MILLIRE_2019_Annual Report

225 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)) The movements of the allowances for impairment losses for receivables from main operations during the period are as follows: December 31, 2019 December 31, 2018 Provision for receivables from insurance operations at the beginning of the year 322.127.564 244.199.179 Collections during the period (Note 47) (252.935) (596.362) Impairment losses provided during the period (Note 47) 3.410.377 2.440.564 Impairment losses provided for subrogation - salvage receivables during the period (Note 47) 60.946.654 68.986.591 Valuation of doubtful receivables (Note 47) 3.175.736 7.097.592 Provision for receivables from insurance operations at the end of the year 389.407.396 322.127.564 The movements of the allowances for impairment losses for other receivables are as follows: December 31, 2019 December 31, 2018 Provision for other receivables at the beginning of the year 409.363 53.177 Collections during the period (Note 47) (17.075) - Provision for impairment allocated during the period (Note 47) 362.500 356.186 Provision for other receivables at the end of the year 754.788 409.363 Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset as a result of the imbalance between the Group’s cash inflows and outflows in terms of maturity and volume. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities. In respect of this risk which is measured by quantitative methods, any liquidity deficit is observed via the maturity analysis of assets and liabilities in the statement of balance sheet. Furthermore, liquidity structure of the Group is monitored by using the following basic indicators in respect of liquidity ratios: - Liquid Assets/Total Assets - Liquidity Ratio - Current Ratio - Premium and Reinsurance Receivables/Total Assets The results evaluated by the Risk Committee and reported regularly to the Board of Directors. Action plan is determined by the Board of Directors in the case of having exposure higher than acceptable level of risk and probability.