MILLIRE_2019_Annual Report

206 Milli Re Annual Report 2019 Millî Reasürans Türk Anonim Şirketi NOTES TO THE CONSOLIDATED 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) For the years ended December 31, 2019 and 2018, salvage and subrogation collected are as follows: December 31, 2019 December 31, 2018 Land Vehicles 488.773.672 423.241.868 Land Vehicless Liability 9.773.051 17.588.788 Fire and Natural Disasters 3.697.414 5.764.609 Marine 1.046.428 1.825.561 General Damages 592.116 539.786 General Liability 59.570 522.635 Sea Vehicles 22.492 1.708.765 Casualty 1.725 29.510 Credit - 43.431 Total 503.966.468 451.264.953 As of December 31, 2019 and 2018, accrued subrogation and salvage income per branches is as follows: December 31, 2019 December 31, 2018 Land Vehicles 36.130.567 37.986.441 Land Vehicles Liability 16.014.366 14.347.839 Fire and Natural Disasters 7.752.757 4.819.028 General Damages 824.538 1.052.905 Marine 705.698 1.546.994 Casualty 232.701 232.209 Sea Vehicles 131.857 34.817 General Liability 55.524 - Total 61.848.008 60.020.233 Commission income and expenses As further disclosed in Note 2.24 - Reserve for unearned premiums , commissions paid to the insurance and reinsurance companies as a reinsurance company and the commissions received from the reinsurance companies are recognized over the life of the contract by deferring commission income and expenses within the calculation of reserve for unearned premiums for the policies produced before January 1, 2008 and recognizing deferred commission income and deferred commission expense in the financial statements for the policies produced after January 1, 2008. Interest income and expenses Interest income and expense are recognized using the effective interest method. The effective interest rate is the rate that exactly discounts the estimated future cash payments and receipts through the expected life of the financial asset or liability (or, where appropriate, a shorter period) to the carrying amount of the financial asset or liability. The effective interest rate is established on initial recognition of the financial asset and liability and is not revised subsequently. The calculation of the effective interest rate includes all fees and points paid or received transaction costs, and discounts or premiums that are an integral part of the effective interest rate. Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial asset or liability except for the financial assets at fair value through profit or loss.