Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 366

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 366
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 819 |
| Deferred tax                                                                                          |                                                    — |                   1 |               — |                                3 |       4 |
| Other liabilities                                                                                     |                                                    — |                   — |               — |                            6,573 |   6,573 |
| Total liabilities                                                                                     |                                              116,389 |               4,781 |           5,103 |                            6,576 | 132,849 |
| Total equity                                                                                          |                                                    — |                   — |               — |                            7,731 |   7,731 |
| Total liabilities and equity at 31 Dec2023                                                            |                                              116,389 |               4,781 |           5,103 |                           14,307 | 140,580 |

1 ‘Life direct participating and investment DPF contracts’ are life direct participating contracts and investment contracts with discretionary participating features.

These are substantially measured under the variable fee approach measurement model.

2 ‘Life other contracts’ are measured under the general measurement model and mainly include protection insurance contracts as well as reinsurance contracts.

The reinsurance contracts primarily provide diversification benefits over the life direct participating and investment DPF contracts.

3 ‘Other contracts’ includes investment contracts for which HSBC does not bear significant insurance risk.

4 ’Other assets and investment properties’ includes $ 24,222m and ’Other liabilities’ includes $ 23,420m in respect of the classification of the French insurance

business assets and liabilities as held for sale at 31 December 2024. Further details are provided on page 433 .

Key risk types Market risk (Audited) Description and exposure Market risk is the risk of changes in market factors affecting HSBC’s capital or profit. Market factors include interest rates, equity and growth assets, credit spreads and foreign exchange rates. Our exposure varies depending on the type of contract issued. Our most significant life insurance products are contracts with participating features. These products typically include some form of capital guarantee or guaranteed return on the sums invested by the policyholders, to which bonuses are added if allowed by the overall performance of the funds. For contracts without participating features, some form of guarantee may still exist but HSBC’s ability to share risks with policyholders will be reduced. Funds supporting these savings products are primarily invested in fixed income, with a proportion in some cases allocated to other asset classes to provide customers with the potential for enhanced returns. These products expose HSBC to the risk of variation in asset returns, which will impact our participation in the investment performance