MILLIRE_2019_Annual Report

Milli Re Annual Report 2019 140 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) Gain and losses from financial assets Gains and losses recognized in the statement of income, net: December 31, 2019 December 31, 2018 Gains transferred from the statement of equity to the statement of income on disposal of available for sale financial assets ( Note 15) 1.902.905 20.482.905 Interest income from bank deposits 255.763.639 209.673.361 Interest income from debt securities classified as available-for-sale financial assets 25.390.236 1.846.363 Income from equity shares 48.591 9.546.226 Foreign exchange gains 61.769.977 139.716.863 Income from investment funds 8.234.701 29.276.621 Interest income from repos 53.026 613.305 Income from derivative products 18.985 - Income from subsidiaries 216.410.793 157.046.405 Income from affiliates 44.942.194 31.731.033 Investment income 614.535.047 599.933.082 Foreign exchange losses (31.632.288) (57.759.377) Loss from disposal of financial assets (1.345.499) (11.907.041) Investment management expenses (including interest) (44.377) (511.981) Investment expenses (33.022.164) (70.178.399) Investment income, net 581.512.883 529.754.683 Gains and losses recognized in the statement of equity, net: December 31, 2019 December 31, 2018 Fair value changes in available for sale financial assets (Note 15) 139.770.632 (70.821.824) Gains transferred from the statement of equity to the statement of income on disposal of available for sale financial assets ( Note 15) (1.902.905) (20.482.905) Total 137.867.727 (91.304.729) Capital management The Company’s capital management policies include the following: - To comply with the insurance capital requirements required by Republic of Turkey Ministry of Treasury and Finance - To safeguard the Company’s ability to continue as a going concern In accordance with the “Communiqué on Measurement and Assessment of Capital Adequacy for Insurance, Reinsurance and Individual Pension Companies” issued by Republic of Turkey Ministry of Treasury and Finance on August 23, 2015 dated and 29454 numbered; the Company measured its minimum capital requirement as TL 581.406.867 (December 31, 2018: TL 467.082.690) as of December 31, 2019. As of December 31, 2019 and 2018, the capital amount of the Company presented in the unconsolidated financial statements are TL 2.135.840.889 and TL 1.736.300.262 respectively and capital surplus of the Company is amounting to TL 1.403.336.796 (December 31, 2018: TL 1.079.355.016) according to the communiqué. 5 Segment Information A segment is a distinguishable component of the Company that is engaged either in providing products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments.