Other financial assets

12 Months Ended

Dec. 31, 2023

16. Other financial assets


	2023 $m		2022 $m

Equity securities		102		103

Restricted funds:

Ring-fenced amounts to satisfy insurance claims:

Cash		2		2

Money market funds		14		3

Bank accounts pledged as security		32		39

Other		2		1

		50		45

Trade deposits and loans		40		8

		192		156

Analysed as:

Current		7		–

Non-current		185		156

		192		156

Equity securities

The methodology to calculate fair value and the sensitivities to the relevant significant unobservable inputs are detailed in note 25.

The most significant investments are as follows:


	2023				2022
	Fair value $m		Dividend income $m		Fair value $m		Dividend income $m

Investment in entity which owns:

InterContinental The Willard Washington DC		27		1		27		–

InterContinental Grand Stanford Hong Kong		37		–		35		–

Restricted funds

Amounts ring-fenced to satisfy insurance claims are principally held in the Group’s Captive, which is a regulated entity.

The bank accounts pledged as security are subject to a charge in favour of the members of the UK unfunded pension arrangement (see note 27). The amounts pledged as security were reduced in the year with the trustees’ agreement, based on updated actuarial valuations. The bank accounts will continue to be pledged as security until the date at which the UK unfunded pension liabilities have been fully discharged, unless otherwise agreed with the trustees and amounts pledged may change in future years.

Expected credit losses

Other financial assets with a net value of $68m (2022: $50m) are subject to the expected credit loss model requirements of IFRS 9. Equity securities, money market funds and other amounts measured at fair value are excluded. The gross value of trade deposits and loans that were subject to the expected credit loss requirements is $40m with credit loss allowances of $9m (2022: $20m gross, $12m allowance). Other expected credit losses are considered to be immaterial.

Credit risk

Restricted funds are held with bank counterparties which are rated at least A+ based on S&P’s ratings.

The maximum exposure to credit risk of other financial assets at the end of the reporting period by geographic region is as follows:


	2023 $m		2022 $m

Americas		99		54

EMEAA		56		62

Greater China		37		40

		192		156