MILLIRE_2019_Annual Report

231 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 Level 1 Level 2 Level 3 Total Financial assets: Available for sale financial assets (Note 11) (*) 894.766.318 111.010.219 - 1.005.776.537 Financial assets held for trading (Note 9) 73.091.120 106.461.626 - 179.552.746 Associates - 199.307.030 - 199.307.030 Subsidiaries - 3.445.290 - 3.445.290 Total financial assets 967.857.438 420.224.165 - 1.388.081.603 Tangible assets: Investment properties (Note 6) - 455.721.000 - 455.721.000 Owner occupied properties (Note 6) - 194.296.000 - 194.296.000 Total tangible assets - 650.017.000 - 650.017.000 Total 967.857.438 1.070.241.165 - 2.038.098.603 (*) As of December 31, 2019, securities that are not publicly traded amounting to TL 2.265.431 (December 31, 2018: TL 2.265.431) have been measured at cost. The reconciliation for fair value measurement Level 3 of available for sale financial assets is as follow: December 31, 2019 December 31, 2018 Available for sale financial assets at the beginning of the period - 67.311.993 Valuation increase/(decrease) (Valuation of financial assets) - (67.311.933) Available for sale financial assets at the end of the period - - Equity share price risk Equity share price risk is defined as the risk of decreasing the market price of equity shares as a result of a decline in index. The effect on Group income as a result of 10% change in the fair value of equity instruments held as held for trading financial assets (traded at İstanbul Stock Exchange) due to a reasonably possible change in equity indices, with all other variables held constant, is as follows (excluding tax effect): December 31, 2019 December 31, 2018 Profit or loss Equity (*) Profit or loss Equity (*) Financial assets held for trading (2.735.839) (2.735.839) (1.911.061) (1.911.061) Available for sale financial assets - (23.808.237) - (15.666.621) Total, net (2.735.839) (26.544.076) (1.911.061) (17.577.682) (*) Equity impact includes impact of change of conjectural interest rates on income statement.