Devlet Bakanlığından - Anadolu Hayat Emeklilik

Transcription

ANADOLU HAYAT
EMEKLİLİK A.Ş.
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2009
Translated into English from
The Original Turkish Report
ANADOLU HAYAT EMEKLİLİK ANONİM ŞİRKETİ
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors of Anadolu Hayat Emeklilik A.Ş.,
1)
We have audited the accompanying financial statements of Anadolu Hayat Emeklilik Anonim Şirketi, which
comprise the balance sheet as at 31 December 2009, and the statements of income, changes in equity and cash
flows for the year then ended, and a summary of significant accounting policies and other explanatory notes.
Management’s Responsibility for the Financial Statement
2)
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
the applicable accounting principles and standards issued based on insurance laws and regulations. This
responsibility includes; designing, implementing and maintaining internal control relevant to the preparation and
fair presentation of financial statements that are free from material misstatement, whether due to fraud or error;
selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the
circumstances.
Auditor’s Responsibility
3)
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with standards on auditing issued based on insurance laws and regulations. Those standards require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
4)
In our opinion, the accompanying financial statements give a true and fair view of the financial position of
Anadolu Hayat Emeklilik Anonim Şirketi as of 31 December 2009, and of its financial performance and its cash
flows for the year then ended in accordance with the applicable accounting principles and standards issued based
on insurance laws and regulations (Note 2).
Additional paragraph for the English translation:
The effect of the differences between the accounting principles summarized in Note 2 and the accounting
principles generally accepted in countries in which the accompanying financial statements are to be distributed
and International Financial Reporting Standards (IFRS) have not been quantified and reflected in the
accompanying financial statements. The accounting principles used in the preparation of the accompanying
financial statements differ materially from IFRS. Accordingly, the accompanying financial statements are not
intended to present the Company’s financial position and results of its operations in accordance with accounting
principles generally accepted in such countries of users of the financial statements and IFRS.
İstanbul, 10 March 2010
DRT BAĞIMSIZ DENETİM VE SERBEST MUHASEBECİ MALİ MÜŞAVİRLİK A.Ş.
Member of DELOITTE TOUCHE TOHMATSU
Sibel Türker
Partner
ANADOLU HAYAT EMEKLİLİK A.Ş.
THE UNCONSOLIDATED FINANCIAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2009
We assure you that our year-end unconsolidated financial report and the related disclosures and notes
prepared in accordance with the requirements set out by the T.R. Prime Ministry Undersecretariat of
Treasury are in compliance with the provisions of the Decree on “Financial Reporting of Insurance
and Reinsurance Companies and Pension Funds” and our Company’s accounting records.
İstanbul, 10 March 2010
Mete Uğurlu
Member of Board
of Directors,
Chief Executive
Officer
Harun R. Alpözgen
Actuary
Oğuz Haluk Solak
Vice Chief
Executive Officer
N. Cem Özcan
Accounting
Manager
Hüray Böke
Statutory
Auditor
Hüseyin Yağcı
Statutory Auditor
CONTENTS
PAGE
BALANCE SHEET .....................................................................................................................................................
1-5
STATEMENT OF INCOME...... ................................................................................................................................
6-7
STATEMENT OF CHANGES IN EQUITY .............................................................................................................
8
CASH FLOW STATEMENT .....................................................................................................................................
9
STATEMENT OF PROFIT DISTRIBUTION .........................................................................................................
10
NOTES TO THE FINANCIAL STATEMENTS ......................................................................................................
11-97
NOTE 1
NOTE 2
NOTE 3
NOTE 4
NOTE 5
NOTE 6
NOTE 7
NOTE 8
NOTE 9
NOTE 10
NOTE 11
NOTE 12
NOTE 13
NOTE 14
NOTE 15
NOTE 16
NOTE 17
NOTE 18
NOTE 19
NOTE 20
NOTE 21
NOTE 22
NOTE 23
NOTE 24
NOTE 25
NOTE 26
NOTE 27
NOTE 28
NOTE 29
NOTE 30
NOTE 31
NOTE 32
NOTE 33
NOTE 34
NOTE 35
NOTE 36
NOTE 37
NOTE 38
NOTE 39
NOTE 40
NOTE 41
NOTE 42
NOTE 43
NOTE 44
NOTE 45
NOTE 46
NOTE 47
11-13
13-33
33
34-53
54-55
56-57
58
59
60
60-61
61-64
65-68
69
69-70
71
71
72-85
85
85
85
86
87-88
88
88
89
89
90
90
90
90
90
90
91
91
91-93
93
93
94
94
94
94
94
94
95
95-96
96
97
GENERAL INFORMATION ...............................................................................................................
SUMMARY OF ACCOUNTING POLICIES ......................................................................................
SIGNIFICANT ACCOUNTING ESTIMATES AND REQUIREMENTS ..........................................
INSURANCE AND FINANCIAL RISK MANAGEMENT ................................................................
SEGMENT INFORMATION ..............................................................................................................
PROPERTY, PLANT AND EQUIPMENT .........................................................................................
INVESTMENT PROPERTIES ............................................................................................................
INTANGIBLE ASSETS.......................................................................................................................
INVESTMENTS IN AFFILIATES ......................................................................................................
REINSURANCE ASSETS ...................................................................................................................
FINANCIAL ASSETS .........................................................................................................................
RECEIVABLES AND PAYABLES ....................................................................................................
DERIVATIVE FINANCIAL INSTRUMENTS....................................................... .............................
CASH AND CASH EQUIVALENTS ..................................................................................................
SHARE CAPITAL ...............................................................................................................................
OTHER PROVISIONS AND CAPITAL COMPONENT OF DISCRETIONARY PARTICIPATION
INSURANCE LIABILITIES AND REINSURANCE ASSETS ..........................................................
LIABILITIES OF INVESTMENT CONTRACTS ..............................................................................
TRADE AND OTHER PAYABLES, DEFERRED INCOME.............................................................
PAYABLES .........................................................................................................................................
DEFERRED INCOME TAX ................................................................................................................
RETIREMENT BENEFITS .................................................................................................................
OTHER LIABILITIES AND PROVISIONS .......................................................................................
NET INSURANCE PREMIUM REVENUE........................................................................................
FEE INCOME ......................................................................................................................................
INVESTMENT INCOME/EXPENSE .................................................................................................
NET INCOME ACCRUAL ON FINANCIAL ASSETS .....................................................................
ASSETS HELD AT FAIR VALUE THROUGH PROFIT AND LOSS ..............................................
INSURANCE RIGHTS AND CLAIMS ..............................................................................................
INVESTMENT AGREEMENT RIGHTS ............................................................................................
OTHER EXPENSES ............................................................................................................................
EXPENSE TYPES ...............................................................................................................................
EMPLOYEE BENEFIT EXPENSES ...................................................................................................
FINANCE COSTS ...............................................................................................................................
INCOME TAX .....................................................................................................................................
NET INCOME FROM THE CHANGES IN FOREIGN EXCHANGE RATES ..................................
EARNINGS PER SHARE....................................................................................................................
DIVIDENDS PER SHARE ..................................................................................................................
CASH GENERATED FROM OPERATIONS .....................................................................................
EQUITY SHARE CONVERTIBLE BONDS ......................................................................................
CASH CONVERTIBLE PRIVILEGED EQUITY SHARES ...............................................................
RISKS ..................................................................................................................................................
COMMITMENTS ................................................................................................................................
BUSINESS COMBINATIONS ............................................................................................................
RELATED PARTIES ...........................................................................................................................
SUBSEQUENT EVENTS ....................................................................................................................
OTHER.................................................................................................................................................
NOTES TO THE FINANCIAL STATEMENTS AS OF 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (TRY) unless otherwise stated)
1.
General Information
1.1
Company and the ultimate owner of the Company
Anadolu Hayat Emeklilik Anonim Şirketi (“the Company”) has been operating since 31 May
1990 and its ultimate shareholding structure is detailed as below:
Türkiye İş Bankası A.Ş.
Anadolu Anonim Türk
Sigorta Şti.
Milli Reasürans T.A.Ş.
Fortis Bank A.Ş.
Publicly traded
Total
1.2
31 December 2009
Shareholding Shareholding
Amount
Rate
TRY
%
155.000.000
62
50.000.000
2.500.000
2.500.000
40.000.000
250.000.000
20
1
1
16
100
31 December 2008
Shareholding Shareholding
Amount
Rate
TRY
%
155.000.000
62
50.000.000
2.500.000
2.500.000
40.000.000
250.000.000
20
1
1
16
100
The Company’s address and legal structure, address of its registered country and
registered office (or, if the Company’s address is different from its registered office, the
original location where the Company’s actual operations are performed)
The Company is a corporation, which was established in compliance with the requirements
of Turkish Commercial Code, is located at İş Kuleleri Kule 2 Kat: 16, 18- 20 34330, 4.
Levent, İstanbul. Principles of operations are determined based on the Insurance Law No:
5684 and Private Pension Saving and Investment System Law No: 4632.
1.3
Main operations of the Company
The operations of the Company involve providing individual and group insurance and
reinsurance services relating to group life, individual life, retirement and related personal
accident branches, establishing retirement funds, developing internal rules and regulations
related to these funds, carrying out retirement, annual income insurance, portfolio
management and custody contracts for the assets of the funds held in custody.
As of the balance sheet date, there are 17 Individual Retirement Investment Funds which
were established by the Company (31 December 2007: 17).
1.4
Details of the Company’s operations and nature of field of activities
In accordance with Article 50(a) in Section VII of the Capital Markets Law, insurance
companies have to comply with their own specific laws and regulations in matters of
establishment, auditing, supervision/oversight, accounting and financial reporting; therefore,
the Company performs its operations accordingly.
The principles of the operations of the Company are based on the Private Pension Saving
and Investment System Law No: 4632 for individual and group pension plans and Insurance
Law No: 5684 for individual accident and life insurances and the policies set out in
applicable regulations.
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1.
General Information (Cont’d)
1.5
Average number of the Company’s personnel based on their categories
2009
6
65
241
7
254
21
594
Key management personnel
Directors
Officers
Contracted personnel
Marketing and sales personnel
Other
Total
1.6
2008
6
61
223
7
237
20
554
Remuneration and fringe benefits provided to top management
The remuneration and fringe benefits provided to top management such as; chairman and
members of the board of directors, managing director and assistant managing director in
total amount to TRY 2.721.351 gross, for the period between 1 January – 31 December 2009
(1 January – 31 December 2008: TRY 2.539.794).
1.7
Allocation keys used in the allocation of investment income and operating expenses in
the financial statements (personnel expenses, administration expenses, research and
development expenses, marketing and selling expenses and other operating expenses)
The Company allocates its personnel, administrative, research and development, marketing
and selling, outsourced benefits and service expenses and other operating expenses to
technical accounts to non-life, life and retirement branches in accordance with the Circular
on “Principles and Procedures of Distribution Keys Used In Financial Statements Under the
Insurance Uniformed Chart of Accounts” issued by the Undersecretariat of Treasury on 4
January 2008.
As of the balance sheet date, allocation of operating expenses between non-life, life and
retirement branches is shown in Note 5.
1.8
Stand-alone or consolidated financial statements
The accompanying financial statements only include stand alone financial information of
Anadolu Hayat Emeklilik Anonim Şirketi.
12
1.
General Information (Cont’d)
1.9
Title and other information relating to the reporting company and changes to the prior
balance sheet date
Title / Trade name
Headquarter address
Phone
Fax
Web page address
E-mail address
: Anadolu Hayat Emeklilik A.Ş.
: İş Kuleleri, Kule 2 Kat 20 34330, Levent/İstanbul
: 0212 317 70 70
: 0212 317 70 77
: www.anadoluhayat.com.tr
: [email protected]
There has been no change in the above information since the prior balance sheet date.
1.10
Subsequent Events
The Company’s financial statements as of 31 December 2009 are approved by the Board of
Directors with the decision dated 10 March 2010 and No: 493/1. Subsequent events are
disclosed in Note 46.
2.
Summary of the Accounting Policies
2.1
Basis of Preparation
2.1.1
Basis of Preparation of Financial Statements and Specific Accounting Policies Used
Accounting Standards
In accordance with Article 50(a) of Section VII of the Capital Markets Law, insurance
companies have to comply with their own specific laws and regulations in matters of
establishment, auditing, oversight, accounting and financial reporting. Therefore, the
Company’s financial statements are prepared in accordance with the prevailing accounting
principles and standards for Insurance and Reinsurance Companies and Pension Funds set
out by the Undersecretariat of Treasury.
The financial statements of the insurance and reinsurance companies are prepared in
accordance with the Decree on “Chart of Accounts and Prospectus of Insurance Companies”
issued by the Undersecretariat of Treasury, announced at the Official Gazette No: 25686 on
30 December 2004. The accompanying financial statements are prepared in accordance with
the Decree on “Presentation of Publicly Available Financial Statements and Related Notes
and Disclosures” issued by the Undersecretariat of Treasury, announced at the Official
Gazette No: 26851 on 18 April 2008.
Article 4(1) of the Decree on “Financial Reporting of Insurance and Reinsurance Companies
and Pension Funds” which was published in the Official Gazette No: 26852 on 14 July 2007
and has become effective as of 1 January 2008, requires the preparation of the financial
statements in accordance with the Turkish Accounting Standards Board (“TASB”). The
financial statements are prepared in the framework of the form and standards declared in
respect of the Decree on “Presentation of Publicly Available Financial Statements and
Related Notes and Disclosures” published in the Official Gazette No: 26851 on 18 April
2008.
13
2.
Summary of the Accounting Policies (Cont’d)
2.1.
Basis of Preparation (Cont’d)
2.1.1
(Cont’d)
According to the sector announcement related with the pronouncements of the
Undersecretariat of Treasury in relation with the financial reporting, dated 18 February 2008,
Article 4(1) of the Decree on “Financial Reporting of Insurance and Reinsurance Companies
and Pension Funds” requires the recognition of company operations in accordance with the
preparation and presentation of financial statements requirements in this Decree and TASB,
except for any decrees issued by the Undersecretariat of the Treasury in relation to the
matters specified in 4(2). Article 4(2) of the Decree on “Financial Reporting of Insurance
and Reinsurance Companies and Pension Funds” requires the determination of principles
and procedures on insurance contracts, accounting of subsidiaries, associates and entities
under common control, consolidated financial statements, publicly available financial
statements and the related disclosures and notes in accordance with the decrees issued by the
Undersecretariat of the Treasury.
Within this respect, the below requirements are set out in regards to Article 4(2) of the above
mentioned Decree:
1. TFRS 4 (Turkish Financial Reporting Standards 4) “Insurance Contracts” is applicable
for the annual periods beginning on or after 31 December 2005. The Standard is
effective as of 25 March 2006; however, it is not applicable for the current period since
International Accounting Standards Board has not yet completed the second phase of its
project. Principles and procedures on the preparation of notes and disclosures in relation
to insurance contracts will be set out by a decree that will be issued by the
Undersecretariat of Treasury in case of need.
2. Accounting of subsidiaries, entities under common control and associates is prescribed
by the circular no: 2007/26 issued by the Undersecretariat of Treasury. In this respect,
subsidiaries, entities under common control and associates should be accounted for in
accordance with the specific standards issued by the TASB until a related decree is
issued by the Undersecretariat of Treasury.
According to the Communiqué on Consolidated Financial Reporting of Insurance and
Reinsurance Companies and Pension Funds, published in the Official Gazette No: 27097 (4.
Bis) on 31 December 2008, the Company is not obliged to present consolidated financial
statements for the year 2009. In this respect, TMS 27 will not be applied in this phase.
14
2.
2.1.
2.1.1
(Cont’d)
a.
Comparative Information and Restatement of Prior Period Financial Statements
Based on the above-mentioned explanations, the Company’s previous years’ profits/losses
account has been restated as below in the opening financial statements as of 31 December
2008 in accordance with the requirements set out in the Decree “Financial Reporting of
Insurance and Reinsurance Companies and Pension Funds”:
Restated Balance Sheet / Income Statement Item
Previous Years’ Profits/Losses (As Previously Reported)
Unused Vacation Provisions
Discount on Retirement Pay Provision
Unexpired Risk Reserves
Deferred Tax
Retained Earnings/Accumulated Losses
31 December 2008
(262.310)
3.663.867
(235.965)
1.973.273
5.138.865
2.1.2. Other related accounting policies for the understanding of financial statements
Technical Reserves
Unearned premiums reserves, outstanding claims reserve and their reinsurance shares in the
financial statements are recognized based on the below principles in accordance with Article
(16) of the Insurance Law No: 5684 effective at 14 June 2007, Article (8) of the Individual
Retirement, Saving and Investment System Law No. 4632 effective at 28 March 2001 and
the requirements set out in the Decree “Technical Provisions of Insurance and Reinsurance
Companies and Pension Funds and Assets Held For Such Provisions” issued in the Official
Gazette No: 26606 on 7 August 2007.
15
2.
2.1.
2.1.2
Other related accounting policies for the understanding of financial statements
a.
Technical Reserves (cont’d)
Unearned premiums reserve
The Company is required to fund unearned premium reserves for all insurance agreements
except for mathematical reserves funded. Unearned premiums reserve is the carried forward
portion of unearned gross premiums written in the current period and is calculated on a daily
pro-rata basis. Insurance policies covering possibilities of life and death or both and personal
accident, disability by illness and serious illness insurance policies are considered as life
insurance policies and their premiums are classified as life insurance premiums. Where
premiums of personal accident, disability from illness and serious illnesses are given
together with life insurance policies as package policy deals, such premiums are assessed
separately from the life insurance policies. Unearned premiums reserve is the carried forward
portion of unearned gross premiums written in the current period, without commissions or
any other deductions, and is calculated on a daily pro-rata basis. It is the carried forward
portion of the written gross premiums less the portion allocated for accumulation for
effective annual life policies and for long term life policies with accumulation premiums.
Future portion(s) of commissions paid to agencies, commissions received in relation with
premiums ceded to reinsurers, production expense shares and amounts paid for nonproportional reinsurance treaty agreements since 1 January 2008 are recognized under the
deferred income/loss and other related accounts. Regardless of any classification; incentives,
profitability and similar commissions which are not related to insurance policies are not
considered in deferred income/loss calculations. Terms of reinsurance treaty agreements are
considered in the accounts of reinsurer’s share of unearned premium reserves. In the related
period, as the financial statements are prepared, the “Carried Forward Unearned Premium
Reserves” account should reflect the “Unearned Premium Reserves” account of the prior
period’s financial statement and “Unearned Premium Reserves” for the period should be
recognized as the sum of unearned portion of premiums of policies effective as of balance
sheet date, which are calculated on a daily basis.
