBC 2015 Annual Report Download - page 361

HSBC HOLDINGS PLC
359
Strategic Report
Financial Review Corporate Governance Financial Statements Shareholder Information
2 Net income from financial instruments designated at fair value
Accounting policy
Net income from financial instruments designated at fair value includes all gains and losses from changes in the fair value of financial assets
and liabilities designated at fair value through profit or loss, including derivatives that are managed in conjunction with those financial assets
and liabilities, and liabilities under investment contracts. Interest income, interest expense and dividend income in respect of those financial
instruments are also included, except for interest arising from debt securities issued by HSBC and derivatives managed in conjunction with
those debt securities, which is recognised in ‘Interest expense’.
Net income from financial instruments designated at fair value
2015 2014 2013
$m $m $m
Net income/(expense) arising on:
–
financial assets held to meet liabilities under insurance and investment contracts 531 2,300 3,170
–
other financial assets designated at fair value 89 131 118
–
derivatives managed in conjunction with other financial assets designated
at fair value 13 (19) (26)
633 2,412 3,262
–
liabilities to customers under investment contracts 34 (435) (1,237)
–
HSBC’s long-term debt issued and related derivatives 863 508 (1,228)
–
changes in own credit spread on long-term debt 1,002 417 (1,246)
–
derivatives managed in conjunction with HSBC’s issued debt securities (1,997) 333 (3,743)
–
other changes in fair value 1,858 (242) 3,761
–
other financial liabilities designated at fair value 3(23) (39)
–
derivatives managed in conjunction with other financial liabilities designated
at fair value (1) 11 10
899 61 (2,494)
Year ended 31 December 1,532 2,473 768
HSBC Holdings
Net income/(expense) arising on HSBC Holdings long-term debt issued and related derivatives
2015 2014 2013
$m $m $m
Net income/(expense) arising on:
–
changes in own credit spread on long-term debt 348 339 (695)
–
derivatives managed in conjunction with HSBC Holdings issued debt securities (927) 126 (1,558)
–
other changes in fair value 855 (27) 1,213
Year ended 31 December 276 438 (1,040)
3 Net insurance premium income
Accounting policy
Premiums for life insurance contracts are accounted for when receivable, except in unit-linked insurance contracts where premiums are
accounted for when liabilities are established.
Reinsurance premiums are accounted for in the same accounting period as the premiums for the direct insurance contracts to which they
relate.
Net insurance premium income
Non-linked
insurance1
Linked life
insurance
Investment
contracts
with DPF2 Total
$m $m $m $m
Gross insurance premium income 7,506 1,409 2,097 11,012
Reinsurers’ share of gross insurance premium income (648) (9) − (657)
Year ended 31 December 2015 6,858 1,400 2,097 10,355