XML 25 R14.htm IDEA: XBRL DOCUMENT v3.20.2
Assets And Policyholder Liabilities Under Insurance And Investment Contracts
 3 Months Ended
Sep. 30, 2020
Assets And Policyholder Liabilities Under Insurance And Investment Contracts [Abstract]  
Assets And Policyholder Liabilities Under Insurance And Investment Contracts

7.Assets and policyholder liabilities under insurance and investment contracts

 

Reinsurance assets and policyholder liabilities under insurance contracts

 

Summarized below is the movement in reinsurance assets and policyholder liabilities under insurance contracts during the three months ended September 30, 2020:

 

 

 

 

 

 

Reinsurance Assets(1)

 

 

Insurance contracts(2)

 

 

Balance as of June 30, 2020

$

1,006

 

$

(1,370)

 

 

 

Increase in policy holder benefits under insurance contracts

 

126

 

 

1,788

 

 

 

Claims and policyholders’ benefits under insurance contracts

 

(128)

 

 

(1,785)

 

 

 

Foreign currency adjustment(3)

 

29

 

 

(40)

 

 

 

 

Balance as of September 30, 2020

$

1,033

 

$

(1,407)

 

(1) Included in other long-term assets (refer to Note 5);

(2) Included in other long-term liabilities;

(3) Represents the effects of the fluctuations of the ZAR against the U.S. dollar.

 

The Company has agreements with reinsurance companies in order to limit its losses from various 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 the best estimate 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 claim reporting delays (based on average industry experience).

 

Assets and policyholder liabilities under investment contracts

 

Summarized below is the movement in assets and policyholder liabilities under investment contracts during the three months ended September 30, 2020:

 

 

 

 

 

Assets(1)

 

Investment contracts(2)

 

 

Balance as of June 30, 2020

$

490

 

$

(490)

 

 

 

Increase in policy holder benefits under investment contracts

 

6

 

 

(6)

 

 

 

Foreign currency adjustment (3)

 

15

 

 

(15)

 

 

 

 

Balance as of September 30, 2020

$

511

 

$

(511)

 

 

 

 

 

 

 

 

 

 

 

 

(1) Included in other long-term assets (refer to Note 5);

(2) Included in other long-term liabilities;

(3) Represents the effects of the fluctuations of the ZAR against the U.S. dollar.

 

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