Page 157 - Suncorp_Review

Suncorp Group Limited Annual Report 2010/11 155

The following table provides information regarding credit risk exposure of Life fnancial assets, classifed according to Standard & Poor’s counterparty credit ratings. AAA is the highest possible rating. Rated assets falling outside the range of AAA to BBB are classifed as non-investment grade.

LIFE

Credit Rating

Non- Other Investment investment not linked

AAA AA A BBB grade rated business  1 Total $m $m $m $m $m $m $m $m

2011

Cash and cash equivalents 77 150 128 – – – 310 665 Investments 1,823 725 232 27 1 32 615 3,455 Life assets – 6 – – – 647 – 653 Other – – – – – 1 3 4 1,900 881 360 27 1 680 928 4,777

2010

Cash and cash equivalents – 132 99 – – – 344 575 Investments 1,243 624 834 33 7 158 545 3,444 Life assets 15 247 122 – – 212 37 633 Other – 3 8 – – 1 1 13 1,258 1,006 1,063 33 7 371 927 4,665

Note

1 For investment-linked business, the liability to policyowners is linked to the performance and value of the assets that back those liabilities. The shareholder has no direct exposure to any credit risk in those assets.

The following table provides information regarding those Life fnancial assets which have balances which have been impaired or are past due but not impaired at balance date. An amount is considered past due when a contractual payment falls overdue by one or more days. When an amount is classifed as past due, the entire balance is disclosed in the past due analysis below. For investment-linked business, the liability to policyowners is linked to the performance and value of the assets that back those liabilities. The shareholder has no direct exposure to any credit risk in those assets and the table below does not include any fnancial assets backing investment-linked business.

LIFE

Past due but not impaired

Neither past due nor

impaired 0–3 mths 3–6 mths 6–12 mths > 12 mths Impaired Total $m $m $m $m $m $m $m

2011

Premiums outstanding 4 16 – – – – 20 Reinsurance recoveries receivable 62 14 4 3 – – 83 Other receivables 162 4 2 2 3 38 211 228 34 6 5 3 38 314

2010

Premiums outstanding 5 14 – – – – 19 Investment settlements 59 – – – – – 59 Reinsurance recoveries receivable 49 11 4 – 1 – 65 Other receivables 125 3 3 1 3 28 163 238 28 7 1 4 28 306

Life does not expect any counterparties to fail to meet their obligations given their credit ratings and therefore does not require collateral or other security to support credit risk exposures.