MILLIRE ENG2024
Outstanding claims reserves Milli Reasürans: Outstanding indemnity provision is set aside for indemnity amounts accrued and determined on account but not actually paid in previous accounting periods or in the current accounting period, or if this amount could not be calculated, estimated costs and incurred but not reported compensation amounts. According to the “Regulation on Amendments to the Regulation on the Technical Provisions of Insurance and Reinsurance Companies and Pension Companies and the Assets in which These Provisions are Invested,” published in the Official Gazette dated July 28, 2010, numbered 27655, all expense shares necessary for the development of compensation files have been taken into account during the calculation of the accrued and actuarially determined claims provision. This includes calculated or estimated expenses for experts, consultants, legal fees, and communication costs, and no deductions have been made for recovery, salvage, or similar income items in the relevant calculations. Except for the life branch, outstanding claims reserve consists of claims are recorded in the year in which they occur, based on reported claims and the difference between the result of the actuarial chain ladder method whose content and application criteria stated by Turkish Insurance and Private Pension Regulation and Supervision Authority, and reported but not settled claims are considered as incurred but not reported (“IBNR”) claims. Actuarial chain ladder method may be differentiated by Turkish Insurance and Private Pension Regulation and Supervision Authority for reinsurance companies due to their special conditions. With the publication of the “General Communiqué on the Provision for Incurred But Not Reported (IBNR) Claims (2014/16)” on December 5, 2014, the “General Communiqué on the Actuarial Chain Ladder Methodology” numbered 2010/12 has been abolished except for Articles 9 and 10. According to this communiqué, which explains the IBNR calculation methods, insurance and reinsurance companies utilize six different methods for calculating IBNR: “Standard Chain, Loss/Bonus, Cape Cod, Frequency/ Severity, Munich Chain, and Bornhuetter-Ferguson.” As of December 31, 2024, Milli Reasürans has added 2,763,615,993 TL to its claims provision by considering 100% of the IBNR calculated, excluding its Singapore branch (December 31, 2023: 651,285,087 TL). As of the reporting date, a net IBNR amounting to 192,258,576 TL has been assigned for the Singapore Branch (December 31, 2023: 115,375,539 TL). The amounts assigned by Milli Reasürans for incurred but not reported claims (IBNR) by line of business and the IBNR calculation methods it has chosen are presented in the table below: Milli Reasürans 31 December 2024 31 December 2023 Branches Calculation Method Net IBNR (*) Net IBNR (*) General Liability (***) ACLM- Paid Claims 860.809.044 294.434.236 General Losses (**) ACLM- Paid Claims 820.698.727 316.094.872 Fire and Natural Disasters ACLM- Paid Claims 748.210.321 222.030 Land Vehicles Liability ACLM- Paid Claims 365.686.798 117.072.338 Financial Losses ACLM- Paid Claims 60.288.286 46.519.250 Other Branches, Total ACLM- Paid Claims (93.855.107) (127.843.946) Other Branches, Total Sector Average (TSB) 1.777.924 4.786.307 Total 2.763.615.993 651.285.087 (*) Excludes amounts allocated for Singapore branch. (**) Two separate calculation have been made as agriculture and non-agriculture subbranches. (***) In accordance with the “Circular numbered 2020/11 on Making Amendments on Communique regarding Provision for Outstanding Claim Files numbered 2014/16” which has been published on December 7, 2020 and entered into force as of its publication date, an additional calculation is made in terms of Compulsory Financial Liability Insurance regarding Medical Malpractice sub-branch and calculation is made in terms of other sub-branches under General Liability through excluding Compulsory Financial Liability Insurance regarding Medical Malpractice. 212 Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) Notes to the Consolidated Financial Statements As of December 31, 2024 (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish) MİLLİ RE
Made with FlippingBook
RkJQdWJsaXNoZXIy MTc5NjU0