Unexpired risk reserves:
Unexpired risk reserves are provided in branches, in which there are inconsistencies between
the risk level assumed over the insurance period and the premiums earned over time and
where the Company’s unearned risk reserves are inadequate for its risks assumed and/or
costs estimated. The Company should apply an adequacy test covering the last 12 months for
each period for the possibility of exceeding claim compensations for the existing insurance
contracts against the unearned premium reserves provided for these contracts.
16
2.
2.1.
2.1.2
Other related accounting policies for the understanding of financial
statements (cont’d)
a.
Unexpired Risk Reserves (cont’d):
The adequacy test requires the multiplication of the net unearned premium reserves by the
estimated net claim premium ratio. Estimated claim premium ratio is calculated by dividing
the incurred claims (outstanding claims (net) + claims paid (net) – carried forward
outstanding claims (net)) by earned premiums (premiums written (net) + carried forward
unearned premiums reserve (net) – unearned premiums reserve (net)). If the estimated claim
premium ratio exceeds 95% for insurance branches that will be determined by the
Undersecretariat of Treasury, the amount calculated by the multiplication of the exceeding
rate by the net unearned premiums reserve will be defined as the unexpired risk reserve of
the related branch. The Company is required to take into account the unexpired risk reserves
in preparation of tariffs and at the updating stage.
Outstanding Claim Reserves:
The Company is required to provide outstanding claims reserve for both occurred and
calculated but not actually paid claims and, if such claims could not be calculated, not
reported but incurred claims carried at estimated amounts in the prior or current period. Last
twelve months’ balances should be taken into consideration in the calculation of incurred but
not reported claims. The claims which incurred before these twelve months but reported
during this period are considered as not-reported. The Company should consider the
weighted average ratio calculated by dividing the claims incurred prior to the related periods
but reported after the related period for the last 5 years or over, after the deduction of
subrogation, salvage and other related incomes, to the related periods’ premium, in the
calculation of incurred but not reported claims. The current period’s incurred but not
reported claim should be measured by multiplying the weighted average ratio by the total
premium production for 12 months prior to the current period. Outstanding claims reserves
which are reported during the current period or previous periods but remain outstanding
during the current period but reconsidered in the next period are calculated within the
incurred but not reported claims for the related branch. While the calculation of outstanding
claim reserve calculated or estimated expert, consultant, court or communication expenses
and all other necessary expenses for claims are taken into consideration. Outstanding claim
reserve provided for the current period cannot be below the amount calculated by using the
actuarial chain method developed by the Undersecretariat of the Treasury. The Company is
required to prepare an adequacy table for their outstanding claims reserve at the end of each
period using the format designated by the Undersecretariat of the Treasury and such
companies are also required to present the tables to the Undersecretariat of the Treasury. The
Undersecretariat of the Treasury denotes that an adequacy table should present the
outstanding claim adequacy ratio, which is the proportion of outstanding claim reserves
provided for the last 5 years to the total of actually paid claims including all expense shares
in relation to the related claims. If the average of the last five years’ outstanding claim
adequacy ratio, except for the current year, is below 95%, in order to calculate the adequacy
ratio, the difference is multiplied by the current year’s outstanding claim reserve.
17
2.
2.1
2.1.2
a.
Outstanding Claim Reserves (cont’d):
The outstanding claims amount of the current year is calculated by adding adequacy rate
difference for each branch separately. In the preparation of adequacy table, accrued,
calculated, realized but not reported outstanding claims and all expense shares are taken into
account in the outstanding claims reserve account. Terms of reinsurance treaty agreements
are considered in the reinsurer’s share of outstanding claims reserve account. Outstanding
claims are updated in each year-end and additional outstanding claim reserve is provided for
inadequate balances. Claims related to foreign currency indexed insurance contracts are
initially carried at contract rates. If claims are agreed to be paid at the effective rate at the
payment date, claims are carried at exchange selling rates prevailing at the Central Bank of
Turkish Republic announced in the Official Gazette. For claims under litigation, outstanding
claims reserve is initially based on the value determined by the court. If, however, claims
except for expense items such as; overdue interest, legal costs and counselor’s fee claimed
by the policy holders exceed the coverage limit of the insurance policy, companies should
deduct the exceeding portion(s) against the outstanding claim portion. Outstanding claims
reserve is calculated by the sum of claim amount determined by the expertise report and
invoices and expenses, such as; overdue interest and counselor’s fee.
Mathematical Reserves:
Companies engaged in life and non-life branches provide appropriate actuary mathematical
reserves in order to meet their liabilities to policyholders and beneficiaries having life, health
and personal accident policies having more than one year of maturity. In addition, for
disability from illness, serious illnesses, health and personal accident policies having more
than one year of maturity, life insurance mathematical reserves are calculated in a manner
that it would include mathematical reserve amount for additional guarantees calculated on an
actuarial basis. Mathematical reserves consist of actuarial mathematical reserves and profit
share reserves (share of policyholders, determined from the income generated from
mathematical reserves directed towards investment), that are calculated separately for each
effective policy, in accordance with the technical principles in the tariffs and which are
explained in clauses (i) and (ii) below.
i) Actuarial mathematical reserve is the difference between the premiums received for the
risks assumed and cash value of liabilities to policy holders and beneficiaries. Actuarial
mathematical reserves are funded based on the formulas and elements of the approved
technical principles of directions determined for life insurances having more than one year of
maturity. Actuarial mathematical reserves are calculated on a prospective method by
determining the difference between the cash value of the insurance company’s future
liabilities and the present value of future premiums of policy holders.
18
2.
2.1
2.1.2
a.
Mathematical Reserves: (cont’d)
However, the sum of actuarial mathematical reserves calculated either based on the
retrospective method (calculation of difference between the final value of premiums paid and
the final value of the risks assumed) or based on the generally accepted methods by the
Undersecretariat cannot be less than this amount. When the actuarial mathematical reserves
are presented as negative, this value is deemed to be nil. In life insurance policies where
accumulated premiums are collected, actuarial mathematical reserve includes the sum of
accumulated portion of premiums. Actuarial mathematical reserves can be measured on an
accrual or collection basis depending on the technical characteristics of the tariffs.
ii) Profit share reserves consist of the income obtained from assets in relation to reserves
provided for the obligations for the policyholders and beneficiaries in contracts for which the
Company has committed to distribute profit shares; the guaranteed portion (not to exceed the
technical interest income calculated based on the profit share distribution system prescribed
in the approved technical principles of profit share) and prior years’ accumulated profit share
reserves.
Equalization Reserve:
It is the reserve provided for earthquake and credit guarantees in order to equalize the
possible fluctuations in the claims compensation rates and to cover the catastrophic risks in
subsequent periods. Equalization reserves are calculated as 12% of the earthquake and credit
net premiums of each year. In accordance with the Undersecretariat of Treasury’s Circular
No: 2009/19 on “Announcement on Determination of Earthquake Portion of Death
Guarantee Premium” issued on 20 July 2009, when calculating equalization reserves, the
Company portfolio will be divided into subclasses according to earthquake regions and 12,5
% of earthquake premium is considered as earthquake portion of death guarantee premium
for the insurees who live in the first level earthquake regions and 10 % of earthquake
premium for the insurees who live in the second level earthquake regions. 12 % of these
amounts are accepted as equalization reserve account. The reserve is provided to the extent
that reserves reach at 150% of the maximum net premium written in the last five financial
periods. In a case of an incurrence of a claim, the amounts corresponding to the reinsurer and
the amounts below the exemption limit determined in the contract cannot be deducted from
the equalization reserves. The claims paid in relation to guarantees given are to be deducted
from the equalization reserves starting from the amounts recognized in the first year, by the
first in first out method.
19
2.
2.1
2.1.3. Functional currency
The Company’s financial statements are presented in the currency of the primary economic
environment in which the entity operates (its functional currency). The results and financial
position of the Company are expressed in Turkish Lira, which is the functional and
presentation currency of the Company.
2.1.4.
Rounding degree used in the financial statements
All the figures presented in the financial statements are expressed in Turkish Lira (TRY).
2.1.5. Valuation method(s) used in the presentation of financial statements
Financial statements, except for revaluation of some tangible assets and financial
instruments, are prepared based on the historical cost method.
2.1.6. Accounting Policies, adoption of New and Revised Standards and errors
The following new and revised Standards and Interpretations have been adopted in the
current period and have affected the amounts reported and disclosures in these financial
statements. Details of other standards and interpretations adopted in these financial
statements but that have had no impact on the financial statements are explained in the end
of this section.
Standards affecting the presentation of 2009 financial statements and notes

TFRS 7 (Revised), “Financial Instruments: Explanations”
The amendments in TFRS 7 require enhanced disclosure on fair value measurements as well
as on liquidity risks.
The Company applied the changes related with TFRS 7 within the year 2009 and the
information related to fair values is presented in disclosure 4.2. In the current period, the
Company did not make a classification between three levels of the inputs that are used in the
calculation of fair values of the financial assets. There are no financial instruments
valuations of which are performed from inputs that rely on unobservable data.

TAS 1 (Revised) “Presentation of Financial Statements”
The revised standard prohibits the presentation of items of comprehensive income and
expenses (referred as ‘non-owner changes in equity’) in the statement of changes in equity.
Non-owner changes in equity are to be presented separately from owner changes in equity
and are required to be disclosed in a “Statement of Comprehensive Income”.
TAS 1(Revised) further requires entities to present a restated balance sheet at the beginning
of comparative period in addition to presenting balance sheets at the end of the current
period and comparative period when entities restate or reclassify comparative information.
The Company did not perform any restatement and reclassification on prior period
comparative information in the current period.
20
2.
2.1
2.1.6. Accounting Policies, adoption of New and Revised Standards and errors (Cont’d)
Standards affecting the presentation of 2009 financial statements and notes (Cont’d)

TAS 1 (Revised) “Presentation of Financial Statements” (Cont’d)
Since the financial statements are prepared in accordance with financial statement format
declared in the appendix of the Communiqué on the Presentation of Financial Statements,
published in the Official Gazette No: 26851 on 18 April 2008, TAS 1 (Revised) has not been
applied in the accompanying financial statements.

TFRS 8 “Operating Segments”
TFRS 8 is an explanatory standard concerning restatement of The Company’s operating
Segments reporting.
TFRS 8 is applied by the Company in 2009. Revised operating segments note is presented in
Note 5. The company decided its operating segments in line with segments used in internal
control to be presented to upper management. According to internal reporting, The Company
decided the operating segments as life, retirement and illness benefit.
Standards and Interpretations effective in 2009 with no impact on the 2009 financial
statements











TFRS 1, “First-time Adoption of International Financial Reporting Standards” and TAS 27,
“Consolidated and Separate Financial Statements” (Amendment relating to cost of an
investment on first-time adoption of TFRS)
TAS 23 (Revised), “Borrowing Costs”
TAS 38, Amendments in “Intangible Assets” Standard
TAS 40, Amendments in “Investment Property” Standard
TAS 20, Amendments in “Accounting for Government Grants and Disclosure of
Government Assistance” Standard
IFRIC 13, “Customer Loyalty Programmes”
TFRS 2, “Share-based Payments” Amendment relating to vesting conditions and
cancellations”
TFRS 5, “Non-current Assets Held for Sale and Discontinued Operations”
TAS 1, Amendments in “Presentation of Financial Statements” and TAS 32, “Financial
Instruments: Presentation” (Explanation of financial instruments with buy back options and
liabilities which may arise during their liquidation)
TAS 32, Amendments in “Financial Instruments: Presentation” and TAS 1, “Presentation of
Financial Statements” – “Financial Instruments for sale in liquidation status and Liabilities”
Standard.
TAS 39, “Financial Instruments: Recognition and Measurement” (Amendments for eligible
hedged items in financial instruments)
21
2.
2.1
2.1.6. Accounting Policies, adoption of New and Revised Standards and errors (Cont’d)
Standards affecting the presentation of 2009 financial statements and notes (Cont’d)




2008 Improvements (TAS 1, “Presentation of Financial Statements”, TAS 16, “Tangible
Assets”, TAS 19, “Employee Benefits”, TAS 20, “Government Grants”, TAS 23,
“Borrowing Costs”, TAS 27, “Consolidated and Individual Financial Statements”, TAS 28,
“Investments in Associates”, TAS 31, “Shares in Business Combinations”, TAS 29,
“Financial Reporting in Hyperinflationary Economies”, TAS 36, “Impairment of Assets”,
TAS 39, “Financial Instruments: Recognition and Measurement”, TAS 40, “Investment
Property”, TAS 41, “Agriculture”)
IFRIC 15, “Agreements for the Construction of Real Estate Project”
IFRIC 16, “Hedges of a Net Investment in a Foreign Operation”
IFRIC 18, “Transfers of Assets from Customers”
Standards, revised standards and interpretations to existing standards that are not yet
effective and have not been early adopted by the Company




TFRS 3, “Business Combinations”, TAS 27, “Consolidated and Individual Financial
Statements”, TAS 28, “Investments in Associates”, TAS 31, “Shares in Business
Combinations” (Comprehensive change in Application of Purchase Method)
TFRS 9, “Financial Instruments: Classification and Measurement”
IFRIC 17, “Distributions of Non-cash Assets to Owners”
IFRIC 19, “Extinguishing Financial Liabilities with Equity Instruments”
Improvements in TFRS (2009)
As a part of yearly improvement project in TFRS, in addition to amendments mentioned
above, many changes occurred in standards and interpretations. These changes should be
applicable for accounting periods beginning on or after 1 January 2010. The Company’s
management has not anticipated yet that the adoption of these Standards and Interpretations
in future periods will have no material impact on the financial statements of the Company
since no early adoption is applied.
22
2.
2.2
Consolidation
In accordance with the Undersecretariat of Treasury’s Circular No: 2007/26 on “Recognition
of Subsidiaries, Associates and Entities Under Common Control” issued on 28 December
2007, subsidiaries, associates and entities under common control should be recognized under
the related standards of Turkish Accounting Standards Board until a new standard will be
issued by the Undersecretariat of Treasury. According to the Communiqué on Consolidated
Financial Reporting of Insurance and Reinsurance Companies and Pension Funds, published
in the Official Gazette No: 27097 (4. Bis) on 31 December 2008, the Company is not
obliged to present consolidated financial statements until 31 March 2010. Parallel to the
announcements mentioned above, the Company account for its affiliate by using cost
method.
2.3
Segment Reporting
The Company is engaged in individual or group private pension, life insurance, and related
accident branches. The Company has segment reporting due to the diversification of the
nature of its products.
2.4
Reserves in Foreign Currencies
The Company’s financial statements are presented in the currency of the primary economic
environment in which the entity operates (its functional currency). The Company’s financial
statements are presented in TRY which is the functional currency.
In preparing the financial statements of the Company, transactions in currencies other than
TRY (foreign currencies) are recognized at exchange rates prevailing at the transaction date.
At each balance sheet date, monetary items denominated in foreign currencies are
recognized at the rates prevailing on the balance sheet date. Non-monetary items carried at
fair value that are denominated in foreign currencies are recognized at the rates prevailing on
the date when the fair value was determined.
2.5
Property, Plant and Equipment
Property, plant and equipment are carried at cost, less any accumulated depreciation and any
impairment loss.
Assets under construction for administrative or any other purposes, and leased assets, are
carried at cost, less any impairment. Legal charges are also added to costs.
Assets, other than land and ongoing constructions, are depreciated over their expected useful
lives by using the straight line method. Estimated useful life, residual value, and depreciation
method are reviewed at the end of each annual reporting period, with the effect of any
changes in estimate being accounted for on a prospective basis.
Assets acquired under finance lease are depreciated as the same basis as property, plant and
equipment or, where shorter, the term of the relevant lease.
Gain or loss arising on the disposal or retirement of an item of property, plant and equipment
is determined as the difference between the sales proceeds and the carrying amount of the
asset and is recognized in profit or loss.
23
2.
2.5
Property, Plant and Equipment (Cont’d)
Property, plant and equipment, based on asset type, are depreciated in the stated periods
below:
Useful Life
50 years
3-16 years
5 years
4-50 years
5 years
Buildings
Machinery and Equipment
Vehicles
Fixtures and Furniture
Leasehold Improvements
2.6
Investment Properties
Investment property is held to earn rentals and/or for capital appreciation is carried at cost
less accumulated depreciation and any accumulated impairment losses. Carrying amount
includes the cost of replacing part of an existing investment property at the time that cost is
incurred if the recognition criteria are met; and excludes the costs of day to day servicing of
an investment property. Depreciation is provided on investment property on a straight line
basis. Depreciation period for investment property is nil for land, and 50 years for buildings.
Investment properties are derecognized when either they have been disposed of or when the
investment property is permanently withdrawn from use and no future economic benefit is
expected from its disposal. Any gains or losses on the retirement or disposal of an
investment property are recognized in profit or loss in the year of retirement or disposal.
Transfers are made to or from investment property only when there is a change in use.
2.7
Intangible Assets
Purchased intangible assets are accounted at cost at the initial recognition. Purchased
intangible assets are accounted at cost, less accumulated amortization and accumulated
impairment losses. Amortization is charged on a straight-line basis over their estimated
useful lives. Estimated useful life and amortization method are reviewed at the end of each
annual reporting period, with the effect of any changes in estimate being accounted for on a
prospective basis.
Purchased computer software licenses are capitalized on the basis of the costs incurred from
the date of acquisition to the date to bring the specific software in use. These costs are
amortized over their estimated useful lives (3 years).
24
2.
2.7
Intangible Assets (Cont’d)
Costs associated with developing or maintaining computer software programs are recognized
as expense when incurred. Costs that are directly associated with the development of
identifiable and unique software products that are controlled by the Company and will
probably provide more economic benefits than costs in one year are recognized as intangible
assets. Costs include software development employee costs and an appropriate portion of
relevant overheads. Computer software development costs recognized as assets are
amortized over their estimated useful lives (not exceeding three years).
2.8
Financial Assets
Investments are recognized and derecognized on a trade date where the purchase or sale of
an investment under a contract whose terms require delivery of the investment within the
timeframe established by the market concerned, and are initially measured at fair value, net
of transaction costs except for those financial assets classified as at fair value through profit
or loss, which are initially measured at fair value.
Financial assets are classified into the following specified categories: financial assets as “at
fair value through profit or loss” (“FVTPL”), “held-to-maturity investments”, “available-forsale (“AFS”) financial assets” and “loans and receivables”.
Effective interest method
Effective interest method is a method of calculating the amortized cost of a financial asset
and of allocating interest income over the relevant period. The effective interest rate is the
rate that exactly discounts estimated future cash receipts through the expected life of the
financial asset, or, where appropriate, a shorter period.
