MILLIRE_2019_Annual Report

Milli Re Annual Report 2019 132 Millî Reasürans Türk Anonim Şirketi NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2019 (Currency: Turkish Lira (TL)) (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) Credit risk Credit risk is the risk of financial loss to the Company if counterparties (parties issued financial instrument, insurance companies, reinsurance companies and other debtors) having business relationship with the Company fails to meet its contractual obligations. The Company manages this credit risk by regularly assessing reliability of the counterparties. Credit risk is measured by both quantitative and qualitative methods and the weighted reinsurers in retrocession programs, credit ratings of them that indicate their financial strengths and their financial positions are analysed. Doubtful receivables are monitored quarterly. In addition, concentration of the investment portfolio is assessed quarterly. The results evaluated by the Risk Committee and reported regularly to the Board of Directors. Action plan is determined by the Board of Directors in the case of having exposure higher than acceptable level of risk and probability. Net book value of the assets that is exposed to credit risk is shown in the table below. December 31, 2019 December 31, 2018 Cash and cash equivalents (Note 14) (*) 1.754.740.598 1.742.194.280 Financial assets and financial investments with risks on policyholders (Note 11) (**) 442.911.579 109.875.291 Receivables from main operations (Note 12) 343.722.732 300.658.813 Reinsurer share in outstanding claims reserve (Note 10), (Note 17) 90.544.841 48.942.099 Income accruals 12.380.768 9.222.719 Prepaid taxes and funds (Note 12) 6.312.824 - Other receivables (Note 12) 1.746.065 1.696.048 Other current asset (Note 12) 10.000 166.660 Total 2.652.369.407 2.212.755.910 (*) Cash on hands balance amounting to TL 60.119 are not included (December 31, 2018: TL 19.945). (**) Equity shares amounting to TL 77.844.172 are not included (December 31, 2018: TL 50.113.456) December 31, 2019 and 2018, the aging of the receivables from main operations and related provisions are as follows: December 31, 2019 December 31, 2018 Gross amount Provision Gross amount Provision Not past due 233.187.242 - 175.984.193 - Past due 0-30 days 48.817.880 - 67.566.798 - Past due 31-60 days 4.831.298 - 7.185.469 - Past due 61-90 days 3.894.946 - 4.329.297 - More than 90 days 81.629.930 (28.638.564) 70.945.090 (25.352.034) Total 372.361.296 (28.638.564) 326.010.847 (25.352.034)