MILLIRE_2019_Annual Report

229 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)) Exposure to foreign currency risk A 20 percent depreciation of the TL against the following currencies as of December 31, 2019 would have increased or decreased equity and profit or loss (excluding tax effects) by the amounts shown below (December 31, 2018: 20 percent depreciation of the TL). This analysis assumes that all other variables, in particular interest rates, remain constant. In case of a 20 percent appreciation of the TL against the following currencies, the effect will be in opposite direction. December 31, 2019 December 31, 2018 Profit or loss Equity (*) Profit or loss Equity (*) US Dollar (39.863.887) 86.257.371 43.550.536 101.941.642 Euro (20.921.194) (11.740.533) (13.185.507) (4.359.308) Others 8.903.184 8.903.184 6.457.039 6.457.039 Total, net (51.881.897) 83.420.023 36.822.068 104.039.372 (*) Equity effect also includes profit or loss effect of 20% depreciation of TL against related currencies (December 31, 2018: 20% depreciation of TL). Exposure to interest rate risk The principal risk to which non-trading portfolios are exposed is the risk of loss from fluctuations in the future cash flows or fair values of financial instrument because of a change in market interest rates. Interest rate risk is managed principally through monitoring interest rate gaps and by having pre-approved limits for repricing bands. As at reporting date; the interest rate profile of the Group’s interest earning financial assets and interest bearing financial liabilities are detailed as below: December 31, 2019 December 31, 2018 Financial assets Financial assets with fixed interest rates: 6.756.715.734 5.991.429.695 Cash at banks (Note 14) (*) 5.768.417.484 5.342.227.631 Available for sale financial assets - Private sector bonds (Note 11) 398.650.528 221.150.459 Available for sale financial assets - Government bonds (Note 11) 282.705.065 231.514.841 Cash deposited to insurance and reinsurance companies (Note 12) 293.628.897 188.736.338 Held for trading financial assets - other (Note 11) 13.313.760 7.800.426 Financial assets with variable interest rate: 159.495.590 135.011.390 Available for sale financial assets - Private sector bonds (Note 11) 134.156.068 110.843.331 Available for sale financial assets - Government bonds (Note 11) 25.339.522 24.168.059 Financial liabilities: Financial liabilities with fixed interest rate: 117.648.540 53.578.314 Funds from repo transactions (Note 20) - 50.700.491 Payables from operating leases (Note 34) 58.175.787 Expense Accruals From Derivative Contracts (Note 20) 59.472.753 2.877.823 (*) Demand deposits amounting to TL 35.118.527 are not included (December 31, 2018: TL 21.978.266).