Financial assets at fair value through profit or loss (Held-for-trading financial assets)
Financial assets at fair value through profit or loss are financial assets held for trading. A
financial asset can be classified as financial asset at fair value through profit or loss, if it is
acquired principally for the purpose of selling in the short-term. Derivatives are also
classified as held for trading unless they are designated as hedging instruments.
Held-to-maturity investments
Investments in debt securities with fixed or determinable payments and fixed maturity dates
that the Company has the positive intent and ability to hold to maturity are classified as
held-to-maturity investments. Held-to-maturity investments are recorded at amortized cost
using the effective interest method less impairment, with revenue recognized on an effective
yield basis.
25
2.
2.8
Financial Assets (Cont’d)
Available-for-sale financial assets
Quoted equity investments and quoted certain debt securities held by the Company that are
traded in an active market are classified as available- for-sale financial assets and are stated
at fair value. The Company also has investments in unquoted equity investments that are not
traded in an active market but are also classified as available-for-sale financial assets and
stated at cost since their value cannot be reliably measurable. Gains and losses arising from
changes in fair value are recognized under equity and accumulated in the investments
revaluation reserve with the exception of impairment losses, interest calculated using the
effective interest method, and foreign exchange gains and losses on monetary assets, which
are recognized in profit or loss. Where the investment is disposed of or is determined to be
impaired, the cumulative gain or loss previously accumulated in the investments revaluation
reserve is reclassified to profit or loss.
Dividends related with available-for-sale financial assets realized under equity are
accounted for in profit and loss when there is a possibility of getting dividends.
Financial Assets and Investments with Risks on Policy Holders
Financial assets and investments with risks on policy holders are classified as “available for
sale” and “held to maturity” financial assets. Assets that are classified as available for sale
are carried at fair value; valuation difference arising from amortized cost is recognized in the
statement of income, 5% of the fair value and amortized cost difference is recognized under
equity and 95% of the difference which is attributable to policy holders is recognized under
the “Life Mathematical Reserves” account in Insurance Technical Reserves.
Loans and receivables
Trade receivables, loans, and other receivables that have fixed or determinable payments
that are not quoted in an active market are classified as ‘loans and receivables’. Loans and
receivables are measured at amortized cost using the effective interest method, less any
impairment.
2.9.
Impairment of Assets
Impairment of Non-financial Assets
Assets that are subject to amortization are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable. An
impairment loss is recognized for the amount by which the asset’s carrying amount exceeds
its recoverable amount. Recoverable amount is the higher of an asset’s fair value less costs
to sell and value in use. For the purposes of assessing impairment, assets are grouped at the
lowest levels for which there are separately identifiable cash flows (cash-generating units).
Non-financial assets that subject to impairment are reviewed for possible reversal of the
impairment at each reporting date.
26
2.
2.9
Impairment of Assets (Cont’d)
Impairment of financial assets
The Company assesses its financial assets, other than those at FVTPL, at each balance sheet
date whether there is any objective evidence that a financial asset or group of financial assets is
impaired. A financial asset or portfolio of financial assets is impaired and an impairment loss
incurred if there is objective evidence that an event or events since initial recognition of the
asset have adversely affected the amount or timing of future cash flows from the asset. For
loans and receivables, the amount of the impairment is the difference between the asset’s
carrying amount and the present value of estimated future cash flows, discounted at the
original effective interest rate.
Changes in the carrying value of the allowance are recognized in profit or loss.
With the exception of AFS equity instruments, if, in a subsequent period, the amount of the
impairment loss decreases and the decrease can be related objectively to an event occurring
after the impairment was recognized, previously recognized impairment loss is reversed
through profit or loss to the extent that the carrying amount of the investment at the date the
impairment is reversed does not exceed what the amortized cost would have been had the
impairment not been recognized.
For AFS equity securities, any increase in fair value subsequent to an impairment loss is
recognized directly in equity.
2.10
Derivative Financial Instruments
As of the balance sheet date, the Company has no derivative financial instruments.
2.11
Offsetting
Financial assets and liabilities are offset when the Company has a legally enforceable right to
set off the recognized amounts and has an intention to settle or realize the asset on a net basis
and settle the liability simultaneously.
2.12
Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand and demand deposits and other short-term
highly liquid investments which their maturities are three months or less from date of
acquisition and that are readily convertible to a known amount of cash and are subject to
insignificant risk of changes in value.
27
2.
2.13
Share Capital
The Company has accepted the registered capital system set out in accordance with the
provisions of Law No: 2499 and applied the system as of 15 June 2000 upon the permission
no: 67/1039 granted by the Capital Markets Board.
As of 31 December 2009, the Company's registered capital is TRY 300.000.000 (31
December 2008: TRY 300.000.000)
As of 31 December 2009, the Company’s issued capital is TRY 250.000.000 (31 December
2008: TRY 250.000.000)
As of balance sheet date, profit reserves amounting to TRY 95.429.217 comprise of legal
reserves, statutory reserves, extraordinary reserves and valuation of financial assets. Legal
reserves are funded in accordance with the requirements of Law where, statutory reserves are
funded under the requirements of articles of association of the Company. Extraordinary
reserves are funded based on the General Assembly’s decision for the use of capital addition,
dividend distribution or similar activities. Revaluation of financial assets item includes net
amount of the difference between the fair value and amortized cost of available for sale
financial assets, less any deferred tax effects. For available for sale financial assets and
investments with risks on policy holders, the corresponding portion of which equals to the
5% of the difference between the fair value and amortized cost is considered.
2.14
Insurance and Investment Contracts - Classification
Insurance Contracts:
Insurance contracts are contracts in which one part accepts a significant insurance risk and
pays compensation (insurer) to the other part (insuree) when any uncertain case affects the
insuree. The Company enters into reinsurance agreements in which the Company (ceding
company) is compensated by the insurer (reinsurer company) for one or more claims.
Insurance contracts entered into by the Company under which the contract holder is another
insurer (reinsurance) are included in insurance contracts.
Insurance contracts are accounted when the insurance risk is transferred, and classified as an
insurance contract as of the maturity date and/or amortization of the all contractual rights
and liabilities.
Investment Contracts:
The accumulation component present in life insurance products is measured by the Company
on a separate basis. On the other hand, as the accounting policies require the recognition of
rights and obligations related with the accumulation component, regardless of the
measurement principles, the insurance and investment components are not decomposed.
28
2.
2.15
Insurance and Investment Contracts With Discretionary Participation
Features
None noted.
2.16
Investment Contracts without Discretionary Participation Features
None noted.
2.17
Borrowings
The Company has no borrowings, except finance leasing liabilities.
2.18
Deferred Income Tax
Deferred tax is recognized on differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases which is used in the
computation of taxable profit, and is accounted for using the balance sheet liability method.
Deferred tax liabilities are generally recognized for all taxable temporary differences and
deferred tax assets are recognized for all deductible temporary differences to the extent that
it is probable that taxable profits will be available against which those deductible temporary
differences can be utilized. Such assets and liabilities are not recognized if the temporary
difference arises from goodwill or from the initial recognition (other than in a business
combination) of other assets and liabilities in a transaction that affects neither the taxable
profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and
reduced to the extent that it is no longer probable that sufficient taxable profits will be
available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in
the period in which the liability is settled or the asset realized, based on tax rates (and tax
laws) that have been enacted or substantively enacted by the balance sheet date. The
measurement of deferred tax liabilities and assets reflects the tax consequences that would
follow from the manner in which the Company expects, at the reporting date, to recover or
settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset in the accompanying financial statements.
Deferred tax for the current period, except for those that are associated with items that are
directly recognized as receivables or payables in equity (the related deferred tax is also
recognized directly in equity), is recognized as profit or loss in the statement of income.
2.19.
Employee Benefits
Under the Turkish law and union agreements, lump sum payments are made to employees
retiring or involuntarily leaving the Company. Such payments are considered as being part
of defined retirement benefit plan in accordance with TAS 19 “Employee Benefits”. The
retirement benefit obligation recognized in the balance sheet represents the present value of
the defined benefit obligation as adjusted for unrecognized actuarial gains and losses.
29
2.
2.20.
Provisions
Provisions are recognized when the Company has a present obligation as a result of a past
event, and it is probable that the Company will be required to settle that obligation, and a
reliable estimate can be made of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to
settle the present obligation at the balance sheet date, taking into account the risks and
uncertainties surrounding the obligation.
Where a provision is measured using the cash flows estimated to settle the present
obligation, the carrying amount of the provision is equal to the present value of those cash
flows.
When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, the receivable is recognized as an asset if it is virtually certain
that reimbursement will be received and the amount of the receivable can be measured
reliably.
As of the balance sheet date, 61 cases amounting to TRY 1.042.377 are filed against the
Company. Provision of TRY 1.661.109 (31 December 2008: TRY 1.381.053) is calculated
including interests for the cases which are likely to bear the obligation to pay. 23 cases were
filed against third parties which amounting to TRY 800.642. The amount of cases filed
and/or expected to be filed against the Company in the subsequent period is not found.
2.21.
Revenue Recognition
Premium and Commission Revenue
Premium income consists of installment amounts of accumulated life insurance policies
issued in current or prior period(s), less any shares transferred to reinsurers. In life branch,
premium income is accrued on a timely basis when the related premiums are due. In
elementary branches, premium amount accrued is either collected in cash in total or 20% of
this amount is collected in cash and the remaining is collected in five equal installments.
The Company provides provision for agency commissions based on insurance premiums that
are accrued but not yet collected as at the balance sheet date in order to be complient with
the matching principle of accounting. For the non-life branches, no provision for agency
commissions is provided, whereas for the life branch it is calculated on policy basis for an
amount of commission payable for accrued but not yet collected receivables.
Reinsurance commissions are accounted for based on reinsurer agreements. According to the
Circular no: 2007/25 issued by the Prime Ministry Undersecretariat of the Treasury of the
Turkish Republic on 28 December 2007, starting from 10 January 2008, deferred reinsurance
commissions are presented in “Deferred Income” account in the balance sheet.
30
2.
2.21
Revenue Recognition (Cont’d)
Income from Pension Operations
To meet pension operations charges, the Company makes expense deductions within the
limits allowed by the regulations.
A maximum rate of 8% deductions over the contributions of the participants that are made to
pension accounts are presented in “Management Fee Deduction” account.
Fund management fees at a maximum rate of 0,01 % over the net asset value of the fund is
recorded in “Fund Management Fee” account.
If the participants leave the system within the minimum days mentioned in the pension
agreements or if they demand to transfer their savings to another company, an initial
contribution fee is received not exceding monthly minimum wage amount and these fees are
recorded in “Initial Contribution Fee” account.
Interest Income and Expense
Income related to financial assets other than financial assets classified at fair value through
profit and loss is calculated by using the effective interest method as prescribed in TAS 39
“Financial Instruments: Recognition and Measurement”. Financial assets at fair value
through profit and loss are classified as held for trading financial assets. Gain or loss on held
for trading financial assets is measured considering their fair values.
Held-to-maturity investments are recorded at amortized cost using the effective interest
method less impairment, with revenue recognized on an effective yield basis.
Available-for-sale investments and are measured at fair value except available-for-sale
investments that do not have quoted prices in an active market and their fair value cannot be
reliably measured are stated at cost. Gains and losses arising from changes in fair value are
included in profit or loss for the period. For available-for-sale investments, gains and losses
arising from changes in fair value are recognized directly in equity, until the security is
disposed of or is determined to be impaired, at which time the cumulative gain or loss
previously recognized in equity is included in the profit or loss for the period. Impairment
losses recognized in profit or loss for equity investments classified as available-for-sale are
not subsequently reversed through profit or loss. Impairment losses recognized in profit or
loss for debt instruments classified as available-for-sale are subsequently reversed if an
increase in the fair value of the instrument can be objectively related to an event occurring
after the recognition of the impairment loss.
31
2.
2.21
Revenue Recognition (Cont’d)
Investments with risks on policy holders are classified as available for sale or held to
maturity financial assets. Available for sale assets are carried at fair value; valuation
difference arising from amortized cost is recognized in the statement of income. 5% of the
difference between the fair value and amortized cost is recognized under equity and 95% of
this amount which is attributable to policy holders is recognized under the Insurance
Technical Reserves account. Assets with no fair value are carried at amortized cost using the
effective interest method.
Affiliates are equity shares that retain at least 10% of voting rights or has significant power
over another entity. The difference between carrying value and fair value (to the extent that it
is measured reliably) of such assets are recognized in shareholders’ equity and assets that
have fair value are carried at fair value while the other assets are carried at book value.
Interest income is accounted on accrual basis by using effective interest rate method.
2.22
Financial Leasing – The Company as Lesser
Leasing – the Company as lessee:
Leases are classified as finance leases whenever the terms of the lease transfer substantially
all the risks and rewards of ownership to the lessee. All other leases are classified as
operating leases.
Assets held under finance leases are recognized at lower of the fair value atthe inception of
the lease or the present value of the minimum lease payments. The corresponding liability to
the lesser is included in the balance sheet as a finance lease obligation. Lease payments are
apportioned between finance charges and reduction of the lease obligation so as to achieve a
constant rate of interest on the remaining balance of the liability. Finance charges are charged
to profit or loss, unless they are directly attributable to qualifying assets, in which case they
are capitalized in accordance with the Company’s general policy on borrowing costs.
Rentals payable under operating leases are charged to profit or loss on a straight-line basis
over the term of the relevant lease.
Leasing – the Company as lesser:
The Company has no leasing receivables.
2.23
Profit Share Distribution
In accordance with the Articles of Association of the Company, first dividend distribution is
made from distributable profit based on the rates and amounts set out by the Capital Markets
Board. In regards to the profit share distribution policy of the Company, two options are
presented to the BOD - 30% of distributable profit at a minimum as bonus shares or in cash.
Based on its articles of association, the Company makes at a maximum of 3% of profit share
payments to its employees following the appropriation of first profit share, limited to a
maximum of three months salary.
Dividend payables are recorded as liability in the financial statements when they are
disclosed.
32
2.
2.24.
Effects of Changes in Foreign Exchange Rates
The Company, values its assets denominated in foreign currencies by using foreign exchange
purchase rate announced by Central Bank of Turkish Republic and its liabilities denominated
in foreign currencies by using foreign exchange sale rate announced by Central Bank of
Turkish Republic as of the balance sheet date. As an exception, according to Insurance
Regulation technical reserves are valued by using foreign exchange purchase rate. Foreign
exchange gain and loss derived from these transactions are added to Profit and Loss table.
2.25.
Claims
Claims are recognized as expense as they are paid. Outstanding claims provision is provided
for both reported unpaid claims at period-end and incurred but not reported claims.
Reinsurer’s shares of claims paid and outstanding claims provisions are off-set against these
reserves.
2.26.
Earnings per Share
Earnings per share presented in the income statement is calculated by dividing the net profit
into the weighted average number of the outstanding shares throughout the financial year.
Companies in Turkey can increase their capital by distributing “bonus shares” to
shareholders from the prior periods’ profit. Such “bonus share” distributions are considered
as issued shares in the earnings per share calculations. Accordingly, weighted average
number of equity shares used in the calculations is calculated by considering the
retrospective effects of share distributions.
2.27.
Subsequent Events
Subsequent events cover the events between the balance sheet date and the issuance of the
financial statements, even if they are occurred subsequent to the disclosures made on profit
or other selected financial information.
The Company adjusts its financial statements in the occurrence of any adjusting subsequent
event.
3.
Significant Accounting Estimates and Requirements
The most important uncertainties in the Company’s assumptions and estimations concerning
the future are estimating the liabilities which may result from the policies in force.
Assumptions concerning technical reserve calculations are given in Note 2.1.2.
33
4.
Insurance and Financial Risk Management
4.1.
Insurance Risk
4.1.1.
Objective of managing risks arising from insurance contracts and policies used to
minimize such risks
Insurance risk is defined as coverage for exposures that exhibit a possibility of financial loss
due to applying inappropriate and insufficient insurance techniques. In line with the nature of
an insurance contract, as the risk is coincidental, the risk amount cannot be predictable.
Insurance risk represents the possibility of the non coverage of the claims paid by the
premiums collected.
As of 31 December 2009, the Company’s life insurance claims/premiums ratio stands at
25%. Low claims/premiums ratio, which is calculated by the proportion of claims to risk
premiums collected, indicates that the Company makes significant profit. The Company
adopts central risk assessment policy. The Company applies this policy to the all marketing
channels produced. In its life policy production, the Company has no sales channel with
continuous risk exposure. The Company analyzes its claims/premiums ratio periodically in
order to identify its insurance risks. As of 31 December 2009, the Company’s personal
accident insurance claims/premiums ratio is 12%. Since personal accident insurance
portfolio has an insignificant share in the Company’s general portfolio, this ratio would be
low when no compensation is paid and this ratio would be high when compensation is paid.
Claims/Premium ratio of the Company as of the financial statement period is presented
below:
31 December
2009
25 %
12 %
Life Insurance
Personal Accident
31 December
2008
25 %
2%
The Company shares its significant risks associated with natural disasters, such as;
earthquake, terrorism or large-scale accidents, with reinsurers by entering into catastrophic
excess of loss agreements.
As of 31 December 2009, risk portion transferred to reinsurers in terms of risk guarantee is
presented as below:
Death by
natural cause
Death by
accident
Disability by
accident
Disability by
illness
5%
24 %
38 %
35 %
As of 31 December 2008, risk portion transferred to reinsurers in terms of risk guarantee is
presented as below:
Death by
natural cause
Death by
accident
Disability by
accident
Disability by
illness
6%
15 %
21 %
20 %
34
4.
Insurance and Financial Risk Management (Cont’d)
4.1.
Insurance Risk (Cont’d)
4.1.2
Objective of managing risks arising from insurance contracts and policies used to
minimize such risks (Cont’d)
4.1.2.1. Sensitivity to insurance risk
The Company’s policy production strategy follows an effective risk management in the
policy production process considering the nature, extent, and accurate distribution of the risk
incurred.
Reinsurer agreements include claims surplus, excess of loss and quota reinsurances. As a
result of these agreements, if the Company’s “death by natural cause” risk account exceeds
TRY 120.000 or “death by accident” risk account exceeds TRY 250.000 in its individual life
branch in 2009, the Company transfers the exceeding claim payments to reinsurers. The
Company also transfers the exceeding claim payments to reinsurers if the Company’s “death
by natural cause” risk account exceeds TRY 130.000 or “death by accident” risk account
exceeds TRY 260.000 for its group life policies.
Outstanding claims are reviewed and updated periodically by the experts of the Company’s
Claims Department.
