MILLIRE_2019_Annual Report

227 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)) December 31, 2018 Book value Up to 1 month 1 to 3 months 3 to 6 months 6 to 12 months Over 1 year Assets Cash and cash equivalents 5.815.792.507 2.502.337.674 2.041.525.765 986.955.328 284.973.740 - Financial assets and financial investments with risks on policyholders (*) 1.009.552.468 432.870.107 18.042.720 39.715.838 35.745.940 483.177.863 Receivables from main operations 1.833.933.317 246.008.892 531.636.401 514.426.226 489.745.036 52.116.762 Other receivables and current assets 160.483.444 148.505.577 3.641.414 2.062.089 4.646.931 1.627.433 Total monetary assets 8.819.761.737 3.329.722.250 2.594.846.300 1.543.159.481 815.111.647 536.922.058 Liabilities Financial liabilities 53.578.314 51.045.641 2.527.565 5.108 - - Payables arising from main operations 700.067.699 249.736.427 97.059.335 139.499.409 211.074.769 2.697.759 Due to related parties 370.388 370.388 - - - - Other liabilities 97.294.815 48.408.998 39.430.825 - - 9.454.992 Insurance technical reserves (**) 4.220.468.278 229.614.168 451.260.591 267.699.186 339.868.250 2.932.026.083 Provisions for taxes and other similar obligations 57.436.673 57.436.673 - - - - Provisions for other risks and expense accruals 161.935.057 39.516.670 15.330.447 - 25.659.629 81.428.311 Total monetary liabilities 5.291.151.224 676.128.965 605.608.763 407.203.703 576.602.648 3.025.607.145 (*) Equity shares amounting to TL 178.042.246 are not included. (**) Outstanding claims reserve is presented as short term liabilities in the accompanying consolidated financial statements whereas maturity distribution is presented according to projected payment dated in the above table. Market risk Market risk is the risk that changes in market prices, such as interest rate, foreign exchange rates and credit spreads will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return on risk. Foreign currency risk The Group is exposed to foreign currency risk through insurance and reinsurance transactions in foreign currencies. Foreign exchange gains and losses arising from foreign currency transactions are recorded at transaction dates. At the end of the reporting periods, foreign currency assets and liabilities evaluated by the Central Bank of the Republic of Turkey’s spot purchase rates and the differences arising from foreign currency rates are recorded as foreign exchange gain or loss in the statement of operations.