HSBC 2015 Annual Report Download - page 422

Notes on the Financial Statements (continued)
28 – Liabilities under insurance contracts / 29 – Provisions
HSBC HOLDINGS PLC
420
Liabilities under insurance contracts
Gross
Reinsurers’
share Net
$m $m $m
Non-linked insurance contracts1
At 1 January 2015 36,973 (772) 36,201
Claims and benefits paid (3,200) 153 (3,047)
Increase in liabilities to policyholders 7,746 (575) 7,171
Disposals/transfers to held-for-sale (443) 6 (437)
Exchange differences and other movements (538) 73 (465)
At 31 December 2015 40,538 (1,115) 39,423
Investment contracts with DPF
At 1 January 2015 25,068
–
25,068
Claims and benefits paid (2,101)
–
(2,101)
Increase in liabilities to policyholders 2,728
–
2,728
Exchange differences and other movements2 (3,086)
–
(3,086)
At 31 December 2015 22,609
–
22,609
Linked life insurance contracts
At 1 January 2015 11,820 (260) 11,560
Claims and benefits paid (1,869) 64 (1,805)
Increase in liabilities to policyholders 1,398 (5) 1,393
Disposals/transfers to held-for-sale (4,594)
–
(4,594)
Exchange differences and other movements3 36 (62) (26)
691
628
At 31 December 2015 6,791 (263) 6,528
Total liabilities to policyholders at 31 December 2015 69,938 (1,378) 68,560
Non-linked insurance contracts1
At 1 January 2014 33,950 (1,118) 32,832
Claims and benefits paid (3,575) 175 (3,400)
Increase in liabilities to policyholders 7,764 (409) 7,355
Disposals/transfers to held-for-sale (589) 527 (62)
Exchange differences and other movements (577) 53 (524)
At 31 December 2014 36,973 (772) 36,201
Investment contracts with DPF
At 1 January 2014 26,427
–
26,427
Claims and benefits paid (2,175)
–
(2,175)
Increase in liabilities to policyholders 3,188
–
3,188
Exchange differences and other movements2 (2,372)
–
(2,372)
At 31 December 2014 25,068
–
25,068
Linked life insurance contracts
At 1 January 2014 13,804 (290) 13,514
Claims and benefits paid (1,499) 88 (1,411)
Increase in liabilities to policyholders 2,762 33 2,795
Disposals/transfers to held-for-sale (2,547) 74 (2,473)
Exchange differences and other movements3 (700) (165) (865)
At 31 December 2014 11,820 (260) 11,560
Total liabilities to policyholders at 31 December 2014 73,861 (1,032) 72,829
1 ‘Non-linked insurance contracts’ includes liabilities under non-life insurance contracts.
2 ‘Exchange differences and other movements’ includes movement in liabilities relating to discretionary profit participation benefits due to policyholders
arising from net unrealised investment gains recognised in other comprehensive income.
3 ‘Exchange differences and other movements’ 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 included 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.