11. 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, 2018 and 2017:

		Reinsurance			Insurance
		assets⁽¹⁾			contracts⁽²⁾
Balance as of July 1, 2016	$	171		$	(1,078	)
Increase in policy holder benefits under insurance contracts		262			(4,481	)
Claims and policyholders' benefits under insurance contracts		(265	)		4,091
Foreign currency adjustment⁽³⁾		23			(143	)
Balance as of June 30, 2017		191			(1,611	)
Increase in policy holder benefits under insurance contracts		1,899			(9,714	)
Claims and policyholders' benefits under insurance contracts		(1,449	)		9,214
Foreign currency adjustment⁽³⁾		(8	)		79
Balance as of June 30, 2018	$	633		$	(2,032	)

(1) Included in other long-term assets; (refer to Note 9);

(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 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 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).

Summarized below is the movement in assets and policy holder liabilities under investment contracts during the years ended June 30, 2018 and 2017:

					Investment
		Assets⁽¹⁾			contracts⁽²⁾
Balance as of July 1, 2016	$	528		$	(528	)
Increase in policyholder benefits under insurance contracts		40			(40	)
Claims and policyholders' benefits under insurance contracts		(11	)		11
Foreign currency adjustment⁽³⁾		70			(70	)
Balance as of June 30, 2017		627			(627	)
Increase in policyholder benefits under insurance contracts		13			(13	)
Foreign currency adjustment⁽³⁾		(30	)		30
Balance as of June 30, 2018	$	610		$	(610	)

(1) Included in other long-term assets; (refer to Note 9);

(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.