4.1.2.2. Determination of insurance risk concentrations by management and the common
characteristics of insurance risk concentrations (nature, location and currency)
The Company has life and personal accident branch policies. The Company’s gross and net
insurance risk concentrations (after reinsurance) in terms of insurance branches are
summarized as below:
31 December 2009:
Branches
Life Insurance
Personal Accident
Total
Total Gross Risk
Liability(*)
Reinsurer’s Share of
Risk Liability
The Company’s Net
Claims Liability
25.287.138.417
1.656.196.750
26.943.335.167
3.441.283.918
644.222.015
4.085.505.933
21.845.854.499
1.011.974.735
22.857.829.234
Total Gross Risk
Liability(*)
Reinsurer’s Share of
Risk Liability
The Company’s Net
Claims Liability
18.635.652.713
1.559.346.688
20.194.999.401
1.844.361.169
546.415.299
2.390.776.468
16.791.291.544
1.012.931.389
17.804.222.933
(*) Represents the maximum insurance amount.
31 December 2008:
Branches
Life Insurance
Personal Accident
Total
(*)Represents the maximum insurance amount.
The Company issues insurance contracts mainly in Turkey. Gross and net insurance risk
concentrations of the insurance contracts (after reinsurance) based on geographical regions
are summarized as below:
35
4.
4.1
4.1.2. Objective of managing risks arising from insurance contracts and policies used to
4.1.2.2 Determination of insurance risk concentrations by management and the common
characteristics of insurance risk concentrations (nature, location and currency)
(Cont’d)
Total Claims Liability (*)
31 December 2009
Marmara Region
Aegean Region
Middle Anatolian Region
Mediterranean Region
Black Sea Region
East Anatolian Region
South East Anatolian Region
Foreign countries (other)
Total
Total Gross
Claims Liability
19.391.796
7.194.706
8.577.362
5.674.997
4.376.646
2.131.915
2.368.576
1.855.698
51.571.696
Reinsurance
Share of Total
Claims Liability
419.977
378
139
121
44
3
148
8
420.818
Total
Net Claims
Liability
18.971.819
7.194.328
8.577.223
5.674.876
4.376.602
2.131.912
2.368.428
1.855.690
51.150.878
(*)Total claims liability includes the actual estimated compensation amounts. IBNR provision and
outstanding claims adequacy provision are not included in the calculation.
As of the balance sheet date, the Company’s outstanding claims reserve consists of TRY and
foreign currency denominated policies. 99,8% of such policies are in TRY and the remaining
0,2% of them are denominated in Euro, US$ and GBP. Calculation is made based on the
outstanding claims reserve; IBNR provision and outstanding claims adequacy provision is
not included in the calculation.
4.1.2.3. Comparison of incurred claims with past estimations
Outstanding claims reserve adequacy table in terms of branches is presented below. The
table shows outstanding claims reserve adequacy rate which is the proportion of total
outstanding claims reserve that the Company provided in the last 5 years to total
compensation amount actually paid including all expenses related to the claims. When the
arithmetical average of the last 5 years of the separately calculated outstanding claims
reserve adequacy rate, excluding the current financial year, is below 95%, the amount of
adequacy rate difference is calculated by multiplying the difference between the related rate
and 95% by the current year’s outstanding claims reserve.
Rate
Outstanding claims adequacy rates
Life
Accrued
Incurred but not reported
Personal Accident
Accrued
Incurred but not reported
% 376
% 97
% 21.633
% 76
36
4.
4.1
4.1.2. Objective of managing risks arising from insurance contracts and policies used to
4.1.2.4 Effects of the changes in assumptions used in the measurement of insurance assets and
liabilities showing the effect of each change separately that has significant effect on
financial statements
In the current year, there are no material changes in the assumptions of measurement of
insurance assets and liabilities.
4.2.
Financial Risk
The Company’s aim in capital management is to ensure the Company’s permanence as a
profitable company, to regard the benefits of individual and corporate shareholders and to
obtain the continuity of the most efficient capital structure to reduce the cost of capital.
The Company is subject to market risk (exchange rate risk, interest rate risk, and price risk),
liquidity risk and credit risk due to its financial assets and liabilities. The Company’s risk
management program focuses on minimizing the negative effects of the ambiguities in
financial markets on the Company’s financial statements. The Company is mostly exposed to
interest risk and price risk in relation with financial investments, to credit risk in relation
with insurance receivables and exchange rate risk due to policies and assets in foreign
currencies.
The risk is managed by a specific department which is in line with the approved policies by
the Board of Directors. Several risk policies have been prepared by the Board of Directors in
order to manage the exchange risk, interest risk, credit risk, using the derivative and nonderivative financial instruments risks.
37
4.
4.2
Financial Risk (Cont’d)
The capital adequacy of the Company is calculated in accordance with the Decree
“Measurement and Assessment of Capital Adequacy of Insurance and Reinsurance
Companies and Pension Funds” in all reporting periods. The Company’s recent capital
adequacy table prepared as of the report date for December 2009 is summarized below. As
of 31 December 2009, the capital adequacy of the Company is TRY 102.946.165 and TRY
68.225.371; respectively based on first and second method. By the table below, it is observed
that capital adequacy balances calculated by using first and second methods are less than the
Company’s capital as of 31 December 2009. The Company’s capital calculated based on the
regulation as of 31 December 2009 is TRY 429.892.005. Consequently, the Company’s
capital is adequate.
CAPITAL ADEQUACY TABLE
31 December
2009
1. Method
Required Capital For Non-Life Branches
Required Capital For Life Branch
Required Capital For Pension Branch
Required Capital Based on the First Method
2. Method
Asset Risk
Reinsurance Risk
Excessive Premium Increase
Outstanding Claims Risk
Underwriting Risk
Exchange Rate Risk
Required Capital Based on the Second Method
Capital
Required Capital Amount for the Company
Limit Gap
31 December
2008
28.753
96.160.222
6.757.190
102.946.165
37.191
78.870.306
5.181.501
84.088.998
26.273.660
903.618
14.656.757
1.348.604
24.745.102
297.630
68.225.371
429.892.005
102.946.165
326.945.840
25.354.663
140.842
18.007
186.673
17.131.539
531.383
43.363.107
349.939.874
84.088.998
265.850.876
The Company has no capital requirement due to external reasons, in the current period.
38
4.
4.2
The Company’s total Value at Risk is TRY 1.068.586 and presented based on the financial
asset group in the below table:
Value At Risk
31 December 2009
31 December 2008
857.391
857.391
4.977
4.977
412.594
412.594
(206.376)
1.068.586
2.094.706
2.094.719
49
(62)
55.624
55.624
795.511
795.511
(624.800)
2.321.041
TRY Transactions
TRY Marketable Securities
Repo and Reverse Repo
Effect of Portfolio Diversity
FC Transactions
Foreign Currency Position
Equity Shares
Held-for-trading Securities
Effect of Portfolio Diversity
Total
The Company has performed scenario analysis and stress tests in order to identify the effects
of potential loss events with remote possibility over the value-at-risk. The Company has
assessed its possible economic losses that may result from extraordinary market fluctuations
by performing scenario analysis. Based on the Company’s estimations, in case of a worstcase scenario situation, the Company’s portfolio value loss would be TRY 10.498.146 (31
December 2008: TRY 15.359.584). The effect of value loss to the Company’s equity is
2,44% as of 31 December 2009 (31 December 2008: 4,39%). Therefore, the Company has
adequate equity capacity to recover the potential risks that may result from extraordinary
market fluctuations. As of 31 December 2009, rates used in the worst-case scenario that may
increase the extent of loss in the Company’s free portfolio assets are presented below.
Foreign Currency
Interest Rates
1,12097
Euro
Rates
0,88456
USD
Rates
0,88194
TRY
Interest Rates
1,37373
ISE 100
Index
0,81000
Interest rate risk
Interest rate risk represents the potential for losses in the value of interest sensitive assets or
liabilities arising from changes in interest rates. Interest rate risk is managed through the
diversification of marketable security portfolio as marketable securities with fixed and
variable interest rates.
39
4.
4.2
Interest rate risk (cont’d)
Financial assets which are sensitive to the changes in interest rates are given in the table
below:
Interest Rate Position Table (Market Value)
Fixed rate financial instruments
Financial assets
Held-for-trading financial assets
Available-for-sale financial assets
Financial liabilities
Variable rate financial instruments
Financial assets
31 December 31 December
2009
2008
1.197.305.750 1.094.802.785
59.380.293
63.668.709
1.031.134.076
1.137.925.457
153
921
1.011.773.254
760.715.178
1.011.773.254
760.715.178
-
-
As of 31 December 2009, if TRY interest rates increase/decrease by 1 and 5 points and all
other variables remain constant, net changes in the Company’s free portfolio would be as
follows:
TRY Interest
TRY Interest
(1 Point increase) (1 Point decrease)
(2.351.510)
2.394.358
TRY Interest
(5 points increase)
(11.352.627)
TRY Interest
(5 points decrease)
12.429.122
As of 31 December 2008, if TRY interest rates increase/decrease by 1 and 5 points and all
other variables remain constant, net changes in the Company’s free portfolio would be as
follows:
TRY Interest
TRY Interest
(1 Point increase) (1 Point decrease)
(2.288.330)
2.331.840
TRY Interest
(5 points increase)
(11.029.985)
40
TRY Interest
(5 points decrease)
12.120.047
4.
4.2
As of 31 December 2009, interest rate sensitivity of assets and liabilities are shown as below:
Up to 1
month
1 to 3
months
3 to 12
months
1 to 5 years
More than 5
years
Non-Interest
Bearing
Total
34.849.285
36.837.672
4.001.056
-
-
45.855.825
121.543.838
267.730.217
753.340.542
555.933.495
444.531.898
187.969.196
106.871.094
2.316.376.442
-
-
-
-
-
1.960.342.177
1.960.342.177
4.203.419
-
712.900
-
-
-
587.012
712.900
4.790.431
25.228
-
50.454
-
164.800
-
-
-
3.199.434
153.208
5.762.193
22.053.735
3.439.916
153.208
5.762.193
22.053.735
Intangible Assets
-
-
-
-
-
1.970.323
1.970.323
Prepaid Expenses and
Income Accruals
Deferred Tax
-
-
-
-
-
8.529
900.361
8.529
900.361
306.808.149
790.228.668
560.812.251
444.531.898
187.969.196
2.147.703.891
4.438.054.053
153
-
-
-
-
(153)
-
3.114.575
-
481.583
-
-
1.989.060.718
1.992.656.876
3.639.486
-
-
-
-
2.143
7.578.325
2.143
11.217.811
-
-
-
-
-
1.994.474.609
1.994.474.609
4.953.581
-
-
-
-
(293.966)
4.659.615
642.049
-
-
-
-
1.121.543
1.763.592
-
-
-
-
-
51
51
-
-
-
-
-
3.387.351
429.892.005
3.387.351
429.892.005
Assets
Cash and Cash
Equivalents
Financial Assets and
Investments with Risks
on Policy Holders
Receivables from Main
Activities
Receivables from
Related Parties
Other Receivables
Prepaid Expenses and
Income Accruals
Other Current Assets
Financial Assets
Tangible Assets
Total Assets
Liabilities
Financial Liabilities
Payables from Main
Activities
Payables to Related
Parties
Other Liabilities
Insurance Technical
Reserves
Taxes and Other
Liabilities and
Provisions
Deferred Income and
Expense Accruals
Other Short-Term
Liabilities
Provisions for Other
Risks
Shareholders’ Equity
Total Liabilities
Net Position
12.349.844
-
481.583
-
-
4.425.222.626
4.438.054.053
294.458.305
790.228.668
560.330.668
444.531.898
187.969.196
(2.277.518.735)
-
41
4.
4.2
As of 31 December 2008, interest rate sensitivity of assets and liabilities are shown as below:
Up to 1
month
1 to 3
months
3 to 12
months
1 to 5 years
More than
5 years
Non-Interest
Bearing
Total
71.454.089
-
-
-
-
3.794.869
75.248.958
71.552.132
249.333.394
481.251.753 1.093.893.638
-
52.953.153 1.948.984.070
Receivables from Main Activities
-
-
-
-
-
1.330.947.030 1.330.947.030
Receivables from Related Parties
-
-
104.680
-
-
104.680
3.054.912
-
-
-
-
541.955
3.596.867
991.152
-
309.953
-
-
1.495.473
2.796.578
-
-
-
-
-
8.123.784
8.123.784
Financial Assets
-
-
-
-
-
3.962.193
3.962.193
Tangible Assets
-
-
-
-
-
22.775.272
22.775.272
Intangible Assets
-
-
-
-
-
1.624.290
1.624.290
Prepaid Expenses and Income
Accruals
-
-
-
-
-
13.778
13.778
Deferred Tax
-
-
-
-
-
1.736.549
1.736.549
Total Assets
147.052.285
249.333.394
481.666.386 1.093.893.638
-
Assets
Financial Assets and Investments
with Risks on Policy Holders
Other Receivables
Accruals
1.427.968.346 3.399.914.049
Liabilities
-
230
537
154
-
(921)
-
1.940.398
-
459.160
-
-
1.349.745.433
1.352.144.991
-
1.664
-
-
-
-
1.664
1.297.390
-
-
-
-
6.781.454
8.078.844
-
-
-
-
-
4.211.849
-
-
-
-
11.038.996
15.250.845
913.250
-
-
-
-
886.736
1.799.986
Other Short-Term Liabilities
-
-
-
-
-
42
42
Provisions for Other Risks
-
-
-
-
-
2.857.469
2.857.469
-
-
-
-
-
349.939.874
349.939.874
8.362.887
1.894
459.697
154
-
138.689.398
249.331.500
Payables from Main Activities
Payables to Related Parties
Other Liabilities
Insurance Technical Reserves
Taxes and Other Liabilities and
Provisions
Deferred Income and Expense
Accruals
Total Liabilities
Net Position
481.206.689 1.093.893.484
42
1.669.840.334 1.669.840.334
3.391.089.417 3.399.914.049
- (1.963.121.071)
-
4.
4.2
Exchange rate risk
Exchange rate risk is defined as the loss risk exposure due to changes from exchange rates
based on the differences between the Company’s foreign currency denominated assets,
liabilities and off-balance sheet liabilities. The details of foreign currency denominated
assets and liabilities as of 31 December 2009 are presented below:
Foreign Currency Position Table
Current Period (31 December 2009)
Total TRY Equivalent
(Functional currency
unit)
1. Banks
USD
EUR
GBP
CHF
JPY
549.456
187.719
353.563
7.803
371
-
2. Financial Assets and
Investments With Risks on
Policy Holders
3.1. Receivables From Insurance
Activities
242.495.003
162.484.134
70.345.618
9.665.251
-
-
677.804
522.624
149.912
5.268
-
-
3.2. Receivables From Reinsurer
69.056
-
69.056
-
-
-
4. Rent receivables
4.600
4.600
-
-
-
-
5. Deposits Given
21.807
21.807
-
-
-
-
6. Current Assets (1+2+3+4+5)
243.817.726
163.220.884
70.918.149
9.678.322
371
-
7. Total Assets
243.817.726
163.220.884
70.918.149
9.678.322
371
-
153
153
-
-
-
-
63.021
61.282
-
1.051
93
595
8. Payables to Leasing
9. Payables to Reinsurers
10. Agency Guarantees
145.988
131.757
14.231
-
-
-
11. Technical Reserves
224.678.694
150.203.657
65.568.516
8.724.157
32.052
150.312
12. Short-term Liabilities
(8+9+10+11)
224.887.856
150.396.849
65.582.747
8.725.208
32.145
150.907
13. Total Liabilities
224.887.856
150.396.849
65.582.747
8.725.208
32.145
150.907
Net Foreign Currency Position
(6-12)
18.929.870
12.824.035
5.335.402
953.114
(31.774)
(150.907)
Monetary Assets Net Foreign
Currency Asset/(Liability)
Position (=1+2+3+4-8-9-10-11)
18.908.063
12.802.228
5.335.402
953.114
(31.774)
(150.907)
The Company is mainly exposed to exchange risk of USD, GBP and EUR. The Company's
foreign currency denominated assets and liabilities are presented under Notes 11, 12 and 14.
43
4.
4.2
Exchange rate risk (Cont’d)
The details of foreign currency denominated assets and liabilities as of 31 December 2008
are presented below:
Foreign Currency Position Table
Prior Period (31 December 2008)
Total TRY Equivalent
(Functional currency
unit)
1. Banks
2. Financial Assets and
Investments With Risks on
Policy Holders
3. Receivables From Insurance
Activities
USD
EURO
GBP
CHF
JPY
1.828.890
846.718
884.797
91.591
5.784
-
176.728.463
120.766.781
52.200.550
3.761.132
-
-
871.916
634.957
223.759
13.200
-
-
173.490
-
173.490
-
-
-
21.467
21.467
-
-
-
-
6. Current Assets (1+2+3+4+5)
179.624.226
122.269.923
53.482.596
3.865.923
5.784
-
7. Total Assets
179.624.226
122.269.923
53.482.596
3.865.923
5.784
-
921
921
-
-
-
-
21.071
18.339
-
2.294
210
228
10. Agency Guarantees
141.650
126.283
15.367
-
-
-
11. Technical Reserves
189.615.303
131.524.055
54.284.640
3.561.523
41.926
203.159
12. Short-term Liabilities
(8+9+10+11)
189.778.945
131.669.598
54.300.007
3.563.817
42.136
203.387
13. Total Liabilities
189.778.945
131.669.598
54.300.007
3.563.817
42.136
203.387
(10.154.719)
(9.399.675)
(817.411)
302.106
(36.352)
(203.387)
(10.176.186)
(9.421.142)
(817.411)
302.106
(36.352)
(203.387)
4. Receivables From Reinsurer
5. Deposits Given
8. Payables to Leasing
9. Payables to Reinsurers
Net Foreign Currency Position
(6-12)
Monetary Assets Net Foreign
Currency Asset/(Liability)
Position (=1+2+3+4-8-9-10-11)
44
4.
4.2
The following table represents the Company’s sensitivity of foreign currency denominated
deposits to 10% increase and decrease in exchange rates and amount of changes accounted
under either profit-loss or equity as of 31 December 2009.
