HSBC 2011 Annual Report Download - page 387

385
Overview Operating & Financial Review Corporate Governance Financial Statements Shareholder Information
Life insurance liabilities to policyholders
Gross
Reinsurers’
share Net
US$m US$m US$m
2011
Life (non-linked)
At 1 January ................................................................................................................ 23,583 (673) 22,910
Benefits paid ............................................................................................................... (1,793) 164 (1,629)
Increase in liabilities to policyholders ........................................................................ 5,729 (254) 5,475
Exchange differences and other movements .............................................................. (593) 114 (479)
At 31 December .......................................................................................................... 26,926 (649) 26,277
Investment contracts with discretionary participation features
At 1 January ................................................................................................................ 22,074 – 22,074
Benefits paid ............................................................................................................... (2,628) – (2,628)
Increase in liabilities to policyholders ........................................................................ 3,005 – 3,005
Exchange differences and other movements1 ............................................................. (963) – (963)
At 31 December .......................................................................................................... 21,488 – 21,488
Life (linked)
At 1 January ................................................................................................................ 10,496 (760) 9,736
Benefits paid ............................................................................................................... (1,129) 56 (1,073)
Increase in liabilities to policyholders ........................................................................ 2,462 (111) 2,351
Exchange differences and other movements2 ............................................................. (619) (88) (707)
At 31 December .......................................................................................................... 11,210 (903) 10,307
Total liabilities to policyholders ................................................................................. 59,624 (1,552) 58,072
2010
Life (non-linked)
At 1 January ................................................................................................................ 20,979 (771) 20,208
Benefits paid ............................................................................................................... (1,355) 143 (1,212)
Increase in liabilities to policyholders ........................................................................ 5,108 (201) 4,907
Exchange differences and other movements .............................................................. (1,149) 156 (993)
At 31 December .......................................................................................................... 23,583 (673) 22,910
Investment contracts with discretionary participation features
At 1 January ................................................................................................................ 21,014 – 21,014
Benefits paid ............................................................................................................... (2,023) – (2,023)
Increase in liabilities to policyholders ........................................................................ 3,716 – 3,716
Exchange differences and other movements1 ............................................................. (633) – (633)
At 31 December .......................................................................................................... 22,074 – 22,074
Life (linked)
At 1 January ................................................................................................................ 8,986 (831) 8,155
Benefits paid ............................................................................................................... (507) 45 (462)
Increase in liabilities to policyholders ........................................................................ 2,520 99 2,619
Exchange differences and other movements2 ............................................................. (503) (73) (576)
At 31 December .......................................................................................................... 10,496 (760) 9,736
Total liabilities to policyholders ................................................................................. 56,153 (1,433) 54,720
1 Includes movement in liabilities relating to discretionary profit participation benefits due to policyholders arising from net unrealised
investment gains recognised in other comprehensive income.
2 Includes amounts arising under reinsurance agreements.
The increase in liabilities to policyholders represents the aggregate of all events giving rise to additional liabilities to
policyholders in the year. The key factors contributing to the movement in liabilities to policyholders include death
claims, surrenders, lapses, liabilities to policyholders created at the initial inception of the policies, the declaration of
bonuses and other amounts attributable to policyholders.