Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts

12 Months Ended

Jun. 30, 2016

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

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, 2016 and 2015:

		Assets(1)			Investment contracts(2)
Balances acquired on July 1, 2014	$	688		$	(688	)
Foreign currency adjustment(3)		(95	)		95
Balance as of June 30, 2015	$	593		$	(593	)
Increase in policy holder benefits under investment contracts		35			(35	)
Foreign currency adjustment(3)		(100	)		100
Balance as of June 30, 2016	$	528		$	(528	)

(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.

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, 2016 and 2015:

		Reinsurance			Insurance
		assets(1)			contracts(2)
Balances acquired on July 1, 2014	$	21,062		$	(21,478	)
Claims and policyholders' benefits under insurance contracts		30			(55	)
Transfer to reinsurer(3)		(18,000	)		18,000
Foreign currency adjustment(4)		(2,909	)		2,966
Balance as of June 30, 2015		183			(567	)
Increase in policy holder benefits under insurance contracts		463			(1,408	)
Claims and policyholders' benefits under insurance contracts		(444	)		801
Foreign currency adjustment(4)		(31	)		96
Balance as of June 30, 2016	$	171		$	(1,078	)

(1) Included in other long-term assets;

(2) Included in other long-term liabilities;

(3) 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.

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

    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.