In accordance with the company goals and group strategies, Sompo Sigorta Anonim Şirketi, performs profit distribution in compliance with the Turkish Commercial Code, Tax Laws and Insurance Legislation.
The balance between interests of the shareholders and interests of the company are maintained during determination of the profit amount to be distributed and while giving the decision of distribution; the adequacy of distribution related resources in legal records, the profitability, the cash position, capital needs and finance related policies are considered.
Following the proposal of the Board of Directors, the distribution of profit in the Company is decided with the discretion of the General Assembly of the Shareholders. The annual profit of the Company is calculated in accordance with the Balance Sheet. The General Assembly of Shareholders is authorized to make decision on whether or not the net profit partially or completely is to be transferred to the next year or extraordinary reserves, whether or not the profit to be distributed is to be paid in cash or to be added to the capital, and on the distribution of profit within the period of time legally prescribed. The General Assembly has the right to dispose the remaining company earning after making required allocations under the provisions of law and the Articles of Association and is independent from the proposal of the Board of Directors.
The distribution of profit is made over the net profit of the period contained in the financial statements which have been prepared in accordance with current regulations and which have been subject to independent audit. The amount is determined after allocating the legal reserves and voluntary reserves, and other monetary amounts, which have to be allocated in accordance with the provisions of laws and the provisions of the Articles of Association, over the net profit of the period.
It is not possible make a decision on profit distribution, transfer of the profit to the next year or allotment of voluntary reserves without allocating the legal reserves at first.
During the profit distribution process, it is possible to distribute the profit accrued at once or by several installments. The General Assembly shall decide when and how profit to be distributed upon the offer of the Board of Directors.
Issues related to the distribution of profit are submitted to the shareholders at the General Assembly Meeting, being stated in the activity report and finally are announced to the public in accordance with the Information Disclosure Policy.