MILLIRE_2019_Annual Report

223 Milli Re Annual Report 2019 Activities and Major Developments Related to Activities Financial Status Risks and Assessment of the Governing Body Unconsolidated Financial Statements Together with Independent Auditors’ Report Thereon Consolidated Financial Statements Together with Independent Auditors’ Report Thereon General Information Financial Rights Provided to the Members of the Governing Body and Senior Executives Research & Development Activities Millî Reasürans Türk Anonim Şirketi NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2019 (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) (Currency: Turkish Lira (TL)) Branche s December 31, 2018 Gross total claims liability (*) Reinsurance share of total claims liability Net total claims liability Land Vehicles Liability 1.019.615.451 (171.591.278) 848.024.173 Land Vehicles 846.284.750 (17.468.973) 828.815.777 Fire and Natural Disasters 711.809.536 (126.285.294) 585.524.242 Health 565.574.715 (32.170.327) 533.404.388 General Damages 427.442.407 (79.219.640) 348.222.767 General Liability 150.961.531 (66.244.727) 84.716.804 Sea Vehicles 71.428.970 (20.696.660) 50.732.310 Casualty 54.389.627 (7.190.014) 47.199.613 Marine 75.791.257 (31.462.960) 44.328.297 Air Vehicles 77.958.925 (67.604.041) 10.354.884 Life 6.619.434 (650.525) 5.968.909 Financial Losses 3.740.744 (1.822.917) 1.917.827 Fidelity Guarantees 739.320 (10) 739.310 Air Vehicles Liability 50.877.464 (50.452.669) 424.795 Credits 1.667.314 (1.529.761) 137.553 Sea Vehiles Liability 128.186 - 128.186 Legal Protection 100.198 - 100.198 Total 4.065.129.829 (674.389.796) 3.390.740.033 (*) Total claims liability includes outstanding claims reserve (paid). Effects of the changes in assumptions used in the measurement of insurance assets and liabilities showing the effect of each change separately that has significant effect on financial statements In the current year, there are no material changes in the assumptions of measurement of insurance assets and liabilities. 4.2 Management of financial risk Introduction and overview This note presents information about the Group’s exposure to each of the below risks, the Group’s objectives, policies and processes for measuring and managing risk, and the Group’s management of capital. The Group has exposure to the following risks from its use of financial instruments: - credit risk - liquidity risk - market risk The Group is subject to credit risk, market risk (foreign currency risk, interest rate risk and price risk in relation with financial investments) and liquidity risk due to assets and liabilities. The Group’s exposure to each of the above risks is assessed according to “Application Principles in Respect of Risk Limits”. The Group monitors its receivables by obtaining comprehensive information about the debtors and debtors’ activities. The risk over investment portfolio is managed by measuring and reporting the market risk daily, reassessing the results validity and applying different scenario analyses. The Group’s exposure to each of the above risks is measured by Internal Control and Risk Management Service independently, reported to Board of Directors and units of İş Bankası through the Risk Committee.