MILLIRE_2019_Annual Report

Milli Re Annual Report 2019 72 2019 FINANCIAL RESULTS Investment Expenses There was a decrease in Investment Management Expenses as a result of our Singapore Branch Office’s investment portfolio not having any time deposits in Turkey during the reporting period. The amount accounted under this item reflects interest expenses calculated as per IFRS 16. Loss from Disposal of Financial Assets decreased due to the absence during the current period of losses resulting from the sale of government bonds, which was accounted during the previous period as well as the preference of fixed income security dominant funds rather than equity dominant funds as it was during the previous year as part of the investment funds portfolio. Due to the movements in rates of exchange, foreign exchange losses decreased. Further to the expenditure calculated in accordance with the increase in the income subject to expenditure tax, other investment expenses increased. (TL) 2019 2018 Değişim (%) Investment Expenses (403,360,732) (425,812,893) (5.27) Investment Management Expenses - (Incl. Interest) (44,377) (511,981) (91.33) Loss from Disposal of Financial Assets (1,345,499) (11,907,041) (88.70) Investment Income Transferred to Non-life Technical Account (348,001,715) (338,043,300) 2,95 Foreign Exchange Losses (31,632,288) (57,759,377) (45.23) Depreciation and Amortisation Expenses (4,170,943) (2,297,422) 81.55 Other Investment Expenses (18,165,910) (15,293,772) 18.78 Income and Expenses from Other and Extraordinary Operations While there has been a loss in Income and Expenses from Other and Extraordinary Operations in the previous period, company recorded a profit in the same item during the current year as a result of high amount of deferred tax income due to the increase in unexpired risk reserves and equalisation reserve as well as the effect of receivables from the tax office within the Company’s corporate tax calculation due to deficit of Singapore Branch in 2018. (TL) 2019 2018 Değişim (%) Income and Expenses From Other and Extraordinary Operations (6,850,022) (13,488,014) (150.79) Provisions (13,080,686) (13,191,358) (0.84) Rediscounts (299,165) (727,787) (58.89) Deferred Taxation (Deferred Tax Assets) 9,740,590 1,814,922 436.69 Other Income 10,607,605 379,572 2,694.62 Other Expenses and Losses (118,322) (1,763,363) (93.29) Corporate Tax Liability Provision on Period Profit The increase in the corporate tax liability provision on period profit account is caused by higher taxable profit in the current period compared to previous period. The corporate tax liability provision is calculated starting by taxable profit excluding Singapore Branch. As a result, the Company posted a net profit of TL 312,510,614 in 2019.