MILLIRE_2019_Annual Report

General Information 2 Vision-Mission 3 Shareholder Structure 4 Corporate Profile 6 Milestones 8 Chairperson’s Message 12 General Manager’s Message 16 Board of Directors 20 Senior Management 22 Organization Chart 23 Human Resources Applications 24 2019 Annual Report Compliance Statement 25 Independent Auditor’s Report on the Annual Report of the Board of Directors Financial Rights Provided to the Members of the Governing Body and Senior Executives 28 Financial Rights Provided to the Members of the Governing Body and Senior Executives Research & Development Activities 28 Research & Development Activities Activities and Major Developments Related to Activities 30 Activities and Major Developments Related to Activities 30 Information on Investments Made by the Company during the Accounting Period 30 Repurchased Own Shares by the Company 30 Disclosures Concerning Special Audit and Public Audit during the Reporting Period 30 Lawsuits Filed Against the Company and Potential Results 30 Disclosures on Administrative or Judicial Sanctions Imposed on the Company and the Members of the Governing Body 30 Disclosures on Administrative or Judicial Sanctions Imposed on the Company and the Members of the Governing Body 30 Assessments on Prior Period Targets and General Assembly Resolutions 30 Expenses Incurred in the Reporting Period in Relation to Donations, Grants and Social Responsibility Projects 30 Relations with the Controlling Company or an Affiliate Thereof 31 Internal Audit 32 Internal Control 34 Affiliates 35 Corporate Social Responsibility Financial Status 41 Economic Outlook 46 Turkish Insurance Market 49 Turkish Reinsurance Market and Milli Re 54 Global Reinsurance Market and Milli Re 65 Financial Strength, Profitability and Solvency 66 Key Financial Indicators 68 Company Capital 69 2019 Technical Results 71 2019 Financial Results 73 General Assembly Agenda 74 Report By The Board of Directors 76 Dividend Distribution Policy 77 Dividend Distribution Propo Risks and Assessment of the Governing Body 79 Risk management Practices 84 Assessment of Capital Adequacy 84 Transactions Carried Out with Milli Re’s Risk Group 84 The Annual Reports of the Parent Company in the Group of Companies Unconsolidated Financial Statements Together with Independent Auditors’ Report Thereon 86 Independent Auditor’s Report 90 Unconsolidated Financial Statements as at and for the Year Ended December 31, 2019 92 Unconsolidated Balance Sheet as of December 31, 2019 97 Unconsolidated Statement of Income for the Year Ended December 31, 2019 100 Unconsolidated Statement of Changes in Equity for the Year Ended December 31, 2019 102 Unconsolidated Statement of Cash Flows for the Year Ended December 31, 2019 103 Unconsolidated Statement of Profit Distribution for the Year Ended December 31, 2019 104 Notes to the Unconsolidated Financial Statements as of December 31, 2019 Consolidated Financial Statements Together with Independent Auditors’ Report Thereon 170 Information on Consolidated Subsidiaries 171 Independent Auditor’s Report 176 Consolidated Financial Statements as at and for the Year Ended December 31, 2019 178 Consolidated Balance Sheet as of December 31, 2019 183 Consolidated Statement of Income for the Year Ended December 31, 2019 186 Consolidated Statement of Changes in Equity for the Year Ended December 31, 2019 188 Consolidated Statement of Cash Flows for the Year Ended December 31, 2019 189 Consolidated Statement of Profit Distribution for the Year Ended December 31, 2019 190 Notes to the Consolidated Financial Statements as of December 31, 2019 Contact Information CONTENTS