HSBC 2015 Annual Report Download - page 185

HSBC HOLDINGS PLC
183
Strategic Report Financial Review Corporate Governance Financial Statements Shareholder Information
Europe Asia
Latin
America Total
$m $m $m $m
Financial assets 30,178 47,443 7,320 84,941
–
trading assets
–
–
3 3
–
financial assets designated at fair value 10,610 12,497 5,589 28,696
–
derivatives 172 27
–
199
–
financial investments
–
HTM38
–
23,546 737 24,283
–
financial investments
–
AFS38 16,947 6,464 807 24,218
–
other financial assets39 2,449 4,909 184 7,542
Reinsurance assets 308 748 15 1,071
PVIF40 711 4,175 421 5,307
Other assets and investment properties 7,650 1,145 608 9,403
Total assets 38,847 53,511 8,364 100,722
Liabilities under investment contracts:
–
designated at fair value 1,585 4,727
–
6,312
–
carried at amortised cost
–
–
385 385
Liabilities under insurance contracts 27,312 39,990 6,559 73,861
Deferred tax41 273 806 142 1,221
Other liabilities 7,932 460 185 8,577
Total liabilities 37,102 45,983 7,271 90,356
Total equity 1,745 7,528 1,093 10,366
Total liabilities and equity at 31 December 201442 38,847 53,511 8,364 100,722
For footnotes, see page 191.
Movement in total equity of insurance operations
(Audited)
Total equity
2015 2014
$m $m
At 1 January 10,366 9,700
Movements in PVIF40 799 261
Return on net assets 410 1,835
Capital transactions (468) (673)
Disposals of subsidiaries/portfolios (13) 1
Exchange differences and other (560) (758)
At 31 December 10,534 10,366
For footnotes, see page 191.
Financial risks
(Audited)
Details on the nature of financial risks and how they are managed
are provided in the Appendix to Risk on page 220.
Financial risks can be categorised into:
• market risk – risk arising from changes in the fair values
of financial assets or their future cash flows from
fluctuations in variables such as interest rates, credit
spreads, foreign exchange rates and equity prices;
• credit risk – the risk of financial loss following the failure
of third parties to meet their obligations; and
• liquidity risk – the risk of not being able to make
payments to policyholders as they fall due as there
are insufficient assets that can be realised as cash.
The following table analyses the assets held in our
insurance manufacturing subsidiaries at 31 December 2015
by type of contract, and provides a view of the exposure to
financial risk. For unit-linked contracts, which pay benefits
to policyholders determined by reference to the value of
the investments supporting the policies, we typically
designate assets at fair value; for non-linked contracts, the
classification of the assets is driven by the nature of the
underlying contract.