HSBC 2012 Annual Report Download - page 478

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
31 – Liabilities under insurance contracts
476
Liabilities under insurance contracts (continued)
Gross
Reinsurers’
share Net
US$m US$m US$m
Brought forward ......................................................................................................... 81 (14) 67
Life insurance liabilities to policyholders
Life (non-linked) ......................................................................................................... 30,684 (938) 29,746
Investment contracts with discretionary participation features1 ................................. 24,374 – 24,374
Life (linked) ................................................................................................................ 13,056 (455) 12,601
68,114 (1,393) 66,721
68,195 (1,407) 66,788
At 31 December 2011
Non-life insurance liabilities
Unearned premium provision ..................................................................................... 621 (112) 509
Notified claims ............................................................................................................ 510 (91) 419
Claims incurred but not reported ................................................................................ 449 (51) 398
Other ........................................................................................................................... 55 4 59
1,635 (250) 1,385
Life insurance liabilities to policyholders
Life (non-linked) ......................................................................................................... 26,926 (649) 26,277
Investment contracts with discretionary participation features1 ................................. 21,488 – 21,488
Life (linked) ................................................................................................................ 11,210 (903) 10,307
59,624 (1,552) 58,072
61,259 (1,802) 59,457
1 Though investment contracts with discretionary participation features are financial instruments, HSBC treats them as insurance
contracts as permitted by IFRS 4.
Movement on non-life insurance liabilities
Gross
Reinsurers’
share Net
US$m US$m US$m
2012
Unearned premium reserve (‘UPR’)
At 1 January ................................................................................................................ 621 (112) 509
Changes in UPR recognised as (income)/expense ..................................................... 44 3 47
Gross written premiums ......................................................................................... 760 (104) 656
Gross earned premiums .......................................................................................... (716) 107 (609)
Disposals...................................................................................................................... (497) 91 (406)
Exchange differences and other movements .............................................................. (134) 12 (122)
At 31 December .......................................................................................................... 34 (6) 28
Notified and incurred but not reported claims
At 1 January ................................................................................................................ 959 (142) 817
Notified claims ....................................................................................................... 510 (91) 419
Claims incurred but not reported ............................................................................ 449 (51) 398
Claims paid in current year ......................................................................................... (339) 57 (282)
Claims incurred in respect of current year ................................................................. 341 (53) 288
Claims incurred in respect of prior years ................................................................... 1 (5) (4)
Disposals...................................................................................................................... (486) 137 (349)
Exchange differences and other movements .............................................................. (435) – (435)
At 31 December .......................................................................................................... 41 (6) 35
Notified claims ....................................................................................................... 29 (6) 23
Claims incurred but not reported ............................................................................ 12 – 12
Other ........................................................................................................................... 6 (2) 4
Total non-life insurance liabilities .............................................................................. 81 (14) 67