MILLI REASURANS ANNUAL REPORT 2018

CONTENTS PAGE CONSOLIDATED BALANCE SHEET 164 CONSOLIDATED STATEMENT OF INCOME 169 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 172 CONSOLIDATED STATEMENT OF CASH FLOWS 174 CONSOLIDATED STATEMENT OF PROFIT DISTRIBUTION 175 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 176-247 NOTE 1 GENERAL INFORMATION 176 NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 178 NOTE 3 SIGNIFICANT ACCOUNTING ESTIMATES AND REQUIREMENTS 203 NOTE 4 MANAGEMENT OF INSURANCE AND FINANCIAL RISK 204 NOTE 5 SEGMENT INFORMATION 216 NOTE 6 TANGIBLE ASSETS 216 NOTE 7 INVESTMENT PROPERTIES 218 NOTE 8 INTANGIBLE ASSETS 219 NOTE 9 INVESTMENTS IN ASSOCIATES 220 NOTE 10 REINSURANCE ASSETS AND LIABILITIES 220 NOTE 11 FINANCIAL ASSETS 221 NOTE 12 LOANS AND RECEIVABLES 225 NOTE 13 DERIVATIVE FINANCIAL ASSETS 226 NOTE 14 CASH AND CASH EQUIVALENTS 226 NOTE 15 EQUITY 227 NOTE 16 OTHER RESERVES AND EQUITY COMPONENT OF DISCRETIONARY PARTICIPATION 230 NOTE 17 INSURANCE CONTRACT LIABILITIES AND REINSURANCE ASSETS 230 NOTE 18 INVESTMENT CONTRACT LIABILITIES 234 NOTE 19 TRADE AND OTHER PAYABLES AND DEFERRED INCOME 234 NOTE 20 FINANCIAL LIABILITIES 235 NOTE 21 DEFERRED TAXES 236 NOTE 22 RETIREMENT BENEFIT OBLIGATIONS 236 NOTE 23 PROVISION FOR OTHER LIABILITIES AND EXPENSE ACCRUALS 239 NOTE 24 NET INSURANCE PREMIUM REVENUE 239 NOTE 25 FEE REVENUE 239 NOTE 26 INVESTMENT INCOME 239 NOTE 27 NET INCOME ACCRUAL ON FINANCIAL ASSET 239 NOTE 28 ASSETS HELD AT FAIR VALUE THROUGH PROFIT OR LOSS 239 NOTE 29 INSURANCE RIGHTS AND CLAIMS 240 NOTE 30 INVESTMENT CONTRACT BENEFITS 240 NOTE 31 OTHER EXPENSES 240 NOTE 32 OPERATING EXPENSES 240 NOTE 33 EMPLOYEE BENEFIT EXPENSES 241 NOTE 34 FINANCIAL COSTS 241 NOTE 35 INCOME TAX 241 NOTE 36 NET FOREIGN EXCHANGE GAINS 241 NOTE 37 EARNINGS PER SHARE 242 NOTE 38 DIVIDENDS PER SHARE 242 NOTE 39 CASH GENERATED FROM OPERATIONS 242 NOTE 40 CONVERTIBLE BOND 242 NOTE 41 REDEEMABLE PREFERENCE SHARES 242 NOTE 42 RISKS 242 NOTE 43 COMMITMENTS 243 NOTE 44 BUSINESS COMBINATIONS 243 NOTE 45 RELATED PARTY TRANSACTIONS 244 NOTE 46 SUBSEQUENT EVENTS 246 NOTE 47 OTHER 247 Millî Reasürans Annual Report 2018 Consolidated Financial Statements and Independent Auditors’ Report / 163