MILLIRE_2019_Annual Report

Milli Re Annual Report 2019 71 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 The Company’s financial investments are made in accordance with the Asset Investment Guidelines formulated under the provisions of the “Regulation Amending the Regulation on the Financial Structures of Insurance, Reinsurance and Pension Companies” published in the Official Gazette issue 27877 dated 17 March 2011. The Company prefers to invest in liquid instruments with high yield and minimum risk, while part of the portfolio is managed by İş Portföy Yönetimi A.Ş. (İş Asset Management). The Company’s financial results are presented in detail below. Investment Income Considerable increase was recorded in the interest income due to high current interest rates for deposit on our investment portfolio predominantly consisting of time deposits during the reporting period. There has also been a rise in income from the financial investment as a result of increased return from coupon payments and redemption of corporate and government bonds. Due to the absence of income generated from investment fund sales which existed during the previous period, there has been a reduction in the income from disposal of financial assets. The decrease in valuation of financial assets was mainly caused by the revaluation of time deposits. Compared to the same period of the previous year, due to the lower increase in rates of exchange during the reporting period there has been a limited income from evaluation transactions of Company’s foreign currency assets which reflected as reduction in foreign exchange gains. In 2019, subsidiaries of the Company Anadolu Anonim Türk Sigorta Şirketi and Miltaş Turizm İnşaat Ticaret A.Ş. are accounted in line with equity method and accordingly, owing to the profit of these companies, income from affiliates and income from subsidiaries and joint ventures increased. Income related to Property, Plant and Equipment rose as a result of increased rental income. (TL) 2019 2018 Change (%) Investment Income 661,184,678 644,537,098 2.58 Income from Financial Assets 288,894,987 214,039,085 34.97 Income from Disposal of Financial Assets 10,190,719 50,373,242 (79.77) Valuation of Financial Assets (7,692,608) 7,026,454 (209.48) Foreign Exchange Gains 61,769,977 139,716,863 (55.79) Income from Subsidiaries 44,942,194 31,731,033 41.63 Income from Subsidiaries and Joint Ventures 216,410,793 157,046,405 37.80 Income from Property Plant and Equipment 46,591,631 44,371,016 5.00 Income from Derivative Transactions 18,985 - - Other Investments 58,000 233,000 (75.11) 2019 FINANCIAL RESULTS