MILLIRE_2019_Annual Report

Milli Re Annual Report 2019 150 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) As of December 31, 2019, the issued share capital of the Company is TL 660.000.000 (December 31, 2018: TL 660.000.000) and the share capital of the Company consists of 66.000.000.000 (December 31, 2018: 66.000.000.000 shares) issued shares with TL 0,01 nominal value each. There are no privileges over the shares of the Company. There are not any treasury shares held by the Company itself or by its subsidiaries or associates. There are not any treasury shares issued which will be subject to sale in accordance with forward transactions and contracts. Legal reserves The legal reserves consist of first and second legal reserves in accordance with the Turkish Commercial Code. The first legal reserve is appropriated out of the statutory profits at the rate of 5%, until the total reserve reaches a maximum of 20% of the entity’s share capital. The second legal reserve is appropriated at the rate of 10% of all distributions in excess of 5% of the entity’s share capital. The first and second legal reserves are not available for distribution unless they exceed 50% of the share capital, but may be used to absorb losses in the event that the general reserve is exhausted. The movements of legal reserves are as follows: December 31, 2019 December 31, 2018 Legal reserves at the beginning of the period 123.041.466 104.684.305 Transfer from profit 17.117.473 7.291.447 Accounted according to the equity method 15.775.032 11.065.714 Legal reserves at the end of the period 155.933.971 123.041.466 As of December 31, 2019 and December 31, 2018, “Other Reserves and Retained Earnings” includes extraordinary reserves, gains to be added to equity and buildings for own use revaluation differences and other profit reserves. Extraordinary reserves The movement of extraordinary reserves is as follows: December 31, 2019 December 31, 2018 Extraordinary reserves at the beginning of the period 284.629.561 179.927.411 Transfer from profit 201.095.939 46.420.386 Accounted according to the equity method 102.879.763 58.281.764 Extraordinary reserves at the end of the period 588.605.263 284.629.561 Other profit reserves According to revision on TAS 19, actuarial profit and losses that recognized in income statement in termination indemnity calculation before, is recognized in “Other Profit Reserves” account under equity in current period financial statements. The amount of TL (2.758.065), (December 31, 2018 TL (2.073.808 TL)) regarding actuarial calculation is presented in other profit reserves account, in calculation of termination indemnity as of December 31, 2019.