MILLIRE_2019_Annual Report

Milli Re Annual Report 2019 84 ASSESSMENT OF CAPITAL ADEQUACY The Company’s capital adequacy is measured according to the provisions of “Regulation in Respect of Measurement and Assessment of Capital Adequacy of Insurance, Reinsurance and Pension Companies”, which was published by the Ministry of Treasury and Finance and assessments regarding the results are submitted to General Manager, Risk Committee, Board of Directors and Directorate of Subsidiaries of İşbank via the “Risk Assessment Report”. The factor-based method, used according to the aforementioned regulation, determines the amount of capital required for each type of risk, and thus allows the calculation of the total required capital. TRANSACTIONS CARRIED OUT WITH MILLI RE’S RISK GROUP Being a member of İşbank group, Milli Re carries out its relations with its risk group on an arm’s length basis. Relations with group companies are concentrated mostly in reinsurance, banking, portfolio management, information technologies services and risk management. Risk management activities are carried out in compliance with Consolidated Risk Policies of the risk group. Possible risks and findings obtained as a result of measurement are regularly monitored through reporting systems set up within the group. Detailed information on the Company’s transactions with its risk group is presented in the notes to the Financial Statements. THE ANNUAL REPORTS OF THEPARENT COMPANY IN THE GROUP OF COMPANIES a- The Parent Company Milli Re holds shares representing 57.31% of the capital of Anadolu Anonim Türk Sigorta Şirketi directly, and 1% and 20% of the capital of Anadolu Hayat ve Emeklilik A.Ş. directly and indirectly, respectively. b- Group companies do not have any shares of Parent Company Milli Reasürans T.A.Ş. c- The Company’s Consolidated and Unconsolidated Internal Audit and Risk Management Policies are formulated within the frame of the relevant consolidated policies of the group of companies to which the Company is affiliated and covers the Company’s subsidiaries subject to consolidation on a line-by-line basis. These are based on the operating principles of Türkiye İş Bankası A.Ş.