MILLIRE_2019_Annual Report

239 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)) Gains and losses recognized in the consolidated statement of income in accordance with existing insurance and retrocession contracts are as follows: December 31, 2019 December 31, 2018 Premiums ceded during the period (Note 17) (1.976.107.372) (1.770.959.962) Unearned premiums reserve, ceded at the beginning of the period (Note 17) (732.987.716) (551.618.894) Unearned premiums reserve, ceded at the end of the period (Note 17) 868.053.967 732.987.716 Earned premiums, ceded (Note 17) (1.841.041.121) (1.589.591.140) Claims paid, ceded during the period (Note 17) 918.359.421 674.389.796 Outstanding claims reserves, ceded at the beginning of the period (Note 17) (1.195.809.112) (595.038.575) Outstanding claims reserves, ceded at the end of the period (Note 17) 1.507.010.830 1.195.809.112 Incurred claims, ceded (Note 17) 1.229.561.139 1.275.160.333 Commission income accrued from reinsurers during the period (Note 32) 219.921.607 248.982.078 Deferred commission income at the beginning of the period (Note 19) 101.626.238 77.376.043 Deferred commission income at the end of the period (Note 19) (109.664.368) (101.626.238) Commission income earned from reinsurers (Note 32) 211.883.477 224.731.883 Changes in unexpired risk reserves, reinsurers’ share (Note 17) (24.652.657) 16.269.641 Total, net (424.249.162) (73.429.283) 11 Financial assets As of December 31, 2019 and 2018, the Group’s financial assets are detailed as follows: December 31, 2019 December 31, 2018 Available for sale financial assets 2.247.608.666 1.014.996.508 Financial assets held for trading 159.450.716 179.552.746 Impairment loss on available for sale financial assets (6.954.540) (6.954.540) Total 2.400.104.842 1.187.594.714 As of December 31, 2019 and 2018, the Group’s financial assets held for trading are detailed as follows: December 31, 2019 Nominal value Cost Fair value Book value Debt instruments: Other TL - 13.310.217 13.313.760 13.313.760 - 13.310.217 13.313.760 13.313.760 Non-fixed income financial assets: Investment funds - 77.430.047 107.307.443 107.307.443 Equity shares - 27.805.318 27.358.390 27.358.390 Derivative guarantees - 11.638.912 11.471.123 11.471.123 - 116.874.277 146.136.956 146.136.956 Total financial assets held for trading - 130.184.494 159.450.716 159.450.716