2022 AVBOB Integrated Annual Report - FINANCIALS

CHAPTER 8 | FINANCIAL STATEMENTS 118 INTEGRATED ANNUAL REPORT 2022 AVBOB MUTUAL ASSURANCE SOCIETY AND ITS SUBSIDIARIES NOTES TO THE SUMMARISED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 (continued) SOCIETY GROUP 2022 2021 2022 2021 R 000 R 000 R 000 R 000 15. POLICYHOLDER LIABILITIES Balance at the beginning of the year 15 855 133 12 224 206 15 855 133 12 224 206 Realisation of depreciation on revaluation 3 040 2 844 101 3 381 Transfer to/(from) revaluation reserves 11 943 1 014 18 025 ( 14 688) Centenary expenses ( 11 418) ( 49 301) ( 11 418) ( 49 301) Reinsurance asset ( 5 889) 6 675 ( 5 889) 6 675 Transfer from statements of comprehensive income 2 303 696 3 669 695 2 300 553 3 684 860 Ad-hoc benefit improvements 3 100 083 2 630 790 3 100 083 2 630 790 Balances in respect of new business ( 811 393) ( 258 079) ( 811 393) ( 258 079) Change in valuation assumptions 430 912 220 083 430 912 220 083 Model improvements 93 789 42 523 93 789 42 523 Investment returns 1 470 364 1 418 008 1 470 364 1 418 008 Other (1 980 059) ( 383 630) (1 983 202) ( 368 465) Balance at the end of the year 18 156 505 15 855 133 18 156 505 15 855 133 Non-current liabilities 17 320 702 15 138 825 17 320 702 15 138 825 Current liability 835 803 716 308 835 803 716 308 Not with-profit contracts 13 435 320 11 341 128 13 435 320 11 341 128 With-profit contracts 4 281 257 4 068 538 4 281 257 4 068 538 Group schemes 21 554 23 132 21 554 23 132 Insurance contracts 17 738 131 15 432 798 17 738 131 15 432 798 Investment contracts with discretionary participation features (DPF) 418 374 422 335 418 374 422 335 18 156 505 15 855 133 18 156 505 15 855 133 TRUE TRUE TRUE TRUE Net future cash outflows: Not longer than a year 835 803 716 308 835 803 716 308 Between 2 and 5 years 1 953 783 1 687 139 1 953 783 1 687 139 Between 6 and 10 years 5 856 476 5 075 600 5 856 476 5 075 600 Longer than 10 years 58 760 084 45 603 308 58 760 084 45 603 308 Discounting of future cash flows (49 249 641) (37 227 222) (49 249 641) (37 227 222) 18 156 505 15 855 133 18 156 505 15 855 133 The amounts in the net future cash outflows summarise the expected cash flows allowing for premium receipts, claim payments and policyholder behaviour consistent with the valuation methodology. All the cash flows are gross of reinsurance. The cash flows are not discounted and the effect of discounting is shown to reconcile to total policyholder liabilities. The current liability is the estimate of the benefits payable to policyholders within the next twelve months. The policyholder liability comprises of: