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) 9 Investments in associates The Company accounts for its subsidiaries, its investments in associates and its joint ventures using the equity method defined in TAS 27 - “Consolidated and Separate Financial Statements” in preparing the unconsolidated financial statements. As of the reporting date, the carrying values of the investments accounted for using equity method accounted in balance sheet in the unconsolidated financial statements of the Company are as follows: December 31, 2020 December 31, 2019 Net book value Participation rate % Net book value Participation rate % Anadolu Hayat Emeklilik 199.595.913 12,46 160.221.809 12,46 Investments in associates, net 199.595.913 160.221.809 Anadolu Sigorta 1.183.837.861 57,31 900.077.235 57,31 Miltaş Turizm İnşaat Ticaret Anonim Şirketi 3.796.087 77,00 3.742.259 77,00 Investments in subsidiaries, net 1.187.633.948 903.819.494 Total financial asset 1.387.229.861 1.064.041.303 Name Total assets Shareholders’ equity Retained earnings Profit for the year Audited Period Associates: Anadolu Hayat Emeklilik (*) 36.087.752.603 1.601.893.365 102.198.183 526.939.264 Audited. December 31, 2020 Subsidiaries: Miltaş Turizm İnşaat Tic.A.Ş. 5.331.484 4.929.984 6.444 82.533 Not Audited. December 31, 2020 Anadolu Sigorta (*) 11.651.496.402 2.385.996.930 103.217.084 510.025.565 Audited. December 31, 2020 (*) As of December 31, 2020, consolidated financial informations of Anadolu Sigorta and Anadolu Hayat Emeklilik are shown. 10 Reinsurance assets and liabilities As of December 31, 2020, and 2019, outstanding reinsurance assets and liabilities of the Company, as Reinsurance company in accordance with existing reinsurance contracts are as follows: Reinsurance assets December 31, 2020 December 31, 2019 Receivables from reinsurance companies (Note 12) 48.027.209 60.633.142 Cash deposited to reinsurance companies 120.831.485 93.878.470 Outstanding claims reserve, ceded (Note 4.2) , (Note 17) 78.871.381 90.544.841 Unearned premiums reserve, ceded (Note 17) 20.130.822 44.693.136 Total 267.860.897 289.749.589 There are no impairment losses recognized for reinsurance assets. Reinsurance liabilities December 31, 2020 December 31, 2019 Deferred commission income (Note 19) 2.760.960 1.018.666 Total 2.760.960 1.018.666 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 137