HSBC 2006 Annual Report Download - page 241

239
(Audited)
Treasury
bills
Other eligible
bills
Debt
securities Total
US$m US$m US$m US$m
At 31 December 2005
Supporting liabilities under non-linked insurance
contracts
AAA ......................................................................... 117 224 3,367 3,708
AA– to AA+ ............................................................. – 223 3,372 3,595
A– to A+ ................................................................... – – 1,459 1,459
Lower than A– .......................................................... – – 382 382
Unrated ..................................................................... – – 60 60
117 447 8,640 9,204
Supporting shareholders’ funds1
AAA ......................................................................... 221 109 892 1,222
AA– to AA+ ............................................................. – 7 606 613
A– to A+ ................................................................... – – 787 787
Lower than A– .......................................................... – – 183 183
Unrated ..................................................................... – – 7 7
221 116 2,475 2,812
Total2
AAA ......................................................................... 338 333 4,259 4,930
AA– to AA+ ............................................................. – 230 3,978 4,208
A– to A+ ................................................................... – – 2,246 2,246
Lower than A– .......................................................... – – 565 565
Unrated ..................................................................... – – 67 67
338 563 11,115 12,016
Of which issued by:
– government ............................................................ 338 – 2,224 2,562
– local authorities ..................................................... – – 76 76
– corporates .............................................................. – – 8,424 8,424
– other ....................................................................... – 563 391 954
338 563 11,115 12,016
Of which classified as:
– trading assets ......................................................... 124 – 153 277
– financial instruments designated at fair value ....... 43 – 2,867 2,910
– available-for-sale securities ................................... 171 563 3,109 3,843
– held-to-maturity investments ................................ – – 4,986 4,986
338 563 11,115 12,016
1 Shareholders’ funds comprise solvency and unencumbered assets.
2 Excludes treasury bills, other eligible bills and debt securities held by insurance underwriting associates Erisa, S.A. and Ping An
Insurance.
(Audited)
Credit risk also arises when part of the insurance
risk incurred by HSBC is assumed by reinsurers. The
credit risk exposure for reinsurers is monitored
centrally.
The split of liabilities ceded to reinsurers and
outstanding reinsurance recoveries, analysed by Standard
and Poor’s reinsurance credit rating data or their
equivalent, was as follows: