Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts

3 Months Ended

Sep. 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

7. 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 three months ended September 30, 2016:

		Reinsurance			Insurance
		assets(1)			contracts(2)
Balance as of June 30, 2016	$	171		$	(1,078	)
Increase in policy holder benefits under insurance contracts		231			(754	)
Claims and policyholders' benefits under insurance contracts		(229	)		682
Foreign currency adjustment(3)		12			(71	)
Balance as of September 30, 2016	$	185		$	(1,221	)

     (1) Included in other long-term assets.

     (2) Included in other long-term liabilities.

     (3) 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.

     The Company determines its reserves for future policy benefits under its life insurance products using a model which estimates claims incurred that have not been reported at the balance sheet date. This model includes best estimate assumptions of experience plus prescribed margins, as required in the markets in which these products are offered, namely South Africa. The best estimate assumptions include those assumptions related to mortality, morbidity and claim reporting delays, and the main assumptions used to calculate the reserve for future policy benefits include (i) mortality and morbidity assumptions reflecting the Company's most recent experience and (ii) claim reporting delays reflecting Company specific and 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 three months ended September 30, 2016:

				Investment
		Assets(1)		contracts(2)
Balance as of June 30, 2016	$	528	$	(528	)
Foreign currency adjustment(3)		35		(35	)
Balance as of September 30, 2016	$	563	$	(563	)

(1) Included in other long-term assets.

     (2) Included in other long-term liabilities.

     (3) 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.