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) Foreign currency risk The Company is exposed to foreign currency risk through insurance and reinsurance transactions in foreign currencies. Foreign exchange gains and losses arising from foreign currency transactions are recorded at transaction dates. At the end of the reporting periods, foreign currency assets and liabilities evaluated by the Central Bank of Republic of Turkey’s spot purchase rates and the differences arising from foreign currency rates are recorded as foreign exchange gain or loss in the statement of income. The Company’s exposure to foreign currency risk is as follows: December 31, 2020 US Dollar Euro Other currencies Total Assets: Cash and cash equivalents 255.831.573 34.279.547 4.470.228 294.581.348 Financial assets and financial investments of risky insurers 340.721.866 55.397.567 - 396.119.433 Receivables from main operations 98.596.016 41.684.005 208.762.775 349.042.796 Total foreign currency assets 695.149.455 131.361.119 213.233.003 1.039.743.577 Liabilities: Payables arising from main operations (20.742.798) (4.800.405) (27.946.680) (53.489.883) Insurance technical reserves (*) (353.021.324) (154.013.462) (178.734.536) (685.769.322) Financial liabilities - - - - Total foreign currency liabilities (373.764.122) (158.813.867) (206.681.216) (739.259.205) Net financial position 321.385.333 (27.452.748) 6.551.787 300.484.372 December 31, 2019 US Dollar Euro Other currencies Total Assets: Cash and cash equivalents 342.391.688 1.195.187 5.097.719 348.684.594 Financial assets and financial investments of risky insurers 125.237.757 28.789.772 - 154.027.529 Receivables from main operations 63.121.897 27.167.763 195.477.075 285.766.735 Total foreign currency assets 530.751.342 57.152.722 200.574.794 788.478.858 Liabilities: Payables arising from main operations (14.115.806) (2.583.100) (28.058.846) (44.757.752) Insurance technical reserves (*) (284.223.390) (144.877.345) (152.774.383) (581.875.118) Financial liabilities - - (1.392.078) (1.392.078) Total foreign currency liabilities (298.339.196) (147.460.445) (182.225.307) (628.024.948) Net financial position 232.412.146 (90.307.723) 18.349.487 160.453.910 (*) According to the “Communiqué on Amendments to Communiqué on Technical Reserves for Insurance, Reinsurance and Pension Companies and the Related Assets That Should Be Invested Against Those Technical Reserves” published in Official Gazette no 27655 dated July 28, 2010; foreign currency denominated claims provisions evaluated by the Central Bank of Republic of Turkey’s spot sales rates. TL equivalents of the related monetary amounts denominated in foreign currencies are presented in the above table. Foreign currency rates used for the translation of foreign currency denominated monetary assets and liabilities as of December 31, 2020 and 2019 dates are as follows: At the end of the period Average US Dollar Euro US Dollar Euro December 31, 2020 7,3405 9,0079 7,0034 8,0140 December 31, 2019 5,9402 6,6506 5,6712 6,3481 Activities and Major Developments Related to Activities General Information Financial Rights Provided to the Members of the Governing Body and Senior Executives Research & Development Activities Milli Re Annual Report 2020 130