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Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts
 12 Months Ended
Jun. 30, 2015
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts [Abstract]  
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts

10. REINSURANCE ASSETS AND POLICY HOLDER LIABILITIES UNDER INSURANCE AND INVESTMENT CONTRACTS

Reinsurance assets and policy holder liabilities under insurance contracts

     Summarized below is the movement in reinsurance assets and policy holder liabilities under insurance contracts during the years ended June 30, 2015 and 2014:

  Reinsurance     Insurance  
    assets (1)     contracts (2)  
Balances acquired on July 1, 2013 $ 19,557   $ (19,711 )
Claims and policyholders' benefits under insurance contracts   2,790     (3,063 )
Foreign currency adjustment (3)   (1,285 )   1,296  
Balance as of June 30, 2014   21,062     (21,478 )
Claims and policyholders' benefits under insurance contracts   30     (55 )
Transfer to reinsurer(4)   (18,000 )   18,000  
Foreign currency adjustment (3)   (2,909 )   2,966  
Balance as of June 30, 2015 $ 183   $ (567 )

(1) Included in other long-term assets;

(2) Included in other long-term liabilities;

(3) The foreign currency adjustment represents the effects of the fluctuations between the ZAR against the U.S. dollar.

(4) Smart Life has agreed to transfer certain fully reinsured policies to the reinsurer pursuant to conditions imposed by the South African Financial Service Board to uplift the suspension of its life insurance license.

     The Company has agreements with reinsurance companies in order to limit its losses from large insurance contracts, however, if the reinsurer is unable to meet its obligations, the Company retains the liability.

     The value of insurance contract liabilities is based on best estimates assumptions of future experience plus prescribed margins, as required in the markets in which these products are offered, namely South Africa. The process of deriving the best estimates assumptions plus prescribed margins includes assumptions related to future mortality and morbidity (an appropriate base table of standard mortality is chosen depending on the type of contract and class of business), withdrawals (based on recent withdrawal investigations and expected future trends), investment returns (based on government treasury rates adjusted by an applicable margin), expense inflation (based on a 10-year real return on CPI-linked government bonds from the risk-free rate and adding an allowance for salary inflation and book shrinkage of 1% per annum) and claim reporting delays (based on average industry experience).

Assets and policy holder liabilities under investment contracts

     Summarized below is the movement in assets and policy holder liabilities under investment contracts during the years ended June 30, 2015 and 2014:

          Investment  
    Assets (1)     contracts (2)  
Balances acquired on July 1, 2013 $ 953   $ (953 )
Maturity claims under investment contracts   (202 )   202  
Foreign currency adjustment (3)   (63 )   63  
Balance as of June 30, 2014   688     (688 )
Foreign currency adjustment (3)   (95 )   95  
Balance as of June 30, 2015 $ 593   $ (593 )

 

(1) Included in other long-term assets;

(2) Included in other long-term liabilities;

(3) The foreign currency adjustment represents the effects of the fluctuations between the ZAR against the U.S. dollar.

The Company does not offer any investment products with guarantees related to capital or returns.