Exchange Rate Sensitivity Analysis Table
Current Period (31 December 2009)
Gain/Loss
Appreciation of
foreign currency
Equity
Depreciation of
foreign currency
Appreciation of
foreign currency
Depreciation of
foreign currency
If USD decreases/increases by 10% against TRY:
1- Net US $ assets/liabilities
2- Hedged portion from US $ risk (-)
3- Net effect of US $ (1+2)
(215.508)
215.508
74.895
(74.895)
-
-
-
-
(215.508)
215.508
74.895
(74.895)
If EUR decreases/increases by 10% against TRY:
4- Net Euro assets/liabilities
5- Hedged portion from Euro risk (-)
6- Net effect of Euro (4+5)
139.836
(139.836)
19.685
(19.685)
-
-
-
-
139.836
(139.836)
19.685
(19.685)
If GBP decreases/increases by 10% against TRY:
7- Net GBP assets/liabilities
62.636
(62.636)
1.634
(1.634)
62.636
(62.636)
1.634
(1.634)
8- Hedged portion from GBP risk (-)
9- Net effect of GBP (7+8)
If CHF decreases/increases by 10% against TRY:
10- Net CHF assets/liabilities
11- Hedged portion from CHF risk
(-)
(3.177)
3.177
-
-
-
-
-
-
12- Net effect of CHF (10+11)
(3.177)
3.177
-
-
If JPY decreases/increases by 10% against TRY:
13- Net Yen assets/liabilities
(15.091)
15.091
-
-
-
-
-
-
15- Net effect of Yen (13+14)
(15.091)
15.091
-
-
TOTAL (3+6+9+12+15)
(31.304)
31.304
96.214
(96.214)
14- Hedged portion from Yen risk (-)
45
4.
4.2
The following table represents the Company’s sensitivity of foreign currency denominated
deposits to 10% increase and decrease in exchange rates and amount of changes accounted
under either profit-loss or equity as of 31 December 2009.
Exchange Rate Sensitivity Analysis Table
Prior Period (31 December 2008)
Gain/Loss
Appreciation of
foreign currency
Equity
Depreciation of
foreign currency
Appreciation of
foreign currency
Depreciation of
foreign currency
If USD decreases/increases by 10% against TRY:
1- Net US $ assets/liabilities
105.425
2- Hedged portion from US $ risk (-)
3- Net effect of US $ (1+2)
(105.425)
(52.270)
52.270
-
-
-
-
105.425
(105.425)
(52.270)
52.270
If EUR decreases/increases by 10% against TRY:
4- Net Euro assets/liabilities
5- Hedged portion from Euro risk (-)
6- Net effect of Euro (4+5)
411.521
(411.521)
(24.663)
24.663
-
-
-
-
411.521
(411.521)
(24.663)
24.663
(3.492)
3.492
If GBP decreases/increases by 10% against TRY:
7- Net GBP assets/liabilities
8- Hedged portion from GBP risk (-)
9- Net effect of GBP (7+8)
100.059
(100.059)
-
-
-
-
100.059
(100.059)
(3.492)
3.492
If CHF decreases/increases by 10% against TRY:
10- Net CHF assets/liabilities
11- Hedged portion from CHF risk
(-)
(3.635)
3.635
-
-
-
-
-
-
12- Net effect of CHF (10+11)
(3.635)
3.635
-
-
If JPY decreases/increases by 10% against TRY:
13- Net Yen assets/liabilities
(20.339)
20.339
-
-
-
-
-
-
15- Net effect of Yen (13+14)
(20.339)
20.339
-
-
TOTAL (3+6+9+12+15)
593.031
(593.031)
(80.425)
80.425
14- Hedged portion from Yen risk (-)
Market risk
The Company is exposed to equity share price risk arising from share investments. The
Company’s share price risks as of the reporting date are identified. As of 31 December 2009,
the Company’s loss would be TRY 1.851.094, if ISE 100 Stock Market index decreases by
10%. As of 31 December 2008, the Company’s loss would be TRY 1.255.500, if ISE 100
Stock Market index decreases by 10%.
46
4.
4.2
Credit Risk
Credit risk is the risk that the debtor defaults on its obligations under the terms of the
transaction. Risk management under this group is maintained by considering the due
receivables, doubtful receivables, guarantees received for receivables, technical
performances of the debtors and related parties with deposit and partnership relations.
When the Company's field of activity and third party relations are considered, its credit risk
is deemed to be relatively at minimum. The review of the Company's third party relations are
presented below.
Reinsurers: The Company works with international reinsurance companies with strong
financial status. In this perspective, the level of risk exposure is also considered to be at
minimum.
Agencies: Agencies working with the Company expose it to a limited level of credit risk.
Since the Company’s products are issued with long-term use, commissions given to agencies
are also long term in nature; therefore, the Company has consistent payables to agencies.
Policy Holders: Overdue premium receivables are not considered as a significant risk
exposure to the Company because if the Company has unpaid premiums, all guarantees
related to the insurance will be invalid.
The Company’s credit risk exposure in terms of types of financial instruments is presented
in the below table s of 31 December 2009 and 2008. Banks, other cash and cash equivalents
are also included in the credit risk.
Receivables(*)
Current Period
(31 December 2009)
Receivables from
Insurance Activities
Related
Party
Maximum Credit Risk Exposure
As of The Reporting Date
(A+B+C)
- Covered portion of maximum risk
by guarantees, provisions, etc.
A. Net book value of undue or nonimpaired financial assets
B. Net book value of overdue but
non-impaired assets
C. Net book value of impaired
assets
- Gross book value
- Impairment
- Covered portion of net book
value by guarantees, provisions, etc.
Other Receivables
Other
Party
Related
Party
Banks and
Other Cash
and Cash
Equivalent
Assets
Financial
Assets
Other
Party
-
7.850.615
712.900
-
-
-
-
1.421.887
712.900
4.790.431
2.298.312.604
-
6.428.728
-
-
-
-
400.789
-
-
-
18.063.838
25.072.927
(7.009.089)
-
-
(400.789)
-
-
-
-
4.790.431
2.316.376.442
-
(*) Such receivables are not included in the credit risk table since amounts related to individual pension activities are both
followed under assets and liabilities and they are held on behalf of participants by the ISE Settlement and Custody Bank, Inc.
47
121.534.826
121.534.826
4.
4.2
Credit Risk (Cont’d)
Receivables(*)
Prior Period
(31 December 2008)
Receivables from
Insurance Activities
Related
Party
Maximum Credit Risk Exposure
As of The Reporting Date
(A+B+C)
- Covered portion of maximum risk
by guarantees, provisions, etc.
A. Net book value of undue or nonimpaired financial assets
B. Net book value of overdue but
non-impaired assets
C. Net book value of impaired
assets
- Gross book value
- Impairment
- Covered portion of net book
value by guarantees, provisions, etc.
Other
Party
Other Receivables
Related
Party
Banks and
Other Cash
and Cash
Equivalent
Assets
Financial
Assets
Other
Party
-
8.692.405
104.680
3.596.867
1.948.984.070
75.234.324
-
1.129.037
104.680
3.596.867
1.935.205.888
75.234.324
-
7.563.368
-
-
-
-
334.976
-
-
-
13.778.182
20.787.271
(7.009.089)
-
-
(334.976)
-
-
-
-
(*)Such receivables are not included in the credit risk table since amounts related to individual pension activities are both
followed under assets and liabilities and they are held on behalf of participants by the ISE Settlement and Custody Bank, Inc.
48
4.
4.2
Liquidity risk
Liquidity risk is the possibility of not fulfilling The Company’s net funding liabilities.
Liquidity risk occurs because of the risks such as; inconsistencies in the markets and
downgrading of credit ratings which may result a decrease in fund sources.
As of 31 December 2009, the Company’s asset and liability distribution in terms of
remaining maturities is presented in the table below:
No
Maturity
Assets
Investments with Risks on
Policy Holders
Activities
Receivables from Related
Parties
Other Receivables
Accruals
Financial Assets
Tangible Assets
Intangible Assets
Accruals
Deferred Tax
Total Assets
Liabilities
Other Liabilities
Provisions
Accruals
Total Liabilities
Net liquidity surplus/(deficit)
Up to 1
month
1 to 3
months
3 to 12
months
1 to 5 years
5 years and
over
4.001.056
-
-
-
121.543.838
1.275.589.236
637.425.670
285.590.102
-
2.316.376.442
Unallocated
Total
45.855.825
34.849.285
36.837.672
106.871.094
6.785.464
4.114.876
-
-
-
-
-
-
1.960.342.177
1.960.342.177
-
4.203.419
-
712.900
-
-
-
587.012
712.900
4.790.431
-
25.228
-
50.454
-
164.800
-
-
-
3.199.434
153.208
5.762.193
22.053.735
1.970.323
3.439.916
153.208
5.762.193
22.053.735
1.970.323
45.863.396 41.003.002 1.280.467.992
637.425.670
285.590.102
8.529
900.361
1.994.976.972
8.529
900.361
4.438.054.053
152.726.919
-
153
3.114.575
3.639.486
-
-
481.583
-
-
-
(153)
1.989.060.718
2.143
7.578.325
1.994.474.609
1.992.656.876
2.143
11.217.811
1.994.474.609
-
4.953.581
-
-
-
-
(293.966)
4.659.615
-
642.049
12.349.844
-
481.583
-
-
1.121.543
51
3.387.351
429.892.005
4.425.222.626
1.763.592
51
3.387.351
429.892.005
4.438.054.053
1.279.986.409
637.425.670
285.590.102
(2.430.245.654)
-
152.726.919
33.513.552 41.003.002
In order to meet its current and potential liabilities, the Company holds adequate cash and
similar resources and the Company management manages its liquidity risk by allocating its
funding resources. The Company’s liabilities are settled through its own equity. Except for
financial leasing payables, the Company neither has any borrowings nor similar financial
payables.
49
4.
4.2
Liquidity risk (Cont’d)
As of 31 December 2008, the Company’s asset and liability distribution in terms of
remaining maturities is presented in the below table:
No
Maturity
Assets
Investments with Risks on
Policy Holders
Activities
Receivables from Related
Parties
Other Receivables
Accruals
Financial Assets
Tangible Assets
Intangible Assets
Accruals
Deferred Tax
Total Assets
Liabilities
Other Liabilities
Provisions
Accruals
Total Liabilities
Net liquidity surplus/(deficit)
Up to 1
month
3.794.869
52.953.153
1 to 3
months
71.454.089
3 to 12
months
1 to 5 years
5 years and
over
-
-
-
-
75.248.958
323.975.518
1.120.744.242
149.877.860
-
1.948.984.070
-
5.352.240 296.081.057
Unallocated
Total
-
-
-
-
-
-
1.330.947.030
1.330.947.030
-
3.054.912
-
104.680
-
-
-
541.955
104.680
3.596.867
-
991.152
-
-
309.953
-
-
-
-
-
-
-
-
-
1.495.473
8.123.784
3.962.193
22.775.272
1.624.290
2.796.578
8.123.784
3.962.193
22.775.272
1.624.290
56.748.022
80.852.393
296.081.057
324.390.151
1.120.744.242
149.877.860
13.778
1.736.549
1.371.220.324
13.778
1.736.549
3.399.914.049
-
1.940.398
1.297.390
-
230
1.664
-
537
459.160
-
154
-
-
(921)
1.349.745.433
6.781.454
1.669.840.334
1.352.144.991
1.664
8.078.844
1.669.840.334
11.038.996
4.211.849
-
-
-
-
-
15.250.845
11.038.996
913.250
8.362.887
1.894
459.697
154
-
886.736
42
2.857.469
349.939.874
3.380.050.421
1.799.986
42
2.857.469
349.939.874
3.399.914.049
45.709.026
72.489.506
296.079.163
323.930.454
1.120.744.088
149.877.860
(2.008.830.097)
-
50
4.
4.2
Other Risks
Details of financial assets carried at fair value are presented as below:
31 December 2009
Financial Assets
Banks
Other Cash and Cash Equivalents
Available-for-sale Financial Assets (*)
Held-for-trading Financial Assets
Financial Assets and Investments With Risks
on Policy Holders
Receivables from Operations
Other Receivables
Book Value
Fair Value
78.744.899
42.834.036
339.117.684
83.543.063
78.744.899
42.834.036
339.117.684
83.543.063
1.893.715.695
1.960.342.177
712.900
4.790.431
1.893.715.695
1.960.342.177
712.900
4.790.431
(*)TRY 7.009.089 of impairment loss which arises from available-for-sale financial assets is taken
into account in the calculation.
31 December 2008
Financial Assets
Banks
Other Cash and Cash Equivalents
Available-for-sale Financial Assets (*)
Financial Assets and Investments With Risks
on Policy Holders
Receivables from Operations
Other Receivables
Book Value
Fair Value
41.720.390
33.557.407
278.990.717
79.569.547
41.720.390
33.557.407
278.990.717
79.569.547
1.590.423.806
1.330.947.030
104.680
3.596.867
1.590.984.905
1.330.947.030
104.680
3.596.867
(*)TRY 7.009.089 of impairment loss which arises from available-for-sale financial assets is taken
into account in the calculation.
51
4.
4.2
Other Risks (Cont’d)
Fair value of financial assets
Fair value is the amount for which an asset could be exchanged or a liability settled between
knowledgeable, willing parties in an arm’s length transaction. The Company determines the
estimated fair value of its financial instruments by using the current market information and
appropriate valuation methods. The following methods and assumptions are used in fair
value estimations for financial instruments of which their fair value cannot be practically
measured:
Financial assets
It is anticipated that fair value of the financial assets including cash and cash equivalents and
other financial assets carried at cost will approximate to their book value based on their short
term nature and having insignificant potential losses. Market value is taken as a basis in the
measurement of fair value of government bonds and equity shares.
It is anticipated that fair value of monetary liabilities will approximate to their carrying value
based on their short term nature.
Fair Value of Financial Instruments
The fair value of financial assets and liabilities are determined as below:
Level I: Financial assets and liabilities are carried at quoted prices in an active market
which are used for similar financial assets and liabilities.
Level II: Other than quoted prices specified in Level I, financial assets and liabilities are
carried at inputs used to determine direct or indirect observable market prices.
Level III: Financial assets and liabilities are carried at inputs which are used in determining
fair value of financial assets and liabilities but not based on any observable market data.
52
4.
4.2
Other Risks (Cont’d)
Fair Value of Financial Instruments (Cont’d)
Fair value level of the financial assets are as follows:
Fair value level as of reporting date
Financial Assets
31 December 2009
Level 1
Held for Trading Financial Assets (Fair Value
Through profit or loss)
Government Bonds,
Treasury Bills
55.346.769
55.346.769
Reverse Repo
6.785.463
6.785.463
Equity Shares
15.161.094
15.161.094
Investment Funds, VOB
6.249.737
6.249.737
Available-for-Sale Financial Assets
Government Bonds
253.231.077
253.231.077
Equity Shares
85.886.607
66.761.615
Financial Assets and Investments With Risks on Policy Holders
Government Bonds
1.651.220.690
1.651.220.690
Eurobonds
242.495.005
242.495.005
Level 2
Level 3
-
-
-
19.124.992
-
-
Fair value level as of reporting date
Financial Assets
31 December 2008
Level 1
Held for Trading Financial Assets (Fair Value
Through profit or loss)
Government Bonds,
Treasury Bills
64.217.973
64.217.973
Reverse Repo
1.102.296
1.102.296
Equity Shares
9.877.855
9.877.855
Investment Funds, VOB
4.371.423
4.371.423
Government Bonds
235.915.419
235.915.419
Equity Shares
43.075.298
28.235.962
Financial Assets and Investments With Risks on Policy Holders
Government Bonds
1.377.553.811
1.377.553.811
Eurobonds
176.728.464
176.728.464
Held to Maturity Financial Assets
Government Bonds
36.141.531
36.141.531
Level 2
Level 3
-
-
-
14.839.336
-
-
-
-
Fair value is the amount for which an asset could be exchanged or a liability settled, between
knowledgeable willing parties in an arm’s length transaction. Quoted market price, if
available, is the best indicator of the fair value of an instrument.
The estimated fair values of financial instruments have been determined by the Company
using available market information and appropriate valuation methodologies.
53
5.
Segmental Information
Segmental information related with the Company’s operations of individual retirement, life
insurance and non-life branches as of 31 December 2009 are presented below:
Segment Information
31 December 2009
Continuing Operations
Technical income
Technical expenses
Other income and expense total
Life
Insurance
Individual
Retirement
Personal
Accident
Total
724.687.409
(717.437.227)
64.348.973
79.408.451
(67.894.890)
14.338.334
275.792
(219.678)
486.264
804.371.652
(785.551.795)
79.173.571
71.599.155
25.851.895
542.378
97.993.428
71.599.155
25.851.895
542.378
71.599.155
25.851.895
542.378
97.993.428
(18.709.000)
79.284.428
2.358.237.545
2.358.237.545
2.061.996.069
2.061.996.069
17.820.439
17.820.439
4.438.054.053
4.438.054.053
Segment Liabilities
(2.342.504.684)
(2.077.847.822)
(17.701.547)
(4.438.054.053)
Total Segment Liabilities
(2.342.504.684)
(2.077.847.822)
(17.701.547)
(4.438.054.053)
(1.991.826)
(443.822)
(15.052)
(2.450.700)
Segment Profit From Continuing
Operations
Income before tax
Taxation
Net profit for the period
Segment assets
Total Segment Assets
Other Elements of Segmentation
Depreciation and Amortization expenses
Segmenting of balance sheet and statement of income items is based on the distribution keys
prescribed in Circular “Principles and Procedures of Distribution Keys Used in Financial
Statements under the Insurance Uniformed Chart of Accounts” issued by the
Undersecretariat of Treasury on 4 January 2008.
54
5.
Segmental Information
Segmental information related with the Company’s operations of individual retirement, life
insurance and non-life branches as of 31 December 2008 are presented below:
Segment Information
31 December 2009
Continuing Operations
Technical income
Technical expenses
Other income and expense total
Segment Profit From Continuing
Operations
Income before tax
Taxation
Segment assets
Total Segment Assets
Segment Liabilities
Total Segment Liabilities
Other Elements of Segmentation
Depreciation and Amortization expenses
Life
Insurance
Individual
Retirement
Personal
Accident
Total
629.497.978
58.533.240
487.808
688.519.026
(618.225.507)
38.624.746
(51.620.724)
10.016.730
(376.589)
412.051
(670.222.820)
49.053.527
49.897.217
16.929.246
523.270
67.349.733
49.897.217
16.929.246
523.270
49.897.217
16.929.246
523.270
67.349.733
(14.405.000)
52.944.733
1.956.393.520
1.956.393.520
1.422.739.224
1.422.739.224
(1.610.321.937)
(1.610.321.937)
(1.673.343)
20.781.305
20.781.305
20.781.305
(1.431.289.612)20.781.305
(358.302.500)
(1.431.289.612) (358.302.500)
(433.955)
(17.851)
3.399.914.049
3.399.914.049
(3.399.914.049)
(3.399.914.049)
(2.125.149)
Segmenting of balance sheet and statement of income items is based on the distribution keys
prescribed in Circular “Principles and Procedures of Distribution Keys Used in Financial
Statements under the Insurance Uniformed Chart of Accounts” issued by the
Undersecretariat of Treasury on 4 January 2008.
