MILLIRE_2019_Annual Report

Milli Re Annual Report 2019 153 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)) 17 Insurance contract liabilities and reinsurance assets Estimation of the ultimate payment for the outstanding claims is one of the most important accounting assumptions of the Company. Estimation of the insurance contract liabilities contains several ambiguities by nature. The Company makes calculation of the related insurance technical provisions accordance with the Insurance Legislation and reflects them into financial statements as mentioned in Note 2 - Summary of significant accounting policies . As of December 31, 2019 and 2018, technical reserves of the Company are as follows: December 31, 2019 December 31, 2018 Unearned premiums reserve, gross 751.413.623 597.910.179 Unearned premiums reserve, ceded (Note 10) (44.693.136) (18.693.888) Unearned premiums reserve, net 706.720.487 579.216.291 Outstanding claims reserve, gross 1.455.609.062 1.208.024.137 Outstanding claims reserve, ceded (Note 10) (90.544.841) (48.942.099) Outstanding claims reserve, net 1.365.064.221 1.159.082.038 Unexpired risks reserve, gross 24.096.177 3.559.131 Unexpired risks reserve, ceded (Note 10) (571.885) (256.126) Unexpired risks reserve, net 23.524.292 3.303.005 Equalization reserve, net 139.752.880 100.987.550 Mathematical reserves 38.691 73.795 Total technical reserves, net 2.235.100.571 1.842.662.679 Short-term 2.095.347.691 1.741.675.129 Medium and long-term 139.752.880 100.987.550 Total technical reserves, net 2.235.100.571 1.842.662.679