AVBOB Financial Statements 2018

102 AVBOB MUTUAL ASSURANCE SOCIETY AND ITS SUBSIDIARIES NOTES TO THE SUMMARISED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (continued) 5. Management of insurance and financial risk (continued) 5.3 Fair value hierarchy (continued) Unlisted Subsidiary Total investments investments R 000 R 000 R 000 At 30 June 2017 Opening value at beginning of the year 224 427 186 000 410 427 Additions 28 823 - 28 823 Fair value (losses)/gains through profit and loss ( 549) 49 600 49 051 Closing value at the end of the year 252 701 235 600 488 301 At 30 June 2018 Opening value at beginning of the year 252 701 235 600 488 301 Additions 8 226 - 8 226 Fair value gains through profit and loss 34 244 37 400 71 644 Closing value at the end of the year 295 171 273 000 568 171 SOCIETY GROUP 2018 2017 2018 2017 R 000 R 000 R 000 R 000 6. PREMIUM REVENUE Long-term insurance contracts and investment contracts with discretionary participation features 3 438 115 2 969 668 3 438 115 2 969 668 Group scheme contracts 197 507 162 592 197 507 162 592 Gross insurance premium revenue 3 635 622 3 132 260 3 635 622 3 132 260 Reinsurance premiums paid Individual premiums ( 1 949) ( 1 959) ( 1 949) ( 1 959) TOTAL 3 633 673 3 130 301 3 633 673 3 130 301 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. The movement in unlisted investments included under Level 3, that are measured using a discounted cash flow model, are as follows: 102