MILLIRE_2019_Annual Report

Milli Re Annual Report 2019 161 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)) 29 Insurance rights and claims December 31, 2019 December 31, 2018 Life Non-Life Life Non-Life Claims paid, net off reinsurers’ share (5.425.658) (943.198.053) (5.968.908) (725.361.560) Changes in outstanding claims reserve, net off reinsurers’ share (116.156) (205.866.027) 361.110 (228.517.453) Changes in unearned premiums reserve, net off reinsurers’ share 701.958 (127.117.873) (2.715.933) (123.298.148) Changes in unexpired risks reserve, net off reinsurers’ share - (20.221.287) - 2.531.048 Change in equalization reserve, net off reinsurers’ share (186.425) (38.578.905) (228.499) (29.825.822) Change in life mathematical reserves, net off reinsurers’ share 35.104 - 42.314 - Total (4.991.177) (1.334.982.145) (8.509.916) (1.104.471.935) 30 Investment contract benefits None. 31 Other expenses The allocation of the expenses with respect to their nature or function is presented in Note 32 - Expenses by nature below. 32 Operating expenses As of December 31, 2019 and 2018, the operating expenses are disclosed as follows: December 31, 2019 December 31, 2018 Life Non-Life Life Non-Life Commission expenses (Note 17) 9.867.612 345.377.032 6.404.104 277.545.222 Commissions to the intermediaries accrued during the period (Note 17) 10.073.409 384.781.658 7.101.817 309.672.092 Changes in deferred commission expenses (Note 17) (205.797) (39.404.626) (697.713) (32.126.870) Employee benefit expenses (Note 33) 727.446 58.694.997 786.531 51.527.690 Foreign exchange losses 84.022 30.104.524 117.919 70.362.562 Administration expenses 184.804 14.935.415 226.149 15.706.760 Commission income from reinsurers (Note 10) - (2.530.945) - (2.084.256) Commission income from reinsurers accrued during the period (Note 10) - (2.791.117) - (2.228.392) Change in deferred commission income (Note 10) - 260.172 - 144.136 Outsourced benefits and services 45.015 3.147.512 20.622 1.144.486 Other 24.363 14.779.995 24.982 11.222.083 Total 10.933.262 464.508.530 7.580.307 425.424.547