HSBC 2015 Annual Report Download - page 188

Report of the Directors: Risk (continued)
Risk management of insurance operations
HSBC HOLDINGS PLC
186
included in the table are invested in investments rated
as ‘strong’.
For a definition of the five credit quality classifications, see
page 197.
Treasury bills, other eligible bills and debt securities in HSBC’s insurance manufacturing subsidiaries
(Audited)
Neither past due nor impaired
Strong Good Satisfactory Sub-standard Total
$m $m $m $m $m
Supporting liabilities under non-linked insurance and
investment contracts
Trading assets
–
debt securities
–
–
2
–
2
Financial assets designated at fair value 2,719 406 300 268 3,693
–
treasury and other eligible bills 130
–
–
16 146
–
debt securities 2,589 406 300 252 3,547
Financial investments
–
debt securities 39,741 4,333 1,886 166 46,126
42,460 4,739 2,188 434 49,821
Supporting shareholders’ funds49
Financial assets designated at fair value 138 22 20 104 284
–
treasury and other eligible bills 8
–
–
48 56
–
debt securities 130 22 20 56 228
Financial investments
–
debt securities 3,827 201 199
–
4,227
3,965 223 219 104 4,511
Total42
Trading assets
–
debt securities
–
–
2
–
2
Financial assets designated at fair value 2,857 428 320 372 3,977
–
treasury and other eligible bills 138
–
–
64 202
–
debt securities 2,719 428 320 308 3,775
Financial investments
–
debt securities 43,568 4,534 2,085 166 50,353
At 31 December 2015 46,425 4,962 2,407 538 54,332
Supporting liabilities under non-linked insurance and
investment contracts
Trading assets
–
debt securities 3
–
–
–
3
Financial assets designated at fair value 2,550 530 214 255 3,549
–
treasury and other eligible bills 5
–
–
35 40
–
debt securities 2,545 530 214 220 3,509
Financial investments
–
debt securities 38,515 4,312 1,662 200 44,689
41,068 4,842 1,876 455 48,241
Supporting shareholders’ funds49
Financial assets designated at fair value 214 322 30 69 635
–
treasury and other eligible bills
–
–
–
16 16
–
debt securities 214 322 30 53 619
Financial investments
–
debt securities 3,378 196 154 54 3,782
3,592 518 184 123 4,417
Total42
Trading assets
–
debt securities 3
–
–
–
3
Financial assets designated at fair value 2,764 852 244 324 4,184
–
treasury and other eligible bills 5
–
–
51 56
–
debt securities 2,759 852 244 273 4,128
Financial investments
–
debt securities 41,893 4,508 1,816 254 48,471
At 31 December 2014 44,660 5,360 2,060 578 52,658
For footnotes, see page 191.
Credit risk also arises when assumed insurance risk is ceded
to reinsurers. The split of liabilities ceded to reinsurers and
outstanding reinsurance recoveries, analysed by credit
quality, is shown below. Our exposure to third parties
under the reinsurance agreements described in the
Appendix to Risk on page 223 is included in this table.