MILLI RE 2020 ANNUAL REPORT

Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) December 31, 2020 and 2019, the aging of the receivables from main operations and related provisions are as follows: December 31, 2020 December 31, 2019 Gross amount Provision Gross amount Provision Not past due 315.675.462 - 233.187.242 - Past due 0-30 days 50.748.454 - 48.817.880 - Past due 31-60 days 3.510.421 - 4.831.298 - Past due 61-90 days 9.990.422 - 3.894.946 - More than 90 days 84.707.486 (35.056.517) 81.629.930 (28.638.564) Total 464.632.245 (35.056.517) 372.361.296 (28.638.564) The movements of the allowances for impairment losses for receivables from main operations during the year are as follows: December 31, 2020 December 31, 2019 Provision for receivables from insurance operations at the beginning of the year 28.638.564 25.352.034 Collections during the period (Note 47) - (159) Provisions for doubtful receivables during the period ( Note 47) 15.299 110.953 Foreign currency translation effect (Note 47) 6.402.654 3.175.736 Provision for receivables from insurance operations at the end of the year 35.056.517 28.638.564 The movements of the allowances for impairment losses for other receivables are as follows: December 31, 2020 December 31, 2019 Provision for other receivables at the beginning of the year 754.788 409.363 Collections during the period - (17.075) Impairment losses provided during the period (Note 47) 78.000 362.500 Provision for other receivables at the end of the year 832.788 754.788 Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset as a result of the imbalance between the Company’s cash inflows and outflows in terms of maturity and volume. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities . In respect of this risk, which is measured by quantitative methods, any liquidity deficit is observed via the maturity analysis of assets and liabilities in the statement of balance sheet. Furthermore, liquidity structure of the Company is monitored by using the following basic indicators in respect of liquidity ratios: - Liquid Assets/Total Assets - Liquidity Ratio - Current Ratio - Premium and Reinsurance Receivables/Total Assets The results evaluated by the Risk Committee and reported regularly to the Board of Directors. Action plan is determined by the Board of Directors in the case of having exposure higher than acceptable level of risk and probability. Management of the liquidity risk The Company considers the maturity match between asset and liabilities for the purpose of avoiding liquidity risk and ensure that it will always have sufficient liquidity to meet its liabilities when due . Financial Status Risks and Assessment of the Governing Body Unconsolidated Financial Statements Together with Independent Auditors’ Report Thereon Consolidated Financial Statements Together with Independent Auditors’ Report Thereon Milli Re Annual Report 2020 127