2022 AVBOB Integrated Annual Report - FINANCIALS

CHAPTER 8 | FINANCIAL STATEMENTS 112 INTEGRATED ANNUAL REPORT 2022 112 AVBOB MUTUAL ASSURANCE SOCIETY AND ITS SUBSIDIARIES NOTES TO THE SUMMARISED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 (continued) 5. Management of insurance and financial risk (continued) 5.3 Fair value hierarchy (continued) Property* Total R 000 R 000 At 30 June 2022 Opening value at beginning of the year 529 889 480 692 479 000 1 489 581 Additions 42 012 146 505 - 188 517 Sales - ( 38 116) - ( 38 116) Depreciation ( 4 093) - - ( 4 093) Fair value gains/(losses) through profit and loss 11 658 ( 17 337) 36 000 30 321 Closing value at the end of the year 579 466 571 744 515 000 1 666 210 At 30 June 2021 Opening value at beginning of the year 514 681 306 486 370 000 1 191 167 Additions 38 454 179 249 - 217 703 Sales ( 1 418) - - ( 1 418) Depreciation ( 3 898) - - ( 3 898) Fair value (losses)/gains through profit and loss ( 17 930) ( 5 043) 109 000 86 027 Closing value at the end of the year 529 889 480 692 479 000 1 489 581 * Property consist of owner-occupied property and investment property. SOCIETY GROUP 2022 2021 2022 2021 R 000 R 000 R 000 R 000 6. PREMIUM REVENUE Long-term insurance contracts and investment contracts with discretionary participation features 5 440 351 4 912 980 5 440 351 4 912 980 Group scheme contracts 299 147 282 004 299 147 282 004 Gross insurance premium revenue 5 739 498 5 194 984 5 739 498 5 194 984 Reinsurance premiums paid Individual premiums ( 1 956) ( 1 957) ( 1 956) ( 1 957) TOTAL 5 737 542 5 193 027 5 737 542 5 193 027 The movement in unlisted investments included under Level 3, that are measured using a discounted cash flow model, are as follows: The Society invested in unlisted investments in respect of renewable energy infrastructure. The fair value of these investments is determined using a discounted cash flow valuation methodology using appropriate risk adjusted cost of capital, taking the various projects' stages of construction completion and the achievement of commercial operations into consideration. The most significant impact on the fair value of the Group's investment in a renewable energy infrastructure partnership is the operational performance of the respective renewable energy plants the partnership has invested in. investments investments Unlisted R 000 Subsidiary R 000