55
6.
Tangible Assets
Current Period (31 December 2009):
Vehicles
Furniture and
Fixtures
(Includes
leased assets)
Leasehold
Improvements
Total
Land (*)
Buildings(*)
Machinery
and
Equipments
2.249.901
25.372.286
3.091.023
579.920
2.999.013
1.459.103
35.751.246
Additions
-
6.872
501.097
239.367
493.008
179.554
1.419.898
Disposals
-
-
(176.838)
(37.522)
(56.204)
-
(270.564)
(417.070)
-
-
-
-
-
(417.070)
1.832.831
25.379.158
3.415.282
781.765
3.435.817
1.638.657
36.483.510
Opening Balance as of 1 January 2009
-
(8.396.134)
(1.842.723)
(264.174)
(1.732.967)
(739.976)
(12.975.974)
Charge for the year
-
(508.674)
(387.420)
(107.204)
(456.097)
(229.713)
(1.689.108)
Disposals
-
-
173.406
20.989
40.912
-
235.307
Closing Balance as of 31 December 2009
-
(8.904.808)
(2.056.737)
(350.389)
(2.148.152)
(969.689)
(14.429.775)
Net Book Value as of 31 December 2009
1.832.831
16.474.350
1.358.545
431.376
1.287.665
668.968
22.053.735
Cost:
Impairment on land
Accumulated Depreciation
(*) Land amounting to net book value of TRY 1.411.831 and Buildings amounting to net book value of TRY 15.728.656 are Investment Properties and
given in Note 7 in detail. TRY 417.070 impairment is booked on land which is classified for use.
There are no pledges on tangible fixed assets.
56
6.
Tangible Assets (cont’d)
Prior period (31 December 2008):
Vehicles
Furniture and
Fixtures
(Includes
leased assets)
Leasehold
Improvements
Total
Land (*)
Buildings(*)
Machinery
and
Equipments
2.498.229
25.158.884
2.545.994
897.801
3.238.229
1.228.378
35.567.515
Cost:
Additions
-
213.402
829.332
282.751
168.400
230.725
1.724.610
Disposals
(248.328)
-
(284.303)
(600.632)
(407.616)
-
(1.540.879)
2.249.901
25.372.286
3.091.023
579.920
2.999.013
1.459.103
35.751.246
-
(7.892.513)
(1.819.041)
(714.063)
(1.582.115)
(547.190)
(12.554.922)
Charge for the year
-
(503.621)
(303.365)
(73.402)
(478.126)
(192.786)
(1.551.300)
Disposals
-
-
279.683
523.291
327.274
-
1.130.248
-
(8.396.134)
(1.842.723)
(264.174)
(1.732.967)
(739.976)
(12.975.974)
Net Book Value as of 31 December 2008
2.249.901
16.976.152
1.248.300
315.746
1.266.046
719.127
22.775.272
(*) Land amounting to net book value of TRY 1.411.831 and Buildings amounting to net book value of TRY 16.217.881 are Investment Properties and
given in Note 7 in detail. TRY 417.070 impairment is booked on land which is classified for use.
There are no pledges on tangible fixed assets.
57
7.
Cost
Opening balance as of 1 January 2009
Additions
Disposals
Closing balance as of 31 December 2009
Land
Buildings
Total
1.411.831
24.461.256
25.873.087
-
-
-
1.411.831
24.461.256
25.873.087
Charge for the period
Net book value as of 31 December 2009
-
8.243.375
489.225
8.732.600
8.243.375
489.225
8.732.600
1.411.831
15.728.656
17.140.487
The Company has obtained TRY 2.308.162 of investment property rental income in the
current year.
As of 31 December 2009, the Company's total fair value of investment property amounts to
TRY 53.523.000 (31 December 2008: TRY 33.747.500). Expert reports on these properties
have been prepared by the authorized real estate valuation companies. There are no pledges
on these properties.
31 December 2008:
Cost
Additions
Disposals
Land
Buildings
Total
1.660.158
248.327
1.411.831
24.461.256
24.461.256
26.121.414
248.327
25.873.087
-
7.754.150
489.225
8.243.375
7.754.150
489.225
8.243.375
1.411.831
16.217.881
17.629.712
The Company has obtained TRY 2.156.663 of investment property rental income in the
current year.
58
8.
Intangible Assets
Cost
Additions
Rights
3.912.241
1.107.625
5.019.866
Total
3.912.241
1.107.625
5.019.866
Accumulated Amortization
2.287.951
761.592
3.049.543
2.287.951
761.592
3.049.543
1.970.323
1.970.323
Cost
Additions
Rights
3.129.214
783.027
3.912.241
Total
3.129.214
783.027
3.912.241
Accumulated Amortization
1.714.105
573.846
2.287.951
1.714.105
573.846
2.287.951
1.624.290
1.624.290
31 December 2008:
59
9.
Investments in Affiliates
Affiliates
İş Portföy Yönetimi A.Ş.
Share
%
31 December
2009
Book Value
31 December
2008
Book Value
%20
5.762.193
3.962.193
(*) Although the share percentage of the affiliate of the Company, İş Portföy Yönetimi A.Ş., remains
same in the current year, capital increase amounting to TRY 9.000.000 dated 17 September 2009,
caused an increase amounting to TRY 1.800.000 in the Company records.
10.
Reinsurance Assets
10.1.
Amounts accounted in profit or loss as a result of various reinsurance agreements
Details of reinsurance assets that are arising from insurance agreements and accounted as
reinsurance assets are presented below:
Reinsurance Assets
Reinsurance Share of Unearned Premiums
Reserve
Reinsurance Share of Outstanding Claims
Reserve
Reinsurance Share of Life Mathematical
Reserve
Receivables from Reinsurance Operations
Total
31 December
2009
31 December
2008
1.209.792
972.512
640.700
296.297
1.299.654
3.150.146
78.994
124.101
1.471.904
The details of reinsurance liabilities that are arising from insurance agreements and
accounted as liabilities are presented below:
Reinsurance Liabilities
Payables from Reinsurance Operations
Cash Deposited by Insurance and Reinsurance
Companies
Total
60
31 December
2009
68.235
31 December
2008
-
413.348
481.583
459.160
459.160
10.
Reinsurance Assets
10.2.
Details of amounts recognized in profit or loss due to the various acquired reinsurance
agreements
The details of amounts recognized in profit or loss due to the various acquired reinsurance
agreements are presented in the below table:
Life Branch
Reinsurance Activities (Life Branch)
Premiums Transferred to Reinsurers (-)
Commissions Received From Reinsurers (+)
Reinsurers Share of Claims Paid (+)
1 January31 December
2009
(5.031.950)
1.063.591
610.197
1 January 31 December
2008
(2.580.094)
870.820
151.047
Non-Life Branch
Reinsurance Activities (Non-Life Branch)
Premiums Transferred to Reinsurers (-)
Commissions Received From Reinsurers (+)
Reinsurers Share of Claims Paid (+)
2009
(113.854)
15.583
40.415
Reinsurance Activities (Technical Reserves –
Reinsurance Share)
2009
2008
237.279
220.636
16.643
344.404
239.115
105.289
1.220.661
607.573
582.447
25.126
296.297
296.297
76.341
Financial Assets and Investments With Risks on
Policy Holders
31 December
2009
31 December
2008
Financial Assets Available-for-sale
Financial Assets Held-for-trading
Financial Assets and Investments With Risks on
Policy Holders
Impairment loss on Financial Assets (-)
Total
346.126.773
83.543.063
285.999.806
79.569.547
1.893.715.695
(7.009.089)
2.316.376.442
1.590.423.806
(7.009.089)
1.948.984.070
Change in Unearned Premiums Reserve
Life
Non-Life
Change in Outstanding Claims Reserve
Life
Non-Life
Change in Life Mathematical Reserve (Life)
11.
1 January 31 December
2008
(117.274)
41.227
-
Financial Assets
61
11.
Financial Assets (cont’d)
Financial Assets:
31 December 2009
Government Bonds
Reverse Repos
Equity Shares
Investment Funds, Turkish Derivatives
Exchange
Total
Cost
Value
52.170.568
6.784.456
11.970.909
Fair
Value
55.346.769
6.785.463
15.161.094
Book
Value
55.346.769
6.785.463
15.161.094
5.031.283
6.249.737
6.249.737
75.957.216
83.543.063
83.543.063
Cost
Value
59.543.247
1.101.943
11.669.815
Fair
Value
64.217.973
1.102.296
9.877.855
Book
Value
64.217.973
1.102.296
9.877.855
4.683.492
4.371.423
4.371.423
76.998.497
79.569.547
79.569.547
Fair
Value
253.231.077
85.886.607
Book
Value
253.231.077
85.886.607
31 December 2008
Government Bonds
Reverse Repos
Equity Shares
Investment Funds, Turkish Derivatives
Exchange
Total
31 December 2009
Available-for-sale Financial Assets
Government Bonds
Equity Shares
Cost
Value
212.712.283
53.340.087
Total
266.052.370 339.117.684(*) 339.117.684(*)
(*)Includes the impairment from available-for-sale financial assets amounting to TRY 7.009.089.
31 December 2008
Government Bonds
Equity Shares
Cost
Value
203.927.105
71.577.296
Fair
Value
235.915.419
43.075.298
Book
Value
235.915.419
43.075.298
Total
275.504.401 278.990.717(*) 278.990.717(*)
(*)Includes the impairment from available-for-sale financial assets amounting to TRY 7.009.089.
62
11.
Financial Assets (cont’d)
Financial Assets and Investments with Risks on Policy:
31 December 2009:
Cost
Value
Fair
Value
Book
Value
Government Bonds
Eurobonds
1.501.717.381
194.853.118
1.651.220.690
242.495.005
1.651.220.690
242.495.005
Total
1.696.570.499
1.893.715.695
1.893.715.695
Cost
Value
Fair
Value
Book
Value
1.216.577.640
164.720.917
1.377.553.811
176.728.464
1.377.553.811
176.728.464
34.600.001
36.702.631
36.141.531
1.415.898.558
1.590.984.906
1.590.423.806
Available for sale Financial Assets
31 December 2008:
Available for sale Financial Assets
Government Bonds
Eurobonds
Held-to-maturity Financial Assets
Government Bonds
Total
According to the early disposal call of Undersecretariat of Treasury, in order to increase the
income of the insurees, the Company exchanged the government bonds TRY 33.295.804
with a nominal value and matured on 17 February 2010, kept in Financial Assets and
Investments with Risks on Policy account with the government bonds will be matured on 2
April 2014. During this change, it is taken into consideration that according to TAS 39, the
Company cannot classify any financial assets into Held-to-Maturity investments for two
years.
The Company has no securities, other than issued shares in the current period, or any matured
debt securities.
The Company has no securities disposed of from the securities or long term securities group
by the Company’s subsidiaries, affiliates or associates.
63
11.
Financial Assets (Cont’d)
Value increases in financial assets for the last three years:
Financial Asset Type
31 December
2009
31 December
2008
31 December
2007(*)
73.065.314
7.585.847
3.486.316
2.571.050
17.869.166
4.923.601
197.145.196
174.525.248
102.428.319
533.290
-
16.336.041
(481.671)
278.329.647
180.582.614
141.075.456
Current Financial Assets:
Financial Assets and Investments
With Risks on Policy Holders
Non-Current Financial Assets:
Long-Term Securities
Affiliates
Total
(*)Value increases in 2007 is based on the related period’s balance sheet classifications.
Value increases reflect the difference between the carrying value and cost of the financial
assets.
The Company has TRY 7.009.089 of impairment loss arising from its financial assets.
The Company does not apply any hedge accounting.
Exchange rate differences arising from the payments of monetary items or different
conversion rates used in the current period or at initial recognition are recognized in profit or
loss.
64
12.
Receivables and Payables
The Company provides provision for its doubtful receivables in the legal follow-up by
considering the value and nature of the receivable.
The Company reflects its receivables from and payables to reinsurance and insurance
companies to financial statements by netting off on the entity basis.
The details of the Company’s receivables are as follows:
Receivables from insurance operations
Provisions for receivables from insurance
operations
Doubtful receivables from operating and
insurance operations
Provisions for doubtful receivables from
operating and insurance operations (-)
Receivables from pension activities
Receivables from operations
Receivables from Personnel
Other Receivables
Total Receivables
31 December
2009
31 December
2008
7.718.769
8.588.108
(268.943)
(230.679)
131.846
104.297
(131.846)
1.952.892.351
1.960.342.177
712.900
4.790.431
(104.297)
1.322.589.601
1.330.947.030
104.680
3.596.867
1.965.845.508
1.334.648.577
The details of guarantees for the Company’s receivables are presented below:
31 December
2009
907.456
612.291
56.900
1.576.647
Types of Guarantees
Letters of Guarantees
Guarantees and Commitments
Real Estate Pledges
Total
65
31 December
2008
729.623
566.828
6.900
1.303.351
12.
Receivables and Payables (Cont’d)
Movement of provision for doubtful receivables
Opening balance
Collections
Closing balance
2009
104.297
35.549
(8.000)
131.846
2008
104.297
104.297
The Company does not hold any guarantees for its doubtful receivables.
Receivable-payable relationship with shareholders, affiliates and subsidiaries of the
Company:
31 December 2009
Shareholders
Affiliates
Receivables
Trading
Non-Trading
95.256
73.444.882(*)
-
Payables
Trading
Non-Trading
1.517
-
(*) Non-trading receivables from shareholders consist of bank accounts.
31 December 2008
Shareholders
Affiliates
Receivables
Trading
Non-Trading
41.411.231(*)
-
Payables
Trading
Non-Trading
1.664
576.507
-
(*) Non-trading receivables from shareholders consist of bank accounts.
66
12.
Details of the Company’s foreign currency denominated receivables and payables without
exchange rate guarantees are presented below.
31 December 2009:
Foreign Currency Liabilities
Leasing
USD
Reinsurer Payables (*)
USD
GBP
CHF
JPY
Agency guarantees
USD
EUR
Total Foreign Currency Liability
Exchange Rate
(Buying Rate)
Amount
(TRY)
31.966
2,1603
69.056
347.097
69.394
2.205
1,5057
2,1603
2,3892
522.624
149.912
5.268
3.055
1,5057
4.600
14.483
1,5057
21.807
773.267
FC Amount
Foreign Currency Assets
Reinsurance Receivables
Euro
Receivables from Policy Holders
USD
EUR
GBP
Rent Receivables
USD
Deposits Given
USD
Total Foreign Currency Assets
Exchange Rate
(Selling rate)
Amount
(TRY)
101
1.5130
153
40.700
440
64
36.491
1,5057
2,3892
1,4492
0,0163
61.282
1.051
93
595
87.083
6.556
1,5130
2,1707
131.757
14.231
209.162
FC Amount
(*) Since the Company pays its foreign currency liabilities at exchange buying rates in accordance
with the Insurance Law and Company directions approved by the Undersecretariat of Treasury,
technical reserves are carried at the exchange buying rates of the Central Bank of Turkish Republic.
67
12.
Details of the Company’s foreign currency denominated receivables and payables without
exchange rate guarantees are presented below.
31 December 2008:
Exchange Rate
(Buying Rate)
Amount
(TRY)
81.040
2,1408
173.490
419.862
104.521
6.021
1,5123
2,1408
2,1924
634.957
223.759
13.200
14.195
1,5123
21.467
1.066.873
FC Amount
Foreign Currency Assets
Reinsurance Receivables
Euro
Receivables from Policy Holders
USD
EUR
GBP
Deposits Given
USD
Total Foreign Currency Assets
FC Amount
Foreign Currency Liabilities
Leasing
USD
606
Reinsurer Payables (*)
USD
12.068
GBP
1.041
CHF
146
JPY
13.561
Agency guarantees
USD
83.103
EUR
7.144
Total Foreign Currency Liability
68
Exchange Rate
(Selling rate)
Amount (TRY)
1,5196
921
1,5196
2,2039
1,4392
0,0168
18.339
2.294
210
228
1,5196
2,1511
126.283
15.367
163.642
13.
Derivative Financial Instruments
The Company has no derivative financial instruments.
14.
Cash and cash equivalents under current assets are as follows:
31 December
2009
9.012
78.744.899
2.507.430
549.456
75.688.013
42.834.036
(44.109)
121.543.838
Cash
Cash at banks
Demand deposits – TRY
Demand deposits – Foreign Currency
Time deposits
Other cash and cash equivalents (*)
Cheques given and payment orders (-)
Total Cash and cash equivalents
31 December
2008
14.634
41.720.390
1.951.345
1.828.890
37.940.155
33.557.407
(43.473)
75.248.958
(*) Other cash and cash equivalent assets are collectibles from banks in relation to premium
payments of policy holders who has paid their premiums by credit cards.
The Company’s cash and cash equivalent balances less time deposits with maturities longer
than 3 months in the current period cash flow statement are presented net of interest and
value increase accruals:
Interest accruals on cash and cash equivalents (-)
Time deposits with maturities longer than 3
months
69
31 December
2009
121.543.838
(356.654)
31 December
2008
75.248.958
(301.436)
(4.001.056)
117.186.128
74.947.522
14.
Cash and Cash Equivalents (Cont’d)
The Company’s foreign currency denominated cash and cash equivalents as of 31 December
2009 are presented below:
31 December 2009:
Amount (FC)
Banks (FC):
USD
CHF
EUR
GBP
124.672
256
163.664
3.266
Exchange
Rate
1,5057
1,4492
2,1603
2,3892
Total
Amount (TRY)
187.719
371
353.563
7.803
549.456
As of the balance sheet date, TRY time deposits have a maturity of 4 month and their simple
interest rates vary between 7,61% and 10,40%. The Company does not hold any foreign
currency denominated time deposits.
31 December 2008:
Amount (FC)
Banks (FC):
USD
CHF
EUR
GBP
559.888
4.045
413.302
41.777
Total
Exchange
Rate
1,5123
1,4300
2,1408
2,1924
Amount (TRY)
846.718
5.784
884.797
91.591
1.828.890
As of the balance sheet date, TRY time deposits have a maturity of 1 month and their simple
interest rates vary between 17,25% and 20,25%. The Company does not hold any foreign
currency denominated time deposits.
70
15.
Share Capital
The Company’s shareholder structure as of 31 December 2009 is disclosed in Note 1.1.
The Company’s nominal capital as of 31 December 2009 is TRY 250.000.000 and consisted
of 25.000.000.000 equity shares having a nominal amount of TRY 0,01 each.
