MILLIRE_2019_Annual Report

Milli Re Annual Report 2019 156 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) Profit share distribution rate of life insurances None. Deferred commission expenses The Company capitalizes commissions paid to the intermediaries related to policy production under short-term and long-term prepaid expenses. As of December 31, 2019, short-term deferred expenses amounting to TL 186.668.623 (December 31, 2018: TL 147.058.200) totally consist of deferred commission expenses. As of December 31, 2019 and 2018, the movement of deferred commission expenses is presented below: December 31, 2019 December 31, 2018 Deferred commission expenses at the beginning of the period 147.058.200 114.233.617 Commissions accrued during the period (Note 32) 394.855.067 316.773.909 Commissions expensed during the period (Note 32) (355.244.644) (283.949.326) Deferred commission expenses at the end of the period 186.668.623 147.058.200 18 Investment contract liabilities None. 19 Trade and other payables and deferred income December 31, 2019 December 31, 2018 Financial Liabilities 1.392.078 - Payables from reinsurance operations 61.264.524 63.770.094 Short/long term deferred income and expense accruals 7.246.691 6.829.179 Taxes and other liabilities and similar obligations 2.273.036 5.707.038 Due to related parties (Note 45) 141.374 109.359 Other payables 2.411.894 2.054.267 Total 74.729.597 78.469.937 Short-term liabilities 69.707.056 75.739.678 Medium and long-term liabilities 5.022.541 2.730.259 Total 74.729.597 78.469.937 As of December 31, 2019 and 2018, other payables largely consist of outsourced benefits and services. Short/long term deferred income and expense accruals include deferred commission income (Note 10) amounting to TL 1.018.666 TL (December 31, 2018: TL 754.494). As of December 31, 2019, the amounting of the expense accruals TL 6.070.508 (December 31, 2018: TL 5.802.394) are detailed in the table below. December 31, 2019 December 31, 2018 Dividend accrual 3.939.929 3.378.675 Other accruals 2.130.579 2.423.719 Total 6.070.508 5.802.394 Prepaid income and expense accruals are TL 157.517 (December 31, 2018: TL 268.291) consist of long-term and short term other deferred income.