Assets And Policyholder Liabilities Under Insurance And Investment Contracts

12 Months Ended

Jun. 30, 2024

Assets And Policyholder Liabilities Under Insurance And Investment Contracts [Abstract]

Assets And Policyholder Liabilities Under Insurance And Investment Contracts

11. 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 years

ended June 30, 2024 and 2023:

Reinsurance

Assets

(1)

Insurance

contracts

(2)

Balance as of July 1, 2022

$

1,424

$

(1,955)

Increase in policy holder benefits under insurance contracts 

785

(5,833)

Claims and policyholders’ benefits under insurance contracts

(986)

5,928

Foreign currency adjustment

(3)

(183)

260

Balance as of June 30, 2023

1,040

(1,600)

Increase in policy holder benefits under insurance contracts 

844

(7,610)

Claims and policyholders’ benefits under insurance contracts

(464)

7,043

Foreign currency adjustment

(3)

49

(74)

Balance as of June 30, 2024

$

1,469

$

(2,241)

(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).

Assets and policyholder liabilities under investment contracts

Summarized below is the movement in assets and policyholder liabilities under investment contracts during the years ended June

30, 2024 and 2023:

Assets

(1)

Investment

contracts

(2)

Balance as of July 1, 2022

$

371

$

(349)

Increase in policy holder benefits under investment contracts 

6

(6)

Claims and decrease in policyholders’ benefits under investment contracts 

(69)

69

Foreign currency adjustment

(3)

(51)

45

Balance as of June 30, 2023

257

(241)

Increase in policy holder benefits under investment contracts 

4

(4)

Claims and decrease in policyholders’ benefits under investment contracts 

(44)

44

Foreign currency adjustment

(3)

(1)

(15)

Balance as of June 30, 2024

$

216

$

(216)

(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.