01 02 03 Financial Statements 04 41. Related party transactions continued The volumes of related party transactions, outstanding balances at the year end, and related expense and income for the year are as follows: 31 December 2018 31 December 2017 Entities under Entities under common common control** Other*** control** Other*** Assets Cash and cash equivalents – – 23,720 – Amounts due from credit institutions – – 6,218 – Insurance premiums receivable 621 – 2,511 – Other assets: investment securities available-for-sale 684 – – – Other assets: derivative financial assets – – 130 – Prepayments and other assets: other 60 – 219 2,128 1,365 – 32,798 2,128 Liabilities Accounts payable 311 – 650 – Borrowings* – 6,031 50,975 6,790 Other liabilities: derivative financial liability – – 1,091 – Other liabilities: other – – 195 – 311 6,031 52,911 6,790 Year ended Year ended 31 December 31 December 2018 2017 Entities under Entities under common common control** control** Income and expenses Net insurance premiums earned 1,122 4,214 General and administrative expenses (801) (2,542) Interest income 48 1,355 Interest expense – (6,463) Net gains from foreign currencies (113) (6,093) Other operating expenses – (882) Other operating income 120 – Cost of healthcare services and medical trials (1,525) (1,059) (1,149) (11,470) * Borrowings from other parties comprise loans from the minority shareholders and are unsecured, while borrowings from entities under common control in 2017 fully comprise of loans from JSC Bank of Georgia and are fully secured. ** Entities under common control include subsidiaries of Georgia Capital Group PLC since 30 May 2018 and subsidiaries of BGEO Group PLC before 29 May 2018 inclusively. The Group had no transactions with Georgia Capital, only with its subsidiaries. *** Other comprise non-controlling shareholders in GNCo and LLC Regional Hospital. Compensation of key management personnel comprised the following: Year ended Year ended 31 December 31 December 2018 2017 Salaries and cash bonuses 6,308 5,773 Share-based compensation 4,563 3,652 Total key management compensation* 10,871 9,425 * Key management personnel represent the Board of Directors. 42. Events after reporting period In January 2019 JSC Insurance Company Imedi L acquired a significant new client based on the number of insured clients, the Ministry of Defence, by winning a recent tender process. The Ministry of Defence is the country’s one of the largest entities by number of insured clients. The Group expects GEL 12.5 million additional insurance revenue from the client in 2019 and also expects synergies with healthcare and pharma segments. In March 2019, the Group recommended to shareholders to adopt a dividend policy to distribute 20%-30% of annual profits attributable to shareholders as dividends. In January 2019, 67% owned subsidiary of the Group, JSC GEPHA, declared dividend of GEL 24.0 million, of which GEL 16.1 million is attributable to JSC Georgia Healthcare Group and GEL 7.9 million to non-controlling interest shareholders. Out of the declared amount, GEL 2.0 million was paid to non-controlling interest shareholders during subsequent period. 175