HSBC 2005 Annual Report Download - page 260

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
258
2005
US$m
Net income/(expense) arising on:
– financial assets held to meet liabilities under insurance and investment contracts ....................................................... 1,760
– other financial assets designated at fair value ............................................................................................................... 90
– derivatives managed in conjunction with financial assets designated at fair value ....................................................... 17
1,867
– liabilities to customers under investment contracts ...................................................................................................... (1,126)
– HSBC’s debt securities in issue and subordinated liabilities1 ....................................................................................... 1,795
– derivatives managed in conjunction with HSBC’s debt securities in issue and subordinated liabilities ...................... (1,392)
– other financial liabilities designated at fair value ......................................................................................................... (112)
– derivatives managed in conjunction with other financial liabilities designated at fair value ........................................ 2
(833)
Net income from financial instruments designated at fair value ...................................................................................... 1,034
1Gains and losses from changes in the fair value of HSBC’s debt securities in issue and subordinated liabilities may arise from changes
in HSBC’s own credit risk. In 2005, HSBC recognised a US$70 million loss on changes in the fair value of these instruments arising
from changes in HSBC’s own credit risk.
4 Net earned insurance premiums
2005
Non-life
insurance
Life
insurance
(non-linked)
Life
insurance
(linked)
Investment
contracts with
discretionary
participation
features Total
US$m US$m US$m US$m US$m
Gross written premiums ............ 2,364 3,441 768 12 6,585
Movement in unearned
premiums .............................. (225) 2 (210) – (433)
Gross earned premiums ............. 2,139 3,443 558 12 6,152
Gross written premiums ceded
to reinsurers ........................... (479) (277) (20) – (776)
Reinsurers’ share of movement
in unearned premiums ........... 60–––60
Reinsurers’ share of gross
earned premiums ................... (419) (277) (20) – (716)
Net earned
insurance premiums .............. 1,720 3,166 538 12 5,436