HSBC 2008 Annual Report Download - page 270

HSBC HOLDINGS PLC
Report of the Directors: Risk (continued)
Insurance operations > Financial risks > Credit risk
268
Credit quality
(Audited)
The following table presents an analysis of treasury
bills, other eligible bills and debt securities within
HSBC’s insurance business by measures of credit
quality. The definitions of the four credit quality
classifications are included on page 217. Only assets
supporting non-linked liabilities are included in the
table as financial risk on assets supporting linked
liabilities is predominantly borne by the
policyholder. 93.7 per cent (2007: 88.7 per cent) of
the assets included in the table are invested in
investments rated as ‘Strong’.
Treasury bills, other eligible bills and debt securities in HSBC’s insurance subsidiaries
(Audited)
Neither past due nor impaired
Strong Medium
Sub-
standard Impaired1 Total
US$m US$m US$m US$m US$m
At 31 December 2008
Supporting liabilities under non-linked insurance and investment
contracts
Trading assets – debt securities .................................................................. 27 8 – 35
Financial assets designated at fair value .................................................... 2,704 654 – 3,358
– treasury and other eligible bills .......................................................... 197 – – 197
– debt securities ..................................................................................... 2,507 654 – 3,161
Financial investments ................................................................................ 24,881 913 45 4 25,843
– treasury and other similar bills ........................................................... 404 2 – – 406
– debt securities ..................................................................................... 24,477 911 45 4 25,437
27,612 1,575 45 4 29,236
Supporting shareholders’ funds2
Trading assets – debt securities .................................................................. 4 – – 4
Financial assets designated at fair value .................................................... 1,502 131 – 1,633
– treasury and other eligible bills .......................................................... 8–– 8
– debt securities ..................................................................................... 1,494 131 – 1,625
Financial investments ................................................................................ 2,033 228 99 – 2,360
– treasury and other similar bills ........................................................... 245 7 2 – 254
– debt securities ..................................................................................... 1,788 221 97 – 2,106
3,539 359 99 – 3,997
Total3
Trading assets – debt securities .................................................................. 31 8 – 39
Financial assets designated at fair value .................................................... 4,206 785 – 4,991
– treasury and other eligible bills .......................................................... 205 – – 205
– debt securities ..................................................................................... 4,001 785 – 4,786
Financial investments ................................................................................ 26,914 1,141 144 4 28,203
– treasury and other similar bills ........................................................... 649 9 2 – 660
– debt securities ..................................................................................... 26,265 1,132 142 4 27,543
31,151 1,934 144 4 33,233