TRY 250.000.000 share capital of the Company is composed of Group A and Group B
shares. Group A share is represented by 100.000.000 of equity shares having a nominal
amount of TRY 0,01 each. Group B share is represented by 24.900.000.000 shares having a
nominal amount of TRY 0,01 each and all shares are owned by one of the partners, Türkiye İş
Bankası A.Ş. Group A shareholders have no preference except for the election of Board
members. In accordance with the Articles of Association, new Group A shares cannot be
issued in capital increases.
The Company has accepted the registered capital system set out in accordance with the
provisions of Law No: 2499 and applied the system as of 15 June 2000 upon the permission
no: 67/1039 granted by the Capital Markets Board.
As of 31 December 2008, the Company's registered capital is TRY 300.000.000.
There are no equity shares of Anadolu Hayat Emeklilik A.Ş. held by İş Portföy Yönetimi A.Ş.
There are no equity shares held by the Company.
The Company has no share transactions subsequent to the balance sheet date.
16.
Other Provisions and Capital Component of Discretionary Participation
Income and expense items that are directly accrued in equity as of the balance sheet date are
as follows:
Temporary differences arising from financial assets
Permanent differences arising from financial assets
Deferred Tax effect
Net Amount
71
31 December
2009
14.555.052
16.077.730
(2.911.010)
27.721.772
31 December
2008
6.678.639
(21.492.908)
(1.335.728)
(16.149.997)
17.
Insurance Liabilities and Reinsurance Assets
17.1
Guarantees to be provided for life and non-life insurances and guarantees provided for
life and non-life insurances based on assets:
31 December 2009
Branches
Life
Non-life
Total
Required blockage
TRY
1.736.805.264
371.507
1.737.176.771
Current Blockage
TRY
1.950.224.381
873.881
1.951.098.262
The Company’s guarantee amount provided for its life and non-life branches consists of
TRY 1.727.846.173 of government bonds and TRY 223.252.089 of Eurobonds.
31 December 2008
Branches
Life
Non-life
Total
Required blockage
TRY
1.480.926.322
168.661
1.481.094.983
Current Blockage
TRY
1.698.245.111
629.638
1.698.874.749
The Company’s guarantee amount provided for its life and non-life branches consists of
TRY 1.506.061.236 of government bonds and TRY 192.813.513 of Eurobonds.
17.2.
Number of life insurance policies, additions, disposals in the current period, and current
life policy holders and their mathematical reserves:
31 December 2009
Number
As of 1 January 2009
Additions
Disposals
As of 31 December 2009
811.435
762.785
(554.038)
1.020.182
Mathematical
Reserves
TRY
1.589.415.530
578.239.315
(326.319.701)
1.841.335.144
The above table includes 1.178 of reversed life insurance policies and their corresponding
mathematical reserves.
As explained in Note 2, available for sale financial assets and investments with risks on
policy holders are carried at fair value; TRY 71.854.732 of which equals to the 95% of the
fair value and amortized cost difference is recognized under the Life Mathematical Reserves
account. TRY 22.187.060 of future withholding tax levied to income obtained from
investments assets which are classified under the Company’s assets as mathematical reserves
is also recognized under the Life Mathematical Reserves account. These balances are not
included in the above table.
TRY 1.299.654 of reinsurer’s share of life mathematical reserve is not offset against the
mathematical reserve account in the above table.
72
17.
Insurance Liabilities and Reinsurance Assets (Cont’d)
17.2.
Number of life insurance policies, additions, disposals in the current period, and current
life policy holders and their mathematical reserves (Cont’d)
31 December 2008
Mathematical Reserves
TRY
878.037
1.420.028.878
352.822
479.764.997
(419.424)
(310.378.345)
Number
As of 1 January 2008
Additions
Disposals
As of 31 December 2008
811.435
1.589.415.530
The above table includes 1.603 of reversed number of life insurance policies and their
corresponding mathematical reserves.
As explained in Note 2, available for sale financial assets and investments with risks on
policy holders are carried at fair value; TRY 7.105.305 of which equals to the 95% of the
fair value and amortized cost difference is recognized under the Life Mathematical Reserves
account. TRY 11.716.605 of future withholding tax levied to income obtained from
investments assets which are classified under the Company’s assets as mathematical reserves
is also recognized under the Life Mathematical Reserves account. These balances are not
included in the above table.
TRY 78.994 of reinsurer’s share of life mathematical reserve is not offset against the
mathematical reserve account in the above table.
17.3
Insurance Guarantees given to non-life insurances based on branches:
Guarantees given to death by
accident
Guarantees given to disability by
accident
Total
31 December
2009
31 December
2008
828.198.375
779.773.344
827.998.375
1.656.196.750
779.573.344
1.559.346.688
73
17.
17.4.
Pension investment funds established by the Company and their unit prices:
31 December
31 December
2009
2008
Unit Price TRY Unit Price TRY
0,033891
0,028780
0,024276
0,022394
0,018000
0,015673
0,018981
0,016853
0,052774
0,027188
0,016507
0,014724
0,028222
0,025547
0,035901
0,026387
0,053482
0,034880
0,029307
0,024392
0,014369
0,012797
0,031628
0,016309
0,025663
0,022879
0,021205
0,017960
0,017716
0,008844
0,016094
0,013774
0,015529
0,010705
Fund Name
AH1 Bond Fund
AH2 Liquid Fund
AH3 Eurobond Dollar Fund
AH4 Eurobond Euro Fund
AH5 Equity Fund
AH6 International Mixed Fund
AH8 Conservative Fund
AH9 Balanced Fund
AH0 Aggressive Fund
AG1 Group Bond Fund
AG2 Group Eurobond Fund
AG3 Group Equity Fund
AG4 Group Conservative Fund
HS1 Bond&Bill Fund
AHB White Equity Fund
ATK Orange Bond&Bill Fund
ATE Orange Balanced Fund
74
17.
17.5.
Number and amount of participation certificates in portfolio and circulation:
31 December 2009
Participation Certificates in
Circulation (EYF)
AH1 Bond Fund
AH2 Liquid Fund
AH5 Equity Fund
AH9 Balanced Fund
AH0 Aggressive Fund
AG1 Group Bond Fund
HS1 Bond&Bill Fund
Number
24.944.018.327,730
2.593.937.106,947
2.311.064.666,160
2.191.892.838,636
1.373.943.983,659
311.616.554,477
2.110.589.422,086
11.639.009.815,756
2.978.326.553,929
1.448.634.767,562
156.528.192,841
202.997.970,950
1.320.880.186,465
6.131.834.151,275
393.978.551,662
989.195.864,055
581.911.192,864
Amount
845.377.725,145
62.970.417,208
41.599.163,991
41.604.317,970
72.508.519,794
5.143.854,465
59.565.054,670
417.852.091,395
159.286.860,757
42.455.139,133
2.249.153,603
6.420.419,825
33.897.748,225
130.025.543,178
6.979.724,021
15.920.118,236
9.036.498,914
31 December 2008
Participation Certificates in
Circulation (EYF)
AH1 Bond Fund
AH2 Liquid Fund
AH5 Equity Fund
AH9 Balanced Fund
AH0 Aggressive Fund
AG1 Group Bond Fund
HS1 Bond&Bill Fund
Number
22.712.943.150,415
2.042.514.383,149
1.700.662.586,228
1.710.806.181,216
1.265.321.382,707
267.006.810,788
1.711.956.732,699
9.515.000.612,186
2.289.027.577,002
1.079.928.498,530
105.718.730,024
152.113.059,271
1.093.124.955,628
4.531.650.837,560
265.919.773,340
781.782.526,994
467.909.311,016
75
Amount
653.678.503,869
45.740.067,096
26.654.484,714
28.832.216,572
34.401.557,753
3.931.408,282
43.735.358,650
251.072.321,154
79.841.281,886
26.341.615,936
1.352.882,588
2.480.811,884
25.009.605,860
81.388.449,043
2.351.794,475
10.768.272,527
5.008.969,174
17.
17.6
Numbers and portfolio amounts of additions, disposals, reversals and current
individual and group pension participants:
31 December 2009
Additions
Disposals
Current
Individual
Portfolio Value
Number
TRY
95.666
115.939.693
46.102
241.946.404
382.024
1.575.021.438
Group
Portfolio Value
Number
TRY
31.892
29.144.819
10.925
34.093.905
94.214
368.740.033
Individual
Portfolio Value
Number
TRY
98.032
85.942.618
31.335
115.740.584
320.938
1.081.684.344
Group
Portfolio Value
Number
TRY
25.496
24.054.386
6.159
20.264.123
84.779
240.083.825
31 December 2008
Additions
Disposals
Current
Additions: The sum of the new contracts added in the period and their registered cumulative
values as of the period end in addition with the number of the contracts that begin and finish
in the same period. For the data calculated for 31 December 2009, portfolio amount and
insurance contract numbers related with contribution amounts collected before the exercise
date are not taken into consideration. In addition, the amounts related with credit card
collections with undue blockage terms are not added to the calculation.
Disposals: The number of the finalized contracts during the period and their values at their
disbursement dates.
Current: The number of standing contracts and their values as of the period end.
Since there are retirement plan transfers between individual and group retirement plans in the
current period, periodical changes should be followed by the total number and portfolio
amount of policies. Also, when the contracts effective at the prior balance sheet date become
a liability because of collection reversals in the current period or when the contracts effective
at the prior balance sheet date become an asset, total numbers and portfolio values of these
contracts are net off at the period end. Number and portfolio amount of individual and group
policies presented in notes reflect the current position of the Company as of the period-end.
17.7.
Valuation methods used in profit share calculation for life insurances with profit
shares:
The Company’s financial assets and investments with risks on policy holders are classified
as “available-for-sale”. These assets are valued in accordance with the principles specified in
Note 2. Valuation differences calculated based on the principles are taken into account in the
profit share calculation.
76
17.
17.8
Number of additions and their group or individual gross and net share participations in
the current period:
1 January 2009 – 31 December 2009 (*)
Individual
Group
Total
Number
95.666
31.892
127.558
Share Participation Share Participation
(Gross) TRY
(Net) TRY
111.102.625
107.858.682
25.423.925
25.136.811
136.526.550
132.995.493
(*)Contracts become effective in the current period and the total contracts become effective
and ceased in the same period and contributions collected regarding these contracts and the
investment oriented contributions have been specified. The collections made with credit card
but not oriented to fund are also added into gross and net contributions. Transfer amounts are
not included in the current period numbers and balances.
1 January 2008 – 31 December 2008(**)
Individual
Group
Total
Number
98.032
25.496
123.528
Share Participation Share Participation
(Gross) TRY
(Net) TRY
92.651.981
89.301.983
24.754.804
24.526.187
117.406.785
113.828.170
(**)Contracts become effective in the current period and the total contracts become effective
and ceased in the same period and contributions collected regarding these contracts and the
investment oriented contributions have been specified. The collections made with credit card
but not oriented to fund are also added into gross and net contributions.
17.9.
Number of additions from the other companies and their group or individual gross and
net share participations in the current period:
1 January 2009 – 31 December 2009
Share
Share Participation
Participation
(Net) TRY
(Gross) TRY
Individual
2.410
18.507.871
18.507.871
Corporate
1.214
7.478.607
7.478.607
Total
3.624
25.986.478
25.986.478
(*)Indicates the number of individual retirement agreement.
Number(*)
Share
Share Participation
Participation
(Net) TRY
(Gross) TRY
Individual
4.013
21.896.387
21.896.387
Corporate
2.186
10.444.381
10.444.381
Total
6.199
32.340.768
32.340.768
(*)Indicates the number of individual retirement agreement.
Number(*)
77
17.
17.10
Number of transfers from the Company’s life portfolio to individual pension portfolio
and their group or individual gross and net share participations:
The legal duration of the transfer from life portfolio to private pension portfolio expired on 7
October 2006 and there is no transfer transaction in the current and prior year.
17.11. Number of transfers from the Company’s individual pension portfolio to other company
or not, and together their personal and corporate allocation and gross and net share
participations:
Disposals
Number
Share Participation
(Gross) TRY
Individual
Group
Total
46.102
10.925
57.027
241.946.404
34.093.905
276.040.309
Share
Participation
(Net) TRY
197.485.476
27.541.185
225.026.661
Number: Indicates the number of disposals in between 1 January 2009 – 31 December 2009.
Share Participation (Gross), indicates the fund sales amount as a result of disposal, i.e.;
disposal amount. Share participation (Net), indicates the remaining amount paid to participant
less any deductions (initiation fee and withholding) against the gross amount as a result of
disposal.
Disposals
Number
Share Participation
(Gross) TRY
Individual
Group
Total
31.335
6.159
37.494
115.740.079
20.264.123
136.004.202
Share
Participation
(Net) TRY
92.421.386
16.679.734
109.101.120
Number: Indicates the number of disposals in between 1 January 2008 – 31 December 2008.
Share Participation (Gross), indicates the fund sales amount as a result of disposal, i.e.;
disposal amount. Share participation (Net), indicates the remaining amount paid to participant
less any deductions (initiation fee and withholding) against the gross amount as a result of
disposal.
78
17.
17.12. Number of additions of life insurances and their group or individual allocation and
gross and net premiums:
Number
Individual
Group
Total (*)
172.180
589.427
761.607
First Premium
Amount
TRY
313.349.755
20.750.599
334.100.354
(*) 1.178 reversed policies are not included in the current additions account.
Number
Individual
Group
Total (**)
178.096
173.123
351.219
First Premium
Amount
TRY
155.716.975
19.664.859
175.381.834
(**)1.603 reversed policies are not included in the current additions account.
17.13. Number of disposals of life insurances and their group or individual allocation and
gross net premiums and net mathematical reserves:
Number
Individual
Group
Total
276.608
277.430
554.038
Mathematical
Reserves
TRY
320.293.782
6.025.919
326.319.701
Number
Individual
Group
Total
305.924
113.500
419.424
79
Mathematical
Reserves
TRY
305.250.229
5.128.116
310.378.345
17.
17.14 Profit share distribution rate of life insurances as of 1 January 2009-31 December 2009
1 January 2009-31 December 2009
TRY (Life Insurance)
TRY (Income Insurance)
USD (Life Insurance)
USD (Income Insurance)
Euro (Life Insurance)
Euro (Income Insurance)
GBP (Life Insurance)
GBP (Income Insurance)
Profit Share
Distribution Rate
(%)
15,18
15,08
8,21
8,19
6,39
6,36
8,60
8,60
(*) Yearly net simple earning rate (guaranteed profit share earnings are included) obtained as
a result of transfer of existing mathematical provisions as of the end of year 2008 and
collected net saving premiums in 2009 to investment.
1 January 2008-31 December 2008
TRY (Life Insurance)
TRY (Income Insurance)
USD (Life Insurance)
USD (Income Insurance)
Euro (Life Insurance)
Euro (Income Insurance)
GBP (Life Insurance)
GBP (Income Insurance)
Profit Share
Distribution Rate
(%)
17,43
17,35
8,17
8,16
6,37
6,36
9,71
9,62
(*) Yearly net simple earning rate (guaranteed profit share earnings are included) obtained as
a result of transfer of existing mathematical provisions as of the end of year 2007 and
collected net saving premiums in 2008 to investment.
80
17.
17.15. Amounts from insurance contracts in the financial statements:
31 December 2009
Reinsurance
Gross
Share
Unearned Premiums Reserve
Life Mathematical Reserve
Outstanding Claims Reserve
- Reported Claims
- Incurred But Not Reported
- Outstanding Claims Adequacy
Reserve
Other Technical Reserves
- Equalization Reserve
7.240.277
1.935.376.936
54.624.294
51.571.696
3.045.932
(1.209.792)
(1.299.654)
(640.700)
(420.818)
(216.962)
6.030.485
1.934.077.282
53.983.594
51.150.878
2.828.970
6.666
383.248
383.248
(2.920)
-
3.746
383.248
383.248
1.997.624.755
(3.150.146)
1.994.474.609
31 December 2008
Reinsurance
Gross
Share
Unearned Premiums Reserve
Life Mathematical Reserve
Outstanding Claims Reserve
- Reported Claims
- Incurred But Not Reported
Other Technical Reserves
- Equalization Reserve
Net
Net
7.532.485
1.608.237.440
55.399.105
52.684.998
2.714.107
19.106
19.106
(972.512)
(78.993)
(296.297)
(213.476)
(82.821)
-
6.559.973
1.608.158.447
55.102.808
52.471.522
2.631.286
19.106
19.106
1.671.188.136
(1.347.802)
1.669.840.334
81
17.
17.15. Amounts from insurance contracts in the financial statements (Cont’d):
Factors resulting from individual insurance policies which provide portfolio increase through
the change in mathematical reserves for the 1 January 2009- 31 December 2009 period are
presented as below:
Portfolio Increase
Mathematical
Reserves
New policies
Constitutions from reductions
Constitutions from cancellations
Insurances had capital increase
Total portfolio increase
278.655.521
1.770.202
24.433.020
332.957.701
637.816.444
Factors resulting from individual insurance policies which provide portfolio increase through
presented as below:
Mathematical
Reserves
Portfolio Increase
New policies
130.498.624
2.559.110
24.697.573
371.342.104
529.097.411
Factors resulting from individual insurance policies which provide portfolio decrease through
presented as below.
Portfolio Decrease
Terminations and Cancelations (-)
Transformed to insurances without charge (-)
Insurances had capital decrease (-)
Purchases (-)
Ceased with risk formed(-)
Expirations (-)
Total portfolio decrease
82
Mathematical
Reserves
(4.456.920)
(30.152.839)
(41.950.335)
(163.529.826)
(1.988.644)
(150.459.313)
(392.537.877)
17.
Factors resulting from individual insurance policies which provide portfolio decrease through
presented as below.
Portfolio Decrease
Purchases (-)
Expirations (-)
Mathematical
Reserves
(2.863.525)
(23.874.722)
(40.605.836)
(144.560.277)
(2.909.845)
(154.973.129)
(369.787.334)
Factors resulting from group insurance policies which provide portfolio increase through the
change in mathematical reserves for the 1 January 2009- 31 December 2009 period are
presented as below.
Mathematical
Reserves
Portfolio Increase
New policies
9.353.188
81.802
7.486.631
16.921.621
Factors resulting from group insurance policies which provide portfolio increase through the
presented as below.
Mathematical
Reserves
Portfolio Increase
New policies
8.226.776
61.936
47.430
9.916.685
18.252.827
83
17.
Factors resulting from group insurance policies which provide portfolio decrease through the
presented as below.
Portfolio Decrease
Purchases (-)
Expirations (-)
Mathematical
Reserves
(2.673)
(300.332)
(3.530.767)
(4.966.637)
(34.684)
(1.022.589)
(9.857.682)
Factors resulting from group insurance policies which provide portfolio decrease through the
presented as below.
