Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 182

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 182
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0.3bn compared with 2022. This was driven by an increase in the release of CSM of $0.2bn as a result of a higher closing CSM balance. The improved insurance service result also reflected a reduction to losses from onerous contracts of $0.1bn, mainly in Hong Kong and Singapore, in part due to improved market conditions in 2023. – Other operating income decreased by $0.1bn compared with 2022, and included a $0.3bn loss from corrections to historical valuation estimates, partly offset by gains of $0.2bn from reinsurance contracts in Hong Kong. Insurance manufacturing new business contractual service margin increased by $0.8bn or 49% primarily in Hong Kong, from new business volumes increasing and a $0.2bn benefit from recognising a new reinsurance contract. Annualised new business premiums (‘ANP’) is used to assess new insurance premiums generated by the business. It is calculated as 100% of annualised first year regular premiums and 10% of single premiums, before reinsurance ceded. ANP in 2024 increased by 29% compared with 2023, primarily from strong new business sales in Hong Kong. Insurance equity plus CSM net of tax Insurance equity plus CSM net of tax is a non-GAAP alternative performance measure that provides information about our insurance manufacturing operations’ net asset value plus the future earnings from in-force business. At 31 December 2024, insurance equity plus CSM net of tax was $17,025m (31 December 2023: $16,583m; 31 December 2022: $14,646m). At 31 December 2024, insurance equity plus CSM net of tax was calculated as insurance manufacturing operations equity of $7,015m plus CSM of $12,063m less tax of $2,053m. At 31 December 2023, it was calculated as insurance manufacturing operations equity of

| 116 | HSBC Holdings plcAnnual Report on Form 20-F |

Global businesses

$7,731m plus CSM of $10,786m less tax of $1,934m. At 31 December 2022, it was calculated as insurance manufacturing operations equity of $7,236m plus CSM of $9,058m less tax of $1,648m. The increase of $0.4bn in 2024 insurance manufacturing equity plus CSM