MILLIRE_2019_Annual Report

Milli Re Annual Report 2019 135 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 Carrying amount Up to 1 month 1 to 3 months 3 to 6 months 6 to 12 months 1 year and up Unallocated Cash and cash equivalents 1.742.214.225 1.062.334.568 568.874.461 32.667.559 78.337.637 - - Financial assets (*) 109.875.291 109.875.291 - - - - - Receivables from main operations 300.658.813 154.061.872 17.567.782 4.224.997 80.522.343 44.281.819 - Other receivables and current assets 11.085.427 10.562.675 - - 522.752 - - Total monetary assets 2.163.833.756 1.336.834.406 586.442.243 36.892.556 159.382.732 44.281.819 - Financial liabilities and other liabilities 2.054.267 2.054.267 - - - - Payables arising from main operations 63.770.094 54.959.881 1.532.162 1.256.141 3.324.151 2.697.759 - Due to related parties 109.359 109.359 - - - - Insurance technical reserves (**) 1.159.082.038 - - - - 1.159.082.038 Provisions for taxes and other similar obligations 5.707.038 5.707.038 - - - - Provisions for other risks and expense accruals 59.763.498 2.423.719 3.378.675 - 53.961.104 Total monetary liabilities 1.290.486.294 65.254.264 4.910.837 1.256.141 3.324.151 2.697.759 1.213.043.142 (*) Equity shares amounting to TL 50.113.456 are not included. (**) Net of outstanding claims reserve not subject to consistent distribution is presented in the “unallocated” column. Market risk Market risk is the risk that changes in market prices, such as interest rate, foreign exchange rates and credit spreads will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return on risk. Foreign currency risk The Company is exposed to foreign currency risk through insurance and reinsurance transactions in foreign currencies. Foreign exchange gains and losses arising from foreign currency transactions are recorded at transaction dates. At the end of the reporting periods, foreign currency assets and liabilities evaluated by the Central Bank of Republic of Turkey’s spot purchase rates and the differences arising from foreign currency rates are recorded as foreign exchange gain or loss in the statement of income.