MILLIRE_2019_Annual Report

Milli Re Annual Report 2019 131 Activities and Major Developments Related to Activities Financial Status Risks and Assessment of the Governing Body Unconsolidated Financial Statements Together with Independent Auditors’ Report Thereon Consolidated Financial Statements Together with Independent Auditors’ Report Thereon General Information Financial Rights Provided to the Members of the Governing Body and Senior Executives Research & Development Activities Millî Reasürans Türk Anonim Şirketi NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2019 (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) (Currency: Turkish Lira (TL)) December 31, 2018 Branches Gross total claims liability (*) Reinsurance share of total claims liability Net total claims liability Fire and natural disasters 353.012.333 (18.286.412) 334.725.921 General Damages 200.443.380 (1.846.348) 198.597.032 Land vehicles liability (MTPL) 57.945.642 (93.924) 57.851.718 General liabilities 39.721.164 (6.326.317) 33.394.847 Sea Vehicles 27.673.744 (2.473.593) 25.200.151 Marine 26.701.708 (4.124.212) 22.577.496 Land vehicles 23.653.534 (350.208) 23.303.326 Casualty 23.022.278 (492.327) 22.529.951 Life 6.619.434 (650.526) 5.968.908 Health 5.380.428 - 5.380.428 Fidelity Guarantees 700.880 (10) 700.870 Financial losses 528.783 - 528.783 Air Vehicless 380.319 - 380.319 Sea Vehicles Liability 128.186 - 128.186 Credit 62.076 - 62.076 Legal protection 456 - 456 Total 765.974.345 (34.643.877) 731.330.468 (*) Total claims liability includes outstanding claims reserve (paid). Effects of the changes in assumptions used in the measurement of insurance assets and liabilities showing the effect of each change separately that has significant effect on financial statements In the current year, there are no material changes in the assumptions of measurement of insurance assets and liabilities. 4.2 Management of financial risk Introduction and overview This note presents information about the Company’s exposure to each of the below risks, the Company’s objectives, policies and processes for measuring and managing risk, and the Company’s management of capital. The Company has exposure to the following risks from its use of financial instruments: - credit risk - liquidity risk - market risk The Company is subject to credit risk, market risk (foreign currency risk, interest rate risk and price risk in relation with financial investments) and liquidity risk due to assets and liabilities. The Company’s exposure to each of the above risks is assessed according to “Application Principles in Respect of Risk Limits”. The Company monitors its receivables by obtaining comprehensive information about the debtors and debtors’ activities. The risk over investment portfolio is managed by measuring and reporting the market risk daily, reassessing the results validity and applying different scenario analyses. The Company’s exposure to each of the above risks is measured by Internal Control and Risk Management Service independently, reported to Board of Directors and units of İş Bankası through the Risk Committee.