Portfolio Decrease
Purchases (-)
Expirations (-)
84
Mathematical
Reserves
(27.427)
(173.661)
(3.280.938)
(4.097.345)
(127.200)
(873.791)
(8.580.362)
17.
17.16. Gain/Loss recognized in profit/loss due to reinsurance contracts
Gain or loss recognized in profit/loss due to reinsurance contracts are disclosed in Note 10.
17.17. Comparison of the incurred claims with past estimates
The progress process of realized claims are disclosed in Note 4.1.2.3.
17.18
Effects of changes in the assumptions used in the measurement of insurance assets and
liabilities, showing the effects of each change that has significant effect on the financial
statements separately
Effects of changes in the assumptions used in the measurement of insurance assets and
liabilities are disclosed in Note 4.
18.
Investment Contract Liabilities
None.
19.
Trade and Other Payables, Deferred Income
Payables from Insurance Operations
Cash Deposited by Insurance and Reinsurance
Companies
Payables from Pension Activities
Other Payables from Main Activities
Due to Shareholders
Payables to Personnel
Payables to Other Related Parties
Guarantees and Deposits Received
Other Payables
Total Other Payables
Deferred Income
Expense Accruals
Total Deferred Income and Expense Accruals
Total
31 December
2009
963.434
31 December
2008
237.221
413.348
1.991.280.094
1.992.656.876
459.160
1.351.448.610
1.352.144.991
1.517
626
2.143
1.664
1.664
169.207
11.048.604
11.217.811
160.323
7.918.521
8.078.844
1.121.543
642.049
1.763.592
886.736
913.250
1.799.986
2.005.640.422
1.362.025.485
Transactions and balances between the Company and its shareholders as of the period-end
are presented in the “Related Parties” note.
20.
Payables
The Company has no financial payables except for its financial leasing liability which
amounts to TRY 153. (31 December 2008: TRY 921).
85
21.
Deferred Income Tax
Deferred Tax
The Company recognizes deferred tax assets and liabilities based upon temporary differences
arising between its financial statements as reported for TFRS purposes and its statutory tax
financial statements. These differences usually result in the recognition of revenue and
expenses in different reporting periods for TFRS and tax purposes and they are given below.
20% is applied in the calculation of deferred tax asset and liabilities.
Deferred tax (assets) / liabilities base:
Economical life differences of tangible fixed assets
Retirement pay provisions
Unused vacation provisions
Equalization reserves
Valuation differences of the financial assets
Deferred tax (assets) / liabilities:
Economical life differences of tangible fixed assets
Retirement pay provisions
Unused vacation provisions
Equalization reserves
Valuation differences of the financial assets
31 December
2009
31 December
2008
(3.347.637)
(3.387.352)
(573.756)
(383.248)
3.190.186
(3.558.029)
(2.857.469)
(426.526)
(19.106)
(1.821.613)
(4.501.807)
(8.682.743)
31 December
2009
31 December
2008
(669.527)
(677.470)
(114.751)
(76.650)
638.037
(900.361)
(711.606)
(571.494)
(85.305)
(3.821)
(364.323)
(1.736.549)
Movement of deferred tax assets / liabilities as of 31 December 2009 and 31 December 2008
are given below:
Movement of deferred tax (assets) / liabilities:
Opening balance at 1 January
Charge to income
Accounted under equity
Closing balance at 31 December
86
2009
(1.736.549)
(739.094)
1.575.282
(900.361)
2008
(1.973.273)
(1.099.004)
1.335.728
(1.736.549)
22.
Retirement Benefits
Under the Turkish Labor Law, the Company is required to pay employment termination
benefits to each employee who has qualified for such payment. Also, employees are entitled
to retirement pay provisions subsequent to the completion of their retirement period by
gaining a right to receive retirement payments in accordance with the amended Article 60 of
the applicable Social Insurance Law No: 506 and the related Decrees No: 2422 and 4447
issued on 6 March 1981 and 25 August 1999, respectively. Some transitional provisions
related to pre-retirement service term was excluded from the law since the related law was
amended as of 23 May 2002.
The termination benefit to be paid is subject to upper limit of TRY 2.365,16 as of 31
December 2009 (2008: TRY 2.173,19).
The provision has been calculated by estimating the present value of the future probable
obligation of the Company arising from the retirement of employees. TAS 19 (“Employee
Benefits”) requires actuarial valuation methods to be developed to estimate the enterprise’s
obligation under defined benefit plans. Accordingly, the following actuarial assumptions
were used in the calculation of the total liability:
The principal assumption is that the maximum liability for each year of service will increase
parallel with inflation. Thus, the discount rate applied represents the expected real rate after
adjusting for the anticipated effects of future inflation. Consequently, in the accompanying
financial statements as at 31 December 2009, the provision has been calculated by estimating
the present value of the future probable obligation of the Company arising from the
retirement of the employees. The provisions at the respective balance sheet dates have been
calculated assuming an annual inflation rate of4,8% and a discount rate of 11%, resulting in
a real discount rate of approximately 5,92% (31 December 2008: 5,5%, 12% and 6,26%,
respectively). The anticipated rate of forfeitures is considered and estimated rate of the
Company’s retirement pay is also taken into account. As the maximum liability is updated
semi annually, the maximum amount of TRY 2.427,04 effective from 31 December 2009 has
been taken into consideration in calculation of provision from employment termination
benefits (TRY 2.260,05 is effective from 1 January 2009).
87
22.
23.
Retirement Benefits (Cont’d)
2009
2008
Provision at 1 January
2.857.469
2.457.714
Service cost
Interest cost
Retirement pay paid
Actuarial gain/loss
765.325
169.048
(414.375)
9.884
525.198
153.900
(265.884)
(13.459)
Provision at 31 December
3.387.351
2.857.469
31 December
2009
455.800
186.249
642.049
31 December
2008
600.423
312.827
913.250
Other Liabilities and Expense Accruals
Expense Accruals
Sales Premium reserves
Other
Total
24.
Net Insurance Premium Revenue
2009
198.203
494.703.845
494.902.048
Non-Life
Life
Total
88
2008
295.964
342.334.183
342.630.147
25.
Fee Income
Services revenues obtained in 1 January 2009-31 December 2009 period in accordance with
TAS 18 are presented below in terms of individual pension, life and non-life.
Individual Pension (1 January – 31 December 2009)
Entrance Fee
19.148.408
Administrative
Cost Deductions
19.614.669
Administrative
Fund Cost Deductions in
Management
the form of
Income
Cessation
40.309.120
195.622
Other Technical
Income
140.632
Individual Pension (1 January – 31 December 2008)
Entrance Fee
12.433.263
26.
Administrative
Cost Deductions
16.883.395
Administrative
Fund Cost Deductions in
Management
the form of
Income
Cessation
26.585.779
2.587.382
Other Technical
Income
43.420
2009
2008
10.817.445
832.584
19.194.212
8.759.803
17.833.995
264.607
7.498.842
3.606.703
134.608.474
1.854.357
8.954.405
119.029.521
2.060.891
125.618.680
1.710.101
9.259.309
169.763.838
177.222
2.308.162
8.042.106
2.156.663
9.120.166
316.461.960(*)
347.010.126
Investment Income/Expenses
Financial assets held-for-trading
Interest income
Dividend income
Gain on sale
Valuation gain
Financial assets available-for-sale
Interest income
Dividend income
Gain on sale
Valuation gain
Income from Affiliates
Rent income
Other income
Total
(*)TRY 87.868.610 of investment income consists of income obtained from directing assets
in free portfolio to investment, TRY 228.593.350 of investment income consists of income
obtained from directing assets in policy holders’ portfolio to investment.
89
27.
Net Income Accrual on Financial Assets
Net income accrual on financial assets is presented as below:
Fair value differences recognized in shareholders’ equity
- From the assets in free portfolio
- From the assets in policy holders’ portfolio
Fair value differences recognized in profit and loss
- From the assets in free portfolio
28.
2009
26.850.954
16.077.730
10.773.224
28.026.760
28.026.760
2008
(15.188.232)
(21.492.908)
6.304.676
14.817.436
14.817.436
Assets Held at Fair Value through Profit and Loss
Net gain of assets held at fair value through profit and loss reflected to the income statement
as of the balance sheet date is TRY 30.844.241 (31 December 2008: TRY 25.597.444).
Buildings classified as investment property in the accompanying financial statements are
valued by using the cost method.
29.
Insurance Rights and Claims
For the period 1 January – 31 December 2009 there are no subrogation gain or loss on branch
basis.
30.
Investment Agreement Rights
None.
31.
Other Expenses
Grouping of expenses according to nature or use is presented in Note 32.
32.
Operating Expenses
1 January –
31 December
2009
(34.391.631)
(36.514.185)
(2.254.739)
(4.578.686)
(11.918.790)
(9.396.709)
(684.605)
1.083.374
(1.879.456)
(100.535.427)
Production commission expenses (-)
Personnel wages and expenses
Bank fees
Rent expenses
Administration expenses
Marketing and sales expenses
Outsourced benefits and services (-)
Reinsurance Commission income (+)
Other
Total
90
1 January –
31 December
2008
(31.640.667)
(31.965.635)
(2.671.487)
(3.863.749)
(10.623.059)
(13.895.440)
(306.852)
912.047
(318.036)
(94.372.878)
33.
Employee Benefit Expenses
1 January –
31 December
2009
36.514.185
529.882
414.375
37.458.442
Personnel wages and expenses
Retirement Pay Provision
Retirement pay paid
Total
1 January –
31 December
2008
31.965.635
399.755
265.884
32.631.274
The Company has no share-based payments in the current period based on TFRS 2.
34.
Finance Costs
The Company has no finance cost, except finance lease liabilities. The Company’s finance
expense which is recognized directly as expense in the current period amounts to TRY 1.136
(31 December 2008: TRY 6.391).
35.
Income Tax
31 December
2009
31 December
2008
18.709.000
14.405.000
(19.017.266)
(308.266)
(3.366.055)
11.038.945
2009
2008
18.709.000
(739.094)
14.405.000
(1.099.004)
17.969.906
13.305.996
Revaluation of available-for-sale financial assets
2009
2.911.010
2008
1.335.728
Total deferred tax directly recognized in equity
2.911.010
1.335.728
Current tax provision:
Corporate Tax Liability Provision
Prepaid Taxes and Other Liabilities on Period
Profit (-)
Tax expense in the income statement
Income tax expense/(income) is formed by the
items below:
Current tax expense / (income)
Deferred tax expense/(income)
Total Tax Expense
Tax directly recognized in equity
Deferred Tax
91
35.
Income Tax (Cont’d)
Corporate Tax
The Company is subject to Turkish corporate taxes. Provision is made in the accompanying
financial statements for the estimated charge based on the Company’s results for the years
and periods.
Corporate tax is applied on taxable corporate income, which is calculated from the statutory
accounting profit by adding back non-deductible expenses, and by deducting dividends
received from resident companies, other exempt income and investment incentives utilized.
The effective tax rate used in 2009 is 20%.
.
In Turkey, advance tax returns are filed on a quarterly basis. The advance corporate income
tax rate used in 2009 is 20%.
Losses are allowed to be carried 5 years maximum to be deducted from the taxable profit of
the following years. Tax carry back is not allowed.
In Turkey, there is no procedure for a final and definitive agreement on tax assessments.
Companies file their tax returns between 1-25 April following the close of the accounting
year to which they relate. Tax authorities may, however, examine such returns and the
underlying accounting records and may revise assessments within five years.
Income Withholding Tax
In addition to corporate taxes, companies should also calculate income withholding taxes and
funds surcharge on any dividends distributed, except for companies receiving dividends who
are resident companies in Turkey and Turkish branches of foreign companies. The rate of
income withholding tax is 10% starting from 24 April 2003 by the end of 22 July 2006.
However, this rate was changed to 15% commencing from 22 July 2006 upon the order no:
2006/10731 of the Council of Ministers. Undistributed dividends incorporated in share
capital are not subject to income withholding taxes.
92
35.
Income Tax (Cont’d)
Deferred Tax
Reconciliation of period tax with net income for the period is below:
2009
Reconciliation of tax provision
Income before tax
36.
97.993.428
67.349.733
Tax calculated 20%
(19.598.686)
(13.469.947)
Effect of additions
Effect of allowances
Other
(3.256.284)
2.875.121
2.009.943
(17.969.906)
(1.885.315)
1.133.579
915.687
(13.305.996)
Net Income from the Changes in Foreign Exchange Rates
Recognized in profit/loss
Foreign exchange rate income
Foreign exchange rate expense
Total
37.
2008
2009
2008
1.314.792
(1.595.288)
(280.496)
779.960
(837.346)
(57.386)
Earnings per Share
The Company has no equity instruments having dilutive characteristics that require a separate
diluted earnings per share calculation. The Company’s earnings per share calculation is as
follows:
For an equity share having TRKr (Kuruş) 1 of
nominal value:
Number of ordinary shares outstanding
Earnings per share
93
2009
2008
25.000.000.000
25.000.000.000
79.284.428
0,31714
52.944.733
0,21178
38.
Dividends per Share
The Company’s dividend distribution in 2009 from the profit of 2008 is presented below.
Group
Gross
Net
A
B
Total
A
B
Total
Cash dividend corresponding to an
equity share having TRY 1 of nominal
Total Cash Dividend value
Amount (TRY)
Amount
Rate (%)
168.000
0,168000
16,8000
41.832.000
0,168000
16,8000
42.000.000
142.800
0,142800
14,2800
35.557.200
0,142800
14,2800
35.700.000
The Company’s dividend distribution in 2009 from the profit of 2008 is TRY 42.000.000.
Other than that, The Company performed dividend distribution to the personnel amounting to
TRY 1.204.066.
39.
Cash Generated from the Operations
Statement of cash flow is presented within the financial statements.
40.
Equity Share Convertible Bonds
None.
41.
Cash Convertible Privileged Equity Shares
None.
42.
Risks
Disclosed in Note 2.
43.
Commitments
Total amount of commitments that are not included in liabilities:
Commitment Type
Guarantees and Commitments
31 December
2009
231.016
31 December
2008
226.476
31 December
2009
31 December
2008
153
153
767
154
921
Finance Lease Liabilities:
Within one year
Two to five years
Finance lease liabilities
94
44.
Business Combinations
The Company has no business combinations in the current period.
45.
Related Parties
a.
Parent company's name and the ultimate owner of the group
The Company's parent is Turkey İş Bankası A.Ş. with a 62% of share.
b.
In accordance with the Company's activities, items of sub-classifications
Due to the nature of its operations, the Company is engaged in issuing individual and group
pension policies; establishing pension funds; and issuing pension, annuity, portfolio
management insurance policies and, for the purpose of custody services for fund assets,
entering into custody agreements with custodians by identifying internal regulations for such
funds. In addition to the above activities, the Company also engages in reinsurance activities
in relation to individual and group life and death insurances and all the related accident and
life insurances.
c.
Provision for doubtful receivables is provided for due from shareholders, affiliates and
subsidiaries
None.
d.
Details of affiliates and subsidiaries having indirect capital and management relations with the
Company; names, amounts and rates of participations in the affiliates and subsidiaries
account; profit/loss for the period presented in the recent financial statements of such
participations; net profit/loss for the period and period covered by the financial statements;
information about whether these financial statements are prepared in accordance with the
CMB standards; information about whether these financial statements are audited; details of
the audit opinion (if the report includes unqualified, adverse or qualified opinion):
İş Portföy
Yönetimi A.Ş.
Book Value
Affiliates
Percentag
e
5.762.193
20
Financial
Statement
Date
30.09.2009
Standard for
the
Preparation
Income Before
Net
of Financial
Tax
Income/Loss Statements
11.421.179
9.126.378
Independent
Auditor’s
opinion
SPK XI/29
(*) No independent audit opinion exists.
e.
Bonus shares acquired due to capital increase through internal resources of subsidiaries and
affiliates.
Bonus share amounting to TRY 1.800.000 is acquired due to the capital increase of İş Portföy
Yönetimi A.Ş., the affiliate of the Company, on 17 September 2009.
f.
Liabilities such as guarantees, commitments, bailments, advances and endorsements given in
favor of shareholders, affiliates and subsidiaries
None.
95
(*)
45.
Related Parties (Cont’d)
g.
Related Party Disclosures
Services rendered from Related Parties
Türkiye İş Bankası A.Ş. (Commission of Policy
Production)
Türkiye İş Bankası A.Ş. (Commission of Premium
Collection and Banking Services)
Anadolu Anonim Türk Sigorta Şirketi (Premium paid)
İş Portföy Yönetimi A.Ş. (Portfolio Management Fee)
Milli Reasürans T.A.Ş. (Premium Transfer)
Rent Expense to Related Parties
Anadolu Anonim Türk Sigorta Şirketi
İş Gayrimenkul Yatırım Ortaklığı A.Ş.
Services to Related Parties
İş Portföy Yönetimi A.Ş. (Individual and Group Pension
Plans)
Milli Reasürans T.A.Ş. (Commissions Received)
46.
31 December
2009
31 December
2008
11.656.458
10.776.792
1.353.278
575.143
7.635.506
576.598
1.419.846
610.898
5.085.311
532.643
135.080
2.344.029
123.493
2.228.103
37.555
123.266
29.610
175.976
Subsequent Events
No subsequent events exist or expected to arise after the balance sheet date.
96
47.
Other
47.1
Items and amounts classified under the “other” account in financial statements either
exceeding 20% of the total amount of the group to which they relate or 5% of the total
assets in the balance sheet
Items and amounts classified under the “other” account in financial statements either
exceeding 20% of the total amount of the group to which they relate or 5% of the total assets
in the balance sheet are disclosed below:
47.2.
Current Assets ( Cash and Cash Equivalent
Assets)
Cash in transit
Total
31 December
2009
TL
42.834.036
42.834.036
31 December
2008
TL
33.557.407
33.557.407
Current Assets ( Other Receivables)
Securities reconciliation account
Other
Total
31 December
2009
TL
4.203.419
553.111
4.756.530
31 December
2008
TL
3.054.912
513.297
3.568.209
Short-term Liabilities ( Other Payables)
Suspense Accounts
Dividends to be paid
Unused vacation accruals
Other
Dividends to be paid
Total
31 December
2009
TL
8.240.819
1.848.890
573.756
384.280
859
11.048.604
31 December
2008
TL
5.809.466
1.297.390
426.526
384.280
859
7.918.521
Total amount of each due to/from personnel items classified under “Other Receivables”
and “Other Short and Long Term Payables” exceeding one percent of total assets in the
balance sheet
None.
47.3
Subrogation receivables followed under the off-balance sheet accounts
None.
47.4
Descriptive disclosure in relation to amounts and resources of income, expenses, and
losses for the prior periods
None.
97

Devlet Bakanlığından - Anadolu Hayat Emeklilik

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